JOIN’s Investment for
Urban Development Projects in Indonesia
September 5, 2017

“Indonesia - Japan Urban Development & Housing seminar 2017”

JOIN (Japan Overseas Infrastructure Investment
Corporation for Transport & UrbanDevelopment)

“Outline of JOIN”

11. What is JOIN?
JOIN, established in October 2014, is the “first” and “only” government-

private sponsored “equity provider” in Japan specialized in overseas
infrastructure investments, and;
 Supports host countries in building safeand reliable infrastructure through its
equity participation
 Works in collaboration with Japanesecompanies,
financial
institutions,governmental institutions (JBIC, JICA,NEXI, etc.) and ministries

CapabilityCapitalInvestment Capacity•US$300mn (JPY33bn)•Allocated approximately

as of July 2017

US$1bn (JPY 136bn) as•Owned 82% by J-

FY2017 annual budget

Government / 18% by J-

by J-Government

companies

HANDS-ON Function
Equity Investment jointly byJOIN

 Provides funding and bring Japaneseexpertise and high-end technology
solutions
toinfrastructure
projects(“HANDS-ON “)&Private
Companies

Spreading Safe and Reliable
Infrastructure Around the World
TechnologyTransfer

Human ResourceDevelopment2

2. JOIN’s Purpose<Japanese Government Priority Policy>

To promote Japan’s infrastructure system in the overseas markets

Targeted Amount of Infrastructure-related Orders

10 Trillion yen (2010)30 Trillion yen (2020)(Ministerial Council for Overseas Infrastructure Development)

JBIC
Loan / Equity / T.A. /Financial

Collaboration

J-CompaniesInstitutions
Master Plan / Policy Advice

Equity / O & M /Management

H.R. Development

Japan’s contribution to infrastructure projects in overseas countries
will lead to mutual economic growth33. Role and Function• JOINtoparticipate
ininfrastructure projects as an“equity provider”,• JOIN’s equity participation shallbe jointly with a Japanesecompany,• JOIN can not become thelargest
shareholder
amongJapanese investors,• Sponsor supports (parentalguarantee and/or loan) can beconsidered together with theother sponsors,

Equity Provider

Debt Provider
JICA /JBIC /NEXI /
BanksJapaneseCompanies

JOIN

Loan/
CoverEquity

Infrastructure Projects Company(SPC)
Concession& SupportEquity

EPC

Contractor

Host Governments

O&M

Operator

Local and/or ThirdCountries’ Companies

44. Focused Sectors•

JOIN enhances transportation and urban development projects overseas andfocuses on following projects including “green” and “brown”-field projects
High-Speed Railways

Urban Railways /Transport System

Ships / Offshore units

Airport Terminals

Toll Roads

Port Terminals

Urban Development

Logistics

55. Policy and Decision Making
Investment PolicyCooperating and sharing risks & responsibilities
with partners,

Providingcommitment
andattaining
commitments from partners to complete andexecute project(s),Not to become the largest shareholder among
Japanese investors,

Acting as a catalyst between public and private
sectors,

Facilitating
communication
stakeholders,Securing legal & environmental accountability,

Assuring reasonable profit with proper riskmanagement.

Utilizing Japan’s technologies and providing
meaningful expertise to host countries,

Promoting HR development in host countries,

Nurturing a functional infrastructure “system” sothat the projects will be “sustainable” in thelong-run,withtheDecision Making Process
Decision Making Process:
JOIN prioritizes discussions with thehost country’s governments and local
partners as well as field research inthe process of decision making.

Application forInvestment

Approval by theMinister, MLIT

Internal

Due

InvestmentAssessment

Diligence

Decision66. Projects in the Pipeline – 97 projects
 A total of 97 projects are currently in the pipeline (as of May 2017)
 Railroads: 27, Urban Development:20, Airports:15, Ports:11, Ships/Marine
Development:8, Roads/Bridges:7, Logistics: 7, Sewage System: 2

Europe, Central Asia, Russia: 10North, Central& SouthAmerica: 16

Southwest Asia: 10
ASEAN: 50

Middle East,Africa: 9

Oceania: 27

“Credentials”

87. Credentials - 1

Indonesia

Indonesia

Indonesia

Mixed-use Urban
Development Project in theSuburb of Jakarta

Jakarta Garden CityUrban Development Project

Jakarta Southeast Capital
Urban Development Project

JPY5.0 bn equity

JPY3.0 bn equity

Acted as Sponsor

Acted as Sponsor

JPY3.4 bn equity
Acted as Sponsor
Oct 2016

May 2017

Jul 2017

97. Credentials - 2

Indonesia

VietnamUSA

Cold Storage
Warehouse ProjectThi Vai International Port’s
Terminal Project

Texas High-Speed
Railway Project

JPY0.9 bn equity

JPY1.2 bn equity
JPY0.85 bn guarantee

JPY4.9 bn equity

Acted as Sponsor

Acted as Sponsor and Guarantor

Acted as Sponsor

Jan 2017

Oct 2015

Nov 2015

107. Credentials - 3

BrazilMyanmar

MyanmarUrban Passenger
Railway ProjectLandmark Project inCentral Yangon

Redevelopment ofthe Defence Services
Museum Project

JPY5.6 bn equity

JPY4.5 bn equity

JPY5.6 bn equity
JPY4.7 bn guarantee

Acted as Sponsor

Acted as Sponsor

Acted as Sponsor and Guarantor

Dec 2015

Jul 2016

Jul 2017

11

Case Study(Indonesia)

12Major metropolitan areas in ASEAN
Population & GDP per Capita (2014)

GDP per Capita (PPP 2014, 1,000US$)35[CELLRANGE],[バブル サイズ]

302520

Bubble Size: GDP ( Bil US$)[CELLRANGE],[バブル サイズ][CELLRANGE],[バブル サイズ]

1510[CELLRANGE],[バブル サイズ]

500510[CELLRANGE],[バブル サイズ]

152025303540Population (mil)（Data) “Global Metro Monitor”, Jan. 2015, BROOKINGS

13

1. BSD City Mixed-use Urban Development Project
Project Overview
Construction and operation of a mixed-use urban development in Bumi Serpong Damai City (“BSD City”),
the suburb of Jakarta,
JOIN invested with Mitsubishi Corporation (“MC”), Nishi-Nippon Railroad, Hanshin Electric Railway Co., Ltd.,
Keikyu Corporation, and PT Bumi Serpong Damai TBK. (“BSDE”).
JOIN’s investment: 3.4 billion JPY max.

•••Investment Scheme

Project Site Location

Japanese PartiesJOINMCNishitetsu

Soekarrno-Hatta Int’l AirportHanshin

Japan JVCKeikyu

Jakarta

SMLBSDE

Project SiteIndonesia JVC
Serpong St.

Highlights•••

Open Street Map Processed by MLIT

Conceptional drawing• Facility / scale: approx. 1,000 units of landed house and commercial facilities• Land size: approx. 19ha
• Japanese Parties’ investment: 10 billion JPY max. (Including JOIN’s investment: approx.
3.4 billion JPY max.)• Schedule: Construction estimated to start during 2017 in order

The first urban development project in Indonesia participated by Japanese railway companies
Know-how, technology and product-planning skills provided by Japanese companies
Providing Japanese railway companies’ expertise and know-how on bus operation to contribute to BSD
City’s TOD

142. Jakarta Garden City Urban Development Project
Project Overview•••

Construction and operation of a shopping mall, bus rotary, and greenery in Jakarta Garden City,
eastern suburb of Jakarta
JOIN invests jointly with AEON Mall Co., Ltd.
JOIN’s investment：5.0 billion JPY
Investment Scheme

Project Site Location
Conceptional drawing

Map of Indonesia(Japan)
AEON MallCo., Ltd.

JOINCentral Jakarta

20km

Equity Contribution

Project Site
PT AEON Mall
Indonesia Jakarta Garden

City Project

Cited from Open Street Map•

Facility: Shopping mall with approx. 200 specialty stores, bus rotary••and greeneryLand size: approx. 85,000 sqm.
Schedule: Construction is slated for completion in 2017 (plan)(Indonesia)

Highlights•••

Support the implementation of TOD in Jakarta, where the traffic congestion is severe, by establishing access topublic transportations like buses.
Encourage other facilities for housing, education, and medical care to join the project.
Provide evacuation area in the event of natural disasters, and spread the idea of Japanese disaster prevention.

153. Jakarta Southeast Capital Urban Development ProjectProject Overview• Investment to participate in the construction and operation of the mixed-use urban development on
about a 12 hectare area in the South East region of Jakarta jointly with Daiwa House Industry Co.,
Ltd. and Trivo Group.
• JOIN’s investment : 3.0 billion JPY
Investment Scheme
Daiwa House

Project Site Location

JOIN

EquityContribution

SPC set up by Japanese
project participants

Soekarno–Hatta
Int’l AirportCentralJakarta

TRIVOGroup
Project SiteEquity
Contribution

Local ProjectCompanyHighlights••

Source: Processed by JOIN using Open Street MapImage• Usage： Mixed Housing Complex（12 bldgs, approx. 5,000 units）, Commercial Facilities• Site Area： approx. 120,000 sqm.
• Total Floor Area： approx. 640,000 sqm.
• Completion Period： Within 2024 (plan)

The project adds a high value to the area through the formation of an abundant green environment andwaterfront, the installation of expressway ICs, reformation of surrounding roads and the connectivity to theLRT which is currently under construction.
Encourage the participation of Japanese companies for the first time in Indonesia and promotes Japanesehousing products and housing management service in Jakarta.
164. Cold Storage Warehouse Project
Project Overview• Construction and operation of a cold storage warehouse in Daiwa Manunggal Industrial Town,eastern suburb of Jakarta• JOIN to invest jointly with Kawanishi Warehouse Co., Ltd• JOIN’s investment：approx. 0.9 billion JPY
Investment Scheme

Project Site Location
Map of Indonesia(Japan)Kawanishi
Warehouse

Conceptional drawing

Makassar

JOINJakarta
SurabayaDenpasar

Cited from Ministry of Foreign Affairs of Japan

EquityContribution

54%

Local Project Company
PT. KAWANISHI
WAREHOUSEINDONESIA(Indonesia)

46%
JakartaHigh way

Project Site

Open Street Map Processed by MLIT

• Facility / scale• Freezer (-20C, 1 room)• Refrigerator (0-5C, 2 rooms)• Fixed Temperature (15-20C, 3 rooms)• Loading/ Unloading Bay (15 sets)• Total warehouse floor area: approx. 5,600 sqm.
• Total investment approx. 2,000 million JPY• Schedule: Construction is to be completed
during the 2nd half of 2017Highlights••The first cold storage warehouse project in Indonesia participated by a Japanese warehousecompany
Contribution to frozen and chilled foods market in Jakarta by introducing the Japanese efficient cold
storage management with high sanitary standards and optimum temperature control
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