Plenary Session - Economic Viability and Financing of new projects Mrs Fransisca Nelwan Mok

1. Office of Chief Economist
How importance is the port facility to Indonesian economy
More than 50% of the economic activity related with an international trade
1Q11 2Q11 2Q11 Share on
Expenditure (%) 2010 YoY QoQ YoY GDP 2011 F* 2012 F*
Growth Growth Growth 2Q11
Ports Development and Private Expenditure
Government Expenditure
4.6
0.3
4.5
3.0
1.3
26.0
4.6
4.5
54.3
8.3
4.4 - 4.9 4.6 - 5.1
9.7 - 10.2 5.5 - 6.0
Gross Fixed Capital Formation 8.5 7.3 3.9 9.2 31.6 9.6 -10.1 12.4 - 12.9
Exports 14.9 12.3 7.4 17.4 27.3 8.5 - 9.0 8.8 - 9.3
Investment Plan Imports 17.3 15.6 6.0 16.0 25.4 9.8 - 10.3 11.2 - 11.7
Gross Domestic Product
6.1 6.5 2.9 6.5 100 6.0 - 6.5 6.1 - 6.6
(GDP)
Source: BI, Mandiri
• Almost 85% of world trade distribution relies on sea transportation
Fransisca Nelwan Mok, Managing Director of Corporate Banking
PT Bank Mandiri (Persero) Tbk • About 90% of Indonesia’s trade are transported through sea ports
10 October 2011
• Even more important since Indonesia is considered as archipelagoes
2 © PT Bank Mandiri (Persero) Tbk.
Office of Chief Economist Office of Chief Economist
Indonesian Top 50 Ports for Total Traffic by Trade Flow (000’s tons)
Legend:
National Port Master Plan Concept 60,000
30,000
Export
Import
Unloading
Loading
Indonesian Top 50 Ports for Total Traffic by Cargo Type (000’s tons)
Legend:
60,000
30,000
General Cargo
Container
Dry Bulk
Liquid Bulk
Source : Dirjen Hubla
3 © PT Bank Mandiri (Persero) Tbk. 4 © PT Bank Mandiri (Persero) Tbk.
Source : Dirjen Hubla, 2009
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2. Office of Chief Economist Office of Chief Economist
However, the quality of Indonesian port infrastructure is relatively poor:
ranked 96 out of 139 countries
Quality of Port Infrastructure
6 131 140
5 120
96 97
100
4 83
67 80
3
60
43
2
40
19
1 20
5.6 5 4.3 3.9 3.6 3.6 2.8
0 0
h ila d
V tn m
In o e ia
h in s
a y ia
h a
In ia
Ta n
P illip e
C in
dns
d
M la s
ie a
Source: World Economic Forum, Executive Opinion Survey
Score Ranking
Indicative Ports Investment Requirements:
Total investment cost for Indonesia’s main ports (US$ 19.2 billion), 70-75 % from private sector and 25-30 %
from public sector)
Estimated Share Likely Funded by Amount Required from
Type of Capital Private Private
Facility Requirements Sector Gov't Sector Gov't
Container 11,517 75% 25% 8,638 2,879
CPO 1,649 85% 15% 1,402 247
Petroleum 3,470 85% 20% 2,950 694
Coal 2,491 85% 20% 2,117 498
Cruise 122 50% 50% 61 61
Total 19,249 15,168 4,380
5 © PT Bank Mandiri (Persero) Tbk. 6 © PT Bank Mandiri (Persero) Tbk.
Source: Nathan Associates Inc.
Office of Chief Economist
Bank Mandiri’s portfolio in port and shipping industry
as of Sept 30, 2011
PORT:
Rp. Milion
Latest Development:
Segment Limit Outstanding
1 Corporate 992,202 552,485 •Bank Mandiri increased its port
financing portfolio to develop
2 Commercial 112,957 78,351 East Indonesia Port;
3 Small & Micro 4,314 4,013
•On July 29, 2011 Bank Mandiri
TOTAL 1,109,473 634,849 signed a credit agreement with
PT Pelabuhan Indonesia
(Pelindo) IV amounted US$ 40
million and Rp 50 billion.
SHIPPING:
Rp. M ilion •The usage of credit is to
Segment Limit Outstanding enhance the port quality
1 Corporate 3,311,103 2,381,771 including the capacity in East
Indonesia to support the
2 Com mercial 5,753,483 4,890,548 national growth as well as to
increase the market
3 Small & Mikco 84,834 76,351
TOTAL 9,149,419 7,348,671
Source: Bank Mandiri
7 © PT Bank Mandiri (Persero) Tbk.
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