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A World Of Opportunities Investing In Indonesia
TABLE OF CONTENTS 01 FOREWORD 02 MINISTRY OF STATE OWNED ENTERPRISES 10 03 PROJECTS HIGHLIGHT 18 04 4 Infrastructure 21 Extractives 41 Tourism 27 Manufacturing 43 Energy 31 Agriculture Fisheries 47 Finance 35 Healthcare 49 Housing 37 Corporate Social Responsibility 53 Digital Connectivity 39 SYNERGY AMONG SOEs Ministry of State Owned Enterprises Republic of Indonesia 55 3
TABLE OF CONTENTS 01 FOREWORD 02 MINISTRY OF STATE OWNED ENTERPRISES 10 03 PROJECTS HIGHLIGHT 18 04 4 Infrastructure 21 Extractives 41 Tourism 27 Manufacturing 43 Energy 31 Agriculture Fisheries 47 Finance 35 Healthcare 49 Housing 37 Corporate Social Responsibility 53 Digital Connectivity 39 SYNERGY AMONG SOEs Ministry of State Owned Enterprises Republic of Indonesia 55 3
01 FOREWORD Recently Price Waterhouse Coopers released their predictions for the most powerful economies in the world by 2030 In the report titled The long view how will the global economic order change by 2050 they find that the average growth in emerging economies double that of advanced economies and it ranked 32 countries by their projected global gross domestic product by purchasing power parity and Indonesia ranked 5th largest in 2030 and ranked 4th in 2050 The report also states that emerging economies need to enhance their institutions and their infrastructure significantly if they are to realize their long term growth potential and Indonesia s current focus in infrastructure development shows that Indonesia is progressing in the right direction Indonesia s SOEs has long been the locomotive of economic growth Not only that according to PwC s CEO Pulse survey they are also seen to play a significant role in furthering social outcomes providing physical infrastructure and creating stability in times of crisis within and across supply chains And in order to mitigate the risk of state ownership destroying value by not applying best practices in ownership and management the Ministry of SOE s who provides guidance to Indonesian SOE s as regulator and policy maker has 4 Connecting The Nation The report also states that emerging economies need to significantly enhance their institutions and close the infrastructure gap in order to realize their long term growth potential and President Jokowi s current focus in infrastructure development has certainly put Indonesia in the right track Closing the current infrastructure gap requires not just SOE participation but also support from both local as well as foreign investors embarked in an initiative to transform Indonesian SOE s by forming holding companies between SOEs by groups with similar functions and value chains The formation of these holdings are in order to realize economies of scale reduce redundancy and inconsistency and encourage the achievement through best practices Collaboration or consolidation between these SOEs will also strengthen capital structure increasing capacity leverage and business efficiency Currently the plan to establish 6 SOE holding companies in the fields of energy mining construction housing agriculture fisheries and financial services has been agreed by President of the Republic of Indonesia Through this plan the government ambitiously aims to increase the number of Indonesian companies in the Fortune Global 500 list from 2 in 2015 to 6 in 2019 The transformation of the function of SOE also requires a change in how SOE s are evaluated No longer should they be evaluated based on outputs such as financial results but rather on outcomes such as how they contribute toward societal value creation in an integrated and holistic manner And to achieve societal and public value creation the performance evaluation of Indonesian SOE s will have to consider total impacts on other capitals such as social human innovation citizen and welfare as well as environmental capitals One of the determining factors is the inclusion of external influence to form a strategic medium for growth and development by fostering good cooperation between SOE s and external investors and paving the path to becoming one of the world s largest economies Ministry of State Owned Enterprises Republic of Indonesia 5
01 FOREWORD Recently Price Waterhouse Coopers released their predictions for the most powerful economies in the world by 2030 In the report titled The long view how will the global economic order change by 2050 they find that the average growth in emerging economies double that of advanced economies and it ranked 32 countries by their projected global gross domestic product by purchasing power parity and Indonesia ranked 5th largest in 2030 and ranked 4th in 2050 The report also states that emerging economies need to enhance their institutions and their infrastructure significantly if they are to realize their long term growth potential and Indonesia s current focus in infrastructure development shows that Indonesia is progressing in the right direction Indonesia s SOEs has long been the locomotive of economic growth Not only that according to PwC s CEO Pulse survey they are also seen to play a significant role in furthering social outcomes providing physical infrastructure and creating stability in times of crisis within and across supply chains And in order to mitigate the risk of state ownership destroying value by not applying best practices in ownership and management the Ministry of SOE s who provides guidance to Indonesian SOE s as regulator and policy maker has 4 Connecting The Nation The report also states that emerging economies need to significantly enhance their institutions and close the infrastructure gap in order to realize their long term growth potential and President Jokowi s current focus in infrastructure development has certainly put Indonesia in the right track Closing the current infrastructure gap requires not just SOE participation but also support from both local as well as foreign investors embarked in an initiative to transform Indonesian SOE s by forming holding companies between SOEs by groups with similar functions and value chains The formation of these holdings are in order to realize economies of scale reduce redundancy and inconsistency and encourage the achievement through best practices Collaboration or consolidation between these SOEs will also strengthen capital structure increasing capacity leverage and business efficiency Currently the plan to establish 6 SOE holding companies in the fields of energy mining construction housing agriculture fisheries and financial services has been agreed by President of the Republic of Indonesia Through this plan the government ambitiously aims to increase the number of Indonesian companies in the Fortune Global 500 list from 2 in 2015 to 6 in 2019 The transformation of the function of SOE also requires a change in how SOE s are evaluated No longer should they be evaluated based on outputs such as financial results but rather on outcomes such as how they contribute toward societal value creation in an integrated and holistic manner And to achieve societal and public value creation the performance evaluation of Indonesian SOE s will have to consider total impacts on other capitals such as social human innovation citizen and welfare as well as environmental capitals One of the determining factors is the inclusion of external influence to form a strategic medium for growth and development by fostering good cooperation between SOE s and external investors and paving the path to becoming one of the world s largest economies Ministry of State Owned Enterprises Republic of Indonesia 5
The global economic gains have persisted with an upward tendency driven by stronger growth in Europe and China Indonesia s economic growth is the third largest among G20 countries 2016 2015 2017 8 00 7 00 FDI realization in Indonesia Source Indonesia Investment Coordinating Board BKPM on il ni as U Br pa Eu ro So pe ut an h Ja Af n a ric ly Ita K U sia Ru lia ra st Au ce Fr m an an y a er Q2 2017 ad Q1 G Q1 2016 an Q1 2015 Q1 2014 S Q1 2013 C Q2 2017 U Q2 2016 a Q2 2015 In Q2 2014 4 00 in 0 3 00 nt 1 00 2 00 ge 20 72 0 ey 2 00 65 5 Ar 40 4 77 rk 5 01 0 00 1 00 Tu 5 01 4 93 97 0 a 3 00 96 1 82 1 re 60 Ko 4 00 1 00 109 8 a 80 si 5 00 2 00 ne 100 na 6 00 3 00 do 120 hi 7 00 4 00 C 140 5 00 a 8 00 6 00 di Source tradingeconomics com statistic indonesia IDR trillion In Indonesian GDP grows 5 01 yoy in Q2 2017 Economic growth in Indonesia in the third quarter of 2017 is expected to outpace that achieved last period Investment Realization in the Second Quarter 2017 Reaches Rp 170 9 Trillion USD 12 8 Billion Indonesia ASEAN S Biggest Economy 1 INDONESIA Core Inflation and Volatile Foods Inflation Volatile Foods Inflation Core Inflation 12 00 10 00 261 989 1 020 515 6 00 3 72 4 00 2 00 1 04 0 00 Dec Feb Apr Jun 2015 Aug Oct Dec Feb Apr Jun 2016 Aug Oct Dec Feb Apr Jun 5 675 15 013 432 898 291 860 20 953 6 VIETNAM 9 LAOS 106 279 93 607 6 492 328 593 215 829 14 971 4 MALAYSIA 7 MYANMAR 10 BRUNEI 32 199 52 645 0 429 309 860 72 368 12 326 2017 Low headline inflation was maintained in line with controlled core inflation and low volatile foods VF inflation Connecting The Nation Aug A combination of factors is making Indonesia Southeast Asia s largest economy a promising investment choice for global investors 8 CAMBODIA 69 095 3 PHILIPPINES 8 00 6 5 SINGAPORE 2 THAILAND Population in million GDP Nominal millions of USD Source International Monetary Fund s April 2017 estimates Ministry of State Owned Enterprises Republic of Indonesia 7
The global economic gains have persisted with an upward tendency driven by stronger growth in Europe and China Indonesia s economic growth is the third largest among G20 countries 2016 2015 2017 8 00 7 00 FDI realization in Indonesia Source Indonesia Investment Coordinating Board BKPM on il ni as U Br pa Eu ro So pe ut an h Ja Af n a ric ly Ita K U sia Ru lia ra st Au ce Fr m an an y a er Q2 2017 ad Q1 G Q1 2016 an Q1 2015 Q1 2014 S Q1 2013 C Q2 2017 U Q2 2016 a Q2 2015 In Q2 2014 4 00 in 0 3 00 nt 1 00 2 00 ge 20 72 0 ey 2 00 65 5 Ar 40 4 77 rk 5 01 0 00 1 00 Tu 5 01 4 93 97 0 a 3 00 96 1 82 1 re 60 Ko 4 00 1 00 109 8 a 80 si 5 00 2 00 ne 100 na 6 00 3 00 do 120 hi 7 00 4 00 C 140 5 00 a 8 00 6 00 di Source tradingeconomics com statistic indonesia IDR trillion In Indonesian GDP grows 5 01 yoy in Q2 2017 Economic growth in Indonesia in the third quarter of 2017 is expected to outpace that achieved last period Investment Realization in the Second Quarter 2017 Reaches Rp 170 9 Trillion USD 12 8 Billion Indonesia ASEAN S Biggest Economy 1 INDONESIA Core Inflation and Volatile Foods Inflation Volatile Foods Inflation Core Inflation 12 00 10 00 261 989 1 020 515 6 00 3 72 4 00 2 00 1 04 0 00 Dec Feb Apr Jun 2015 Aug Oct Dec Feb Apr Jun 2016 Aug Oct Dec Feb Apr Jun 5 675 15 013 432 898 291 860 20 953 6 VIETNAM 9 LAOS 106 279 93 607 6 492 328 593 215 829 14 971 4 MALAYSIA 7 MYANMAR 10 BRUNEI 32 199 52 645 0 429 309 860 72 368 12 326 2017 Low headline inflation was maintained in line with controlled core inflation and low volatile foods VF inflation Connecting The Nation Aug A combination of factors is making Indonesia Southeast Asia s largest economy a promising investment choice for global investors 8 CAMBODIA 69 095 3 PHILIPPINES 8 00 6 5 SINGAPORE 2 THAILAND Population in million GDP Nominal millions of USD Source International Monetary Fund s April 2017 estimates Ministry of State Owned Enterprises Republic of Indonesia 7
CREATING VALUES FOR STAKEHOLDERS Healthy financial positions that BUSINESS PORTFOLIO HIGHLIGHTS Significant tax contributions US 12 5 billion In US billion foster growth A total of 118 SOEs including about 600 subsidiaries contributes to various dimensions of the development and living of Indonesian people SOE Tax Contribution 141 2017 p Companies 2016 12 57 118 if holding company is considered only 1 2015 12 5 13 129 786 14 69 179 816 285 993 Sectors 9 728 290 795 USD 159 1 566 2 012 12 2013 5 791 178 399 12 8 2014 39 261 Dividend payments to stakeholders US 2 7 billion In US billion SOE Dividend Payment Billion Revenue Q2 2017 2 6 3 0 2 8 2 7 3 268 808 2 4 714 546 USD 502 1 366 400 2013 2014 2015 2016 2017 Billion Assets Q2 2017 USD 172 Finance Insurance 19 Industrial Area 29 Trading 4 3 268 808 285 993 39 261 Electicity Gas 2 Information Communication 4 Hotel 1 Capital expenditures grew 21 between Q2 2016 and Q2 2017 SOE Capital Expenditures in Q2 2016 and Q2 2017 OPEX CAPEX 1 366 400 Billion Equity Q2 2017 US 48 8B US 5 98 US 59 28 US 8 88 USD 126 Stock Market Capitalization July 2017 8 Connecting The Nation Q2 2016 Q2 2017 179 816 9 728 Mining 5 Construction 9 Technical Services 10 714 546 178 399 5 791 Logistic Transportation 24 Farming Forestry Fishing 7 Real Estate 2 290 795 129 786 2 012 Water Management 2 SOE per sector Number of SOE in the brackets 1 566 Ministry of State Owned Enterprises Republic of Indonesia 9
CREATING VALUES FOR STAKEHOLDERS Healthy financial positions that BUSINESS PORTFOLIO HIGHLIGHTS Significant tax contributions US 12 5 billion In US billion foster growth A total of 118 SOEs including about 600 subsidiaries contributes to various dimensions of the development and living of Indonesian people SOE Tax Contribution 141 2017 p Companies 2016 12 57 118 if holding company is considered only 1 2015 12 5 13 129 786 14 69 179 816 285 993 Sectors 9 728 290 795 USD 159 1 566 2 012 12 2013 5 791 178 399 12 8 2014 39 261 Dividend payments to stakeholders US 2 7 billion In US billion SOE Dividend Payment Billion Revenue Q2 2017 2 6 3 0 2 8 2 7 3 268 808 2 4 714 546 USD 502 1 366 400 2013 2014 2015 2016 2017 Billion Assets Q2 2017 USD 172 Finance Insurance 19 Industrial Area 29 Trading 4 3 268 808 285 993 39 261 Electicity Gas 2 Information Communication 4 Hotel 1 Capital expenditures grew 21 between Q2 2016 and Q2 2017 SOE Capital Expenditures in Q2 2016 and Q2 2017 OPEX CAPEX 1 366 400 Billion Equity Q2 2017 US 48 8B US 5 98 US 59 28 US 8 88 USD 126 Stock Market Capitalization July 2017 8 Connecting The Nation Q2 2016 Q2 2017 179 816 9 728 Mining 5 Construction 9 Technical Services 10 714 546 178 399 5 791 Logistic Transportation 24 Farming Forestry Fishing 7 Real Estate 2 290 795 129 786 2 012 Water Management 2 SOE per sector Number of SOE in the brackets 1 566 Ministry of State Owned Enterprises Republic of Indonesia 9
02 MINISTRY OF STATE OWNED ENTERPRISES To realize Indonesia s aggressive 2020 development goals the Ministry of StateOwned Entreprises has developed an extensive portfolio of projects that spans infrastructure transportation telecom energy housing and finance sectors among others The Ministry of StateOwned Enterprises is the agent of development at the heart of this growth Our role is to support Indonesia s future economic growth and encourage the investments that will make it possible Our Values Excellence BUMN strives to create total values for all stakeholders Professional BUMN promotes business integrity innovation and continuous improvement Community Stewardship BUMN orchestrates a synergy for the national economy 10 Connecting The Nation Ministry of State Owned Enterprises Republic of Indonesia 11
02 MINISTRY OF STATE OWNED ENTERPRISES To realize Indonesia s aggressive 2020 development goals the Ministry of StateOwned Entreprises has developed an extensive portfolio of projects that spans infrastructure transportation telecom energy housing and finance sectors among others The Ministry of StateOwned Enterprises is the agent of development at the heart of this growth Our role is to support Indonesia s future economic growth and encourage the investments that will make it possible Our Values Excellence BUMN strives to create total values for all stakeholders Professional BUMN promotes business integrity innovation and continuous improvement Community Stewardship BUMN orchestrates a synergy for the national economy 10 Connecting The Nation Ministry of State Owned Enterprises Republic of Indonesia 11
MINISTER S PROFILE OUR ROADMAP A Blueprint for Development RINI M SOEMARNO Minister of State Owned Enterprise Ministry of State Owned Enterprises An agent of transformation that creates value Independence Synergy between SOEs Welfare Downstreaming local products Sustainability Integrated regional economic development Infrastructure Connectivity Equity equality Financial independence and value creation Born in Maryland US Rini M Soemarno has served key ministerial posts in a career that has spanned the public and private sectors She has worked for Citibank N A Jakarta 1982 1989 with the last position as Vice President Then she joined PT Astra International and became President Director in 1998 In 1998 she was also Advisor to the Ministry of Finance the Republic of Indonesia and Vice Chairman of the Indonesian Bank Restructuring Agency Three years later she was appointed as Minister of Industry and Trade while serving leadership positions in several business 2001 2004 In October 2014 she was entrusted by President Joko Widodo to serve as Minister of State Owned Enterprise Human Resource Capacity and Productivity Good Governance Rules and Policies 12 Connecting The Nation VISION MISSION To serve as a Professional Mentor for State Owned Enterprises to help increase their value Realizing a modern organization that is in accordance with the principles of good governance Increasing the competitive capabilities of StateOwned Enterprises on national regional and international levels Increasing the contribution of State Owned Enterprises towards the national economy Ministry of State Owned Enterprises Republic of Indonesia 13
MINISTER S PROFILE OUR ROADMAP A Blueprint for Development RINI M SOEMARNO Minister of State Owned Enterprise Ministry of State Owned Enterprises An agent of transformation that creates value Independence Synergy between SOEs Welfare Downstreaming local products Sustainability Integrated regional economic development Infrastructure Connectivity Equity equality Financial independence and value creation Born in Maryland US Rini M Soemarno has served key ministerial posts in a career that has spanned the public and private sectors She has worked for Citibank N A Jakarta 1982 1989 with the last position as Vice President Then she joined PT Astra International and became President Director in 1998 In 1998 she was also Advisor to the Ministry of Finance the Republic of Indonesia and Vice Chairman of the Indonesian Bank Restructuring Agency Three years later she was appointed as Minister of Industry and Trade while serving leadership positions in several business 2001 2004 In October 2014 she was entrusted by President Joko Widodo to serve as Minister of State Owned Enterprise Human Resource Capacity and Productivity Good Governance Rules and Policies 12 Connecting The Nation VISION MISSION To serve as a Professional Mentor for State Owned Enterprises to help increase their value Realizing a modern organization that is in accordance with the principles of good governance Increasing the competitive capabilities of StateOwned Enterprises on national regional and international levels Increasing the contribution of State Owned Enterprises towards the national economy Ministry of State Owned Enterprises Republic of Indonesia 13
SECTORAL ROADMAP Roadmap complied each theme of each sector in accordance with the government focus by involving all the SOEs that contribute in it SECTOR 1 Energy Security 2 Logistic and Trade 3 Tourism Culture 4 5 14 SECTOR 6 Maritime Economy 7 Connectivity 8 Construction Infrastructure 9 Mining 10 Manufacture Food Security Agriculture Health Services Connecting The Nation Ministry of State Owned Enterprises Republic of Indonesia 15
SECTORAL ROADMAP Roadmap complied each theme of each sector in accordance with the government focus by involving all the SOEs that contribute in it SECTOR 1 Energy Security 2 Logistic and Trade 3 Tourism Culture 4 5 14 SECTOR 6 Maritime Economy 7 Connectivity 8 Construction Infrastructure 9 Mining 10 Manufacture Food Security Agriculture Health Services Connecting The Nation Ministry of State Owned Enterprises Republic of Indonesia 15
POTENTIAL INVESTMENT IN SOEs INVESTMENT SCHEME Direct Investment Joint Operation Joint Venture or Business Partnership IPO Bonds Securitization SECTOR 11 Strategic Defence Indicative Amount of Investment by Sector Offering Sectors Number of Projects 1 Direct Investment 61 59 851 360 902 7 21 500 000 000 15 12 807 600 000 5 10 309 000 000 16 7 116 127 820 E Manufacture 8 4 118 400 000 F Financial Services 2 1 921 000 000 G Healthcare 2 1 100 000 000 H Agriculture Fisheries 4 504 000 000 I Construction 1 283 233 083 J Hotel Tourism 1 192 000 000 4 586 000 000 13 7 734 954 887 3 1 199 300 000 82 69 371 215 789 A Energy B Seaport Airport 12 13 Heavy Industry and Shipping Telecommunication Digital C Real Estate D Transportation 2 IPO 3 Bonds 4 Securitizations 14 Financial Services Banking 15 Economic Democracy 16 Connecting The Nation Grand Total Estimate Project Cost USD Ministry of State Owned Enterprises Republic of Indonesia 17
POTENTIAL INVESTMENT IN SOEs INVESTMENT SCHEME Direct Investment Joint Operation Joint Venture or Business Partnership IPO Bonds Securitization SECTOR 11 Strategic Defence Indicative Amount of Investment by Sector Offering Sectors Number of Projects 1 Direct Investment 61 59 851 360 902 7 21 500 000 000 15 12 807 600 000 5 10 309 000 000 16 7 116 127 820 E Manufacture 8 4 118 400 000 F Financial Services 2 1 921 000 000 G Healthcare 2 1 100 000 000 H Agriculture Fisheries 4 504 000 000 I Construction 1 283 233 083 J Hotel Tourism 1 192 000 000 4 586 000 000 13 7 734 954 887 3 1 199 300 000 82 69 371 215 789 A Energy B Seaport Airport 12 13 Heavy Industry and Shipping Telecommunication Digital C Real Estate D Transportation 2 IPO 3 Bonds 4 Securitizations 14 Financial Services Banking 15 Economic Democracy 16 Connecting The Nation Grand Total Estimate Project Cost USD Ministry of State Owned Enterprises Republic of Indonesia 17
03 PROJECTS HIGHLIGHT 18 Connecting The Nation Infrastructure Extractives Tourism Manufactering Energy Agriculture Fisheries Finance Healthcare Housing Corporate Social Digital Connectivity Resposibility Ministry of State Owned Enterprises Republic of Indonesia 19
03 PROJECTS HIGHLIGHT 18 Connecting The Nation Infrastructure Extractives Tourism Manufactering Energy Agriculture Fisheries Finance Healthcare Housing Corporate Social Digital Connectivity Resposibility Ministry of State Owned Enterprises Republic of Indonesia 19
INFRASTRUCTURE Indonesia s logistics costs account for 26 percent of Indonesia s 861 billion economy in 2015 one of the lowest in all Asia Therefore the government has set the target to reduce the logistics costs to 19 of GDP by 2020 by making an all out effort to vastly improve infrastructure related to transportation such as sea ports airports railway networks and road networks opening the door of attractive investment opportunities 24 Seaports 25 Airports Under development or upgrade Under development or upgrade 69 Dams 1 580 KM To be built TOLL ROAD To be operated in 2019 20 Connecting The Nation Ministry of State Owned Enterprises Republic of Indonesia 21
INFRASTRUCTURE Indonesia s logistics costs account for 26 percent of Indonesia s 861 billion economy in 2015 one of the lowest in all Asia Therefore the government has set the target to reduce the logistics costs to 19 of GDP by 2020 by making an all out effort to vastly improve infrastructure related to transportation such as sea ports airports railway networks and road networks opening the door of attractive investment opportunities 24 Seaports 25 Airports Under development or upgrade Under development or upgrade 69 Dams 1 580 KM To be built TOLL ROAD To be operated in 2019 20 Connecting The Nation Ministry of State Owned Enterprises Republic of Indonesia 21
1D 2A 2B 1B 3A 1A C C C 4A C 2D A RAIL TRANSPORTATION 4 Light rail transit and high speed train projects are picking up velocity in the western part of Indonesia reflecting the urgent need for modern and convenient public transportation solutions 1 INDONESIAN CONSORTIUM Linking Jakarta with Surrounding Cities LRT Jabodebek 1 Serving the hundreds of thousands of commuters living in the capital and its satellite cities the Jakarta Light Rail Transit LRT will provide a faster and more convenient transport solution 2 PT Jasamarga Persero Tbk A practical solution for more than 10 million residents Jakarta Serving Commuters and Tackling Traffic Congestion in Palembang LRT Palembang The LRT project an ambitious 23 5 km mass transit solution will connect Palembang s international airport with a nearby sports complex that is expecting tens of thousands of visitors for the 2018 Asian Games Covering a distance of 23 5 km 3 Soekarno Hatta Rail Link Aiming to connect Indonesia s busiest airport Soekarno Hatta with Jakarta s city centre the 12 km track will soon be able to carry almost 34 000 passengers per day a promising alternative to the often heavily congested toll road 22 Connecting The Nation 100 Leader PT Wijaya Karya Persero Tbk 3 PT Perkebunan Nusantara VII Persero 4 PT Kereta Api Indonesia Persero 60 PT Pilar Sinergi BUMN Bandung 2 High Speed Train Jakarta Bandung PT KERETA CEPAT INDONESIA CINA KCIC The Jakarta Bandung high speed train project is a prime example of strategic initiative by SOE s in performing teir function as the locomotive of growth 40 CHINA RAILWAY CHINESE CONSORTIUM 1 100 Leader CHINA RAILWAY International Co Ltd 2 China Railway Group Limited CREC 3 Sinohydro Corporation Limited 4 CRRC Corporation Limited CRRC 5 China Railway Signal and Communication Corp CRSCC Ministry of State Owned Enterprises Republic of Indonesia 23
1D 2A 2B 1B 3A 1A C C C 4A C 2D A RAIL TRANSPORTATION 4 Light rail transit and high speed train projects are picking up velocity in the western part of Indonesia reflecting the urgent need for modern and convenient public transportation solutions 1 INDONESIAN CONSORTIUM Linking Jakarta with Surrounding Cities LRT Jabodebek 1 Serving the hundreds of thousands of commuters living in the capital and its satellite cities the Jakarta Light Rail Transit LRT will provide a faster and more convenient transport solution 2 PT Jasamarga Persero Tbk A practical solution for more than 10 million residents Jakarta Serving Commuters and Tackling Traffic Congestion in Palembang LRT Palembang The LRT project an ambitious 23 5 km mass transit solution will connect Palembang s international airport with a nearby sports complex that is expecting tens of thousands of visitors for the 2018 Asian Games Covering a distance of 23 5 km 3 Soekarno Hatta Rail Link Aiming to connect Indonesia s busiest airport Soekarno Hatta with Jakarta s city centre the 12 km track will soon be able to carry almost 34 000 passengers per day a promising alternative to the often heavily congested toll road 22 Connecting The Nation 100 Leader PT Wijaya Karya Persero Tbk 3 PT Perkebunan Nusantara VII Persero 4 PT Kereta Api Indonesia Persero 60 PT Pilar Sinergi BUMN Bandung 2 High Speed Train Jakarta Bandung PT KERETA CEPAT INDONESIA CINA KCIC The Jakarta Bandung high speed train project is a prime example of strategic initiative by SOE s in performing teir function as the locomotive of growth 40 CHINA RAILWAY CHINESE CONSORTIUM 1 100 Leader CHINA RAILWAY International Co Ltd 2 China Railway Group Limited CREC 3 Sinohydro Corporation Limited 4 CRRC Corporation Limited CRRC 5 China Railway Signal and Communication Corp CRSCC Ministry of State Owned Enterprises Republic of Indonesia 23
B MARITIME TRANSPORTATION C IN LAND TRANSPORTATION As toll roads expand across the nation the knock on effects are felt through decreased transit times reduced costs and more efficiency along supply chains This priority is enshrined in the President s commitment to develop Indonesia as a maritime axis that will enhance connectivity within and beyond its boundaries For investors this sends a clear signal that the sector is ripe for investment 1 1 580 km toll road expansion by 2019 642 km toll Trans Sumatera 800 km toll Trans Java 138 km toll Kalimatan and Sulawesi Priok New Port Expanding Jakarta s Commercial Hub This terminal is projected to become the largest seaport in Southeast Asia within the next 10 years It will boast large oil and gas terminals container terminals designed to reach a capacity of 1 5 million TEUs per year and a product terminal with a capacity of 10 million cubic metres per year The largest seaport in Southeast Asia 2 D AIR TRANSPORTATION 1 Packgage I worth USD 530 Million to increase the capacity from 9 million passengers to 17 million passengers annually Located in a strategic location near the busy waters of the Malacca Strait Kuala Tanjung was designed to become one of the country s largest transit hubs once finished Packgage 2 worth USD 303 Million to develop a 200 hectare plot of land for commercial area outside the passenger terminal which will be built with an airport city concept Other ports to be developed between 2015 to 2019 24 Connecting The Nation The Kualanamu International Airport North Sumatera Kuala Tanjung Multi Purpose Terminal Port of Sorong Port of Bitung Port of Kijing Port of Ambong 2 The Lombok Praya International Airport Indonesia promotes both Lombok and Sumbawa islands as tourist destination second only to Bali Slated to replace the Selaparang s outdated airport having a capacity of 3 2 million airline passengers per year Ministry of State Owned Enterprises Republic of Indonesia 25
B MARITIME TRANSPORTATION C IN LAND TRANSPORTATION As toll roads expand across the nation the knock on effects are felt through decreased transit times reduced costs and more efficiency along supply chains This priority is enshrined in the President s commitment to develop Indonesia as a maritime axis that will enhance connectivity within and beyond its boundaries For investors this sends a clear signal that the sector is ripe for investment 1 1 580 km toll road expansion by 2019 642 km toll Trans Sumatera 800 km toll Trans Java 138 km toll Kalimatan and Sulawesi Priok New Port Expanding Jakarta s Commercial Hub This terminal is projected to become the largest seaport in Southeast Asia within the next 10 years It will boast large oil and gas terminals container terminals designed to reach a capacity of 1 5 million TEUs per year and a product terminal with a capacity of 10 million cubic metres per year The largest seaport in Southeast Asia 2 D AIR TRANSPORTATION 1 Packgage I worth USD 530 Million to increase the capacity from 9 million passengers to 17 million passengers annually Located in a strategic location near the busy waters of the Malacca Strait Kuala Tanjung was designed to become one of the country s largest transit hubs once finished Packgage 2 worth USD 303 Million to develop a 200 hectare plot of land for commercial area outside the passenger terminal which will be built with an airport city concept Other ports to be developed between 2015 to 2019 24 Connecting The Nation The Kualanamu International Airport North Sumatera Kuala Tanjung Multi Purpose Terminal Port of Sorong Port of Bitung Port of Kijing Port of Ambong 2 The Lombok Praya International Airport Indonesia promotes both Lombok and Sumbawa islands as tourist destination second only to Bali Slated to replace the Selaparang s outdated airport having a capacity of 3 2 million airline passengers per year Ministry of State Owned Enterprises Republic of Indonesia 25
TOURISM Indonesia has been blessed with natural beauty and cultural diversity and has increasingly becoming a very attractive tourist destination To enhance tourist experience in exploring the wonders of Indonesia the government has taken steps to improve tourism infrastructure that makes their stay in Indonesia as enjoyable as possible Tourism infrastructure has long been a favorite investment sector and will continue to be so 26 Connecting The Nation 10 000 20 million Hotel rooms to be built Tourists by 2019 Ministry of State Owned Enterprises Republic of Indonesia 27
TOURISM Indonesia has been blessed with natural beauty and cultural diversity and has increasingly becoming a very attractive tourist destination To enhance tourist experience in exploring the wonders of Indonesia the government has taken steps to improve tourism infrastructure that makes their stay in Indonesia as enjoyable as possible Tourism infrastructure has long been a favorite investment sector and will continue to be so 26 Connecting The Nation 10 000 20 million Hotel rooms to be built Tourists by 2019 Ministry of State Owned Enterprises Republic of Indonesia 27
Strategy to fill seat capacity 2016 2019 Source Ministry of Tourism 2017 Foreign Tourism Target 1 2 3 4 Priority Development of Top 10 Tourist Destinations 4 of the top 10 tourist destinations in Indonesia to be developed by SOEs 12 15 18 20 Million Million Million Million 2016 2017 2018 2019 Current international flight seats capacity is only adequate to meet the 2016 target of 12 million foreign tourists 4 million more seats are needed to meet the 2017 target of 15 million foreign tourists is expected to be met by rearranging slot times at certain airports a nonphysical solution An additional 3 5 million seats are needed to support the 2018 target of 18 million foreign tourists This requires development or expansion of airport infrastructure such as rapid exit taxiways apron s and parking stands Needs to be supported by new airport operations in 10 priority destinations Other top tourist destinations are Morotai Island Tanjung Kelayan Tanjung Lesung Bromo Tengger Wakatobi and Thousand Island Old Town 1 Lake Toba 2 Mandalika 3 Borobudur 4 Labuan Bajo 28 Connecting The Nation Ministry of State Owned Enterprises Republic of Indonesia 29
Strategy to fill seat capacity 2016 2019 Source Ministry of Tourism 2017 Foreign Tourism Target 1 2 3 4 Priority Development of Top 10 Tourist Destinations 4 of the top 10 tourist destinations in Indonesia to be developed by SOEs 12 15 18 20 Million Million Million Million 2016 2017 2018 2019 Current international flight seats capacity is only adequate to meet the 2016 target of 12 million foreign tourists 4 million more seats are needed to meet the 2017 target of 15 million foreign tourists is expected to be met by rearranging slot times at certain airports a nonphysical solution An additional 3 5 million seats are needed to support the 2018 target of 18 million foreign tourists This requires development or expansion of airport infrastructure such as rapid exit taxiways apron s and parking stands Needs to be supported by new airport operations in 10 priority destinations Other top tourist destinations are Morotai Island Tanjung Kelayan Tanjung Lesung Bromo Tengger Wakatobi and Thousand Island Old Town 1 Lake Toba 2 Mandalika 3 Borobudur 4 Labuan Bajo 28 Connecting The Nation Ministry of State Owned Enterprises Republic of Indonesia 29
ENERGY Rapid economic growth requires fulfillment of equally growing energy needs not only to supply trade and industry growth but also the increasing welfare and wellbeing of the Indonesian people The Ministry of State Owned Enterprise is determined to maintain the exponential growth of the energy infrastructure to fulfill the energy need for the growing economy and welcome major investments from the private sector 30 Connecting The Nation Electrification Ratio Target 2016 2019 89 97 35 000 MW 46 800 Kms 109 200 MVA Construction of Power Plants Transmission Line Substations Growing Domestic Opportunities For Energy 1 2 Nationally Uniform Gasoline Price Accelerating Natural Gas Infrastructure Development To set a uniform gasoline price throughout Indonesia and thereby create more equal economic opportunities in remote areas 110 000 Number of households that will be connected to the natural gas network by 2019 Ministry of State Owned Enterprises Republic of Indonesia 31
ENERGY Rapid economic growth requires fulfillment of equally growing energy needs not only to supply trade and industry growth but also the increasing welfare and wellbeing of the Indonesian people The Ministry of State Owned Enterprise is determined to maintain the exponential growth of the energy infrastructure to fulfill the energy need for the growing economy and welcome major investments from the private sector 30 Connecting The Nation Electrification Ratio Target 2016 2019 89 97 35 000 MW 46 800 Kms 109 200 MVA Construction of Power Plants Transmission Line Substations Growing Domestic Opportunities For Energy 1 2 Nationally Uniform Gasoline Price Accelerating Natural Gas Infrastructure Development To set a uniform gasoline price throughout Indonesia and thereby create more equal economic opportunities in remote areas 110 000 Number of households that will be connected to the natural gas network by 2019 Ministry of State Owned Enterprises Republic of Indonesia 31
FUEL AND LNG INFRASTRUCTURE PROJECTS To light and allow access for more than 25 million families in Indonesia investment through SOEs in Electricity as well as Oil and Gas is not just meeting the energy demand but its also about engaging a vast growing high potential market Fuel Terminal Upgrading Sambu Island Onshore Mini LNG New Grass Root Refinery GRR Refinery Development Master Plan RDMP Location Sambu Island Riau USD 500 Million Location North Kalimantan Project Capex USD 300 Million Location Bontang East Kalimantan Capacity 300 kbpd Project Capex USD 10 15 Billion Batam Island Kalimantan Island Location Cilacap Central Java Capacity 400 kbpd RIAU Sumatera Island 32 Connecting The Nation Location Balikpapan East Kalimantan Capacity 360 kbpd Project Capex USD 5 2 Billion Location Tuban East java Capacity 300 kbpd Java Island Ministry of State Owned Enterprises Republic of Indonesia 33
FUEL AND LNG INFRASTRUCTURE PROJECTS To light and allow access for more than 25 million families in Indonesia investment through SOEs in Electricity as well as Oil and Gas is not just meeting the energy demand but its also about engaging a vast growing high potential market Fuel Terminal Upgrading Sambu Island Onshore Mini LNG New Grass Root Refinery GRR Refinery Development Master Plan RDMP Location Sambu Island Riau USD 500 Million Location North Kalimantan Project Capex USD 300 Million Location Bontang East Kalimantan Capacity 300 kbpd Project Capex USD 10 15 Billion Batam Island Kalimantan Island Location Cilacap Central Java Capacity 400 kbpd RIAU Sumatera Island 32 Connecting The Nation Location Balikpapan East Kalimantan Capacity 360 kbpd Project Capex USD 5 2 Billion Location Tuban East java Capacity 300 kbpd Java Island Ministry of State Owned Enterprises Republic of Indonesia 33
FINANCE Inaccessibility to financial services especially by the small and medium enterprise as well as the informal sector which contributes over 60 of economic growth has been a major impediment towards Indonesia s economic growth Therefore State Owned Enterprises in the financial sector has embarked on a major program to increase inclusivity especially the informal sector so that they can also enjoy the benefits offered by the banking system 34 Connecting The Nation USD 18 84 Billion 2 85 Million Community Business Credit KUR Labor Absorption Loans disbursed to small and medium business up to Q2 2017 KUR program up to Q2 2017 1 684 223 USD 215 Million Productive non bankable women empowered to build their own micro business through Mekaar Loans disbursed by Mekaar up to Q3 2017 Ministry of State Owned Enterprises Republic of Indonesia 35
FINANCE Inaccessibility to financial services especially by the small and medium enterprise as well as the informal sector which contributes over 60 of economic growth has been a major impediment towards Indonesia s economic growth Therefore State Owned Enterprises in the financial sector has embarked on a major program to increase inclusivity especially the informal sector so that they can also enjoy the benefits offered by the banking system 34 Connecting The Nation USD 18 84 Billion 2 85 Million Community Business Credit KUR Labor Absorption Loans disbursed to small and medium business up to Q2 2017 KUR program up to Q2 2017 1 684 223 USD 215 Million Productive non bankable women empowered to build their own micro business through Mekaar Loans disbursed by Mekaar up to Q3 2017 Ministry of State Owned Enterprises Republic of Indonesia 35
HOUSING Increasing the welfare and wellbeing of the Indonesian people also involves providing decent comfortable and modern housing for the masses At present there is a backlog of 13 5 million homes that need to be built with 1 million targeted to be built by the Ministry of State Owned Enterprise by 2018 leaving many opportunities for investment by the private sector Number of homes built by the Ministry of State Owned Enterprises 2015 538 000 2016 668 000 2017 842 000 2018 1 010 000 Development of housing complex which are mixed use residential and commercial areas designed to maximize land value and return on investment through optimizing access to a central transit stop such as a train station or light rail or bus stop and incorporating features to encourage the development of integrated environments for live work and play 36 Connecting The Nation Ministry of State Owned Enterprises Republic of Indonesia 37
HOUSING Increasing the welfare and wellbeing of the Indonesian people also involves providing decent comfortable and modern housing for the masses At present there is a backlog of 13 5 million homes that need to be built with 1 million targeted to be built by the Ministry of State Owned Enterprise by 2018 leaving many opportunities for investment by the private sector Number of homes built by the Ministry of State Owned Enterprises 2015 538 000 2016 668 000 2017 842 000 2018 1 010 000 Development of housing complex which are mixed use residential and commercial areas designed to maximize land value and return on investment through optimizing access to a central transit stop such as a train station or light rail or bus stop and incorporating features to encourage the development of integrated environments for live work and play 36 Connecting The Nation Ministry of State Owned Enterprises Republic of Indonesia 37
DIGITAL CONNECTIVITY State Owned Enterprises has played an important role in laying down the foundation for digital connectivity Ever since the launch of the PALAPA satellite back in 1976 Indonesia has set itself to embarked into the digital world Since then no less than 8 satellites have been launched providing an infrastructure for digital connectivity together with 5 100 kms of high bandwidth data connection under the PALAPA RING initiative to foster digital communication between businesses and individuals alike 38 Connecting The Nation Indonesia Global Gateway Unlocking Digital Connectivity 440 152 191 Fibre optic cable Cell towers district cities 153 600 KM 362 200 of cables home passed Hotspot WiFi Ministry of State Owned Enterprises Republic of Indonesia 39
DIGITAL CONNECTIVITY State Owned Enterprises has played an important role in laying down the foundation for digital connectivity Ever since the launch of the PALAPA satellite back in 1976 Indonesia has set itself to embarked into the digital world Since then no less than 8 satellites have been launched providing an infrastructure for digital connectivity together with 5 100 kms of high bandwidth data connection under the PALAPA RING initiative to foster digital communication between businesses and individuals alike 38 Connecting The Nation Indonesia Global Gateway Unlocking Digital Connectivity 440 152 191 Fibre optic cable Cell towers district cities 153 600 KM 362 200 of cables home passed Hotspot WiFi Ministry of State Owned Enterprises Republic of Indonesia 39
EXTRACTIVES The drive now is to bolster investments in downstream industries to increase the value of its exports Indonesia is also bestowed with unfathomed wealth in mineral resources from nickel to bauxite and coal to gold which has long attracted investment 40 Connecting The Nation 5 USD 12 2 Billion Companies Downstream of ferronickel products to stainless and aluminum slabs alloys to create basic industries capable of reducing dependence on imported raw materials Ministry of State Owned Enterprises Republic of Indonesia 41
EXTRACTIVES The drive now is to bolster investments in downstream industries to increase the value of its exports Indonesia is also bestowed with unfathomed wealth in mineral resources from nickel to bauxite and coal to gold which has long attracted investment 40 Connecting The Nation 5 USD 12 2 Billion Companies Downstream of ferronickel products to stainless and aluminum slabs alloys to create basic industries capable of reducing dependence on imported raw materials Ministry of State Owned Enterprises Republic of Indonesia 41
MANUFACTURING State Owned Enterprises in the manufacturing sector such as pharmaceuticals cement fertilizer ship building and aerospace etcetera 50 000 DWT Supported by experienced specialists and skilled tehnicians Quality improvement accuracy International standard certificates PKR 105 Light Frigate product of PT PAL 42 Connecting The Nation Ministry of State Owned Enterprises Republic of Indonesia 43
MANUFACTURING State Owned Enterprises in the manufacturing sector such as pharmaceuticals cement fertilizer ship building and aerospace etcetera 50 000 DWT Supported by experienced specialists and skilled tehnicians Quality improvement accuracy International standard certificates PKR 105 Light Frigate product of PT PAL 42 Connecting The Nation Ministry of State Owned Enterprises Republic of Indonesia 43
The New Development Project N219 Aircraft N219 which is produced by Indonesia s state owned aircraft manufacturer PTDI is designed to meet the needs for the pioneer flight of extreme geographical characteristics where the majority of airfields are very short airstrip unpaved runway and are located at high altitude areas N219 will be the most suitable mode of transport to open isolated areas improve people economy growth as well as to maintain defense and security Indonesia s state owned railway manufacturer PT INKA is preparing to produce 240 railway carriages for exports to Bangladesh and 90 others to Srilanka 44 Connecting The Nation Indonesia s state owned land system manufacturer PT Pindad produces personal carrier type Anoa 6X6 armoured vehicle for about 260 unit customize with demands and consumer needs Production capacity of Anoa Komodo is 80 unit Year PT IKI made new ship of Ro ro ferry boat 750 GT KMP Lakaan which has a length of 56 7 meters with a passenger capacity of 196 people to strenghten the connectivity of eastern region of Indonesia Ministry of State Owned Enterprises Republic of Indonesia 45
The New Development Project N219 Aircraft N219 which is produced by Indonesia s state owned aircraft manufacturer PTDI is designed to meet the needs for the pioneer flight of extreme geographical characteristics where the majority of airfields are very short airstrip unpaved runway and are located at high altitude areas N219 will be the most suitable mode of transport to open isolated areas improve people economy growth as well as to maintain defense and security Indonesia s state owned railway manufacturer PT INKA is preparing to produce 240 railway carriages for exports to Bangladesh and 90 others to Srilanka 44 Connecting The Nation Indonesia s state owned land system manufacturer PT Pindad produces personal carrier type Anoa 6X6 armoured vehicle for about 260 unit customize with demands and consumer needs Production capacity of Anoa Komodo is 80 unit Year PT IKI made new ship of Ro ro ferry boat 750 GT KMP Lakaan which has a length of 56 7 meters with a passenger capacity of 196 people to strenghten the connectivity of eastern region of Indonesia Ministry of State Owned Enterprises Republic of Indonesia 45
AGRICULTURE FISHERIES SOE s Plantation 43 Units 1 18 Million Ha Land Owned Sugar Factories 138 000 Tons Cane per Day 80 Units 288 Estates 1 000 Ha up to 6 000 Ha per Estate Rubber Factories 916 Tons Dry Rubber per Day 73 Units 28 Units Palm Oil Mills Tea Processing 3 235 Tons FFB per Hour 260 Dry Tea per Day The Indonesian archipelago is one third land and two thirds sea This combination has long sustained the population by providing food as demanded by the population growth Horticulture Investment Opportunities Hass Avocado Project Costs USD 288 07 Million Area 5 700 Ha Longan Fruit Project Costs USD 18 52 Million Area 700 Ha Durian Project Costs USD Area 56 66 Million 1 800 Ha Banana Project Costs USD Area 3 61 Million 700 Ha Strategic investors are invited to invest in SOE s Sugar Industry for On Farm Off Farm Development 2017 2022 234 900 354 600 51 Connecting The Nation Area Ha 16 2 Million Sugar Cane Production Tons 30 8 Million 91 1 17 Million Sugar Production Tons 2 88 Million 145 141 657 46 Growth Sugar Factory Capacity TCD 200 000 41 Ministry of State Owned Enterprises Republic of Indonesia 47
AGRICULTURE FISHERIES SOE s Plantation 43 Units 1 18 Million Ha Land Owned Sugar Factories 138 000 Tons Cane per Day 80 Units 288 Estates 1 000 Ha up to 6 000 Ha per Estate Rubber Factories 916 Tons Dry Rubber per Day 73 Units 28 Units Palm Oil Mills Tea Processing 3 235 Tons FFB per Hour 260 Dry Tea per Day The Indonesian archipelago is one third land and two thirds sea This combination has long sustained the population by providing food as demanded by the population growth Horticulture Investment Opportunities Hass Avocado Project Costs USD 288 07 Million Area 5 700 Ha Longan Fruit Project Costs USD 18 52 Million Area 700 Ha Durian Project Costs USD Area 56 66 Million 1 800 Ha Banana Project Costs USD Area 3 61 Million 700 Ha Strategic investors are invited to invest in SOE s Sugar Industry for On Farm Off Farm Development 2017 2022 234 900 354 600 51 Connecting The Nation Area Ha 16 2 Million Sugar Cane Production Tons 30 8 Million 91 1 17 Million Sugar Production Tons 2 88 Million 145 141 657 46 Growth Sugar Factory Capacity TCD 200 000 41 Ministry of State Owned Enterprises Republic of Indonesia 47
HEALTHCARE The healthcare industry in Indonesia has seen rapid growth in recent years And with a large rapidly urbanized population healthcare will continue to become an attractive sector for investment for the unforeseeable future 70 7 000 Hospitals Clinics owned by SOEs Beds Pharmacy Industries 6 Projects 48 Connecting The Nation USD 90 29 Billion Rp 1 036 Billion Allocated fund New Plant of Banjaran Salt Pharmaceutical II Plant Project Pilot Scale Product Development Building No 34 Biosimiler Production Facility Animal Lab Facility MR Production Facility Ministry of State Owned Enterprises Republic of Indonesia 49
HEALTHCARE The healthcare industry in Indonesia has seen rapid growth in recent years And with a large rapidly urbanized population healthcare will continue to become an attractive sector for investment for the unforeseeable future 70 7 000 Hospitals Clinics owned by SOEs Beds Pharmacy Industries 6 Projects 48 Connecting The Nation USD 90 29 Billion Rp 1 036 Billion Allocated fund New Plant of Banjaran Salt Pharmaceutical II Plant Project Pilot Scale Product Development Building No 34 Biosimiler Production Facility Animal Lab Facility MR Production Facility Ministry of State Owned Enterprises Republic of Indonesia 49
Indonesia Healthcare Corporation IHC a new holding company overseeing 70 hospitals clinics owned by SOEs was formed in Q1 2017 with Pertamina Bina Medika the subsidiary of Pertamina being the holding IHC is envisioned to be the leading healthcare provider in Indonesia combining the breadth of its network and economies of scale of its supply chain The government expects that merger or consolidation of state owned pharmaceutical firms will reduce duplication and fragmentation and create economies of scale Pre IPO funding equity equity like debt is needed for expansion and a public listing in 2018 19 is envisioned for IHC to be a truly independent company Before IPO with pre funding After IPO and other SOEs 70 and other SOEs 30 50 Connecting The Nation 30 x IHC IHC Investor up to Investor 70 Public x Ministry of State Owned Enterprises Republic of Indonesia 51
Indonesia Healthcare Corporation IHC a new holding company overseeing 70 hospitals clinics owned by SOEs was formed in Q1 2017 with Pertamina Bina Medika the subsidiary of Pertamina being the holding IHC is envisioned to be the leading healthcare provider in Indonesia combining the breadth of its network and economies of scale of its supply chain The government expects that merger or consolidation of state owned pharmaceutical firms will reduce duplication and fragmentation and create economies of scale Pre IPO funding equity equity like debt is needed for expansion and a public listing in 2018 19 is envisioned for IHC to be a truly independent company Before IPO with pre funding After IPO and other SOEs 70 and other SOEs 30 50 Connecting The Nation 30 x IHC IHC Investor up to Investor 70 Public x Ministry of State Owned Enterprises Republic of Indonesia 51
CORPORATE SOCIAL RESPONSIBILITY As an agent of development the Ministry of StateOwned Enterprises companies ultimately aim to serve the nation Corporate Social Responsibility is a way to give back to the society by State Owned Enterprises with many programs such as providing clean water infrastructure electricity sanitation facilities and learning opportunities that reach millions within the country giving them better quality of life and wellbeing and in turn may make them enable to better contribute to the economy 52 Connecting The Nation Student Enrichment Program Renovation of Veteran s Houses BUMN teach at schools Independence Day Ceremony at Remote Areas Ministry of State Owned Enterprises Republic of Indonesia 53
CORPORATE SOCIAL RESPONSIBILITY As an agent of development the Ministry of StateOwned Enterprises companies ultimately aim to serve the nation Corporate Social Responsibility is a way to give back to the society by State Owned Enterprises with many programs such as providing clean water infrastructure electricity sanitation facilities and learning opportunities that reach millions within the country giving them better quality of life and wellbeing and in turn may make them enable to better contribute to the economy 52 Connecting The Nation Student Enrichment Program Renovation of Veteran s Houses BUMN teach at schools Independence Day Ceremony at Remote Areas Ministry of State Owned Enterprises Republic of Indonesia 53
04 SYNERGY AMONG SOEs SOE s are categorized into 4 levels Transactional Balkondes developing a tourist village in the area around Borobudur by building homestay rooms and handicraft workshops 189 20 18 Homestay Rooms villages Target SOEs Collaboration or Cooperation Strategic Alliance Consolidation Investment Holding PTBA Electricity Supply to PLN Collaboration between SOEs by establishing a digital economy ecosystem to increase capacity and capability of Small to Medium size Enterprises SMEs 54 Connecting The Nation 200 463 134 7 120 RKB built SMEs registered SMEs listed in e commerce Blanja com Joint Venture Investment in Smelter Business to Business Non banking Non Telecommunication SOEs SOE Business Operational Activity Banking SOE Telecommunication Payment Telecommunication transactions Ministry of State Owned Enterprises Republic of Indonesia 55
04 SYNERGY AMONG SOEs SOE s are categorized into 4 levels Transactional Balkondes developing a tourist village in the area around Borobudur by building homestay rooms and handicraft workshops 189 20 18 Homestay Rooms villages Target SOEs Collaboration or Cooperation Strategic Alliance Consolidation Investment Holding PTBA Electricity Supply to PLN Collaboration between SOEs by establishing a digital economy ecosystem to increase capacity and capability of Small to Medium size Enterprises SMEs 54 Connecting The Nation 200 463 134 7 120 RKB built SMEs registered SMEs listed in e commerce Blanja com Joint Venture Investment in Smelter Business to Business Non banking Non Telecommunication SOEs SOE Business Operational Activity Banking SOE Telecommunication Payment Telecommunication transactions Ministry of State Owned Enterprises Republic of Indonesia 55
Jl Merdeka Selatan No 13 Gambir Jakarta Pusat 10110 Indonesia P 021 299 35678 F 021 299 35740 www bumn go id
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