ACEH INVESTMENT PROFILE
ACEH INVESTMENT COORDINATING BOARD 2015
o dr. Zaini Abdullah GOVERNOR OF ACEH
2 } Aceh Investment Coordinating Board
FOREWORD BY GOVERNOR OF ACEH Aceh is your investment destination. There are four key strengths that make Aceh very promising: (1) friendly investment laws, (2) strategic geographical location, (3) abundant natural resources, and (4) human capital.
and (3) tourism. We already have excellent foundations in these strategic sectors. Coffee, patchouli, cocoa, palm oil, coconut are just a short list. Moreover, fisheries also have potential to have high for investment opportunities in Aceh.
Friendly investment laws are related to our status as a special province with autonomy in Indonesia. We have a wider authority to govern ourselves than other provinces in Indonesia. We also have privileges that allow us to make direct agreements with foreign institutions.
To accelerate investment in the region as well as to improve the investment climate, we are working on some important issues to resolve, such as de-regulation at licensing acceleration, security and better infrastructure. Hence, the new Aceh will be perfect for your future investment.
We consider investment as one of the key instruments to enhance the economic development in Aceh with the focus on three potential sectors: (1) agro industry, (2) energy and infrastructure
Last but not least, we welcome you to visit us and invest in amazing Aceh.
dr. Zaini Abdullah GOVERNOR OF ACEH
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FOREWORD BY CHAIRMAN OF ACEH INVESTMENT COORDINATING BOARD
We are happy to inform you that investment in Aceh increased greatly in recent years and is now in the eight rank in Indonesia for domestic investment about US $ 561,491,578 in 2014, whilst foreign direct investment was $31,541,856.
maritime program initiated by the President of the Republic of Indonesia, Jokowi, Aceh has been continuing to optimize its sea connectivity and improve its infrastructure build-up. One of our priorities is to increase exports and imports activities via ports in Aceh particularly Krueng Geukuh and Sabang Port. Hence, we welcome you to invest in developing and exploiting our maritime potential.
Our vision is to be one of the leading investment destinations in Indonesia, we will make sure that investors and potential investors get the best service and full assistance where ever needed. We thank you all for your continuous support to The three main sectors that Aceh and to trust Aceh as your favorite investment we offer to our investors are destination. agroindustry, energy and infrastructure and tourism. In line with “the sea toll road�
Ir. Iskandar, M.Sc Chairman of Aceh Investment Coordinating Board 4 } Aceh Investment Coordinating Board
Ir. Iskandar, M.Sc Chairman of Aceh Investment Coordinating Board
o Aceh Investment Profile
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Content FOREWORD BY GOVERNOR OF ACEH FOREWORD BY HEAD OF ACEH INVESTMENT COORDINATION BOARD 1. INTRODUCTION ~ 3
1.1 VISION AND MISSION ~ 10 1.2 ACEH AT A GLANCE ~ 12 1.2.1 AREA ~ 16 1.2.2 ADMINISTRATIVE REGIONS ~ 18 1.2.3 POPULATION ~ 20 1.2.4 MAN POWER/LABOR FORCE ~ 22
2. SPATIAL PLANNING ~ 25 3. INFRASTRUCTURE SUPPORT ~ 28 3.1 ROADS ~ 30 3.2 SEA PORTS ~ 32 3.3 AIRPORTS ~ 34 3.4 ENERGY ~ 36 3.5 WATER ~ 38
4. ECONOMIC PERFORMANCE ~ 41 5. EASES OF DOING BUSINESS IN ACEH ~ 48 6. DETAILED PLANS FOR AGRO INDUSTRIES ~ 55
6.1 DETAILED PLANS FOR AGROINDUSTRY 6.1.1 DETAILED PLANS FOR FOOD CROPS ~ 58 6.1.2 DETAILED PLANS FOR HORTICULTURE ~ 68 6.2. DETAILED PLANS FOR PLANTATION AND CROPS ~ 74 6.2.1. PALM OIL ~ 76 6.2.2. RUBBER ~ 86 6.2.3. CACAO ~ 88 6.2.4. COFFEE ~ 90 6.2.5. COCONUT ~ 94 6.3 DETAILED PLANS FOR ESSENTIAL OIL PRODUCTION ~ 98 6.3.1. PATCHOULI ~ 100 6.3.2. NUTMEG ~ 104 6.3.3. CITRONELLA ~ 106 6.4. DETAILED PLAN OF ACEH BEEF INDUSTRY DEVELOPMENT PROJECT ~ 108 6.4.1. ACEH BESAR BEEF INDUSTRY DEVELOPMENT PROJECT ~ 110 6.4.2. PIDIE BEEF INDUSTRY DEVELOPMENT PROJECT ~ 112 6.4.3. BENER MERIAH BEEF INDUSTRY DEVELOPMENT PROJECT ~ 114 6.3.4. ACEH TENGAH BEEF INDUSTRY DEVELOPMENT PROJECT ~ 116 6.3.5. NAGAN RAYA BEEF INDUSTRY DEVELOPMENT PROJECT ~ 118
6.5. DETAILED PLANS FOR FISHERIES ~ 120 6.5.1. LAMPULO INTERNATIONAL FISHING PORT ~ 122 6.5.2. IDI FISHING PORT ~ 124 6.5.3. SAWANG BA’U FISHING PORT IN SOUTH ACEH ~ 126 6.5.4. PEUDADA FISHING PORT IN BIREUEN ~ 128 6.5.5. SIMEULUE AQUACULTURE PROJECT ~ 130 6.5.6. SIMEULUE FISHING PORT ~ 132 6.5.7 SIMEULUE SEAWEED CULTURE PROJECT ~ 134
7. DETAILED PLANS FOR INFRASTRUCTURE AND ENERGY ~ 137 7.1 DETAILED PLANS FOR INSFRASTRUCTURE ~ 138 7.1.1. BANDA ACEH URBAN RAILWAY ~ 140 7.1.2. KRUENG GEUKUEH SEAPORT PROJECT ~ 142 7.1.3. KUALA LANGSA SEAPORT PROJECT ~ 144 7.2 DETAILED PLANS FOR ENERGY ~ 146 7.2.1 ELECTRICITY IN ACEH ~ 148 7.2.2 GEOTHERMAL PROJECTS ~ 154 7.2.3 HYDRO POWER PROJECTS ~ 156
8. DETAILED PLANS FOR TOURISM DEVELOPMENT ~ 160 8.1 BANDA ACEH TOURISM DEVELOPMENT PROJECT ~ 162 8.1.1 KRUENG ACEH RIVER WALK ~ 164 8.1.2 ULEE LHEUE BEACH ~ 166 8.1.3 BANDA ACEH MADANI EDUCATION CENTER ~ 168 8.2 SIMEULUE MARINE AND TOURISM DEVELOPMENT ~ 170 8.2.1 DIVING CENTERS ~ 172 8.2.2 SURFING CENTERS ~ 174
9. SABANG FREE PORT AND FREE TRADE ZONE COMPLEX~ 177 9.1 SABANG INTERNATIONAL WATER FRONT ~ 178 9.2 PASSENGER CRUISE TERMINAL ~ 180 9.3 YACHT MARINA & SUPPORTING FACILITIES ~ 182 9.4 DIVING CENTRES ~ 184 9.5 SEAPORT 186 9.6 INDUSTRIAL AND TRADING SECTOR ~ 188 9.7 BALOHAN INDUSTRIAL PARK ~ 190 9.8 FISHERIES SECTOR ~ 192
10 DETAILED PLANS FOR INDUSTRIAL ESTATES ~ 194
10.1 ACEH INDUSTRIAL ESTATE AT LADONG, ACEH BESAR ~ 196 10.2 LHOKSEUMAWE INDUSTRIAL ESTATE ~ 198
NEGATIVE INVESTMENT LAW & REGULATIONS~ 200
The Aceh Investment Coordinating Board is the primary coordination body for the promotion and facilitation of investments in Aceh, Indonesia. It is responsible for providing a full range of support and services to investors wanting to establish or expand businesses, including preparing macro investment planning, identifying and promoting local potential, providing full assistance with permits and licensing, assisting and monitoring the existing investments, as well as assisting coordination and partnerships with all related agencies and with all districts/cities across the province to provide the best possible service for all investors.
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1 Introduction
Photo: Aceh Tsunami Museum
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1.1
Vision and Mission Aceh becomes the leading investment destination in Indonesia
The Board’s main objective is to increase the number and value of Investments in Aceh Province. While the specific targets are: ¤¤ ¤¤ ¤¤ ¤¤ ¤¤ ¤¤ ¤¤
Provision of efficient, effective, transparent, and accountable services toward businesses and the wider community. Providing a wide range of data and information for investors. Assistance in providing licensing and permits for both domestic and foreign investors. Conducting effective promotional activities to attract both domestic and foreign investors. Establishing investment partnerships either with domestic or foreign investors. Promoting partnerships between small-scale businesses and cooperatives and large-scale businesses. Continuous liaison with investors in their operations with an ultimate aim of improving the investment environment and the ease of doing business.
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In line with the vision, the followings are missions to be accomplished.
ʠʠ Improving human resources in investment. ʠʠ Implementing integrated planning and control of investment amongst central government, provincial government, local governments and private sectors. ʠʠ Promoting Aceh’s new brand image as a leading investment destination. ʠʠ Providing support and services to investors wanting to establish or expand business.
Photo: Sultan Iskandar Muda International Airport
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1.2
Aceh at a Glance
THAILAND Phuket
Andaman Sea
Ma lac ca
Banda Aceh
Str ait
M
ACEH ean Oc ian Ind North Sumatera Province
N
100km
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Aceh Province is located between 01 58’37, 2” - 06004’33, 6” North Latitude and 94057’57, 6” - 98017’13, 2” East Longitude with average altitude of 125 meters a.s l with an extensive highland area above 1,000 m a.s.l. 0
MALAYSIA
Kuala Lumpur
It has 119 islands, 35 mountains, including several volcanoes, 73 rivers, and 1 large crater lake.
SINGAPORE
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ACEH, THE WEST GATE OF INDONESIA
14 } Aceh Investment Coordinating Board
ACEH
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1.2.1
Area Topographically hilly with mountains, valleys, rivers, waterfalls, and narrow floodplain.
The total area of the territorial sea which extends to two hundred nautical miles measured from the coastline. Area of the Aceh Province is 5,677,081 ha; with over 2,270,080 ha of forests and around 800,401 ha of plantations while the industrial area is 3,928 ha.
5,677,081 ha Total Area
2,270,080 ha Forest
800,401 ha Plantation 3,928 ha. Industrial Area 16 } Aceh Investment Coordinating Board
N
100km
Land Use 2.21%
17.63%
0.07%
4.09%
3.49%
39.99%
7.00%
3.64%
2.45%
0.15%
125,439 ha Settlements
1,001,081 ha Plantations
3,928 ha Industry
232,023 ha Pasture
198,000 ha Mining
2,270,080 ha Forests
397,512 ha Rice fields
206,741 ha Inland water
139,049 ha Dry land farming
5.38%
305,624 ha Horticulture
8,433 ha Cleared Land
i
13.90% 789,171 ha Others
Total Area 5,677,081 ha Source: Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 2014
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1.2.2
Administrative Region Aceh province has undergone several administrative regional divisions and to date consists of 18 districts and 5 cities. In accordance with Aceh Qanun (law) No. 4 of 2003, Aceh Province has 289 subdistricts, 761 mukims (traditional divisions) and 6.464 villages.
Mukim
Village
Subdistrict
Mukim
Village
10
29
138
12
32
322
11
16
116
23
68
604
23
94
727
17
75
609
27
67
852
9
20
132
Subdistrict
Simeulue
West Aceh
Aceh Besar
Aceh Singkil
18
43
260
Pidie
South Aceh 16
51
385
Bireuen
Southeast Aceh
24
53
511
North Aceh
East Aceh
14
18
Aceh Tengah 18 } Aceh Investment Coordinating Board
295
Southwest Aceh
Aceh province consists of districts cities subdistricts, mukims , and villages.
18 5 289 761 6.464 Subdistrict
11
Mukim
Village
25
136
Gayo Lues
Mukim
Village
9
17
90
2
7
18
5
6
66
4
9
68
5
8
74
2013
289
761
6,464
2012
289
778
6.493
2011
284
755
6.450
Banda Aceh
12
27
213
Aceh Tamiang
Sabang 10
30
222
Nagan Raya
Langsa
9
21
172
Lhokseumawe
Aceh Jaya
10
11
232
Bener Meriah
Subulussalam
8
Pidie Jaya
Subdistrict
34
222
Source : Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 2014
1.2.3
Population
The population of Aceh in 2014 was estimated to be 5,437,120 people, consisting of 2,745,085 males and 2,692,035 females.
2,745,085 Males 2,692,035 Females
20 } Aceh Investment Coordinating Board
5,437,120 People
POPULATION NUMBERS BY SEX, 2012-2014 District/City
Male
Female
Total
Simeulue
46.741
44.270
91.011
Aceh Singkil
69.350
67.140
136.490
South Aceh
120.859
120.124
240.983
Southeast Aceh
113.797
113.254
227.051
222.902
218.414
441.316
Aceh Tengah
114.153
110.714
224.867
West Aceh
112.547
106.822
219.369
Aceh Besar
208.877
197.952
406.829
Pidie
224.700
226.365
451.065
Bireuen
226.077
230.438
456.515
North Aceh
314.838
314.942
629.780
Southwest Aceh
77.263
75.529
152.792
Gayo Lues
50.809
50.854
101.663
Aceh Tamiang
15.594
147.416
300.010
Nagan Raya
83.938
82.181
166.119
Aceh Jaya
45.097
42.682
87.779
Bener Meriah
82.373
79.031
161.404
Pidie Jaya
78.762
79.844
158.606
Banda Aceh
133.133
124.450
257.583
Sabang
20.722
19.553
40.275
Langsa
100.482
97.444
197.926
Lhokseumawe
101.438
100.338
201.776
Subulussalam
43.633
42.278
85.911
2014
2.745.085
2.692.035
5.437.120
2013
2.397.200
2.394.700
4.791.900
2012
2.347.000
2.346.900
4.693.900
East Aceh
Source : Registration and Population Bureau of Aceh
Photo: Banda Aceh Traffic
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1.2.4
Man Power/Labor Force
The government of Aceh provides 20% of its annual budget for human capital, so they can be your partnerts in business
1,926,173 Labor force
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141,067 Job seekers
LABOR FORCE BY DISTRICT/CITY, 2011-2013 District/City
Labor Force
Job Seekers
Simeulue
32.068
10.360
Aceh Singkil
39.921
41.031
South Aceh
92.015
17.252
Southeast Aceh
75.211
8.634
163.282
618
Aceh Tengah
91.607
10.143
West Aceh
78.889
10.153
Aceh Besar
152.389
3.019
Pidie
183.512
3.615
Bireuen
181.580
1.406
North Aceh
236.109
1.936
Southwest Aceh
54.851
5.258
Gayo Lues
41.321
3.938
105.841
1.451
Nagan Raya
62.816
5.824
Aceh Jaya
34.938
2.200
Bener Meriah
67.055
477
Pidie Jaya
60.147
1.540
-
6.744
Sabang
13.020
3.367
Langsa
61.781
879
Lhokseumawe
70.733
639
Subulussalam
27.087
583
2013
1.926.173
141.067
2012
1.978.491
130.383
2011
2.001.259
133.859
East Aceh
Aceh Tamiang
Banda Aceh
Source : Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 2014
Photo: Mifa Private Jetti, Meulaboh
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2 Spatial Planning
Photo: Protected Forest, Sabang
1.2
Spatial Planning
Photo: Banda Aceh from Sky
Strategic Areas:
1. The Center of National Strategic Activities (PKSN) : Sabang, free port and free trade area. 2. National Activity Center : Lhokseumawe and greater area (PKN) 3. Provincial Capital City, Banda Aceh
2,934,602 Ha Cultivated and Living Area Those areas include production forests, community forests, agricultural lands, lands for fisheries, mining, industry, tourism, housing and other living functions.
26 } Aceh Investment Coordinating Board
2,708,550 Ha Protected Areas and Conservation Areas Those areas include the following local protected areas, reserved and cultural heritage areas, national disaster-prone areas, areas for geology protection, and other provincial preservation areas.
Sabang
Banda Aceh
Lhokseumawe
Takengon Langsa Meulaboh
Cultivated Area Protected Area Conservation Area
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3 Infrastructure Support
Photo: Nagan Raya Steam Power Plant
3.1
Roads
Photo: Banda Aceh - Calang Highway
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Andaman Sea Ma lac ca
Banda Aceh
ean Oc ian Ind Provincial Road 1.813,33 Km
Str ait
North Sumatera Province
National Road 1.803,36 Km
Regencial Road 13.841,07 Km
N
N
100km Aceh Investment Profile
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3.1
Sea Ports
Photo: Malahayati Sea Port
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Ma lac ca
Andaman Sea Balohan-Sabang Malahayati - Aceh Besar
Str ait
Krueng Geukuh - North Aceh
Banda Aceh
Kuala Langsa
Calang Meulaboh
North Sumatera Province
Susoh Sinabang
ean Oc ian Ind
South Aceh Singkil
N
N
100km Aceh Investment Profile
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3.3
Airports
Photo: Sultan Iskandar Muda International Airport
34 } Aceh Investment Coordinating Board
Andaman Sea
Ma lac ca
Maimun Saleh Sabang International Airport Sultan Iskandar Muda
Banda Aceh
Str ait
Malikussaleh North Aceh Kuala Langsa
Cut Nyak Dhien Nagan Raya Kuala Batee Southwest Aceh
ean Oc ian Ind
Lasikin Sinabang
T. Cut Ali South Aceh
North Sumatera Province
Hamzah Fanshuri Singkil
N
N
100km Aceh Investment Profile
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3.4
Energy
Capacity
Aceh-North Sumatra Interconnection 343 MW
PLTG Arun Lhokseumawe 200 MW
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Nagan Raya Steam Power Plant 2x110 MW
Peusangan Hydro Power Plant 88MW
Tariff/KWH IDR
USD
1,300 VA
1.352,00
0,11
2,200 VA
1.352,00
0,11
3,500 VA - 5,500 VA
1.496,05
0,12
6,600 VA above
1.496,05
0,12
6,600 VA - 200 KVA
1.496,05
0,12
More than 200 KVA
1.159,30
0,10
30,000 KVA
1.011,99
0,08
1 USD = IDR 12.000
Ma lac ca
Andaman Sea
Banda Aceh
Aceh North Sumatra Interconnection
Str ait
PLTG Arun Lhokseumawe Peusangan Hydro Power
Nagan Raya Steam Power
ean Oc ian Ind
North Sumatera Province
N
N
100km Aceh Investment Profile
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3.5
Water
DISTRICT/CITY
38 } Aceh Investment Coordinating Board
WATER SUPPLY COMPANY
Simeulue
PDAM Tirta Fulawan
Aceh Singkil
PDAM Tirta Singkil
South Aceh
PDAM Tirta Naga Tapaktuan
Southeast Aceh
PDAM Tirta Agara Kutacane
East Aceh
PDAM Tirta Peusada
Aceh Tengah
PDAM Tirta Tawar
West Aceh
PDAM Tirta Meulaboh
Aceh Besar
PDAM Tirta Mon Tala
Pidie
PDAM Tirta Mon Krueng Baro
Bireuen
PDAM Tirta Krueng Peusangan
North Aceh
PDAM Tirta Mon Pase
Southwest Aceh
PDAM Tirta
Gayo Lues
PDAM Tirta Sejuk
Aceh Tamiang
PDAM Tirta Tamiang
Aceh Jaya
BLUD SPAM Tirta Mon Mata
Bener Meriah
PDAM Tirta Beungi
Pidie Jaya
PDAM Tirta Krueng Meureudu
Banda Aceh
PDAM Tirta Daroy
Sabang
PDAM Tirta Aneuk Laot
Langsa
PDAM Tirta Keumeuneng
Lhokseumawe
PDAM Ie Sare Beurata
Source : Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 2014
Andaman Sea
Ma lac ca
Str ait
Banda Aceh
ean Oc ian Ind
North Sumatera Province
N
N
100km Aceh Investment Profile
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4 Economic Performance
Photo: Indonesian Bank Building, Aceh
Economic Performance
5,51%
2,74% 4,84%
5,14%
4,18%
4,82%
2009 2010 2011 2012 2013 2014 Economic Growth Photo: Peusangan hydropowerplant project
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Inflation (%)
8,36
5,86
5,78
3,72
4 3,4
2009
2010
2011
2012
2013 100 108
2014
113 117 129 146
4,252.67 494,680.53
2,149,740.41
2014
Imports (ton)
2013
Exports (ton)
5,544.03
2012
451,918.48
6,274.39
2011
1,332,024.22
55.22
2010
1,288,051.43
2009
2,672,528.43
Minimum Wage
Rate USD 1 = IRD 12,000 Aceh Investment Profile
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FACTS AND FIGURES
The Big 5 Foreign Direct Investment Countries of Origin, 2014
Canada 718,015.73 US$
United Kingdom 610,000.00 US$
INVESTMENT REALIZATION Foreign Direct Investment
165,101,527
in US$
40,783,226
395 2009
26,133,215
5,085,052
2010
2011
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2012
31,541,856
2013
2014
France 539,244.52 US$
Malaysia 1,649,786.78 US$
Other Countries 1.380.952,38 US$
561,491,578
INVESTMENT REALIZATION Domestic Investment in US$
382,330,821
111,183,310
8,565,728
2009
13,127,198 4,407,581
2010
2011
2012
2013
2014 Aceh Investment Profile
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The Big 5 Foreign Direct Investment Districts/Cities, 2014
Sabang 2,142,857.14 US$ Banda Aceh 771,938.58 US$
Pidie 610,000.00 US$
West Aceh 747,167.90 US$
Southeast Aceh 1,333,333.33 US$
The Big 5 Foreign Direct Investment by Sectors, 2014 Mining 718,018.73 US$
Electricity, Gas & Water 360,055.46 US$
i Other Services 3,241,347.77 US$
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Trading & Reparation 533,843.34 US$
Food Crops & Plantations 316,453.45 US$
The Big 5 Domestic Investment Districts/Cities, 2014
Sabang 36.476.190,48 US$ Banda Aceh 7.619.047,62 US$
Lhokseumawe 113.428.571,43 US$
Aceh Tengah 7.428.571,43 US$
Singkil 8.666.666,67 US$
The Big 5 Domestic Investment by Sectors, 2014 Electricity, Gas & Water 7.580.952,38 US$
Trading and Service 8.380.952,38 US$
i Other Services 90.476.190,48 US$
Food Industry 16.952.380,95 US$
Chemical Industry & Pharmacy 1.714.285,71 US$ Aceh Investment Profile
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5 Ease of Doing Business in Aceh
Photo: Aceh Governor Residence
Photo: Sabang, Weh Island
REGULATIONS Law No 11 of 2006 for Aceh Governance. This law gives the Government of Aceh privileges to govern the province including control at economic development, health, education, safety, and public welfare.
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Law No. 37 of 2000 for Sabang Free Port and Free Trade Zone. Includes a wide range of facilities for doing business in Sabang, such as import duty and tax exemptions. The Sabang Management and Development Agency (BPKS) operates the zone and has authory to issue all licenses for investment in this area.
Presidential Regulation No. 11 of 2010 for Cooperation between the Government of Aceh and Foreign Institutions. This regulation gives the Government of Aceh authority to establish cooperation with foreign institutions, especially for economic development.
POTENTIAL INVESTORS INVESTMENT ACCELERATION TASK FORCE TEAM
INFORMATION, FACILITATION AND ASSISTANCE
LICENSING
One Stop Service for Local Licenses
PRINCIPLE LICENSE: BKPM/BPKS WORKING LICENCE: BKPM/BPKS LOC AL LICENCE: BP2T
CONSTRUCTION
> Security, convenience and law certainty > Land availability, labor, wages & incentive > Licensing administration > Policy, Regulation > Field Visit, etc
INVESTMENT EVALUATION AND CONTROLLING TASK FORCE TEAM FACILITATION AND ASSISTANCE
OPERATION AND BUSINESS EXPANSION
> Security, convenience and low certainty > Land dispute, labor dispute, etc > Regulation and licensing for business
NOTE: BKPM > Indonesian Investment Coordinating Board BPKS > Sabang Free Port and Free Trade Management Board BP2T > One Stop Service Office
INCENTIVES Providing incentives to investors in the form of: a. Reduction of Sectoral levy b. Stimulus funding, for selected for permits; Shall not exceed sectors; Stimulus funds 50% (fifty percent) of the (levy) awarded in the form of interest payable amount. subsidy shall not exceed 2 % (two percent) of the rate of interest paid for the purchase of machinery or equipment.
c.
Capital relief; in the form of equity and assets in accordance with the ability of the Government of Aceh .
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ONE STOP SERVICE FOR PERMITS AND LICENSES
Incomplete Submit Application Complete Application Received
Check for Completeness
Computerization
Technical Examination/ Field Observations
Technical Team Meeting for Validation/Consideration for Qualified License
Output: 1. Reject 2. Pending 3. Accept
Issue of Permit/License Application/Document Payment of Permit Fees into Bank
1. Time Given to Complete Application
Record by Administration
2. Complete the requirement
Permit signed on behalf of Government
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Print Permits Documents
3. Resubmit and Proceed Again
FOR INVESTMENT ONLY
BUSINESS LICENSING PROCEDURE (Based on Perka BKPM No. 5/2013)
INVESTOR APPLIES
PRINCIPLE LICENSE
BUSINESS LICENSE ISSUED
»» Operational Permit from Related Ministry »» Regional License
*) Business License is issued by the One Stop Service Office according to the authorization given. If there is NO authorization/ delegation, then the permit/license is issued by the relevant ministry
Proceed with Production
MECHANISM FOR COMPLAINTS FROM BUSINESSMEN IN ONE STOP SERVICE OFFICE (BP2T) TECHNICAL STAFF
COMPLAINING CUSTOMER
CUSTOMER SERVICE
Complaint cannot be solved by Customer Service
Complaint cannot be solved by Technical Staff Head of Information Service & Complaints
TECHNICAL TEAM
COMPLAINING CUSTOMER
HEAD OF ONE STOP SERVICE OFFICE OF ACEH PROVINCE
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6 Detailed Plans for Agro Industries
Photo: Palm Oil Industry, PT. Megalopolis, Aceh Jaya
6.1 Detailed Plans for Agro Industry
6.1.1 Detailed Plans for Food Crops 6.1.2 Detailed Plans for Horticulture
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6.1.1
Detailed Plan for Food Crops
PADDY Rice, the major food crop is particularly important for food security. The overall demand for rice in Indonesia currently reaches 39 million tons (http://www.statista.com), while Aceh domestic consumption is about 985.28 tons (2013). Aceh is a rice surplus province and with rice demand growing there is huge potential to expand paddy rice farming and processing to meet the domestic market demands. o The annual production of paddy rice was about 1,956,938 tons in 2013 o Produced by about 359,478 farmers throughout Aceh.
58 } Aceh Investment Coordinating Board
BIREUEN NORTH ACEH EAST ACEH
AREA AND PRODUCTION OF PADDY BY DISTRICT/CITY, 2013
ACEH BESAR PIDIE
District
SOUTHEAST ACEH
Simeulue
6,014
21,866
Aceh Singkil
1,255
4,980
South Aceh
14,655
75,563
Southeast Aceh
23,130
105,564
East Aceh
42,793
188,254
8,058
35,371
West Aceh
12,702
65,314
Aceh Besar
36,554
159,929
Pidie
44,160
204,429
Bireuen
38,426
207,755
North Aceh
69,286
277,749
Southwest Aceh
11,063
126,904
5,452
26,141
Aceh Tamiang
28,184
119,609
Nagan Raya
21,864
184,932
Aceh Jaya
9,664
42,495
Bener Meriah
2,191
10,754
14,718
70,893
61
439
Sabang
-
-
Langsa
3,199
13,579
Lhokseumawe
2,833
10,432
Subulussalam
1,625
3,986
2013
397,887
1,956,938
2012
438,855
1,788,738
2011
400,917
1,760,657
Aceh Tengah
Paddy rice is a key crop in Aceh, with plantings in 397,887 Ha
Planted Area Production (Ha) (Ton/Annum)
Gayo Lues
Pidie Jaya Banda Aceh
Source : Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 2014 Aceh Investment Profile
{ 59
Pidie Rice Milling Industry Project Pidie District is one of the leading rice producers in Aceh; its production has increased significantly. The main rice varieties planted are Ciherang and Inpari. Milling is a crucial post-harvest activity in the production of rice (http://www.ifc.org) and surplus rice production in Pidie is a key element to establish a rice milling industry. An existing rice milling plant was built in 2014 in Pidie to produce high quality rice as well as to create a competitive price in local and national market.
PROJECT PURPOSE Establishing the modern rice milling plant, capacity 8 ton/hour.
INVESTMENT ESTIMATE
USD 8,000,000
Malahayati Seaport PIDIE
Jeumpa Village
Spring Water
Sultan Iskandar Muda International Air port
INFRASTRUCTURE SUPPORT Sultan Iskandar Muda
60 } Aceh Investment Coordinating Board
Malahayati
River, Spring
Supported
by condition: Good by surface: Asphalt
Photo : Illustration
Land Area: 4 Ha Location: Jeumpa Village, Glumpang Minyeuk, Glumpang Tiga Sub District
Photo : Illustration
Land Status: Pidie District Government Land
Assets: »» Building (Aceh Provincial Government Owned) »» Equipment/Machine (Aceh Provincial Government Owned)
Aceh Investment Profile
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CORN
PROJECT PURPOSE
Establishing poultry feed factory (maize bran, maize germ, cattle feed, corn grits), which has drying machine (capacity 40 tons/hour) and warehouse (capacity 9000 tons)
INVESTMENT ESTIMATE
USD 12 Million
“There is a reason why corn [Zea mays] is the most-produced grain worldwide; it is involved in just about every aspect of our lives. Corn provides about 21 percent of human nutrition across the globe. Corn is a major animal feed. There are many other nonculinary uses for the grain as well; it is a key ingredient in ethanol, cosmetics, ink, glue, laundry starch, medicines and fabrics, just to name a few. It also can be the raw material for baskets and toys. In short, corn is an essential ingredient in our diets and also in our world� (source: en.wikipedia.org/wiki/ Maize). As a major producers of corn, we offer opportunities for potential investors to set up a feed industry in Aceh.
Photo : Illustration
62 } Aceh Investment Coordinating Board
SOUTH ACEH
SOUTHEAST ACEH
MAIZE HARVESTED AREA PURSUANT TO INTENSIFICATION BY DISTRICT/CITY (HA), 2013 District Simeulue
-
-
118
54
6,496
6,189
29,904
33,384
1,040
464
Aceh Tengah
101
43
West Aceh
276
66
Aceh Besar
1,054
72
514
346
Bireuen
1,149
568
North Aceh
1,337
280
276
21
Gayo Lues
1,415
914
Aceh Tamiang
1,289
648
Nagan Raya
415
249
Aceh Jaya
258
137
Bener Meriah
635
186
Pidie Jaya
323
125
1
-
Sabang
36
-
Langsa
3
2
Lhokseumawe
57
-
Subulussalam
463
351
2013
47,160
44,099
2012
51,788
43,675
2011
49,429
41,853
Aceh Singkil South Aceh Southeast Aceh East Aceh
Pidie
... it is a key ingredient in ethanol, cosmetics, ink, glue, laundry starch, medicines and fabrics, just to name a few.
Planted Area Harvested (Ha) Area (Ha)
Southwest Aceh
Banda Aceh
Aceh Investment Profile
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South Aceh Corn Industry Project Corn is one of the main commodities in South Aceh. Its production has increased to over years; in 2013, the planted area was 11,856 ha and it increased by 12, 331 ha in 2014, which resulted in an increase in the harvest volume. Total dry land in 2015 was ± 86.479,36 ha, spread over 18 sub districts in South Aceh and around ± 13.000 ha was used for corn plantation with target of production is 72.730 tons. Thus it is feasible to establish a cornprocessing industry in South Aceh
Corn dry-milling industry capacity 60 tons and warehouse 2 units INVESTMENT ESTIMATE
USD 83,333
Working Capital of both projects is
USD 166,666
PROJECT PURPOSE: Establishing corn dry-milling industry capacity 60 tons and poultry feed factory (maize bran, maize germ, cattle feed, corn grits) capacity 10 tons
TOTAL INVESTMENT USD 350,000
Land : 5 ha Location: Seuneubok Village, Pasie Raja Sub District Ownership: Regional Owned-Enterprises Fajar Selatan
Poultry feed factory capacity 10 tons INVESTMENT ESTIMATION
USD 100,000
64 } Aceh Investment Coordinating Board
Photo : Illustration
SOUTH ACEH
Photo : Illustration
Aceh Investment Profile
{ 65
SOYBEAN AREA AND PRODUCTION OF SOYBEAN BY DISTRICT/CITY, 2013 District
Planted Area Harvested (Ha) Area (Ha)
Simeulue
-
-
Aceh Singkil
1
-
South Aceh
96
73
-
-
5,365
3,232
407
339
West Aceh
28
21
Aceh Besar
855
134
Pidie
2,013
1,536
Bireuen
24,311
19,834
North Aceh
2,588
1,786
Southwest Aceh
15
6
Gayo Lues
12
17
2,162
552
Nagan Raya
219
218
Aceh Jaya
360
384
Bener Meriah
496
28
2,291
2,395
Banda Aceh
-
-
Sabang
7
-
Langsa
-
-
Lhokseumawe
19
-
Subulussalam
31
24
2013
41,276
30,579
2012
44,638
35,599
2011
41,009
35,370
Southeast Aceh East Aceh Aceh Tengah
Aceh Tamiang
Pidie Jaya
Source : Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 2014
66 } Aceh Investment Coordinating Board
PROJECT PURPOSE
Establishing poultry feed factory (cattle feed), which has drying machine (capacity 40 tons/hour) and warehouse (capacity 9000 tons)
INVESTMENT ESTIMATE
USD 12 Million
PIDIE JAYA PIDIE JAYA BIREUEN NORTH ACEH
41,276 Ha,
Soybean is a major source for vegetable protein and vegetable oil in the world.
30,579 tons.
Nationwide, soybean production in 2013 was 847,16000 tons on 554,132 ha of land. In Aceh, soybean was planted on approximately 41,276 ha in 2013 with production of 30,579 tons.
Photo : Illustration
Aceh Investment Profile
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6.1.2
Detailed Plan of Horticulture Bener Meriah Horticultures Project
A horticultural area is a geographic area that has similar ecosystems and united by common infrastructure facilities thus forming a region filled with various business activities including the provision of facilities for horticultural production, cultivation, post-harvest handling and processing, marketing, and support activities (Indonesia Directorate General of Horticulture). Its main purpose is to develop the well-being of society through the utilization of resources in a sustainable manner by integrating communal relations, the economy, and the environment in harmony.
Photo : Illustration
68 } Aceh Investment Coordinating Board
BENER MERIAH
POTENTIALS (tons) Horticulture
Areas Planted (Ha)
Production (Ton/Annum)
Vegetable Potatoes
620
81,080
Cabbages
235
55,789
Garlic Onions
10
1,260
Red onions
191
17,016
Tomato
285
228,945
Chilie Peppers
418
108,437
Carrots
166
22,063
Pineapples
7,165
8.60
Avocados
27,316
912
Oranges
30,593
316.80
4,838
10,190
Fruit
Passion fruit Source : Statistic of Bener Meriah (BPS) 2013
Aceh Investment Profile
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Lineung Buleun Horticulture Project
Malikussaleh Air Port
Krueng Geukuh Sea Port Lineung Buleun
PROJECT PURPOSE 造造 Establishing organic farm base on a production system that sustains the health of soils, ecosystem and people 造造 Selling the products in international markets
INVESTMENT ESTIMATE
USD 1,025,850
70 } Aceh Investment Coordinating Board
INFRASTRUCTURE SUPPORT : Malikussaleh Krueng Geukuh River, Spring Supported by condition: Moderate by surface: Gravel and Asphalth
BENER MERIAH
The Government of Bener Meriah District has selected Linueng Buleun Sub District as a horticultural development area. It is very potential for horticultural farms, as it is close to the new hydro power plant and has direct access to seaports on the east coast. The target is to supply organic fruits and vegetables for international markets. The very supportive and welcome local community ensures that investment in this area is very promising.
Photo : Lineung Buleun Potato Farm
Aceh Investment Profile
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Bener Meriah Potato Development Project Potato (Solanum tuberosum) is one of the world’s favorite foods and it is the fourth main food crop after paddy, wheat and corn. Today Indonesia is the biggest potato producer in Southeast Asia. The total area used for potatoes in Indonesia was 70.187 ha in 2013 with total production of 823.856 tons. One of the target areas for potato production is located in Bener Meriah District in Aceh Province.
Pintu Rime Gayo
Bener Kelipah
Permata Mesidah
Gajah Putih Timang Gajah Wih Pesam
72 } Aceh Investment Coordinating Board
Bukit
Bandar
Syiah Utama
Photo: Harvesting Potatos in Lineung Buleun, Bener Meriah
The Governments of Aceh and Bener Meriah District have made serious efforts to accelerate potato growing in Bener Meriah. To meet the demand for potatoes both from domestic and from overseas markets, we invite investors to invest in this potential sector through collaboration with local farmers using contract farming system.
AREAS PLANTED AND PRODUCTION OF POTATO IN BENER MERIAH DISTRICT Sub district Timang Gajah
Land rental per harvest (1 ha) = USD 333,33 Operational production costs = USD 3,120.42 Labor cost = USD 853,32 Total investment = USD 4,037.08 Profit = USD 3,526.25 B/C = 1.73
Production (Ton)
5
63
17
446
704
18,317
70
1,928
478
7,581
Permata
2,175
43,825
Mesidah
40
213
3,489
72,373
Wih Pesam Bukit
Estimates for potato development project (costs per hectare):
Planted Area (Ha)
Bandar Bener Kelipah
Total
Aceh Investment Profile
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6.2 Detailed Plans for Plantations 6.2.1 Palm Oil 6.2.2 Rubber 6.2.3 Cocoa 6.2.4 Coffee 6.2.5 Coconut
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Aceh Investment Profile
{ 75
6.2.1
Palm Oil
PALM OIL PLANTED AREAS AND PRODUCTION BY DISTRICT / CITY IN 2013 District Simeulue
Production (Tons/ Annum)
Planted Area (Ha) 3,387
1,826
Aceh Singkil
55,441
397,134
South Aceh
10,209
34,910
7,454
20,551
60,592
278,550
-
-
West Aceh
26,144
206,240
Aceh Besar
1,282
407
77
16
5,181
22,197
North Aceh
24,953
115,477
Southwest Aceh
20,767
14,215
-
-
Aceh Tamiang
54,442
496,986
Nagan Raya
82,252
329,321
Aceh Jaya
16,714
19,348
Bener Meriah
1,300
117
767
1,090
Banda Aceh
-
-
Sabang
-
-
Langsa
399
825
Lhokseumawe
208
243
Subulussalam
21,701
49,225
2013
393,270
1,988,678
2012
368,650
5,070,555
2011
365,996
572,953
Southeast Aceh East Aceh Aceh Tengah
Pidie Bireuen
Gayo Lues
Pidie Jaya
Source : Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 2014
76 } Aceh Investment Coordinating Board
In 2010, production by smallholders was 185,265 tons. Government plantations production was 69,634 tons, and private plantation productions was 238,927 tons, total 493,826 tons.
Palm oil constitutes the largest plantation crop in Aceh by volume and by area and economic value. The palm oil industry has significant growth potential as a major source of supply for food and bio fuel products. The Government of Aceh has made several strategic plans for palm oil. 1. Create operational and policy support for sustainable palm oil among governments, private sector, NGOs, and smallholders. 2. Support palm oil public-private investment partnerships 3. Reduce threats to high conservation value forests and peat swamp ecosystems. 4. Create a provincial seed certification and distribution program 5. Improve supply chains and pricing transparency for palm oil production and processing.
Crude Palm Oil (CPO) is the main product of the palm oil industry. Aceh Tamiang, Aceh Singkil, Nagan Raya, and West Aceh have the highest CPO production that makes those areas suitable for processing industry.
Photo : Illustration
Aceh Investment Profile
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Aceh Tamiang CPO Processing Industry Aceh Tamiang is one of the major producers of palm oil in Aceh and has high potential for establishment of a CPO processing industry. Raw materials is fresh fruit bunches come from 51,677.22 ha of estates and 20,347 ha of smallholders spread over 11 sub districts in Aceh Tamiang. Based on market analysis, a CPO factory can store about 2,160 tons of fresh bunches and produce 530 tons/ day of palm oil.
PROJECT PURPOSE
Establishing 2 units of CPO milling plant capacity 30 tons/hour
INVESTMENT ESTIMATE
USD 2,000,000
o NPV: 15,790,000 USD o IRR: 30,19% o B/C: 1,88 o PAYBACK PERIOD: 5 YEARS ( Estimates December 2014 )
Kuala Langsa Sea Port ACEH TAMIANG
Seruway Area: 6 Ha Location: Seruway Land Status: Government Land
78 } Aceh Investment Coordinating Board
EXISTING CPO PROCESSING PLANTS: Tanjung Seumantoh, Pulau Tiga PTPN I, PT. Socfindo, PT. Padang Palma Permai, PT. Parasawita, PT. Mapoli Raya, PT. Sisirau, PT. Bahari Dwikencana Lestari, PT. Pati Sari, PT. Tri Agro Palma Tamiang, and CV Selaksa Windu) with production capacity 5 – 45 ton/ hour.
Photo: Palm Oil Processing Industry, PT. Megalopolis, Aceh Jaya
Aceh Investment Profile
{ 79
North Aceh CPO Processing Industry PROJECT PURPOSE
The total production of oil palm fruit in North Aceh in 2013 was 115,477; produced by smallholders (39,156 tons) and estates (76,321 tons). Government estates (PTPN-I) had 7,506 ha of oil palm plantations and own their CPO factory in Cok Girek with capacity 60 tons/hour or 168,000 tons/year. Smallholders supplied around 18,000 tons of fresh bunches/ year.
Malikussaleh Air Port
80 } Aceh Investment Coordinating Board
Establishing 2 units of CPO milling plant capacity 60 ton/hour
INVESTMENT ESTIMATE
USD 2,000,000
o NPV: 15,790,000 USD o IRR: 30,19% o B/C: 1,88 o PAYBACK PERIOD: 5 YEARS ( Estimation December 2014 )
Krueng Geukuh Sea Port Lhoksukon
NORTH ACEH
Area: 25 Ha Location: Lhoksukon Land Status: Government Land
Photo: Illustration
Aceh Investment Profile
{ 81
West Aceh Cooking Oil Processing Industry PROJECT PURPOSE
Establishing Cooking Oil Processing Industry The demand for cooking oil has been rising for many years. West Aceh produced 206,240 tons of crude palm oil (CPO) in 2013 and production is continuing to increase. CPO is the raw material for cooking oil, hence this large volume of CPO is a big reason to establish a palm oil cooking oil processing factory in West Aceh since the cooking oil is a value added product.
WEST ACEH
Beuragang
Land Area: 50 Ha Location: Beuregang Industrial Area Land Status: Government Land
82 } Aceh Investment Coordinating Board
INVESTMENT ESTIMATE
USD 13 million
o Net Present Value: USD 8,4 million o Return on Investment: 225 % o PAYBACK PERIOD: 7 YEARS
INFRASTRUCTURE SUPPORT : Cut Nyak Dhien Meulaboh River, Spring Nagan Raya Steam Power Plant by condition: Moderate by surface: Gravel and Alsphat
Photo: West Aceh, CPO processing industry
Aceh Investment Profile
{ 83
Aceh Tamiang Cooking Oil Processing Industry
Aceh Tamiang as the center of palm plantation in Aceh has 51,677,22 ha of estate plantations and about 20,347 ha of smallholders plantings with total production of 2,690,68 ton/day. Eleven palm oil mills are located in Karang Baru, Seuruway, Kejuruan Muda, and Rantau Sub Districts produce CPO with the capacity of 255/hour.
The supply of CPO has been sufficient; therefore it is very feasible to establish cooking oil Industry with the capacity 200 500 ton/CPO per day. The factory will be built on the area of 4-6 Ha, designed to include supported buildings, housing, Waste Water Treatment Plant (WWTP) and green belt.
Kuala Langsa Sea Port ACEH TAMIANG
Seruway Land Area Location Land Status
: 4-6 Ha : Green Industrial Park Aceh Tamiang Sereuway/Bendahara District : Private Ownership
INFRASTRUCTURE SUPPORT Malikussaleh
Kuala Langsa
84 } Aceh Investment Coordinating Board
River, Spring
Supported
by condition: Moderate by surface: Gravel and Land
Photo: Illustration
Development plan of Cooking Oil Industry (CPO Processing), with capacity 200 – 500 ton/day is divided into three as follows: Pre-Construction Phase »» Public Relations informing communities pre design of complex »» Obtaining Permit
Detailed Design »» Appoint construction contractor (Tender Process) »» Build road access »» Build Cooking Oil Factory »» Build Oil Storage Tanks »» Build Waste Water Treatment/ Recycling Plant »» Mobilize equipment for factory »» Build offices, housing and other support facilities »»
Post-Construction Phase »» Appoint factory director and engage staff »» Start operation of factory & WWT/RP
Aceh Investment Profile
{ 85
6.2.2
Rubber Natural rubber consists of suitable polymers of the organic compound isoprene with minor impurities of other organic compounds plus water. The rubber trees can grow to 15-25 meters in height with a large trunk and high branching. Currently, rubber is harvested mainly in the form of latex from rubber trees (Hevea Brasiliiensis), which was tapped from the cut bark of the plant. This used to produce other forms of rubber, such as crumb rubber and plank rubber. Natural rubber is used extensively in many applications and products, either alone or in combination with other materials such as wood on charcoal, wood or lumber for household appliances, furnitures, door and window profiles, hoses, belts, matting, flooring and dampeners (antivibration mounts) for the automotive industry, in the aircraft industry, textiles, gloves (medical, household and industrial) and toys. There are three (3) districts in Aceh with high rubber production that are suitable for processing industry, West Aceh, East Aceh, and Aceh Tamiang. The following table shows total production for each district. Existing Company: PT. Aceh Rubber Industry (Aceh Tamiang)
86 } Aceh Investment Coordinating Board
RUBBER PLANTED AREA AND PRODUCTION OF SMALLHOLDER & ESTATE ENTERPRISES BY DISTRICT/ CITY 2013 District / City
Planted Production Area (Ha) (Ton)
Simeulue
1,833
106
Aceh Singkil
3,660
2,332
South Aceh
1,219
271
Southeast Aceh
12,141
4,973
East Aceh
31,607
40,801
-
-
West Aceh
29,050
23,555
Aceh Besar
413
1
Pidie
140
-
3,363
1,383
12,454
6,890
1,027
136
190
18
Aceh Tamiang
22,640
896,361
Nagan Raya
12,358
3,356
Aceh Jaya
13,576
5,406
-
-
543
1
Banda Aceh
-
-
Sabang
-
-
Langsa
1,779
1,302
Lhokseumawe
18
16
Subulussalam
4,471
2,293
2013
152,481
989,201
2012
149,678
961,627
2011
144,291
87,407
Aceh Tengah
Bireuen North Aceh Southwest Aceh Gayo Lues
Bener Meriah Pidie Jaya
Source : Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 2014
Photo: PT. Aceh Rubber Industries, East Aceh
o Net Present Value: 234,618,007 USD o Internal Rate on Return: 53,81% o Benefit Cost ratio: 1,26 o Net Benefit Cost ratio: 3,739 o PAYBACK PERIOD: 6 YEARS AND 8 MONTHS
PROJECT PURPOSE
Establishing rubber-processing industries
INVESTMENT ESTIMATE
USD 21,161,739
Aceh Investment Profile
{ 87
6.2.3
Cacao
Indonesia is the third largest producer of cacao in the world after the Ivory Coast and Ghana. Aceh, one of the largest producers of cacao in Indonesia, have plantations spread almost in all districts, from Pidie in the eastern part of Aceh, to Simeulue Island in the outer edge of Aceh Province. Aceh cacao has been exported to many countries in the world. The statistics show that in 2010, Aceh exported 420,978.40 kg of cacao beans worth USD 1,166,080.30 (Aceh Industry and Trade Agency, 2012). The development strategy is to create a sustainable cacao industry. The upstream industry will be with the focus on boosting value added in the downstream sector. There are four districts in Aceh that are major cacao producers suitable for a cacao processing industry, Pidie Jaya, North Aceh, East Aceh and Southeast Aceh.
CACAO AREAS AND PRODUCTION BY DISTRICT/CITY 2011-2013
District/City Simeulue
Planted Area (Ha)
Production (ton)
1,598
119
Aceh Singkil
640
168
South Aceh
1,332
169
Southeast Aceh
19,994
8,843
East Aceh
12,484
6,684
2,322
786
West Aceh
809
317
Aceh Besar
3,302
426
10,160
2,674
Bireuen
6,671
2,559
North Aceh
9,662
3,288
Southwest Aceh
4,300
567
Gayo Lues
4,493
902
Aceh Tamiang
2,096
665
Nagan Raya
5,405
1,327
Aceh Jaya
1,292
159
Bener Meriah
1,053
332
13,484
4,375
-
-
Sabang
737
193
Langsa
301
126
Lhokseumawe
135
65
Subulussalam
826
143
2013
103,096
34,887
2012
100,490
37,120
2011
89,512
37,594
Aceh Tengah
Pidie
Pidie Jaya Banda Aceh
Source : Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 2014
88 } Aceh Investment Coordinating Board
PROJECT PURPOSE
o Net Present Value: 5,730,808.44 USD o Internal Rate of Return: 22,4% o Benefit Cost ratio: 1,69 o PAYBACK PERIOD: 6 YEARS AND 9 MONTHS
o Establishing cacao processing industries (paste, butter, chocolate powder) o Establishing packaging industry.
INVESTMENT ESTIMATE
USD 97 Million Photo: Cacao Plantation in Pidie Jaya
Aceh Investment Profile
{ 89
6.2.4
Coffee Gayo coffee is a typical coffee from the Gayo highlands, an area that covers Bener Meriah, Central Aceh and Gayo Lues Districts Gayo is the name of the highland people who live in this region. The majority of people in this area are coffee growers. Coffee planting started in 1908 and mainly is Arabica coffee. In fact, Arabica coffee production from the Gayo region is the largest on Asia.
Gayo coffee has been exported to many countries in the world. The statistics indicate that in 2012, Aceh exported coffee beans to 19 countries (South Korea, China, Japan, Taiwan, Hong Kong, Malaysia, Singapore, United State, Canada, New Zealand, Australia, Norway, British, Germany, Ireland). 8,798 tons valued at USD 52 million were exported. (Aceh Industry and Trade Agency, 2014).
Gayo coffee has gained some international certifications recognition for its excellent quality especially its organic coffee which is fair trade certified with Geographical Indication (GI). In particular, Gayo Arabica coffee got the highest score in the Indonesian Specialty Coffee Auction 2010 in Bali, which guarantees that it is the best coffee in the world.
COFFEE PLANTED AREA AND PRODUCTION OF SMALLHOLDER BY DISTRICT/CITY 2013 Robusta
Total Robusta & Arabika (Ton)
Arabika
Sub District
Farmers
Planted Area (Ha)
Production (Ton)
Planted Area (Ha)
Production (Tons)
Planted Area (Ha)
Production (Tons)
Aceh Tengah
2,315
763
48,300
27,079
50,615
27,842
33,000
Bener Meriah
1,795
808
49,496
15,000
51,291
15,808
29,000
-
-
4,770
1,145
4,770
1,145
40,000
9,572
1,569
-
-
9,572
1,569
11,846
2013
13,682
3,140
102,566
43,224
116,248
46,364
113,846
2012
11,367
2,377
54,266
16,145
65,633
18,522
113,846
2011
23,254
4,709
107,336
44,369
130,590
49,078
101,735
Gayo Lues Pidie
Source : Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 2014
90 } Aceh Investment Coordinating Board
8,798,532.84 kg
Aceh export volumes of coffee beans to 18 countries Three major producers of coffee in Aceh are Bener Meriah, Aceh Tengah and Gayo Lues. These areas are suitable for a big coffee processing industry.
Photo: Illustration
Aceh Investment Profile
{ 91
Aceh Tengah Coffee Processing Industry The demand for Gayo Coffee both in domestic and overseas market are very high. It is currently sold as green beans. As the government encourages to increase value added of the Aceh coffee, it is a big
INVESTMENT ESTIMATION
USD 6,258,377 o Establishing plant and Working Capital : US$ 3,333,333 o Operational Cost : US$ 2,925,043
opportunity to build a modern coffee processing industry. The popular culture of coffee consumption in Aceh is also a good prospect to establish Gayo instant coffee processing industry.
*(US$ 1 = IDR 12,000) o NPV = US$ 1,844,999 o IRR = 23% o BC = 1,6 o PAYBACK PERIOD: 6 YEARS
Krueng Geukuh Seaport ACEH TENGAH
Mulie Jadi
Area : 4 ha Location : Mulie Jadi Village, Silih Nara Sub District Land Status : Private Ownership
INFRASTRUCTURE SUPPORT Malikussaleh/ Rembele
Krueng Gekuh
92 } Aceh Investment Coordinating Board
River
Supported
by condition: Moderate by surface: Asphalt, Gravel and Land
PROJECT PURPOSE: ESTABLISHING INSTANT COFFEEE PROCESSING INDUSTRY Based on market observation, at present, at least 10 brands of instant coffee are sold in the market, which shows the growing of instant coffee consumption; hence the prospect is very promising. Investment estimation for establishing instant coffee processing industry with the capacity 30,000.000 sachets is: sale price at producer/industry level per sachet US $ 0.10 and premium quality US$ 0,04 per sachet.
The short supply chain within Aceh region overs an adventage for investment since the production cost is less than the average cost (assuming green bean price US$ 4,58/Kg). The price is more competitive and accordingly is able to create market segment both on market share and market space. Moreover, it is able to compete with other large scale national products.
Aceh Investment Profile
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6.2.5
Coconut
COCONUT PLANTED AREA AND PRODUCTION OF SMALLHOLDER BY DISTRICT/CITY 2013 District/City
Planted Area (Ha)
Production (Ton)
Simeulue
7,472
2,319
Aceh Singkil
5,230
2,232
South Aceh
6,523
2,961
760
369
6,797
6,012
103
13
West Aceh
2,832
1,459
Aceh Besar
14,351
8,025
Pidie
8,633
5,216
Bireuen
14,341
10,132
North Aceh
16,695
9,586
Southwest Aceh
2,605
900
Gayo Lues
450
81
Aceh Tamiang
586
242
Nagan Raya
1,351
658
Aceh Jaya
6,358
1,379
-
-
3,401
1,224
-
-
Sabang
2,645
1,718
Langsa
473
283
Lhokseumawe
631
355
Subulussalam
839
270
2013
103,076
55,434
2012
107,395
59,766
2011
106,542
62,926
Southeast Aceh East Aceh Central Aceh
Bener Meriah Pidie Jaya Banda Aceh
Source : Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 2014
94 } Aceh Investment Coordinating Board
Coconut industry can be developed by either farmer group level or larger scaled industry, for domestic and international market, such as young coconut products, coconut cocktail, coconut jam, baby food supplements, soft drinks, nata de coco, coconut water sauce, coconut flour, virgin coconut oil, coconut shell charcoal, briquette charcoal, liquid smoke of coconut shell, coconut wood, and organic fertilizer. While the exporting goods are such as copra, white copra, raw coconut oil, coconut cake, desiccated coconut, and active charcoal.
Photo: Illustration
Aceh Investment Profile
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Aceh Besar Virgin Coconut Oil Processing Industries
PROJECT PURPOSE
Establishing Virgin Coconut Oil Processing Industry
INVESTMENT ESTIMATION
USD 87,286
Area Location Land Status
o Net Present Value: 15.5% o Internal Rate of Return: 57.39% o Benefit Cost ratio: 2.19
: 4 ha : Ladong Industrial Park : Government Ownership
Ladong Industrial Park Malahayati Seaport
ACEH BESAR
INFRASTRUCTURE SUPPORT Iskandar Muda International Air Port
Malahayati
96 } Aceh Investment Coordinating Board
River, Spring
Supported
by condition: Good by surface: Asphalt
Photo: Illustration
Aceh Investment Profile
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6.3 Detailed Plans for Essential Oil Production 6.3.1 Patchouli 6.3.1 Nutmeg 6.3.3 Citronela
98 } Aceh Investment Coordinating Board
Aceh Investment Profile
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6.3.1
Patchouli Patchouli (pogostemoncablinbenth) is a tropical evergreen shrub of the mint family. A valuable essential oil is distilled from its dried leaves. The oil is used in cosmetics and is particularly valuable in the global perfume industry and modern scented industrial products such as paper towels, laundry detergents, and air fresheners where the demand for it is still growing. Patchouli also can be used in antiseptic, pesticide, and as a fixative to bind other essential oils. Currently Indonesia is the world largest supplier of patchouli, supplying more than 80% of the world market. Patchouli is extensively cultivated in Aceh, Indonesia. Due to its high alcohol content and flavor, it is the Aceh variety of this tropical plant that is one of the most sought after (svet.charita.cz) The Geographical Indication Expert of the Indonesian Ministry of Agriculture, Dr. Riyaldi, affirmed that Aceh is very potential for the development of large-scale patchouli businesses, because of its supporting condition of land and its quality. According to a research, Aceh patchouli oil contains patchouli alcohol (yield) 2.5% to 3.3%, which makes it the best patchouli in the world (patchouli-aceh.com, 03/18/2012). As one of the major producers of patchouli, Aceh offers opportunities for potential investors to set up patchouli processing industries in the region.
100 } Aceh Investment Coordinating Board
PATCHOULI AREA AND PRODUCTION OF SMALLHOLDER BY DISTRICT/CITY, 2013 District/City Simeulue
Planted Area (Ha)
Production (Ton) -
-
Aceh Singkil
40
70
South Aceh
202
240
Southeast Aceh
634
950
-
-
Aceh Tengah
23
100
West Aceh
20
276
Aceh Besar
118
70
8
42
36
48
North Aceh
132
170
Southwest Aceh
42
450
863
1,250
Aceh Tamiang
3
8
Nagan Raya
7
86
500
572
Bener Meriah
-
-
Pidie Jaya
3
8
Banda Aceh
-
-
Sabang
-
-
Langsa
-
-
Lhokseumawe
-
-
Subulussalam
19
28
2013
2,650
4,368
2012
5,300
8,736
2011
10,560
17,402
East Aceh
Pidie Bireuen
Gayo Lues
Aceh Jaya
Source : Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 2014
According to a research, Aceh patchouli oil contains patchouli alcohol (yield) 2.5% to 3.3%, which makes it the best patchouli in the world
Aceh produces the best patchouli in the world. The main production areas are Aceh Jaya, South Aceh, Southwest Aceh and Gayo Lues Districts, which are suitable for large-scale processing industries. The following table shows the total production for each district.
Photo: Illustration
Aceh Investment Profile
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Aceh Jaya Patchouli Processing Industry Aceh Jaya as one of the main patchouli producers in Aceh has 501 ha of patchouli plantations with total production 36,39 tons/day. The Government of Aceh Jaya District has encouraged the increased high quality patchouli production volume to support the
ACEH JAYA
Calang Sea Port
Panga
Land Area : 38 Ha Location : Panga Sub District Land Status : Private Ownership
102 } Aceh Investment Coordinating Board
establishment of patchouli processing industry. The centre of patchouli planted areas in Aceh Jaya is Panga (65 ha), Jaya (24 ha), Indra Jaya (20 ha), Sampoiniet (35 ha), Darul Hikmah (45 ha), Setia Bakti (66 ha), Krueng Sabee (105 ha), Pasie Raya (and Teunom Sub Districts. There is a potential to develop another 315 ha of land in this area.
Photo: Illustration
INFRASTRUCTURE SUPPORT Cut Nyak Dhien/ Panga Air Stripe Calang River Supported by condition: Moderate
PROJECT PURPOSE
Establishing patchouli processing industries
INVESTMENT ESTIMATION
USD 1,103,333
o NPV = US$ 3,131.246 o IRR = 64.22 % o PAYBACK PERIOD: 2 YEARS
Aceh Investment Profile
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6.3.2
Nutmeg Nutmeg tree is native to Indonesia, which is the world’s largest producer, contributing about 75% of the world’s supply. This spice is popular for its health benefit as it contains antioxidant and disease-preventing phytochemicals. Its distinctive and aromatic flavor is also used for culinary. The district of South Aceh is one of the nation’s main producers of nutmeg. The cultivation of nutmeg continues to be important in the district. Today, nine of the 16 sub districts in South Aceh grow nutmeg, producing several different products including sugared candies and syrup. (source: http://www.tradeforum.org)
NUTMEG AREA AND PRODUCTION OF SMALLHOLDER BY DISTRICT/CITY District/City Simeulue
Planted Area (Ha)
Production (ton)
1,431
62
124
13
15,230
5,906
43
8
East Aceh
1
-
Aceh Tengah
3
1
West Aceh
64
13
Aceh Besar
328
45
Pidie
109
38
Bireuen
147
28
North Aceh
148
28
3,119
245
Gayo Lues
-
-
Aceh Tamiang
-
-
Nagan Raya
121
33
Aceh Jaya
173
18
Bener Meriah
12
3
Pidie Jaya
17
3
-
-
Sabang
34
7
Langsa
-
-
Lhokseumawe
-
-
Subulussalam
-
Aceh Singkil South Aceh Southeast Aceh
Southwest Aceh
Banda Aceh
2013
21,104
6,451
2012
21,031
5,790
2011
21,522
5,261
Source : Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 2014
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Photo: Illustration
Aceh Investment Profile
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6.3.3
Citronella Citronella (Cymbopogon nardus L) is a type of grass with narrow, long leaves and grows to 200 – 1000 m. It produces natural essential oil, namely citronella oil. The main components of citronella oil are citronellal and geraniol, which respectively have unique fragrance. This aromatic oil is mostly used in soaps, cosmetics, perfume, flavoring and pharmacy industries (http://thakshana.nsf.ac.lk/ slstic/NA-238/NA_238.pdf). Gayo Lues Regency is one of the main producers of citronella oil in Aceh, centered in seven sub districts; Blang Jerango, Kutepanyang, Dabun Gelang, Blang Kejeren, Pantan Cuaca. Trangun and Tripa Jaya. More than 8500 ha of land are used for citronella and the overall of land production was 400 kg/ha in 2014 (insetgalus.com).
Project Purpose: Gayo Lues Citronella Processing Industry Area (Ha)
Production (ton)
Kuta Panjang
2,122
271,448
Blangjerango
3,712
477
Blangkejeren
1,950
248
Putri Betung
-
-
Dabun Gelang
2,364
302,376
Blang Pegayon
1,254
159,186
Pining
1,046
132,354
Rikit Gaib
2,069
265,611
Pantan Cuaca
1,454
185,631
Teragun
980
124,485
Tripe Jaya
262
31,218
17,213.00
1,473,034
SUB DISTRICT
TOTAL
106 } Aceh Investment Coordinating Board
Photo: Illustration
Aceh Investment Profile
{ 107
6.4 Detailed Plan of Aceh Beef Industry Development Project 6.4.1 Aceh Besar Beef Industry Development Project 6.4.2 Pidie Beef Industry Development Project 6.4.3 Bener Meriah Beef Industry Development Project 6.4.4 Aceh Tengah Beef Industry Development Project 6.4.5 Nagan Raya Beef Industry Development Project
108 } Aceh Investment Coordinating Board
The area suitable for livestock grazing in Aceh is 1,5 ha. This very large area is suitable for grazing, integrated with crops and plantations. The project involves both breeding and fattening. The main activities in this project are building irrigation and buying hay equipment, construction of infrastructure, construction of animal feedlots, breeding and fattening cattle. Strategy for Aceh beef Development project includes: develop a nucleusplasma structure for the developing a beef herd in Aceh, establish system for management of mature breeding cows (grazing or feedlot), establish a beef finishing unit (feedlot) in each district with halal beef processing and meat distribution. Targeted for initial development: Aceh Besar, Pidie, Bener Meriah, Central Aceh and Nagan Raya Regency.
Aceh Investment Profile
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6.4.1
Aceh Besar Beef Industry Developement Project
ACEH BESAR
Krueng Aceh Kuta Malaka Blang Ubo-ubo
ACEH BESAR
Cot Sirebee
INFRASTRUCTURE SUPPORT Sultan Iskandar Muda Air Port
Malahayati
SUITABLE FOR: ¤¤ Kuta Malaka - Major Feedlot for Nucleus Herd ¤¤ Krueng Aceh- Traditional Fattening ¤¤ Cot Sirebee, Jantho- Bull Depot ¤¤ Blang Ubo-Ubo- Large Scale Breeding for Nucleus Herd
110 } Aceh Investment Coordinating Board
River/Spring
Supported
Land Area Location
: 6,434 Ha : Krueng Aceh Kuta Malaka Blang Ubo-ubo
Land Status
: Goverment Land
by condition: Asphalt
SCHEME ¤¤ Nucleus : 605 Ha ¤¤ Plasma : 5,829 Ha
Photo: Tradisional Fattening in Krueng Aceh, Aceh Besar
INVESTMENT ESTIMATE
USD 33,147,500 ¤¤ ¤¤
Breeding Fattening
: 5,500 cows : 15,000 cows
¤¤ ¤¤
ROI : 29.64 % B/C : 1.23
PAYBACK PERIOD : 3 YEARS AND 5 MONTHS
Aceh Investment Profile
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6.4.2
Pidie Beef Industry Development Project
PIDIE Biheu Village
PIDIE
INFRASTRUCTURE SUPPORT Sultan Iskandar Muda Air Port
SUITABLE FOR: 造造 Breeding
Malahayati
River/Spring
Land Area Location
: 500 Ha : Biheu Village, Muara Tiga District
Land Status
: Private Land
112 } Aceh Investment Coordinating Board
Supported
by condition: Asphalt
SCHEME 造造 Plasma System
Photo: Breeding Farm, Pidie
INVESTMENT ESTIMATE
USD 21,325,600 ¤¤ ¤¤
Breeding : 3,080 cows Fattening : 10,000 cows
¤¤ ¤¤
ROI : 32 % B/C : 1.23
PAYBACK PERIOD : 3 YEARS AND 5 MONTHS
Aceh Investment Profile
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6.4.3
Bener Meriah Beef Industry Development Project
BENER MERIAH
BENER MERIAH Perumpakan Benjadi
INFRASTRUCTURE SUPPORT Rembele & Malikussaleh
Krueng Gekuh
SUITABLE FOR: 造造 Breeding 造造 Central Feedlot
114 } Aceh Investment Coordinating Board
River/Spring
Supported
Land Area Location
: 4,155 Ha : Perumpakan Benjadi
Land Status
: Goverment Land
by condition: Asphalt
Photo: Breeding Farm, Bener Meriah
INVESTMENT ESTIMATE
USD 21,628,500 ¤¤ ¤¤
Breeding : 3,080 cows Fattening : 10,000 cows
¤¤ ¤¤
ROI : 32 % B/C : 1.23
PAYBACK PERIOD : 3 YEARS AND 2 MONTHS
Aceh Investment Profile
{ 115
6.4.4
Aceh Tengah Beef Industry Development Project
Karang Ampar
Jagong Jeget
ACEH TENGAH
ACEH TENGAH
INFRASTRUCTURE SUPPORT Rembele & Malikussaleh
Krueng Gekuh
SCHEME ¤¤ Nucleus : 780 Ha ¤¤ Plasma : 1,500 Ha
116 } Aceh Investment Coordinating Board
SUITABLE FOR: River/Spring Supported ¤¤ Fattening
Land Area Location Land Status
: 2,280 Ha : Jagong Jeget Karang Ampar : Private and Goverment Lands
by condition: Asphalt
Photo: Breeding Farm, Aceh Tengah
INVESTMENT ESTIMATION
USD 21,628,500 ¤¤ ¤¤
Breeding : 3,080 cows Fattening : 10,000 cows
¤¤ ¤¤
ROI : 32 % B/C : 1.23
PAYBACK PERIOD : 3 YEARS AND 2 MONTHS
Aceh Investment Profile
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6.4.5
Nagan Raya Beef Industry Development Project
NAGAN RAYA
NAGAN RAYA Blang Baroe Rambong
INFRASTRUCTURE SUPPORT Cut Nyak Dhien
SUITABLE FOR: ¤¤ Research Station ¤¤ Feedlot ¤¤ Breeding
PT. MDB Suak Patong & Kuala Tripa
River
Land Area Location
: 5,000 Ha : Blang Baroe Rambong
Land Status
: Aneuk Nanggroe Cooperatives
118 } Aceh Investment Coordinating Board
Supported
by condition: Asphalt
SCHEME ¤¤ Nucleus dan Plasma System
INVESTMENT ESTIMATION
USD 21,628,500 ¤¤ ¤¤
Breeding : 3,080 cows Fattening : 10,000 cows
¤¤ ¤¤
ROI : 32 % B/C : 1.23
PAYBACK PERIOD : 3 YEARS AND 2 MONTHS
Aceh Investment Profile
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6.5 Detailed Plans for Fisheries 6.5.1 Lampulo International Fishing Port 6.5.2 Idi Fishing Port in East Aceh 6.5.3 Sawang Ba’U Fishing Port in South Aceh 6.5.4 Peudada Fishing Port in Bireuen 6.5.5 Simeulue Aquaculture Project 6.5.6 Simeulue Fishing Port 6.5.7 Simeulue Seaweed Aquaculture Project 120 } Aceh Investment Coordinating Board
Aceh Investment Profile
{ 121
6.5.1
Lampulo International Fishing Port Lampulo International Fishing Port is strategically located facing the fishing grounds of Malacca Strait, has an area of 50 Ha and is classified as a Type A (Ocean Fisheries Port). The development of this area emphasizes improving of the fishery community welfare. The area is designed to have integrated fishery activities such as quality control, marketing services and industrial processing area.
70,771 Of fishermen in Aceh (2013) produced
148,765
tons of fish from fisheries in Aceh (2014)
Photo: Lampulo Fishing Port
122 } Aceh Investment Coordinating Board
PROJECT PURPOSE
Establishing fishery industries (catching, culturing, processing, preserving, storing, transporting, marketing or selling fish or maritime products).
INVESTMENT ESTIMATE
USD 200 MILLION
The Aceh Government invites investors to open businesses in Lampulo Port in the following sectors: 1. Fishing vessels with capacity 60 GT for long line fishing to operate in ZEE area of Aceh, with local labor 70% and foreign labor 30%. 2. Block ice factory capacity 6-80 ton/day 3. Frozen fish 4. Fish Canning factory 5. Fish processing factory (nuggets, sausages, and others). 6. Seaweed processing factory 7. Modern iodine-salt factory 8. Docking 9. Fiber industry
Aceh Investment Profile
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6.5.2
Idi Fishing Port To support the development of a minapolitan (fishery city), the Aceh Timur government focuses on increasing the production of aquaculture and wild fishery. The products are primarily sold in domestic and international market. The production of wild fish catches from Idi Port is around 21,473.51 tons/annum and production from aquaculture is 10,485 tons/annum, including tilapia, catfish, milkfish, black tiger shrimp, white shrimp, fire shrimp and crabs.
Operational area of Idi fishing port is around 62,5 ha, supported by the facilities & infrastructure as follows: Facilities & Infrastructures Jetty
Capacity 1,600 M2
Break water
800 M3
Port pool
300 Ha
West-side discharge and load jetty
160 M2
East-side fish market
600 M2
West-side fish market
800 M2
Fish packing building
150 M2
Port management office
452 M2
Generator set housing
48 M2
Water tower
1 Unit
Port office
1 unit
West-side warehouse
8 unit
Warehouse forklift
1 unit
Workshop
1 unit
Culinary stall
22 unit
West-side mushalla (prayer room)
1 unit
Mess facilities
9 unit
Port car park
1 unit
Fuel station for fishing boats
2 unit
124 } Aceh Investment Coordinating Board
In response to the increase of production from both wild fish catches and aquaculture in Idi Port, the following are potential investments: 1. Block ice factory 2.000 - 2.000 blocks/day 2. Fish Canning factory 3. Promotion & research center for fisheries 4. Docking facilities 5. Central fish marketing and distribution centre
Photo: Kuala Idi Fishing Port
EAST ACEH Idi Fishing Port
EAST ACEH
Aceh Investment Profile
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6.5.3
Sawang Ba’U Fishing Port in South Aceh Sawang Ba’u Fishing Port is located in Sawang Ba’u Village. It is the fish production center for South Aceh, with a total of 1.604 fishermen and 132 fishing boats. There are 60 boats 10 GT, and 78 non-motorized boats. The fishing gear used is purse saine and the main catches are skip jack and tuna. The facilities in Sawang Ba’u port are as follows:
FACILITIES Port Area
CAPACITY 1.5 ha
Quay
-
Jetty
-
Breakwater
400 m
Pool Port
1.2 ha
Revetment
150 m
Groin Fish market (TPI)
6x6m
Photo: Sawang Ba’u Fishing Port
The following have potential for investment to develop Sawang Ba’u Fishing Port: 1. Block ice factory capacity 10 ton/day 2. Fuel station for fishing boats 3. Cold storage 4. Docking facilities
The fish potential in Sawang Ba’u is very promising; the local government is expected to provide necessary facilities, to encorage the private sector to invest in a fish processing factory there.
Photo: Sawang Ba’u Fishing Port
126 } Aceh Investment Coordinating Board
Photo: Sawang Ba’u Fishing Port
SOUTH ACEH
Aceh Investment Profile
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6.5.4
Peudada Fishing Port in Bireuen Bireuen District which located on the coast at the Malacca Strait is a strategic location for fisheries development. Besides abundant resources for aquaculture and wild fish catches, Bireuen district has the potentials for maritime development with a coastline 15 ±68 km long and a sea area around 1.511 km3. The potential for fisheries is about 34.600 ton/year, whilst the present exploitation is only ±18.000 ton/year or only about 47%. Maximum Sustainable Yield (MSY) used is around 25.600 ton/year. Peudada Fish Landing Port (PPI) is the centre for fisheries development in Bireuen District. Geographically, it is located at 5.204078 North Latitude and 96.583872 East Longitude. The investment potentials for the development of national Peudada Fish Landing Port (PPI) and Outer Ring Fishing Port Development (ORFoD) are as follows: »» »» »» »» »» »» »»
Fish Processing/Fish Canning Factory. Logistic supplies for Tuna Long-Line fishing boats Docking Facilities. Fuel station for fishermen. Cold Storage Facilities. Block Ice Factory. Warehouse for fish.
Location: Gampong Pulo, Peudada Sub District
INFRASTRUCTURE SUPPORT Rembele & Malikussaleh Krueng Gekuh
Land Status: Government Land River/Spring Supported Condition: Asphalt
128 } Aceh Investment Coordinating Board
Photo: Peudada Fishing Port Blue Print
BIREUEN Peudada Fishing Port
Aceh Investment Profile
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6.5.5
Simeulue Aquaculture Project
GROUPER, SNAPPER AND LOBSTER Teluk Dalam and Sefelak Island are the focus areas for sustainable aquaculture development on Simeulue Island. The highest potential fish species for cultivation/growing on are grouper, snapper and lobster. The fish hatchery (Balai Benih Pantai Simeuleu) can supply seedling fish particularly grouper casino, barramundi and clownfish. As for lobsters, most are taken from the sea. Most fish production has been sold to Medan, North Sumatera via Susi Air, which then exported to Malaysia, Singapore, and other countries with net sales of lobster at USD 41.67/kg. In 2014, around 70 tons of fresh lobster was exported via Belawan Port, North Sumatera and 300 ton/year of grown-on grouper was exported to Hong Kong.
130 } Aceh Investment Coordinating Board
PROJECT PURPOSE Establishment 6,000 units of six holes high-density polyethylene (HDPE) floating fish cage
INVESTMENT ESTIMATE
USD 80,000,000
SIMEULUE
Photo: Simeulue Lobster
Aceh Investment Profile
{ 131
6.5.6
Simeulue Fishing Port Apart from the huge fish catching area, in the Indian Ocean, Simeulue District also has high potential for marine culture, with about 58,000 ha of suitable sea areas including two large bays, Teluk Dalam and Sibigo Bay. The most common fish species found in Simeulue District are skip jack, mackerel, yellow fin tuna, tiger grouper, sunu grouper, lobster, crab, teripang, and seaweeds.
FACILITIES & INFRASTRUCTURES AT SINABANG BAY, FISH LANDING PORT (PPI) »» Wholesale market »» Jetty for ship to 80 GT »» Docking for ship repairs and other docking facilities for ship to 80 GT equiped with marine repairing small ship repair workshops. »» Cold storage (capacity 80 tons) »» State Electricity Company (PLN) 165 kW & backup generator capacity 186 kW »» Fresh water facilities »» Block Ice factory POTENTIAL INVESTMENT: 1. Block ice factory 2. Fish processing industries
132 } Aceh Investment Coordinating Board
Photo: Illustration
SIMEULUE
Photo: Simeulue Lobster
Aceh Investment Profile
{ 133
6.5.7
Simeulue Seaweed Culture Project
Indonesia has a vision to be the biggest seaweed producer in 2015. The target is to produced 10 million tons of seaweed in the next ten years. According to Seaweed Commission of Indonesia, there are several key stregthent to develop seaweed in Indonesia as follow; »» The large coastline of Indonesia is very feasible for seaweed culture; »» Easy to develop in a short time (45 days); »» Labor intensive, high market demand; »» High value-added as it is raw material for food industry, pharmacy, cosmetics and others. Indonesian seaweed has contributed to around 500 end products around the world. (http:// mitrabisnissyariah.blogspot.com/2012/05/melirikpotensi-rumput-laut-aceh-budi.html)
Simeulue has been identified as a potential area for seaweed culture and processing. The investment opportunity is to develop seaweed culture system and post harvest management to produce high quality seaweed as raw material for industrial purpose.
134 } Aceh Investment Coordinating Board
PROJECT PURPOSE To develop seaweed culture in Simeulue INVESTMENT ESTIMATE
USD 3,073,083 R/C: 3.5 BEP: 3,411
Photo: Illustration
Aceh Investment Profile
{ 135
Photo: Krueng Geukuh Sea Port
7 Detailed Plans for Infrastructure and Energy
7.1 Detailed Plans for Insfrastructure (Railways & Seaports) 7.1.1 Banda Aceh Urban Railway 7.1.1 Krueng Geukueh Seaport Project 7.1.2 Kuala Langsa Seaport Project
138 } Aceh Investment Coordinating Board
Photo: Malahayati Sea Port
Aceh Investment Profile
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7.1.1
Banda Aceh Urban Railway Aceh railway construction started in 1874 from Ulee Lheue and finished in 1917 at Pangkalan Susu (now in North Sumatera). The Aceh Railway was originally built for the benefit of the mobilization of military equipment with a track width of 750 mm and a length of 486 km. The construction costs reached 23 million Guiden. In 1974, the Aceh Railway stopped operating because of the high competition with other land transport and lack of spare parts. Post tsunami disaster in Aceh, the French Government granted Pre-Feasibility Study for Aceh railway conducted by SNCF (Société Nationale des Chemins de fer Français) in 2015. The result of the Pre-FS study includes application of normal gauge (1435 mm) for intercity tracks, development of Banda Aceh urban railway lines and development of commuter line Lhokseumawe - Bireun. According to Aceh Regional and Spatial Planning Article 18, railway development is to be focused on revitalization of the eastern coast and northern coastal railway line and on an urban railway for Banda Aceh. The growth of population in Aceh has been increasing significantly and reached 5,437,120 in 2014, including Banda Aceh as the capital of Aceh Province and the central of governmental as well as economics and education activities. Therefore, it leads to the increasing numbers of passengers and goods from Medan and districts/cities in Aceh to Banda Aceh. In response to this, it is very necessary to initiate the development of Banda Aceh urban railway as a way to provide better service to people. 140 } Aceh Investment Coordinating Board
PROPOSED RAIL ROUTE >
POTENTIAL SECTORS FOR INVESTMENT: 1. Study of Banda Aceh Urban Railway Development »» Feasibility Study (FS) »» Detailed Engineering Design (DED) »» Environmental Impact Assessment (EIA) 2. Provision of Technical Assistance for Railway Development in Aceh Province 3. Human Resources Development for Railway Construction, Operation and Maintenance »» Short courses »» Internship »» Bachelor/Master degrees
Banda Aceh Locomotive Monument
Aceh Investment Profile
{ 141
7.1.2
Krueng Geukueh Seaport Project
Krueng Geukueh Port is managed by PT Pelabuhan Indonesia I (Persero) and located at Tambon Baroh in Dewantara Sub District, North Aceh. Geographically, the port is at 05° 100 North Latitude and 97. 02.00 East Longitude. The Working Area of this Regional Port (DLKR) is ¹ 38 ha of land and around 10.941 Ha of water. The Region of Interest at this Ports Environment (DLKP) covers about 9.035 ha of water. Krueng Geukueh Port has the total water area approximately 900,000 m2 with a depth of 10 m. LWS. It has potential to serve large ships that enter the port PT. Arun LNG, PT. ASEAN Fertilizer, PT. Pupuk Iskandar Muda and PT. KKA. Commodities that have been exported through this port since 1994 include LNG, condensate, fertilizer, ammonia, paper and betel nuts. The major exports were oil and gas (LNG) exported by PT Arun.
142 } Aceh Investment Coordinating Board
Aceh Investment Profile
{ 143
7.1.3
Kuala Langsa Seaport Project
Kuala Langsa Port is a key for economic development in the eastern regions of Aceh (Langsa City, Aceh Tamiang District and East Aceh District, along with the central region of Aceh, Gayo Lues). As the gateway for exports and imports for the surrounding area, the Kuala Langsa port could cooperate with the much larger port, Belawan Port in North Sumatra, to be an alternative port for when Belawan Port is overloaded. The hinterland that support the Kuala Langsa covers an area of 14,805.24 km2, and is very rich with natural resources such as fisheries, plantations and farming (sea food, palm oil, rubber, cacao, areca, essential oils and coffee) plus energy & minerals (petroleum, natural gas, coal, lead, limestone and marble). Export of crops from the east of Aceh via Belawan Port in North Sumatera requires extra transport costs. To reduce these extra costs, it will be better to optimaze use of Kuala Langsa Port. Furthermore, the government has provided 225 ha of land around the port which is feasible as a centre for processing industries for major commodities such as Crude Palm Oil (CPO).
FACILITIES
UNIT
BERTH Public Berth
3000 M2
Liquid Bulk Terminal
150 M
ROAD Port Road
600 M
OPEN STORAGE Open Storage A
6000 M2
Open Storage B
4000 M2
OFFICE BUILDING Port Building
200 M2
Pos Komite Pemantau Penyelenggara Pemerintahan
40 M2
WAREHOUSE Warehouse 01
500 M2
Warehouse 02
300 M2
EQUIPMENT Forklift (Patria)
2 Unit
TYPE OF SERVICE
REMARK
Pilot Boat
Available
Tug Boat
Not Available
Freshwater
Available
Traffic Loading and Unloading
12-15 Ton/Hour
TKBM
Available
Port Operator
PT. Pelabuhan Indonesia I (Persero)
Public Service
144 } Aceh Investment Coordinating Board
EMKL
2
Freight Forwarder
2
Port State Control (PSC)
4
Photo: Illustration
EXISTING COMPANY - Langsa: Kenangan Passanger Ferry - PT. Pelayaran Alkan Abadi
PROJECT PURPOSE
Establishing Ro-Ro Freight Ferry Shipping
Frequent Route of PT. Pelayaran Alkan Abadi Loading Port
Destination Port
Ship Name
Tg. Priok, Jakarta
Malahayati, Aceh
Hirondex V.9
Malahayati, Aceh
Tg. Priok, Jakarta
Hirondex V.10
INVESTMENT ESTIMATE
USD 1,025,960 Aceh Investment Profile
{ 145
7.2 Detailed Plans for Energy
7.2.1 Electricity Supply In Aceh 7.2.2 Geothermal Project 7.2.3 Hydro Power Projects
146 } Aceh Investment Coordinating Board
Aceh Investment Profile
{ 147
7.2.1
Electricity Supply System In Aceh Supply Conditions
Isolated 20 kV 106 MW (28%)
Supply
Rp 2.988/kWh Customers
Grid 150 KV 269 MW (72%)
Prod. Cost
1.127.469 Average Selling Price in Aceh Rp 732/kWh
Tariffs
Electricity subsidy
Indonesia (2013) : Prod. Cost = Rp 1.347 / kWh | Av. Selling price = Rp 818 / kWh
CUSTOMER GROWTH
646 546
361
2013
391
2014
427
2015
148 } Aceh Investment Coordinating Board
463
2016
593
503
2017
2018
2019
2020
GEOTHERMAL 589.42 MWe
POTENTIAL ENERGY IN ACEH
Sabang/Jaboi 74,14 MWe SeulawahAgam 250,00 MWe Gayo Lesten 15,28 MWe
HYDROPOWER 1,482.50 MW Meureudu (RES) 17,0 m3/sec: 62,60 MW Teunom (RES) 41,6 m3/sec: 41,10 MW Jambo Aye (RES) 72.12 m3/sec: 192,00 MW Peusangan (RES) 13.57 m3/sec: 88,90 MW Remasan (RES) 10,30 m3/sec: 101,80 MW Peureulak (RES) 38,80 m3/sec: 20,80 MW Tampur-Tamiang (RES) 99,35 m3/sec: 427,00 MW Bidin (RES) 31,30 m3/sec: 98,60 MW Tawar/Bidin (RES) 7,40 m3/sec: 73,30 MW Tawar/Jambo Aye (RES) 3,20 m3/sec: 41,90 MW PantanDedalu (ROR) 3,20 m3/sec: 7,90 MW Lawe Alas (RES) 50,00 m3/sec: 268,10 MW Lawe Mamas (ROR) 10,80 m3/sec: 65,80 MW
COAL RESERVES Meureubo & Kaway XVI District Estimation: 571 Million Ton (‚ 3,500 Calorie) Reserves available: 1.82 Billion Ton
PEAK LOAD TREND ESTIMATES (MW)
1,127,469 1,196,438
2013
2014
2015
1,412,113
1,345,792
1,276,674
2016
2017
2018
2019
2020
Aceh Investment Profile
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Transmission Line Development Planning up to 2020 Ulee Kareng – Krueng Raya 2017 Jantho – Icomer 2014 PLTP Seulawah- Incomer 2021
Banda Aceh – Ulee Kareng 2017 Banda Aceh Lampisang 2019
Samalanga – Incomer 2017 Bireuen – Takengon 2016
Krueng Raya
Cot Trueng – Incomer 2015 Panton Labu – Incomer 2014
Sigli
Banda Aceh Lampisang
Bireuen Samalanga
Jantho
P Seulawah
Cot Trueng Lhokseumawe Panton Labu Idie Rayeuk
Lampisang – Calang 2019
PLTA Peusangan 2 – Takengon 2016
Calang
A
Calang – Meulaboh 2018 Sigli – Steam Powerplant 2012
Krueng Cut
PLTA Peusangan 1 – Peusangan 2 - 2016
Meulaboh
Meulaboh – Steam Power plant 2015
Langsa
Takengon
A
Nagan Raya Steam Powerplant
Blang Kejeren Blangpidie
Steam Powerplant – Blang Pidie 2015 Takengon – Blang Keujeuren 2017
Kuta Cane
Blang Pidie – Tapak Tuan 2017 Tapaktuan
Kutacane – Blang Keujeuren – 2018 Tapak Tuan – Subulussalam 2018 Subulussalam
Subulussalam – Singkil 2018 Existing 150 KV Planning 150 KV Planning 275 KV
Planning
P
Geothermal
Planning 275 KV
A
Hydropower
Existing
150 } Aceh Investment Coordinating Board
Singkil
Sidikalang – Subulussalam 2015
IPP in Progress Until 2014
Excess Power Mini Hydro (PLTMH) Kr. Kala Capacity : 0,045 MW Status: Operate
Excess Power Steam power plant (PLTU) EAS Capacity : 10 MW Status: Operate IPP Hydro Power Plant (PLTM) Kr. Isep Capacity : 10 MW Status: Construct COD : 2016
Excess Power Steam power plant (PLTU) PT. LCI/SAI Capacity : 5 MW Status: Approaching has been started since 2011, MoU up to 16 Nov 2014 Contract Agreement Process Excess Power Steam power (PLTU) Sinergi BUMN Capacity : 24 MW Status: Operate 10 MW in May 2014, Full operation in November 2014 Excess Power Mini hydro (PLTMH) Marpunge Capacity: 0,4 MW Status: Operate in April 2014 Excess Power PLTMH Wih Selah Capacity: 0,15 MW Status: Operate Excess Power Mini hydro (PLTMH) Rerebe Capacity : 0,175 MW Status: Operate
IPP PLTM Cuko II Capacity: 5,4 MW COD (Estimate): 2018 IPP PLTP Jaboi Capacity: 10-50 MW COD (Estimate): 2017
IPP PLTM Cuko I Capacity: 4,6 MW COD (Estimate): 2018 IPP PLTBiomas Capacity: 9,8 MW Status: PPA 4 Sept. 2013 COD (Estimate): 2016
IPP PLTMH Teunom Capacity: 10 MW COD (Estimate): 2007
IPP PLTGBS Alur Manis Capacity: 3,3 MW COD (Estimate): 2017
IPP PLTM Ketol Capacity: 9.9 MW COD (Estimate): 2019
IPP PLTM Lawe Mamas Capacity: 9,6 MW COD (Estimate): 2017
IPP PLTM Kerpap Capacity: 2.2 MW COD (Estimate): 2017
IPP PLTM Lawe Sikap Capacity: 6.9 MW COD (Estimate): 2017
IPP PLTM Bidin II Capacity: 3.1 MW COD (Estimate): 2018
IPP PLTM Lawe Gurah Capacity: 4.5 MW COD (Estimate): 2017
IPP PLTM Bidin I Capacity: 6.6 MW COD (Estimate): 2018 IPP PLTM Subulussalam Capacity: 9 MW COD (Estimate): 2018 Aceh Investment Profile
{ 151
Power Plant Development up to 2020 PLTGU Kr. Raya (2 x 50 MW)
PLTP Jaboi (10 MW) 2018-2019 PLTP Seulawah (55 MW) 2016 P
PLTM Teunom (2 x 5 MW) 2016
G
PLTA Teunom 1,2,3 (24 MW-2023) (288,2 MW – 2026) (102 MW – 2024)
A A
PLTA Woyla 2 (274MW) 2024
A
A A
PLTA Woyla 3 (43 MW) & Woyla 4 (9 MW) 2016
A A A U
PLTM Ketol (2 x 5 MW) 2018
PLTGKKA (18 MW) 2014 & Arun (80 MW) 2015
PLTA Peusangan 4 (2 x 42) 2018
A A
PLTG Arun (184 MW) 2015
PLTM Ilthabi (6.6 MW) PLTA Jambo Aye (160 MW)
PLTG Sumbagut 1 (250 MW) 2016
PLTM Lumut (10 MW) 2016 PLTM Kerpap (1,5 MW) 2015
G G
PLTA Ramasan 1 (171.6 MW) 2024
A
PLTA Tampur (428 MW) 2025
A
PLTBimass Tjg Semantoh (10 MW) 2015
A
A
A
PLTM Lawe Mamas (9,6 MW) 2017 Gedung Biara (1 MW) & PLTGBS Alur Manis (3 MW) 2016
A
A
PLTA Meulaboh 5 (43 MW) 2019 PLTA Meureubo 1 & 2 (82,1 MW) (2 x 30 MW) 2017
A
PLTA Seunagan 3 (31 MW) 2021
A
PLTM Lawe Sikap (6,99 MW) & PLMT Lawe Gurah (4,5 MW) 2017
A
A
PLTA Jambo Papeuen (95.2 MW) 2019
A
PLTU Meulaboh (2 x 110 MW) 2013 (1 x 200 MW) 2016 (1 x 200 MW) 2016
A
PLTA Sibubung (121.1 MW) 2021
PLTM Kr. Isep (2 x 5 MW) 2016
PLTA Kluet (141 MW) 2019
PLTA Tripa 3 & 4 (172,6 MW) (306,4 MW) 2024
PLTM Kombih (17.8 MW) 2016
PLTA Peusangan 1 & 2 (2 x 22.1 MW) (2 x 21,1 MW) 2016
ENERGY MIX IN 2014-2023 2014
152 } Aceh Investment Coordinating Board
2017
Demand & Supply Condition 150 kV Sumut-Aceh Power System Peak Load: 269 MW (71.6%) IPP: (179 MW) Self Generation (48 MW) SABANG Peak Load: 4.7 MW IPP: 4 MW Self Generation = 1.9 MW
TAKENGON Peak Load: 15.5 MW IPP: 9 MW Self Generation = 8.5 MW
CALANG PeakLoad: 4.85 MW IPP: 5 MW Self Generation = 1.8 MW
BLANGKEUJEUREN Peak Load: 3.4 MW IPP: 3 MW Self Generation = 4.3 MW
MEULABOH Peak Load: 31.6 MW IPP: 24 MW Self Generation = 18.6 MW
KUTACANE Peak Load: 10.4 MW IPP: 8 MW Self Generation = 5.6 MW
BLANGPIDIE Peak Load: 10.6 MW IPP: 4 MW Self Generation = 10.9 MW
SUBULUSSALAM Peak Load: 10.9 MW IPP: 10 MW Self Generation = 3.1 MW
TAPAKTUAN Peak Load: 4.5 MW IPP: 2 MW Self Generation = 3.7 MW KUTA FAJAR Peak Load: 4.5 MW IPP: 4 MW Self Generation = 1.4 MW SINABANG Peak Load: 4.2 MW IPP: 5 MW Self Generation = 4.1 MW
2020
Substation TL 150 kV
2023
Aceh Investment Profile
{ 153
7.2.2
Geothermal Projects The demand for global energy is expected to increase approximately around 50 percent by 2030. Fossil fuel as the main resource will last eventually for several decades and the change of market dynamics and the increase of energy cost have accelerated the development of renewable energy, which then enhances its status as one of the core energy. Geothermal and Power Operation (2008), Chevron, Jakarta. According to Energy and Mineral Resource Department, the potential of geothermal in Indonesia is proximately 27,000 megawatt, while Aceh has arround 1,115 megawatt. Geothermal potentials in Aceh spread in eight districts/cities with total 17 spots. Five spots of geothermal have been managed in various stages: pre survey, evaluation for survey request, designated working area, establishment of joint venture, and exploration. The central government has assigned the National Power Company (PLN) to build 5,000 Mw of energy in Aceh to fulfill the projected national demand of 35,000 Mw. Hance the potential for investment in energy sector is widely open.
INVESTMENT FEASIBILITY The Power for the district of Bener Meriah is supplied from the 150 KV transmission systems from North Sumatera interconnection system from North Sumatera. The power supply is only able to serve 207 villages (89,22%) of the total 232 villages. A total of 25 villages have not been served yet.
154 } Aceh Investment Coordinating Board
INVESTMENT ESTIMATE
USD 288,080,00
Photo: Illustration
GEOTHERMAL POWER PLANT PROJECT 2013-2026 Energy Potential (Mwe) N o
Objects
Regency/City
Coordinate
Resource (Mwe) Spec
Reserve (Mwe)
Hipo
Remark
Expec
1
Iboih
Sabang
LU 04°37' ; BT 96°45'
25
-
-
2
Lho Pria Laot
Sabang
LU 03°47' ; BT 97°41'
50
-
-
3
Jaboi Keuneukai
Sabang
LU 05°53' ; BT 95°14
-
-
4
Ie Seum-Krueng Raya
Aceh Besar
LU 05°29' ; BT 95°39'
-
63
Phase Exploration by 50 PT. Sabang Geothermal Energy Praparation to Establish Joint Venture Between 165 PT. Pertamina with Local Company
5
Seulawah Agam
Aceh Besar
LU 05°50' ; BT 95°18
-
-
6
Alur Canang
Pidie
LU 05°01' ; BT 95°55
25
-
-
7
Alue Long-Bangga
Pidie
LU 04°48' ; BT 96°48'
100
-
-
8
Tangse
Pidie
LU 04°56' ; BT 96°44'
25
-
Phase Evaluation of aplicationPreliminari - Survey PT. HitayBumi Energy by Directorat General EBTKE, KESDM
9
Rimba Raya
Bener Meriah
LU 03°28' ; BT 97°51'
100
-
-
10
Simpang Balik
Bener Meriah
LU 04°19' ; BT 97°53
100 Phase Work Area Designation PT. - JasaDaya Chevron by Directorat General EBTKE, KESDM
11
G. Geureudong
Aceh Tengah
LU 05°48' ; BT 95°19'
-
120
12
Silih Nara
Aceh Tengah
LU 04°37' ; BT 97°42'
100
-
-
13
Meranti
East Aceh
LU 05°05' ; BT 95°54'
25
-
-
14
Brawang Buaya
Aceh Tamiang
LU 05°08' ; BT 96°18'
25
-
-
15
Kafi
Gayo Luwes
25
-
Phase Evaluation of aplicationPreliminari - Survey PT. HitayBumi Energy by DirectoratJ enderal EBTKE, KESDM
16
Gunung Kembar
Gayo Luwes
LU 05°33' ; BT 95°33'
-
92
17
Dolok Perkirapan
Gayo Luwes
LU 04°42' BT 96°49'
25
-
-
625
275
215
TOTAL POTENTIALS = 1.115 Mwe
Aceh Investment Profile
{ 155
7.2.3
Hydro Power Plant The Ministry of Energy and Mineral Resources has identified Aceh province as one with renewable energy sources especially the hydropower geology, weather hydrology, and catchment areas consisting of mountains and rivers of small, medium and large scale with relatively static water levels and these have potential for hydropower.
Photo: Peusangan Hydropowerplant Project
156 } Aceh Investment Coordinating Board
The Energy and Mineral Resources Office and PT.PLN has conducted surveys and identified rivers with a potential for hydropower (PLTA) and Mini Hydro (PLTMH) spread in 9 districts which can produced around 3.89,4 MW.
INVESTMENT FEASIBILITY Establishing Irrigation for 19.50 Ha and Hydropower Plant 160 MW/580 MWH Existing Company: PT. Velcan Ilthubi Hydropower (Bener Meriah) • • PT. Aceh Hydropower (West Aceh) • PT. PLN Persero; Peusangan 1 & 2 (Aceh Tengah) • PT. Kamirzu (Gayo Lues, Aceh Tamiang, East Aceh)
NO 1
District/City North Aceh
Location
Capacity (MW)
Investment Estimation (Million USD)
Jambuaye-3
WhJambu Air
37.2
111.6
Jambuaye-5
Kr. Jambuaye
160.0
545.4
Project Name
Bidin/Jambuaye
Kr. Jambuaye
246.0
738
2
Gayo Lues
Ramasan-1
Kr. Ramasan
171.6
514.8
3
East Aceh
Peureulak
Kr. Peureulak
34.8
104.4
4
Aceh Tamiang
Tampur
W.Tampur
428.0
128.4
4
South Aceh
Jambo Papeun-2
Kr. Jambo Papeun
95.2
285.6
Kluet
Kr. Kluet
141.0
423
Sibubung 2
Kr. Sibubung
121.1
363,3
Tripa-3
Kr. Tripa
172.6
517.8
Ptripa-4
Kr. Tripa
306.4
919.2
Meureubo-1
Kr. Meulaboh
821.1
246.3
5 6
7
Nagan Raya West Aceh
Aceh Tengah
Meureubo-2
Kr. Meureubo
60.0
NA
Woyla-2
Kr. Woyla
274.0
822
Woyla-3
Kr. Woyla
43.0
NA
Woyla-4
Kr. Woyla
9.0
NA
Pameu
Kr. Pameu
160.6
481.8
Peusangan-1
Kr. Peusangan
44.2
270
Peusangan-2
Kr. Peusangan
42.2
NA
Peusangan-4
Kr. Peusangan
84.0
NA
8
Southeast Aceh
Dolok-1
Kr. Dolok
32.2
96.6
9
Aceh Jaya
Teunom-1
Kr. Teunom
24.0
864.6
Teunom-2
Kr. Teunom
288.2
NA
Teunom-3
Kr. Teunom
102.0
NA
3,898.4
7,069.50
Total
Aceh Investment Profile
{ 157
Jambo Aye Multi Purpose Reservoir Project Irrigation 19,50 Ha, Hydropower Plant 160 Mw/580 Mwh
Photo: Jambo Aye Reservoir
158 } Aceh Investment Coordinating Board
JAMBO AYE RESERVOIR A. PLAN OF RESERVOIR - Catchment Area
= 3,920 Km2
- Maximum Height of Reservoir Wall
= 90 m’
- Total Volume
= 4,170 X 106 m3
B. FUNCTION OF RESERVOIR - Irrigation Supply
= 41,200 Ha, 16 m3/second
- Flood Control (Q1000ch), El. + 85 m
= 3,850 m3/second
- Hydropower
= 160 MW / 580 MWH
- River Regulation
= 2 m3/second
C. IMPACT ON ENVIRONMENT - Area inundated
= 11,500 Ha
- Vegetation inundated
= Forest
- Residences Submerged
= 220 Households
- Land inundated
= Refer detailed list
D. TOTAL COST
= US $ 539, 28 million
- Sub Total for hydropower plant project
= US $ 344,40 million
- Cost per KW installed
= US 2,150,00/KW
No
Land Use List
Hectares (Ha)
1
Reserved Forest
220 Ha
2
Forest Concession Areas PT. Rimba Penyangga Utama
3
Forest Concession Areas PT. Tualang Raya
778 Ha
4
Concession Lands of EXXON MOBIL OIL
6,970 Ha
5
Residences (220 Housee) & Garden
800 Ha
2,495 Ha
Aceh Investment Profile
{ 159
8 Detailed Plans for Tourism Development Projects
8.1 Banda Aceh Tourism Development Project
8.1.1 Krueng Aceh River Walk 8.1.2 Ulee Lheue Beach 8.1.3 Banda Aceh Madani Education Center
162 } Aceh Investment Coordinating Board
Aceh Investment Profile
{ 163
8.1.1
Krueng Aceh River Walk
FACILITIES • Food Court • Restaurant • Playground • Jogging track • Mini Port • Amphitheater • Park INVESTMENT ESTIMATE
USD 5,000,000
164 } Aceh Investment Coordinating Board
Aceh Investment Profile
{ 165
8.1.2
Ulee Lheue Beach
FASILITIES ¤¤ ¤¤ ¤¤ ¤¤
166 } Aceh Investment Coordinating Board
Food Court Restaurant Playground Jogging Track
¤¤ ¤¤ ¤¤ ¤¤
Mini Port Amphitheater Park Fishing Spot
INVESTMENT ESTIMATE
USD 10,000,000
Aceh Investment Profile
{ 167
8.1.3
Banda Aceh Madani Education Center INFRASTRUCTURE DEVELOPMENT: 1. Islamic School 2. Male Dormitory 3. Female Dormitory 4. Administration Office 5. Convention Hall and Exhibition Hall Incentives from Banda Aceh Government: »» Facilitated Environmental Impact Analysis (AMDAL) »» Permit Arrangement »» Land Acquisition INVESTMENT ESTIMATE:
USD 250.500.000
168 } Aceh Investment Coordinating Board
Aceh Investment Profile
{ 169
8.2 Simeulue Marine Tourism Development
8.2.1 Diving Center 8.2.2 Surfing Center
170 } Aceh Investment Coordinating Board
Aceh Investment Profile
{ 171
8.2.1
Diving Center Location : Siumat Island, Ganting, Sibau, Simanaha Island and Harapan Island, Simeulue Land Status : Private and Goverment Land Road By Condition Road by Surface Water Electricity
: Good : Asphalted : Lake and Spring : Supported
Infrastructure Support Air Port : Lasikin Sea Port : Kolok Jetties : Siumat Island, Ganting, Sibau,Siamanaha Island, and Harapan Island Investment Potentials: 1. Diving/Snorkeling Equipment 2. Cottages 3. Human Resources 4. Camp 5. Monitoring (Government Sustainable Purpose)
INVESTMENT ESTIMATE:
USD 3.100.000 IRR : 18% Payback Period : 5 Years
172 } Aceh Investment Coordinating Board
SIMEULUE
Diving Spot
Aceh Investment Profile
{ 173
8.2.2
Surfing Center
Location : Harapan Island, Maudil, Matanurung, Alus-Alus and Batu Berlayar Island, Simeulue Land Status
: Privately own
Road By Condition Road by Surface Water Electricity
: Good : Asphalted : Lake and Spring : Available
Infrastructure Support Air Port : Lasikin Sea Port : Kolok Investment Required for: 1. Surfing Equipment 2. Cottages 3. Human Resources 4. Camps 5. Monitoring (Government Sustainable Purpose)
INVESTMENT ESTIMATE:
USD 2.100.000 IRR : 18% Payback Periode : 3 Years
Participants at Aceh International Surfing Championship 2013, in Simeulue
174 } Aceh Investment Coordinating Board
SIMEULUE
Surfing Spot
Aceh Investment Profile
{ 175
Photo: Iboih, sabang
9 Sabang Free Port and Free Trade Zone Project
9.1
Sabang International Water Front Land Area Location Land Status Supporting Land
: : : :
0.5 Ha Paradiso Beach Goverment Land 1 Ha Sabang Fair Area
Road Condition Road Surface Water Electicity
: : : :
Good Asphalt Lake and Spring Supported
INFRASTRUCTURE SUPPORT Airport : Maimun Saleh Seaport : Balohan (passanger port) and Sabang International Hubport
INVESTMENT ESTIMATE
USD 35,000,000 Payback : 8 Years B/C Ratio : 1.21
178 } Aceh Investment Coordinating Board
Aceh Investment Profile
{ 179
9.2
Cruise Passenger Terminal
Photo: Cruise Terminal
Land Area Location Land Status Depth CT 1 Length CT 3 Length
: : : : : :
117 Ha Sabang Bay Goverment Ownership 22 m 180 m2 x 25 m2 423 m2 x 50 m2
Road Condition Road Surface Water Electicity
: : : :
Very good Asphalt Treated Water Supply Supported
180 } Aceh Investment Coordinating Board
INFRASTRUCTURE SUPPORT Airport : Maimun Saleh Seaports : Balohan (ferry port) and Sabang International Hubport (shipping)
INVESTMENT ESTIMATION
USD 120,000,000 Payback : 8 Years B/C Ratio : 1.23
Aceh Investment Profile
{ 181
9.3
Yacht Marina & Supporting Facilities
Batchmetri Area Land Area Location Land Status
: : : :
26.5 Ha 13 Ha Lhok Wieng Goverment Land
Road by Condition Road by Surface Water Electicity
: : : :
Good Asphalt Lake and Spring Supported
INFRASTRUCTURE SUPPORT Airport : Maimun Saleh Seaport : Balohan (ferry port) and Sabang International Hubport (shipping)
Photo: International Regatta Sail, Sabang - Phuket - Langkawi
182 } Aceh Investment Coordinating Board
INVESTMENT ESTIMATE
USD 6,000,000 Payback : 5 Years B/C Ratio : 1.3
Aceh Investment Profile
{ 183
9.4
Diving Centre
Location Land Status
: Gapang and Iboih Beach : Goverment Land
Road Condition Road Surface Water Electicity
: : : :
Good Asphalt Lake and Spring Supported
INFRASTRUCTURE SUPPORT Airport : Maimun Saleh Seaport : Balohan (ferry port) and Sabang International Hubport
INVESTMENT ESTIMATE
USD 1,100,000 Payback : 4 Years B/C Ratio : 1.3
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9.5
Sea Port INVESTMENT OPPORTUNITIES ¤¤ ¤¤ ¤¤ ¤¤ ¤¤ ¤¤ ¤¤ ¤¤
Commerce, Export-Import Transhipment port Cruise line Docking yard Fuel Bunkering Service Storage Water Supply Other
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9.6
Industrial and Trading Sector BUSINESS OPPORTUNITIES ¤¤ ¤¤ ¤¤ ¤¤ ¤¤
Service of export or import Fuel Bunker, Transit & Supply Down Stream for Agro Industry (CPO, Cacao, Rubber, etc) Shipping Industry/ Ship Docking Fish Processing Industry
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9.7
Balohan Industrial Park We will offer the greatest advantages in today’s challenging manufacturing environtment. We will offer the most advanced Industrial Free Zone in Indonesia-minutes from the Container Seaport. We will offer competitive labor rates, on-site property management and 24-hours security. We will layout the Parks to best utilize the land area and provide for only High Tech Industries that create jobs beneficial to the people of Weh Island and Indonesia.
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9.8
Fishery Sector ¤¤ It is surrounded by the Indian Ocean and the Malacca Strait. ¤¤ Sabang Zone has a big potential for marine fish processing industies ¤¤ Part of Sub Regional Indonesia-MalaysiaThailand Growth Triangle (IMT-GT)/ Andaman Cluster ¤¤ Some location along the coast of Weh Island nearby Pulo Aceh Island have high potential for marine fish and seaweed culture. INCENTIVES: BPKS has the authority to provide incentives for business in the Sabang Zone: ¤¤
¤¤ ¤¤
Sabang Zone has free: »» Custom Clearance »» Custom (Export-Import) duties »» Luxury goods tax »» Value Added Tax (VAT) Free Trade and Free Port determined for 70 years. Management Board of Free Trade and Free Port Sabang (BPKS) has the authority to grant business licenses and other license, hence, the procedures are faster and easier
BUSINEESS OPPORTUNITIES ¤¤ ¤¤ ¤¤ ¤¤ ¤¤
Export Processing Zone (EPZ) Fresh Fish Export Terminal (sea and Air cargo) Marine Culture, such as sea weed, lobsters. Cold Storage Docking Yard
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10
Detailed Plans for Industrial and Trading Estates
10.1
Aceh Industrial Area Plant at Ladong
LOCATION: Ladong, Aceh Besar (about 18 km west to Banda Aceh, 30 km to Sultan Iskandar Muda Airport, and 9 km east to Malahayati Port ).
Reserved Land Area : 552.663 sqm
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CONSIST OF: • 19 lots for small scale industries (0.10 Ha – 0.30 Ha). • 23 lots for low medium scale industries (0.30 Ha – 0,50 Ha). • 10 lots for higher medium scale industries (0.50 Ha – 1 Ha).
LADONG 556.663 sqm (55 Ha)
BEEF PROCESSING FOCUSED INVESTMENT AREA
MALAHAYATI SEAPORT
COCONUT FOCUSED INVESTMENT AREAS
ACEH BESAR
PIDIE
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10.2
Lhokseumawe Industrial Area
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PRESIDENTIAL REGULATION OF THE REPUBLIC OF INDONESIA NUMBER 39 OF 2014 ON LIST OF BUSINESS FIELDS CLOSED TO INVESTMENT AND BUSINESS FIELDS OPEN, WITH CONDITIONS, TO INVESTMENT BY THE GRACE OF GOD, THE ALMIGHTY THE PRESIDENT OF THE REPUBLIC OF INDONESIA Considering: a. that in order to implement Article 12 paragraph (4) and Article 13 paragraph (1) of law Number 25 of 2007 on Investment, Presidential Regulation Number 36 of 2010 on list of Business Fields Closed to Investment and Business Fields Open, with conditions, to investment; b. that, in order to increase investment activities in Indonesia, and for the purpose of implementing Indonesia’s commitment with respect to the Association of Southeast Asian Nations/ ASEAN Economic Community (AEC), it is necessary to revise to provisions on the list of business fields closed to investment and business fields open, with conditions, to investment; c. that, concerning the matters as referred to in paragraphs a and b above, it is necessary to issue a Presidential Regulation on the List of Business Fields Open, with Conditions, to Investment; In view of :
1. Article 4 paragraph (1) of the 1945 Constitution of the Republic of Indonesia; 2. Law Number 32 of 2004 on Regional Government (State Gazette of the Republic of Indonesia of 2004 Number 125, Supplement to the State Gazette Number 4437), as amended most recently by law Number 12 of 2004 on Second Amendment to Law Number 32 of 2004 on Regional Government (State Gazette of Republic of Indonesia of 2008 Number 59, Supplement to the State Gazette of the Republic of Indonesia Number 4844); 3. Law Number 25 of 2007 on Investment (State Gazette of the Republic of Indonesia of 2007 Number 67, Supplement to the state Gazette of Republic Indonesia Number 4844) 4. Law Number 40 of 2007 on Limited Liability Companies (State Gazette of the Republic of Indonesia of 2007 Number 106, Supplement to the State Gazette of the Republic of Indonesia Number 4756); 5. Law Number 20 of 2008 on Micro, Small, and Medium Enterprises (State Gazette of Republic of Indonesia of 2008 Number 93, Supplement to the State Gazette of the Republic of Indonesia Number 4866); 6. Law Number 17 of 2012 on Cooperative Affairs (State Gazette of Republic of Indonesia of 2012 Number 212, Supplement to the State Gazette of the Republic of Indonesia Number 5355); 7. Presidential Regulation Number 17 of 2013 on Implementation of Law Number 20 of 2008 on Micro, Small, and Medium Enterprises (State Gazette of Republic of Indonesia of 2013 Number 40, Supplement to the State Gazette of the Republic of Indonesia Number 5404); 8. Presidential Regulation Number 76 of 2007 on Criteria and Conditions for Setting Up Business Fields Closed and Business Fields Open, with Conditions, to Investment; 9. Presidential Regulation Number 27 of 2009 on One Stop Services for Investment; HAS DECIDED:
To isseu A PRESIDENTIAL REGULATION ON THE LIST OF BUSINESS FILEDS CLOSED TO INVESTMENT AND BUSINESS FILEDS OPEN, WITH CONDITIONS, TO INVESTMENT;
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Article 1 (1) Closed business fields are certain business fields that are prohibited from conducting any investment activities. (2) The list of closed business fields as referred to in paragraph (1) are as set out in Appendix I of this Presidential Regulation. Article 2 (1)
(2)
Business fields open, with conditions, are certain business fields where investment activities may conducted under certain conditions, that is, licensed business reserved for Micro, Small and Medium Enterprises and Cooperatives, licensed businesses requiring establishment under a partnership, licensed businesses requiring certain capital ownership, licensed businesses requiring a certain location, and licensed businesses requiring special permits. The list of business fields open, with conditions, as referred to in paragraph (1) shall be as set out in Appendix II of this Presidential Regulation. Article 3
Business fields not curtained in Appendix I and II as referred to in Article 2 are declared open without conditions for investment. Article 4 (1) (2)
(3)
Investment in business fields open, with conditions, as referred to in Article 2 must meet conditions of location as provided herein and meet regulations applicable in the spatial and environment sectors. In the case of locations of business for an investment license as referred to in paragraph (1) it has been determined that the investor is willing to extend his business by engaging in the same business activities outside the location determined in the investment license, the investment shall meet the conditions of location as referred to in the paragraph (1). In order to meet the requirements of location as referred to in paragraph (2), investors are not obligated to establish new business entities or obtain new business licenses, except where otherwise stipulated by law. Article 6
(1)
In the event that a change occurs to the capital ownership resulting from a merger, acquisition, or amalgamation of a company engaged in the same business field, the following requirements shall apply: a. A limitation of capital ownership from foreign investment in the merging company shall be as set out in the approval letter of the company. b. A limitation of capital ownership from foreign investment in the acquiring company shall be as set out in the approval letter of the company. c. A limitation of capital ownership from foreign investment in a new company resulting from an amalgamation shall be in compliance with the provisions applied when the new company was formed that is to be amalgamated. Article 7
(1)
(2)
In the event that foreign investor expands business activity in the same business fields and the business activity expansion needs a capital Increase through issue of shares with rights issues, and domestic investors cannot participate in the capital increase, then the provisions on rights issues shall apply to the foreign investors, according to the prevailing legislation on limited liability companies. In the event that additional capital, as referred to in paragraph (1) results in total ownership of foreign capital to exceed the maximum limit set out in the approval letter, then within a period of two (2) years, the excess
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total ownership of foreign capital investment may be adjusted from the minimum limit included in the approval letter, by means of: a. The foreign investors can sell the excess of shares in good will to domestic investors; b. The foreign investor can sell the excess of shares through a general tender conducted by a company whose shares are owned by the foreign investor in a domestic capital market; or c. The company, as referred to in paragraph (2) sub-paragraph b, can purchases the excess shares owned by the foreign investor and treat the shares as treasury stocks, subject to Article 37 of Law Number 40 of 2007 on Limited Liability Companies. Article 8 Provisions of this Presidential Regulation shall not pressure the obligation of an investor to comply with terms and conditions in conducting business activities issued by: a. Ministry/Non-Ministry Governmental Institutions which are technically authorized approve to the scope of the investment; and b. Provincial and District Governments. Article 9 Provision as referred to in Articles 1 and 2 herein shall not be applicable for an investment approved in certain sectors prior to the stipulation of this Presidential Regulation as included in an Approval Letter, except if such provisions are more beneficial to the referred investment. Article 10 When this presidential Regulation comes into effect, implementing regulation of Presidential Regulation Number 36 of 2010 on the List of Business Fields Closed to Investment and Business Fields Open, with Conditions, to Investment shall remain a applicable to the extent that it is not contradictory and has not been regulated with a new implementing regulation based on these Presidential Regulations. Article 11 With the enforcement of this Presidential Regulation, Presidential Regulation Number 36 of 2010 on list of Business Fields Close to Investment and Business Fields Open, with Conditions, to Investment shall be revoked and declared as no longer applicable. Article 12 This Regulation shall come into force as of the date of issue. For the public cognizance, it is instructed to promulgate this Presidential Regulation by placing the same in the State Gazette of the Republic of Indonesia. Issued in Jakarta On April 23, 2014 PRESIDENT OF THE REPUBLIC OF INDONESIA, [signed] DR. H. SUSILO BAMBANG YUDHOYONO
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Promulgated in Jakarta On April 24,2014 MINISTER OF LAW AND HUMAN RIGHTS OF THE REPUBLIC OF INDONESIA, [Signed] AMIR SYAMSUDIN This copy conforms to the original hereof SECRETARIAT OF CABINET OF THE REPUBLIC OF INDONESIA Deputy for Economic Sector [Signed] Ratih Nurdiati
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LIST OF APPENDICES REGULATION OF THE PRESIDENT OF THE REPUBLIK OF INDONESIA NUMBER 39 OF 2014
NO.
APPEDIX
TITLE
1.
APPENDIX I
List of Business Fields Closed to Investment
2.
APPENDIX II
List of Business Fields Open, with conditions, to investment: (just for project/commodity offered in this edition of Aceh Investment Profile) : 1. Agriculture Sector 2. Maritime and Fisheries Sector 3. Energy and Minerals Resources 4. Industrial Sector 5. Tourism and Creative Economy Sector 6. Transportation and Information Sector
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APPENDIX I REGULATION OF THE PRESIDENT OF INDONESIA NUMBER : 39 of 2014 DATE : 24 April 2014 LIST OF BUSINESS FIELDS CLOSE TO INVESTMENT
No
SECTOR
KBLI
Detail of Conditions
1
Agricultural
01289
Cultivation of marijuana (cannabis sativa);
2
Forestry
01701
1.
03119
3
Industry 20111 20211
20119 20119
20119
11010 11020 11030
Capturing of fish species contained in Appendix I to Convention on International Trade in Endangered Species of wild Fauna and Flora (CITES); 2. The use (removal) of coral/atoll from nature for construction material/lime/calcium and souvenir/jewelry, also live or dead coral (recent dead coral) from nature. 1. Chemical material industry that can damage the environment: • Mercury processed chlorine alkali maker industry • Manufacture of pesticide active ingredients: dichloro diphenyl trichloride (DDT), aldrin, endrin, dieldrin, chlordane, heptachlor, mirex, and toxaphene. • Chemical material industry : polychlorinated biphenyl (PCB), hexachlorobenzene • Manufacture of ozone deplating substances (ODC), methyl chloroform, methyl bromide, trichloro fluoro methane (CFC11), dichloro trifluoro ethane (CFC-12), trichloro trifluoro ethane (CFC-113) dichloro tetra fluoro ethane (CFC-114), chloro pentafluoro ethane (CFC-115), chloro trifluoro methane (CFC13), tetrachloro difluoro ethane (CFC-112), pentachloro fluoro ethane (CFC-111), chloro heptafluoro propane (CFC-217), dichloro hexafluoro propane (CFC-216), trichloro pentafluoro propane (CFC-215), tetrachloro tetrafluoro propane (CFC214), pentachloro trifluoro propane (CFC-213), hexachloro difluoro propane (CFC-211), bromo chloro difluoro methane (halon-1211), bromo trifluoro methane (halon-1301), dibromo tetrafluoro ethane (halon-2402), R-500, R-502. 2. Chemical material industry schedule 1 chemical weapons convention as contained in Appendix I of Law Number 9 of 2008 regarding chemical materials used as chemical weapons. 3. Alcohol beverage industry: • Liquor • Wine • Malt containing beverages
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No
SECTOR
KBLI
Detail of Conditions
4
Transportation
52211
1.
52219 52221
2. 3.
52230 71203
4. 5.
Provision and operation of the terminals for land transportation passengers Provision and operation of motor vehicles weighing Telecommunication/supporting facilities for shipping navigation and vessel traffic information systems (VTIS) Provision of flight navigation services Provision of motor vehicle type tests
5
Communication and infor- 61300 mation
Management and implementation of radio frequency and orbit spectrum monitoring stations
6
Education and culture
1. Public museums 2. Historical and ancient heritage (temples, castles, epigraphie, remains, ancient buildings, etc)
7
Tourism and economy
91021 91203
creative 92000
Gambling/casinos
Notes: 1. Business fields closed to investment can be used for non-commercial purposes such as: research and development, and may obtain approval from institutions which are responsible for developing business fields. 2. In the event that the Indonesia Standard Classification of Business Field (KLBI) includes more than one business field, then provisions as referred to in Appendix I are only applicable to the business fields sated in the column of business fields.
PRESIDENT OF THE REPUBLIC OF INDONESIA, [signed] DR. H. SUSILO BAMBANG YUDHOYONO
This copy conforms to the original hereof SECRETARIAT OF CABINET OF THE REPUBLIC OF INDONESIA Deputy for Economic Sector [signed] Ratih Nurdiati
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APPENDIX II REGULATION OF THE PRESIDENT OF INDONESIA NUMBER : 39 of 2014 DATE : 24 April 2014 LIST OF BUSINESS FIELDS OPEN, WITH CONDITIONS, TO INVESTMENT I. Agriculture Sector No BUSINESS FIELDS
KBLI
Conditions/Detail of Conditions
1
Main crop plant seedling business, in an area of 01120 01111 more than 25 Ha: - Rice 01113 - Corn - Soybeans
1. Foreign Capital Ownership; maximum 49 % 2. Special license and foreign capital ownership 3. Recommendation from the Minister of Agriculture
2
Main crop plant seedling business, in an area of less 01120 01111 than 25 Ha: - Rice 01113 - Corn - Soybeans
Reserved for micro, small, medium enterprises and cooperatives
3
Plantation seedling business, in an area of 25 Ha : - Coconut plant - Palm oil plant
1. Foreign Capital Ownership; maximum 95 % 2. Special license for foreign capital ownership 3. Recommendation from the Minister of Agriculture
Plants for beverages - Coffee - Cacao Essential oil plants Rubber and other latex producing plants 4
01261 01262 01270 01284 01291
Plantation business in an area of 25 Ha or more until a certain area without a processing unit, according to the prevailing legislation : - Coconut plant 01261 - Palm oil plant 01262 Plants for beverage material - Coffee - Cacao - Essential oil plant Rubber and other latex producing plants
01270
- Special license and foreign capital ownership - Foreign capital ownership and location; maximum 95% - Recommendation from the Minister of Agriculture
01284 01291
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No BUSINESS FIELDS 5
Plantation business in an area of 25 Ha or more, integrated to the processing unit by the same or exceeding a certain capacity, according to the prevailing legislation : • • • • • • • •
6
Coconut plantations and copra, fiber, coconut charcoal, dust, nata de coco industries Coconut plantations and copra, fiber, coconut charcoal, dust, nata de coco industries Palm oil plantations and crude palm oil (CPO) industry Coffee plantations and coffee peeling, cleaning, and sorting industry Cocoa plantations and cocoa peeling, cleaning, and drying industry Essential oil crop plantations and essential oil industry Rubber plantation and sheet, thick latex industry Seed based plantations and peeling and cleaning industry for seeds other than coffee and cacao
01261 10423 01261 10421 10773 01262 10432 01270 10612 01270 10613 01284 20294 01291 22121 22122 10614
Plantation product processing industry, with the same or exceeding a certain capacity, according to the prevailing legislation: - Crude oil industry (edible oil) from vegetables and animals - Copra, fiber, coconut charcoal, dust, nata de coco industry - Coconut oil industry - Palm oil industry - Coffee peeling, cleaning, and sorting industry - Cacao peeling, cleaning, and sorting industry - Rubber to be sheet, thick latex industry
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Conditions/Detail of Conditions - Special license and foreign capital ownership - Foreign capital ownership and location; maximum 95% - Recommendation from the Minister of Agriculture
- Reserved for micro, small, medium enterprises and cooperatives
Plantation product processing business industry below certain capacity, according to the prevailing legislation : - Crude oil industry (edible oil) from vegetables and animals - Copra, fiber, coconut charcoal, dust, nata de coco industry - Coconut oil industry - Palm oil industry - Coffee peeling, cleaning, and sorting industry - Cacao peeling, cleaning, and sorting industry - Rubber to be sheet, thick latex industry
7
KBLI
01630 10411 10421 10422 10612 10613 22121
01630 10411 10421 10422 10612 10613 22121
- Special license and foreign capital ownership - Foreign capital ownership; maximum 95 % - Recommendation from the minister of agriculture
No BUSINESS FIELDS 8
Horticulture seedlings : - Seasonal fruit plant seedlings - Tropical fruit seedlings - Orange seedling - Seasonal vegetable plant seedling - Annual vegetable plant seedling
9
Horticulture cultivation : - Seasonal fruit plant cultivation - Tropical fruit tree cultivation - Orange tree cultivation - Leaf vegetable cultivation (such as: cabbage, mustard greens, leeks, celery) - Tuberous vegetable cultivation (among others: onions, garlic, potatoes, carrots) - Fruit vegetable cultivation (such as: tomatoes, cucumber) - Chili, bell pepper cultivation
KBLI 01139 01220 01230 01139 01253 01132 01220 01230 01131
Conditions/Detail of Conditions - Foreign capital ownership: maximal 30%
- Foreign capital ownership: maximal 30%
01134 01133 01283
10
Horticulture processing industry : - Post Harvest fruit and vegetable businesses
10311 10320 10313 10314 10330
- Foreign capital ownership: maximal 30%
11
Horticulture research and quality control laboratory 72102 business
- Foreign capital ownership: maximal 30%
12
Horticulture and agro tourism business
- Foreign capital ownership: maximal 30%
II. No
93231
Maritime and fishery sector BUSINESS FIELDS
KBLI
Conditions/Detail of Conditions
1
Catch fishery using fishing ship sized up to 30 GT, in 03111 marine territory up to 12 nautical miles from share.
Reserved for micro, small, medium enterprises and cooperatives
2
Fish product processing businesses conducted at 03121 fish loading port. 03122
Reserved for micro, small, medium enterprises and cooperatives
3
Fish rearing : - Marine fish - Brackish water fish - Fresh water fish
03211 03251 03221
Partnership
4
Fish hatchery : - Marine fish - Brackish water fish - Fresh water fish
03211 03251 03221
Partnership
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No
BUSINESS FIELDS
KBLI
Conditions/Detail of Conditions
5
Fisheries products processing businesses (UPI) - Fish and other water biota salting/drying 10211 industries - Fish and other water biota smoking industries 10212
Partnership
6
Fishery products processing (UPI) businesses; 10219 fermentation, reduction/chemical processes, surimi and jelly fish processing businesses.
Partnership
7
Marketing, distribution, wholesale business, and 03111 fish product export business
Special license
8
- Catch fishery using ships up to 100 GT and/or 03111 more in ZEEI catching territory - Catch fishery using fishing ships sized 100 GT 03111 and/or more in open sea catching areas - Fishery catching business using fishing ship 03111 more than 30 GT in size, in water area more than 12 nautical miles from share
- Special license - Further terms and conditions are regulated by the minister of maritime and fishery - Special license - Further terms and conditions are regulated by the minister of maritime and fishery - 100% local capital
III. Energy and mineral resource sector No
BUSINESS FIELDS
KBLI
Conditions/Detail of Conditions
1
Survey serviceses: - Geology and geophysics - Geothermal
71100 71100
- Foreign capital ownership; maximum 49% - Foreign capital ownership; maximum 95%
2
Drilling services : Geothermal
09900
- Foreign capital ownership; maximum 95%
3
Geothermal operation and maintenance services
09900
- Foreign capital ownership; maximum 90%
4
Power plant : - Power plant < 1 MW - Small-scale power plant (1-10 MW) - Power plant > 10 MW
5
- Power plant transmission
35102
- Foreign capital ownership; maximum 95% (maximum 100% for the purpose of KPS during concession period)
6
- Electricity distribution
35103
- Foreign capital ownership; maximum 95% (maximum 100% for the purpose of KPS during concession period)
7
Electricity installation consultation service
71100
- Foreign capital ownership; maximum 95%
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35101
- 100 % local capital - Foreign capital ownership; maximum 49% - Foreign capital ownership; maximum 95% (maximum 100% for the purpose of public private partnership/KPS during concession period)
No
BUSINESS FIELDS
KBLI
Conditions/Detail of Conditions
8
Construction and installation of electric power: - Installation of electric power provider - Installation of electric power utilization
42213 43211
- Foreign capital ownership; maximum 95% - 100% local capital
9
- Electric power installation operation and main- 43211 tenance
- Foreign capital ownership; maximum 95%
11
Electric power installation examination and testing 71204
- 100% local capital
IV.
Industrial Sector
No
BUSINESS FIELDS
KBLI
1
- Salting/drying fish and other water biota 10211 industry - Smoked fish industry 10214
Partnership
2
Processed food industry from seeds and roots, sago, gnetum gnemon nut : - Soybean cake (tempe) industry 10391 10392 - Soybean tofu industry - Industry of food from soybean and legumes, 10793 other than soya sauce, tempe, and tofu
Reserved for micro, small, medium enterprises and cooperatives
3
Rubber curing industry
22121
Reserved for micro, small, medium enterprises and cooperatives
4
Essential industry
20294
Partnership
4
Sugar industry (white crystal sugar, refined crystal 10721 sugar and raw crystal sugar)
- Special license and foreign capital ownership; maximum 95% - Establishment and expansion of sugar factory required to establish first own sugarcane plantation according to the prevailing legislation
5
Crumb rubber industry
100 % local capital and special license : 1. Recommendation on availability of raw materials from the ministry of agriculture 2. Not allowed to change the companyâ&#x20AC;&#x2122;s capital ownership into foreign investment (PMA)
22123
Conditions/Detail of Conditions
Partnership
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V.
Tourism and creative economy sector
No
BUSINESS FIELDS
KBLI
Conditions/Detail of Conditions
1
Restaurant
56101
- Foreign capital ownership: maximum 51% and location - Does not contradict with local regulation
2
Accommodation services : - Two star hotel
55115
- One-star hotel
55115
- Foreign capital ownership: maximum 51% and location - Does not contradict with local regulation
- Non star hotel
55120
- Home stay
55130
- Other accommodation services : motel
55199
- Foreign capital ownership: maximum 51% and location - Does not contradict with local regulation - Foreign capital ownership: maximum 51% and location - Does not contradict with local regulation - Reserved for micro, small, medium enterprises, and cooperatives - Foreign capital ownership: maximum 49% (maximal 51% if partnering with UMKMK) and location - Does not contradict with local regulation - Foreign capital ownership requirement : maximum 70% and/ or location for investor from ASEAN countries - Does not contradict with local regulation - Located in Java and Bali
3
Convention, exhibition, and incentive tour services
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82301
- Foreign capital ownership: maximum 51% and location - Does not contradict with local regulation
No
BUSINESS FIELDS
4
- Nature tourist object conservation areas
VI.
KBLI business
outside 59122
Conditions/Detail of Conditions - Foreign capital ownership: maximum 51%
Transportation Sector
No
BUSINESS FIELDS
KBLI
1
Providing port facilities (piers, buildings, container 52221 terminals, liquid bulk terminals, dry bulk terminals 52222 and Ro-Ro) 52223
Conditions/Detail of Conditions Foreign capital ownership; maximum 49% (max 95% if for the purpose of PPP during concession period)
Note : 1. In the event that the Indonesian Standard Classification of Business Fields (KBLI) includes more than one business field, then Provisions as referred to in Appendix II one only applicable to the business fields stated in the column of business fields. 2. Micro, small, and medium-scale businesses, and cooperatives (UMKMK) in this Regulation of the President shall mean individuals or companies that fulfill the criteria as referred to in Law No. 20 of 2008 regarding Micro, small, and medium-scale enterprise, and Law No. 17 0f 2008 Regarding Cooperatives. 3. In the event that a business field covered in Indonesia’s commitment to ‘ASEAN Economic Community’ is not stated in Appendix II of this Presidential Regulation but stated in other columns, then the capital originating from ASEAN may be invested based on the requirements as referred to in the column.
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Chief of Editor Iskandar Netty Muharni Editor Arif Arham Cut Eliza Mutia Ibrahim Champion Ratna Keumala Design and Layout aSOKA communications Copyrigth 2015 | Aceh Investment Coordinating Board
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