#1B BANK INDONESIA N BANK SENTRAL REPUBLIK INDONESIA ☑ North Sumatra Invest NORTH SUMATRA INVESTMENT BOOK 4th Quarter - Feb 2020 edition A definitive guide on macroeconomic condition, data & information, key contacts, and potential investment projects in North Sumatra gg#2Our Mission B North Sumatra Invest (NSI) is a dedicated task force comprised of all North Sumatra's policy makers, including the Government of North Sumatra and Bank Indonesia, with full cooperation of Kamar Dagang dan Industri Indonesia (KADIN). PROVIDING Providing Investors with the necessary data and information PROMOTING Promoting the right investment opportunities and projects ABOUT B U S Our mission is to attract Foreign Direct Investment (FDI) in North Sumatra to foster economic growth. CONNECTING Connecting investors with the right business contacts#3CONTENT Main Informations you will find KARA 1 2 Indonesia's Strong Performance Indonesia is one of the fastest growing economy in the world. Find how we perform relative to our peers. Why North Sumatra? North Sumatra isn't only a great market for your products, but also a perfect place for production base. 3 4 Investment Projects & Other Potential Guaranteed by the government, potential projects are handpicked just for you. In addition, We also specifically collect potential tourism sites and products in North Sumatra. Licensing in Indonesia A quick guide on getting business license in Indonesia. It's never been easier to do business here. REGIONAL INVESTOR RELATIONS UNIT BANK INDONESIA REPRESENTATIVE OFFICE FOR NORTH SUMATRA PROVINCE#41 Indonesia's Strong Performance Indonesia is one of the fastest growing economy in the world. Find how we perform relative to our peers.#5Solid national economic growth Indonesia has maintained economic growth momentum against a backdrop of worsening global economic moderation. Our annual economic growth eased slightly to 4.97% in the fourth quarter of 2019. Cumulatively the national economic growth was recorded at 5.02% (yoy) in 2019. 6 2 Indonesia's Strong GDP Growth | % year-on year & % quarter-to-quarter QtQ Yoy 5.12 4.94 5.05 5.17 5.18 4.93 4.92 5 4.82 4.74 4.77 5.01 4.94 5.01 5.01 5.06 5.19 5.06 5.27 5.17 5.18 5.07 5.05 5.02 4.97 4.2 3.83 4 3.74 3.27 3.31 4.01 3.14 4.01 3.19 4.21 3.09 3.06 3 0.04 0 2 Institutions 2020 Growth (% YoY) 1 2020 Budget 5.3 Bank Indonesia 5.1-5.5 -1 IMF (WEO Jan 2020) 5.1 -2 World Bank 5.1 -3 ADB 5.2 -0.16 -0.36 -0.3 -0.41 -0.52 FFFFFI -1.73 -1.81 -1.7 -1.69 -1.74 -2.07 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016 2017 2018 2019#63 Our concern to Business Business has never been easier in Indonesia. In recent years, our government has put significant effort to boost business climate and we're happy to tell you that our ease of doing business rank has improved significantly. Our efforts to trim the licensing period gave an impact to the business player. And we plan to make it even easier. There is no better time than now to invest in Indonesia. 20 40 40 60 60 80 50 100 120 140 Ease of Doing Business | Index, The Higher The Better 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 I 91 72 73 73 160 - Indonesia -India -Philippines Bulgaria Colombia#7BBB BBB- Investment Grade BB+ Below Investment Grade BB BB- Investment grade approved! Moody's S&P JCRA Fitch Fitch Ratings R&I B+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 BBB / Stable March 2019, Rating Affirmed at BBB/Stable The decision was supported by favorable GDP growth outlook on the back of resilient domestic demand and a small government debt burden compared with its peers. Indonesia's sovereign credit fundamentals should be resilient to substantial exchange rate volatility. S&P Global BBB / Stable Ratings May 2019, Rating Upgraded at BBB/Stable "We raised the ratings to reflect Indonesia's strong economic growth prospects and supportive policy dynamics, which we expect to remain following the re-election of President Joko Widodo recently." MOODY'S Baa2/ Stable Feb 2020, Rating Upgraded at Baa2/Stable "The upgrade to Baa2 is underpinned by an increasingly credible and effective policy framework conducive to macroeconomic stability. Together with a build-up of financial buffers, prudent fiscal and monetary policy strengthens Moody's confidence that the sovereign's resilience and capacity to respond to shocks has improved." R&I April 2019, Rating Affirmed at BBB/Stable BBB / Stable "Indonesia's economy is growing at a solid pace. The fiscal deficit to GDP ratio narrowed from a year earlier, and the government debt to GDP ratio remains low. While the CAD somewhat widened, foreign reserves are ample relative to short-term external debts. Its economic resilience to external shocks is maintained, supported by the government and central bank's policies emphasizing macroeconomic stability." JCR Jan 2020, Rating Affirmed at BBB+, Outlook Revised to Positive BBB+ Positive "The rating mainly reflects the country's solid domestic consumption-led economic growth, restrained budget deficit and public debt, as well as resilience to external shocks supported by a flexible exchange rate, credible monetary policies and accumulation of foreign exchange reserves.#8Billion USD The Economist: Indonesia rounds out the top five of Asian economies that can look forward to increasing investment spending. (January 2019) 1 China India Indonesia Vietnam Singapore Thailand Japan Australia Malaysia Hong Kong Philippines South Korea Taiwan Myanmar 0 10 20 20 58.3 48.7 48.1 39.8 39.2 38.5 36.4 36.4 34.2 32.1 31.9 26.3 25.2 22.5 30 400 50 60 70 Indonesia Enjoys Large Investments Relative to Peers within the Region² 40 Total Investment / GDP (%) 35 30 20 15 10 252525 | I I I 0 India Indonesia Malaysia Philippines 2018 2019 2020e Thailand Vietnam UNCTAD: Indonesia is listed in the top 20 host economies based on FDI inflows, 2017 and 2018 (June 2019) 3 300 Investors are flocking to Indonesia JBIC: Among ASEAN countries, Indonesia is the most preferred place for business investment (November 2018)4 China 250 200 150 100 50 0 China (2) United States (1) Singapore (5) Netherlands (7) Hong Kong, China (3) United Kingdom (4) Brazil (6) Australia (8) Spain (17) India (9) Canada (15) France (13) Mexico (12) Germany (11) Italy (16) Israel (19) Viet Nam (21) Indonesia (18) Korea, Republic of (20) 2018 2017 Russian Federation (14) (x) 2017 ranking 1. 12 Source: The Economist - Asia Business Outlook Survey 2018 2. Source: IMF World Economic Outlook, Database October 2019 $ 52.2 India Thailand 46.2 37.1 Vietnam Indonesia US Mexico 33.9 30.4 28.8 13.7 Philippines 10.0 Myanmar 8.6 Malaysia 8.4 Germany 5.8 Brazil 5.6 Korea 5.1 % of surveyed who consider each country has promising prospects Taiwan 4.4 Russia 3.7 0.0 00 10.0 20.0 30.0 40.0 50.0 60.0 3. Source: United Nations Conference on Trade and Development (UNCTAD) - World Investment Report 2019 Source: JBIC - Outlook for Japanese Foreign Direct Investment (30th Annual Survey) 4.#9222 2 Why North Sumatra? MACAN YAOHAN SUPERMARKEY North Sumatra isn't only a great market for your products, but also a perfect place for production base. F#107 North Sumatra Profile Governor Vice Governor : Edy Rahmayadi : Musa Rajekshah Capital City : Medan ATERA UT Regencies/Cities : 25 Regencies and 8 Cities Geographic Advantages Located in the vast and prosperous area of Sumatra island, with total area of 73.000 km² It is strategically positioned along the Malacca Strait and has long been a major trade center in west Indonesia. A MILLENIAL PROVINCE Almost half of North Sumatra population is under 25 years old. LOW MINIMUM WAGE LEVEL At $177 / month, our wage level is cheaper than several countries in ASEAN. GRDP 2019 %share to national 5% Top 6 biggest province by economic comparison POPULATION 2018 14.42m The 4th most populous Province in Indonesia EMPLOYMENT RATE 2018 71.82% Adequate human resources for supporting new business HDI 2018 71.18% Categorized as high INFLATION January 2020 0.57% %mtm EXPORT Jan-Dec 2019 - 4.41% %share to national#118 Vigorous Economic Growth At 4th Quarter of 2019, North Sumatra' economic growth increased by 5.21% (yoy) compared to growth at the 3rd quarter: 5.11% (yoy). North Sumatra economic growth was still stronger than Sumatra and Indonesia. This strong economic performance is driven by the rapidity of investment sector. Economic Growth of All Provinces in Sumatra EXPENDITURE m $ Household Consumption (51%) Government Consumption (8%) Investment (31%) Export (40%) Import (32%) 4.92 Q3'19 4.07 Q4'19 11.39 Q3'19 -12.94 6.26 Q4'19 Q3'19 8.54 -4.03 Q4'19 Q3'19 0.76 -4.33 -1.44 Q4'19 Q3'19 Q4'19 Note: amounts in parentheses indicate sectors distributions of GRDP at constant market price in the fourth quarter of 2019 5.60 Aceh (5%) 5,21 Sumut (23%) 5,21 Kep. Riau (8%) 5,21 Riau (22%) 2,91 5.40 5.20 5.00 4.80 Sumbar (7%) Jambi (6%) 3,59 4.60 Bangka Belitung (2%) 4.40 5,13 3,99 4.20 Bengkulu (2,11%) 4.00 Sumsel (13%) 4,79 Lampung (11%) 5,69 5,07 Higher than Sumatra's growth Lower than Sumatra's growth National, Sumatra, and North Sumatra Economic Growth 5.25 5.11 5.21 5.05 5.02 4.97 4.57 4.62 4.49 III IV || IV IV 2017 2018 2019 National Sumatra North Sumatra#12::: Rp. Triliun 8,000 7,000 6,000 5,000 4,000 3,000 2,000 2018 9 Growing Investment Realization 2019 INVESTMENT REALIZATION BY LOCATION AND SECTOR (JAN - DEC 2019) FDI & DDI: Rp 24,82 T FDI & DDI : TOP 5 SECTORS BASED ON FDI VALUE TOP 5 LOCATIONS BASED ON FDI VALUE Rp 25,44 T 1,402.40 DEVELOPMENT OF INVESTMENT REALIZATION 1,144.22 Medan IDR Billion Batubara 2,207.34 633.45 905.39 Madina 510 587.51 IDR Billion 413.86 Deli Serdang 498.86 1,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 Services Electricity, Gas Food Industries Mining and Water Plantation 4,439.58 ■DDI FDI 2,122 1,618 3,095 1,537 4,356 4,325 5,608 5,459 3,259 3,607 4,176 5,408 1,197 1,597 1,969 1,202 ■TOTAL 5,381 5,225 7,271 6,945 5,553 5,922 7,577 6,661 Transportation, Storage, and Telecommunication TOP 5 SECTORS BASED ON DDI VALUE IDR Billion A Tobasa 317.03 TOP 5 LOCATIONS BASED ON DDI VALUE Medan Batubara 2,616.92 7,106 2,692.32 2,372.77 2,146.17 2,043.54 Deli Serdang 2,165.28 IDR Billion Labuhan Batu Tapanuli Utara 884.11 Food Industries Construction Plantation Real Estate 2,140.16 Source: Promotion and Licensing Division Government of North Sumatra#13ALA Ports Port of Belawan - Medan Port of Kuala Tanjung - Batu Bara Port of Tanjung Balai Asahan - Tanjung Balai Port of Pangkalan Susu - Langkat Port of Sibolga - Sibolga Port of Gunung Sitoli - Gunung Sitoli (Nias Island) Airports Lasondre Airport - Batu Islands Binaka Airport - Gunung Sitoli Kualanamu International Airport - Deli Serdang Aek Godang Airport - North Padang Lawas Ferdinand Lumban Tobing Airport - Central Tapanuli Sibisa Airport - Toba Samosir Silangit International Airport - Siborong-Borong Train Sribilah (Medan → Rantau Prapat) Putri Deli (Medan Tanjung Balai ) Siantar Ekspres ( Medan Pematang Siantar ) Airport Railink (Medan → Kualanamu) Sri Lelawangsa ( Medan → Binjai ) 10 Infrastructure Acceleration Existing and Planned Toll Roads in North Sumatra Langsa JALAN TOL EKSISTING DAN RENCANA DI PROVINSI SUMATERA UTARA Trans Sumatra Highway A grand scale project to bring connectivity among provinces in Sumatra island. Everything will be more connected, not less. Belawan KNIA Binjai Tol T. Tinggi - Kisaran (68,9 Km) Medan Tol Binjai - Langsa (110 Km) Lubuk Pakam Tebing Tinggi Kuala Tanjung Tol Medan - Berastagi (± 49,Km) Berastagi Kisaran - Rantau Prapat (100 Km) Medan Binjai Medan Binjai (16 Km) Selesai Pematang Siantar Kisaran Tol Medan-Kualanamu-Tebing Tinggi Seksi 2 hingga 6 sepanjang 41,6 km Tol Kuala Tanjung - T. Tinggi Parapat (143,25 Km)- Parapat Tarutung Rantau Prapat Tol Parapat - Tarutung - Sibolga Sibolga Tol Medan - KNIA - Lubuk Pakam - T. Tinggi (62 km) Selesai BAPPEDA PROV. SUMUT Tebing Tinggi Tol Palembang-Indralaya Seksi 1 (Palembang-Pamulutan) Pekanbaru 7,75 km Padang O Tol Medan-Binjai Jambi Bts Dumai (Prov. Riau) Seksi 2 (Helvetia-Semayang) 6,18 km Seksi 3 (Semayang-Binjai) 4,28 km Dumai - Sp. Sigambal - Rantau Prapat (175 Km) LEGENDA Jalan Tol Eksisting Tol Bakauheni-Terbanggi Besar Jalan Tol Rencana Paket 2 (Sidomulyo-Kotabaru) segmen SS Kotabaru-SS Lematang 5 km Palembang Indralaya Bengkulu Terbanggi Besar Bakauheni#143 Potential Projects & Other Potential Guaranteed by the government, potential projects are handpicked just for you. In addition, We also specifically collect potential tourism sites and products in North Sumatra.#1512 INVESTMENT PROJECT Pangkalan Brandan Belawan Stabat Belawan seaport Medan Binjai KNO airport Tebing Tingg Special Economic Zone SEI MANGKEI Pematangsiantar Sidikalang Lake Toba Pulau Samosi Balge To Thailand, Middle East, Asia, Europe, and beyond. Teluk Intan KUALA TANJUNG port To Malaysia Tanjung Balan 38km to Kuala Tanjung port NORTH SUMATRA 106km to KNO Airport 125km to Medan (capital) Sontang 146km to Belawan seaport Panyamburgen SPECIAL ECONOMIC ZONE SEI MANGKEI Mala Location Investment Value Simalungun Infrastructure: IDR 5,1 Trillion Investor/Tenant IDR 129 Trillion Kuala Lumpur PUTRAJAYA 1203 NEG SEMBILAN 117 Pob Dicksons Total Area / Land Status Segamat District Mode of Offer Taman Negara Johor Endau Rompin Mersin 193 Project Owner MALACCA Kluang Muar 23/Yong Batu Pahat To Singapore, Jakarta, and the Pacific. Pulau Rupat Dumai Project Description Pulau Bengkalis Pulau Pedang Pulbu Rangsang Pulsu Tebingtingg Sei Mangkei is an industrial area located in the center of raw materials based on agro that are not owned by other industrial area in Indonesia. SEZ Sei Mangkei is divided to 3 zones: Main Industries Singap ✓ Industrial Zone: Palm Oil Downstream Industry Zone (oleochemical, refinery, biodiesel), Rubber Downstream Industry Zone, Production Supporting Facilities, Various Industry Zone (electronic, electricity), Small & Medium Industries. Logistic Zone : Dry Port, Tank Farm, Warehousing, Packaging. ✓ Tourism Zone: Hotel, Golf Course, Commercial Area, MICE (Meeting, Incentives, Convention & Exhibition). Project Status @ 1933,80 Ha/Rights to Manage and Build (HPL) Financing and Investment PT.KINRA Palm Oil & Downstream Industries Rubber & Downstream Industries Various Industry 1) Infrastructure availability. 2) Government provisions and support. 3) Land used: 283 Ha / 14.63 % from total area (updated January, 2019). 4) Investment realization: Rp. 3 Trilyun (updated January, 2019). 5) Foreign companies are entitled to construct and own buildings or other structures on the land (max. 30 years and extendable for another 20 years). Contact Person: Name : Anastasia Indriyani Mobile : +62811633721 Email : [email protected]#1613 INVESTMENT PROJECT KUALA TANJUNG INDUSTRIAL ESTATE Location Investment Value Total Area / Land Status Mode of Offer Project Owner Project Developer Main Activities Batubara IDR 28.87 Trillion +3400 Ha Financing and Investment PT Pelabuhan Indonesia I (Persero) PT Prima Pengembangan Kawasan Processing Industries 1) Land Acquisition is on progress Project Description Project Status 2) Existing Industries: Inalum (Aluminium & Derivative Industry), PT Wilmar (CPO), PT Bakrie (CPO). Kuala Tanjung Industrial Estate is intended for processing industries such as : Petroleum ✓ Liquified Natural Gas Automotive Elctricity Palm Oil Aluminium Rubber ✓ Cement PROJECT'S OWNER PROFILE: PT Pelindo I is a leading port service provider in Sumatera. It operates 24 ports and has a strong footprint in Aceh, North Sumatera, Riau and Riau Islands. PT. PELINDO I through its subsidiary (PT Prima Pengembangan Kawasan) is in charge to develop and manage Kuala Tanjung Industrial Estate. Contact Person: Asih Kurnia (Stakeholder Manager) Mobile: +6281585671500 Email: [email protected] © 2018 by Indonesia Investment Coordinating Board. All rights reserved#17Legenda Hospitality MICE Commercial UMKM Centre Geo Cultural Park Culture Centre Supporting Facilities Healthcare Botanical Garden Agro Farm Golf Area Back of House Green Space District Gateway • 14 OPPORTUNITIES SIBISA INTEGRATED RESORT - LAKE TOBA 500 1000 m 100 ha 10 ha 1 ha Location Land Sectors Ajibata District, Toba Samosir Regency, North Sumatera 386.72 Ha Tourism 1. Hospitality 121.67 Ha 2. MICE 2.72 Ha 3. Commercial 8.36 Ha 4. Small and Medium Enterprise Center 0.9 Ha 5. Geo Cultural Park 9.78 Ha Utilities & Infrastructure 6. Cultural Center 1.35 Ha Investment Value 7. Supporting Facilities 2.06 Ha 8. Healthcare 1.66 Ha 9. • Business's Scheme . Project Status Botanical Garden 14.54 Ha 10. Agro Farm 21.47 Ha 11. Sustainable Golf 71.53 Ha 12. Green Space 127.43 Ha Total Infrastructure; Landscape Feature; Office and Supporting Building; Public Facility IDR 1,8 Trillion (Excluding PPN) Long lease Agreement (30 to 80 years) Other Agreeable Cooperation Form Managed by Lake Toba Tourism Authority Project Description • Business Overview & Objectives: 5-Star International Hotel and Resort, Leisure and Entertainment, Commercial and Fine Dining, Luxury Residential Villa, Golf Course and Facilities. Resort Concept that incorporate nature, culture, and technology into an Integrated Eco Resort. Competitive Advantage ✓ World's largest volcanic lake and stunning landscape in nature (formed by 3 major volcanic eruptions) ✓ Accessibility (Air Connectivity) : Kualanamu Airport, Silangit Airport and Sibisa Airport. Name Occupation Mobile Email Contact Person : M. Rommy Fauzi : Director : +62 818 0868 6886 : [email protected]/ [email protected] © 2018 by Indonesia Investment Coordinating Board. All rights reserved#1815 OPPORTUNITIES LIGHT RAPID TRANSIT (LRT) Location Track Length Medan, Binjai and Deli Serdang 41.3 km Mass Transportation Sectors Investment IDR 21 Trillion Value ANG EKSPRES Business's Scheme Public Private Partnership Project Status Compilation of Feasibility Study and Final Business Case (FBC) completed in 2019 Project Description GCA Mayor of Medan City As one of the biggest cities in Indonesia, Medan's limited public transportation and vast growing number of cars are predicted to generate gridlocks on many major roads in Medan by 2022. The integrated Light Rail Transit (LRT) and Bus Rapid Transit (BRT) scheme is the government's solution and will become an important infrastructure to the city. Name Occupation Mobile Email Contact Person : Rahmad Ziady : Head of sub-sector of Finance, Investment & Assets Planning and Development Body Government of North Sumatra : +62 823-6411-6083 : [email protected]#19IA DAMRI m BIFB 16 OPPORTUNITIES BUS RAPID TRANSIT (BRT) Medan, Binjai, and Deli Serdang Medan-Amplas-Sp. Kayu Besar-Sport Center Project Description As one of the biggest cities in Indonesia, Medan's limited public transport and huge growth of private car ownership are predicted to lead to gridlocks in major roads in Medan by 2022. The integrated Light Rail Transit (LRT) and Bus Rapid Transit (BRT) scheme is the government's solution to it and will become an important infrastructure to the city. Location 1. Tracks (Batangkuis) 2. Medan-Binjai Sectors Transportation Investment IDR 1.5 Trillion Value Business's APBN/Public Private Partnership Scheme Project Status Compilation of Feasibility Study and Final Business Case (FBC) completed in 2019 GCA Mayor of Medan City Name Occupation Mobile Email Contact Person : Rahmad Ziady : Head of sub-sector of Finance, Investment & Assets Planning and Development Body Government of North Sumatra : +62 823-6411-6083 : [email protected]#2017 SPORTS CENTER Location Deli Serdang Land 300 Ha Sectors Infrastructure Investment CORT CENTERY PROVINSI SUMATERA TARAY Value Business's Scheme Main facilities & Infrastructure: Main stadium Project Description Hockey field (indoor/outdoor) and gateball field Aquatic facilities Velodrome Racing circuit Supporting Facilities: • . • Homestay Business center: mall, hotel, mass transportation Electricity, water, accessibility Building for gym, bowling, squash Kurash Sambo Project Status - OPPORTUNITIES IDR 8 Trillion - - - Exc.commercial area APBN (construction of sports facilities and infrastructure) PPP/B to B (construction of commercial area) The Master Plan was completed in 2019 Land acquisition and compensation will be completed in early 2020 The construction of boundaries, gates and security posts will be carried out in 2020 DED is on progress Name Occupation Mobile Email Contact Person : Rahmad Ziady : Head of sub-sector of Finance, Investment & Assets Planning and Development Body Government of North Sumatra : +62 823-6411-6083 : [email protected]#2118 DELI INTERNATIONAL HOSPITAL Location Land Sectors Investment Value Deli Serdang 6 Ha (Land Area) Health Care IDR 1.8 Trillion Project Description The Project is expected to improve the quality of medical services to the people of North Sumatra and its surrounding areas. Business's Scheme APBN/PPP OPPORTUNITIES Project Status - Feasibility Study and Master Plan in 2020 The construction of cardiac operating rooms in 2021 DED of Tower in 2021 The construction of Tower will be carried out in 2022 The procurement of Medical Equipment will be carried out in 2022 Name Occupation Mobile Email Contact Person : Rahmad Ziady : Head of sub-sector of Finance, Investment & Assets Planning and Development Body Government of North Sumatra : +62 823-6411-6083 : [email protected]#2219 MEDAN - BERASTAGI FLYOVER M Project Description This project is intended to support National Strategic Area (Medan, Deli Serdang and Karo) and Lake Toba as National Tourism Strategic Areas. Location Track Length Sectors Deli Serdang, Karo 2 Km Transportation Investment Value IDR 600 billion Business's Scheme PPP Project Status - OPPORTUNITIES Support by cantilevers on Medan - Berastagi road in 2020 It has been proposed to the Indonesian Parliament and the Ministry Name Occupation Mobile Email Contact Person : Rahmad Ziady : Head of sub-sector of Finance, Investment & Assets Planning and Development Body Government of North Sumatra : +62 823-6411-6083 : [email protected]#2320 20 OPPORTUNITIES INTEGRATED WASTE MANAGEMENT SITE Location Land STM Hilir, Deli Serdang Regency 100 Ha Project Description This project is intended to support National Strategic Area (Medan, Binjai, Deli Serdang and Karo). Sectors Infrastructure Investment Value IDR 300 Billion Business's APBN/PPP Scheme Project Status Feasibility Study was completed in 2017 Master Plan in 2020 DED, Land Acquisition, Environmental Impact Analysis (EIA) Study in 2021 The construction will be carried out in 2022-2023 Name Occupation Mobile Email Contact Person : Rahmad Ziady : Head of sub-sector of Finance, Investment & Assets Planning and Development Body Government of North Sumatra : +62 823-6411-6083 : [email protected]#2421 21 BOTANICAL GARDEN Project Description This project is expected to support the National Strategic Area in North Sumatra (Medan, Binjai, Deli Serdang, and Karo). OPPORTUNITIES Location Land Sectors Investment Value Business's Marendal, Patumbak, Deli Serdang Regency 200 Ha Recreation IDR 100 Billion Scheme Project Status APBN/PPP Feasibility Study and Master Plan will be carried out in 2020 Name Occupation Mobile Email Contact Person : Rahmad Ziady : Head of sub-sector of Finance, Investment & Assets Planning and Development Body Government of North Sumatra : +62 823-6411-6083 : [email protected]#25Project Description 22 22 OPPORTUNITIES BAH BOLON DAM Location Land Batu Bara Regency and Simalungun Regency 400 Ha This project is expected to support Kuala Tanjung Industrial Estate and SEZ Sei Mangkei. Sectors Infrastructure Investment Value IDR 1.2 Trillion Business's APBN/PPP Scheme Project Status Feasibility Study and Detail Engineering Design will be carried out in 2021 Name Occupation Mobile Email Contact Person : Rahmad Ziady : Head of sub-sector of Finance, Investment & Assets Planning and Development Body Government of North Sumatra : +62 823-6411-6083 : [email protected]#2623 OPPORTUNITIES MEDAN - BERASTAGI - TONGGING TOLL ROAD Location Deli Serdang Regency and Karo Regency Project Description This project is expected to support North Sumatra Tourism Area (Berastagi and Lake Toba) and National Strategic Area (Medan, Binjai, Deli Serdang, and Karo). Track Length 75 km Sectors Transportation Investment Value IDR 13 Trillion Business's Scheme PPP Name Occupation Mobile Email Contact Person : Rahmad Ziady : Head of sub-sector of Finance, Investment & Assets Planning and Development Body Government of North Sumatra : +62 823-6411-6083 : [email protected]#2724 MEDAN - BAHOROK - TANGKAHAN TOLL ROAD Project Description This project is intended to support priority tourism area (Tahura, Bahorok, and Tangkahan). Location Langkat Regency Track Length 40 km Sectors Transportation Investment Value IDR 6 Trillion Business's Scheme PPP OPPORTUNITIES Name Occupation Mobile Email Contact Person : Rahmad Ziady : Head of sub-sector of Finance, Investment & Assets Planning and Development Body Government of North Sumatra : +62 823-6411-6083 : [email protected]#281 Blang Pidie Man 6 Pantai Muara Opu South Tapanuli Regency 2 Cinchona Cinabang Orang Utan Batang Toru South Tapanuli Regency Gunungsitoli Pulau Nias Hinak 3 Teluk 25 Pematang Siantar Sibolga 3 4 2 SUMATERA UTARA Padang 1 Sidempuan Potential Tourism Site Mursala Island Central Tapanuli Regency Google 4 Poncan Island Sibolga City Bukittinggi CT Padang Tanjang AH2 6 Malay PAHANG Pekan Kuala Lumpur E26 Ο Tangkahan Langkat Regency NEGERI SEMBILAN AH 18 5 Dumai Silahi Sabungan Dairi Regency Pekanbaru RIAU#29MUARA OPU BEACH South Tapanuli regency 59 km away from Dr Ferdinand Lumban Tobing airport 26 With 14 km shore length, Muara Opu beach is home for thousands of turtles which breed once a year. You could feel the nature experience while seeing the breath-taking view "The Home of Turtles "#3027 22 BATANG TORU FOREST South Tapanuli regency 30 km away from Dr Ferdinand Lumban Tobing airport "The Oldest Orang Utan" Batang Toru forest is home to one of the oldest orang utan, Pongo Tapanuliensis, the almost-extinct creature#31MURSALA ISLAND Central Tapanuli regency Nearest airport: Dr Ferdinand Lumban Tobing airport 28 "The King Kong Island" The awesome scenery and its authentic wilderness have attracted the world. Proudly present Mursala Island, where King Kong movie (2005) production took place#3229 29 "The Exotic Island" PONCAN ISLAND Sibolga City Nearest airport: Dr Ferdinand Lumban Tobing airport Imagine an island with a beautiful landscape, and the blue ocean. Where the water so clear you can see everything underneath. That's exactly what Poncan Island offers you#33SILAHI SABUNGAN Dairi regency Nearest airport: Sibisa airport 30 "Where Nature meets culture" Natural beauty, cultural experience and religious pilgrimage, Silahi Sabungan is a majestic place like no other to find inner peace#34TANGKAHAN Langkat regency 136 km away from Kualanamu International Airport 31 "The Hidden Paradise" Some calls it "the hidden paradise", Tangkahan is a nature wonder where you can play and have fun with the friendly elephant. Here, you also can explore the jungle and enjoy the fresh river water.#35SMALL MEDIUM ENTERPRISE North Sumatra has several SMEs that have great potential to enter larger markets. Here you can see some products from North Sumatra SMEs that are ready to compete in the international market. 00 "Meet the Magnificent North Sumatra"#36WOVEN FABRIC Indonesia is known by many local races and ethnic that reflected by our fashion style. Sumatra Utara could offer and fulfil your ethnical desire with Songket and Ulos, which identical with Batak People ULOS SIANIPAR There are various types of fabric pattern and also accessories which are made from Ulos fabric such as dresses, bags, shoes etc [email protected] +6281265846702 galeryulos_sianipar IR & IR Songket Deli Translates traditional textile from Deli Malay Indonesia into modern style textile products. This such heritage is worth the world-wide sharing [email protected] +62 811-6517-766 songketdeli 33 RAKI TENUN Various types of woven products such as raw fabric, clothes, and other accessories [email protected] 081375437933 iwah_rakitenun SMALL MEDIUM ENTERPRISE#37The Perfect Blend Arabica Blue Toba Organic DISKESTE CONY MILST 01 TO altin Coffer Sigordang A MANDHELING LINTONG LONGBERRY GAYO ALOYA ALOYA mx no ALOYA ALOYA 1 Grado Presh Caffer 1th Grade Fresh Coffer 1 Grade Fresh Coffer 1st Grade Fresh Colle SINGLE ORIGIN ARABIC SINGLE ORIGIN ARABIKA 03 200 gram/7,060 ЮЯЗИК 131102 ****** M 50 ЮЯЗИІГ 040 05 50 ABICA OFFEE NETTO 1000 COLD BREW MY-TO-DRINK COFFEE Kopi CIMBANG SINABUNG SINGLE ORIGIN ARABICA 200 gram/7,00 02 04 06 COFFEE North Sumatra is very famous for its specialty coffee such as Lintong, Mandheling, and Sidikalang. These kind of coffee are among the best and most sought after coffee in the world 01 MAGA COFFEE Arabica Mandheling Lake Toba Organic green beans and roasted beans wild civet, wine coffee, etc. [email protected] 0821-6745-8276 @magacoffee 04 DRIP COFFEE Arabica Lintong, Arabica Samosir, Arabica Sidikalang, Arabica Mandailing, Arabica Karo, Arabica Blue Batak coldbrew coffee, wine coffee, and beauty products [email protected] 0821-1758-8175 02 ALOYA COFFEE Mandheling, Lintong, Longberry, Gayo green beans and roasted beans, cascara, coldbrew [email protected] 0821-6745-8276 www.aloyacoffee.com 05 SINERGI COFFEE Arabica Karo green beans and roasted beans [email protected] 0813-7558-8774 03 ASTARI COFFEE Arabica Lintong, Arabika Sigordang, Arabika Mabulang, Robusta Sidikalang [email protected] 082279779352 Astari Coffee 06 CIMBANG COFFEE Arabica Coffee green beans and roasted beans, and powder [email protected] 082160550726 Kopi Cimbang Sinabung 34 SMALL MEDIUM ENTERPRISE#38- E Bula Semut A BERKAN BULUN A uut ren LUH AWAL Gula Semut Aren Gula Aren Alam Makmur Palm Sugar Made from pure palm sugar Has a lot of nutrients Practical to use as a sweetener Palm Sugar Produced packaged brown and palm sugar Produced bandrek palm Sugar Produced Choco palm sugar [email protected] 081397610484 gulasemutarenberkahbuluhawar [email protected] 0811602211 gulaarenmedan Others opcorn ontak ontak K Data COCO Nata COCO Selasih Sri Wils Qaya COCO ack Zac Zack Zac KREZ K KR D SUPO DURIN SUPU DUDI Nata De Coco Sapo Durin Dessert Nata De Coco [email protected] 08116502012 Sapodurin 35 0212014 - Zack Krezz Snacks Potato chips Banana crackers - Cassava chips Tempe Chips - Crispy mushroom [email protected] 085296661433 Zack Krezz Pop Corn Brontak Snacks Crunchy caramel popcorn wrapped in 5 unique flavors: Caramel Chocolate, Caramel Cheese, Caramel Tiramisu, Caramel Mango and Caramel Strawberry. [email protected] 081388054676 popcornbrontak SMALL MEDIUM ENTERPRISE#39TET 4 Licensing in Indonesia A quick guide on getting business license in Indonesia. It's never been easier to do business here.#40BKPM 01 PREPARATION > Obtaining principal license Ministry of Law and Human Rights (with the help of notary) > Establishing of limited liability company Researching about the sectors for investment under the negative investment list BKPM FDI PROCEDURES (For Non-Industrial Zone) 02 PRE-ORIENTATION Obtaining import identification number (API-P) for manufacturing companies, if needed Submitting investment activities report (LKPM) every 3 months DG of Taxation, Ministry of Finance Obtaining facilities such as machinery import duty exemption and approval of tax facilities Local Government Obtaining licenses from local government, such as building permit, domicile certificate. Sectoral Ministries Obtaining permits from relevant sectoral ministries, such as plantation permits 03 COMMERCIAL OPERATION BKPM Obtaining business license (IU) before the start of commercial operation Obtaining general import identification number (API-U) and material import duty exemption, if needed Submitting investment activities report (LKPM) every 6 months Sectoral Ministries > Obtaining periodic operational permits, such as construction services permits 37#4101 Fulfill of 3 Criterias for Investing in Indonesia 1) Investment plan minimal IDR 100 billion or absorbing 1,000 local workers 2) Submitted directly by Investor 3) The company project is located in certain industrial zone nor bounded zone 3 HOURS Investment Licensing Service & Direct Construction Permits 02 Registering Your Business at One Stop Service BKPM 1) One stop service BKPM is providing in-house notary 2) Registration deed of establishment & maintance of Tax ID number 3) By on-line through OSS BKPM Get License For Making A New Business 04 Direct Construction 05 03 1) Principle License 2) Deed of Incorporation 3) Tax ID number (TIN) Direct Construction Submit Your License Simultaniously 1) One Stop Service BKPM 2) Regional/District Investment Agency (BPMPTSP) 38 Submit#42INVESTMENT INCENTIVES TAX HOLIDAY MoF Regulation No.150 of 2018 Minimum investment of IDR 500 billion Applied to 18 industry groups 100% Reduction Rate (single rate) No Time Period Investment Value IDR 500 bn up to less than IDR 1 tn IDR 1 tn up to less than IDR 5 tn Income Tax Reduction Rate 5 years 7 years 4 10 years 15 years IDR 5 tn up to less than IDR 15 tn IDR 15 tn up to less than IDR 30 tn Concession Period 5 Up to 20 years Minimum IDR 30 tn 50% CIT Reduction for the next 2 years SA MINI TAX HOLIDAY MoF Regulation No.150 of 2018 Minimum investment of IDR 100 to < 500 billion 50 % Reduction Rate (single rate) 5 Year Concession Period 25% CIT Reduction for the next 2 years 1 The taxpayer (company) is incorporated in Indonesia 1 Through OSS 2 GENERAL Fulfill Debt Equity Ratio for income tax purposes as stipulated on MoF Regulation No.150/2018 2 CRITERIA 3 Has never had tax holiday application granted or rejected by the MoF Along with taxpayer's application for New Business License (NIB) to BKPM HOW TO APPLY 3 Applying within 1 year after the NIB is issued by BKPM 4 Obtain a tax clearance certificate (SKF) issued by DGT 39#43Key Contacts Who to contact if you want to invest and grow your business in North Sumatra?#44OUR TEAM |We are fully committed to help your investment B SUMATERA Bank Indonesia Rizki Rahmawati Investor Relation [email protected] +6287722887165 TARA Promotion and Licensing Division Government of North Sumatra Renata [email protected] +6281361116407 laketoba caldera of Kings Authority of Lake Toba M. Rommy Fauzi Director of Tourism [email protected] [email protected] +6281808686886 Sei Mangkei SEZ PT. KINRA Anastasia Indriyani [email protected] +62811633721 SUMATERA ITA AFRIC Planning and Development Body Government of North Sumatra Rahmad Ziady Head of sub-sector of Finance, Investment & Assets [email protected] +6282364116083 Prima Kuala Tanjung Port PT. Prima Pengembangan Kawasan Pengembangan Said Joeanna Kawasan Busines Manager [email protected] +6281284347000 Saut F. Siagian Business Director [email protected] +6281298556132#45SCAN ME For more information, Kindly visit our website: northsumatrainvest.id GG