D2 Transit Terminal East Java, Indonesia / Investor search

1. OVERVIEW

Ø Area : 47.922 km2Ø Population : 41,437,769Ø Location :Ø Location :

Eastern part of Java Island

Second largest city inIndonesia.

2. INFRASTRUCTURE

a. Land Transportation : 3,338.39 km lengthØ Free way, rail way : 986,307 kmØ Suramadu Bridge : Length 5.43 km

Width 28.10 m

EAST JAVA, INDONESIA

Width 28.10 mb. Air Transportation :

Ø Juanda Domestic & International Airport, SidoarjoØ Loading & unloading of cargo capacity: 152,311,017 MT

c. Sea Transportation:Ø Tanjung Perak Domestic & International Seaport with 35

million TEUS power.

3. TERMINAL IN SURABAYA

EAST JAVA, INDONESIA

At least there are 3 (three)terminal use for container inSurabaya belong to TanjungPerak Port namely:Perak Port namely:Ø Terminal NilamØ Terminal Mirah andØ Terminal Jamrud.

Information on the above-mentioned container terminalin Surabaya showing that thebusiness activities in this areawas very active.

4. TWO OTHER PROFILE CONTINER TERMINAL

EAST JAVA, INDONESIA

5. POTENTIAL

Ø As the second largest city for commerce and industry aswell as known as the city of port, Surabaya, East Java haspotential for business and investment;

EAST JAVA, INDONESIA

Ø Establish Transit Terminal in East Java is one of verypotential business and investment to support domesticdemand especially for oil product.

Ø According to the information that Indonesia’s oil productioncan only meet 50% of domestic demand;

Ø AKR/ Royal Vopak support by the company of Netherland isplanning to build a Transit Terminal in Surabaya;

6. OPPORTUNITY

Ø Our location for Developing Transit Terminal is locatedat ±120 km far from Gersik, Surabaya, East Java;

Ø PT. Bahana Energy Nusantara (BEN) would like to

EAST JAVA, INDONESIA

Ø PT. Bahana Energy Nusantara (BEN) would like toseek kind assistance and cooperation from Investor inDeveloping Transit Terminal in East Java.

Ø In line of this, BEN offering to Investor to establish JointVenture Company with 100% foreign investment;

Ø The form and role of each party at the Joint VentureCompany will be discussed in due course.

PROJECT SUMMARY

7. PROJECT TITLE : TRANSIT TERMINAL

8. PROJECT LOCATION : EAST JAVA, INDONESIA

9. PROJECT OWNER : PT. BAHANA ENERGI NUSANTARA

10. CAPACITY TERMINAL : 250.000 KL

11. PROJECT DISCRIPTION :11. PROJECT DISCRIPTION :

Ø One of the efforts to increase the quality and quantity forproviding the distribution of oil products in the area of East Java,specially in the densely industrial populated area.

Ø The Project consisting of Transit Terminal which include jetty,loading and unloading systems, storage tanks for HSD-D2 andfuel oil.

12.SCOPE OF WORK OF THE PROJECT :a. Storage Tank capacity : 250.000 KL

Ø HSD-D2 products : 10 x 20.000 KL = 200.000 KLØ Fuel Oil products : 5 x 10.000 KL = 50.000 KL

b. Jetty Capacity :Ø For Loading : 5.000 – 12.500 DWTØ For Discharging : 35.000 – 100.000 DWTLoading & Unloading System

PROJECT SUMMARY

c. Loading & Unloading Systemd. Filling sheds : 20 bayse. Utilitas & Electricalf. Instrument Control System and Communicationg. Piping and manipol Systemh. Fire and Safety Installationi. Lands : 20 haj. Infrastructure include office and 11 staff housingk. Engineeringl. Project Managementm. Commissioningn. Trainingo. Operation

13. INVESMENT COST :÷ PROJECT : US$ 100.000.000,-

÷ WORKING CAPITAL : US$ 495.000.000,-/3 MONTHS

14.PROJECTED REVENUE :

PROJECT SUMMARY

14.PROJECTED REVENUE :The revenue sources are expected to come from :

÷ Rental fee for the facilities

÷ Fee from trading

15. OPERATING COST : Forcast around 10% from the revenue.

The maingroup contributed as operating cost

16. RECENT CONDITIONS :a. Demand and supply of domestic oil product.

The increase of oil products during 2000-2009 terms increased ineverage of ± 5.0% per year. Domestic production from refinery of42,3 million KL/year and the consumption of domestic oil productsis ± 70 million KL/year.

PROJECT SUMMARY

is ± 70 million KL/year.Now the import becomes : 27.7 million KL/year

a. This significant import can hardly be satisfied by the internationalmarket considering Indonesian ports can only accomadate 35.000DWT capacity of tanker.This worried by the fact that the imported products, which are frommidle east, Russia, Venezuella and Nigeria can only satisfydomestic demand while transported inlarge sized tankers.

17. PROBLEMS :a. To find a large scale oil supply is considerably difficult in the

International market.b. Limited capacity of the ports (35.000 DWT) in Indonesia.c. High demand oil products in Indonesiad. Limited capacity of the Terminal in Indonesia

PROJECT SUMMARY

d. Limited capacity of the Terminal in Indonesiae. The need for large size tankers (100.000 DWT) for efficiency

18. SOLUTION :To solve the above is install Transit Terminal in EastJava, which as the scope of work like the above (point b).The Project can be payed 3 – 4 years. We hope TheProject expected to be able to smoother an improved thefuel distribution in Indonesia.

19. CASH FLOW PROJECT

GENERAL ASSUMPTION : INCOME :

Monthly Volume : 250.000 KL Leasing : US$ 6,- /KL

First year : 3.000.000 KL Trading : US$ 5.50 / KL

Second year : 4.800.000 KL Total : US$ 11.50 / KL

PROJECT SUMMARY

Second year : 4.800.000 KL Total : US$ 11.50 / KL

Third year : 6.000.000 KL Invest : US$ 85.000.000

Corporate tax : 25% IDC 2.5% : US$ 2.125.000

IDC : 2.5%

Life time : 20 years Total CAPEX : US$ 87.125.000

Interest : 6% per years

Probolinggo, East Java Indonesia – Location D2 Transit TerminalCapital City Surabaya http://www.surabaya.go.id/

EAST JAVA, INDONESIA July 2013Hans Lothar KöhlHead Business Development - Mandiri Group – Jakarta Indonesia - Email: koehl.58@email.de