Aceh Investment Profile 2013

Page 1



ACEH

Investment Profile

Aceh Investment Coordinating Board 2013


Editor-in-chief Iskandar Editors Netty Muharni Junaidi Jalil Cut Eliza Mutia Asmaul Husna Arif Arham

Design and Layout aSOKA communications www.asoka.web.id

Presented by:

Aceh Investment Coordinating Board 2013


www.acehinvestment.com This book contains QR Code that links to a particular web page. To read the code, use your smart phone's application, e.g., QR Droid for Android.


FOREWORD

All praises and gratitude are due to God the Almighty for giving us an opportunity to convey information about investment opportunities in Aceh. Peace may be bestowed upon His messenger, Prophet Muhammad PBUH, who gave us example how to be trustworthy and honest in business.

autonomy province in Indonesia. We have a wider authority to govern ourselves than other regions in Indonesia. We also have privilleges to make direct cooperation with foreign institutions.

Aceh is your investment destination. There are four key strengths that make Aceh very promising: friendly investment laws, geographical position, abundant natural resources, and human capital.

Another important investment measure is the free port and free trade zone in Sabang. The zone provides attractive incentives for investors, such as import duty and tax exemption. For simplification, all licensings for investment in the zone are issued by the Sabang Management and Development Agency (BPKS).

Friendly investment laws are related to our status as a special

Another reason that makes Aceh one of the best place to


“We welcome you to invest in amazing Aceh� invest is its location proximity. Located in one of the busiest international shipping lane, on the entrance of Malacca Strait, Aceh is geographically close to potential markets, such as East Africa, Middle East, South Asia, Southeast Asia, East Asia, along with Australia and New Zealand. This relative position is a beneficial networking for long term investment activities.

labor force in Aceh. To highlight, the Government of Aceh provides 20% of its annual budget for human capital so they can be your partners in the business.

Aceh also has abundant natural resources. Coffee, cocoa, rubber, and palm oil are just a short list. Mineral resources, located inland and offshore also await further investment

In brief, the brand-new Aceh is just perfect for your future investment. We welcome you to invest in amazing Aceh.

Potential investors can get the most of the commodities, utilizing the large number of productive and hardworking

To accelerate investment in the region, we work on some important issues to be resolve, such as de-regulation, licensing acceleration, security and business comfort improvement.

Zaini Abdullah Governor of Aceh


CONTENTS

8

1

INTRODUCTION

2

WHY INVEST IN ACEH

1.1 Vision and Mission 1.2 Geography 1.3 Spatial Planning 1.4 Investment Policies 1.5 Facts and Figures

2.1 Regulations 2.2 Incentives 2.3 Infrastructure Support

Aceh Investment Profile


3

INVESTMENT OPPORTUNITIES 3.1 AGRO INDUSTRIES 3.1.1 Coffee 3.1.2 Cocoa 3.1.3 Rubber 3.1.4 Palm Oil 3.1.5 Patchouli 3.1.6 Corn 3.1.7 Organic Horticulture 3.1.8 Fishery 3.1.9 Dairy and Livestock Farm

3.2 TOURISM 3.3 ENERGY & INFRASTRUCTURE 3.4 MINING

AND TRADING ESTATES 4 INDUSTRIAL 4.1 ACEH INDUSTRIAL AREA 4.2 SABANG FREE TRADE & FREEPORT ZONE

5 ONE-STOP-SERVICE

Aceh Investment Profile

9


Cakradonya Bell, a gift from Admiral Cheng Ho of China Emperor in 1405


1

INVESTMENT OPPORTUNITIES

INTRODUCTION Aceh Investment Profile

1


VISION

ACEH BECOMES ONE OF THE LEADING INVESTMENT DESTINATIONS IN 2017

MISSION • •

2

To improve human resources on investment. To implement integrated planning and control on investment among central government, local governments and private sectors. To promote Aceh’s new branding image as one of the leading investment destinations.

Aceh Investment Profile


Ir. Iskandar, M.Sc

Chairman of Aceh Investment Coordinating Board Aceh Investment Profile

3


ACEH, THE WEST GATE OF INDONESIA

4

Aceh Investment Profile


ACEH

Aceh Investment Profile

5


Geography

Straits of Malaca

Inhabited by

4,726,001 people (2012)

Indian Ocean

6

Aceh Investment Profile


7,478,801.95 Ha

56,770.81 Km2

Total area of the territorial sea whose breadth extends to two hundred nautical miles measured from the baselines.

Total area according to Basemap of Indonesia.

18

district

5

cities

284

subdistrict

755

mukim

6.450

gampong

48 %

of the population work in the agriculture sector.

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

2,001,259 Labors Force

Source: www.bps.go.id

1,550,000 IDR

Minimum regional wage

Source: http://houseofinfographics.com/infografis-upah-minimum-regional-2013-indonesia/

Aceh Investment Profile

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SPATIAL PLANNING

2,934,602 Ha Cultivated Area Those areas for production forest, community forest; agriculture; fisheries; mining; industry; tourism; housing and other functions.

8

Aceh Investment Profile

2,708,550 Ha

Protected Area and Conservation Area Those areas ruled for the protection for following areas Local protected area; preserve region and areas and cultural heritage; national disasterprone; geology protection; and other preservation areas.


Cultivated Area Protected Area Conservation Area

Source: BAPPEDA Aceh 2013

Aceh Investment Profile

9


10

Aceh Investment Coordinating Board Office

Aceh Investment Profile


INVESTMENT POLICIES 1. Improving investment climates. 2. Improving the distribution of investment across Indonesia. 3. Focusing on agro-industry, infrastructure, energy, manufacture, tourism, and knowledge-based economy. 4. Supporting green investment. 5. Improving the quality of the local labors. 6. Empowering co-operatives and small medium enterprises (SME). 7. Providing investment facilities and incentives. 8. Promoting investment opportunities.

Aceh Investment Profile

11


FACTS AND FIGURES

Gayo Coffee Ready for Export operated by Baburrayyan Cooperative , Central Aceh 12

Aceh Investment Profile


ACEH DEVELOPMENT INDICATOR 40 ACHIEVEMENT & TARGET (%)

35 30 25 20 15 10 5 0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YEARS

Economic Growth

1,22

7,23

1,88

3,97

5,32

5,89

6,0

6,5

6,7

6,8

7,2

8,0

%

Level of Poverty 28,69

1,76

28,28

26,65

23,53

21,8

20.98

19,57

19,0

17,5

15,5

13,5

11,5

9,5

%

Unemployment 14,00

12,08

9,84

9,56

8,71

8,37

7,43

7,30

7,22

7,10

7,00

6,80

6,50

%

9,98

9,41

11,92

3,72

5,86

5,78

3,4

4,2

4,4

4,9

5,1

5,0

%

Inflation 34,88

TARGET

Graphical Indicator of Aceh Development

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FACTS AND FIGURES

Malahayati Sea Port Photo: www.visitaceh.asia

14

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Aceh is the 6th Largest

Investment Realization in Indonesia Aceh

1 USD = 9,700 IDR March, 2013 Kurs

1. East Java/ 9,011.92

2. East Kalimantan/ 4,845.94 3. South Kalimantan/ 3,420.25 4. North Sumatra/ 1,990.96 5. Jakarta/191,118 6. Aceh/ 0.2

in Billion USD 1. Nagan Raya/ 156,826 USD 2. Aceh Singkil/ 12,546,000 USD Top 6 of District/ City on Investment Realization Qt I-2013

3. Banda Aceh/ 7,137,760 USD 4. Pidie/ 5,508,000 USD 5. AcehTamiang/ 5,302,336 USD 6. Great Aceh/ 3,976,752 USD

Qt I-2012/ 81,166,528 USD

Comparison to other periode

Qt IV-2012/ 38,270,400 USD Qt I-2013/ 205,353,355.2 USD

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FACT AND FIGURE

The Big 5 of Foreign Direct Investment by Country of Origin UK USA

3.8 16

Aceh Investment Profile

1.8


South Korea India Malaysia

1 USD = 9,700 IDR March, 2013 Kurs

0.2

8.7

4.7

Billion USD

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18

Aceh Investment Profile


2 WHY INVEST IN ACEH Aceh Investment Profile

19


REGULATIONS

Law No 11 of 2006 on Aceh Governance.

The law gives the Government of Aceh privileges to govern the province including in economic development to improve health, safety, and public welfare.

Law No. 37 of 2000 on Sabang Free Port and Free Trade Zone.

It concludes a wide range of facilities for doing business in Sabang, such as import duty and tax exemption. The Sabang Management and Development Agency (BPKS) operates the zone and has an authorized to issue all licensings for investment in this area.

Presidential Regulation No. 11 of 2010 on Cooperation between the Government of Aceh and Foreign Institutions.

The regulation allows a wide authority for the Government of Aceh to establish cooperation with foreign institutions, especially in economic development.

20

Aceh Investment Profile


INCENTIVES FISCAL

NON FISCAL

• •

Tax Allowance: income tax deduction for certain investments and/or region. Facilities import duty: tax exemption for imports of machinery and materials standard for business activity with some requirements. Tax Holiday: tax exemption. Incentives from local governments.

Land acquisition for the development of public infrastructure. Investment Licensing through National Single Window for Investment (NSWI) (http://nswi.bkpm.go.id) Providing industrial area

Aceh Investment Profile

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INFRASTRUCTURE SUPPORT

ROAD

Source: Aceh Transportation and Communication Agency, 2013.

22

Aceh Investment Profile


ROAD

Banda Aceh-Calang National Highway

National Road 1.803,36 Km

Provincial Road 1.813,33 Km

Regencial Road 13.841,07 Km

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INFRASTRUCTURE SUPPORT

SEA PORT

A

Sabang Sea Port, Sabang Willem Torrens Lighthouse at Pulo Aceh (Aceh Island Subdistrict) Erected in 1877 by Dutch

24

Source: Aceh Transportation and Communication Agency, 2013.

Aceh Investment Profile

B

Malahayati Sea Port, Great Aceh


INFRASTRUCTURE SUPPORT

A

B C

D

D

C

Krueng Geukueh Sea Port, South Aceh

Kuala Langsa Sea Port, Langsa

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INFRASTRUCTURE SUPPORT

AIR PORT

SULTAN ISKANDAR MUDA INTERNATIONAL AIRPORT AIRBUSS

Runway 3.000m x 45m

CUT NYAK DHIEN AIRPORT Nagan Raya District A

CESSNA & CASSA

Sultan Iskandar Muda International Air Port

26

Source: Aceh Transportation and Communication Agency, 2013.

Aceh Investment Profile

Runway 1.800m X 30m

B


INFRASTRUCTURE SUPPORT

C A D

B

MALIKUSSALEH AIRPORT North Aceh District

MAIMUN SALEH AIRPORT Sabang District CESSNA & CASSA

Runway 1.850m X 30m

C

CESSNA & CASSA

Runway 2000m x 30m

Aceh Investment Profile

D

27


INFRASTRUCTURE SUPPORT

ENERGY

343 MW

2x110 MW

ACEH-NORTH SUMATRA INTERCONNECTION NAGAN RAYA STEAM POWER PLANT

Steam Power Plant Nagan Raya District Source: PT. PLN (Persero)

28

Aceh Investment Profile


Nagan Raya

Electricity Tariff for Industrial Consumer (engaging in manufacturing of goods and products)

Tariff/kWh (USD/IDR)

Capacity 450 VA

0.05/485

900 VA

0.06/600

1.300 VA

009/930

2.200 VA

0.10/960

3.500 VA-14 kVA

0.11/1,112

200 KVA- 30.000 kVA

0.08/803

14 KVA-200 kVA

More than 30.000 kVA

0.010/972 0.07/723

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3

INVESTMENT OPPORTUNITIES

INVESTMENT OPPORTUNITIES Aceh Investment Profile

31


INVESTMENT OPPORTUNITIES

Coffee

32

Aceh Investment Profile


INVESTMENT OPPORTUNITIES

Aceh export volumes of coffee beans to 18 countries were up to

�

9,703,260 kgs

Gayo coffee is a typical coffee from the Gayo highlands, an area that covers Bener Meriah, Central Aceh and Gayo Lues Districts in Aceh Province. Gayo is the name of the tribe who inhabits this region. The majority of people in this area are coffee growers. The plantation has began as early as 1908 which main product is arabica coffee. In fact, arabica coffee production resulting from the Gayo land is the largest in Asia. Gayo coffee has been exported to many countries in the world including Belgium. The statistics indicate that in 2012, Aceh export volumes of coffee beans to 18 countries were up to 9,703,260.00 kgs or

equals to USD 64,358,771.31 (Aceh Industry and Trade Agency, 2012). Gayo coffee also has gained some international certifications as a recognition to its excellence in quality, such as organic and fair trade certified as well as Geographical Indication (GI). Particularly, black gayo arabica coffee obtained the highest score in the Indonesian Specialty Coffee Auction 2010 in Bali, which guarantees that it is the best coffee in the world.

Source: www.bps.go.id : 2012

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INVESTMENT OPPORTUNITIES

Almost all districts in Aceh have coffee plantations. Among them, Bener Meriah, Central Aceh, and Gayo Lues have higher number of production that suitable for a big coffee processing industry. The following table shows total production for each district. District/City Simeulue

Production (ton)

162

59

-

Aceh Singkil South Aceh

Southeast Aceh Central Aceh (Robusta)

359

514

149

2,315

Central Aceh (Arabica) West Aceh

Pidie

Bireuen

Southwest Aceh

1,413

1,528

Aceh Tamiang

1,589

975

181

Aceh Jaya

150

52

1,250

Bener Meriah A

48,101

Pidie Jaya

71

Banda Aceh

-

Sabang

Langsa

TOTAL

4

236

660

22,414

8 -

-

-

10

6

121,094

53,950

-

Lhokseumawe

295

1,036

1,355

Bener Meriah R

5

4,588 26

Nagan Raya

117

9,490

500

Gayo Lues

874

24,328

8

North Aceh

45

48,000 549

Great Aceh

-

1,459 130

East Aceh

Subulussalam

Planted Area (Ha)

28

-

5

Table of Planted Area and Production of Coffee in Aceh

34

Source: www.bps.go.id : 2013

Aceh Investment Profile


INVESTMENT OPPORTUNITIES

Project: Coffee Processing Industry Bener Meriah Robusta: 1,250 Ha / 660 Tons Arabica: 48,101 Ha /22,414 Tons Central Aceh Robusta: 2,315 Ha / 874 Tons Arabica: 48,000 Ha/ 24,328 Tons Gayo Lues 4,588 Ha 1,036 Tons

PROJECT PURPOSES • Establishing coffee processing industries. • Establishing packaging industry.

INVESTMENT ESTIMATION Instant coffee processing invesment for 5,000 tons

Cost 30,864,300 USD Aceh Investment Profile

35


INVESTMENT OPPORTUNITIES

Cocoa

36

Aceh Investment Profile


INVESTMENT OPPORTUNITIES

Indonesia is the third largest producer of cocoa beans in the world after the Ivory Coast and Ghana. In Aceh, cocoa is a leading commodities other than coffee, palm oil, rubber, organic horticulture, corn and patchouli. Cocoa plantations spread almost in all districts in Aceh, from Aceh Tamiang in the eastern part of Aceh, to Simeulue Island in the outer edge of Aceh Province. Aceh cocoa has been exported to many countries in the world. The statistics indicate that in 2010, Aceh export volumes of cocoa beans reached 420,978.40 kgs or equals to USD 1,166,080.30 (Aceh Industry and Trade Agency, 2012). The development strategy is to gear sustainable cocoa industries. The upstream industries are strengthened, however the focus is to boost value added in the downstream sector.

in 2010, Aceh export volumes of cocoa beans reached

�

420,978 kgs = USD 1,166,080 Aceh Investment Profile

37


INVESTMENT OPPORTUNITIES

There are five districts in Aceh that have higher number of cocoa production that suitable for a big processing industry: Pidie Jaya, Bireuen, Aceh Tamiang, Southeast Aceh, and Soutwest Aceh. The following table shows total production for each district. District/City Simeulue

Aceh Singkil

Planted Area (Ha) 1,890

Production (ton) 158

955

106

585

South Aceh

Southeast Aceh East Aceh

11,970

7,622

2,300

455

12,357

Central Aceh

West Aceh

716

Great Aceh

2,908

Bireuen

5,436

Pidie

107

6,881 350

277

9,474

4,674

North Aceh

10,223

3,122

Gayo Lues

4,311

Southwest Aceh

4,356

Aceh Tamiang Nagan Raya

Bener Meriah

660

1,127

1,270

210

933

Pidie Jaya

2,746

2,675 5,053

Aceh Jaya

4,039

1,331 185

10,513

3,073

Sabang

637

172

Lhokseumawe

135

Banda Aceh

-

Langsa

Subulussalam

TOTAL

-

287

132

528

108

89,512

59

37,594

Table of Planted Area and Production of Cocoa in Aceh Source: www.bps.go.id : 2013

38

Aceh Investment Profile


INVESTMENT OPPORTUNITIES

Project: Cocoa Processing Industry Pidie Jaya 10,513 Ha 3,073 Tons

Bireuen 5,436 Ha 4,039 Tons Aceh Tamiang 2,675 Ha 1,127 Tons

Southwest Aceh 4,356 Ha 2,746 Tons

PROJECT PURPOSES • Establishing cocoa processing industries (paste, butter, powderander). • Establishing packaging industry.

Southeast Aceh 11,970 Ha 7,622 Tons

INVESTMENT ESTIMATION

Cost 97,095,995 USD

Net Present Value : 5,730,808.44 USD Internal Rate of Return : 22,4% Benefit Cost Ratio : 1,69 Pay Back Periode : 6,9 year Aceh Investment Profile

39


INVESTMENT OPPORTUNITIES

Rubber

40

Aceh Investment Profile


INVESTMENT OPPORTUNITIES

�

As one of the largest producing countries, Indonesia put its natural rubber as an important and

strategic commodity to support its growing industries

Natural rubber consists of suitable polymers of the organic compound isoprene with minor impurities of other organic compounds plus water. The rubber plant can grow up to 15-25 meters, has an upright big stem and big high branching. Currently, rubber is harvested mainly in the form of the latex from a rubber tree (Hevea brasiliiensis) which was tapped from the cut bark of the plant. It can be used to produce another form of rubber, such as crumb rubber and rubber timber. Natural rubber is used extensively in many applications and products, either alone or in

combination with other materials such as firewood, charcoal, wood or lumber for householdapliance (furniture), door and window profiles, hoses, belts, matting, flooring and dampeners (antivibration mounts) for the automotive industry, aircraft industry, textile, gloves (medical, household and industrial) and toys.

Aceh Investment Profile

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INVESTMENT OPPORTUNITIES There are five districts in Aceh that have higher number of cocoa production that suitable for a big processing industry: Pidie Jaya, Bireuen, Aceh Tamiang, Southeast Aceh, and Soutwest Aceh. The following table shows total production for each district. District/City

Planted Area (Ha)

Production (ton)

Simeulue

1,201

141

Aceh Singkil

3,698

2,376

South Aceh

1,099

252

Southeast Aceh

10,183

9,802

East Aceh

35,277

21,333

-

-

West Aceh

27,381

18,649

Great Aceh

16

-

Central Aceh

Pidie Bireuen North Aceh Southwest Aceh Gayo Lues

20

-

2,506

1,387

10,485

6,601

851

134

7

1

22,238

14,736

Nagan Raya

10,870

3,322

Aceh Jaya

12,416

5,025

Aceh Tamiang

Bener Meriah

-

-

Pidie Jaya

3

1

Banda Aceh

-

-

Sabang

-

-

Langsa

1,642

1,430

Lhokseumawe Subulussalam TOTAL

20

25

4,379

2,192

144,292

87,407

Table of Planted Area and Production of Rubber in Aceh

42

Aceh Investment Profile

Source: www.bps.go.id : 2013


INVESTMENT OPPORTUNITIES

Project: Rubber Processing Industry West Aceh 27,381 Ha 18,649 Tons

East Aceh 35,277 Ha 21,333 Tons Aceh Tamiang 22,238 Ha 22,238 Tons

Project Purpose INVESTMENT ESTIMATION Establishing rubber processing Capacity 24.000 tons/annually industries.

EXISTING COMPANY

PT. Aceh Rubber Industry (Aceh Tamiang)

Cost 21,161,739 USD Net Present Value : 234,618,007 USD Internal Rate of Return : 53,81 % Benefit Cost Ratio : 1,26 Net Benefit Cost Ratio : 3,739 Aceh Investment Profile

43


INVESTMENT OPPORTUNITIES

Palm Oil

44

Aceh Investment Profile


INVESTMENT OPPORTUNITIES

493.826 2010

Palm oil constitutes the largest plantation crop in Aceh in volume and economic value, and the palm oil sector has significant growth potential as a major source of revenue for food and bio fuel products.

Annual Production (tons)

482.895 2009

The Government of Aceh has been initiating several strategic plans in this commodity: 1. Create operational and policy support for sustainable palm oil among government, private sector, NGOs, and smallholders.

2008

326.665

769.010

2. Support palm oil public-private investment partnerships.

2007

3. Reduce threats to high conservation value forests and peat swamp ecosystems.

2006

765.416

4. Create a provincial seed certification and distribution program. 5. Improve supply chains and pricing transparency for palm oil production and processing. Palm Oil production in 2009 consisted of smallholder's plantation production: 181,632 Tons, government plantation production: 67,936 Tons, and private plantation production: 233,327 Tons.

In 2010, it consisted of smallholders production: 185,265 Tons, Government plantation production: 69,634 Tons, and private plantation production: 238,927 Tons and the status is still temporary.

Source: Aceh Trade Industry and Cooperative Agency, 2012

Aceh Investment Profile

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INVESTMENT OPPORTUNITIES Although many districts in Aceh have palm oil plantations, only Aceh Tamiang, Aceh Singkil, and Nagan Raya have higher number of crude palm oil (CPO) production that suitable for a big processing industry. The following table shows total production for each district. District/City Simeulue

Planted Area (Ha)

Production (ton)

2,202

217

Aceh Singkil

47,111

110,004

South Aceh

11,339

6,094

7,666

15,107

60,676

92,618

Southeast Aceh East Aceh

-

-

West Aceh

Central Aceh

20,859

63,209

Aceh Besar

1,384

297

Pidie

77

6

Bireuen

v 3,890

2,060

North Aceh

30,083

26,926

Southwest Aceh

21,325

13,898

-

-

Aceh Tamiang

50,755

121,916

Nagan Raya

76,439

90,241

Aceh Jaya

10,144

7,964

Gayo Lues

Bener Meriah

1,300

20

Pidie Jaya

2,714

1,258

Banda Aceh

-

-

Sabang

-

-

Langsa

406

708

Lhokseumawe

206

126

17,421

20,284

365,997

572,953

Subulussalam TOTAL

Table of Planted Area and Production of Palm Oil in Aceh

46

Source: www.bps.go.id : 2013

Aceh Investment Profile


INVESTMENT OPPORTUNITIES

Project: Palm Oil Processing Industry

Aceh Tamiang 50,755 Ha 121,916 Tons

Nagan Raya 76,439 Ha 90,241 Tons Aceh Singkil 47,111 Ha 110,004 Tons

PROJECT PURPOSE Establishing palm oil processing industries (Biodiesel, Fatty Alcohol, Edible Oil, Shortening, SBE, Soap Noodles Plant, Dove Plant, Fatty Acid Plant, NPK Fetilizer Plant, Refinery Plant, Biomass Pellet Production Plant).

INVESTMENT ESTIMATION Factory Development Plan of CPO Production Capacity 30 tons fresh fruit bunch/hour.

Cost 26,449,321 USD

Net Present Value : 8,411,663.48 USD Internal Rate of Return : 23,1% Payback Periode : 6 years, 8 months Aceh Investment Profile

47


INVESTMENT OPPORTUNITIES

Patchouli

48

Aceh Investment Profile


INVESTMENT OPPORTUNITIES

�

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.

Contains the Patchouli Alcohol of 2.5% to 3.3% (the average PA of patchouli in the world is 2.5%). Patchouli is a species of plant from the genus Pogostemon. It is a bushy herb of the mint family, with erect stems, reaching two or three feet (about 0.75 metre) in height and bearing small, pale pink-white flowers. The plant is native to tropical regions of Asia, and is extensively cultivated in Aceh, Indonesia (wikipedia.org, 05/29/2013). Patchouli oils is used as raw material for a number of finished products, such as parfume and modern scented industrial products such as paper towels, laundry detergents, and air fresheners. Patcholi also can be used in antiseptic, pesticide, and as a fixative to bind other essential oils.

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.

Aceh Investment Profile

49


INVESTMENT OPPORTUNITIES 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. District/City

Planted Area (Ha)

Simeulue

Production (ton) -

-

Aceh Singkil

45

2

South Aceh

334

21

1,274

29

-

-

23

17

Southeast Aceh East Aceh Central Aceh West Aceh

114

6

Great Aceh

114

29

Pidie

103

3

Bireuen

11

5

North Aceh

43

28

Southwest Aceh

132

28

Gayo Lues

149

33

Aceh Tamiang

859

20

Nagan Raya

48

9

Aceh Jaya

107

20

Bener Meriah

581

-

Pidie Jaya

6

2

Banda Aceh

7

-

Sabang

-

-

Langsa

-

-

Lhokseumawe Subulussalam TOTAL

-

-

29

1

3,979

253

Table of Planted Area and Production of Patchouli in Aceh

50

Aceh Investment Profile

Source: www.bps.go.id : 2013


INVESTMENT OPPORTUNITIES

Project: Patchouli Processing Industry Aceh Jaya 107 Ha 20 Tons

West Aceh 114 Ha 6 Tons

Gayo Lues 149 Ha 33 Tons

South Aceh 334 Ha 21 Tons

PROJECT PURPOSES • Establishing parfume industry and cosmetics. • Increasing production volume and quality of patchouli.

INVESTMENT ESTIMATION

Cost 1,025,960 USD

Aceh Investment Profile

51


INVESTMENT OPPORTUNITIES

Corn

52

Aceh Investment Profile


INVESTMENT OPPORTUNITIES

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

There is a reason why corn [Zea mays] is the mostproduced 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 usually fed to animals. 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 one of the major producers of corn, we offers opportunities for potential investors to set up a poultry feed industry in Aceh.

Aceh Investment Profile

53


INVESTMENT OPPORTUNITIES The major producers of corn, which are suitable for large-scale processing industries are Southeast Aceh and South Aceh.The following table shows the total production for each district. District/City Simeulue

Intensification

Non Intensification

16

6

Total 22

Aceh Singkil

6

21

27

South Aceh

1,306

117

1,423

31,262

-

31,262

585

362

947

52

47

99

West Aceh

14

211

225

Great Aceh

29

7

36

Southeast Aceh East Aceh Central Aceh

Pidie

216

9

225

Bireuen

460

79

539

1,025

2

1,027

North Aceh Southwest Aceh Gayo Lues Aceh Tamiang

26

-

26

809

14

823 3,594

3,594

-

Nagan Raya

116

7

123

Aceh Jaya

151

35

186

Bener Meriah

346

10

356

19

5

24

-

-

-

Pidie Jaya Banda Aceh Sabang

-

-

-

Langsa

-

3

3

Lhokseumawe

145

17

162

Subulussalam

179

545

724

40,356

1,497

41,853

TOTAL

Table of Planted Area and Production of Corn in Aceh

54

Aceh Investment Profile

Source: www.bps.go.id : 2013


Project: Poultry Feed Industry

INVESTMENT OPPORTUNITIES

Southeast Aceh 31,262 Ha South Aceh 1,423 Ha

PROJECT PURPOSES 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 ESTIMATION

Cost 12,367,320 USD

Aceh Investment Profile

55


INVESTMENT OPPORTUNITIES

Horticulture

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

56

relations, the economy, and the environment in harmony. Linung Buleun in Bener Meriah is very potential for horticultural farm, as it is close to the new hydro power plant and has direct access to seaports in the east coast. The local government provides 35.500 ha of land for potential investors to set up organic horticultural farms in this area. The target is to supply fruits and vegetables for international markets. The very supportive and welcome local community ensures that investments in this area are very promising.

Linung Buleung, Bener Meriah Fruit and Vegetable Field Aceh Investment Profile


INVESTMENT OPPORTUNITIES

Project: Organic Horticulture Industry THE POTENTIAL (tons)

AVOCADO 74,624 MANGGO 270,544 RAMBUTAN 280,994 ORANGE 85,522 JACK FRUIT 81,154 DURIAN 270,449 PAPAYA 148,298 BANANA 689,892 WATERMELON 165,397 STRING BEAN 170,188 CHILI 300,188 CAYENNE PEPPER 195,052 TOMATO 173,573 EGG PLANT 147,778 CUCUMBER 198,629 RED ONION 26,004 GARLIC 772 POTATO 86,154

Bener Meriah Linung Beuleun 25,300 Ha

Source: www.bps.go.id : 2013

PROJECT PURPOSES • Establishing organic farm base on a production system that sustains the health of soils, ecosystems and people. • Selling the products in international markets.

Cost : 1,025,850 USD Aceh Investment Profile

57


INVESTMENT OPPORTUNITIES

Livestock

Livestock are domesticated animals raised in an agricultural setting to produce commodities such as milk and meat. Dairy and livestock farm areas in Aceh is as wide as 1.525.578 Ha. The huge area is significantly feasible for forage-livestock systems, integrated with crop plantation. Opportunities for investment are widely open as there is a significant growing demand for livestock in the South East Asia and the Middle East, especially for halal meat (meat that Muslims are allowed to eat under Islamic Shari’ah). 58

Aceh Investment Profile

Photo: www. agritech.tnau.ac.in


INVESTMENT OPPORTUNITIES

Project: Dairy and Livestock Farm Great Aceh

THE TOTAL POTENTIALS IN ACEH Production = 9,462,222 Kg PROJECT PURPOSES The project involves rearing of both beef and dairy cattle. The main activities of the project would be procurement of irrigation and hay making equipment, construction of back-up livestock farm infrastructure, construction of an animal feeds plant, and processing of the dairy and beef products.

Bener Meriah Uber-uber & Blang Paku 4,166 Ha

INVESTMENT ESTIMATION

Cost 1,025,850 USD

Aceh Investment Profile

59


INVESTMENT OPPORTUNITIES

Fishery

60

Aceh Investment Profile


INVESTMENT OPPORTUNITIES

Idi Port in 2013 Aceh Investment Profile

61


INVESTMENT OPPORTUNITIES

Aceh International Fishing Port Cost 200,000,000 USD

62

Aceh Investment Profile


INVESTMENT OPPORTUNITIES

Banda Aceh Lampulo Fishing Port 51,8 Ha

PROJECT PURPOSE Establishing fishery industries (taking, culturing, processing, preserving, storing, transporting, marketing or selling fish or fish products).

LAMPULO FISHING PORT PRODUCTION 2006 - 2012 (Kg) 2009

7,819,222

2011

2010

6,083,925

2006

5,446,289

2012

6,827,531 6,823,158

2007

4,634,037

2008

4,928,027

Aceh Investment Profile

63


INVESTMENT OPPORTUNITIES

Idi Fishing Port

NO

64

INVESTMENT OPPORTUNITY

1

Block Ice Factory

2

Modern fishery processing industry

CAPACITY 80 tons/day

EXPLAIN

50 ton

Pelagic

3

Shipyard (Wood & fiber)

4 unit

Repairs & Shipyard

4

Fish transportation service (domestic and foreign)

2 unit

Aceh Investment Profile


INVESTMENT OPPORTUNITIES

East Aceh Idi Fishing Port 62,5 Ha

THE TOTAL POTENTIALS IN ACEH 696,117 Tons of Fish PROJECT PURPOSE Establishing fishery industries (taking, culturing, processing, preserving, storing, transporting, marketing or selling fish or fish products).

The Potentials in idi • Total catch of fishermen reached 48.67 tons daily • The number of fishermen as much as 8246 people (Year 2012) • Total fleet of 447 fishing fleets units (Year 2012) • Various Fishing gear reaching 571pieces (Year 2012). INVESTMENT ESTIMATION

Cost 10,000,000 USD Aceh Investment Profile

65


INVESTMENT OPPORTUNITIES

Tourism

Iboih, Sabang Photo: www.uniqpost.com

66

Aceh Investment Profile


INVESTMENT OPPORTUNITIES

Aceh Investment Profile

67


INVESTMENT OPPORTUNITIES

Aceh Surf Competition III Photo by: www.RinaldiAd.com

68

Aceh Investment Profile


INVESTMENT OPPORTUNITIES

2011

2008

2009

2012 1.055.793

2010

2007 609.381

Foreign and Domestic Tourists (2007-2012)

The Potentials • • • •

Ecotourism, Adventure, Beach and Sport Potential tourists are from Europe and Asia.

Tsunami, Heritage dan Education Potential researchers are from Japan and Europe.

Nostalgia Potential tourists are Ex-workers and volunteers from reconstruction-phase post tsunami. Culinary and Handicraft Industry

Aceh Investment Profile

69


INVESTMENT OPPORTUNITIES

Project: Krueng Aceh River Walk

bandaacehtourism.com 70

Aceh Investment Profile


INVESTMENT OPPORTUNITIES

Banda Aceh

FASILITIES • Food Court • Restaurant • Playground • Jogging Track • Mini Port • Amphitheater • Park • Fishing Spot

Investment Cost

10,000,000 USD

Source: Banda Aceh Tourism Agency, 2013 | www.bandaacehtourism.com

Aceh Investment Profile

71


INVESTMENT OPPORTUNITIES

Ulee Lheue Beach

72

Aceh Investment Profile


INVESTMENT OPPORTUNITIES

Aceh Investment Profile

73


INVESTMENT OPPORTUNITIES

Source: Banda Aceh Tourism Agency, 2013 | www.bandaacehtourism.com

74

Aceh Investment Profile


INVESTMENT OPPORTUNITIES

Project: Ulee Lheu Beach Parks & Recreation

Banda Aceh

FACILITIES • Food Court • Restaurant • Playground • Jogging Track • Mini Port • Park • Fishing Spot

Investment Cost

5,000,000 USD

Aceh Investment Profile

75


INVESTMENT OPPORTUNITIES

Hydro Power Plant Project 2013-2026

No.

1

District/City

North Aceh

Project Name

Capacity (MW)

Invesment Estimation (Million USD)

Jambuaye-3

Wh Jambu Air

37.2

111.6

Jambuaye-5

Kr. Jambuaye

181.8

545.4

Bidin/Jambuaye

Kr. Jambuaye

246

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

1284

Jambo Papeun-2

Kr. Jambo Papeun

95.2

285.6

5

South Aceh

Kluet

Kr. Kluet

141

423

Sibubung-2

Kr. Sibubung

121.1

363.3

Teripa-3

Kr. Teripa

172.6

517.8

Teripa-4

Kr. Teripa

306.4

919.2

6

Nagan Raya

7

West Aceh

8

Central Aceh

Meureubo-1

Kr. Meulaboh

82.1

246.3

Woyla-2

Kr. Woyla

274

822

Pameu

Kr. Pameu

160.6

Peusangan

Kr. Peusangan

90

481.8 270

9

Southeast Aceh

Dolok-1

Kr. Dolok

32.2

96.6

10

Aceh Jaya

Teunom-2

Kr. Teunom

288.2

864.6

Total

76

Location

Aceh Investment Profile

2862.8

8,588.40


INVESTMENT OPPORTUNITIES

1 10

3

8

7

4

6 2

5

9

Source: Aceh Mining & Energy Agency, 2013

Aceh Investment Profile

77


INVESTMENT OPPORTUNITIES

Project: Jambo Aye Multipurpose Reservoir Photo: www.hrwc.org

78

Aceh Investment Profile


INVESTMENT OPPORTUNITIES

North Aceh Jambo Aye

PROJECT PURPOSES Establishing Irrigation 19.50 HA and Hydropower Plant 160 MW/580 MWH

Cost 539,280,000 USD Source: Aceh Mining & Energy Agency, 2013

Aceh Investment Profile

79


INVESTMENT OPPORTUNITIES

Geothermal Power Plant Project 2013-2026

No

District/City

Sabang

2

Great Aceh

3

Pidie

25

-

-

-

73

50

-

185

165

Alue Lhong – Beungga

100

-

-

Rimba Raya

100

‘Ie Seum – Krueng Raya Seulawah Agam Alur Canang Tangse

Central Aceh

6

East Aceh

8

Unexpected

Jaboi – Keuneukai

5 7

Hypothesis

Lho’ Pria Lot

Bener Meriah

Aceh Tamiang Gayo Luwes

Simpang Balik

Gunong Geureudong

Aceh Investment Profile

50 -

25

25

100

Silih Nara

100

Beurawang Buaya

25

Meranti Kafi

G. Kembar

Dolok Perkirapan

The Total Potentials

80

Energy Reserves (Mwe)

Speculative Iboih

1

4

Objects

Energy Potential (Mwe)

25

25

-

63 -

-

-

-

120 -

-

-

-

-

92

625

533

25

-

-

-

-

-

-

-

-

-

-

-

-

-

-

215


INVESTMENT OPPORTUNITIES

1 2 3 5

6

4

7 8

Source: Aceh Mining & Energy Agency, 2013

Aceh Investment Profile

81


INVESTMENT OPPORTUNITIES

Project: Bener Meriah Geothermal Power Plant

Investment Feasibility The power for the district of Bener Meriah is supplied from the 150kV transmission Aceh - Sumatra interconnection system from North Sumatra. The power supply is only able to serve 207 villages (89.22%) of the total 232 villages. A total of 25 village have not been served yet.

82

Aceh Investment Profile

INVESTMENT ESTIMATION The investment cost to build a geothermal power plant in Burni Telong is = 2,770 [USD / kW] x 104,000 [kWe] =

288,080,000 USD

Charges for operation and maintenance = 0.022 [USD / kWh] x 104,000 [kWe] = 2.288 [USD/hour]


INVESTMENT OPPORTUNITIES

Bener Meriah

Source: BKPM, 2013 | www.bkpm.go.id

Photo: www.renewablepowernews.com

Aceh Investment Profile

83


INVESTMENT OPPORTUNITIES

Roll-on/Roll-off Cargo Ferry Service

Photo: www.worldmaritimenews.com

PROJECT PURPOSES Establishing Ro-Ro Freight Ferry Shipping 84

Aceh Investment Profile

INVESTMENT ESTIMATION

Cost 1,025,960 USD


INVESTMENT OPPORTUNITIES North Aceh Krueng Geukuh Sea Port Langsa Kuala Langsa Sea Port

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

Frequent Route of PT. Pelayaran Alkan Abadi Loading Port

Destination Port

Ship Name

Tg. Priok, Jakarta

Malahayati, Aceh

Hirondex V.9

Malahayati, Jakarta

Tg. Priok, Jakarta

Hirondex V.10

Aceh Investment Profile

85


INVESTMENT OPPORTUNITIES

Metal Mining

Photo: www.proenergi.com

86

Aceh Investment Profile


INVESTMENT OPPORTUNITIES

NO

INDICATION

LOCATION SILIH NARA, Central Aceh

0,25 - 0,45 Gr/Ton

TAPAKTUAN, SOUTH ACEH

0,01 - 6,81 ppm

BLANG KEJEREN, GAYO LUES 1

Gold

POTENTIAL

SEUNAGAN, NAGAN RAYA

LHOONG, GREAT ACEH

0,19 - 0,28 Gr/Ton 0,3 - 0,5

PULO ACEH, GREAT ACEH

0,14 - 0,23 ppm

SERBAJADI, EAST ACEH

Cu : 0,23 – 2 %

RIKIT GAIB, SOUTHEAST ACEH

Cu : 10 – 470 Ppm

SILIHNARA, Central Aceh 2

Copper

Cu : 356 – 568 Ppm

TAPAKTUAN, SOUTH ACEH

Cu :

LHOONG, GREAT ACEH 3

Molibdenum

4

Iron Sand

5

Iron Ore

Gr/m3

2,9 - 22,5 ppm

1 – 1730 Ppm

Cu : 150-1520 Ppm

SILIH NARA, Central Aceh

170 – 291 Ppm

-, GREAT ACEH

-

LHOONG, GREAT ACEH

-

-, BIREUEN

BABAH ROT, WESTEAST ACEH

-

Source: Aceh Energy and Mining Agency, 2013

Aceh Investment Profile

87


INVESTMENT OPPORTUNITIES

Non-Metal Mining

Photo: www.aggman.com

88

Aceh Investment Profile


INVESTMENT OPPORTUNITIES

NO

MINERAL

LOCATION

POTENTIAL/ TON

Andesit

Great Aceh West Aceh South Aceh Seouteast Aceh North Aceh Central Aceh

3.019.450.000 2.081.945.000 2.584.342.000 38.053.159.000 38.892.000 11.603.849.000

2

Limestone

East Aceh Central Aceh Great Aceh West Aceh Southeast Aceh South Aceh Pidie

426.970.000 12.182.992.000 8.900.320.000 35.138.651.000 46.508.534.000 7.495.749.000 986.957.000

3

Bentonite

East Aceh Central Aceh

4

Dolomite

East Aceh

5

Kaolin

Southeast Aceh Sabang

12.383.000 300.000

6

Kuarsit

South Aceh Southeast Aceh

64.955.000 1.753.588.000

7

Granite

East Aceh South Aceh Central Aceh

1

8.730.000 170.000.000 1.192.272.000

804.532.500 6.616.845.000 23.280.915.000

Source: Aceh Energy and Mining Agency, 2013

Aceh Investment Profile

89


INVESTMENT OPPORTUNITIES

Project: Laweung Cement Plant

Capacity: 750,000 tons/year

Cost 370,828,800 USD Existing Company PT Lafarge Cement Indonesia, Plant HR Dept Jl. Banda Aceh - Meulaboh KM 17 Lhoknga PO BOX 30 - Banda Aceh Email: semen.andalas@id.lafarge.com

90

Aceh Investment Profile


INVESTMENT OPPORTUNITIES

Pidie Laweung 500 Ha

Photo: PT. Lafarge Cement Indonesia’s cement-plant, Lhoknga, Great Aceh. Aceh Investment Profile

91


INVESTMENT OPPORTUNITIES

Freddy Cafe, Sabang 92

Aceh Investment Profile


4 INDUSTRIAL AND TRADING ESTATE


Aceh Industrial Area Plan

Reserved Land Area : 552.663 sqm

94

Aceh Investment Profile


Location: Ladong, District of Great Aceh (about 18 Km to Banda Aceh and 9 Km to Port of Malahayati).

Great Aceh 556.663 sqm (55 Ha)

Consisted of: • 19 lots for small scale industries (0.10 Ha – 0.30 Ha). • 23 lots for medium scale industries (0.30 Ha – 0,50 Ha). • 10 lots for large scale industries (0.50 Ha – 1 Ha).

Aceh Investment Profile

95


Sabang Free Trade & Free Port Zone

96

Aceh Investment Profile


Sabang Bay

Aceh Investment Profile

97


Sabang Sea Port

98

Aceh Investment Profile


Facilities: Freeport Has 1.400m length, 800m wide, approximately 53m depth, and 177 Ha pool harbor. Free Trade Zone The location is strategic for international trading. Free Tax Has advantage of free duty under Indonesian law. The Potentials: • Trade and Industry; • Tourism; • Fisheries.

Aceh Investment Profile

99


Pango Bridge, Banda Aceh 100

Aceh Investment Profile


5 ONE-STOP-SERVICE

Aceh Investment Profile

101


Get investment approval in just 4 days

102

Aceh Investment Profile


There are procedures to invest in indonesia, in accordance with indonesian laws and regulations, which mainly consist of the establishment of legal entities, licensing and facilities recommendation. The steps of procedures are divided into five phases as follows: 1. Establishing a Business and Conducting Registration. 2. Obtaining the Preparation and Construction License. 3. Obtaining Licenses/Permits for Investment Implementation and Operational Activity. 4. Employment of Foreign Workers. 5. Obtaining Investment Facility.

For investment inquiries in Indonesia, please contact : Investor Relations Unit (IRU) P : +62 21 5292 1329-30 +62 21 5292 1334-35 E : info@bkpm.go.id

You may also contact One-Stop-Service Agency (BP2T) at Aceh Governor’s Office: Jl. T. Nyak Arief No. 219, Banda Aceh – Indonesia P : +62 651 7554075 F : +62 651 7551333

In particular, all licensings in the Sabang Free Port and Free Trade Zone are issued by the Sabang Zone Management and Development Agency (BPKS). Jl. T. Panglima Polem, Sabang. P : +62 652 22144 F : +62 652 22143 W: www.bpks.go.id Aceh Investment Profile

103


We welcome you to invest in amazing Aceh

Aceh Investment Coordinating Board

Jl. Ahmad Yani, No. 39, Banda Aceh, 23122. Telp. 0651 23170, Fax 0651 23171. investasi@acehprov.go.id investasi.acehprov.go.id acehinvestment.com




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