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TRANSCRIPT
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Corporate Update February 2018
Listed & traded on the Indonesia Stock Exchange (IDX) IDX Ticker Code: BHIT www.mncgroup.com
PT MNC Investama Tbk
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Disclaimer
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This material has been prepared by PT MNC Investama Tbk (the "Company") and is only for internal usage. By attending this presentation, you are agreeing to be bound by the restrictions set out below. Any failure to comply with these restrictions may constitute a violation of applicable securities laws.
The information and opinions contained in this presentation are intended solely for your personal reference and are strictly confidential. The information and opinions contained in this presentation have not been independently verified, and no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of, the information or opinions contained herein. It is not the intention to provide, and you may not rely on this presentation as providing, a complete or comprehensive analysis of the condition (financial or other), earnings, business affairs, business prospects, properties or results of operations of the company or its subsidiaries. The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to change without notice. Neither the company (including any of its affiliates, advisors and representatives) nor the underwriters (including any of their respective affiliates, advisors or representatives) shall have any responsibility or liability whatsoever (in negligence or otherwise) for the accuracy or completeness of, or any errors or omissions in, any information or opinions contained herein nor for any loss howsoever arising from any use of this presentation.
In addition, the information contained in this presentation contains projections and forward-looking statements that reflect the company's current views with respect to future events and financial performance. These views are based on a number of estimates and current assumptions which are subject to business, economic and competitive uncertainties and contingencies as well as various risks and these may change over time and in many cases are outside the control of the company and its directors. No assurance can be given that future events will occur, that projections will be achieved, or that the company's assumptions are correct. Actual results may differ materially from those forecast and projected.
This presentation is not and does not constitute or form part of any offer, invitation or recommendation to purchase or subscribe for any securities and no part of it shall form the basis of or be relied upon in connection with any contract, commitment or investment decision in relation thereto. This presentation may not be used or relied upon by any other party, or for any other purpose, and may not be reproduced, disseminated or quoted without the prior written consent of the company.
Any investment in any securities issued by the company or its affiliates should be made solely on the basis of the final offer document issued in respect of such securities.
The contents of this presentation may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose.
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1. Corporate Overview
2. Media
3. Financial Services
4. Property
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BHIT Milestone
2002 2003
1989 1999
1997
2004
2011
2001
2010
2013 2012
2007
• PT Bhakti Investama (“BHIT”) established in Nov 1989
• BHIT IPO
• BHIT transferred securities business to Bhakti Capital Indonesia ("BCAP") and Bhakti Asset Management
• BCAP IPO
• Acquired Global Mediacom (“BMTR”)
• BCAP repositioned as holding company for financial services businesses • Media Nusantara Citra (“MNCN”) established as holding company for content and advertising based media
•Securities business transferred to Bhakti Securities.
• BHIT acquired 20% stake in MSKY • MNC conducted IPO • BMTR acquired 51% stake in MNC Sky Vision (“MSKY”)
• BCAP acquired UOB Life Sun Assurance (MNC Life)
• BMTR increased its stake in MSKY to 75.4%
• The Company entered into the energy and natural resources business.
• MNC Securities, MNC Asset Management and MNC Finance Rebranding
• BCAP acquired Jamindo General Insurance (MNC Insurance)
• MSKY IPO • Rebranding into PT MNC Kapital Indonesia
• Rebranding BHIT into MNC Investama • BHIT acquired 26.23% stake in MNC Land. • Global Bond Issuance amounted to US$365 mn.
2014
• BCAP acquired 39.5% PT Bank ICB Bumiputera Tbk (PT Bank MNC Internasional Tbk)
• BCAP acquired PT Indo Finance Perkasa (MNC Leasing)
• MNC Play launched
2015
• Grand Launching of iNews
• Through MNCLand signed agreement with TRUMP and KLH (Korean Land & Housing)
• Launched misteraladin.com an online travel services.
2016
• Inauguration of MNC Studios in Kebon Jeruk & iNews Tower in Kebon Sirih
• Soft Launch of MeTube.id
2017
• GTV, iNews, MNC Vision, Okezone.com and The F Thing Rebranding • MNC Group Develop MNC Innovation Center • Inauguration of MNC Financial Services integrated branch offices in Surabaya, Pekanbaru and Medan. • Change of name of PT MNC Securities to PT MNC Sekuritas. • PT MNC Land Tbk (MNC Land) and Hyatt Hotels Corporation announced plans to bring the first Park Hyatt hotel in Indonesia in Jakarta.
http://www.misteraladin.com/
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Corporate Structure
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1. Corporate Overview
2. Media
3. Financial Services
4. Property
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PT Global Mediacom Tbk (MNC Media) Corporate Structure
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Global Mediacom Tbk
Media Nusantara Citra Tbk
Content and Advertising Based Media
PT MNC Vision Network Subscription Based Media
Online Media
IPTV/Fixed Broadband Broadband DTH Pay TV
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The Largest Integrated Media Company in Southeast Asia
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The Largest Content Producer
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RCTI, MNCTV, and GTV grow significantly outperforming the industry
20 exclusive channels on MNC Sky Vision to generate ad revenue
Integrated TV studios has been completed in 2015, is set to increase production capacity
and quality of programming with efficient costs
• 80% of our contents are local with more than 90% produced in-house • Gradually reducing foreign content, due to low margin and high cost • Targeting to increase local content to approximately 100% in 2018, which will lead to a decrease in
programming cost and higher EBITDA Margin
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The Largest & Leading Audience Share
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Content is the only way to capture audience share
and monetize advertising dollars
Indonesians love dramas and we broadcast many of
the top drama series
We have licensed popular International programs
such as Master Chef, Indonesian Idol and X Factor
More than 300,000 hours of content library and
increasing by more than 15,000 – 20,000 hours
annually
We also have 20 MNC branded Pay TV Channels.
These channels are integral to our content strategy
Creating the best content is our top priority
“Content is where I expect much of the real money will be made on the Internet, just as it was in broadcasting.
The television revolution that began half a century ago spawned a number of industries, including the manufacturing of TV
sets, but the long-term winners were those who used the medium to deliver information and entertainment.”
“Content is King” by Bill Gates in 1996
Source: Nielsen Prime-Time All Demographic 5+ Audience Share
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MNC Has The Best Talent Search Format Lineup
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Pioneering the international scale talent search programs in Indonesia, such as
Indonesian Idol - 8th season and running,
X-Factor Indonesia - 2nd season and running,
Rising Star Indonesia - The 1st Season with interactive talent search programs
MasterChef Indonesia - 3rd season and running
The Voice Indonesia – Aired February 2016 Our talent search programs are 3x more profitable than competing “In-house” dangdut singing competition
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MNC Dominates Top 20 Program as of 2017
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• New comedy drama series produced by MNC Pictures “Dunia Terbalik” performed very strong topping the program charts.
• 5 out of the Top 10 drama series for 2017 belongs to MNC
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Build-In Advertising Traditional TVC
Advertising Revenue Stream
Traditional TVC Commercial (15”
and 30” ) during commercial
break
Virtual ads
Built-in sponsorship and off air
events
Virtual Advertising on Drama Series (TOP)
Virtual Advertising on Variety Shows (Dashyat)
Revenue Streams - TV Advertising Revenue
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Digital Mobile/ Online Advertising Revenue
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Content Revenue
All the local content is sourced from the Group/s content library and produced in house
Library is monetized by selling to FTA, Pay-TV, and OTT in both Indonesia and Overseas
Revenue is generated from advertising and subscription
We are planning to supply 8 additional channel to Malaysia in Q2-2018
Pay TV
OTT Produced for
Indonesia and overseas
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Content Revenue (Including Digital Content)
Content business is growing, content revenue is derived not only from FTA,
but also from digital platforms in Indonesia and overseas
More than 300.000 hours of content library to sell
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All Contents Are Produced Using State-of-the Art Broadcasting Facilities
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MNC TV RCTI GTV
Entertainment Based Infrastructure Integrated News Center
INEWS
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PT MNC Vision Networks Corporate Structure
Global Mediacom Tbk
PT MNC Vision Network Subscription Based Media
IPTV/Fixed Broadband Broadband DTH Pay TV
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MNC Vision at a Glance
Notes 1 As of 31 Dec 17 2 For the period 2011-2017 3 Media Partners Asia 2017 Report 4 Weighted average period Jan-Dec 2017
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Notes 1 Up to 31 Dec 17 2 Monthly Average 2017 3 YTD Dec 2017
MNC Play at a Glance
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Superior Broadband and Pay TV Product Offerings
The Fastest Internet Connection
Light Speed Upload & Download
Modern Fiber with
Latest Wi-Fi Technologies
100% Fiber Optic
The Most Sophisticated Pay TV Offering You Will Not Miss Your Favourite Shows
Video On Demand Feature
172 SD and HD Channels
Television On Demand
Pause, Play and Rewind
for All Channels
Watch on Your Mobile Devices
Anytime and Anywhere
Android Set-Top-Box
Light Speed Upload
and Download 1
Gbps
Symmetrical Upload
and Download Speed
Network Ability up to
10 Gbps
Media Sharing Ready
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MNC Now at a Glance
Home TV Series Films
Offering the best of local entertainment anytime, anywhere...
More than 80 channels of live TV channels 7-day Catch-Up TV More than 4,000 hours of on-demand entertainment Free value-added service to eligible subscribers of MNC Play and MNC Vision Available on compatible Android and iOS devices
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MNC Media - Company Advantage
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The Media Industry
Still Growing
• Media penetration in Indonesia is still low.
• The percentage of ad spend in Indonesia is still low and is projected to
increase along with rising advertising demand
• Advertising rates in media in Indonesia is relatively inexpensive compared
with other countries, suggesting that the potential rate increase in the
future.
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Largest &
Integrated Media
Company
• The Company is the Largest Media Company in Indonesia with various
subsidiaries and integrated media, as well as having synergy in increasing
revenue.
• The growth of Company-owned media such as RCTI, MNCTV, and GTV is
higher than the average of the media industry
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Content with
Significant Market
Share
• Company broadcast the event with content that is highly appreciated by
the public to maintain market share and advertising revenue.
• The Company has an in-house production division to continue creating
events and content productively (over 15,000 content annually)
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Experienced
Management Team
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• The Company's management has the expertise and experience to
continue to develop the company's business
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1. Corporate Overview
2. Media
3. Financial Services
4. Property
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PT MNC Kapital Indonesia Tbk (MNC Financial Services) Corporate Structure
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Improve market positioning of products Product cross selling Leverage on wider distribution network
Note : as of Sept 2017
Total assets (in Rp Bio)
11,338 3,170 652 826 52 494 481
Office network in Indonesia
72 45 15 96* 5 19* 18
* Including Point of Sales
Potential synergies through
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50%
24%
11%
6% 5%
3% 1%
48%
27%
5%
5%
1% 7% 7%
MNC Bank
MNC Finance
MNC Leasing
MNC Sekuritas
MNC AssetManagementMNC Insurance
11%
Sources of Revenue
Full Year 2016 9 Months 2017
Capitalizing on Distinctive Advantages
Strong Impact of the MNC Brand 1
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Synergies
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Managed by Professionals with a Proven Track Record
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Low Penetration Rates
Strategies
• Creating a one-stop financial service center (financial supermarket)
• Maximizing value creation & creating greater synergies amongst subsidiaries
• Developing an integrated online system (digitalization)
• Strengthening market penetrations
• Focusing on retail businesses
• Implementing better risk management, corporate governance & lowering acquisition cost as well as cost of funds
• Expanding our investments through unorganic means (mergers and acquisitions)
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Synergies
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Benefitting from the expansions of MNC Land Strong exposure for promotions of products & services Capitalizing on MNC Vision’s 2.5 million subscribers as
well as the client data base from MNC Shop and MNC Play
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1. Corporate Overview
2. Media
3. Financial Services
4. Property
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Business Profile
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A proven track record in managing various category of investment properties. Next, the Company is focusing on developing the following segments :
MNC Lido City, Integrated Lifestyle & Entertainment hub
MNC Bali Resort, Integrated Lifestyle & Entertainment hub
MNC City, Smart City in Jabodetabek area
Property Services General Properties (office building, high-rise residential,
upscale hotel)
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MNC LIDO CITY
WORLD-CLASS DESTINATION
FOR PEOPLE TO LIVE, WORK & PLAY
THE PRIDE OF
INDONESIA
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MNC Lido City – The Pride of Indonesia
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LIVE, WORK AND PLAY
• The premiere Lifestyles of Health and Sustainability (LOHAS) Community in Indonesia
• Total masterplan area of 3,000 ha with 2,000 ha of land in possession
• Business model : Development income and Recurring income
• Huge potential upside from land price as well as the project
PERFECT LOCATION • Located ~70 km away from Jakarta
and surrounded by 3 major provinces with over 60 million people in population
• At 600m above sea level, Lido enjoys a cooler climate year-round
• Set amidst lush tropical forests and spans over the valley of two majestic mountains lush environment
• Direct access (60 minutes) via Jagorawi – Ciawi – Cigombong toll road extension
• Convenient point-to-point travel via the existing railway system from Jakarta CBD
LIVE
WORK
PLAY
• State-of-the-art facilities providing highly efficient work infrastructures
• Featuring Indonesia’s first and largest world-class theme park
• Easy access to a large array of world class entertainment and activities for all ages at World-Class Theme Park Resort
POTENTIAL UPSIDE
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MNC Lido City – Established Cooperation
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SIGNING WITH THE TRUMP ORGANIZATION
• In August 2015, MNC Land signed an agreement with The Trump Organization to operate the luxury high-end components of Lido development
SIGNING WITH METALLURGICAL CORPORATION OF CHINA LTD. (MCC GROUP)
• On 17th June 2016, MNC Land signed an Engineering, Procurement and Construction Framework Agreement with MCC Group for the development of a world-class theme park resort in Lido
SIGNING WITH POSCO E&C
• On 9th November 2017, MNC Land signed an MoU with PT Posco E&C Indonesia for the construction development of MNC Lido City Phase 1 in Lido
SIGNING WITH MINISTRY OF ENVIRONMENT AND FORESTRY
• In October 2015, MNC Land signed an MoU with the Ministry of Environment and Forestry to jointly manage the National Park of Mount Gede Pangrango encompassing over 300 ha of tropical forest
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MNC Lido City – Strategic Location
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MNC Lido City is located ~70 km away from Central Jakarta. The site can be reached through Jagorawi Toll Road and the new Bogor-Ciawi-Sukabumi (Bocimi) toll road scheduled for completion in 2Q 2018.
LEGEND Operated Toll Road
Constructed Toll Road
Planned Toll Road
Strategically located to future major infrastructure development
Jakarta ±1.5- 2 hrs
75 km
Bogor ±0.5 hrs 25 km
Sukabumi ±1 hrs 45 km
Bandung ±3 hrs
130 km
Regional
MNC Lido City
Jabodetabek Metro Area
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MNC Lido City – Development Component
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MNC Bali Resort – Lifestyle Excellence
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Situated in the heart of Bali’s magnificent southwest coast, MNC Bali Resort sits in close proximity to some of Bali’s most famed attractions. The location is approximately 27 km or an hour drive from the Ngurah Rai International Airport.
The development is located in a spacious 106-hectare area in Tabanan, West Bali – one of the largest resort developments in Bali
A perfect location for luxury living that offers breathtaking views of the Indian Ocean and Tanah Lot, the most sacred temple in Bali, framed by a spectacular panorama of endless sea
Bali is consistently voted as one of the world’s best islands with the latest awards came from the DestinAsianReaders’ Choice Award (RCA) and Bali was voted as the Best Island in the World in 2017
In August 2015, MNC Land signed an agreement with The Trump Organization to manage the newly redesigned resort
The Government is planning to develop a new toll road from Kuta to Gilimanuk, passing by Tanah Lot
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MNC Smart City – Future Livable City
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MNC SMART City is the newest addition to the Company’s portfolio of Integrated Township
Developments in Indonesia. The ±3,000 ha site is located in Tangerang Regency, Banten, and is
envisioned as a truly integrated SMART City, that provides a wide range of development products
and is furthermore themed and differentiated by an Integrated Sports Facilities network; MNC Smart
City will be a true new benchmark for Integrated Live, Work and Play environment in Indonesia.
Located on the greater Jakarta area, the Project Site will have great access via planned Serpong-
Balaraja Toll Road as well as the existing commuter train line that connects directly to the Jakarta CBD
area.
The Company has secured the location permit of the 3,000 ha site.
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MNC Smart City – Location
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General Properties
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MNC Tower & Plaza MNC Financial Center BEI Building High End Building SINDO Building
Location Kebon Sirih,
Central Jakarta Kebon Sirih,
Central Jakarta Surabaya
Kebon Sirih, Central Jakarta
KH Wahid Hasyim, Central Jakarta
Owner PT GLD Property PT MNC Land Tbk PT Swarna Citra Sentosa PT GLD Property PT MNC Land Tbk
Land Area 17,850 sqm 4,222 sqm 1,424 sqm 4,062 sqm 1,064 sqm
Building Area
80,200 sqm 24,450 sqm 12,039 sqm 5,937 sqm 5,127 sqm
Storey
29 stories (MNC Tower)
2 stories (MNC Plaza)
22 stories 12 stories 5 stories 8 stories
Occupancy 95% 100% 100% 95% 100%
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General Properties
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Wisma Indovision II Indovision Bali Building
Location Kebon Jeruk, West Jakarta
Diponegoro, Bali
Owner PT MNC Land Tbk PT Investasi Karya Gemilang
Land Area 3,297 sqm 2,730 sqm
Building Area 10,669 sqm 5,057 sqm
Storey 10 stories 4 stories
Occupancy 100% 86%
The Westin Resort & Convention Center
Location Nusa Dua, Bali
Owner PT Nusadua Graha
International
Land Area 9.3 ha
Capacity 433 rooms
Occupancy 79%
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General Properties – Ongoing Development
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One East Penthouse & Residences Collection/
Oakwood Hotel & Residence Park Hyatt Tower
Location Surabaya Central Jakarta
Architect Airmas Asri Aedas/Shimizu
Land Area 5,042 sqm 7,332 sqm
Building Area 74,433 sqm 109,533 sqm
Storey 33 stories
282 Strata Apt 144 Serviced Apt
39 stories
Completion 2Q2018 4Q2018
Targeted premium news companies, the tower will be the
new landmark of the city
The cutting edge of mixed-use development in Surabaya
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General Properties
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iNews Tower * MNC Studios *
Location Kebon Sirih,
Central Jakarta Kebon Jeruk, West Jakarta
Owner PT Media Nusantara Citra Tbk PT Media Nusantara Citra Tbk
Land Area 5,837 sqm 101,222 sqm
Building Area 58,507 sqm 113,062 sqm
Storey 16 stories 18 stories (GTV) 14 stories (RCTI)
18 stories (MNCTV)
Occupancy 100% 100%
* MNC Land is the project manager and building manager of the property.
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Highly Qualified and Experienced Management Team
Darma Putra President Director
President Director of PT MNC Investama Tbk since 2016 and President Commissioner of PT MNC Kapital Indonesia Tbk since 2016.
Previously held several important positions such as Commissioner of PT MNC Sekuritas and PT MNC Finance, and President Director of PT MNC Kapital Indonesia Tbk.
Previously worked at PT Marga Mandalasakti from 1997 to 2008, PT Bumi Raya Utama Group from 1991 to 1997 and PT Sun Hung Kai Securities Indonesia from 1990 – 1991.
Master of Business Administration (MBA) in Finance from University of Minnesota Minneapolis, USA and Bachelor of Science from Oregon State University Corvallis, Oregon, USA
Susanty Tjandra Sanusi Vice President Director & Independent Director
Vice President Director and Independent Director of PT MNC Investama Tbk since 2014. Previously worked at PT CIMB Niaga Tbk from 2010 to 2013, Citibank from 2000 – 2010, PT
Unibank Tbk from 1997 – 2000, and PT Bank Danamon Indonesia Tbk from 1996 – 1997. Diploma of Banking from Emile Woolf & Associates, London, UK in 1986.
Tien CFO
Director of PT MNC Investama Tbk since 2014 and Commissioner of PT MNC Kapital Indonesia Tbk since 2016.
Previously held several important positions such as Director of PT MNC Kapital Indonesia Tbk and Director of PT MNC Sekuritas.
Previously worked at PT Inti Salim Corpora from 1993 to 1997 Graduated from Tarumanegara University with Bachelor degree in Economics – Accounting in
1993.
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Highly Qualified and Experienced Management Team
Natalia Purnama Director
Director of PT MNC Investama Tbk since 2014. Previously held several important positions such as Senior Vice President, Treasury and
Corporate Finance Group CEO Office, PT MNC Investama Tbk and Investment Banking PT MNC Sekuritas.
Previously worked at PT HSBC Securities Indonesia from 1995 to 1996. Graduated from Trisakti University with Bachelor degree in Economics – Accounting in 1995
Jiohan Sebastian Director
Director of PT MNC Investama Tbk since 2014. Previously held important positions as a Senior Vice President Treasury & Investment of
MNC Group. Previously worked at PT Lippo Bank Tbk from 1994 to 1997. Master of Business Administration from University Santo Tomas in Manila, Philippines in
1994 and Bachelor of Commerce degree from Adventist University of the Philippines in Manila, Philippines in 1992 .
Henry Suparman Director
Director of PT MNC Investama Tbk since 2014, President Director of PT. Indonesia Transport & Infrastructure Tbk since 2016, President Director of PT. Media Nusantara Informasi Entertainment since 2017, President Director of PT. MNC Aladin Indonesia since 2017, President Director of MNC Radio Networks since 2017 and President Director of PT. BSR Indonesia since 2017.
Previously held several important positions such as Corporate Secretary dan Investor Relation Manager of PT MNC Investama Tbk and Corporate Finance Manager PT MNC Sekuritas.
Previously worked at PT. Bank Central Asia Tbk from 1997 to 2005. Graduated from Trisakti University with Bachelor degree in Industrial Engineering in 1996.
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Thank You
PT MNC Investama Tbk MNC Financial Center 21st Floor Jl. Kebon Sirih No. 21-27 Jakarta 10340, Indonesia Tel. +62-21 2970 9700 Fax. +62-21 3983 6886 Email: [email protected] www.mncgroup.com
http://www.mncgroup.com/