Indonesian Economic Overview Indonesian Archipelago

• Total area + 1.9 million square km, 2/3 is covered by water

• 95,181 km of sea line the 4th longest in the world after Canada, USA and Russia

• Approximately 17,480 islands separated by sea

INTERISLAND CARGO MOVEMENT

• Economic growth increases trade activities and volume of interisland seaborne cargo

• This given geographic condition creates high dependency for sea transportation

TARAKAN

NABIRE

TIMIKA

MANOKWARI

BAU-BAU

TOLI-TOLI

SAMPIT KUMAI

GORONTALO

BITUNG

BATAM

1. Sabang

2. Belawan

3. Dumai

4. Batu Ampar

5. Sekupang

6. Kabil

7. Lobam

8. Tg. Balai Karimun

9. Teluk Bayur

10. Tua Pejat

11. Palembang

12. Panjang

13. Bojonegara

14. Tg. Priok

15. Tg. Intan

16. Tg. Emas

17. Tg. Perak

SUMATERA : JAWA :

18. Benoa

19. Tenau Kupang

BALI – NUSA TENGGARA :

20. Pontianak

21. Balikpapan

22. Sampit

23. Banjarmasin

24. Mekar Putih

KALIMANTAN :

25. Makassar

26. Pantoloan

27. Bitung

SULAWESI :

28. Ambon

29. Ternate

30. Sorong

31. Jayapura

32. Merauke

PAPUA – KEP MALUKU :

INDONESIAN MAIN PORTS

YEAR WEST INDONESIA EAST INDONESIA NUMBER OF TRADES

2005 6 42 48 2006 11 41 52 2007 11 42 53 2008 11 45 56 2009 11 47 58 2010 2011

11 11

49 50

60 61

• 30 main ports and 423 supporting ports • Pelayaran Perintis (pioneer trade routes) serves remote, isolated, and less

developed areas/regions which is run by the government and non commercial

PIONEER TRADE ROUTES

COMMODITIES UNIT 2010 2020 2030

CONTAINERS TEU 10 21 42

GENERAL CARGO MT 14 25 43

COAL MT 252 468 500

PETROLEUM PRODUCT

MT 12 40 107

CPO MT 21 32 40

(million)

TRAFFIC PROJECTION AT INDONESIAN PORTS

2020 CONTAINER TRAFFIC WILL BE DOUBLED THAN 2009 VOLUME

2030 CONTAINER TRAFFIC WILL BE DOUBLED THAN 2020 VOLUME

CONTAINER TERMINAL CAPACITY EXPANSION AND DEVELOPMENT URGENTLY NEEDED TO PREVENT CONGESTION

LESS GROWTH OF LIQUID AND DRYBULK CARGO TRAFFIC COMPARE TO CONTAINER RESULTING IN ONLY 50% TOTAL CARGO GROWTH IN 2020 AND ANOTHER 50% IN 2030

BULK TERMINAL CAPACITY EXPANSION AND DEVELOPMENT NEEDED

IMPLICATION OF TRAFFIC PROJECTION

Indonesian Economic Overview

• Indonesian Shipowner Characteristics

– Majority Indonesian shipowners operate their own vessels

– Indonesian law required vessel registered owner as single entity

– Most of Indonesian shipowners are member of INSA (Indonesian National Shipowners’ Association)

Indonesian Economic Overview

1989

(306)

1999

(747)

2009

(1.064)

2011

(1.168)

2012*

(1.238)

THE GROWTH OF INSA MEMBERS

*As per March, 2012 INSA has 1.238 member companies

THE GROWTH OF SHIPPING COMPANIES

0

500

1.000

1.500

2.000

2.500

2005 2006 2007 2008 2009 2010 2011

1.591 1.704

1.831 1.982

2.140 2.273

2.477

NUMBER OF SHIPPING COMPANIES

Sources : Bisnis Indonesia, 20th March 2012

THE GROWTH OF SHIPPING COMPANIES

2.150

2.200

2.250

2.300

2.350

2.400

2.450

2.500

2010 2011

2.273

2.477

204 unit (8,97%)

• Based on Shipping Licenses (SIUPAL) issued by Sea Com DG - Ministry of Transport, Republic of Indonesia, the number of shipping companies in Indonesia as per October 2011 is 2.477 units

unit vessel

NATIONAL SHIPPING COMPANIES LISTED IN IDX

Number of national shipping companies listed in the Indonesian Stock Exchange increased 280 % from 5 companies in 2000 to 18 companies in 2012 (including those consolidated in respectives holding companies)

0

2

4

6

8

10

12

14

16

18

2000 2005 2012

7

18

5

Units

LIST OF SHIPPING COMPANIES LISTED IN IDX

Source: Indonesia Stock Exchange

No Company ID Activity Registered

1 PT Berlian Laju Tanker Tbk BLTA Transport - Marine 26-Mar-90

2 PT Rig Tenders Indonesia Tbk RIGS Transport - Marine 26-Mar-90

3 PT AKR Corporindo Tbk AKRA Distribution/Wholesale Sep-94

4 PT Mitra Internasional Resources MIRA Transport - Marine 30-Jan-97

5 PT Samudera Indonesia Tbk SMDR Transport - Marine 05-Jul-99

6 PT Tanah Laut Tbk INDX Infrastructure, Utilities and Transport 17-Mei-01

7 PT Arpeni Pratama Ocean Line Tbk APOL Transport - Marine 22-Jun-05

8 PT Ancora Indonesia Resources Tbk OKAS Petrochemicals 29-Mar-06

9 PT Radiant Utama Interinsco Tbk RUIS Oil Comp-Explor&Prodtn 12-Jul-06

10 PT Humpuss Intermoda Trans Tbk HITS Transport - Marine 15-Des-07

11 PT Elnusa Tbk ELSA Oil-Field Services 06-Feb-08

12 PT Trada Maritime Tbk TRAM Transport - Marine 10-Sep-08

13 PT Pelayaran Tempuran Emas Tbk TMAS Transport - Marine 31-Des-09

14 PT Wintarmar Offshore Marine Tbk WINS Transport - Marine 29-Nov-10

15 PT Mitrabahtera Segara Sejati Tbk MBSS Transport - Marine 06-Apr-11

16 PT Buana Listya Tama Tbk BULL Transport - Marine 23-Mei-11

17 PT Indo Straits Tbk PTIS Transport - Marine 12-Jul-11

18 PT ABM Investama Tbk ABMM Diversified Operations 06-Des-11

• At least 11.1% of current total national fleet is aged more than 30 years therefore in need for rejuvenation

• In 2009 there are 513 vessels aged 35 years and above • In 2009 more than 37 financial institutions financed 201 unit vessels

procurement in the amount of USD 525 mio + JPY 850 mio + SGD 1,1 mio

• The growth of domestic cargo needs additional tonnages. As per end of 2010 there is still 1.9% of domestic cargo carried by foreign vessels

• The growth of international cargo as per end of 2010 only 9.1% of +/- 560 million tons per annum is carried by national vessels

• Study on public ship finance and shipping industry by consultant SRG and SAP stated that in 2014, there are need for various type of vessels 1,076 units, 521 units for replacement of old tonnage and 555 units for fresh tonnage

• Estimated ship financing required USD 2.7 – 3.38 Bio

• Number of vessels as per 30st November 2011 are 10.872 units (14,59 mio GT) • Number of vessel as per 31 March 2005 are 6.041 unit (5,67 mio GT) • Therefore there increasing number of vessel 4.831 units (80%) with total tonnage

8,92 mio GT (157,32%).

31st March 2005 30th Nov 2011

No. of Ships 6.041 10.872

0

1.500

3.000

4.500

6.000

7.500

9.000

10.500

12.000

Un

it V

esse

l

4.831 units (80 %)

10.872

6.041

NUMBER OF INDONESIAN FLAG VESSELS

> 14 mio GT

10,872 vessels

> 17 mio DWT

NATIONAL vs FOREIGN VESSELS

-

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

10.000

2006 2007

2008 2009

2010

1.448

1.154

977 865

691

6.428 7.154

8.165

9.164 9.945

Nu

mb

er o

f V

esse

ls

Year

Source : Indonesia Ministry of Transportation, Transportation Statistic – Book 1, 2010

Vessels operated (by ownership) after implementation of cabotage

National

Foreign charter

DOMESTIC CARGO MOVEMENT

-

50

100

150

200

250

300

350

400

2006 2007

2008 2009

2010 2020

(forecast)

85 79

50

28

6 -

135 149

193

258

303

358

Foreign Shipping Line (in mio tons)

Indonesian Shipping Line (in mio tons)

Volume of domestic cargo transported by Indonesian and foreign vessels after implementation of Cabotage

CHALLENGES & OPPORTUNITIES

• The growth of Indonesian flag vessels has outpaced the growth of shipyards

• Less developed port facilities in eastern parts of Indonesia where most of the abundant natural resources are located

CONCLUSION

• In spite of the current global shipping downturn, the Indonesian shipping industry is still promising

Thank You

Bani M Mulia

March, 2012

www.samudera.co.id