Infrastructure Development Indonesia What is Infrastructure Investments and the Benefit | Page 2

The Main Characteristics of Infrastructure
The infrastructure assets can provide the investors characteristics in strongly
differentiated set related to other asset classes. The main characteristics are such
as:
- The essential services provision
- The significant obstructions to entry and a market position that is generally
dominant
- Long duration for the assets over 30 years
- High costs upfront, low costs for the operational
- Stable cash flows in a long term, commonly in low volatility
- Contracts that are linked to inflation and also pricing that keep from inflation
effects on long term cash flows.
The Benefits for the Investors
- Interesting returns with adjustable risk
- Reliable returns linked to inflation
- Low volatility and correlation
- Long-term and stable yields
- Emanating with defensive characteristics
- The value enhancement potential
PT Sarana Multi Infrastruktur