Aceh Investment Profile 2017

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Aceh Investment Profile



DPMPTSP ACEH

Dinas Penanaman Modal dan Pelayanan Terpadu Satu Pintu Aceh

Aceh Investment and One Stop Services Agency 2017


Contents v — Invest in Amazing Aceh vi — Let’s Feel Their Experiences on Investment vii — Our Vision & Mission 1 — WHY Aceh? 5 — Aceh at Glance 6 — Facts about Aceh

24 26 28 30 32

— Airport — Seaport — Roads — Electricity — Water

35 — INVESTMENT OPPORTUNITIES 36 — Infrastructure

7 — Area 8 — Aceh Administrative Region

36 — Toll Road 36 — • Toll Road Banda Aceh-Binjai (North Sumatera)

10 — Population

39 — • Toll Road Sigli Banda Aceh 40 — Energy

12 — Economic Indicators 14 — Spatial Planning 16 — Realization of Investment 17 — Facts and Figures 20 — Employment 22 — Hotels in Banda Aceh, the Capital City of Aceh 23 — Culinary

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24 — Infrastructure Support

Aceh Investment Profile 2017

40 — Hydropower 44 — Geothermal Projects 49 — Agro Industry 49 — Plantation 49 — Palm Oil 55 — Coffee 64 — Livestock 64 — Aceh Besar Beef Industry Development Project


66 — Fishery 66 — Idi Fishing Port 69 — Sawang Ba’u Fishing Port 70 — Tourism 70 — Simeulue Marine Tourism Development 70 — Babang Diving and Snorkelling Centre 72 — Tourism Potential of Gayo Lues 76 — Banda Aceh Tourism Development Project 76 — Banda Aceh Central 80 — Special Economic Zone (SEZ) Arun Lhokseumawe 88 — Sabang Free Port and Free Trade Zone (FTZ) 90 — Sabang Tourism Opportunities 90 — Iboih Beach 91 — Lhok Weng Beach 92 — Sabang Fair

93 — CT-3 Port 94 — Sumur Tiga Beach 95 — Jaboi Geothermal Site 96 — Bango 97 — Balik Gunung 98 — Lampulo International Fishing Port 100 — Ease of doing Business in Aceh 100 — Investment Procedure & Licensing 101 — Regulations 101 — Incentives 102 — One Stop Service for Permits and Licenses 103 — Business Licensing Procedure 104 — Mechanism for Complaints from Businessmen in One Stop Service Office (DPMPTSP) 105 — let's start business in aceh 107 — Contact Aceh Investment Profile 2017

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Irwandi Yusuf Governor of Aceh

We understand that the private sector is the key in achieving our long term goal to increase

economic growth and greater job opportunities for the people. Our role is to create conducive

environment that would attract investors to do their businesses in Aceh.

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Aceh Investment Profile 2017


Invest in Amazing Aceh Located at the northen tip of Sumatra, Aceh offers strategic economic prospects for regional logistic hub along with its abundant natural resources that include fisheries, plantations, agriculture and renewable energy. Aceh is a special autonomy region allowing the province to have its own regulations and have direct cooperation with foreign representatives. Our regional government has been focusing on the development through cooperation with private sectors. We understand that the private sector is the key in achieving our long term goal to increase economic growth and greater job opportunities for the people. Our role is to create conducive environment that would attract investors to do their businesses in Aceh. Since we took office in July 2017, our team has been working tirelessly on putting our vision and mission into an integrated five year economic plan which include priorities for renewable energy and our commitment to develop low emission industries with minimum environmental impacts. We are also moving toward expanding production from our small and medium enterprises (SMEs) and encouraging young entrepreneurs to engage in creative industries. With the support from central government, we have managed to simplify procedures for investors to set up their business in the * Domestic and Foreign Direct Investment Realization in Quarter II and January - June 2016, Bkpm

province in less than three working days. Beside that, investors will be given incentives and tax reduction during the first five years of the business in our Special Economic Zone of Arun Lhokseumawe. The process of acquiring land for foreign ownership also have been eased up as it is affirmed by the President Joko Widodo through various economic stimulant packages. Our strong cultural identity and values have given us great opportunities to complement the growing demand of halal food production in neighbouring countries, and halal tourism especially among regional cooperation entity of Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT), in which Aceh as a member. This year, we have seen an increasing amount of capital flow from domestic and foreign investors to Aceh. The province is on the national top ten list in term of regional investment realisation*. We always looking forward to assist new investors, both local and foreign to expand their businesses and grow in Aceh. Last but not least, we welcome you to visit us and invest in amazing Aceh.

Irwandi Yusuf Governor of Aceh

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Let’s Feel Their Experiences on Investment PT Senagan Energi is a company engaged in power generation using water resources from Krueng Isep River. The river is located in Meunasah Pante Ara Village Beutong District, Nagan Raya District, The Krueng Isep hydropower plant has a capacity of 20 Megawatts or equivalent to electricity consumption of twenty thousand households. This project will provide sufficient electrical supply in Aceh, particularly Nagan Raya. The availability of ample power supply is important for potential investors to start their business in Aceh. The construction of the Krueng Isep hydropower project that runs smoothly and rapidly is one of the proof of conducive investment climate in the region of Aceh. With the slogan of Aceh Gemilang, State Electricity Corporation (PLN) of Aceh Region together with districts and provincial governments continuously provide full support in terms of ease doing business including licensing. This is the key to achieve sustainable economic growth in building a more prosperous Aceh. Salam Aceh Gemilang, PT Senagan Energi Adi Dharmanto The government of Sabang and BPKS have supported tourism development in Sabang and put serious efforts to improve infrastructure as well as to maintain clean environment and hospitality for tourists. The investment potentials in hotel and resort development in Aceh especially Sabang is very promising. Moreover, with the increase visit of tourists to Sabang, our resort has become one of the best places to enjoy tourist attractions in Sabang. We expect the government will continue to sustain and facilitate the private sectors for ease doing business in Sabang (Weh Island), which is zero kilometre of Indonesia. Warmest regards, Stay with us and feel like home Mata ie Resort Tomas Kurniawan

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Aceh Investment Profile 2017


Our Vision “Aceh as one of the leading investment destinations in Indonesia�

Mission Accelerate bureaucratic reform on investment Establish the image of Aceh as the main investment destination Integrate plan and control of investment among Central Government, Aceh Government, Local Government, private sector, banking, academics and community. Enhance the quality of licensing and non licensing services

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Ph u k e t a

n S

I n d i a n

A n d a m

e

a

O

c e

a

n

Aceh Province is located between 01058’37, 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.

119 Islands

35 Mountains

(Several Volcanoes)

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Aceh Investment Profile 2017

North Sumatera Province

73 Rivers

1

Large Crater Lake


THAILAND

WHY Aceh? MAL

w You can’t beat our location. we are at the most west of Sumatera. A Y SweI A are close to most of ASEAN member with 500 million consumers, not to mention your business customers.

w Our Infrastructure is ready for connecting business. Our international airport, top-ranked seaport, high-speed road and broadband networks are second to none. Kuala Lumpur w We have prominent commodities for your industries. Arabica coffee from Gayo Highland, cocoa from Pidie Jaya and fishery in Banda Aceh are among the best in the class. w We have workforce for your need. Our education is supported by 20% of our annual budget to help communities manage change in their workforce development system. Including creating one-stop career centers and developing the young and skilled workforce. w We have an awesome business climate. Just ask PT. Lafarge Cement Indonesia and dozens of other national and multinationals thriving in Aceh. We roll out the red carpet by offering confidential services to make staring up. Rolling out and expanding your company are easy in Aceh.

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2

Aceh Investment Profile 2017


AcEh

Aceh Investment Profile 2017

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4 4

MAIN MAIN FORCES FORCES THAT THAT MAKE MAKE ACEH ACEH VERY VERY PROMISING PROMISING

1 Laws and regulations

2 Strategic

3 Rich in natural

4 Human capital

that are friendly to investment

resources

4

Aceh Investment Profile 2017

geographical position


Aceh at Glance Aceh is an amazing destination to invest. There are four main forces that make Aceh very promising: (1) laws and regulations that are friendly to investment, supported by Aceh status as a special autonomic province (2) strategic geographical position, (3) rich in nature resources, and (4) human capital. We have a wider authority to govern ourselves than other provinces in Indonesia, moreover we have the privilege to enter a direct agreement with foreign representatives. We

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POTENTIAL SECTORS

consider investment as one of the key instruments to alleviate the economic development in Aceh with the focus of four potential sectors (1) agro-industry, (2) energy and infrastructure, (3) tourism and Business Development Zones. We already have good foundations in strategic sectors. Coffee, patchouli, cacao, coconut, and palm oil are just a short list. Furthermore, fisheries also a potential investment to explore in Aceh. To accelerate investment in region as well as to improve the investment climate, we are working on several important issues to resolve, such as deregulation on licensing acceleration, better security and infrastructure. Therefore, Aceh will be perfect for your future investment.

1 Agroindustry

2 Energy &

3 Tourism

4 Business

Infrastructure

Development Zones

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Facts about Aceh CAPITAL: Banda Aceh

99.21% 0.58% 0.11% 0.01% 0.08%

RELIGION: Islam Protestants Catholics Hinduism

Buddhism

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LANGUAGE: Indonesian

Local Languages

SOURCE: ACEH IN FIGURES, ACEH CENTRAL BUREAU OF STATISTIC (BPS) 2015

70.65%

8.94%

7.22%

3.29%

2.13%

1.49%

Acehnese

Javanese

Gayo

Batak

Alas

Simeulue

1.40%

1.11%

1.74%

1.99%

1.99%

Aneuk Jamee

Tamiang

Singkil

Minangkabau

others

SOURCE: DEMOGRAPHY OF INDONESIA’S ETHNICITY BY ANANTA ET AL, 2015

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Aceh Investment Profile 2017


Area The Province of Aceh lies between 01o 58’ 37,2” – 06o 04’ 33,6” North Latitude and 940 57’ 57,6” – 98o 17’ 13,2” East Longitude with an average height of 125 meter above sea level. Aceh Province consists of 18 districts and 5 cities, 289 sub district, 779 mukim (an area consists of several villages), and 6.474 villages.

Aceh bordered on the north and the east by the Malacca Strait, the south by the Province of North Sumatera and the West by the Indonesian Ocean. The only land connection is with North Sumatera. Total area of Aceh: 5,677,081 ha or 57,956,00 km2 with forest as the widest area around 2.270.080 ha, followed by the plantation area of 800,401 ha. While the industrial area has the smallest area. (bps.go.id)

5,677,081 ha

2,270,080 ha

Total Area

Forest

800.401 ha

3.298 ha

Plantation

Residential Area 125.439 ha

2.21 %

Industry 3.298 ha

0.07 %

Industrial Area

Dry land farming Mining 139.049 ha 198.000 ha

2.45 %

3.49 %

Horticulture 305.624 ha

5.38 %

Rice fields 397.512 ha

7.00 %

Land Use Plantations Cleared Land 1.001.081 ha 8.433 ha

17.63 %

0.15 %

Pasture 232.023 ha

4.09 %

Others Forest Inland Water 789.171 ha 2.270.080 ha 206,741 ha

13.90 % 39.99 % 3,64 %

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Sabang

Aceh Administrative Region

Banda Aceh

7

2

Subdistrict Mukim

Aceh Besar

Sabang 18

17

West Aceh

Aceh Besar 68

604

Nagan Raya

Aceh Jaya 9

21

172

West Aceh

Nagan Raya 10

30

12

32

322

222

Aceh Tengah

Southwest Aceh 9

20

14

18

295

132

South Aceh

Simeulue 10

29

18

43

260

138

Aceh Singkil SOURCE: ACEH DEVELOPMENT PROFILE, ACEH CENTRAL BUREAU OF STATISTIC (BPS) 2014

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Bireuen

90

Village

23

Pidie Jaya

Aceh Jaya

Banda Aceh 9

Pidie

11

16

116

Simeulue


Pidie Jaya

Pidie 23

94

727

8

32

222

Bireuen 75

17

Lhokseumawe

Lhokseumawe

4

9

68

North Aceh Bener Meriah

609

North Aceh East Aceh

27

67

852

Bener Meriah Aceh Tengah

Langsa

10

11

232

Langsa Aceh Tamiang Gayo Lues

Southwest Aceh

6

5

66

East Aceh 24

53

511

Aceh Tamiang South Aceh

12

27

213

Southeast Aceh

Gayo Lues 11

25

136

Southeast Aceh Subulussalam

16

51

385

Subulussalam Aceh Singkil

5

8

74

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Population The Aceh population was 5,090,415 people in 2015 with growth rate of 1,94 percent.

2,562,567 Males

2,527,848 Females

SOuRCE: ACEH DEvELOPMENT PROFILE 2016

Total

5,090.415 People

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Aceh Investment Profile 2017


photo by Yusefendy

Bustanussalatin Park, Banda Aceh. Aceh Investment Profile 2017

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Economic Indicators SOuRCE: ACEH REGIONAL DEvELOPMENT PLANNING AGENCy 2015 - 2017

5.15%

4.18 % 2012

2013

7.31 % Inflation (%)

129 US$ 2013

1$ = IDR 12.000

12

4.44% 2014

8.09%

Aceh Investment Profile 2017

2015

4.31%

Economic Growth (%)

Year

2016

6.24%

3.18% 2012

Minimum Wage US$

4.82%

2013

3.95% 2014

146 US$ 158 US$ 2014

2015

2015

177 US$

2016

Year

2016

208 US$

Year

2017


Volume and Value Export Volume (Kg)

US$

Year

2,149,740,405.50 1,288,051,434.00 132,024,218.00 477,554,010.34

1,145,957,481.00

Kg

Kg

Kg

Kg

1,215,575,159

995,741,604

815,371,261

391,198,356

121,358,914

2011

2012

2013

2014

2015

5,028,813.00

1,603,125.44

1,508,000.00

1,352,613.00

US$

US$

US$

US$

Kg

US$

Volume and Value Import Volume (Ton)

88,994.80

Ton US$

Year

Ton

Ton

Ton

Ton

1,846,832.21

5,315,004.23

1,922,065.81

856,558.00

525,313.49

2011

2012

2013

2014

2015

US$

US$

US$

US$

US$

SOuRCE: ACEH INDuSTRIAL & TRADE OFFICE 2016

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Spatial Planning

2.934.602 ha cultivated and Living Areas Those areas include production forests, community forests, agricultural lands, lands for fisheries, mining, industry, tourism, housing and other living functions.

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Aceh Investment Profile 2017

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.


Strategic Areas:

3. Provincial Capital City, Banda Aceh 1. The Centre of National Strategic Activities (PKSN): Sabang, a Free Port and Free Trade Zone.

2. National Activity Centre: Lhokseumawe and greater area (PKN)

Cultivated Area Protected Area Conservation Area

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Realization of Investment

Photo: Hydropower Peusangan Lot IV Bireuen Sub Station HV Equipment Work Inspection

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Facts and Figures Investment Realization 2012-2016 2012

26,133,215

114,889,419

141,022,634

2013

165,101,527

382,330,821

547,432,347

2014

31,541,856

561,491,578

593,033,434

2015

55,829,946

402,410,303

458,240,249

2016

87,804,993

283,343,204

371,148,197

$

Rp

Rp

Investment Realization Note :

2011-2012 2013 2014 2015 2016

Foreign Direct Investment

Domestic Investment

Total Investment Realization

1 USD = IDR 9,000 1 USD = IDR 9,300 1 USD = IDR 10,500 1 USD = IDR 12,500 1 USD = IDR 13.400

Big Five Foreign Direct Investment (FDI) by Countries of Origin, 2016 The People’s Republic of China

Malaysia

Joint Countries

Australia

France

70,4 million 51,7 million 32,1 million 26,4 million 27,8 million US$ US$ US$ US$ US$ Aceh Investment Profile 2017

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Big Five Foreign Direct Investment (FDI) by District/City (2016)

South Aceh

Nagan Raya

Gayo Lues

Aceh Besar

Sabang

70,4 million US$

5,5 million US$

4,9 million US$

3,0 US$

1,9 million US$

Big Five Foreign Direct Investment (FDI) by Sectors (2016)

Electricity, Gas & Water

Other Services

Hotel & Restaurant

Food Crops & Plantation

Trade & Services

81,8 million 2,4 million 1,8 million 577.5 thousand 553.2 thousand US$ US$ US$ US$ US$ Employment by Foreign Direct Investment Realisation: (Indonesian + Expatriates)

? ?

Male Female

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Aceh Investment Profile 2017

4,808

Expatriates

4,092

Total of Projects

687

? ?

29 42


Big Five Domestic Investment by District/City (2016)

Lhokseumawe

Rp

84,1 million

North Aceh

Rp

57,9 million

Nagan Raya

Rp

33

Pidie

Rp

million

Central Aceh

32,7

Rp

million

26,8

million

Big Five Domestic Investment by Sector (2016)

Electricity, Gas & Water

Rp

90,6 million

Chemical Industry & Pharmacy

Rp

54,3

million

Food Crop and Plantation

Rp

47,6 million

Mineral Industry Non Metal

Rp

32,7 million

Other Services

Rp

17

million

Employment by Domestic Investment Realisation: (Indonesians +Expatriates) ? ? Indonesian Male Female

23,946 20,936

Expatriates Total of Projects

? ?

32 346

2,978

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Employment The Government of Aceh provides 20% of its annual budget for human capital, so they can be your partners in business.

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Aceh Investment Profile 2017


Labour Force by Distric/City, 2012-2014 District/City Simeulue Aceh Singkil South Aceh Southeast Aceh East Aceh Aceh Tengah West Aceh Aceh Besar Pidie Bireuen North Aceh Southwest Aceh Gayo Lues Aceh Tamiang Nagan Raya Aceh Jaya Bener Meriah Pidie Jaya Banda Aceh Sabang Langsa Lhokseumawe Subulussalam 2014 2013 2012

Working Labour 30.655 45.208 98.112 90.549 175.182 93.547 83.349 159.789 187.924 191.091 217.174 53.620 43.662 113.924 68.505 39.492 70.958 63.592 112.067 14.753 64.983 75.914 29.262

Unemployed Labour 2.566 5.258 1.936 1.562 15.059 3.880 8.770 10.952 10.909 2.684 38.011 6.744 5.229 4.377 3.660 1.570 1.087 710 10.639 54 1.319 85 592

2.123.312

137.653

1.978.491

130.383

1.926.173

141.067

SOURCE: ACEH IN FIGURES, ACEH CENTRAL BUREAU OF STATISTIC (BPS) 2015

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★★★

Hotels in Banda Aceh, the Capital City of Aceh

★ ★★

★★

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1

● Hermes Palace Hotel ● Grand Nanggroe Hotel ● ● ● ● ● ●

Sulthan Hotel International Oasis Atjeh Hotel The Pade Hotel Grand Permata Hati Grand Arabia Hotel Mekkah Hotel

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● ● ● ● ● ●

Rasa Mala Hotel Sei Hotel Kumala Hotel Hotel 61 Kuala Radja Hotel Mars Hotel

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● ● ● ● ● ● ●

Medan Hotel Madinah Hotel Diana Hotel Hip Hop Hotel Lading Hotel Wisma PMI 88 Hotel

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Aceh Investment Profile 2017


Mie Aceh

Culinary Aceh is well-known for its culinary that has a distinctive flavour with a bland of spices such as Sate Matang, Mie Aceh (noodle), kuah Pliek u, kuah Belangong and others.

Sate Matang

Moreover, as a main coffee producer in Indonesia, you will find a thousand of modern and traditional coffee shop in Aceh that offers Robusta and Arabica Coffee especially Gayo Arabica.

Gulai Ayam

Coffee

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Infrastructure Support 2 Maimun Saleh Airport Sabang

Airport

1 International Airport Sultan Iskandar Muda Banda Aceh

3 Malikussaleh Airport North Aceh

Rembele 9 Airport Bener meriah Cut Nyak Dhien 4 Airport Nagan Raya

Kuala Batee Airport 5 Southwest Aceh T. Cut Ali 6 Airport South Aceh Lasikin Airport 8 Sinabang

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Aceh Investment Profile 2017

Hamzah Fanshuri 7 Airport Singkil


Total Air Freight & Passengers of Sultan Iskandar Muda Airport in 2016 Flight

Flights

Arrival

Passengers

Baggage

Cargo (kg)

Post

KG

Departure

Total

3,679

7,372

775.060

5,576,671

3,994.057

80,688

784

1,561

156,993

1,233,982

30,701

0

4,463 8,933

932.053

6,810,653

4,025,264

80,688

3,693 Domestic

777 International Total

4,470

SOuRCE: ACEH TRANSPORTATION OFFICE 2016

Air Asia

Firefly

Lion Air

Batik Air

Garuda Indonesia

Susi Air

Citilink

Photo: Sultan Iskandar Muda International Airport Aceh Investment Profile 2017

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Seaport Balohan Sabang

Krueng Geukuh North Aceh

Calang

Meulaboh

Susoh South Aceh Sinabang

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Aceh Investment Profile 2017

Singkil

Malahayati Aceh Besar

Kuala Langsa


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Roads

Provincial Road National Road

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Photo: National Road, Lhok Seudu, Aceh Besar

Regencial Road

16,466.84 Km

Provincial Road

1,580,42 Km

National Road

1,803,35 Km Aceh Investment Profile 2017

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Electricity Aceh North Sumatra Interconnection

Gas engine power plant Arun Lhokseumawe Peusangan Hydro Power

Nagan Raya Steam Power

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Aceh Investment Profile 2017


343 MW

Aceh-North Sumatra Interconnection

2x110 MW

Nagan Raya Steam Power Plant

200 MW

Gas engine power plant Arun Lhokseumawe

88 MW

Peusangan Hydro Power Plant

capacity

Tariff/KWh IdR

USd

1,300 VA

1,409.16

0.12

2,200 VA

1,409.16

0.12

3,500 VA - 5,500 VA

1,409.16

0.12

6,600 VA above

1,409.16

0.12

6,600 VA - 200 KVA

1,409.16

0.12

More than 200 KVA

1,083.92

0.09

30,000 KVA above

970.35

0.08

6,600 VA - 200 KVA

1,409.16

0.12

More than 200 KVA

1,083.92

0.09

Kurs $ 1 = IDR. 12,000 SOuRCE : PT. PLN (PERSERO) REGION ACEH

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Water

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Aceh Investment Profile 2017


Illustration

dISTRIcT/cITY

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 IN FIGuRES, ACEH CENTRAL BuREAu OF STATISTIC (BPS) 2015

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Photo: Coal Mining of PT. MIFA Bersaudara, West Aceh.


InvestMent oPPoRtunities

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Infrastructure Toll Road • Toll Road Banda Aceh-Binjai (North Sumatera)

Total length: 158.56 km Route: Banda Aceh - Aceh Besar - Sigli - Mereudu - Bireuen - LhokseumaweLhoksukon - Idi - Kuala Simpang – Binjai (North Sumatera) Executor: PT. Hutama Karya

Illustration images

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Aceh Investment Profile 2017


Project Location 419+500 - 492+577.5

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Toll Route Banda Aceh - Medan (Binjai)

Lhokseumawe 284+500

Banda Aceh 493+700

SIGLI/ IC Padang Tiji 419+500 419+500

Langsa

149+500

Binjai

039+500

Illustration images

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Aceh Investment Profile 2017


• Toll Road Sigli - Banda Aceh Length: ± 74,2 km Route: Banda Aceh – Aceh Besar - Pidie

Toll Road Sigli - Banda Aceh

IC Kuta Baro IC Blangbintang

IC Indrapuri IC Jantho

IC Seulimum IC Padang Tidji

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Energy Hydropower 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

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Aceh Investment Profile 2017

these have potential for hydropower. The Energy and Mineral Resources Office and PT. PLN (The National Power Company) has conducted surveys and identified rivers with a potential for hydropower (PLTA) and Mini Hydro (PLTMH) spread in 9 districts which can produce around 3.898 MW.


Hydropower Potentials NO

district city

Projects

Location

1

Pidie Jaya

Bracan

Krueng Beuracan

2

North Aceh

Jambuaye-5

3

Bener Meriah

4

capacity (MW)

Status

63

No applicant yet

Kr. Jambuaye

182

No applicant yet

Peusangan

Kr. Peusangan

89

No applicant yet

East Aceh

Peureulak

Kr. Peureulak

35

No applicant yet

5

South Aceh

Sibubung 2

Kr. Sibubung

121

No applicant yet

6

West Aceh

Woyla-3

Kr. Woyla

43

No applicant yet

Woyla-4

Kr. Woyla

9

No applicant yet

60

No applicant yet

161

No applicant yet

7

Southwest Aceh

Lama Rayoek

Kr. Lama Rayoek

8

Central Aceh

Pameu

Kr. Pameu

Bidin/ Jambo Aye

Kr. Jambo Aye

73

No applicant yet

Bidin/ Jambo Aye

Kr. Jambo Aye

42

No applicant yet

Pantan Dedulu

Kr. Jambo Aye

8

No applicant yet

Lawe Alas

Lawe Mamas, Tanah Merah

66

No applicant yet

Lawe Alas

Lawe Mamas, Tanah Merah

268

No applicant yet

Jambo Papeun-2

Kr. Jambo Papeun

95

No applicant yet

Dolok-1

Kr. Dolok

32

No applicant yet

Teunom

Kr. Teunom

41

No applicant yet

9

Southeast Aceh

Aceh Jaya

Total

1,388

Aceh Investment Profile 2017

41


Establishing Irrigation for 19.50 Ha and Hydropower Plant 160 MW/580 MWH

Investment Feasibility

Projects in Construction Phases and Licensing Progress

PRINCIPLE LICENSE/AMANDMENT PRINCIPLE LICENSE BKPM/DPMPTSP NO

District/City

Projects

Location

Capacity (MW)

1

North Aceh

Jambuaye-3

Wh Jambu Air

37

2

Bener Meriah

Peusangan

Kr. Peusangan

89

3

East Aceh

Tampur 1

Kr. Tamiang/ Ramasan

172

Tampur 2

Kr. Tamiang/ Ramasan

427

No IP 3/11/IP/PMDN/ 2014

Date Issued

Issued by

17 March 2014

One Stop Service Office (BP2T)

IP Expired Date 17 March 2017

Status

Governor Recommendation No.671.21/BP2T/1495/ REK/2016 dated 15 July 2016 for PT. Daya Prima Mega was already issued Governor Recommendation No.671.21/BP2T/2523/2015 dated 30 November for PT. Kamirzu was already issued

Principle License No. 207/1/IP/PMA/2016; Amendment Principle License No.1085/1/IPPB/2016

4

Central Aceh

Bidin/ Jambo Aye

Kr. Jambo Aye

246

Principal License by KP2T North Aceh; 24/1111/ IP/PMDN/2017 for PT. Jambo Aye Hidro Energi was already issued

5

West Aceh

Meureubo-1

Kr. Meulaboh

82

Principle License for PT. Richland Power Nagan Raya Nagan Raya/Power Plant/ No.1770/1/IP/ PMA/2015 dated 8 July 2015/ US$ 180,190,000

Meureubo-2

Kr. Meureubo

60

Woyla-2

Kr. Woyla

274

Principle License for PT. Richland Power Woyla Aceh Barat/Electricity/No.579/1/IP/PMA/2016 dated 2 March 2016/US$ 510,000,000

Sungai Mas

Kr. Sungai Mas

250

PT. Woyla Power Energi

42

Aceh Investment Profile 2017

1/28/2016; 29 March 2016

BKPM

28-Jan-19

Governor Recommendation No.671.21/BP2T/2523/2015 dated 30 November for PT. Kamirzu was already issued


USD 288,080

INVESTMENT ESTIMATES

6

7

South Aceh

Nagan Raya

Kluet

Kr. Kluet

142

Principle License for PT. Trinusa Energi Indonesia, No. Investment Registration: 1941/1/PPM/ PMA/2012; Principal License Amendment No.275/1/IP-PB/PMA/2017

7 Augustus 2012; 25 January 2017

BKPM -

Tripa-3

Kr. Tripa

173

Principal license for PT. Richland Tripa Investment Nagan Raya/Power Plant/ No.2675/1/IP/ PMA/2015 dated 15 October 2015/ US$ 250,361,500

Tripa-4

Kr. Tripa

306

Isep

Kr. Isep

20

Governor Recommendation No. 671.23/BP2T/2062/ REK/2015 dated 21 September 2015 for PT. Senagan Energi was already issued

8

Southwest Aceh

Lama Rayoek

Kr. Lama Rayoek

60

Governor Recommendation No. 671.23/BP2T/2612/ REK/2016 dated 16 December 2016 for PT. lae Suraya Energi was already issued

9

Subulussalam

Pasir Belo

Kr. Pasir Belo

240

Governor Recommendation No. 671.23/BP2T/2612/ REK/2016 dated16 December 2016 for PT. lae Suraya Energi was already issued

10

Central Aceh

Pesangan-1

Kr. Pesangan

44

Construction phase

Peusangan-2

Kr. Peusangan

42

Peusangan-4

Kr. Peusangan

90

Construction of Hydropower Plant 2 X 43 MW

Teunom-1

Kr. Teunom

41

License application was submitted, but documents were incomplete

Teunom-2

Kr. Teunom

288

License application was submitted

11

Aceh Jaya

Total

3,084

Aceh Investment Profile 2017

43


Geothermal Projects The demand for global energy is expected to increase approximately around 50 % 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 Resources Department, the potential of geothermal in Indonesia is proximately 27.000 megawatt, while Aceh has around 1.115 megawatt. Geothermal potentials in Aceh spread in eight district/cities with total 17 spots of geothermal have been managed in various stages: pre survey, evaluation for survey request, designated working area, establishment of joint venture, and exploration.

44

Aceh Investment Profile 2017

Head of Aceh Investment and One Stop Services Agency at geothermal site, Jaboi, Sabang.


The central government has assigned the National Power Company (PLN) to build 5.000 Mw of energy in Aceh to fulfil the projected national demand of 35.000 Mw. Hence the potential for Investment in energy sector is widely open. Geothermal potentials Energy Potentials (Mwe) No

Objects

District/City

Coordinate

Resource (Mwe)

Reserve (Mwe)

Speculation Hypothesis

Estimation

1

Iboih

Sabang

LU 04°37' ; BT 96°45'

25

-

-

2

Lho Pria Laot

Sabang

LU 03°47' ; BT 97°41'

50

-

-

4

Ie Seum Krueng Raya

Aceh Besar

LU 05°29' ; BT 95°39'

-

63

-

6

Alue Canang

Pidie

LU 05°01' ; BT 95°55

25

-

-

7

Alue Lhok Beungga

Pidie

LU 04°48' ; BT 96°48'

100

-

-

9

Rimba Raya

Bener Meriah

LU 03°28' ; BT 97°51'

100

-

-

10

Simpang Balik

Bener Meriah

LU 04°19' ; BT 97°53

100

12

Silih Nara

Central Aceh

LU 04°37' ; BT 97°42'

100

-

-

13

Meranti

East Timur

LU 05°05' ; BT 95°54'

25

-

-

14

Brawang Buaya

Aceh Tamiang

LU 05°08' ; BT 96°18'

25

-

-

15

Kafi

Gayo Luwes

25

-

-

17

Dolok Perkirapan

Gayo Luwes

25

-

-

600

63

LU 04°42' BT 96°49'

TOTAL POTENTIALS = 663 Mwe

Aceh Investment Profile 2017

45


452 Mwe

Projects in Construction Phases and Licensing Progress Energy Potential (Mwe) No

Object

District/City

Coordinate

Reserve (Mwe)

Speculative

Hypothesis

Estimation

Progress

1

Jaboi keuneukai

Sabang

Lu 05°53' ; BT 95°14

-

-

50

Exploration phase by PT. Sabang Geothermal Energy

2

Seulawah Agam

Aceh Besar

Lu 05°50' ; BT 95°18

-

-

165

Establishment progress of Joint venture between PT. Pertamina and Regional Company.

3

Tangse

Pidie

Lu 04°56' ; BT 96°44'

25

-

-

Evaluation by Directorate General EBTkE, kESDM on Pre Survey Phase of PT. Hitay Bumi Energy

4

Geureudong Mount

Aceh Tengah

Lu 05°48' ; BT 95°19'

-

120

-

Determination of Working Area of PT. Jasa Daya Chevron by Directorate General EBTkE, kESDM

5

Gunung kembar

Gayo Luwes

Lu 05°33' ; BT 95°33'

-

92

-

Evaluation by Directorate General EBTkE, kESDM on Pre Survey Phase of PT. Hitay Bumi Energy

25

212

215

TOTAL = 1.115 Mwe

46

Resource (Mwe)

Aceh Investment Profile 2017


Photo: Geothermal, Jaboi, Sabang

Aceh Investment Profile 2017

47


Photo: CPO of PT. Boswa Megalopolis, Aceh Jaya

48

Aceh Investment Profile 2017


Agro Industry Plantation Palm Oil In 2013 production by small holder was 335.366 tons and estate enterprises was 1.633.312 tons. 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. Palm oil constitute 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.

Aceh Investment Profile 2017

49


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, Non Governmental Organisations (NGOs), and smallholder. 2. Support palm oil public-private investment partnership. 3. Reduce threats to high conservation value forest 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.

50

Aceh Investment Profile 2017


Palm Oil Planted Areas and Production by District/City in 2013 district

Planted Area (ha)

Production (Tons/Annum)

Simeulue

3.387

1.826

Aceh Singkil

55.441

397.134

South Aceh

10.209

34.910

Southest Aceh

7.454

20.551

East Aceh

60.592

278.550

Aceh Tengah

-

-

West Aceh

26.144

206.240

Aceh Besar

1.282

407

Pidie

77

16

Bireun

5.181

22.197

North Aceh

24.953

115.477

Southwest Aceh

20.767

14.215

Gayo Lues

-

-

Aceh Tamiang

54.442

496.986

Nagan Raya

82.252

329.321

Aceh Jaya

16.714

19.348

Bener Meriah

1.300

117

Pidie Jaya

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

SOuRCE: ACEH DEvELOPMENT PROFILE, ACEH CENTRAL BuREAu OF STATISTIC (BPS) 2015

Note: planted area 198.246 Ha and production 355.366 Ton of small holder planted area 195.024 Ha and production 1.633.312 Ton of estate enterprises in 2013 Aceh Investment Profile 2017

51


List of Crude Palm Oil Industries in Aceh company

district/city

1

PT. Blang ketumba

Bireun

2

PT. Syaukath Sejahtera

3

PT. Perkebunan Nusantara I

North Aceh

4

PT. Padang Palma Permai

East Aceh

5

PT. Ensem Sawita

6

koperasi Prima Jasa

7

PT. Anugerah Fajar Rezeki

8

PT. Boswa Megalopolis

9

PT. Agro Sinergi Nusantara

10

PT. karya Tanah Subur

11

PT. Mopoli Raya

12

PT. Perkebunan Nusantara I

13

PT. Perkebunan Nusantara I

14

PT. Mopoli Raya

15

PT. Parasawita

16

PT. Dwikencana Lestari

17

PT. Padang Palma Permai

18

PT. Sisirau

19

PT. P.P. Pati Sari

20

PT. Bahari Dwikencana Lestari

21

PT. Socfin Indonesia

22

PT. Tric Agro Palma Tamiang

23

PT. Lestari Tunggal Pratama

No.

52

Aceh Investment Profile 2017

Aceh Jaya West Aceh Aceh Tamiang

Subulussalam


Illustration

No.

company

24

PT. Bangun Sempurna Lestari

25

PT. Samudera Sawit Nabati

26

PT. Fajar Baizury

27

PT. kalista Alam

28

PT. Sawit Nagan Raya Makmur

29

PT. Beurata Subur Persada

30

PT. ujong Neubok Dalam

31

PT. Surya Panen Subur II

32

PT. Surya Panen Subur I

33

PT. khasisma Iskandar Muda

34

PT. Ensem Lestari

35

PT. Socfin Indonesia (Seunagan)

36

PT. Socfin Indonesia (Seumanyam)

37

PT. Perkebunan Lembah Bhakti

38

PT. Delima Makmur

39

PT. Nafasindo

40

PT. Ensem Lestari

41

PT. Socfin Indonesia

42

PD. Fajar Selatan

South Aceh

43

PDkS. Simeulue

Simeulue

district/city

Nagan Raya

Aceh Singkil

Aceh Investment Profile 2017

53


Photo: Baburrayyan Cooperation, Aceh Tengah

54

Aceh Investment Profile 2017


Coffee Coffee is traded on commodity exchanges and futures, most importantly in London and New York. The five major coffee producing countries by 2014 were Brazil, Vietnam, Colombia, Indonesia and Ethiopia and big five world coffee exporting countries are Brazil, Vietnam, Colombia, Indonesia and

India. At present, Indonesian coffee plantations cover a total area of approximately 1,240 hectares, 933 hectare of Robusta coffee plantation and 307 hectare of Arabica plantation. More than 90% of total plantations are culvitated by small-scale

farmers. High quality Arabica coffee is mostly produced by South American countries such as Brazil, Colombia, El Savador and Costa Rica. In Indonesia, only Aceh and North Sumatera produce Arabica coffee and Lampung is known as

Robusta coffee producer. The rise of coffee consumption around the world certainly is great opportunity to expand coffee planting areas in Indonesia.

Source: www.indonesia-investment .com

8.641.332 Kg Aceh export volumes of coffee beans to 20 countries

Three major producers of coffee in Aceh are Bener Meriah, Central Aceh and Gayo Lues. These areas are suitable for a big coffee processing industry.

Illustration Aceh Investment Profile 2017

55


Photo: ARB Coffee Shop, Aceh Tengah

56

Aceh Investment Profile 2017


gayo coffee is grown at the gayo highland, 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 Gayo region is the largest on Asia. Gayo coffee has been exported to many countries in the world. The statistic indicates that in 2012, Aceh exported coffee beans to 19 countries. 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 received the highest score in the Indonesian Specialty Coffee Auction 2010 in Bali, which guarantees that it is one of the best coffee in the world. Coffee planted area and production of small holder by district/city, 2013 Robusta district

Planted Area (ha)

Production (Ton)

Arabica

Planted Area (ha)

Production (Ton)

Total Robusta & Arabica (Ton)

Planted Area (ha)

Production (Ton)

Central Aceh

2,315

763

48,300

27,079

50,615

27,842

Bener Meriah

1,795

808

49,496

15,000

51,291

15,808

-

-

4,770

1,145

4,770

1,145

Pidie

9,572

1,569

-

-

9,572

1,569

Aceh Besar

1,636

710

-

-

1,636

710

Aceh Jaya

1,459

205

-

-

1,459

205

South Aceh

1,441

312

-

-

1,441

312

2013

18,218

4,367

102,566

43,224

116,248

46,364

2013

17,668

4,480

101,053

48,902

118,721

53,382

2011

17,282

5,246

100,689

47,778

117,971

54,124

Gayo Lues

Illustration

SOuRCE: ACEH DEvELOPMENT PROFILE, ACEH CENTRAL BuREAu OF STATISTIC (BPS) 2015

Aceh Investment Profile 2017

57


Arabica Coffee Export in 2012-2016 60 000 000 50 000 000 40 000 000 30 000 000 20 000 000 10 000 000 1

2

3

4

5

Tahun

2012

2013

2014

2015

2016

volume (kg)

9,703,260

10,593,388

8,684,323

8,641,332

9,595,135

Nilai (uS)

57,024,564

52,938,771

53,000,592

46,445,783

47,948,388

0

SOuRCE: ACEH INDuSTRIAL AND TRADE OFFICE

58

Aceh Investment Profile 2017


LIST OF cOFFEE ExPORTEd dESTINATION No.

COuNTRy ASIA

1

SINGAPORE

2

HONG kONG

3

kOREA

4

JAPAN

5

TAIWAN

6

CHINA

7

TuRkEy AMERIcA

8

uNITED STATES

9

CANADA

10

MEXICO EUROPE

11

GERMAN

12

RuSSIA

13

ENGLAND

14

DuTCH

15

BELGIuM

16

IRELANDIA

17

NEW ZEALAND

18

AuSTRALIA AFRIcA

SOuRCE: ACEH DEvELOPMENT PROFILE, ACEH CENTRAL BERAu OF STATISTIC (BPS) 2015

19

SOuTH AFRICA

Aceh Investment Profile 2017

59


Arabica Coffee Export in 2012-2016

List of coffee Exporter No

Exporter

1

PT. Ihteyeri ketiara

2

PT. Sumatera Arabika Gayo

3

kop. Gayo Linge Organik Coffee (GLOC)

4

Cv. Cahaya Commodity Nusantara

5

Cv. Degayo Agri

6

Cv. Aridalta Mandiri

7

kBQ. Baburrayyan

8

kop. Serba usaha (kSu) Bies utama

9

kop. Pedagang kopi (kopepi) ketiara

10

Pt. ketiara

11

Cv. Oro kopi Gayo

12

Cv. Putra Darma

13

Cv. Donya Drop Darugt

14

Pt. Poju Grincum

15

Cv. Gayo Mandiri Coffee

16

PT. Fajar Jeumpa

17

kSu. Permata Gayo

18

Cv. Gayo Mountain Coffee

19

PT. Cahaya Mas Global kopi

SOuRCE: ACEH DEvELOPMENT PROFILE, ACEH CENTRAL BuREAu OF STATISTIC (BPS) 2015

60

Aceh Investment Profile 2017

Photo: Freebiespic.com


Central Aceh 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 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.

INVESTMENT ESTIMATE

US$ 6,258,377 Establishing plant and Working Capital:

US$ 3,333,333 Operational Cost :

US$ 2,925,043 *(US$ 1 = IDR 12,000)

Aceh Investment Profile 2017

61


Photo: Freebiespic.com

4 ha

Land Area

Location: Mulie Jadi Village, Silih Nara Sub District

Ownership: Private Ownership

• • • •

NPV = US$ 1,844,999 IRR = 23% BC = 1,6 PAYBACK PERIOD: 6 YEARS

Project Purpose: Establishing Instant Coffee 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 offers an advantage for investment since the production cost is less than the average cost (assuming green bean price uS$ 4.58/kg). The price is able to create market segment both on market share and market space. Moreover, it is able to compete with other large national products.

62

Aceh Investment Profile 2017


Coffee plantation, Bener Meriah (Photos: Freebiespic.com)

Aceh Investment Profile 2017

63


6,434 Ha Land Area

Location:

krueng Aceh, kuta Malaka, Blang ubo-ubo

Ownership:

Government Land

Livestock Aceh Besar Beef Industry Development Project Photo: Cot Seribee, Jantho, Aceh Besar 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

64

Aceh Investment Profile 2017

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


INVESTMENT ESTIMATE

uSD 33,147,500 • Breeding : 5,500 cows • Fattening : 15,000 cows • ROI • B/C

: 29.64 % : 1.23

PAYBACK PERIOD : 3 YEARS AND 5 MONTHS

krueng Aceh

Photo: Kuta Malaka Beeflot, Aceh Besar

kuta Malaka Blang ubo-ubo Cot Sirebee

A

C

E

H

B E S A R

ACEH BESAR

Aceh Investment Profile 2017

65


Fishery Idi Fishing Port To support the development of a minapolitan (fishery city), the Government of East Aceh District focuses on increasing the production of aquaculture and wild fishery. The products are primarily sold in domestic and international market. In response to the increase of production from both wild fish catches, the following are potential investments: 1. Block ice factory 2.000 block/days 2. Fish canning factory 3. Promotion & research center for fisheries 4. Docking facilities 5. Central fish marketing and distribution centre

Idi Fishing Port

The production of wild fish catches from Idi Port is around 21.473.51 tons/ annum and production from agriculture is 10.485 tons/ annum, including tilapia, catfish, milkfish, black tiger shrimps, white shrimps, fire shrimps and crabs.

EAST ACEH

66

Aceh Investment Profile 2017


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

capacity

Jetty

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

Photo: kuala Idi Fishing Port

Aceh Investment Profile 2017

67


68

Aceh Investment Profile 2017


Sawang Ba’u Fishing Port Sawang Ba’u Village 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 nonmotorized 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

SOuTH ACEH

cAPAcITY

Port Area

1.5 ha

Quay

-

Jetty

-

Breakwater

400 m

Pool Port

1.2 ha

Revetment

150 m

Groin Fish market (TPI)

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

6x6m

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

Aceh Investment Profile 2017

69


Tourism Simeulue Marine Tourism Development Babang Diving and Snorkelling Centre

Photo: Babang Area Land: 6 ha Land Status: Government ownership

Facilities available: ● ● ● ●

70

Aceh Investment Profile 2017

Road Water Electricity Diving and Snorkelling Storage Equipment


Snorkelling Spots

Diving Spots

Simeulue Cut Island

Teupah Island

Linggam Island

Batu Berlayar Island

Simanaha Island

Baby Island

Siumat Island

Lasia Island

Leukon Island

Mincau Island

Tepi Island

Simeulue Cut

Harapan Island

Harapan Island

Perairan Sibigo

Investment Potentials: • Hotel and Bungalow • Jetty • Gazebo • Mini Café • Public Shower Room • Speedboat • Banana Boat • Diving and Snorkelling Equipment

Aceh Investment Profile 2017

71


Photos by Humas Aceh/Heri Juanda

Tourism Potential of Gayo Lues

Aceh Governor Irwandi Yusuf opened the 10,001 Saman Dancer held at Thousand Hill Stadium, Gayo Lues, Aceh. A total of 12,772 people simultaneously performed the Saman dance, which has been crowned as a cultural heritage by UNESCO in 2011. This event broke the record of Indonesian Record Museum (MURI) as the most dancers performance of Saman with the most dancers, having beaten the previous record with 5057 participants in 2014.

72

Aceh Investment Profile 2017


NO

PLACE OF INTEREST

TYPES

LOCATION (DISTRICT)

AREA

LAND STATUS

OWNERSHIP

MANAGEMENT

ROAD CONDITION

1

Gunung Leuser National Park

Nature

Blangjerango

Government

Balai TNGL

Balai TNGL

Average

2

Puncak Angkasan

Nature

Blangjerango

Government

Balai TNGL

Balai TNGL

Average

3

kolam Biru

Nature

Tripe Jaya

1 Ha

Government

Disparekraf Gayo Lues

Private

Average

4

Air Terjun Rerebe

Nature

Tripe Jaya

1 Ha

Government

Private

Private

Average

5

Stadion Pacuan kuda Buntul Nege

Artificial

Blangpegayon

1 Ha

Local Government Gayo Lues

Gayo Lues Government

Dispora

Good

6

Marpunge Lake

Nature

Putri Betung

1 Ha

Protected Forest

Government

Private

Poor

7

Hot Spring Serkil

Nature

Putri Betung

1 Ha

Protected Forest

Government

Private

Average

8

Mesjid Asal Penampaan

Artificial

Blangkejeren

Private

Private

Private

Good

9

Genting Hill

Nature

Pining

Private

Private

Private

Average

10

Aih kuala Tripe

Nature

Blangjerango

Average

11

Aih Agusen

Nature

Putri Betung

Average

12

Lung kappi

Nature

Putri Betung

Government

13

kampung Wisata Agusen

Nature

Blangkejeren

Private

Private

Private

Good

14

kampung Wisata Penosan Sepakat

Artificial

Blangjerango

Private

Private

Private

Good

Poor

SOuRCE: TOuRISM OFFICE OF GAyO LuES

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PHOTOS By HuMAS ACEH

The 10,001 Saman Dancer held at Thousand Hill Stadium, Gayo Lues, Aceh. Aceh Investment Profile 2017

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Banda Aceh Tourism Development Project Banda Aceh Central To improve city centre performance, one of the strategies is to revitalize krueng Aceh (Aceh River) by connecting the divided Canal Oriented Development (COD), create crowd, and flood control.

PROJECT VISION MACRO The Re-Making of Strategic Location with concept of Transit Oriented Development (TOD) Located in the urban core and KruengAceh riverfront IN THE HEART OF THE CITY AND RIVERFRONT REVITALIZATION

Passed by central corridor Linked to 7 urban corridors Looped by circle road

AS THE CORE OF THE URBAN INTEGRATED TRANSPORTATION SYSTEM HIGHEST- USED AND BEST-USED

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Integrated with city system and riverfront city Served by All Modes Of Transportation Reached from All Directions Reaching to All Directions Transit terminal + Retail + Hotel + Urban Tourism


PUBLIC PRIVATE PARTNERSHIP (PPP) SCHEME Concession for 30 years

PPP Inve stm e nt O bject Ex-Keudah Terminal Location

Propose d PPP S che m e

Keudah Transit Terminal Basement (Parking Area) Shopping Mall Hotel Krueng Aceh River Location

Concession / BTO Concession / BOT Concession / BOT Concession / BOT

“Coffee Mall” Bridge Dock Plaza, Pedestrian Alleys, and Riverfront Development

Concession / BOT BTO Concession / BTO

PRIVATE SECTOR

PUBLIC SECTOR / GOVERNMENT

Investment cost: IDR 238 Billion (yellow coloured)

Investment cost: IDR 108 billion, exclude land property of ex-terminal Keudah. (red coloured)

• Transit terminal, commercial area, hotel • Two sides of plaza on riverfront (4 towers) • Dockyard (1 unit) • Pedestrian bridge mall • Two pedestrian alleys to Peunayong

• Riverfront re-development of Krueng Aceh • CBD redevelopment : revitalization old CBD Peunayong, upgrading infrastructure & site development, such as: Pedestrianization (landscaping, street furniture) of whole CBD Transportation facilities: Shelter,Dock, Sub Terminal, etc

Photo: Krueng Aceh, Banda Aceh Aceh Investment Profile 2017

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URBAN DEVELOPMENT PLAN A – Transit Terminal, Commercial Area, Hotel B – Coffee Shop Bridge C – Revitalization of Old CBD 1 – Fish Market 2 – Vegetables Market 3 – REX Food court 4 – Military Zone 5 – Shopping Complex 6 – Hotel & Office Complex

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7 – Aceh Traditional Market 8 – Great Mosque 9 – Park 10 – Military Park 11 – Riverfront Docks 12 – Food court Bridge

URBAN DEVELOPMENT PROGRAM Riverfront Development of Krueng Aceh Pendestrian Path Dock

Integrated Development of Keudah ● Site Development ● Transportation system planning and development ● Revitalization old CBD Peunayong ● Upgrading infrastructure and utililas ● Greening the city ● Site design of Keudah terminal area ●


PEDESTRIAN A – Transit Terminal, Commercial Area, Hotel B – Coffee Shop Bridge C – Revitalization of Old CBD 1 – Fish Market 2 – Vegetables Market 3 – REX Food court 4 – Military Zone 5 – Shopping Complex 6 – Hotel & Office Complex

7 – Aceh Traditional Market 8 – Great Mosque 9 – Park 10 – Military Park 11 – Riverfront Docks 12 – Food court Bridge

URBAN DEVELOPMENT PROGRAM Riverfront Development of Krueng Aceh Minor Line Pedestrian Development Major Line Pedestrian Development

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Special Economic Zone (SEZ) Arun Lhokseumawe

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Jalur Laut China Selatan Chanel Del Kra-Thailand

Pelabuhan Krueng Geukueh di KEK Arun Lhokseumawe

KEK Arun Lhokseumawe

SEZ Arun Lhokseumawe Aceh Profile

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T o ta l A re a

2622,48 Ha

N o m in a t o r

The consortium of PT. Pertamina, PT Pupuk Iskandar Muda (PT PIM), PT Pelindo 1, Perusahaan Daerah Pembangunan Aceh (PDPA)

L o c a t io n

The Regent of Aceh Utara, City of Lhokseumawe, Province of Aceh

Business Plan

a. Oil, Gas, Energy b. Development of energy industry sector (Oil & Gas), LNG regasification, Hub / Trading LNG, LPG Hub / Trading, Mini LNG Plant PLTG with development of clean energy solution; c. Petrochemical Industry d. Development of an environmentally friendly petrochemical industry cluster e. Agro Industry for Food Security f. Development of Agro Industry Supporting Food Security, exploiting the potential of agricultural raw materials and the development of various types of agro-industrial enterprises and derivatives g. Logistics h. Development of Logistics infrastructure to support inputs and outputs from the oil & gas, petrochemical and agro industry industries, through the improvement of port infrastructure and International Standard Dock i. Manufacture of heavy duty paper for cement packaging (KKA)

Total Investment

USD 3,8 Billion in 10 years

Jobs created

40.000 manpower in 10 years

Legal Basis

Government Regulation No. 5 of 2017 dated February 17, 2017

Joint Venture

PT. Patriot Nusantara Aceh

Aceh Investment Profile 2017


Four main business areas are based on the existing industrial area Oil & gas

Petrokimia

Pertamina will develop industrial energy sector (Oil & Gas), facilities and supporting infrastructure: Regasification LNG, LNG Hub / Trading, LPG Hub / Trading, Mini LNG Plant power plant with developing environments friendly power plant or (clean energy solution provider).

PT PIM jointly with PT Pupuk Indonesia group will develop a Cluster Industial Petrochemical environmentally friendly consists of 9 (nine) new factory in the area PIM & AAF (DL), namely: Factory BPK, Fertilizer ZA, Ammonium sulfate, Sulfuric Acid, Acid Phosphate, and Purified Gypsum.

Ports & Logistics

Agriculture & Fishery

Pelindo will develop the Logistics infrastructure to support inputs and outputs of oil & gas industry, petrochemical and agro industries, by upgrading infrastructure in ports and harbors international standard.

Local Company Development Aceh (PDPA) will develop the potential in agro industries and its derivatives as well as the development in the field of marine products.

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Business Plan at SEZ Arun Lhokseumawe Total Area (Ha)

Vacant Area (Ha)

Ex. PT. Arun

1689.8

540

PT. Pertamina

151.3

81

District /City

Entities

Kota Lhokseumawe

Business Plan / Cluster 1.industry energy sector (Oil & Gas), Facilities and infrastructure support namely: regasification of LNG, LNG Hub / Trading, LPG Hub / Trading, Mini LNG Plant power plant with the development of environmentally friendly power plants or (clean energy solution provider); 2.Condensate Processing Unit and Fuel 3.Supporting Industries Agro for Food Security (CPO, Sugar, Cocoa, Industrial fishery products and cold storage)

North Aceh District

PT. Pelindo 1

38.18

17.82

Ports and logistics support input and output of oil and gas industry, petrochemical and agro-industry

PT. PIM

307.15

126.5

PT. AAF

236.4

91

Petrochemical industry is environmentally friendly, consisting of seven (7) new factories in the area of PIM & AAF (DL), namely: NPK plant, ZA fertilizer, ammonium sulfate, sulfuric acid, Acid Phosphate, and Purified Gypsum

PT. KKA

199.6

50

2622.48

906,32

Total Area

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Industry producing cement bag paper (kraft paper)


Regional Infrastructures Regional Infrastructure 1. National Roads

Condition on the Field There are national road between Banda Aceh and Lhokseumawe-field passing through the SEZ Arun Lhokseumawe

2. Airport

Secondary Pooling Service within 13 Km of Malikussaleh Airport

3. Port

Krueng Geukueh port and the port PT Arun interconnected service

4. Water

There is a source of water from river in the area of Bireuen and WTP in the former areas of Arun and PT PIM with a capacity of 840 m3

5. Electricity and gas

• Gas Power Plant (PLTMG) with capacity of 184 MW by PLN • The source of raw material gas supplied from LNG Tangguh and PEH Fields NSB NSO

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Facilities and intensives in SEZ

Taxation, Customs and Excise

%

Permit and Non-permit

Traffic of Goods

FACILITIES

Manpower

Land/Land acquisition Immigration

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Incentive In Special Economic Zone

20% 30% 5/10nd 2nd

Income tax reduction (Minimum 20 percent) for 10 to 25 years period for total investment worth more than IDR 1 Trillion; Income tax reduction (Minimum 20 percent) for 5 to 15 years period for total investment ranging from IDR500 Billion - IDR 1 Trillion; Total net income reduction by 30% of the investment for 6 years period; Compensation of losses for business longer than 5 (five) years but not more than 10 (ten); Exemption from import duty on the import of machines, goods & materials for production for a period of 2 years; Free Charge of Value Added Tax Imposition (VAT) inside SEZ;

1st

Multiple-entry visitors visa valid for 1 year; Permanent Resident permit for property owner inside SEZ.

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Sabang Free Port and Free Trade Zone (FTZ) Law No. 37 of 2000 for Sabang Free Port and Free Trade Zones Includes a wide range of facilities for doing business in Sabang. INCENTIVES: The Sabang Management and Development Agency (BPKS) operates the FTZ and has the auauthority 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. 88

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Sabang Tourism Opportunities

Iboih Beach Map

Iboih Beach Land area: 1.5 ha Land Status: Government Property a. Star hotel, ranging from 1 to 2 star b. Restaurant c. Villa d. CafĂŠ e. Spa Iboih Beach Site

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Lhok Weng beach Map

Lhok Weng Beach Land Area: 15 ha Land Status: Government Property • Star hotel • Spa • Swimming centre

Lhok Weng Site Aceh Investment Profile 2017

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Sabang Fair Map

Sabang Fair Land Area: 2 ha Land Status: Government Property a. Star hotel b. Convention and Exhibition Centre

Sabang Fair Site

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CT-3 Port Map

CT-3 Port Land Area: 15 ha Land Status: Government Property a. Operator CT-3 Port (marine dock) b. Operator International tourism sea port CT-3 Port Site Aceh Investment Profile 2017

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Sumur Tiga Beach Map

Sumur Tiga Beach Land Area: 2 ha Land Status: Government Property a. Star hotel b. Food and Beverage Service • Café • Spa c. Swimming Centre Sumur Tiga Beach Site

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Jaboi Geothermal Site Map

Jaboi Geothermal Site Land Area: 15 ha Land Status: Government Property a. Spa and Villa b. Theme Park c. Hot Spring

Jaboi Geothermal Site Site Aceh Investment Profile 2017

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Bango Map

Bango

Land Area: 30 ha Land Status: Government Property

a. Star Hotel b. Spa and Villa c. Sport Facilities • Tennis • Golf Course d. Recreational Park and Theme Park e. Convention and Exhibition Hall f. Enclave Management of “the Living History” ethnic village

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Bango Site


Balik Gunung Map

Balik Gunung Land Area: 2 ha Land Status: Government Property

Balik Gunung Site

a. Star hotel b. Restaurant c. Spa and Villa d. Sport Facilities • Tennis Field • Golf Course

e. Recreational Park and Theme Park f. Convention and Exhibition Hall

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Lampulo International Fishing Port Lampulo International Fishing Port is Strategically located facing the fishing grounds of Malacca Strait, has an area of 51.8 Ha and is classified as a Type A (Ocean Fishery 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. The Aceh Government invites investors to open business 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 labour 70% and foreign labour 30%

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Kabupaten

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

Nelayan

Produksi (Ton)

Simeulue

3,387

4,288

Aceh Singkil

3,034

6,568

South Aceh

7,623

12,875

242

38,2

13,747

16,019

260

137

West Aceh

3,467

13,266

Aceh Besar

1,500

7,901

Pidie

3,018

11,536

Bireuen

8,686

9,512

North Aceh

5,222

11,526

Aceh is a province whose inhabitants seek a livelihood on fishery with the number of fishermen in 23 districts/ cities were 74,719. Total fish production was 159,487 tons in 2014.

Southwest Aceh

5,192

10,649

383

113,2

Aceh Tamiang

3,642

4,512

Nagan Raya

1,032

5,505

Aceh Jaya

3,408

4,626

178

36

The area as well as investment in fishery sector is offered to investor to develop fisheries sector in several districts/cities; Banda Aceh, Sabang, East Aceh, South Aceh, Bireuen, and Simeulue.

Pidie Jaya

2,303

6,968

Banda Aceh

842

6,621

Sabang

763

7,346

Langsa

4,388

11,902

Lhokseumawe

2,044

7,405

358

139

2014

74,719

159,487

2013

73,731

155,270

2012

64,466

145,834,00

Number of Fisherman and Production of Sea Fishing by Regency/City 2012-2014

Southeast Aceh East Aceh Aceh Tengah

Gayo Lues

Bener Meriah

Subulussalam

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Ease of doing Business in Aceh Investment Procedure & Licensing POTENTIAL INVESTORS

INVESTMENT ACCELERATION TASK FORCE TEAM INFORMATION, FACILITATION AND ASSISTANCE > Security, convenience and law certainty > Land availability, labor, wages & incentive > Licensing administration > Policy, Regulation > Field Visit, etc

LICENSING

One Stop Service for Local Licenses PRINCIPLE LICENSE: BKPM/BPKS WORKING LICENCE: BKPM/BPKS LOC AL LICENCE: BP2T

INVESTMENT EVALUATION AND CONTROLLING TASK FORCE TEAM FACILITATION AND ASSISTANCE

CONSTRUCTION

OPERATION AND BUSINESS EXPANSION

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> 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


Regulations Law No 11 of 2016 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.

Law No. 37 of 2000 for Sabang Free Port and Free Trade Zones. 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 author to issue all license 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.

Incentives Providing incentives to investors in the form of: a. Reduction of sectoral levy for permits; shall not exceed 50% (fifty percent) of the (levy) payable amount.

b. Stimulus funding, for selected sectors; Stimulus funds awarded in the form of interest 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

Complete

Computerization

Submit Application

Application Received

Check for Completeness

Issue of Permit/ License Application/ Document

Technical Examination/Field Observations Technical Team Meeting for Validation/ Consideration for Qualified License

Output: 1. Reject 2. Pending 3. Accept

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

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Mechanism for Complaints from Businessmen in One Stop Service Office (DPMPTSP) TECHNICAL STAFF

COMPLAINING CUSTOMER

CUSTOMER SERVICE

Complaint cannot besolved by Customer Service

Complaint cannot be solved by Technical Staff

Head of Information Service & Complaints

TECHNICAL TEAM

COMPLAINING CUSTOMER

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HEAD OF ONE STOP SERVICE OFFICE OF ACEH PROVINCE


let's start business in aceh Aceh is one of the most competitive provinces in Indonesia for investment due to its strategic geographical location, natural resources, young talented population and investorfriendly regulations. To accelerate the process of doing business, we are working with different authorities to create a one-stop service for every matters related to investment at our office. We are happy to assist you on regulations issues, permit issuance and other services needed in a timely manner. Today, we are leveraging our resources and seeking potential investors to work on our four main sectors, namely, agroindustry, energy, infrastructure, and tourism. Our investment prospect is supported by government policy to re-establish Indonesia as an emerging maritime power in the region. With a vast and rich sea territory, we also inviting you to explore marine-related sector such fisheries, sea farming and seaport.

Aceh Investment and Promotion Board as a specifically established government's authority to facilitate and promote investment opportunities in Aceh. We are committed to serve potential investors by providing accurate information on investment potentials and coordinating investment clearances within relevant institutions. One of barriers faced by investors is lacking of database and information in the form of publication related to investment and opportunities in various sectors and investment profiles at district levels in Aceh. We, therefore, hope that "Aceh Investment Profile” could give you a primary reference for investors in analysing resource potentials and exploring lucrative investment opportunities in this region. We warmly welcome your investment and ready to serve investors to the best our capacity.

Ir. Iskandar, M.Sc Head of Aceh Investment & One Stop Services Agency Aceh Investment Profile 2017

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PHOTO By ARIF ARHAM

Laut Tawar Lake view from Pantan Terong, Aceh Tengah.

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contAct Position on Google Map

Visit Jl. Ahmad yani No. 39, Banda Aceh, Indonesia

Phone P : +62 651 23170 F : +62 651 23171

Email investasi@acehprov.go.id bip. aceh@gmail.com

Website investasi.acehprov.go.id acehinvestment.com

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Editor: Team of Aceh Investment and One Stop Services Agency Photography: Pandri Akmal Design and Layout: Jroh Production Copyrigth 2017 | Aceh Investment and One Stop Services Agency



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