Aceh Investment Profile 2015

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ACEH INVESTMENT PROFILE

ACEH INVESTMENT COORDINATING BOARD 2015


o dr. Zaini Abdullah GOVERNOR OF ACEH

2 } Aceh Investment Coordinating Board


FOREWORD BY GOVERNOR OF ACEH Aceh is your investment destination. There are four key strengths that make Aceh very promising: (1) friendly investment laws, (2) strategic geographical location, (3) abundant natural resources, and (4) human capital.

and (3) tourism. We already have excellent foundations in these strategic sectors. Coffee, patchouli, cocoa, palm oil, coconut are just a short list. Moreover, fisheries also have potential to have high for investment opportunities in Aceh.

Friendly investment laws are related to our status as a special province with autonomy in Indonesia. We have a wider authority to govern ourselves than other provinces in Indonesia. We also have privileges that allow us to make direct agreements with foreign institutions.

To accelerate investment in the region as well as to improve the investment climate, we are working on some important issues to resolve, such as de-regulation at licensing acceleration, security and better infrastructure. Hence, the new Aceh will be perfect for your future investment.

We consider investment as one of the key instruments to enhance the economic development in Aceh with the focus on three potential sectors: (1) agro industry, (2) energy and infrastructure

Last but not least, we welcome you to visit us and invest in amazing Aceh.

dr. Zaini Abdullah GOVERNOR OF ACEH

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FOREWORD BY CHAIRMAN OF ACEH INVESTMENT COORDINATING BOARD

We are happy to inform you that investment in Aceh increased greatly in recent years and is now in the eight rank in Indonesia for domestic investment about US $ 561,491,578 in 2014, whilst foreign direct investment was $31,541,856.

maritime program initiated by the President of the Republic of Indonesia, Jokowi, Aceh has been continuing to optimize its sea connectivity and improve its infrastructure build-up. One of our priorities is to increase exports and imports activities via ports in Aceh particularly Krueng Geukuh and Sabang Port. Hence, we welcome you to invest in developing and exploiting our maritime potential.

Our vision is to be one of the leading investment destinations in Indonesia, we will make sure that investors and potential investors get the best service and full assistance where ever needed. We thank you all for your continuous support to The three main sectors that Aceh and to trust Aceh as your favorite investment we offer to our investors are destination. agroindustry, energy and infrastructure and tourism. In line with “the sea toll road�

Ir. Iskandar, M.Sc Chairman of Aceh Investment Coordinating Board 4 } Aceh Investment Coordinating Board


Ir. Iskandar, M.Sc Chairman of Aceh Investment Coordinating Board

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Content FOREWORD BY GOVERNOR OF ACEH FOREWORD BY HEAD OF ACEH INVESTMENT COORDINATION BOARD 1. INTRODUCTION ~ 3

1.1 VISION AND MISSION ~ 10 1.2 ACEH AT A GLANCE ~ 12 1.2.1 AREA ~ 16 1.2.2 ADMINISTRATIVE REGIONS ~ 18 1.2.3 POPULATION ~ 20 1.2.4 MAN POWER/LABOR FORCE ~ 22

2. SPATIAL PLANNING ~ 25 3. INFRASTRUCTURE SUPPORT ~ 28 3.1 ROADS ~ 30 3.2 SEA PORTS ~ 32 3.3 AIRPORTS ~ 34 3.4 ENERGY ~ 36 3.5 WATER ~ 38

4. ECONOMIC PERFORMANCE ~ 41 5. EASES OF DOING BUSINESS IN ACEH ~ 48 6. DETAILED PLANS FOR AGRO INDUSTRIES ~ 55

6.1 DETAILED PLANS FOR AGROINDUSTRY 6.1.1 DETAILED PLANS FOR FOOD CROPS ~ 58 6.1.2 DETAILED PLANS FOR HORTICULTURE ~ 68 6.2. DETAILED PLANS FOR PLANTATION AND CROPS ~ 74 6.2.1. PALM OIL ~ 76 6.2.2. RUBBER ~ 86 6.2.3. CACAO ~ 88 6.2.4. COFFEE ~ 90 6.2.5. COCONUT ~ 94 6.3 DETAILED PLANS FOR ESSENTIAL OIL PRODUCTION ~ 98 6.3.1. PATCHOULI ~ 100 6.3.2. NUTMEG ~ 104 6.3.3. CITRONELLA ~ 106 6.4. DETAILED PLAN OF ACEH BEEF INDUSTRY DEVELOPMENT PROJECT ~ 108 6.4.1. ACEH BESAR BEEF INDUSTRY DEVELOPMENT PROJECT ~ 110 6.4.2. PIDIE BEEF INDUSTRY DEVELOPMENT PROJECT ~ 112 6.4.3. BENER MERIAH BEEF INDUSTRY DEVELOPMENT PROJECT ~ 114 6.3.4. ACEH TENGAH BEEF INDUSTRY DEVELOPMENT PROJECT ~ 116 6.3.5. NAGAN RAYA BEEF INDUSTRY DEVELOPMENT PROJECT ~ 118


6.5. DETAILED PLANS FOR FISHERIES ~ 120 6.5.1. LAMPULO INTERNATIONAL FISHING PORT ~ 122 6.5.2. IDI FISHING PORT ~ 124 6.5.3. SAWANG BA’U FISHING PORT IN SOUTH ACEH ~ 126 6.5.4. PEUDADA FISHING PORT IN BIREUEN ~ 128 6.5.5. SIMEULUE AQUACULTURE PROJECT ~ 130 6.5.6. SIMEULUE FISHING PORT ~ 132 6.5.7 SIMEULUE SEAWEED CULTURE PROJECT ~ 134

7. DETAILED PLANS FOR INFRASTRUCTURE AND ENERGY ~ 137 7.1 DETAILED PLANS FOR INSFRASTRUCTURE ~ 138 7.1.1. BANDA ACEH URBAN RAILWAY ~ 140 7.1.2. KRUENG GEUKUEH SEAPORT PROJECT ~ 142 7.1.3. KUALA LANGSA SEAPORT PROJECT ~ 144 7.2 DETAILED PLANS FOR ENERGY ~ 146 7.2.1 ELECTRICITY IN ACEH ~ 148 7.2.2 GEOTHERMAL PROJECTS ~ 154 7.2.3 HYDRO POWER PROJECTS ~ 156

8. DETAILED PLANS FOR TOURISM DEVELOPMENT ~ 160 8.1 BANDA ACEH TOURISM DEVELOPMENT PROJECT ~ 162 8.1.1 KRUENG ACEH RIVER WALK ~ 164 8.1.2 ULEE LHEUE BEACH ~ 166 8.1.3 BANDA ACEH MADANI EDUCATION CENTER ~ 168 8.2 SIMEULUE MARINE AND TOURISM DEVELOPMENT ~ 170 8.2.1 DIVING CENTERS ~ 172 8.2.2 SURFING CENTERS ~ 174

9. SABANG FREE PORT AND FREE TRADE ZONE COMPLEX~ 177 9.1 SABANG INTERNATIONAL WATER FRONT ~ 178 9.2 PASSENGER CRUISE TERMINAL ~ 180 9.3 YACHT MARINA & SUPPORTING FACILITIES ~ 182 9.4 DIVING CENTRES ~ 184 9.5 SEAPORT 186 9.6 INDUSTRIAL AND TRADING SECTOR ~ 188 9.7 BALOHAN INDUSTRIAL PARK ~ 190 9.8 FISHERIES SECTOR ~ 192

10 DETAILED PLANS FOR INDUSTRIAL ESTATES ~ 194

10.1 ACEH INDUSTRIAL ESTATE AT LADONG, ACEH BESAR ~ 196 10.2 LHOKSEUMAWE INDUSTRIAL ESTATE ~ 198

NEGATIVE INVESTMENT LAW & REGULATIONS~ 200


The Aceh Investment Coordinating Board is the primary coordination body for the promotion and facilitation of investments in Aceh, Indonesia. It is responsible for providing a full range of support and services to investors wanting to establish or expand businesses, including preparing macro investment planning, identifying and promoting local potential, providing full assistance with permits and licensing, assisting and monitoring the existing investments, as well as assisting coordination and partnerships with all related agencies and with all districts/cities across the province to provide the best possible service for all investors.

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1 Introduction

Photo: Aceh Tsunami Museum

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1.1

Vision and Mission Aceh becomes the leading investment destination in Indonesia

The Board’s main objective is to increase the number and value of Investments in Aceh Province. While the specific targets are: ¤¤ ¤¤ ¤¤ ¤¤ ¤¤ ¤¤ ¤¤

Provision of efficient, effective, transparent, and accountable services toward businesses and the wider community. Providing a wide range of data and information for investors. Assistance in providing licensing and permits for both domestic and foreign investors. Conducting effective promotional activities to attract both domestic and foreign investors. Establishing investment partnerships either with domestic or foreign investors. Promoting partnerships between small-scale businesses and cooperatives and large-scale businesses. Continuous liaison with investors in their operations with an ultimate aim of improving the investment environment and the ease of doing business.

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In line with the vision, the followings are missions to be accomplished.

ʠʠ Improving human resources in investment. ʠʠ Implementing integrated planning and control of investment amongst central government, provincial government, local governments and private sectors. ʠʠ Promoting Aceh’s new brand image as a leading investment destination. ʠʠ Providing support and services to investors wanting to establish or expand business.

Photo: Sultan Iskandar Muda International Airport

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1.2

Aceh at a Glance

THAILAND Phuket

Andaman Sea

Ma lac ca

Banda Aceh

Str ait

M

ACEH ean Oc ian Ind North Sumatera Province

N

100km

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Aceh Province is located between 01 58’37, 2” - 06004’33, 6” North Latitude and 94057’57, 6” - 98017’13, 2” East Longitude with average altitude of 125 meters a.s l with an extensive highland area above 1,000 m a.s.l. 0

MALAYSIA

Kuala Lumpur

It has 119 islands, 35 mountains, including several volcanoes, 73 rivers, and 1 large crater lake.

SINGAPORE

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ACEH, THE WEST GATE OF INDONESIA

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ACEH

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1.2.1

Area Topographically hilly with mountains, valleys, rivers, waterfalls, and narrow floodplain.

The total area of the territorial sea which extends to two hundred nautical miles measured from the coastline. Area of the Aceh Province is 5,677,081 ha; with over 2,270,080 ha of forests and around 800,401 ha of plantations while the industrial area is 3,928 ha.

5,677,081 ha Total Area

2,270,080 ha Forest

800,401 ha Plantation 3,928 ha. Industrial Area 16 } Aceh Investment Coordinating Board

N

100km


Land Use 2.21%

17.63%

0.07%

4.09%

3.49%

39.99%

7.00%

3.64%

2.45%

0.15%

125,439 ha Settlements

1,001,081 ha Plantations

3,928 ha Industry

232,023 ha Pasture

198,000 ha Mining

2,270,080 ha Forests

397,512 ha Rice fields

206,741 ha Inland water

139,049 ha Dry land farming

5.38%

305,624 ha Horticulture

8,433 ha Cleared Land

i

13.90% 789,171 ha Others

Total Area 5,677,081 ha Source: Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 2014

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1.2.2

Administrative Region Aceh province has undergone several administrative regional divisions and to date consists of 18 districts and 5 cities. In accordance with Aceh Qanun (law) No. 4 of 2003, Aceh Province has 289 subdistricts, 761 mukims (traditional divisions) and 6.464 villages.

Mukim

Village

Subdistrict

Mukim

Village

10

29

138

12

32

322

11

16

116

23

68

604

23

94

727

17

75

609

27

67

852

9

20

132

Subdistrict

Simeulue

West Aceh

Aceh Besar

Aceh Singkil

18

43

260

Pidie

South Aceh 16

51

385

Bireuen

Southeast Aceh

24

53

511

North Aceh

East Aceh

14

18

Aceh Tengah 18 } Aceh Investment Coordinating Board

295

Southwest Aceh


Aceh province consists of districts cities subdistricts, mukims , and villages.

18 5 289 761 6.464 Subdistrict

11

Mukim

Village

25

136

Gayo Lues

Mukim

Village

9

17

90

2

7

18

5

6

66

4

9

68

5

8

74

2013

289

761

6,464

2012

289

778

6.493

2011

284

755

6.450

Banda Aceh

12

27

213

Aceh Tamiang

Sabang 10

30

222

Nagan Raya

Langsa

9

21

172

Lhokseumawe

Aceh Jaya

10

11

232

Bener Meriah

Subulussalam

8

Pidie Jaya

Subdistrict

34

222

Source : Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 2014


1.2.3

Population

The population of Aceh in 2014 was estimated to be 5,437,120 people, consisting of 2,745,085 males and 2,692,035 females.

2,745,085 Males 2,692,035 Females

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5,437,120 People


POPULATION NUMBERS BY SEX, 2012-2014 District/City

Male

Female

Total

Simeulue

46.741

44.270

91.011

Aceh Singkil

69.350

67.140

136.490

South Aceh

120.859

120.124

240.983

Southeast Aceh

113.797

113.254

227.051

222.902

218.414

441.316

Aceh Tengah

114.153

110.714

224.867

West Aceh

112.547

106.822

219.369

Aceh Besar

208.877

197.952

406.829

Pidie

224.700

226.365

451.065

Bireuen

226.077

230.438

456.515

North Aceh

314.838

314.942

629.780

Southwest Aceh

77.263

75.529

152.792

Gayo Lues

50.809

50.854

101.663

Aceh Tamiang

15.594

147.416

300.010

Nagan Raya

83.938

82.181

166.119

Aceh Jaya

45.097

42.682

87.779

Bener Meriah

82.373

79.031

161.404

Pidie Jaya

78.762

79.844

158.606

Banda Aceh

133.133

124.450

257.583

Sabang

20.722

19.553

40.275

Langsa

100.482

97.444

197.926

Lhokseumawe

101.438

100.338

201.776

Subulussalam

43.633

42.278

85.911

2014

2.745.085

2.692.035

5.437.120

2013

2.397.200

2.394.700

4.791.900

2012

2.347.000

2.346.900

4.693.900

East Aceh

Source : Registration and Population Bureau of Aceh

Photo: Banda Aceh Traffic

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1.2.4

Man Power/Labor Force

The government of Aceh provides 20% of its annual budget for human capital, so they can be your partnerts in business

1,926,173 Labor force

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141,067 Job seekers


LABOR FORCE BY DISTRICT/CITY, 2011-2013 District/City

Labor Force

Job Seekers

Simeulue

32.068

10.360

Aceh Singkil

39.921

41.031

South Aceh

92.015

17.252

Southeast Aceh

75.211

8.634

163.282

618

Aceh Tengah

91.607

10.143

West Aceh

78.889

10.153

Aceh Besar

152.389

3.019

Pidie

183.512

3.615

Bireuen

181.580

1.406

North Aceh

236.109

1.936

Southwest Aceh

54.851

5.258

Gayo Lues

41.321

3.938

105.841

1.451

Nagan Raya

62.816

5.824

Aceh Jaya

34.938

2.200

Bener Meriah

67.055

477

Pidie Jaya

60.147

1.540

-

6.744

Sabang

13.020

3.367

Langsa

61.781

879

Lhokseumawe

70.733

639

Subulussalam

27.087

583

2013

1.926.173

141.067

2012

1.978.491

130.383

2011

2.001.259

133.859

East Aceh

Aceh Tamiang

Banda Aceh

Source : Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 2014

Photo: Mifa Private Jetti, Meulaboh

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2 Spatial Planning

Photo: Protected Forest, Sabang


1.2

Spatial Planning

Photo: Banda Aceh from Sky

Strategic Areas:

1. The Center of National Strategic Activities (PKSN) : Sabang, free port and free trade area. 2. National Activity Center : Lhokseumawe and greater area (PKN) 3. Provincial Capital City, Banda Aceh

2,934,602 Ha Cultivated and Living Area Those areas include production forests, community forests, agricultural lands, lands for fisheries, mining, industry, tourism, housing and other living functions.

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2,708,550 Ha Protected Areas and Conservation Areas Those areas include the following local protected areas, reserved and cultural heritage areas, national disaster-prone areas, areas for geology protection, and other provincial preservation areas.


Sabang

Banda Aceh

Lhokseumawe

Takengon Langsa Meulaboh

Cultivated Area Protected Area Conservation Area

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3 Infrastructure Support

Photo: Nagan Raya Steam Power Plant


3.1

Roads

Photo: Banda Aceh - Calang Highway

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Andaman Sea Ma lac ca

Banda Aceh

ean Oc ian Ind Provincial Road 1.813,33 Km

Str ait

North Sumatera Province

National Road 1.803,36 Km

Regencial Road 13.841,07 Km

N

N

100km Aceh Investment Profile

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3.1

Sea Ports

Photo: Malahayati Sea Port

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Ma lac ca

Andaman Sea Balohan-Sabang Malahayati - Aceh Besar

Str ait

Krueng Geukuh - North Aceh

Banda Aceh

Kuala Langsa

Calang Meulaboh

North Sumatera Province

Susoh Sinabang

ean Oc ian Ind

South Aceh Singkil

N

N

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3.3

Airports

Photo: Sultan Iskandar Muda International Airport

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Andaman Sea

Ma lac ca

Maimun Saleh Sabang International Airport Sultan Iskandar Muda

Banda Aceh

Str ait

Malikussaleh North Aceh Kuala Langsa

Cut Nyak Dhien Nagan Raya Kuala Batee Southwest Aceh

ean Oc ian Ind

Lasikin Sinabang

T. Cut Ali South Aceh

North Sumatera Province

Hamzah Fanshuri Singkil

N

N

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3.4

Energy

Capacity

Aceh-North Sumatra Interconnection 343 MW

PLTG Arun Lhokseumawe 200 MW

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Nagan Raya Steam Power Plant 2x110 MW

Peusangan Hydro Power Plant 88MW

Tariff/KWH IDR

USD

1,300 VA

1.352,00

0,11

2,200 VA

1.352,00

0,11

3,500 VA - 5,500 VA

1.496,05

0,12

6,600 VA above

1.496,05

0,12

6,600 VA - 200 KVA

1.496,05

0,12

More than 200 KVA

1.159,30

0,10

30,000 KVA

1.011,99

0,08

1 USD = IDR 12.000


Ma lac ca

Andaman Sea

Banda Aceh

Aceh North Sumatra Interconnection

Str ait

PLTG Arun Lhokseumawe Peusangan Hydro Power

Nagan Raya Steam Power

ean Oc ian Ind

North Sumatera Province

N

N

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3.5

Water

DISTRICT/CITY

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WATER SUPPLY COMPANY

Simeulue

PDAM Tirta Fulawan

Aceh Singkil

PDAM Tirta Singkil

South Aceh

PDAM Tirta Naga Tapaktuan

Southeast Aceh

PDAM Tirta Agara Kutacane

East Aceh

PDAM Tirta Peusada

Aceh Tengah

PDAM Tirta Tawar

West Aceh

PDAM Tirta Meulaboh

Aceh Besar

PDAM Tirta Mon Tala

Pidie

PDAM Tirta Mon Krueng Baro

Bireuen

PDAM Tirta Krueng Peusangan

North Aceh

PDAM Tirta Mon Pase

Southwest Aceh

PDAM Tirta

Gayo Lues

PDAM Tirta Sejuk

Aceh Tamiang

PDAM Tirta Tamiang

Aceh Jaya

BLUD SPAM Tirta Mon Mata

Bener Meriah

PDAM Tirta Beungi

Pidie Jaya

PDAM Tirta Krueng Meureudu

Banda Aceh

PDAM Tirta Daroy

Sabang

PDAM Tirta Aneuk Laot

Langsa

PDAM Tirta Keumeuneng

Lhokseumawe

PDAM Ie Sare Beurata

Source : Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 2014


Andaman Sea

Ma lac ca

Str ait

Banda Aceh

ean Oc ian Ind

North Sumatera Province

N

N

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4 Economic Performance

Photo: Indonesian Bank Building, Aceh


Economic Performance

5,51%

2,74% 4,84%

5,14%

4,18%

4,82%

2009 2010 2011 2012 2013 2014 Economic Growth Photo: Peusangan hydropowerplant project

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Inflation (%)

8,36

5,86

5,78

3,72

4 3,4

2009

2010

2011

2012

2013 100 108

2014

113 117 129 146

4,252.67 494,680.53

2,149,740.41

2014

Imports (ton)

2013

Exports (ton)

5,544.03

2012

451,918.48

6,274.39

2011

1,332,024.22

55.22

2010

1,288,051.43

2009

2,672,528.43

Minimum Wage

Rate USD 1 = IRD 12,000 Aceh Investment Profile

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FACTS AND FIGURES

The Big 5 Foreign Direct Investment Countries of Origin, 2014

Canada 718,015.73 US$

United Kingdom 610,000.00 US$

INVESTMENT REALIZATION Foreign Direct Investment

165,101,527

in US$

40,783,226

395 2009

26,133,215

5,085,052

2010

2011

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2012

31,541,856

2013

2014


France 539,244.52 US$

Malaysia 1,649,786.78 US$

Other Countries 1.380.952,38 US$

561,491,578

INVESTMENT REALIZATION Domestic Investment in US$

382,330,821

111,183,310

8,565,728

2009

13,127,198 4,407,581

2010

2011

2012

2013

2014 Aceh Investment Profile

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The Big 5 Foreign Direct Investment Districts/Cities, 2014

Sabang 2,142,857.14 US$ Banda Aceh 771,938.58 US$

Pidie 610,000.00 US$

West Aceh 747,167.90 US$

Southeast Aceh 1,333,333.33 US$

The Big 5 Foreign Direct Investment by Sectors, 2014 Mining 718,018.73 US$

Electricity, Gas & Water 360,055.46 US$

i Other Services 3,241,347.77 US$

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Trading & Reparation 533,843.34 US$

Food Crops & Plantations 316,453.45 US$


The Big 5 Domestic Investment Districts/Cities, 2014

Sabang 36.476.190,48 US$ Banda Aceh 7.619.047,62 US$

Lhokseumawe 113.428.571,43 US$

Aceh Tengah 7.428.571,43 US$

Singkil 8.666.666,67 US$

The Big 5 Domestic Investment by Sectors, 2014 Electricity, Gas & Water 7.580.952,38 US$

Trading and Service 8.380.952,38 US$

i Other Services 90.476.190,48 US$

Food Industry 16.952.380,95 US$

Chemical Industry & Pharmacy 1.714.285,71 US$ Aceh Investment Profile

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5 Ease of Doing Business in Aceh

Photo: Aceh Governor Residence


Photo: Sabang, Weh Island

REGULATIONS Law No 11 of 2006 for Aceh Governance. This law gives the Government of Aceh privileges to govern the province including control at economic development, health, education, safety, and public welfare.

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Law No. 37 of 2000 for Sabang Free Port and Free Trade Zone. Includes a wide range of facilities for doing business in Sabang, such as import duty and tax exemptions. The Sabang Management and Development Agency (BPKS) operates the zone and has authory to issue all licenses for investment in this area.

Presidential Regulation No. 11 of 2010 for Cooperation between the Government of Aceh and Foreign Institutions. This regulation gives the Government of Aceh authority to establish cooperation with foreign institutions, especially for economic development.


POTENTIAL INVESTORS INVESTMENT ACCELERATION TASK FORCE TEAM

INFORMATION, FACILITATION AND ASSISTANCE

LICENSING

One Stop Service for Local Licenses

PRINCIPLE LICENSE: BKPM/BPKS WORKING LICENCE: BKPM/BPKS LOC AL LICENCE: BP2T

CONSTRUCTION

> Security, convenience and law certainty > Land availability, labor, wages & incentive > Licensing administration > Policy, Regulation > Field Visit, etc

INVESTMENT EVALUATION AND CONTROLLING TASK FORCE TEAM FACILITATION AND ASSISTANCE

OPERATION AND BUSINESS EXPANSION

> Security, convenience and low certainty > Land dispute, labor dispute, etc > Regulation and licensing for business

NOTE: BKPM > Indonesian Investment Coordinating Board BPKS > Sabang Free Port and Free Trade Management Board BP2T > One Stop Service Office

INCENTIVES Providing incentives to investors in the form of: a. Reduction of Sectoral levy b. Stimulus funding, for selected for permits; Shall not exceed sectors; Stimulus funds 50% (fifty percent) of the (levy) awarded in the form of interest payable amount. subsidy shall not exceed 2 % (two percent) of the rate of interest paid for the purchase of machinery or equipment.

c.

Capital relief; in the form of equity and assets in accordance with the ability of the Government of Aceh .

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ONE STOP SERVICE FOR PERMITS AND LICENSES

Incomplete Submit Application Complete Application Received

Check for Completeness

Computerization

Technical Examination/ Field Observations

Technical Team Meeting for Validation/Consideration for Qualified License

Output: 1. Reject 2. Pending 3. Accept

Issue of Permit/License Application/Document Payment of Permit Fees into Bank

1. Time Given to Complete Application

Record by Administration

2. Complete the requirement

Permit signed on behalf of Government

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Print Permits Documents

3. Resubmit and Proceed Again


FOR INVESTMENT ONLY

BUSINESS LICENSING PROCEDURE (Based on Perka BKPM No. 5/2013)

INVESTOR APPLIES

PRINCIPLE LICENSE

BUSINESS LICENSE ISSUED

»» Operational Permit from Related Ministry »» Regional License

*) Business License is issued by the One Stop Service Office according to the authorization given. If there is NO authorization/ delegation, then the permit/license is issued by the relevant ministry

Proceed with Production

MECHANISM FOR COMPLAINTS FROM BUSINESSMEN IN ONE STOP SERVICE OFFICE (BP2T) TECHNICAL STAFF

COMPLAINING CUSTOMER

CUSTOMER SERVICE

Complaint cannot be solved by Customer Service

Complaint cannot be solved by Technical Staff Head of Information Service & Complaints

TECHNICAL TEAM

COMPLAINING CUSTOMER

HEAD OF ONE STOP SERVICE OFFICE OF ACEH PROVINCE

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6 Detailed Plans for Agro Industries

Photo: Palm Oil Industry, PT. Megalopolis, Aceh Jaya


6.1 Detailed Plans for Agro Industry

6.1.1 Detailed Plans for Food Crops 6.1.2 Detailed Plans for Horticulture

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6.1.1

Detailed Plan for Food Crops

PADDY Rice, the major food crop is particularly important for food security. The overall demand for rice in Indonesia currently reaches 39 million tons (http://www.statista.com), while Aceh domestic consumption is about 985.28 tons (2013). Aceh is a rice surplus province and with rice demand growing there is huge potential to expand paddy rice farming and processing to meet the domestic market demands. o The annual production of paddy rice was about 1,956,938 tons in 2013 o Produced by about 359,478 farmers throughout Aceh.

58 } Aceh Investment Coordinating Board


BIREUEN NORTH ACEH EAST ACEH

AREA AND PRODUCTION OF PADDY BY DISTRICT/CITY, 2013

ACEH BESAR PIDIE

District

SOUTHEAST ACEH

Simeulue

6,014

21,866

Aceh Singkil

1,255

4,980

South Aceh

14,655

75,563

Southeast Aceh

23,130

105,564

East Aceh

42,793

188,254

8,058

35,371

West Aceh

12,702

65,314

Aceh Besar

36,554

159,929

Pidie

44,160

204,429

Bireuen

38,426

207,755

North Aceh

69,286

277,749

Southwest Aceh

11,063

126,904

5,452

26,141

Aceh Tamiang

28,184

119,609

Nagan Raya

21,864

184,932

Aceh Jaya

9,664

42,495

Bener Meriah

2,191

10,754

14,718

70,893

61

439

Sabang

-

-

Langsa

3,199

13,579

Lhokseumawe

2,833

10,432

Subulussalam

1,625

3,986

2013

397,887

1,956,938

2012

438,855

1,788,738

2011

400,917

1,760,657

Aceh Tengah

Paddy rice is a key crop in Aceh, with plantings in 397,887 Ha

Planted Area Production (Ha) (Ton/Annum)

Gayo Lues

Pidie Jaya Banda Aceh

Source : Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 2014 Aceh Investment Profile

{ 59


Pidie Rice Milling Industry Project Pidie District is one of the leading rice producers in Aceh; its production has increased significantly. The main rice varieties planted are Ciherang and Inpari. Milling is a crucial post-harvest activity in the production of rice (http://www.ifc.org) and surplus rice production in Pidie is a key element to establish a rice milling industry. An existing rice milling plant was built in 2014 in Pidie to produce high quality rice as well as to create a competitive price in local and national market.

PROJECT PURPOSE Establishing the modern rice milling plant, capacity 8 ton/hour.

INVESTMENT ESTIMATE

USD 8,000,000

Malahayati Seaport PIDIE

Jeumpa Village

Spring Water

Sultan Iskandar Muda International Air port

INFRASTRUCTURE SUPPORT Sultan Iskandar Muda

60 } Aceh Investment Coordinating Board

Malahayati

River, Spring

Supported

by condition: Good by surface: Asphalt


Photo : Illustration

Land Area: 4 Ha Location: Jeumpa Village, Glumpang Minyeuk, Glumpang Tiga Sub District

Photo : Illustration

Land Status: Pidie District Government Land

Assets: »» Building (Aceh Provincial Government Owned) »» Equipment/Machine (Aceh Provincial Government Owned)

Aceh Investment Profile

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CORN

PROJECT PURPOSE

Establishing poultry feed factory (maize bran, maize germ, cattle feed, corn grits), which has drying machine (capacity 40 tons/hour) and warehouse (capacity 9000 tons)

INVESTMENT ESTIMATE

USD 12 Million

“There is a reason why corn [Zea mays] is the most-produced grain worldwide; it is involved in just about every aspect of our lives. Corn provides about 21 percent of human nutrition across the globe. Corn is a major animal feed. There are many other nonculinary uses for the grain as well; it is a key ingredient in ethanol, cosmetics, ink, glue, laundry starch, medicines and fabrics, just to name a few. It also can be the raw material for baskets and toys. In short, corn is an essential ingredient in our diets and also in our world� (source: en.wikipedia.org/wiki/ Maize). As a major producers of corn, we offer opportunities for potential investors to set up a feed industry in Aceh.

Photo : Illustration

62 } Aceh Investment Coordinating Board


SOUTH ACEH

SOUTHEAST ACEH

MAIZE HARVESTED AREA PURSUANT TO INTENSIFICATION BY DISTRICT/CITY (HA), 2013 District Simeulue

-

-

118

54

6,496

6,189

29,904

33,384

1,040

464

Aceh Tengah

101

43

West Aceh

276

66

Aceh Besar

1,054

72

514

346

Bireuen

1,149

568

North Aceh

1,337

280

276

21

Gayo Lues

1,415

914

Aceh Tamiang

1,289

648

Nagan Raya

415

249

Aceh Jaya

258

137

Bener Meriah

635

186

Pidie Jaya

323

125

1

-

Sabang

36

-

Langsa

3

2

Lhokseumawe

57

-

Subulussalam

463

351

2013

47,160

44,099

2012

51,788

43,675

2011

49,429

41,853

Aceh Singkil South Aceh Southeast Aceh East Aceh

Pidie

... it is a key ingredient in ethanol, cosmetics, ink, glue, laundry starch, medicines and fabrics, just to name a few.

Planted Area Harvested (Ha) Area (Ha)

Southwest Aceh

Banda Aceh

Aceh Investment Profile

{ 63


South Aceh Corn Industry Project Corn is one of the main commodities in South Aceh. Its production has increased to over years; in 2013, the planted area was 11,856 ha and it increased by 12, 331 ha in 2014, which resulted in an increase in the harvest volume. Total dry land in 2015 was ± 86.479,36 ha, spread over 18 sub districts in South Aceh and around ± 13.000 ha was used for corn plantation with target of production is 72.730 tons. Thus it is feasible to establish a cornprocessing industry in South Aceh

Corn dry-milling industry capacity 60 tons and warehouse 2 units INVESTMENT ESTIMATE

USD 83,333

Working Capital of both projects is

USD 166,666

PROJECT PURPOSE: Establishing corn dry-milling industry capacity 60 tons and poultry feed factory (maize bran, maize germ, cattle feed, corn grits) capacity 10 tons

TOTAL INVESTMENT USD 350,000

Land : 5 ha Location: Seuneubok Village, Pasie Raja Sub District Ownership: Regional Owned-Enterprises Fajar Selatan

Poultry feed factory capacity 10 tons INVESTMENT ESTIMATION

USD 100,000

64 } Aceh Investment Coordinating Board


Photo : Illustration

SOUTH ACEH

Photo : Illustration

Aceh Investment Profile

{ 65


SOYBEAN AREA AND PRODUCTION OF SOYBEAN BY DISTRICT/CITY, 2013 District

Planted Area Harvested (Ha) Area (Ha)

Simeulue

-

-

Aceh Singkil

1

-

South Aceh

96

73

-

-

5,365

3,232

407

339

West Aceh

28

21

Aceh Besar

855

134

Pidie

2,013

1,536

Bireuen

24,311

19,834

North Aceh

2,588

1,786

Southwest Aceh

15

6

Gayo Lues

12

17

2,162

552

Nagan Raya

219

218

Aceh Jaya

360

384

Bener Meriah

496

28

2,291

2,395

Banda Aceh

-

-

Sabang

7

-

Langsa

-

-

Lhokseumawe

19

-

Subulussalam

31

24

2013

41,276

30,579

2012

44,638

35,599

2011

41,009

35,370

Southeast Aceh East Aceh Aceh Tengah

Aceh Tamiang

Pidie Jaya

Source : Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 2014

66 } Aceh Investment Coordinating Board

PROJECT PURPOSE

Establishing poultry feed factory (cattle feed), which has drying machine (capacity 40 tons/hour) and warehouse (capacity 9000 tons)

INVESTMENT ESTIMATE

USD 12 Million


PIDIE JAYA PIDIE JAYA BIREUEN NORTH ACEH

41,276 Ha,

Soybean is a major source for vegetable protein and vegetable oil in the world.

30,579 tons.

Nationwide, soybean production in 2013 was 847,16000 tons on 554,132 ha of land. In Aceh, soybean was planted on approximately 41,276 ha in 2013 with production of 30,579 tons.

Photo : Illustration

Aceh Investment Profile

{ 67


6.1.2

Detailed Plan of Horticulture Bener Meriah Horticultures Project

A horticultural area is a geographic area that has similar ecosystems and united by common infrastructure facilities thus forming a region filled with various business activities including the provision of facilities for horticultural production, cultivation, post-harvest handling and processing, marketing, and support activities (Indonesia Directorate General of Horticulture). Its main purpose is to develop the well-being of society through the utilization of resources in a sustainable manner by integrating communal relations, the economy, and the environment in harmony.

Photo : Illustration

68 } Aceh Investment Coordinating Board


BENER MERIAH

POTENTIALS (tons) Horticulture

Areas Planted (Ha)

Production (Ton/Annum)

Vegetable Potatoes

620

81,080

Cabbages

235

55,789

Garlic Onions

10

1,260

Red onions

191

17,016

Tomato

285

228,945

Chilie Peppers

418

108,437

Carrots

166

22,063

Pineapples

7,165

8.60

Avocados

27,316

912

Oranges

30,593

316.80

4,838

10,190

Fruit

Passion fruit Source : Statistic of Bener Meriah (BPS) 2013

Aceh Investment Profile

{ 69


Lineung Buleun Horticulture Project

Malikussaleh Air Port

Krueng Geukuh Sea Port Lineung Buleun

PROJECT PURPOSE 造造 Establishing organic farm base on a production system that sustains the health of soils, ecosystem and people 造造 Selling the products in international markets

INVESTMENT ESTIMATE

USD 1,025,850

70 } Aceh Investment Coordinating Board

INFRASTRUCTURE SUPPORT : Malikussaleh Krueng Geukuh River, Spring Supported by condition: Moderate by surface: Gravel and Asphalth

BENER MERIAH


The Government of Bener Meriah District has selected Linueng Buleun Sub District as a horticultural development area. It is very potential for horticultural farms, as it is close to the new hydro power plant and has direct access to seaports on the east coast. The target is to supply organic fruits and vegetables for international markets. The very supportive and welcome local community ensures that investment in this area is very promising.

Photo : Lineung Buleun Potato Farm

Aceh Investment Profile

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Bener Meriah Potato Development Project Potato (Solanum tuberosum) is one of the world’s favorite foods and it is the fourth main food crop after paddy, wheat and corn. Today Indonesia is the biggest potato producer in Southeast Asia. The total area used for potatoes in Indonesia was 70.187 ha in 2013 with total production of 823.856 tons. One of the target areas for potato production is located in Bener Meriah District in Aceh Province.

Pintu Rime Gayo

Bener Kelipah

Permata Mesidah

Gajah Putih Timang Gajah Wih Pesam

72 } Aceh Investment Coordinating Board

Bukit

Bandar

Syiah Utama


Photo: Harvesting Potatos in Lineung Buleun, Bener Meriah

The Governments of Aceh and Bener Meriah District have made serious efforts to accelerate potato growing in Bener Meriah. To meet the demand for potatoes both from domestic and from overseas markets, we invite investors to invest in this potential sector through collaboration with local farmers using contract farming system.

AREAS PLANTED AND PRODUCTION OF POTATO IN BENER MERIAH DISTRICT Sub district Timang Gajah

Land rental per harvest (1 ha) = USD 333,33 Operational production costs = USD 3,120.42 Labor cost = USD 853,32 Total investment = USD 4,037.08 Profit = USD 3,526.25 B/C = 1.73

Production (Ton)

5

63

17

446

704

18,317

70

1,928

478

7,581

Permata

2,175

43,825

Mesidah

40

213

3,489

72,373

Wih Pesam Bukit

Estimates for potato development project (costs per hectare):

Planted Area (Ha)

Bandar Bener Kelipah

Total

Aceh Investment Profile

{ 73


6.2 Detailed Plans for Plantations 6.2.1 Palm Oil 6.2.2 Rubber 6.2.3 Cocoa 6.2.4 Coffee 6.2.5 Coconut

74 } Aceh Investment Coordinating Board


Aceh Investment Profile

{ 75


6.2.1

Palm Oil

PALM OIL PLANTED AREAS AND PRODUCTION BY DISTRICT / CITY IN 2013 District Simeulue

Production (Tons/ Annum)

Planted Area (Ha) 3,387

1,826

Aceh Singkil

55,441

397,134

South Aceh

10,209

34,910

7,454

20,551

60,592

278,550

-

-

West Aceh

26,144

206,240

Aceh Besar

1,282

407

77

16

5,181

22,197

North Aceh

24,953

115,477

Southwest Aceh

20,767

14,215

-

-

Aceh Tamiang

54,442

496,986

Nagan Raya

82,252

329,321

Aceh Jaya

16,714

19,348

Bener Meriah

1,300

117

767

1,090

Banda Aceh

-

-

Sabang

-

-

Langsa

399

825

Lhokseumawe

208

243

Subulussalam

21,701

49,225

2013

393,270

1,988,678

2012

368,650

5,070,555

2011

365,996

572,953

Southeast Aceh East Aceh Aceh Tengah

Pidie Bireuen

Gayo Lues

Pidie Jaya

Source : Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 2014

76 } Aceh Investment Coordinating Board

In 2010, production by smallholders was 185,265 tons. Government plantations production was 69,634 tons, and private plantation productions was 238,927 tons, total 493,826 tons.


Palm oil constitutes the largest plantation crop in Aceh by volume and by area and economic value. The palm oil industry has significant growth potential as a major source of supply for food and bio fuel products. The Government of Aceh has made several strategic plans for palm oil. 1. Create operational and policy support for sustainable palm oil among governments, private sector, NGOs, and smallholders. 2. Support palm oil public-private investment partnerships 3. Reduce threats to high conservation value forests and peat swamp ecosystems. 4. Create a provincial seed certification and distribution program 5. Improve supply chains and pricing transparency for palm oil production and processing.

Crude Palm Oil (CPO) is the main product of the palm oil industry. Aceh Tamiang, Aceh Singkil, Nagan Raya, and West Aceh have the highest CPO production that makes those areas suitable for processing industry.

Photo : Illustration

Aceh Investment Profile

{ 77


Aceh Tamiang CPO Processing Industry Aceh Tamiang is one of the major producers of palm oil in Aceh and has high potential for establishment of a CPO processing industry. Raw materials is fresh fruit bunches come from 51,677.22 ha of estates and 20,347 ha of smallholders spread over 11 sub districts in Aceh Tamiang. Based on market analysis, a CPO factory can store about 2,160 tons of fresh bunches and produce 530 tons/ day of palm oil.

PROJECT PURPOSE

Establishing 2 units of CPO milling plant capacity 30 tons/hour

INVESTMENT ESTIMATE

USD 2,000,000

o NPV: 15,790,000 USD o IRR: 30,19% o B/C: 1,88 o PAYBACK PERIOD: 5 YEARS ( Estimates December 2014 )

Kuala Langsa Sea Port ACEH TAMIANG

Seruway Area: 6 Ha Location: Seruway Land Status: Government Land

78 } Aceh Investment Coordinating Board


EXISTING CPO PROCESSING PLANTS: Tanjung Seumantoh, Pulau Tiga PTPN I, PT. Socfindo, PT. Padang Palma Permai, PT. Parasawita, PT. Mapoli Raya, PT. Sisirau, PT. Bahari Dwikencana Lestari, PT. Pati Sari, PT. Tri Agro Palma Tamiang, and CV Selaksa Windu) with production capacity 5 – 45 ton/ hour.

Photo: Palm Oil Processing Industry, PT. Megalopolis, Aceh Jaya

Aceh Investment Profile

{ 79


North Aceh CPO Processing Industry PROJECT PURPOSE

The total production of oil palm fruit in North Aceh in 2013 was 115,477; produced by smallholders (39,156 tons) and estates (76,321 tons). Government estates (PTPN-I) had 7,506 ha of oil palm plantations and own their CPO factory in Cok Girek with capacity 60 tons/hour or 168,000 tons/year. Smallholders supplied around 18,000 tons of fresh bunches/ year.

Malikussaleh Air Port

80 } Aceh Investment Coordinating Board

Establishing 2 units of CPO milling plant capacity 60 ton/hour

INVESTMENT ESTIMATE

USD 2,000,000

o NPV: 15,790,000 USD o IRR: 30,19% o B/C: 1,88 o PAYBACK PERIOD: 5 YEARS ( Estimation December 2014 )

Krueng Geukuh Sea Port Lhoksukon

NORTH ACEH


Area: 25 Ha Location: Lhoksukon Land Status: Government Land

Photo: Illustration

Aceh Investment Profile

{ 81


West Aceh Cooking Oil Processing Industry PROJECT PURPOSE

Establishing Cooking Oil Processing Industry The demand for cooking oil has been rising for many years. West Aceh produced 206,240 tons of crude palm oil (CPO) in 2013 and production is continuing to increase. CPO is the raw material for cooking oil, hence this large volume of CPO is a big reason to establish a palm oil cooking oil processing factory in West Aceh since the cooking oil is a value added product.

WEST ACEH

Beuragang

Land Area: 50 Ha Location: Beuregang Industrial Area Land Status: Government Land

82 } Aceh Investment Coordinating Board

INVESTMENT ESTIMATE

USD 13 million

o Net Present Value: USD 8,4 million o Return on Investment: 225 % o PAYBACK PERIOD: 7 YEARS


INFRASTRUCTURE SUPPORT : Cut Nyak Dhien Meulaboh River, Spring Nagan Raya Steam Power Plant by condition: Moderate by surface: Gravel and Alsphat

Photo: West Aceh, CPO processing industry

Aceh Investment Profile

{ 83


Aceh Tamiang Cooking Oil Processing Industry

Aceh Tamiang as the center of palm plantation in Aceh has 51,677,22 ha of estate plantations and about 20,347 ha of smallholders plantings with total production of 2,690,68 ton/day. Eleven palm oil mills are located in Karang Baru, Seuruway, Kejuruan Muda, and Rantau Sub Districts produce CPO with the capacity of 255/hour.

The supply of CPO has been sufficient; therefore it is very feasible to establish cooking oil Industry with the capacity 200 500 ton/CPO per day. The factory will be built on the area of 4-6 Ha, designed to include supported buildings, housing, Waste Water Treatment Plant (WWTP) and green belt.

Kuala Langsa Sea Port ACEH TAMIANG

Seruway Land Area Location Land Status

: 4-6 Ha : Green Industrial Park Aceh Tamiang Sereuway/Bendahara District : Private Ownership

INFRASTRUCTURE SUPPORT Malikussaleh

Kuala Langsa

84 } Aceh Investment Coordinating Board

River, Spring

Supported

by condition: Moderate by surface: Gravel and Land


Photo: Illustration

Development plan of Cooking Oil Industry (CPO Processing), with capacity 200 – 500 ton/day is divided into three as follows: Pre-Construction Phase »» Public Relations informing communities pre design of complex »» Obtaining Permit

Detailed Design »» Appoint construction contractor (Tender Process) »» Build road access »» Build Cooking Oil Factory »» Build Oil Storage Tanks »» Build Waste Water Treatment/ Recycling Plant »» Mobilize equipment for factory »» Build offices, housing and other support facilities »»

Post-Construction Phase »» Appoint factory director and engage staff »» Start operation of factory & WWT/RP

Aceh Investment Profile

{ 85


6.2.2

Rubber Natural rubber consists of suitable polymers of the organic compound isoprene with minor impurities of other organic compounds plus water. The rubber trees can grow to 15-25 meters in height with a large trunk and high branching. Currently, rubber is harvested mainly in the form of latex from rubber trees (Hevea Brasiliiensis), which was tapped from the cut bark of the plant. This used to produce other forms of rubber, such as crumb rubber and plank rubber. Natural rubber is used extensively in many applications and products, either alone or in combination with other materials such as wood on charcoal, wood or lumber for household appliances, furnitures, door and window profiles, hoses, belts, matting, flooring and dampeners (antivibration mounts) for the automotive industry, in the aircraft industry, textiles, gloves (medical, household and industrial) and toys. There are three (3) districts in Aceh with high rubber production that are suitable for processing industry, West Aceh, East Aceh, and Aceh Tamiang. The following table shows total production for each district. Existing Company: PT. Aceh Rubber Industry (Aceh Tamiang)

86 } Aceh Investment Coordinating Board

RUBBER PLANTED AREA AND PRODUCTION OF SMALLHOLDER & ESTATE ENTERPRISES BY DISTRICT/ CITY 2013 District / City

Planted Production Area (Ha) (Ton)

Simeulue

1,833

106

Aceh Singkil

3,660

2,332

South Aceh

1,219

271

Southeast Aceh

12,141

4,973

East Aceh

31,607

40,801

-

-

West Aceh

29,050

23,555

Aceh Besar

413

1

Pidie

140

-

3,363

1,383

12,454

6,890

1,027

136

190

18

Aceh Tamiang

22,640

896,361

Nagan Raya

12,358

3,356

Aceh Jaya

13,576

5,406

-

-

543

1

Banda Aceh

-

-

Sabang

-

-

Langsa

1,779

1,302

Lhokseumawe

18

16

Subulussalam

4,471

2,293

2013

152,481

989,201

2012

149,678

961,627

2011

144,291

87,407

Aceh Tengah

Bireuen North Aceh Southwest Aceh Gayo Lues

Bener Meriah Pidie Jaya

Source : Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 2014


Photo: PT. Aceh Rubber Industries, East Aceh

o Net Present Value: 234,618,007 USD o Internal Rate on Return: 53,81% o Benefit Cost ratio: 1,26 o Net Benefit Cost ratio: 3,739 o PAYBACK PERIOD: 6 YEARS AND 8 MONTHS

PROJECT PURPOSE

Establishing rubber-processing industries

INVESTMENT ESTIMATE

USD 21,161,739

Aceh Investment Profile

{ 87


6.2.3

Cacao

Indonesia is the third largest producer of cacao in the world after the Ivory Coast and Ghana. Aceh, one of the largest producers of cacao in Indonesia, have plantations spread almost in all districts, from Pidie in the eastern part of Aceh, to Simeulue Island in the outer edge of Aceh Province. Aceh cacao has been exported to many countries in the world. The statistics show that in 2010, Aceh exported 420,978.40 kg of cacao beans worth USD 1,166,080.30 (Aceh Industry and Trade Agency, 2012). The development strategy is to create a sustainable cacao industry. The upstream industry will be with the focus on boosting value added in the downstream sector. There are four districts in Aceh that are major cacao producers suitable for a cacao processing industry, Pidie Jaya, North Aceh, East Aceh and Southeast Aceh.

CACAO AREAS AND PRODUCTION BY DISTRICT/CITY 2011-2013

District/City Simeulue

Planted Area (Ha)

Production (ton)

1,598

119

Aceh Singkil

640

168

South Aceh

1,332

169

Southeast Aceh

19,994

8,843

East Aceh

12,484

6,684

2,322

786

West Aceh

809

317

Aceh Besar

3,302

426

10,160

2,674

Bireuen

6,671

2,559

North Aceh

9,662

3,288

Southwest Aceh

4,300

567

Gayo Lues

4,493

902

Aceh Tamiang

2,096

665

Nagan Raya

5,405

1,327

Aceh Jaya

1,292

159

Bener Meriah

1,053

332

13,484

4,375

-

-

Sabang

737

193

Langsa

301

126

Lhokseumawe

135

65

Subulussalam

826

143

2013

103,096

34,887

2012

100,490

37,120

2011

89,512

37,594

Aceh Tengah

Pidie

Pidie Jaya Banda Aceh

Source : Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 2014

88 } Aceh Investment Coordinating Board


PROJECT PURPOSE

o Net Present Value: 5,730,808.44 USD o Internal Rate of Return: 22,4% o Benefit Cost ratio: 1,69 o PAYBACK PERIOD: 6 YEARS AND 9 MONTHS

o Establishing cacao processing industries (paste, butter, chocolate powder) o Establishing packaging industry.

INVESTMENT ESTIMATE

USD 97 Million Photo: Cacao Plantation in Pidie Jaya

Aceh Investment Profile

{ 89


6.2.4

Coffee Gayo coffee is a typical coffee from the Gayo highlands, an area that covers Bener Meriah, Central Aceh and Gayo Lues Districts Gayo is the name of the highland people who live in this region. The majority of people in this area are coffee growers. Coffee planting started in 1908 and mainly is Arabica coffee. In fact, Arabica coffee production from the Gayo region is the largest on Asia.

Gayo coffee has been exported to many countries in the world. The statistics indicate that in 2012, Aceh exported coffee beans to 19 countries (South Korea, China, Japan, Taiwan, Hong Kong, Malaysia, Singapore, United State, Canada, New Zealand, Australia, Norway, British, Germany, Ireland). 8,798 tons valued at USD 52 million were exported. (Aceh Industry and Trade Agency, 2014).

Gayo coffee has gained some international certifications recognition for its excellent quality especially its organic coffee which is fair trade certified with Geographical Indication (GI). In particular, Gayo Arabica coffee got the highest score in the Indonesian Specialty Coffee Auction 2010 in Bali, which guarantees that it is the best coffee in the world.

COFFEE PLANTED AREA AND PRODUCTION OF SMALLHOLDER BY DISTRICT/CITY 2013 Robusta

Total Robusta & Arabika (Ton)

Arabika

Sub District

Farmers

Planted Area (Ha)

Production (Ton)

Planted Area (Ha)

Production (Tons)

Planted Area (Ha)

Production (Tons)

Aceh Tengah

2,315

763

48,300

27,079

50,615

27,842

33,000

Bener Meriah

1,795

808

49,496

15,000

51,291

15,808

29,000

-

-

4,770

1,145

4,770

1,145

40,000

9,572

1,569

-

-

9,572

1,569

11,846

2013

13,682

3,140

102,566

43,224

116,248

46,364

113,846

2012

11,367

2,377

54,266

16,145

65,633

18,522

113,846

2011

23,254

4,709

107,336

44,369

130,590

49,078

101,735

Gayo Lues Pidie

Source : Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 2014

90 } Aceh Investment Coordinating Board


8,798,532.84 kg

Aceh export volumes of coffee beans to 18 countries Three major producers of coffee in Aceh are Bener Meriah, Aceh Tengah and Gayo Lues. These areas are suitable for a big coffee processing industry.

Photo: Illustration

Aceh Investment Profile

{ 91


Aceh Tengah Coffee Processing Industry The demand for Gayo Coffee both in domestic and overseas market are very high. It is currently sold as green beans. As the government encourages to increase value added of the Aceh coffee, it is a big

INVESTMENT ESTIMATION

USD 6,258,377 o Establishing plant and Working Capital : US$ 3,333,333 o Operational Cost : US$ 2,925,043

opportunity to build a modern coffee processing industry. The popular culture of coffee consumption in Aceh is also a good prospect to establish Gayo instant coffee processing industry.

*(US$ 1 = IDR 12,000) o NPV = US$ 1,844,999 o IRR = 23% o BC = 1,6 o PAYBACK PERIOD: 6 YEARS

Krueng Geukuh Seaport ACEH TENGAH

Mulie Jadi

Area : 4 ha Location : Mulie Jadi Village, Silih Nara Sub District Land Status : Private Ownership

INFRASTRUCTURE SUPPORT Malikussaleh/ Rembele

Krueng Gekuh

92 } Aceh Investment Coordinating Board

River

Supported

by condition: Moderate by surface: Asphalt, Gravel and Land


PROJECT PURPOSE: ESTABLISHING INSTANT COFFEEE PROCESSING INDUSTRY Based on market observation, at present, at least 10 brands of instant coffee are sold in the market, which shows the growing of instant coffee consumption; hence the prospect is very promising. Investment estimation for establishing instant coffee processing industry with the capacity 30,000.000 sachets is: sale price at producer/industry level per sachet US $ 0.10 and premium quality US$ 0,04 per sachet.

The short supply chain within Aceh region overs an adventage for investment since the production cost is less than the average cost (assuming green bean price US$ 4,58/Kg). The price is more competitive and accordingly is able to create market segment both on market share and market space. Moreover, it is able to compete with other large scale national products.

Aceh Investment Profile

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6.2.5

Coconut

COCONUT PLANTED AREA AND PRODUCTION OF SMALLHOLDER BY DISTRICT/CITY 2013 District/City

Planted Area (Ha)

Production (Ton)

Simeulue

7,472

2,319

Aceh Singkil

5,230

2,232

South Aceh

6,523

2,961

760

369

6,797

6,012

103

13

West Aceh

2,832

1,459

Aceh Besar

14,351

8,025

Pidie

8,633

5,216

Bireuen

14,341

10,132

North Aceh

16,695

9,586

Southwest Aceh

2,605

900

Gayo Lues

450

81

Aceh Tamiang

586

242

Nagan Raya

1,351

658

Aceh Jaya

6,358

1,379

-

-

3,401

1,224

-

-

Sabang

2,645

1,718

Langsa

473

283

Lhokseumawe

631

355

Subulussalam

839

270

2013

103,076

55,434

2012

107,395

59,766

2011

106,542

62,926

Southeast Aceh East Aceh Central Aceh

Bener Meriah Pidie Jaya Banda Aceh

Source : Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 2014

94 } Aceh Investment Coordinating Board


Coconut industry can be developed by either farmer group level or larger scaled industry, for domestic and international market, such as young coconut products, coconut cocktail, coconut jam, baby food supplements, soft drinks, nata de coco, coconut water sauce, coconut flour, virgin coconut oil, coconut shell charcoal, briquette charcoal, liquid smoke of coconut shell, coconut wood, and organic fertilizer. While the exporting goods are such as copra, white copra, raw coconut oil, coconut cake, desiccated coconut, and active charcoal.

Photo: Illustration

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Aceh Besar Virgin Coconut Oil Processing Industries

PROJECT PURPOSE

Establishing Virgin Coconut Oil Processing Industry

INVESTMENT ESTIMATION

USD 87,286

Area Location Land Status

o Net Present Value: 15.5% o Internal Rate of Return: 57.39% o Benefit Cost ratio: 2.19

: 4 ha : Ladong Industrial Park : Government Ownership

Ladong Industrial Park Malahayati Seaport

ACEH BESAR

INFRASTRUCTURE SUPPORT Iskandar Muda International Air Port

Malahayati

96 } Aceh Investment Coordinating Board

River, Spring

Supported

by condition: Good by surface: Asphalt


Photo: Illustration

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6.3 Detailed Plans for Essential Oil Production 6.3.1 Patchouli 6.3.1 Nutmeg 6.3.3 Citronela

98 } Aceh Investment Coordinating Board


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6.3.1

Patchouli Patchouli (pogostemoncablinbenth) is a tropical evergreen shrub of the mint family. A valuable essential oil is distilled from its dried leaves. The oil is used in cosmetics and is particularly valuable in the global perfume industry and modern scented industrial products such as paper towels, laundry detergents, and air fresheners where the demand for it is still growing. Patchouli also can be used in antiseptic, pesticide, and as a fixative to bind other essential oils. Currently Indonesia is the world largest supplier of patchouli, supplying more than 80% of the world market. Patchouli is extensively cultivated in Aceh, Indonesia. Due to its high alcohol content and flavor, it is the Aceh variety of this tropical plant that is one of the most sought after (svet.charita.cz) The Geographical Indication Expert of the Indonesian Ministry of Agriculture, Dr. Riyaldi, affirmed that Aceh is very potential for the development of large-scale patchouli businesses, because of its supporting condition of land and its quality. According to a research, Aceh patchouli oil contains patchouli alcohol (yield) 2.5% to 3.3%, which makes it the best patchouli in the world (patchouli-aceh.com, 03/18/2012). As one of the major producers of patchouli, Aceh offers opportunities for potential investors to set up patchouli processing industries in the region.

100 } Aceh Investment Coordinating Board

PATCHOULI AREA AND PRODUCTION OF SMALLHOLDER BY DISTRICT/CITY, 2013 District/City Simeulue

Planted Area (Ha)

Production (Ton) -

-

Aceh Singkil

40

70

South Aceh

202

240

Southeast Aceh

634

950

-

-

Aceh Tengah

23

100

West Aceh

20

276

Aceh Besar

118

70

8

42

36

48

North Aceh

132

170

Southwest Aceh

42

450

863

1,250

Aceh Tamiang

3

8

Nagan Raya

7

86

500

572

Bener Meriah

-

-

Pidie Jaya

3

8

Banda Aceh

-

-

Sabang

-

-

Langsa

-

-

Lhokseumawe

-

-

Subulussalam

19

28

2013

2,650

4,368

2012

5,300

8,736

2011

10,560

17,402

East Aceh

Pidie Bireuen

Gayo Lues

Aceh Jaya

Source : Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 2014


According to a research, Aceh patchouli oil contains patchouli alcohol (yield) 2.5% to 3.3%, which makes it the best patchouli in the world

Aceh produces the best patchouli in the world. The main production areas are Aceh Jaya, South Aceh, Southwest Aceh and Gayo Lues Districts, which are suitable for large-scale processing industries. The following table shows the total production for each district.

Photo: Illustration

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Aceh Jaya Patchouli Processing Industry Aceh Jaya as one of the main patchouli producers in Aceh has 501 ha of patchouli plantations with total production 36,39 tons/day. The Government of Aceh Jaya District has encouraged the increased high quality patchouli production volume to support the

ACEH JAYA

Calang Sea Port

Panga

Land Area : 38 Ha Location : Panga Sub District Land Status : Private Ownership

102 } Aceh Investment Coordinating Board

establishment of patchouli processing industry. The centre of patchouli planted areas in Aceh Jaya is Panga (65 ha), Jaya (24 ha), Indra Jaya (20 ha), Sampoiniet (35 ha), Darul Hikmah (45 ha), Setia Bakti (66 ha), Krueng Sabee (105 ha), Pasie Raya (and Teunom Sub Districts. There is a potential to develop another 315 ha of land in this area.


Photo: Illustration

INFRASTRUCTURE SUPPORT Cut Nyak Dhien/ Panga Air Stripe Calang River Supported by condition: Moderate

PROJECT PURPOSE

Establishing patchouli processing industries

INVESTMENT ESTIMATION

USD 1,103,333

o NPV = US$ 3,131.246 o IRR = 64.22 % o PAYBACK PERIOD: 2 YEARS

Aceh Investment Profile

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6.3.2

Nutmeg Nutmeg tree is native to Indonesia, which is the world’s largest producer, contributing about 75% of the world’s supply. This spice is popular for its health benefit as it contains antioxidant and disease-preventing phytochemicals. Its distinctive and aromatic flavor is also used for culinary. The district of South Aceh is one of the nation’s main producers of nutmeg. The cultivation of nutmeg continues to be important in the district. Today, nine of the 16 sub districts in South Aceh grow nutmeg, producing several different products including sugared candies and syrup. (source: http://www.tradeforum.org)

NUTMEG AREA AND PRODUCTION OF SMALLHOLDER BY DISTRICT/CITY District/City Simeulue

Planted Area (Ha)

Production (ton)

1,431

62

124

13

15,230

5,906

43

8

East Aceh

1

-

Aceh Tengah

3

1

West Aceh

64

13

Aceh Besar

328

45

Pidie

109

38

Bireuen

147

28

North Aceh

148

28

3,119

245

Gayo Lues

-

-

Aceh Tamiang

-

-

Nagan Raya

121

33

Aceh Jaya

173

18

Bener Meriah

12

3

Pidie Jaya

17

3

-

-

Sabang

34

7

Langsa

-

-

Lhokseumawe

-

-

Subulussalam

-

Aceh Singkil South Aceh Southeast Aceh

Southwest Aceh

Banda Aceh

2013

21,104

6,451

2012

21,031

5,790

2011

21,522

5,261

Source : Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 2014

104 } Aceh Investment Coordinating Board


Photo: Illustration

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6.3.3

Citronella Citronella (Cymbopogon nardus L) is a type of grass with narrow, long leaves and grows to 200 – 1000 m. It produces natural essential oil, namely citronella oil. The main components of citronella oil are citronellal and geraniol, which respectively have unique fragrance. This aromatic oil is mostly used in soaps, cosmetics, perfume, flavoring and pharmacy industries (http://thakshana.nsf.ac.lk/ slstic/NA-238/NA_238.pdf). Gayo Lues Regency is one of the main producers of citronella oil in Aceh, centered in seven sub districts; Blang Jerango, Kutepanyang, Dabun Gelang, Blang Kejeren, Pantan Cuaca. Trangun and Tripa Jaya. More than 8500 ha of land are used for citronella and the overall of land production was 400 kg/ha in 2014 (insetgalus.com).

Project Purpose: Gayo Lues Citronella Processing Industry Area (Ha)

Production (ton)

Kuta Panjang

2,122

271,448

Blangjerango

3,712

477

Blangkejeren

1,950

248

Putri Betung

-

-

Dabun Gelang

2,364

302,376

Blang Pegayon

1,254

159,186

Pining

1,046

132,354

Rikit Gaib

2,069

265,611

Pantan Cuaca

1,454

185,631

Teragun

980

124,485

Tripe Jaya

262

31,218

17,213.00

1,473,034

SUB DISTRICT

TOTAL

106 } Aceh Investment Coordinating Board


Photo: Illustration

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6.4 Detailed Plan of Aceh Beef Industry Development Project 6.4.1 Aceh Besar Beef Industry Development Project 6.4.2 Pidie Beef Industry Development Project 6.4.3 Bener Meriah Beef Industry Development Project 6.4.4 Aceh Tengah Beef Industry Development Project 6.4.5 Nagan Raya Beef Industry Development Project

108 } Aceh Investment Coordinating Board


The area suitable for livestock grazing in Aceh is 1,5 ha. This very large area is suitable for grazing, integrated with crops and plantations. The project involves both breeding and fattening. The main activities in this project are building irrigation and buying hay equipment, construction of infrastructure, construction of animal feedlots, breeding and fattening cattle. Strategy for Aceh beef Development project includes: develop a nucleusplasma structure for the developing a beef herd in Aceh, establish system for management of mature breeding cows (grazing or feedlot), establish a beef finishing unit (feedlot) in each district with halal beef processing and meat distribution. Targeted for initial development: Aceh Besar, Pidie, Bener Meriah, Central Aceh and Nagan Raya Regency.

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6.4.1

Aceh Besar Beef Industry Developement Project

ACEH BESAR

Krueng Aceh Kuta Malaka Blang Ubo-ubo

ACEH BESAR

Cot Sirebee

INFRASTRUCTURE SUPPORT Sultan Iskandar Muda Air Port

Malahayati

SUITABLE FOR: ¤¤ Kuta Malaka - Major Feedlot for Nucleus Herd ¤¤ Krueng Aceh- Traditional Fattening ¤¤ Cot Sirebee, Jantho- Bull Depot ¤¤ Blang Ubo-Ubo- Large Scale Breeding for Nucleus Herd

110 } Aceh Investment Coordinating Board

River/Spring

Supported

Land Area Location

: 6,434 Ha : Krueng Aceh Kuta Malaka Blang Ubo-ubo

Land Status

: Goverment Land

by condition: Asphalt

SCHEME ¤¤ Nucleus : 605 Ha ¤¤ Plasma : 5,829 Ha


Photo: Tradisional Fattening in Krueng Aceh, Aceh Besar

INVESTMENT ESTIMATE

USD 33,147,500 ¤¤ ¤¤

Breeding Fattening

: 5,500 cows : 15,000 cows

¤¤ ¤¤

ROI : 29.64 % B/C : 1.23

PAYBACK PERIOD : 3 YEARS AND 5 MONTHS

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6.4.2

Pidie Beef Industry Development Project

PIDIE Biheu Village

PIDIE

INFRASTRUCTURE SUPPORT Sultan Iskandar Muda Air Port

SUITABLE FOR: 造造 Breeding

Malahayati

River/Spring

Land Area Location

: 500 Ha : Biheu Village, Muara Tiga District

Land Status

: Private Land

112 } Aceh Investment Coordinating Board

Supported

by condition: Asphalt

SCHEME 造造 Plasma System


Photo: Breeding Farm, Pidie

INVESTMENT ESTIMATE

USD 21,325,600 ¤¤ ¤¤

Breeding : 3,080 cows Fattening : 10,000 cows

¤¤ ¤¤

ROI : 32 % B/C : 1.23

PAYBACK PERIOD : 3 YEARS AND 5 MONTHS

Aceh Investment Profile

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6.4.3

Bener Meriah Beef Industry Development Project

BENER MERIAH

BENER MERIAH Perumpakan Benjadi

INFRASTRUCTURE SUPPORT Rembele & Malikussaleh

Krueng Gekuh

SUITABLE FOR: 造造 Breeding 造造 Central Feedlot

114 } Aceh Investment Coordinating Board

River/Spring

Supported

Land Area Location

: 4,155 Ha : Perumpakan Benjadi

Land Status

: Goverment Land

by condition: Asphalt


Photo: Breeding Farm, Bener Meriah

INVESTMENT ESTIMATE

USD 21,628,500 ¤¤ ¤¤

Breeding : 3,080 cows Fattening : 10,000 cows

¤¤ ¤¤

ROI : 32 % B/C : 1.23

PAYBACK PERIOD : 3 YEARS AND 2 MONTHS

Aceh Investment Profile

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6.4.4

Aceh Tengah Beef Industry Development Project

Karang Ampar

Jagong Jeget

ACEH TENGAH

ACEH TENGAH

INFRASTRUCTURE SUPPORT Rembele & Malikussaleh

Krueng Gekuh

SCHEME ¤¤ Nucleus : 780 Ha ¤¤ Plasma : 1,500 Ha

116 } Aceh Investment Coordinating Board

SUITABLE FOR: River/Spring Supported ¤¤ Fattening

Land Area Location Land Status

: 2,280 Ha : Jagong Jeget Karang Ampar : Private and Goverment Lands

by condition: Asphalt


Photo: Breeding Farm, Aceh Tengah

INVESTMENT ESTIMATION

USD 21,628,500 ¤¤ ¤¤

Breeding : 3,080 cows Fattening : 10,000 cows

¤¤ ¤¤

ROI : 32 % B/C : 1.23

PAYBACK PERIOD : 3 YEARS AND 2 MONTHS

Aceh Investment Profile

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6.4.5

Nagan Raya Beef Industry Development Project

NAGAN RAYA

NAGAN RAYA Blang Baroe Rambong

INFRASTRUCTURE SUPPORT Cut Nyak Dhien

SUITABLE FOR: ¤¤ Research Station ¤¤ Feedlot ¤¤ Breeding

PT. MDB Suak Patong & Kuala Tripa

River

Land Area Location

: 5,000 Ha : Blang Baroe Rambong

Land Status

: Aneuk Nanggroe Cooperatives

118 } Aceh Investment Coordinating Board

Supported

by condition: Asphalt

SCHEME ¤¤ Nucleus dan Plasma System


INVESTMENT ESTIMATION

USD 21,628,500 ¤¤ ¤¤

Breeding : 3,080 cows Fattening : 10,000 cows

¤¤ ¤¤

ROI : 32 % B/C : 1.23

PAYBACK PERIOD : 3 YEARS AND 2 MONTHS

Aceh Investment Profile

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6.5 Detailed Plans for Fisheries 6.5.1 Lampulo International Fishing Port 6.5.2 Idi Fishing Port in East Aceh 6.5.3 Sawang Ba’U Fishing Port in South Aceh 6.5.4 Peudada Fishing Port in Bireuen 6.5.5 Simeulue Aquaculture Project 6.5.6 Simeulue Fishing Port 6.5.7 Simeulue Seaweed Aquaculture Project 120 } Aceh Investment Coordinating Board


Aceh Investment Profile

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6.5.1

Lampulo International Fishing Port Lampulo International Fishing Port is strategically located facing the fishing grounds of Malacca Strait, has an area of 50 Ha and is classified as a Type A (Ocean Fisheries Port). The development of this area emphasizes improving of the fishery community welfare. The area is designed to have integrated fishery activities such as quality control, marketing services and industrial processing area.

70,771 Of fishermen in Aceh (2013) produced

148,765

tons of fish from fisheries in Aceh (2014)

Photo: Lampulo Fishing Port

122 } Aceh Investment Coordinating Board


PROJECT PURPOSE

Establishing fishery industries (catching, culturing, processing, preserving, storing, transporting, marketing or selling fish or maritime products).

INVESTMENT ESTIMATE

USD 200 MILLION

The Aceh Government invites investors to open businesses in Lampulo Port in the following sectors: 1. Fishing vessels with capacity 60 GT for long line fishing to operate in ZEE area of Aceh, with local labor 70% and foreign labor 30%. 2. Block ice factory capacity 6-80 ton/day 3. Frozen fish 4. Fish Canning factory 5. Fish processing factory (nuggets, sausages, and others). 6. Seaweed processing factory 7. Modern iodine-salt factory 8. Docking 9. Fiber industry

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6.5.2

Idi Fishing Port To support the development of a minapolitan (fishery city), the Aceh Timur government focuses on increasing the production of aquaculture and wild fishery. The products are primarily sold in domestic and international market. The production of wild fish catches from Idi Port is around 21,473.51 tons/annum and production from aquaculture is 10,485 tons/annum, including tilapia, catfish, milkfish, black tiger shrimp, white shrimp, fire shrimp and crabs.

Operational area of Idi fishing port is around 62,5 ha, supported by the facilities & infrastructure as follows: Facilities & Infrastructures Jetty

Capacity 1,600 M2

Break water

800 M3

Port pool

300 Ha

West-side discharge and load jetty

160 M2

East-side fish market

600 M2

West-side fish market

800 M2

Fish packing building

150 M2

Port management office

452 M2

Generator set housing

48 M2

Water tower

1 Unit

Port office

1 unit

West-side warehouse

8 unit

Warehouse forklift

1 unit

Workshop

1 unit

Culinary stall

22 unit

West-side mushalla (prayer room)

1 unit

Mess facilities

9 unit

Port car park

1 unit

Fuel station for fishing boats

2 unit

124 } Aceh Investment Coordinating Board

In response to the increase of production from both wild fish catches and aquaculture in Idi Port, the following are potential investments: 1. Block ice factory 2.000 - 2.000 blocks/day 2. Fish Canning factory 3. Promotion & research center for fisheries 4. Docking facilities 5. Central fish marketing and distribution centre


Photo: Kuala Idi Fishing Port

EAST ACEH Idi Fishing Port

EAST ACEH

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6.5.3

Sawang Ba’U Fishing Port in South Aceh Sawang Ba’u Fishing Port is located in Sawang Ba’u Village. It is the fish production center for South Aceh, with a total of 1.604 fishermen and 132 fishing boats. There are 60 boats 10 GT, and 78 non-motorized boats. The fishing gear used is purse saine and the main catches are skip jack and tuna. The facilities in Sawang Ba’u port are as follows:

FACILITIES Port Area

CAPACITY 1.5 ha

Quay

-

Jetty

-

Breakwater

400 m

Pool Port

1.2 ha

Revetment

150 m

Groin Fish market (TPI)

6x6m

Photo: Sawang Ba’u Fishing Port

The following have potential for investment to develop Sawang Ba’u Fishing Port: 1. Block ice factory capacity 10 ton/day 2. Fuel station for fishing boats 3. Cold storage 4. Docking facilities

The fish potential in Sawang Ba’u is very promising; the local government is expected to provide necessary facilities, to encorage the private sector to invest in a fish processing factory there.

Photo: Sawang Ba’u Fishing Port

126 } Aceh Investment Coordinating Board


Photo: Sawang Ba’u Fishing Port

SOUTH ACEH

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6.5.4

Peudada Fishing Port in Bireuen Bireuen District which located on the coast at the Malacca Strait is a strategic location for fisheries development. Besides abundant resources for aquaculture and wild fish catches, Bireuen district has the potentials for maritime development with a coastline 15 ±68 km long and a sea area around 1.511 km3. The potential for fisheries is about 34.600 ton/year, whilst the present exploitation is only ±18.000 ton/year or only about 47%. Maximum Sustainable Yield (MSY) used is around 25.600 ton/year. Peudada Fish Landing Port (PPI) is the centre for fisheries development in Bireuen District. Geographically, it is located at 5.204078 North Latitude and 96.583872 East Longitude. The investment potentials for the development of national Peudada Fish Landing Port (PPI) and Outer Ring Fishing Port Development (ORFoD) are as follows: »» »» »» »» »» »» »»

Fish Processing/Fish Canning Factory. Logistic supplies for Tuna Long-Line fishing boats Docking Facilities. Fuel station for fishermen. Cold Storage Facilities. Block Ice Factory. Warehouse for fish.

Location: Gampong Pulo, Peudada Sub District

INFRASTRUCTURE SUPPORT Rembele & Malikussaleh Krueng Gekuh

Land Status: Government Land River/Spring Supported Condition: Asphalt

128 } Aceh Investment Coordinating Board


Photo: Peudada Fishing Port Blue Print

BIREUEN Peudada Fishing Port

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6.5.5

Simeulue Aquaculture Project

GROUPER, SNAPPER AND LOBSTER Teluk Dalam and Sefelak Island are the focus areas for sustainable aquaculture development on Simeulue Island. The highest potential fish species for cultivation/growing on are grouper, snapper and lobster. The fish hatchery (Balai Benih Pantai Simeuleu) can supply seedling fish particularly grouper casino, barramundi and clownfish. As for lobsters, most are taken from the sea. Most fish production has been sold to Medan, North Sumatera via Susi Air, which then exported to Malaysia, Singapore, and other countries with net sales of lobster at USD 41.67/kg. In 2014, around 70 tons of fresh lobster was exported via Belawan Port, North Sumatera and 300 ton/year of grown-on grouper was exported to Hong Kong.

130 } Aceh Investment Coordinating Board

PROJECT PURPOSE Establishment 6,000 units of six holes high-density polyethylene (HDPE) floating fish cage

INVESTMENT ESTIMATE

USD 80,000,000


SIMEULUE

Photo: Simeulue Lobster

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6.5.6

Simeulue Fishing Port Apart from the huge fish catching area, in the Indian Ocean, Simeulue District also has high potential for marine culture, with about 58,000 ha of suitable sea areas including two large bays, Teluk Dalam and Sibigo Bay. The most common fish species found in Simeulue District are skip jack, mackerel, yellow fin tuna, tiger grouper, sunu grouper, lobster, crab, teripang, and seaweeds.

FACILITIES & INFRASTRUCTURES AT SINABANG BAY, FISH LANDING PORT (PPI) »» Wholesale market »» Jetty for ship to 80 GT »» Docking for ship repairs and other docking facilities for ship to 80 GT equiped with marine repairing small ship repair workshops. »» Cold storage (capacity 80 tons) »» State Electricity Company (PLN) 165 kW & backup generator capacity 186 kW »» Fresh water facilities »» Block Ice factory POTENTIAL INVESTMENT: 1. Block ice factory 2. Fish processing industries

132 } Aceh Investment Coordinating Board

Photo: Illustration


SIMEULUE

Photo: Simeulue Lobster

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6.5.7

Simeulue Seaweed Culture Project

Indonesia has a vision to be the biggest seaweed producer in 2015. The target is to produced 10 million tons of seaweed in the next ten years. According to Seaweed Commission of Indonesia, there are several key stregthent to develop seaweed in Indonesia as follow; »» The large coastline of Indonesia is very feasible for seaweed culture; »» Easy to develop in a short time (45 days); »» Labor intensive, high market demand; »» High value-added as it is raw material for food industry, pharmacy, cosmetics and others. Indonesian seaweed has contributed to around 500 end products around the world. (http:// mitrabisnissyariah.blogspot.com/2012/05/melirikpotensi-rumput-laut-aceh-budi.html)

Simeulue has been identified as a potential area for seaweed culture and processing. The investment opportunity is to develop seaweed culture system and post harvest management to produce high quality seaweed as raw material for industrial purpose.

134 } Aceh Investment Coordinating Board


PROJECT PURPOSE To develop seaweed culture in Simeulue INVESTMENT ESTIMATE

USD 3,073,083 R/C: 3.5 BEP: 3,411

Photo: Illustration

Aceh Investment Profile

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Photo: Krueng Geukuh Sea Port


7 Detailed Plans for Infrastructure and Energy


7.1 Detailed Plans for Insfrastructure (Railways & Seaports) 7.1.1 Banda Aceh Urban Railway 7.1.1 Krueng Geukueh Seaport Project 7.1.2 Kuala Langsa Seaport Project

138 } Aceh Investment Coordinating Board


Photo: Malahayati Sea Port

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7.1.1

Banda Aceh Urban Railway Aceh railway construction started in 1874 from Ulee Lheue and finished in 1917 at Pangkalan Susu (now in North Sumatera). The Aceh Railway was originally built for the benefit of the mobilization of military equipment with a track width of 750 mm and a length of 486 km. The construction costs reached 23 million Guiden. In 1974, the Aceh Railway stopped operating because of the high competition with other land transport and lack of spare parts. Post tsunami disaster in Aceh, the French Government granted Pre-Feasibility Study for Aceh railway conducted by SNCF (Société Nationale des Chemins de fer Français) in 2015. The result of the Pre-FS study includes application of normal gauge (1435 mm) for intercity tracks, development of Banda Aceh urban railway lines and development of commuter line Lhokseumawe - Bireun. According to Aceh Regional and Spatial Planning Article 18, railway development is to be focused on revitalization of the eastern coast and northern coastal railway line and on an urban railway for Banda Aceh. The growth of population in Aceh has been increasing significantly and reached 5,437,120 in 2014, including Banda Aceh as the capital of Aceh Province and the central of governmental as well as economics and education activities. Therefore, it leads to the increasing numbers of passengers and goods from Medan and districts/cities in Aceh to Banda Aceh. In response to this, it is very necessary to initiate the development of Banda Aceh urban railway as a way to provide better service to people. 140 } Aceh Investment Coordinating Board

PROPOSED RAIL ROUTE >

POTENTIAL SECTORS FOR INVESTMENT: 1. Study of Banda Aceh Urban Railway Development »» Feasibility Study (FS) »» Detailed Engineering Design (DED) »» Environmental Impact Assessment (EIA) 2. Provision of Technical Assistance for Railway Development in Aceh Province 3. Human Resources Development for Railway Construction, Operation and Maintenance »» Short courses »» Internship »» Bachelor/Master degrees


Banda Aceh Locomotive Monument

Aceh Investment Profile

{ 141


7.1.2

Krueng Geukueh Seaport Project

Krueng Geukueh Port is managed by PT Pelabuhan Indonesia I (Persero) and located at Tambon Baroh in Dewantara Sub District, North Aceh. Geographically, the port is at 05° 100 North Latitude and 97. 02.00 East Longitude. The Working Area of this Regional Port (DLKR) is ¹ 38 ha of land and around 10.941 Ha of water. The Region of Interest at this Ports Environment (DLKP) covers about 9.035 ha of water. Krueng Geukueh Port has the total water area approximately 900,000 m2 with a depth of 10 m. LWS. It has potential to serve large ships that enter the port PT. Arun LNG, PT. ASEAN Fertilizer, PT. Pupuk Iskandar Muda and PT. KKA. Commodities that have been exported through this port since 1994 include LNG, condensate, fertilizer, ammonia, paper and betel nuts. The major exports were oil and gas (LNG) exported by PT Arun.

142 } Aceh Investment Coordinating Board


Aceh Investment Profile

{ 143


7.1.3

Kuala Langsa Seaport Project

Kuala Langsa Port is a key for economic development in the eastern regions of Aceh (Langsa City, Aceh Tamiang District and East Aceh District, along with the central region of Aceh, Gayo Lues). As the gateway for exports and imports for the surrounding area, the Kuala Langsa port could cooperate with the much larger port, Belawan Port in North Sumatra, to be an alternative port for when Belawan Port is overloaded. The hinterland that support the Kuala Langsa covers an area of 14,805.24 km2, and is very rich with natural resources such as fisheries, plantations and farming (sea food, palm oil, rubber, cacao, areca, essential oils and coffee) plus energy & minerals (petroleum, natural gas, coal, lead, limestone and marble). Export of crops from the east of Aceh via Belawan Port in North Sumatera requires extra transport costs. To reduce these extra costs, it will be better to optimaze use of Kuala Langsa Port. Furthermore, the government has provided 225 ha of land around the port which is feasible as a centre for processing industries for major commodities such as Crude Palm Oil (CPO).

FACILITIES

UNIT

BERTH Public Berth

3000 M2

Liquid Bulk Terminal

150 M

ROAD Port Road

600 M

OPEN STORAGE Open Storage A

6000 M2

Open Storage B

4000 M2

OFFICE BUILDING Port Building

200 M2

Pos Komite Pemantau Penyelenggara Pemerintahan

40 M2

WAREHOUSE Warehouse 01

500 M2

Warehouse 02

300 M2

EQUIPMENT Forklift (Patria)

2 Unit

TYPE OF SERVICE

REMARK

Pilot Boat

Available

Tug Boat

Not Available

Freshwater

Available

Traffic Loading and Unloading

12-15 Ton/Hour

TKBM

Available

Port Operator

PT. Pelabuhan Indonesia I (Persero)

Public Service

144 } Aceh Investment Coordinating Board

EMKL

2

Freight Forwarder

2

Port State Control (PSC)

4


Photo: Illustration

EXISTING COMPANY - Langsa: Kenangan Passanger Ferry - PT. Pelayaran Alkan Abadi

PROJECT PURPOSE

Establishing Ro-Ro Freight Ferry Shipping

Frequent Route of PT. Pelayaran Alkan Abadi Loading Port

Destination Port

Ship Name

Tg. Priok, Jakarta

Malahayati, Aceh

Hirondex V.9

Malahayati, Aceh

Tg. Priok, Jakarta

Hirondex V.10

INVESTMENT ESTIMATE

USD 1,025,960 Aceh Investment Profile

{ 145


7.2 Detailed Plans for Energy

7.2.1 Electricity Supply In Aceh 7.2.2 Geothermal Project 7.2.3 Hydro Power Projects

146 } Aceh Investment Coordinating Board


Aceh Investment Profile

{ 147


7.2.1

Electricity Supply System In Aceh Supply Conditions

Isolated 20 kV 106 MW (28%)

Supply

Rp 2.988/kWh Customers

Grid 150 KV 269 MW (72%)

Prod. Cost

1.127.469 Average Selling Price in Aceh Rp 732/kWh

Tariffs

Electricity subsidy

Indonesia (2013) : Prod. Cost = Rp 1.347 / kWh | Av. Selling price = Rp 818 / kWh

CUSTOMER GROWTH

646 546

361

2013

391

2014

427

2015

148 } Aceh Investment Coordinating Board

463

2016

593

503

2017

2018

2019

2020


GEOTHERMAL 589.42 MWe

POTENTIAL ENERGY IN ACEH

Sabang/Jaboi 74,14 MWe SeulawahAgam 250,00 MWe Gayo Lesten 15,28 MWe

HYDROPOWER 1,482.50 MW Meureudu (RES) 17,0 m3/sec: 62,60 MW Teunom (RES) 41,6 m3/sec: 41,10 MW Jambo Aye (RES) 72.12 m3/sec: 192,00 MW Peusangan (RES) 13.57 m3/sec: 88,90 MW Remasan (RES) 10,30 m3/sec: 101,80 MW Peureulak (RES) 38,80 m3/sec: 20,80 MW Tampur-Tamiang (RES) 99,35 m3/sec: 427,00 MW Bidin (RES) 31,30 m3/sec: 98,60 MW Tawar/Bidin (RES) 7,40 m3/sec: 73,30 MW Tawar/Jambo Aye (RES) 3,20 m3/sec: 41,90 MW PantanDedalu (ROR) 3,20 m3/sec: 7,90 MW Lawe Alas (RES) 50,00 m3/sec: 268,10 MW Lawe Mamas (ROR) 10,80 m3/sec: 65,80 MW

COAL RESERVES Meureubo & Kaway XVI District Estimation: 571 Million Ton (‚ 3,500 Calorie) Reserves available: 1.82 Billion Ton

PEAK LOAD TREND ESTIMATES (MW)

1,127,469 1,196,438

2013

2014

2015

1,412,113

1,345,792

1,276,674

2016

2017

2018

2019

2020

Aceh Investment Profile

{ 149


Transmission Line Development Planning up to 2020 Ulee Kareng – Krueng Raya 2017 Jantho – Icomer 2014 PLTP Seulawah- Incomer 2021

Banda Aceh – Ulee Kareng 2017 Banda Aceh Lampisang 2019

Samalanga – Incomer 2017 Bireuen – Takengon 2016

Krueng Raya

Cot Trueng – Incomer 2015 Panton Labu – Incomer 2014

Sigli

Banda Aceh Lampisang

Bireuen Samalanga

Jantho

P Seulawah

Cot Trueng Lhokseumawe Panton Labu Idie Rayeuk

Lampisang – Calang 2019

PLTA Peusangan 2 – Takengon 2016

Calang

A

Calang – Meulaboh 2018 Sigli – Steam Powerplant 2012

Krueng Cut

PLTA Peusangan 1 – Peusangan 2 - 2016

Meulaboh

Meulaboh – Steam Power plant 2015

Langsa

Takengon

A

Nagan Raya Steam Powerplant

Blang Kejeren Blangpidie

Steam Powerplant – Blang Pidie 2015 Takengon – Blang Keujeuren 2017

Kuta Cane

Blang Pidie – Tapak Tuan 2017 Tapaktuan

Kutacane – Blang Keujeuren – 2018 Tapak Tuan – Subulussalam 2018 Subulussalam

Subulussalam – Singkil 2018 Existing 150 KV Planning 150 KV Planning 275 KV

Planning

P

Geothermal

Planning 275 KV

A

Hydropower

Existing

150 } Aceh Investment Coordinating Board

Singkil

Sidikalang – Subulussalam 2015


IPP in Progress Until 2014

Excess Power Mini Hydro (PLTMH) Kr. Kala Capacity : 0,045 MW Status: Operate

Excess Power Steam power plant (PLTU) EAS Capacity : 10 MW Status: Operate IPP Hydro Power Plant (PLTM) Kr. Isep Capacity : 10 MW Status: Construct COD : 2016

Excess Power Steam power plant (PLTU) PT. LCI/SAI Capacity : 5 MW Status: Approaching has been started since 2011, MoU up to 16 Nov 2014 Contract Agreement Process Excess Power Steam power (PLTU) Sinergi BUMN Capacity : 24 MW Status: Operate 10 MW in May 2014, Full operation in November 2014 Excess Power Mini hydro (PLTMH) Marpunge Capacity: 0,4 MW Status: Operate in April 2014 Excess Power PLTMH Wih Selah Capacity: 0,15 MW Status: Operate Excess Power Mini hydro (PLTMH) Rerebe Capacity : 0,175 MW Status: Operate

IPP PLTM Cuko II Capacity: 5,4 MW COD (Estimate): 2018 IPP PLTP Jaboi Capacity: 10-50 MW COD (Estimate): 2017

IPP PLTM Cuko I Capacity: 4,6 MW COD (Estimate): 2018 IPP PLTBiomas Capacity: 9,8 MW Status: PPA 4 Sept. 2013 COD (Estimate): 2016

IPP PLTMH Teunom Capacity: 10 MW COD (Estimate): 2007

IPP PLTGBS Alur Manis Capacity: 3,3 MW COD (Estimate): 2017

IPP PLTM Ketol Capacity: 9.9 MW COD (Estimate): 2019

IPP PLTM Lawe Mamas Capacity: 9,6 MW COD (Estimate): 2017

IPP PLTM Kerpap Capacity: 2.2 MW COD (Estimate): 2017

IPP PLTM Lawe Sikap Capacity: 6.9 MW COD (Estimate): 2017

IPP PLTM Bidin II Capacity: 3.1 MW COD (Estimate): 2018

IPP PLTM Lawe Gurah Capacity: 4.5 MW COD (Estimate): 2017

IPP PLTM Bidin I Capacity: 6.6 MW COD (Estimate): 2018 IPP PLTM Subulussalam Capacity: 9 MW COD (Estimate): 2018 Aceh Investment Profile

{ 151


Power Plant Development up to 2020 PLTGU Kr. Raya (2 x 50 MW)

PLTP Jaboi (10 MW) 2018-2019 PLTP Seulawah (55 MW) 2016 P

PLTM Teunom (2 x 5 MW) 2016

G

PLTA Teunom 1,2,3 (24 MW-2023) (288,2 MW – 2026) (102 MW – 2024)

A A

PLTA Woyla 2 (274MW) 2024

A

A A

PLTA Woyla 3 (43 MW) & Woyla 4 (9 MW) 2016

A A A U

PLTM Ketol (2 x 5 MW) 2018

PLTGKKA (18 MW) 2014 & Arun (80 MW) 2015

PLTA Peusangan 4 (2 x 42) 2018

A A

PLTG Arun (184 MW) 2015

PLTM Ilthabi (6.6 MW) PLTA Jambo Aye (160 MW)

PLTG Sumbagut 1 (250 MW) 2016

PLTM Lumut (10 MW) 2016 PLTM Kerpap (1,5 MW) 2015

G G

PLTA Ramasan 1 (171.6 MW) 2024

A

PLTA Tampur (428 MW) 2025

A

PLTBimass Tjg Semantoh (10 MW) 2015

A

A

A

PLTM Lawe Mamas (9,6 MW) 2017 Gedung Biara (1 MW) & PLTGBS Alur Manis (3 MW) 2016

A

A

PLTA Meulaboh 5 (43 MW) 2019 PLTA Meureubo 1 & 2 (82,1 MW) (2 x 30 MW) 2017

A

PLTA Seunagan 3 (31 MW) 2021

A

PLTM Lawe Sikap (6,99 MW) & PLMT Lawe Gurah (4,5 MW) 2017

A

A

PLTA Jambo Papeuen (95.2 MW) 2019

A

PLTU Meulaboh (2 x 110 MW) 2013 (1 x 200 MW) 2016 (1 x 200 MW) 2016

A

PLTA Sibubung (121.1 MW) 2021

PLTM Kr. Isep (2 x 5 MW) 2016

PLTA Kluet (141 MW) 2019

PLTA Tripa 3 & 4 (172,6 MW) (306,4 MW) 2024

PLTM Kombih (17.8 MW) 2016

PLTA Peusangan 1 & 2 (2 x 22.1 MW) (2 x 21,1 MW) 2016

ENERGY MIX IN 2014-2023 2014

152 } Aceh Investment Coordinating Board

2017


Demand & Supply Condition 150 kV Sumut-Aceh Power System Peak Load: 269 MW (71.6%) IPP: (179 MW) Self Generation (48 MW) SABANG Peak Load: 4.7 MW IPP: 4 MW Self Generation = 1.9 MW

TAKENGON Peak Load: 15.5 MW IPP: 9 MW Self Generation = 8.5 MW

CALANG PeakLoad: 4.85 MW IPP: 5 MW Self Generation = 1.8 MW

BLANGKEUJEUREN Peak Load: 3.4 MW IPP: 3 MW Self Generation = 4.3 MW

MEULABOH Peak Load: 31.6 MW IPP: 24 MW Self Generation = 18.6 MW

KUTACANE Peak Load: 10.4 MW IPP: 8 MW Self Generation = 5.6 MW

BLANGPIDIE Peak Load: 10.6 MW IPP: 4 MW Self Generation = 10.9 MW

SUBULUSSALAM Peak Load: 10.9 MW IPP: 10 MW Self Generation = 3.1 MW

TAPAKTUAN Peak Load: 4.5 MW IPP: 2 MW Self Generation = 3.7 MW KUTA FAJAR Peak Load: 4.5 MW IPP: 4 MW Self Generation = 1.4 MW SINABANG Peak Load: 4.2 MW IPP: 5 MW Self Generation = 4.1 MW

2020

Substation TL 150 kV

2023

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{ 153


7.2.2

Geothermal Projects The demand for global energy is expected to increase approximately around 50 percent by 2030. Fossil fuel as the main resource will last eventually for several decades and the change of market dynamics and the increase of energy cost have accelerated the development of renewable energy, which then enhances its status as one of the core energy. Geothermal and Power Operation (2008), Chevron, Jakarta. According to Energy and Mineral Resource Department, the potential of geothermal in Indonesia is proximately 27,000 megawatt, while Aceh has arround 1,115 megawatt. Geothermal potentials in Aceh spread in eight districts/cities with total 17 spots. Five spots of geothermal have been managed in various stages: pre survey, evaluation for survey request, designated working area, establishment of joint venture, and exploration. The central government has assigned the National Power Company (PLN) to build 5,000 Mw of energy in Aceh to fulfill the projected national demand of 35,000 Mw. Hance the potential for investment in energy sector is widely open.

INVESTMENT FEASIBILITY The Power for the district of Bener Meriah is supplied from the 150 KV transmission systems from North Sumatera interconnection system from North Sumatera. The power supply is only able to serve 207 villages (89,22%) of the total 232 villages. A total of 25 villages have not been served yet.

154 } Aceh Investment Coordinating Board

INVESTMENT ESTIMATE

USD 288,080,00

Photo: Illustration


GEOTHERMAL POWER PLANT PROJECT 2013-2026 Energy Potential (Mwe) N o

Objects

Regency/City

Coordinate

Resource (Mwe) Spec

Reserve (Mwe)

Hipo

Remark

Expec

1

Iboih

Sabang

LU 04°37' ; BT 96°45'

25

-

-

2

Lho Pria Laot

Sabang

LU 03°47' ; BT 97°41'

50

-

-

3

Jaboi Keuneukai

Sabang

LU 05°53' ; BT 95°14

-

-

4

Ie Seum-Krueng Raya

Aceh Besar

LU 05°29' ; BT 95°39'

-

63

Phase Exploration by 50 PT. Sabang Geothermal Energy Praparation to Establish Joint Venture Between 165 PT. Pertamina with Local Company

5

Seulawah Agam

Aceh Besar

LU 05°50' ; BT 95°18

-

-

6

Alur Canang

Pidie

LU 05°01' ; BT 95°55

25

-

-

7

Alue Long-Bangga

Pidie

LU 04°48' ; BT 96°48'

100

-

-

8

Tangse

Pidie

LU 04°56' ; BT 96°44'

25

-

Phase Evaluation of aplicationPreliminari - Survey PT. HitayBumi Energy by Directorat General EBTKE, KESDM

9

Rimba Raya

Bener Meriah

LU 03°28' ; BT 97°51'

100

-

-

10

Simpang Balik

Bener Meriah

LU 04°19' ; BT 97°53

100 Phase Work Area Designation PT. - JasaDaya Chevron by Directorat General EBTKE, KESDM

11

G. Geureudong

Aceh Tengah

LU 05°48' ; BT 95°19'

-

120

12

Silih Nara

Aceh Tengah

LU 04°37' ; BT 97°42'

100

-

-

13

Meranti

East Aceh

LU 05°05' ; BT 95°54'

25

-

-

14

Brawang Buaya

Aceh Tamiang

LU 05°08' ; BT 96°18'

25

-

-

15

Kafi

Gayo Luwes

25

-

Phase Evaluation of aplicationPreliminari - Survey PT. HitayBumi Energy by DirectoratJ enderal EBTKE, KESDM

16

Gunung Kembar

Gayo Luwes

LU 05°33' ; BT 95°33'

-

92

17

Dolok Perkirapan

Gayo Luwes

LU 04°42' BT 96°49'

25

-

-

625

275

215

TOTAL POTENTIALS = 1.115 Mwe

Aceh Investment Profile

{ 155


7.2.3

Hydro Power Plant The Ministry of Energy and Mineral Resources has identified Aceh province as one with renewable energy sources especially the hydropower geology, weather hydrology, and catchment areas consisting of mountains and rivers of small, medium and large scale with relatively static water levels and these have potential for hydropower.

Photo: Peusangan Hydropowerplant Project

156 } Aceh Investment Coordinating Board

The Energy and Mineral Resources Office and PT.PLN has conducted surveys and identified rivers with a potential for hydropower (PLTA) and Mini Hydro (PLTMH) spread in 9 districts which can produced around 3.89,4 MW.


INVESTMENT FEASIBILITY Establishing Irrigation for 19.50 Ha and Hydropower Plant 160 MW/580 MWH Existing Company: PT. Velcan Ilthubi Hydropower (Bener Meriah) • • PT. Aceh Hydropower (West Aceh) • PT. PLN Persero; Peusangan 1 & 2 (Aceh Tengah) • PT. Kamirzu (Gayo Lues, Aceh Tamiang, East Aceh)

NO 1

District/City North Aceh

Location

Capacity (MW)

Investment Estimation (Million USD)

Jambuaye-3

WhJambu Air

37.2

111.6

Jambuaye-5

Kr. Jambuaye

160.0

545.4

Project Name

Bidin/Jambuaye

Kr. Jambuaye

246.0

738

2

Gayo Lues

Ramasan-1

Kr. Ramasan

171.6

514.8

3

East Aceh

Peureulak

Kr. Peureulak

34.8

104.4

4

Aceh Tamiang

Tampur

W.Tampur

428.0

128.4

4

South Aceh

Jambo Papeun-2

Kr. Jambo Papeun

95.2

285.6

Kluet

Kr. Kluet

141.0

423

Sibubung 2

Kr. Sibubung

121.1

363,3

Tripa-3

Kr. Tripa

172.6

517.8

Ptripa-4

Kr. Tripa

306.4

919.2

Meureubo-1

Kr. Meulaboh

821.1

246.3

5 6

7

Nagan Raya West Aceh

Aceh Tengah

Meureubo-2

Kr. Meureubo

60.0

NA

Woyla-2

Kr. Woyla

274.0

822

Woyla-3

Kr. Woyla

43.0

NA

Woyla-4

Kr. Woyla

9.0

NA

Pameu

Kr. Pameu

160.6

481.8

Peusangan-1

Kr. Peusangan

44.2

270

Peusangan-2

Kr. Peusangan

42.2

NA

Peusangan-4

Kr. Peusangan

84.0

NA

8

Southeast Aceh

Dolok-1

Kr. Dolok

32.2

96.6

9

Aceh Jaya

Teunom-1

Kr. Teunom

24.0

864.6

Teunom-2

Kr. Teunom

288.2

NA

Teunom-3

Kr. Teunom

102.0

NA

3,898.4

7,069.50

Total

Aceh Investment Profile

{ 157


Jambo Aye Multi Purpose Reservoir Project Irrigation 19,50 Ha, Hydropower Plant 160 Mw/580 Mwh

Photo: Jambo Aye Reservoir

158 } Aceh Investment Coordinating Board


JAMBO AYE RESERVOIR A. PLAN OF RESERVOIR - Catchment Area

= 3,920 Km2

- Maximum Height of Reservoir Wall

= 90 m’

- Total Volume

= 4,170 X 106 m3

B. FUNCTION OF RESERVOIR - Irrigation Supply

= 41,200 Ha, 16 m3/second

- Flood Control (Q1000ch), El. + 85 m

= 3,850 m3/second

- Hydropower

= 160 MW / 580 MWH

- River Regulation

= 2 m3/second

C. IMPACT ON ENVIRONMENT - Area inundated

= 11,500 Ha

- Vegetation inundated

= Forest

- Residences Submerged

= 220 Households

- Land inundated

= Refer detailed list

D. TOTAL COST

= US $ 539, 28 million

- Sub Total for hydropower plant project

= US $ 344,40 million

- Cost per KW installed

= US 2,150,00/KW

No

Land Use List

Hectares (Ha)

1

Reserved Forest

220 Ha

2

Forest Concession Areas PT. Rimba Penyangga Utama

3

Forest Concession Areas PT. Tualang Raya

778 Ha

4

Concession Lands of EXXON MOBIL OIL

6,970 Ha

5

Residences (220 Housee) & Garden

800 Ha

2,495 Ha

Aceh Investment Profile

{ 159



8 Detailed Plans for Tourism Development Projects


8.1 Banda Aceh Tourism Development Project

8.1.1 Krueng Aceh River Walk 8.1.2 Ulee Lheue Beach 8.1.3 Banda Aceh Madani Education Center

162 } Aceh Investment Coordinating Board


Aceh Investment Profile

{ 163


8.1.1

Krueng Aceh River Walk

FACILITIES • Food Court • Restaurant • Playground • Jogging track • Mini Port • Amphitheater • Park INVESTMENT ESTIMATE

USD 5,000,000

164 } Aceh Investment Coordinating Board


Aceh Investment Profile

{ 165


8.1.2

Ulee Lheue Beach

FASILITIES ¤¤ ¤¤ ¤¤ ¤¤

166 } Aceh Investment Coordinating Board

Food Court Restaurant Playground Jogging Track

¤¤ ¤¤ ¤¤ ¤¤

Mini Port Amphitheater Park Fishing Spot


INVESTMENT ESTIMATE

USD 10,000,000

Aceh Investment Profile

{ 167


8.1.3

Banda Aceh Madani Education Center INFRASTRUCTURE DEVELOPMENT: 1. Islamic School 2. Male Dormitory 3. Female Dormitory 4. Administration Office 5. Convention Hall and Exhibition Hall Incentives from Banda Aceh Government: »» Facilitated Environmental Impact Analysis (AMDAL) »» Permit Arrangement »» Land Acquisition INVESTMENT ESTIMATE:

USD 250.500.000

168 } Aceh Investment Coordinating Board


Aceh Investment Profile

{ 169


8.2 Simeulue Marine Tourism Development

8.2.1 Diving Center 8.2.2 Surfing Center

170 } Aceh Investment Coordinating Board


Aceh Investment Profile

{ 171


8.2.1

Diving Center Location : Siumat Island, Ganting, Sibau, Simanaha Island and Harapan Island, Simeulue Land Status : Private and Goverment Land Road By Condition Road by Surface Water Electricity

: Good : Asphalted : Lake and Spring : Supported

Infrastructure Support Air Port : Lasikin Sea Port : Kolok Jetties : Siumat Island, Ganting, Sibau,Siamanaha Island, and Harapan Island Investment Potentials: 1. Diving/Snorkeling Equipment 2. Cottages 3. Human Resources 4. Camp 5. Monitoring (Government Sustainable Purpose)

INVESTMENT ESTIMATE:

USD 3.100.000 IRR : 18% Payback Period : 5 Years

172 } Aceh Investment Coordinating Board


SIMEULUE

Diving Spot

Aceh Investment Profile

{ 173


8.2.2

Surfing Center

Location : Harapan Island, Maudil, Matanurung, Alus-Alus and Batu Berlayar Island, Simeulue Land Status

: Privately own

Road By Condition Road by Surface Water Electricity

: Good : Asphalted : Lake and Spring : Available

Infrastructure Support Air Port : Lasikin Sea Port : Kolok Investment Required for: 1. Surfing Equipment 2. Cottages 3. Human Resources 4. Camps 5. Monitoring (Government Sustainable Purpose)

INVESTMENT ESTIMATE:

USD 2.100.000 IRR : 18% Payback Periode : 3 Years

Participants at Aceh International Surfing Championship 2013, in Simeulue

174 } Aceh Investment Coordinating Board


SIMEULUE

Surfing Spot

Aceh Investment Profile

{ 175


Photo: Iboih, sabang


9 Sabang Free Port and Free Trade Zone Project


9.1

Sabang International Water Front Land Area Location Land Status Supporting Land

: : : :

0.5 Ha Paradiso Beach Goverment Land 1 Ha Sabang Fair Area

Road Condition Road Surface Water Electicity

: : : :

Good Asphalt Lake and Spring Supported

INFRASTRUCTURE SUPPORT Airport : Maimun Saleh Seaport : Balohan (passanger port) and Sabang International Hubport

INVESTMENT ESTIMATE

USD 35,000,000 Payback : 8 Years B/C Ratio : 1.21

178 } Aceh Investment Coordinating Board


Aceh Investment Profile

{ 179


9.2

Cruise Passenger Terminal

Photo: Cruise Terminal

Land Area Location Land Status Depth CT 1 Length CT 3 Length

: : : : : :

117 Ha Sabang Bay Goverment Ownership 22 m 180 m2 x 25 m2 423 m2 x 50 m2

Road Condition Road Surface Water Electicity

: : : :

Very good Asphalt Treated Water Supply Supported

180 } Aceh Investment Coordinating Board

INFRASTRUCTURE SUPPORT Airport : Maimun Saleh Seaports : Balohan (ferry port) and Sabang International Hubport (shipping)


INVESTMENT ESTIMATION

USD 120,000,000 Payback : 8 Years B/C Ratio : 1.23

Aceh Investment Profile

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9.3

Yacht Marina & Supporting Facilities

Batchmetri Area Land Area Location Land Status

: : : :

26.5 Ha 13 Ha Lhok Wieng Goverment Land

Road by Condition Road by Surface Water Electicity

: : : :

Good Asphalt Lake and Spring Supported

INFRASTRUCTURE SUPPORT Airport : Maimun Saleh Seaport : Balohan (ferry port) and Sabang International Hubport (shipping)

Photo: International Regatta Sail, Sabang - Phuket - Langkawi

182 } Aceh Investment Coordinating Board


INVESTMENT ESTIMATE

USD 6,000,000 Payback : 5 Years B/C Ratio : 1.3

Aceh Investment Profile

{ 183


9.4

Diving Centre

Location Land Status

: Gapang and Iboih Beach : Goverment Land

Road Condition Road Surface Water Electicity

: : : :

Good Asphalt Lake and Spring Supported

INFRASTRUCTURE SUPPORT Airport : Maimun Saleh Seaport : Balohan (ferry port) and Sabang International Hubport

INVESTMENT ESTIMATE

USD 1,100,000 Payback : 4 Years B/C Ratio : 1.3

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9.5

Sea Port INVESTMENT OPPORTUNITIES ¤¤ ¤¤ ¤¤ ¤¤ ¤¤ ¤¤ ¤¤ ¤¤

Commerce, Export-Import Transhipment port Cruise line Docking yard Fuel Bunkering Service Storage Water Supply Other

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9.6

Industrial and Trading Sector BUSINESS OPPORTUNITIES ¤¤ ¤¤ ¤¤ ¤¤ ¤¤

Service of export or import Fuel Bunker, Transit & Supply Down Stream for Agro Industry (CPO, Cacao, Rubber, etc) Shipping Industry/ Ship Docking Fish Processing Industry

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9.7

Balohan Industrial Park We will offer the greatest advantages in today’s challenging manufacturing environtment. We will offer the most advanced Industrial Free Zone in Indonesia-minutes from the Container Seaport. We will offer competitive labor rates, on-site property management and 24-hours security. We will layout the Parks to best utilize the land area and provide for only High Tech Industries that create jobs beneficial to the people of Weh Island and Indonesia.

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9.8

Fishery Sector ¤¤ It is surrounded by the Indian Ocean and the Malacca Strait. ¤¤ Sabang Zone has a big potential for marine fish processing industies ¤¤ Part of Sub Regional Indonesia-MalaysiaThailand Growth Triangle (IMT-GT)/ Andaman Cluster ¤¤ Some location along the coast of Weh Island nearby Pulo Aceh Island have high potential for marine fish and seaweed culture. INCENTIVES: BPKS has the authority to provide incentives for business in the Sabang Zone: ¤¤

¤¤ ¤¤

Sabang Zone has free: »» Custom Clearance »» Custom (Export-Import) duties »» Luxury goods tax »» Value Added Tax (VAT) Free Trade and Free Port determined for 70 years. Management Board of Free Trade and Free Port Sabang (BPKS) has the authority to grant business licenses and other license, hence, the procedures are faster and easier

BUSINEESS OPPORTUNITIES ¤¤ ¤¤ ¤¤ ¤¤ ¤¤

Export Processing Zone (EPZ) Fresh Fish Export Terminal (sea and Air cargo) Marine Culture, such as sea weed, lobsters. Cold Storage Docking Yard

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10

Detailed Plans for Industrial and Trading Estates


10.1

Aceh Industrial Area Plant at Ladong

LOCATION: Ladong, Aceh Besar (about 18 km west to Banda Aceh, 30 km to Sultan Iskandar Muda Airport, and 9 km east to Malahayati Port ).

Reserved Land Area : 552.663 sqm

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CONSIST OF: • 19 lots for small scale industries (0.10 Ha – 0.30 Ha). • 23 lots for low medium scale industries (0.30 Ha – 0,50 Ha). • 10 lots for higher medium scale industries (0.50 Ha – 1 Ha).

LADONG 556.663 sqm (55 Ha)

BEEF PROCESSING FOCUSED INVESTMENT AREA

MALAHAYATI SEAPORT

COCONUT FOCUSED INVESTMENT AREAS

ACEH BESAR

PIDIE

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10.2

Lhokseumawe Industrial Area

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PRESIDENTIAL REGULATION OF THE REPUBLIC OF INDONESIA NUMBER 39 OF 2014 ON LIST OF BUSINESS FIELDS CLOSED TO INVESTMENT AND BUSINESS FIELDS OPEN, WITH CONDITIONS, TO INVESTMENT BY THE GRACE OF GOD, THE ALMIGHTY THE PRESIDENT OF THE REPUBLIC OF INDONESIA Considering: a. that in order to implement Article 12 paragraph (4) and Article 13 paragraph (1) of law Number 25 of 2007 on Investment, Presidential Regulation Number 36 of 2010 on list of Business Fields Closed to Investment and Business Fields Open, with conditions, to investment; b. that, in order to increase investment activities in Indonesia, and for the purpose of implementing Indonesia’s commitment with respect to the Association of Southeast Asian Nations/ ASEAN Economic Community (AEC), it is necessary to revise to provisions on the list of business fields closed to investment and business fields open, with conditions, to investment; c. that, concerning the matters as referred to in paragraphs a and b above, it is necessary to issue a Presidential Regulation on the List of Business Fields Open, with Conditions, to Investment; In view of :

1. Article 4 paragraph (1) of the 1945 Constitution of the Republic of Indonesia; 2. Law Number 32 of 2004 on Regional Government (State Gazette of the Republic of Indonesia of 2004 Number 125, Supplement to the State Gazette Number 4437), as amended most recently by law Number 12 of 2004 on Second Amendment to Law Number 32 of 2004 on Regional Government (State Gazette of Republic of Indonesia of 2008 Number 59, Supplement to the State Gazette of the Republic of Indonesia Number 4844); 3. Law Number 25 of 2007 on Investment (State Gazette of the Republic of Indonesia of 2007 Number 67, Supplement to the state Gazette of Republic Indonesia Number 4844) 4. Law Number 40 of 2007 on Limited Liability Companies (State Gazette of the Republic of Indonesia of 2007 Number 106, Supplement to the State Gazette of the Republic of Indonesia Number 4756); 5. Law Number 20 of 2008 on Micro, Small, and Medium Enterprises (State Gazette of Republic of Indonesia of 2008 Number 93, Supplement to the State Gazette of the Republic of Indonesia Number 4866); 6. Law Number 17 of 2012 on Cooperative Affairs (State Gazette of Republic of Indonesia of 2012 Number 212, Supplement to the State Gazette of the Republic of Indonesia Number 5355); 7. Presidential Regulation Number 17 of 2013 on Implementation of Law Number 20 of 2008 on Micro, Small, and Medium Enterprises (State Gazette of Republic of Indonesia of 2013 Number 40, Supplement to the State Gazette of the Republic of Indonesia Number 5404); 8. Presidential Regulation Number 76 of 2007 on Criteria and Conditions for Setting Up Business Fields Closed and Business Fields Open, with Conditions, to Investment; 9. Presidential Regulation Number 27 of 2009 on One Stop Services for Investment; HAS DECIDED:

To isseu A PRESIDENTIAL REGULATION ON THE LIST OF BUSINESS FILEDS CLOSED TO INVESTMENT AND BUSINESS FILEDS OPEN, WITH CONDITIONS, TO INVESTMENT;

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Article 1 (1) Closed business fields are certain business fields that are prohibited from conducting any investment activities. (2) The list of closed business fields as referred to in paragraph (1) are as set out in Appendix I of this Presidential Regulation. Article 2 (1)

(2)

Business fields open, with conditions, are certain business fields where investment activities may conducted under certain conditions, that is, licensed business reserved for Micro, Small and Medium Enterprises and Cooperatives, licensed businesses requiring establishment under a partnership, licensed businesses requiring certain capital ownership, licensed businesses requiring a certain location, and licensed businesses requiring special permits. The list of business fields open, with conditions, as referred to in paragraph (1) shall be as set out in Appendix II of this Presidential Regulation. Article 3

Business fields not curtained in Appendix I and II as referred to in Article 2 are declared open without conditions for investment. Article 4 (1) (2)

(3)

Investment in business fields open, with conditions, as referred to in Article 2 must meet conditions of location as provided herein and meet regulations applicable in the spatial and environment sectors. In the case of locations of business for an investment license as referred to in paragraph (1) it has been determined that the investor is willing to extend his business by engaging in the same business activities outside the location determined in the investment license, the investment shall meet the conditions of location as referred to in the paragraph (1). In order to meet the requirements of location as referred to in paragraph (2), investors are not obligated to establish new business entities or obtain new business licenses, except where otherwise stipulated by law. Article 6

(1)

In the event that a change occurs to the capital ownership resulting from a merger, acquisition, or amalgamation of a company engaged in the same business field, the following requirements shall apply: a. A limitation of capital ownership from foreign investment in the merging company shall be as set out in the approval letter of the company. b. A limitation of capital ownership from foreign investment in the acquiring company shall be as set out in the approval letter of the company. c. A limitation of capital ownership from foreign investment in a new company resulting from an amalgamation shall be in compliance with the provisions applied when the new company was formed that is to be amalgamated. Article 7

(1)

(2)

In the event that foreign investor expands business activity in the same business fields and the business activity expansion needs a capital Increase through issue of shares with rights issues, and domestic investors cannot participate in the capital increase, then the provisions on rights issues shall apply to the foreign investors, according to the prevailing legislation on limited liability companies. In the event that additional capital, as referred to in paragraph (1) results in total ownership of foreign capital to exceed the maximum limit set out in the approval letter, then within a period of two (2) years, the excess

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total ownership of foreign capital investment may be adjusted from the minimum limit included in the approval letter, by means of: a. The foreign investors can sell the excess of shares in good will to domestic investors; b. The foreign investor can sell the excess of shares through a general tender conducted by a company whose shares are owned by the foreign investor in a domestic capital market; or c. The company, as referred to in paragraph (2) sub-paragraph b, can purchases the excess shares owned by the foreign investor and treat the shares as treasury stocks, subject to Article 37 of Law Number 40 of 2007 on Limited Liability Companies. Article 8 Provisions of this Presidential Regulation shall not pressure the obligation of an investor to comply with terms and conditions in conducting business activities issued by: a. Ministry/Non-Ministry Governmental Institutions which are technically authorized approve to the scope of the investment; and b. Provincial and District Governments. Article 9 Provision as referred to in Articles 1 and 2 herein shall not be applicable for an investment approved in certain sectors prior to the stipulation of this Presidential Regulation as included in an Approval Letter, except if such provisions are more beneficial to the referred investment. Article 10 When this presidential Regulation comes into effect, implementing regulation of Presidential Regulation Number 36 of 2010 on the List of Business Fields Closed to Investment and Business Fields Open, with Conditions, to Investment shall remain a applicable to the extent that it is not contradictory and has not been regulated with a new implementing regulation based on these Presidential Regulations. Article 11 With the enforcement of this Presidential Regulation, Presidential Regulation Number 36 of 2010 on list of Business Fields Close to Investment and Business Fields Open, with Conditions, to Investment shall be revoked and declared as no longer applicable. Article 12 This Regulation shall come into force as of the date of issue. For the public cognizance, it is instructed to promulgate this Presidential Regulation by placing the same in the State Gazette of the Republic of Indonesia. Issued in Jakarta On April 23, 2014 PRESIDENT OF THE REPUBLIC OF INDONESIA, [signed] DR. H. SUSILO BAMBANG YUDHOYONO

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Promulgated in Jakarta On April 24,2014 MINISTER OF LAW AND HUMAN RIGHTS OF THE REPUBLIC OF INDONESIA, [Signed] AMIR SYAMSUDIN This copy conforms to the original hereof SECRETARIAT OF CABINET OF THE REPUBLIC OF INDONESIA Deputy for Economic Sector [Signed] Ratih Nurdiati

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LIST OF APPENDICES REGULATION OF THE PRESIDENT OF THE REPUBLIK OF INDONESIA NUMBER 39 OF 2014

NO.

APPEDIX

TITLE

1.

APPENDIX I

List of Business Fields Closed to Investment

2.

APPENDIX II

List of Business Fields Open, with conditions, to investment: (just for project/commodity offered in this edition of Aceh Investment Profile) : 1. Agriculture Sector 2. Maritime and Fisheries Sector 3. Energy and Minerals Resources 4. Industrial Sector 5. Tourism and Creative Economy Sector 6. Transportation and Information Sector

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APPENDIX I REGULATION OF THE PRESIDENT OF INDONESIA NUMBER : 39 of 2014 DATE : 24 April 2014 LIST OF BUSINESS FIELDS CLOSE TO INVESTMENT

No

SECTOR

KBLI

Detail of Conditions

1

Agricultural

01289

Cultivation of marijuana (cannabis sativa);

2

Forestry

01701

1.

03119

3

Industry 20111 20211

20119 20119

20119

11010 11020 11030

Capturing of fish species contained in Appendix I to Convention on International Trade in Endangered Species of wild Fauna and Flora (CITES); 2. The use (removal) of coral/atoll from nature for construction material/lime/calcium and souvenir/jewelry, also live or dead coral (recent dead coral) from nature. 1. Chemical material industry that can damage the environment: • Mercury processed chlorine alkali maker industry • Manufacture of pesticide active ingredients: dichloro diphenyl trichloride (DDT), aldrin, endrin, dieldrin, chlordane, heptachlor, mirex, and toxaphene. • Chemical material industry : polychlorinated biphenyl (PCB), hexachlorobenzene • Manufacture of ozone deplating substances (ODC), methyl chloroform, methyl bromide, trichloro fluoro methane (CFC11), dichloro trifluoro ethane (CFC-12), trichloro trifluoro ethane (CFC-113) dichloro tetra fluoro ethane (CFC-114), chloro pentafluoro ethane (CFC-115), chloro trifluoro methane (CFC13), tetrachloro difluoro ethane (CFC-112), pentachloro fluoro ethane (CFC-111), chloro heptafluoro propane (CFC-217), dichloro hexafluoro propane (CFC-216), trichloro pentafluoro propane (CFC-215), tetrachloro tetrafluoro propane (CFC214), pentachloro trifluoro propane (CFC-213), hexachloro difluoro propane (CFC-211), bromo chloro difluoro methane (halon-1211), bromo trifluoro methane (halon-1301), dibromo tetrafluoro ethane (halon-2402), R-500, R-502. 2. Chemical material industry schedule 1 chemical weapons convention as contained in Appendix I of Law Number 9 of 2008 regarding chemical materials used as chemical weapons. 3. Alcohol beverage industry: • Liquor • Wine • Malt containing beverages

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No

SECTOR

KBLI

Detail of Conditions

4

Transportation

52211

1.

52219 52221

2. 3.

52230 71203

4. 5.

Provision and operation of the terminals for land transportation passengers Provision and operation of motor vehicles weighing Telecommunication/supporting facilities for shipping navigation and vessel traffic information systems (VTIS) Provision of flight navigation services Provision of motor vehicle type tests

5

Communication and infor- 61300 mation

Management and implementation of radio frequency and orbit spectrum monitoring stations

6

Education and culture

1. Public museums 2. Historical and ancient heritage (temples, castles, epigraphie, remains, ancient buildings, etc)

7

Tourism and economy

91021 91203

creative 92000

Gambling/casinos

Notes: 1. Business fields closed to investment can be used for non-commercial purposes such as: research and development, and may obtain approval from institutions which are responsible for developing business fields. 2. In the event that the Indonesia Standard Classification of Business Field (KLBI) includes more than one business field, then provisions as referred to in Appendix I are only applicable to the business fields sated in the column of business fields.

PRESIDENT OF THE REPUBLIC OF INDONESIA, [signed] DR. H. SUSILO BAMBANG YUDHOYONO

This copy conforms to the original hereof SECRETARIAT OF CABINET OF THE REPUBLIC OF INDONESIA Deputy for Economic Sector [signed] Ratih Nurdiati

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APPENDIX II REGULATION OF THE PRESIDENT OF INDONESIA NUMBER : 39 of 2014 DATE : 24 April 2014 LIST OF BUSINESS FIELDS OPEN, WITH CONDITIONS, TO INVESTMENT I. Agriculture Sector No BUSINESS FIELDS

KBLI

Conditions/Detail of Conditions

1

Main crop plant seedling business, in an area of 01120 01111 more than 25 Ha: - Rice 01113 - Corn - Soybeans

1. Foreign Capital Ownership; maximum 49 % 2. Special license and foreign capital ownership 3. Recommendation from the Minister of Agriculture

2

Main crop plant seedling business, in an area of less 01120 01111 than 25 Ha: - Rice 01113 - Corn - Soybeans

Reserved for micro, small, medium enterprises and cooperatives

3

Plantation seedling business, in an area of 25 Ha : - Coconut plant - Palm oil plant

1. Foreign Capital Ownership; maximum 95 % 2. Special license for foreign capital ownership 3. Recommendation from the Minister of Agriculture

Plants for beverages - Coffee - Cacao Essential oil plants Rubber and other latex producing plants 4

01261 01262 01270 01284 01291

Plantation business in an area of 25 Ha or more until a certain area without a processing unit, according to the prevailing legislation : - Coconut plant 01261 - Palm oil plant 01262 Plants for beverage material - Coffee - Cacao - Essential oil plant Rubber and other latex producing plants

01270

- Special license and foreign capital ownership - Foreign capital ownership and location; maximum 95% - Recommendation from the Minister of Agriculture

01284 01291

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No BUSINESS FIELDS 5

Plantation business in an area of 25 Ha or more, integrated to the processing unit by the same or exceeding a certain capacity, according to the prevailing legislation : • • • • • • • •

6

Coconut plantations and copra, fiber, coconut charcoal, dust, nata de coco industries Coconut plantations and copra, fiber, coconut charcoal, dust, nata de coco industries Palm oil plantations and crude palm oil (CPO) industry Coffee plantations and coffee peeling, cleaning, and sorting industry Cocoa plantations and cocoa peeling, cleaning, and drying industry Essential oil crop plantations and essential oil industry Rubber plantation and sheet, thick latex industry Seed based plantations and peeling and cleaning industry for seeds other than coffee and cacao

01261 10423 01261 10421 10773 01262 10432 01270 10612 01270 10613 01284 20294 01291 22121 22122 10614

Plantation product processing industry, with the same or exceeding a certain capacity, according to the prevailing legislation: - Crude oil industry (edible oil) from vegetables and animals - Copra, fiber, coconut charcoal, dust, nata de coco industry - Coconut oil industry - Palm oil industry - Coffee peeling, cleaning, and sorting industry - Cacao peeling, cleaning, and sorting industry - Rubber to be sheet, thick latex industry

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Conditions/Detail of Conditions - Special license and foreign capital ownership - Foreign capital ownership and location; maximum 95% - Recommendation from the Minister of Agriculture

- Reserved for micro, small, medium enterprises and cooperatives

Plantation product processing business industry below certain capacity, according to the prevailing legislation : - Crude oil industry (edible oil) from vegetables and animals - Copra, fiber, coconut charcoal, dust, nata de coco industry - Coconut oil industry - Palm oil industry - Coffee peeling, cleaning, and sorting industry - Cacao peeling, cleaning, and sorting industry - Rubber to be sheet, thick latex industry

7

KBLI

01630 10411 10421 10422 10612 10613 22121

01630 10411 10421 10422 10612 10613 22121

- Special license and foreign capital ownership - Foreign capital ownership; maximum 95 % - Recommendation from the minister of agriculture


No BUSINESS FIELDS 8

Horticulture seedlings : - Seasonal fruit plant seedlings - Tropical fruit seedlings - Orange seedling - Seasonal vegetable plant seedling - Annual vegetable plant seedling

9

Horticulture cultivation : - Seasonal fruit plant cultivation - Tropical fruit tree cultivation - Orange tree cultivation - Leaf vegetable cultivation (such as: cabbage, mustard greens, leeks, celery) - Tuberous vegetable cultivation (among others: onions, garlic, potatoes, carrots) - Fruit vegetable cultivation (such as: tomatoes, cucumber) - Chili, bell pepper cultivation

KBLI 01139 01220 01230 01139 01253 01132 01220 01230 01131

Conditions/Detail of Conditions - Foreign capital ownership: maximal 30%

- Foreign capital ownership: maximal 30%

01134 01133 01283

10

Horticulture processing industry : - Post Harvest fruit and vegetable businesses

10311 10320 10313 10314 10330

- Foreign capital ownership: maximal 30%

11

Horticulture research and quality control laboratory 72102 business

- Foreign capital ownership: maximal 30%

12

Horticulture and agro tourism business

- Foreign capital ownership: maximal 30%

II. No

93231

Maritime and fishery sector BUSINESS FIELDS

KBLI

Conditions/Detail of Conditions

1

Catch fishery using fishing ship sized up to 30 GT, in 03111 marine territory up to 12 nautical miles from share.

Reserved for micro, small, medium enterprises and cooperatives

2

Fish product processing businesses conducted at 03121 fish loading port. 03122

Reserved for micro, small, medium enterprises and cooperatives

3

Fish rearing : - Marine fish - Brackish water fish - Fresh water fish

03211 03251 03221

Partnership

4

Fish hatchery : - Marine fish - Brackish water fish - Fresh water fish

03211 03251 03221

Partnership

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No

BUSINESS FIELDS

KBLI

Conditions/Detail of Conditions

5

Fisheries products processing businesses (UPI) - Fish and other water biota salting/drying 10211 industries - Fish and other water biota smoking industries 10212

Partnership

6

Fishery products processing (UPI) businesses; 10219 fermentation, reduction/chemical processes, surimi and jelly fish processing businesses.

Partnership

7

Marketing, distribution, wholesale business, and 03111 fish product export business

Special license

8

- Catch fishery using ships up to 100 GT and/or 03111 more in ZEEI catching territory - Catch fishery using fishing ships sized 100 GT 03111 and/or more in open sea catching areas - Fishery catching business using fishing ship 03111 more than 30 GT in size, in water area more than 12 nautical miles from share

- Special license - Further terms and conditions are regulated by the minister of maritime and fishery - Special license - Further terms and conditions are regulated by the minister of maritime and fishery - 100% local capital

III. Energy and mineral resource sector No

BUSINESS FIELDS

KBLI

Conditions/Detail of Conditions

1

Survey serviceses: - Geology and geophysics - Geothermal

71100 71100

- Foreign capital ownership; maximum 49% - Foreign capital ownership; maximum 95%

2

Drilling services : Geothermal

09900

- Foreign capital ownership; maximum 95%

3

Geothermal operation and maintenance services

09900

- Foreign capital ownership; maximum 90%

4

Power plant : - Power plant < 1 MW - Small-scale power plant (1-10 MW) - Power plant > 10 MW

5

- Power plant transmission

35102

- Foreign capital ownership; maximum 95% (maximum 100% for the purpose of KPS during concession period)

6

- Electricity distribution

35103

- Foreign capital ownership; maximum 95% (maximum 100% for the purpose of KPS during concession period)

7

Electricity installation consultation service

71100

- Foreign capital ownership; maximum 95%

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35101

- 100 % local capital - Foreign capital ownership; maximum 49% - Foreign capital ownership; maximum 95% (maximum 100% for the purpose of public private partnership/KPS during concession period)


No

BUSINESS FIELDS

KBLI

Conditions/Detail of Conditions

8

Construction and installation of electric power: - Installation of electric power provider - Installation of electric power utilization

42213 43211

- Foreign capital ownership; maximum 95% - 100% local capital

9

- Electric power installation operation and main- 43211 tenance

- Foreign capital ownership; maximum 95%

11

Electric power installation examination and testing 71204

- 100% local capital

IV.

Industrial Sector

No

BUSINESS FIELDS

KBLI

1

- Salting/drying fish and other water biota 10211 industry - Smoked fish industry 10214

Partnership

2

Processed food industry from seeds and roots, sago, gnetum gnemon nut : - Soybean cake (tempe) industry 10391 10392 - Soybean tofu industry - Industry of food from soybean and legumes, 10793 other than soya sauce, tempe, and tofu

Reserved for micro, small, medium enterprises and cooperatives

3

Rubber curing industry

22121

Reserved for micro, small, medium enterprises and cooperatives

4

Essential industry

20294

Partnership

4

Sugar industry (white crystal sugar, refined crystal 10721 sugar and raw crystal sugar)

- Special license and foreign capital ownership; maximum 95% - Establishment and expansion of sugar factory required to establish first own sugarcane plantation according to the prevailing legislation

5

Crumb rubber industry

100 % local capital and special license : 1. Recommendation on availability of raw materials from the ministry of agriculture 2. Not allowed to change the company’s capital ownership into foreign investment (PMA)

22123

Conditions/Detail of Conditions

Partnership

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V.

Tourism and creative economy sector

No

BUSINESS FIELDS

KBLI

Conditions/Detail of Conditions

1

Restaurant

56101

- Foreign capital ownership: maximum 51% and location - Does not contradict with local regulation

2

Accommodation services : - Two star hotel

55115

- One-star hotel

55115

- Foreign capital ownership: maximum 51% and location - Does not contradict with local regulation

- Non star hotel

55120

- Home stay

55130

- Other accommodation services : motel

55199

- Foreign capital ownership: maximum 51% and location - Does not contradict with local regulation - Foreign capital ownership: maximum 51% and location - Does not contradict with local regulation - Reserved for micro, small, medium enterprises, and cooperatives - Foreign capital ownership: maximum 49% (maximal 51% if partnering with UMKMK) and location - Does not contradict with local regulation - Foreign capital ownership requirement : maximum 70% and/ or location for investor from ASEAN countries - Does not contradict with local regulation - Located in Java and Bali

3

Convention, exhibition, and incentive tour services

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82301

- Foreign capital ownership: maximum 51% and location - Does not contradict with local regulation


No

BUSINESS FIELDS

4

- Nature tourist object conservation areas

VI.

KBLI business

outside 59122

Conditions/Detail of Conditions - Foreign capital ownership: maximum 51%

Transportation Sector

No

BUSINESS FIELDS

KBLI

1

Providing port facilities (piers, buildings, container 52221 terminals, liquid bulk terminals, dry bulk terminals 52222 and Ro-Ro) 52223

Conditions/Detail of Conditions Foreign capital ownership; maximum 49% (max 95% if for the purpose of PPP during concession period)

Note : 1. In the event that the Indonesian Standard Classification of Business Fields (KBLI) includes more than one business field, then Provisions as referred to in Appendix II one only applicable to the business fields stated in the column of business fields. 2. Micro, small, and medium-scale businesses, and cooperatives (UMKMK) in this Regulation of the President shall mean individuals or companies that fulfill the criteria as referred to in Law No. 20 of 2008 regarding Micro, small, and medium-scale enterprise, and Law No. 17 0f 2008 Regarding Cooperatives. 3. In the event that a business field covered in Indonesia’s commitment to ‘ASEAN Economic Community’ is not stated in Appendix II of this Presidential Regulation but stated in other columns, then the capital originating from ASEAN may be invested based on the requirements as referred to in the column.

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Chief of Editor Iskandar Netty Muharni Editor Arif Arham Cut Eliza Mutia Ibrahim Champion Ratna Keumala Design and Layout aSOKA communications Copyrigth 2015 | Aceh Investment Coordinating Board

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