Investment opportunities offered by state-owned enterprises in Indonesia

1. Investment Opportunities in Indonesia’s
State-owned Enterprises

2. 2
Agenda I Indonesia’s Economy: Rapid & Sustainable Growth 2
II Profile of Indonesia’s State-owned Enteprises 5
III Investment opportunities in Indonesia’s State-owned
Enterprises
11

3. ECONOMIC INDICATORS
2012 Targets
2012
(real.)
2013 Targets
Mid Term
Plan
Annual
Plan
Mid Term
Plan
Annual
Plan
Economic Growth (%) 6,4-6,9 6.5 6.23 6,7-7,4 6.8
GDP per capita (USD) 3,170 N.A 3,563 3,445 N.A
Economic Stability
Inflation rate (%) 4,0-6,0 6.8 4,3 3,5-5,5 4.9
Nominal Exchange Rate
(Rp/USD)
9.250-
9.750
9,000 9,380
9.250-
9.850
9,300
Government Debt/GDP (%) 27 N.A 23 25 N.A
Investment Growth
(PMTB %)
8.4-11.5 9,5 9.81 10.2-12.0 11.9
Investment Value
(Trilion Rp)
283.5 N.A 313,2 390 N.A
Current Account
Export Growth (%) 11.4-12.0 14.1 2.01 12.3-13.4 11.7
Export Value (Billion USD) 190 N.A 190 194 N.A
Import Growth (%) 14.3-15.9 17.3 6.65 15.0-16.5 13.5
Import Value (Billion USD) 190 N.A 191.7 189 N.A
Unemployment and Poverty
Unemployment Rate (%) 6,7-7,0 6,1 - 6,4 6.14 6,0-6,6 5,8-6,1
Poverty Rate (%) 10,5-11,5
10,5-
11,5
11.66 9,5-10,5 9,5-10,5
Indonesian Economy:
Moving on the Right Track
1. Indonesian economy
performs as targeted;
2. 2nd fastest growing
economy in G20;
3. No longer fueled solely
by consumption,
investment grew by
9.81% in 2012;
3
Source: Bank Indonesia, Badan Ousat
Statistik, MoF, MoT

4. Future Growth is Blessed with Energetic Demographic Dividend
Japan 1950 Indonesia now
Indonesia’s demographic structure
resembles Japan in 1950, just before
they took off.
From 2010 – 2030, Indonesia’s working
age will rise, while dependency ratio
steadily drop, providing the necessary
human capital for sustainable growth &
development. 4
Source: BPS, The Economist, World Bank

5. 5
Agenda I Indonesia’s Economy: Rapid & Sustainable Growth 2
II Profile of Indonesia’s State-owned Enteprises 5
III Investment opportunities in Indonesia’s State-owned
Enterprises
11

6. 2008 2009 2010 2011 2012 2013
Listed/Public SOEs 14 15 17 18 19 19
Non Listed SOEs 113 112 111 109 109 109
Special Purpose Entity (Perum) 14 14 14 14 15 15
Total Number of SOEs 141 141 142 141 142 142
Enterprises with minority govt
ownership
21 19 18 18 13 12
2
25
4
5
31
5
2
3
22
16
22
1
2
Water Supply, Sewerage, Waste Management, and
Remediation Activities
Agriculture, Forestry, and Fishing
Wholesale and Retail Trade
Mining and Quarrying
Manufacturing
Professional, Scientific, and Technical Activities
Electricity, Gas, Steam, and Air Conditioning Supply
Information and Communication
Transportation and Storage
Construction
Financial and Insurance Activities
Accomodation and Food Service Activities
Real Estate Activities
6
Our Portfolio
SOEs’ Profile
As of December 2012, there are
142 SOEs and 12 companies by
which Government has
minority stake under Ministry
of SOEs ‘ administration.
MSOEs is the major
Government Proxy which
manages Government’s
majority shares in 142 State-
enterprises. The management
of the enterprises is carried out
by separate board of Directors
& Board of Commissioners,
using private/corporate
paradigm.
Operating in different kind of
industrial sectors, our portfolio
enables risk mitigation and
great opportunity of synergy; a
valuable capital to give greater
contribution for national
growth.
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7. KINERJA PENGELOLAAN KEUANGAN KBUMN 2008-2011
1,971
2,241 2,341
2,947
3,433
502 566 570
689
818
1,086
951 964
1,378
1,551
26
30
28
30
33.5
0
50
100
150
200
250
300
350
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2008 2009 2010 2011 2012
Performance of Indonesia’s SOEs 2008-2012
Assets Equities Sales Net Income (consol) Dividends Taxes
Financial aspects 2008 2009 2010 2011 2012
Assets 1,971 2,241 2,341 2,947 3,433
Equities 502 566 570 689 818
Sales 1,086 951 964 1,378 1,551
Net Income (consolidated) 53 87 106 122 140
Dividends 26 30 28 30 33,5
Taxes 96 92 105 109 115
Notes: The 2008-2011 figures are audited performances, whilst 2012 figures are based on the most recent data which consist of 72
audited FS and 70 unaudited FS. For Dividend, 2008-2011 numbers are actual contribution from result of previous year performance.
Dividend for 2012 is target for state budget year of 2013. 7

8. Capex
Opex
146 T 176 T
1,159
T
374 T
SOEs 2012
(estimation)
State Budget
SOEs 2012
(estimation)
State Budget
8
SOE continues to provide significant contribution to Indonesia’s economy. SOEs’ sales
is 19% of Indonesia’s GDP, while assets growth for 2009 – 2012 reached 2-4 times of
GDP growth except for 2010. From the spending side, SOEs’ Capex is almost equal to
state’s budget and Opex even highly exceeded those of the state.
13.7%
4.5%
25.9%
16.5%
4.5%
6.1% 6.5% 6.2%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
2009 2010 2011 2012
Asset Growth GDP Growth
0
10
20
30
40
50
60
70
SOE Asset to Indonesia GDP Growth for the
period 2009 - 2012

9. SOEs 4-Jan-10 29-Apr-13 Growth Market Cap
1 BMRI 4,843 10,600 118.87% 244.86
2 BBRI 3,900 9,200 135.90% 224.69
3 BBNI 1,887 5,300 180.87% 97.85
4 BBTN 807 1,490 84.63% 15.58
5 ANTM 2,300 1,370 -40.43% 13.07
6 PTBA 17,800 15,150 -14.89% 34.91
7 TINS 2,125 1,430 -32.71% 7.20
8 INAF 83 290 249.40% 0.90
9 KAEF 127 990 679.53% 5.50
10 KRAS* 850 550 -35.29% 8.68
11 SMGR 7,600 18,350 141.45% 108.84
12 PGAS 3,950 6,300 59.49% 152.72
13 ADHI 410 2,975 625.61% 5.36
14 PTPP* 560 1,390 148.21% 6.73
15 WIKA 330 2,425 634.85% 14.81
16 WSKT* 380 780 105.26% 7.51
17 GIAA* 750 630 -16.00% 14.26
18 JSMR 1,850 6,700 262.16% 45.56
19 TLKM 9550 11,400 19.37% 229.82
Total Market Cap of SOE 1,238.85
Total Market Cap of IDX 4,867.00
Performance of SOEs’ Stock in IDX, 2010 - Today
There are 19 SOEs in IDX, out of
468 total listed companies or
4% in terms of proportion.
This 4% SOEs contributes a
significant proportion of market
capitalization, ie IDR 1,238
trillion, or 25% of total IDX
capitalization (per April 2013).
During the last 3 years, 10 out
of 19 listed SOEs outperformed
JCI’s growth (attained more
than 94.14% growth).
In the Forbes Global 2000 year
2012, out of 10 Indonesia’s
companies in the list, 6 are
SOEs.
*) KRAS was listed on Nov 9 2010, PTPP Feb 8th 2010,
WSKT Dec 18th 2012 and GIAA Feb 10 2011.
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10. 10
Agenda I Indonesia’s Economy: Rapid & Sustainable Growth 2
II Profile of Indonesia’s State-owned Enteprises 5
III Investment Opportunities in Indonesia’s State-owned
Enterprises
11
1. SOEs’ Capex at a glance;
2. Potential Privatization of State-owned Enterprises and
their SOE subsidiaries;
3. Bond Issuance plans.

11. 2009 2010 2011 2012* 2013B
Top5SOEs 85.214.143 144.802.467 88.063.452 95.074.466 167.852.487
Top10SOEs 89.573.879 154.367.025 93.132.998 105.368.068 202.297.543
GrandTotal 107.337.954 273.739.748 130.328.237 146.108.751 250.620.032
%ageTop5 79,39% 52,90% 67,57% 65,07% 66,97%
%ageTop10 83,45% 56,39% 71,46% 72,12% 80,72%
SOEs’ Capital Expenditure: Commitment to Support Infrastructure Development
-
50
100
150
200
250
300
2009 2010 2011 2012 2013
Millions
State Owned Enterprise's Capital Expenditure
2009 - 2013B
Top 5 SOEs Top 10 SOEs Grand Total
Notes: The 2008-2011 figures are audited performances, whilst 2012 figures are based on the most recent data which consist of 72
audited FS and 70 unaudited FS. As for 2013 Budgeted figure, since by regulation it is prohibited for public companies to disclose their
budget, the capex numbers for 19 listed SOEs are based on shareholder’s expectation.
Although total SOEs investment
depicted a significant downturn in
2011; the trend have begun to show
a positive growth.
Along with MSOEs policy to focus on
making SOEs as the engine of
growth, SOEs are encouraged to
explore profitable investment
especially those in infrastructure
development to support national
demands.
In 2013, total investment is
projected to reach Rp. 250 Trillions
(or increase more than 70% from
2012 figure) which part of them are
linked with MP3EI as an national
integrated effort to lever
infrastructure availability.
In Rp. Millions
11

12. -
5.0
10.0
15.0
20.0
Comm. 16.8 17.4 17.2 16.1 17.4
SOE 14.0 14.0 15.4 15.0 16.2
2008 2009 2010 2011 2012
-
20.0
40.0
60.0
80.0
100.0
Comm. 88.6 86.6 86.1 85.4 74.1
SOE 89.9 92.4 88.2 91.9 70.5
2008 2009 2010 2011 2012
-
1.0
2.0
3.0
4.0
Comm. 2.3 2.6 2.9 3.0 3.1
SOE 2.7 2.7 3.1 3.6 3.8
2008 2009 2010 2011 2012
-
20.0
40.0
60.0
80.0
100.0
Comm. 74.6 72.9 75.2 78.8 83.6
SOE 70.3 69.6 71.5 74.8 79.8
2008 2009 2010 2011 2012
Still unfavorable CAR against commercial bank,
with narrow variance for the last 2 years
Lower BOPO than commercial bank
for the 1st time in 5 years
Favorable result in LDR, but the highest to cover
unforeseen fund requirement for the last 5 years
Higher ROA for the last 5 years,
as driven by high interest spread/margin
SOEs’ Bank vs Commercial Bank: a bright prospect as economic trend will protect
the Indonesia banks' strong capital generation capacity

13. Banking Sector – Stock Growth, dominated by big cap
last price - Apr 29th, 2013 growth vs Jan 1st, 2010
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
1/4/2010
2/4/2010
3/4/2010
4/4/2010
5/4/2010
6/4/2010
7/4/2010
8/4/2010
9/4/2010
10/4/2010
11/4/2010
12/4/2010
1/4/2011
2/4/2011
3/4/2011
4/4/2011
5/4/2011
6/4/2011
7/4/2011
8/4/2011
9/4/2011
10/4/2011
11/4/2011
12/4/2011
1/4/2012
2/4/2012
3/4/2012
4/4/2012
5/4/2012
6/4/2012
7/4/2012
8/4/2012
9/4/2012
10/4/2012
11/4/2012
12/4/2012
1/4/2013
2/4/2013
3/4/2013
4/4/2013
10,600 119%
9,200 136%
5,300 181%
1,490 85%
11,000 118%
1,410 102%
405 29%
800 5%
1,700 97%
6,350 41%

14. Semen Baturaja
profitability
measures are very
competitive despite
of the lowest market
share compared
with the 3 giants
44% market share for Semen Gresik
Cement Sector: strong start to the year off to a flying start, with Semen Gresik to
enjoy additional capacity & as the top pick

15. Market Share – WIKA as the leader, extremely rosy
Outperform JCI by 24%
2009 2010 2011 2012
Gross Margin, %
WIKA 9.8% 11.2% 11.2% 11.3%
ADHI 9.7% 13.6% 11.9% 13.7%
PTPP 11.1% 11.7% 12.6% 12.4%
WAKA 9.8% 9.8% 9.1% 8.3%
TOTL 9.6% 12.7% 15.6% 19.0%
Net Margin, %
WIKA 2.9% 4.7% 4.6% 4.7%
ADHI 2.1% 3.3% 2.7% 2.8%
PTPP 3.9% 4.6% 3.9% 3.9%
WAKA 1.1% 2.1% 2.4% 2.9%
TOTL 3.0% 5.2% 7.9% 9.9%
ROAE, %
WIKA 12.2% 16.0% 17.1% 18.2%
ADHI 24.7% 23.6% 19.6% 19.5%
PTPP 33.6% 22.3% 17.9% 20.1%
WAKA 70.1% 31.6% 32.1% 19.3%
TOTL 10.6% 14.5% 19.7% 26.7%
ROAA, %
WIKA 3.1% 3.6% 3.3% 3.0%
ADHI 3.3% 4.8% 4.9% 4.8%
PTPP 4.7% 4.2% 3.9% 4.0%
WAKA 1.9% 3.5% 3.7% 3.8%
TOTL 4.0% 5.1% 6.6% 8.5%
DER
WIKA 0.1 0.2 0.2 0.4
ADHI 1.2 1.0 0.7 0.8
PTPP 1.9 0.9 1.0 1.1
WAKA 0.3 0.2 0.2 0.2
TOTL 0.1 0.1 0.1 0.1
Construction Sector – Growth in spades
Extend its rerating even though the sector has outperformed the JCI by 24%

16. Telecommunication – Data as the source of Growth
Rational behavior of the incumbents & maintaining capex
TLKM as the biggest capex spending
Aggressive # of BTS – TLKM as the highest for both 3G & 2G
2009 2010 2011 2012
EBITDA Margin
TLKM 54.3% 54.4% 51.8% 51.5%
ISAT 47.7% 48.6% 45.7% 45.6%
EXCL 44.4% 52.4% 49.4% 45.1%
ROAA
TLKM 12.1% 11.7% 10.8% 12.0%
ISAT 2.8% 1.2% 1.6% 4.7%
EXCL 6.1% 10.6% 9.7% 7.9%
ROAE
TLKM 31.2% 27.8% 23.9% 25.9%
ISAT 8.5% 3.6% 4.6% 12.7%
EXCL 26.1% 28.2% 22.3% 18.0%
Gearing
TLKM 58.6% 49.6% 37.6% 37.4%
ISAT 126.8% 143.0% 136.0% 128.2%
EXCL 211.0% 132.6% 127.6% 130.7%
Market Share – TLKM still dominating
Cellular Revenue Share
TLKM
58%
ISAT
20%
EXCL
22%
Subs Market Share
EXCL
21%
TLKM
55%
ISAT
24%

17. Secondary Public Offering of PT
Aneka Tambang Tbk (2013)
• Antam is a vertically integrated,
export-oriented, diversified
mining and metals company.
This SOE has long term loyal
blue chip customers in Europe
and Asia.
• Strong financial performance.
• Promising prospect for business
expansion
• Proceeds will be used for
expansion, including
development of FeNi mining in
Eastern Kalimantan and
modernization of Pomalaa
project.
• Will result in tax cuts as public
ownership exceeds 40%.
INVESTMENT Capex
(Projection, 2012)
% of Ownership
(Projection 2012)
CGA USD 490 million 80%
MOP PP USD 496,27 100%
FeNi Haltim USD 1,6 billion
(Incl Power Plant)
100% in 2012. 80%
in 2013 (IPO in
2015 for the
remaining 29%)
Sponge Iron USD 150 million 34%
SGA Mempawah *) USD 1.5 billion 50%
Acquisition of NHM USD 130 million+
USD 30 milliom
Added 7.5% to be
25%
Several major investments
17

18. Initial Public Offering of
PT Semen Baturaja
• PT Semen Baturaja is one among 3 SOEs in cement
industry. The companies located in southern
Sumatra and operates using 3 cement plants which
from 2011 have reached their maximum capacity.
• With the growing domestic demand due to
promising national development in recent years,
national producers are still lacking in fulfilling those
needs. Indonesian Cements Association forecasts a
6% increase in cement output and expects cement
demand to increase by 8 – 10% in 2013; while
current national production doesn’t even able to
fulfill current demand.
• The company is in urge to invest in a new plant with
1,5 million ton/year capacity which estimated will
need Rp. 2,5 Trillion fund in order to maintain their
market share in Southern Sumatra.
• The IPO expected proceeds, valued to be Rp. 1
Trillion, will be used to partly finance the
investment whilst the rest would be financed by
internal fund (Rp. 1 T) and debt (Rp. 0,5 T).
Market Share in Southern Sumatra*
31% 31%
29%
26%
24% 23%
21% 20%
18% 17% 16% 15%
31% 31%
29%
26%
29%
31% 32%
30%
48% 47%
44%
41%
0%
10%
20%
30%
40%
50%
60%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Without Additional Investment With Additional Investment
*assuming 8% growth in demand

19. Potential Initial Public Offering of
PT Pertamina Gas
(Subsidiary of PT Pertamina)
PT Pertamina Gas is a company
active in the midstream and
downstream sectors of the
Indonesian gas industry. It is a
subsidiary of PT Pertamina
(Persero) involved in trading,
transportation, processing and
other businesses related to natural
gas and its byproducts.
Description 2009 2010 2011 2012
1 Sales 1,481,574 2,015,755 2,377,314 3,754,235
2 Net Profit 198,037 573,302 807,700 1,148,845
3 Assets 1,668,593 4,331,855 5,361,316 7,034,126
4 Equities 471,456 2,755,250 3,424,226 4,497,335
In million IDR
19

20. 20
Potential Initial Public Offering of
PT GMF Aero Asia
(Subsidiary of PT Garuda Indonesia Tbk)
• PT GMF AeroAsia is an International
aircraft MRO services. It is a subsidiary of
PT Garuda Indonesia Tbk.
• It holds federal aviation administration
certification since 1992, and EU ASA since
2003.
• GMF has customers is more than 50
countries in 5 continents.
• Its services includes
base/engine/line/component
maintenance material services and
learning services.
• GMF carried out section 41 inspection &
modif on B747s, and selected to take part
in lap joint program for B737-400.

21. 21
Potential Initial Public Offering of
PT Aerowisata
(Subsidiary of PT Garuda Indonesia Tbk)
• Aerowisata is the biggest subsidiary of
PT Garuda Indonesia Tbk, providing
international flight catering services,
hotel & resort, travel & leisure, land
transportation and cargo.
• Aerowisata keeps expanding its
business network to business centers
or domestic and interational tourist
destination.
• Aerowisata has 25 domestic business
area, and 12 international business
area.
• It has 13 subsidiary, which includes
Aerofood ACS (leading airline catering),
Aerotrans (operates > 1000 units of
vehicles), Aerowisata Hotels (located
strategically across Indonesia) and
Aerowisata Travels.

22. No SOEs Amount Denomination
1 PT PNM Rp. Million 1,000,000 Domestic bond
2 PT DANAREKSA Rp. Million 1,000,000 Domestic bond
3 PT PEGADAIAN Rp. Million 7,000,000 Domestic bond
4 PT BTDC Rp. Million 500,000 Domestic bond
5 PT Bank BTN Rp. Million 2,000,000 Domestic bond
6 PT Hutama Karya Rp. Million 750,000 Domestic bond
7 PT Brantas Abipraya Rp. Million 500,000 Domestic bond
8 PT PLN Rp. Million 12,000,000 Domestic bond
9 PT Garuda Indonesia US$ thousands 200,000 Domestic bond
10 PT Antam Rp. Million 1,000,000 Domestic bond
Rp. Million
equivalent
7,961,000 Global bond
11 PT Pertamina US$ thousands 4,400,000 Global bond
Bond Issuance Plans By SOEs in 2013
22

23. DISCLAIMER:
“We are not in a position to advise you, we are not advising you, and
the contents of this presentation must not be construed as any
advice to you, on (a) whether to invest in Indonesia’s SOEs or, (b) if
you hold an investment in Indonesia’s SOEs, the value of your
investment or how or whether you can effect any trades relating to
your investment. These queries should be addressed to a licensed
advisor from or through whom you bought the relevant investment,
respectively.”
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