Investment in Indonesia Infrastructure SOEs

& Infrastructure Projects

AIA Financial Experience & Perspective

for
Indonesia Investment Forum 2018, Conrad Hotel, Bali
9 Oct 2018 0
AIA confidential and proprietary information. Not for distribution.
McKinsey: Other than China, global
infrastructure gap is wide and widening

Red shows future gap =>

in infrastructure spending to GDP

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AIA confidential and proprietary information. Not for distribution.
 AIA is deeply committed to and has been active
in funding Asia Pacific infrastructure projects
Out of our total fixed income and equity investments, US$20bn are invested in
infrastructure-related sectors such as electricity, transportation and telecommunications

Source: AIA Financial

2
AIA confidential and proprietary information. Not for distribution.
AIA Group’s infrastructure investment is increasing
AIA’s infrastructure fixed-income investment has more than doubled since IPO in 2010

(USD bn)

25

20

15

10

0
2010 2011 2012 2013 2014 2015 2016 2017 2018

Source: AIA
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AIA confidential and proprietary information. Not for distribution.

 AIA Financial continuously growing investment
Investment holding of PT AIA Financial in Indonesia infrastructure–related SOEs has grown
more than 5 times since 2010

Book Value Alternative

(USD Mn) Infrastructure
Alternative Financing
Infrastructure
160.0 Financing

140.0

120.0

100.0

80.0

60.0

40.0

20.0

-
2010 2011 2012 2013 2014 2015 2016 2017 2018
PLN JSMR Pelindo 1 Pelindo 2 Pelindo 3 AP-1 AP-2 KIK-EBA JSMR KIK-EBA IP RDPT-MIET Trans Java

Source: AIA Financial

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AIA confidential and proprietary information. Not for distribution.
 Our perspectives on the recent alternative
infrastructure-financing schemes
Asset Backed Securities (KIK-EBA) Limited Participation Mutual Fund
(RDPT)

KIK EBA Jasa Marga - KIK EBA Indonesia Power –

Jagorawi Suralaya Power Plant
• Project/Asset Owner : • Project/Asset Owner :
Jasa Marga Lessee/PLN, Operator/Indon
• Investment Manager : esia Power
Mandiri Investasi • Investment Manager :
• Strategic & Importance Danareksa Investment
Aspect: The third congested • Strategic & Importance
toll road in Indonesia Aspect: Largest coal fire
• Project Cashflow: Revenue plant in South East Asia and
is almost two times of liability provide 12% electricity supply
payment to the ABS. to Java – Bali
• Cashflow Waterfall: • Cashflow to ABS: Secured
Payment to ABS is direct with PPA between IP and
after revenue. PLN. Fixed price agreement.
• Credit Enhancement: • Cashflow Waterfall:
Guarantee from Jasa Marga Payment to ABS is direct
after revenue.
• Credit Enhancement:
Guarantee from PLN
RDPT MIET Trans Java
• Project/Asset Owner: Jasa
Marga
• Investment Manager:
Mandiri Investasi
• Strategic & Importance
Aspect: The 3 toll-roads are
along the strategic Trans-
Java network, connecting the
whole Java island from the
west-end to the east-end.
• Project Cashflow: Jasa
Marga as the obligor. Fixed
%IRR to investors.
• Credit Enhancement:1)
Buyback guarantee in 5 years
at agreed NAV price. 2) Put
option is provided, hence the
call option is mandatory.

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Source: AIA Investment Research
AIA confidential and proprietary information. Not for distribution.
Availability of infrastructure financing instruments
has improved in recent years

2018
2017 •
•
Bank Loans
Bonds
• Bank Loans • Equities
• Bonds • Asset-backed Securitization (KIK EBA):
• Equities IDR2tn issued by Jasa Marga in Aug
Pre-2017 • Asset-backed Securitization (KIK EBA):
IDR2tn issued by Jasa Marga in Aug
17, IDR4tn issued by Indonesia Power in Sep
17
• Bank Loans 17, IDR4tn issued by Indonesia Power in • Global Bond (Komodo Bond):
• Bonds Sep 17 IDR4tn issued by Jasa Marga in Dec
• Equities • Global Bond (Komodo Bond): 17, IDR5.4tn issued by Wijaya Karya in Jan
IDR4tn issued by Jasa Marga in Dec 18, both listed in London Stock Exchange
17, IDR5.4tn issued by Wijaya Karya in Jan • Perpetual Bond:
18, both listed in London Stock Exchange IDR1tn issued by PT PP at 9.65% p.a. interest
• Perpetual Bond: • Infrastructure Investment Fund (DINFRA):
IDR1tn issued by PT PP at 9.65% p.a. Regulatory basis was established in Aug 17
interest • Limited Mutual Fund (RDPT) with underlying
• Infrastructure Investment Fund infrastructure project:
(DINFRA): IDR5tn issued by Waskita Tollroad, IDR3tn
Regulatory basis was established in Aug 17. issued by Jasa Marga
Source: KPPIP, AIA Investment Research • Green Bond: Indonesia sold USD1.25bn of
AIA confidential and proprietary information. Not for distribution. Global Green Bonds in Feb 18 6
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AIA confidential and proprietary information. Not for distribution.
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