INSA

INDONESIAN NATIONAL SHIPOWNERS ASSOCIATION

INVESTMENT OPPORTUNITY IN SHIPPING AFTER THE ISSUANCE OF PRESIDENTIAL INSTRUCTION NO. 5 OF 2005 AND THE ENACTMENT OF LAW NO. 17 OF 2008 ON SHIPPING INDUSTRY
DPP INSA CHAIRMAN

Johnson W. Sutjipto
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SUBSTANTIAL GROWTH IN THE NEXT DECADE

INTERNALLY
1.Archipelago Country 2.Large Population Base 3.Emerging Middle Income Group 4.Substantial Natural Resources

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INSA-P&I CLUB Investment Opportunity

GOVERNMENT REGULATION

Cabotage Principle
Presidential Decree No. 5 Year 2005 issued on 28 March 2005 also known as

INPRES 5
Followed by Transportation Ministry Decree

KM 71 Year 2005
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ROAD MAP CABOTAGE FOR 13 TYPES COMMODITIES OF DOMESTIC CARGO + OFFSHORE ACTIVITIES

Sumber : Ditjen Perla

LEGAL BASIS

Undang Undang Pelayaran No. 17 Tahun 2008

Shipping Law No. 17 Effective 7 May 2008

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INSA-P&I CLUB Investment Opportunity

Mandatory Flag Requirements

UU No 17 article No 8 :
ALL DOMESTIC SEA TRANSPORTATION MANDATORY TO BE CARRIED BY INDONESIAN FLAGGED VESSELS

ALL FOREIGN FLAGS VESSELS ARE NOT ALLOWED TO CARRY ANY DOMESTIC CARGO WITHIN INDONESIAN WATER
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A. DOMESTIC SEA TRANSPORTATION

No. 1 Cargo (in Million Ton) Year 2005 114.5 55,5 91.8 44,5 206.3
61,3 38,7 65,3 34,7

2006 135.3 61,3 85.4 38,7 220.7

77

2007 148.7 65,3 79.2 34,7 227.9

2008 *) 142.4 77 40.8 23 183.2

National Vessels (%) 2 Foreign Vessels (%) Total %

80.00 60.00 40.00 20.00 0.00 2005 55,5

44,5

23

Kapal National Kapal Asing

2006

2007

2008 (*)

Notes : - Data Per 3rd Quarter 2008 INSA-P&I CLUB Investment Opportunity - From Ditjen Perla 2/16/2009

B. IMPORT/ EXPORT SEA TRANSPORTATION

No. 1 2 Cargo (In Million Ton) National Vessels (%) Foreign Vessels (%) Total Year 2005 24.6 5,0 468.4 95,0 493
94,3

2006 29.4 5,7 485.4 94,3 514.8

94,1

2007 31.4 5,9 500.5 94,1 531.9

92,9

2008 *) 29.8 7,1 390.8 92,9 420.6

%
100.00 80.00 60.00 40.00 20.00 0.00

95,0

Kapal National Kapal Asing 5.0 5,7 5,9 7,1

2005

2006

2007

2008
8

Notes: - Data Per 3rd Quarter 2008 2/26/2009- from Ditjen Perla

INSA-P&I CLUB Investment Opportunity

ESTIMATED SEA FREIGHT DEFICIT TO FOREIGN VESSELS

If based on sea freight of USD 20 / mTON for domestic trade and sea freight of USD 50 / mTon for import/ export trade, we get: Domestic Freight:
Foreign Vessels
In Million US Dollar

2005
USD 1.836

2006
USD 1.708

2007
USD 1.584

2008*)
USD 816

Import/ Export Freight:

Foreign Vessels In Million US Dollar
2/26/2009

2005 USD 23.420

2006 USD 24.270

2007 USD 25.025

2008*) USD 19.540

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*) Data per 3rd Quarter 2008

INSA-P&I CLUB Investment Opportunity

SUBSTANTIAL GROWTH IN THE NEXT DECADE

FOCUS : ENERGY SECTOR

1.New Coal Powered Power Plants 2.Downstream : Oil and Gas 3.Upstream : Oil and Gas
All the above requires a substantial number of vessels for their logistic transportation needs

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COAL POWER STATION

Sumber : PT. PLN.

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COAL POWER STATION

Kebutuhan Batubara Domestik Untuk Pembangkit Listrik Tenaga Uap ( PLTU ) dan Industri Lainnya (dalam JUTA MT)
2006 1 2 3 4 5 6 7 PLTU Suralaya, Banten PLTU Paiton, Probolinggo PLTU Tanjung Jati PLTU Cilacap PLTU Labuhan, Merak PLTU Cirebon Kebutuhan PLTU di P. Jawa Pabrik Gula,Textile,Kertas dll si Jawa Total Kebutuhan untuk P. Jawa 28 20 48 28 28 56 28,5 32 60,5 37 35 72 11 10 5 2 2007 11 10 5 2 2008 11 10 5 2,5 2009 15 12,5 5 2,5 2 2010 15 12,5 5 2,5 2 2 39 35 74

Sumber PLN
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COAL POWER STATION

Pelabuhan Bongkar Batubara di Beberapa PLTU

Panamax 1 2 3 4 5 6 7 PLTU SURALAYA PLTU PAITON PLTU TANJUNG JATI PLTU CILACAP PLTU LABUHAN, Merak PLTU CIREBON Pabrik Gula,Tekstile,Kertas, dll Yes Yes Yes No No No No Handymax Yes Yes Yes No No No No BG>300 Yes Yes Temporary Yes Yes Yes Yes BG<300 Yes No Temporary Yes Yes Yes Yes Stock Pile Yes Yes Yes Yes Yes Yes No

Sumber : Ditjen Hubla

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Requirement & Availability For Coal Transpotation Vessels and Barges

Vessels
-Requirement 13 units -Available 11 units

Requirement 21 units

2008

2010

Barges
-Requirement 700sets -Available 600 sets

Requirement 800 sets

2008 Sumber : Ditjen Hubla & DPP INSA

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2010
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OIL and GAS : Downstream

USAHA HILIR (DOWNSTREAM)

PENGOLAHAN (REFINERY)

PENGANGKUTAN (TRANSPORTATION)

PENYIMPANAN (STORAGE)

NIAGA (TRADE)

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LIST OF VESSELS CHARTERED BY PERTAMINA

Total Indonesian Flag DWT HP/KL Rate / day 539,647.87 43,773.00 352,600.30

Total Foreign Flag DWT Rate/ day 1,921,505.59 750,651.26

GRAND TOTAL DWT HP/KL

Sumber : Pertamina Rate / day
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2,461,153.46 43,773.00 1,103,251.56

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OIL and GAS : Downstream

CHARTER HIRE PAID BY PT. PERTAMINA
National Flag : 32% (79 Vessels) Foreign Flag : 68% (56 Vessels - FundsOutflow) Total yearly charter paid: US$ 402 Million

Yearly Outflow : USD 274 Million

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USAHA MINYAK DAN GAS BUMI OIL and GAS : Upstream

USAHA HULU (UPSTREAM)

EXPLORASI (EXPLORATION)

EXPLOITASI (PRODUCTION)

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Vessels Required In The OIL and GAS Upstream Sector and Investment Value
USD USD USD USD

VESSEL TYPE Drilling Rig Jack up Rig Semi Submersible Rig Floating Production Storage Vessel Construction Vessel

>=20jt
v v v v v

<20jt

<10jt

<1.5jt

E
v v v

v v

Pipe Laying Vessel

Seismic & Survey Vessel Floating Storage Vessel Platform Supply Vessel Standby Rescue Vessel Accommodation Vessel Anchor Handling Vessel
E: Exploration 2/26/2009 P: Production / Eksploitation

v v v

v v v v

v v v v v v v v v v

v v

v v

INSA-P&I CLUB Investment Opportunity

Sumber : DPP INSA

19

.continue
USD USD USD USD

VESSEL TYPE Crew Boat Diving Support Vessel Fire Fighting & Pollution Control Vessel Supply Vessel Utility Workboat

>=20jt

<20jt

<10jt

<1.5jt

v v v v v v

v v v v v

v v v v v

Mooring / Tanker Assist Tugboat

Tugboats Landing Crafts Flat Top Deck Cargo Barges Oil Barges Speed Boat Sea Truck Patrol Vessel
E: 2/26/2009 Exploration P: Production / Exploitation
INSA-P&I CLUB Investment Opportunity

v v v v v v v v v

v v v

v v v v

v v v

v v v
20

Sumber : DPP INSA

OIL and GAS : Upstream CHARTER HIRE PAID BY OIL COMPANIES

National Flag Foreign Flag

: 25% (573 Vessels) : 75% (52 Vessels - Funds Outflow)

Total yearly charter paid:

Percentage of Charter Hire based on Flag
Foreign Flag National Flag

US$ 1.5 Billion

Yearly Outflow : USD 1.125 Billion

25%

75%

2/26/2009

Sumber : BP MIGAS

INSA-P&I CLUB Investment Opportunity

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VESSEL MARKET PRICES

Vessel Prices is at its lowest in the last few years Huge number of new buildings at a substantial discount Perfect time to invest !

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CHALLENGE
1. Funding is not so readily available during this period after the global economy crisis
2. To Ractify Arrest of Ship Convention 3. Limited quality and quantity of human resources on board the vessels
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CHALLENGE
4. Need More Support From Shipper : Indonesian Export generally sold at FOB term Indonesian Import generally bought at CIF term Limited Human Resources knowledge on BOOMZAKEN related to L/C, Insurance, Customs and Export & Import Trade

5. Secure more long term contract between end user / cargo owner and the Indonesian Shipping Company. Much needed long term contract on the following commodities such as: Oil & Gas, Coal, CPO and Offshore Activities Long term contract can be used as guarantee for financing from banking for shipping companies fleets expansion
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INSAS COMMITMENT

INSA available to assist and provide necessary information regarding: Existing Regulations Development of National Fleet Investment Opportunity

Questions may be directed via email to INSA Email address: info@insa.or.id

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THANK YOU
MERAH PUTIH PASTI BISA !

What we need is

COMMITMENT !!!

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