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
7
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
Aceh Investment Profile
13
FACTS AND FIGURES
Malahayati Sea Port Photo: www.visitaceh.asia
14
Aceh Investment Profile
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
Aceh Investment Profile
15
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
Aceh Investment Profile
17
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
Aceh Investment Profile
23
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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25
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
Aceh Investment Profile
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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
41
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
45
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
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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
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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
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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
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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
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INVESTMENT OPPORTUNITIES
Fishery
60
Aceh Investment Profile
INVESTMENT OPPORTUNITIES
Idi Port in 2013 Aceh Investment Profile
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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
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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
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INVESTMENT OPPORTUNITIES
Tourism
Iboih, Sabang Photo: www.uniqpost.com
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Aceh Investment Profile
INVESTMENT OPPORTUNITIES
Aceh Investment Profile
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INVESTMENT OPPORTUNITIES
Aceh Surf Competition III Photo by: www.RinaldiAd.com
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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
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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
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INVESTMENT OPPORTUNITIES
Ulee Lheue Beach
72
Aceh Investment Profile
INVESTMENT OPPORTUNITIES
Aceh Investment Profile
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INVESTMENT OPPORTUNITIES
Source: Banda Aceh Tourism Agency, 2013 | www.bandaacehtourism.com
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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
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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
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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
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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
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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
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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.
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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
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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
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INVESTMENT OPPORTUNITIES
Metal Mining
Photo: www.proenergi.com
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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
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INVESTMENT OPPORTUNITIES
Non-Metal Mining
Photo: www.aggman.com
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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
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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
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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
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Sabang Free Trade & Free Port Zone
96
Aceh Investment Profile
Sabang Bay
Aceh Investment Profile
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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
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Pango Bridge, Banda Aceh 100
Aceh Investment Profile
5 ONE-STOP-SERVICE
Aceh Investment Profile
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Get investment approval in just 4 days
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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
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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