#1A definitive guide on macroeconomic condition, data & information, key contacts, and potential investment projects in North Sumatra Quarter 2-2019 edition NORTH SUMATRA INVESTMENT BOOK HANGIN#2B About Us 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). Our mission is to attract Foreign Direct Investment (FDI) in North Sumatra to foster economic growth. Our Mission B Providing Providing Investors with the necessary data and information Promoting Promoting the right investment opportunities and projects Connecting Connecting investors with the right business contacts#3CONTENT Main informations you will find 01 02 03 04 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. Potential Projects & Tourism Potential Our handpicked potential projects for you, guaranteed by the government. In addition to that, we specifically collect the potential tourism site in North Sumatra. Licensing in Indonesia A quick guide on getting business license in Indonesia. It's never been easier to do business here. Key Contacts 05 Who to contact if you want to invest and grow your business in North Sumatra?#4INDONESIA'S STRONG PERFORMANCE#510 7,0 Indonesia GDP Growth | % year-on year & % quarter-to-quarter 5,0 5,12 4,94 4,93 5,05 3.83 3,05 QoQ YoY 5,17 5,18 4,82 4,74 4,77 4,92 5,01 4,94 5,01 5,01 5,06 5,19 5,27 5,06 5,17 5,18 5,07 4,01 3,74 3.27 3.31 4.01 3.19 4.21 Solid national economic growth Seasonal factors at the beginning of the year as well as the impact of weaker-than- expected global economic gains contributed to the moderate economic downturn in Indonesia. Institutions 2019 Growth (YoY) 3,14 3,09 3,0 2019 Budget 5.3 1,0 0,04 (0,16) Bank Indonesia 5.0-5.4 (0,36) -1,0 (1,73) (1,81) (0,30) FTT (0,42) (0,52) IMF 5.1 (1,70) (1,69) (2,07) World Bank 5.2 -3,0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 ADB 5.2 2014 2015 2016 2017 2018 2019 Consensus 5.1 Forecast (May 2019)#6Indonesia GDP Growth | % year-on year & % quarter-to-quarter QoQ YoY Solid National Economic Growth Although the impact of weaker-than- expected global economic gains contributed to the moderate economic downturn in Indonesia, net exports still maintained a positive position. 10 7,0 5,0 5,12 4,94 4,93 5,05 5,17 5,18 4,82 4,74 4,77 4,92 5,01 4,94 5,01 5,01 5,06 5,19 5,27 5,06 5,17 5,18 5,07 4.21 3.83 3,05 4,01 3,74 3.27 3.31 4.01 3.19 Institutions 2019 Growth (YoY) 3,14 3,09 3,0 2019 Budget 5.3 1,0 0,04 (0,16) Bank Indonesia 5.0-5.4 (0,36) -1,0 (1,73) (1,81) (0,30) FTT (0,42) (0,52) IMF 5.1 (1,70) (1,69) (2,07) World Bank 5.2 -3,0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 ADB 5.2 2014 2015 2016 2017 2018 2019 Consensus 5.1 Forecast (May 2019)#7Our 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 cut licenses 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. Ease of Doing Business 20 20 40 60 80 60 100 120 140 | Index, The Higher The Better 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 0 91 72 73 160 -Indonesia India Philippines Bulgaria Colombia#8| STABILITY External risk reduced by adequate reserve Rupiah exchange rate | USD/IDR 15.500 15.176 IDR/USD Quarterly Average Balance of Payment | USD bn US$bn 20 Current Account Overall Balance US$bn Capital and Financial Account 160 Reserve Asset (rhs) 15.000 14.500 14.000 13.378 13.500 13.000 13576 13952 14.409 14601 Data as of May June 19th, 2019 Monthly Average 14798 15 10 14.282 14.381 5 14.207 0 14269 14134 -5 14270 -10 1-Jan 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec 1-Jan 1-Feb 1-Mar 1-Apr 1-May 1-Jun. Inflation rate | % year-on-year Volatile Food Inti IHK -15 24,5 10,1 120 2,4 80 40 -7,0 1|02|03| | Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4* Q1** 2013 2014 2015 2016 2017 FX Reserves | US$ bn (LHS) and month of imports and debt services (RHS) 20 mtm yoy ytd 20 IHK Inti 0,55 3.28 2,05 US$bn Adm. Prices Volatile Foods 1,70 0,38 3,25 1,55 16 -0,09 1,89 0.57 130 120 4,91 5.19 Administered Prices 12 110 8 100 1,89 4,91 90 3,25 4 80 3,28 0 70- 60 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 2016 2017 2018 2019 50 2018* 2019** 0 Month FX Reserves (LHS) Month of Import & Debt Service (RHS) 15 14 13 12 11 10 9 8 7 6 135791113579111357911 35791113579111357911 3 2013 2014 2015 2016 2017 2018 2019 3 2#9INV.GRADE Investment grade approved! BBB BBB- Investment Grade BB+ Below Investment Grade BB BB- B+ Moody's S&P JCRA Fitch R&I 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 JCR Fitch Ratings Dec 2017, BBB, Rating Upgraded BBB / Stable "Indonesia's resilience to external shocks has steadily strengthened in the past few years, as macroeconomic policies have consistently been geared towards maintaining stability. S&P Global Ratings May 2019, Rating Upgraded at BBB/Stable 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 Apr 2018, Baa2, Rating Upgraded 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." April 2019, Rating Affirmed at BBB, Outlook Revised to Positive BBB / Positive "The ratings mainly reflect Indonesia's solid economic growth underpinned by domestic consumption, restrained level of budget deficit and public debt, and resilience to external shocks stemming from flexible exchange rate policies and accumulation of foreign exchange reserves. The administration led by President Joko Widodo has formulated a large- scale infrastructure development plan and is vigorously promoting it to eliminate the infrastructure shortage. In addition, it has succeeded in expanding infrastructure expenditures and expenditures on human capital, and has been curbing the budget deficit by reducing fuel subsidies."#10DESTINATION | Investors are flocking to Indonesia The Economist: Indonesia rounds out the top five of Asian economies that can look forward to increased investment spending. (January 2019) 1 China India Indonesia Vietnam Singapore Thailand Japan Australia Malaysia Hong Kong Philippines South Korea Taiwan Myanmar 0 400 350 5300 זוד 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 20 30 40 50 60 Indonesia Enjoys Large Investments Relative to Peers within the Region² 40 35 30 / GDP (%) Total Investme stment/ 25 20 15 10 5 India Indonesia Malaysia Philippines ■2018 2019e ■2020e 10 70 UNCTAD: Indonesia is listed in the top 20 host economies based on FDI inflows, 2016 and 2017 (June 2018)3 500 450 JBIC: Amongst ASEAN countries, Indonesia is the most preferred place for business investment (November 2018)4 China India TT 250 200 150 100 50 0 China (3) United States (1) Hong Kong, China (4) Brazil (7) Singapore (6) Netherlands (5) France (14) Australia (9) Switzerland (8) India (11) Germany (19) Mexico (16) Ireland (20) 1. Source: The Economist - Asia Business Outlook Survey 2018 2. Source: IMF World Economic Outlook, Database April 2019 2016 ■ 2017 (x) 2016 ranking Italy (17) Canada (12) Indonesia (47) Russian Federation (13) Israel (27) Spain (18) Republic of Korea (26) 3. 4. Thailand Vietnam 52,2 46,2 Thailand Vietnam Indonesia US Mexico Philippines Myanmar 37,1 33,9 30,4 28,8 13,7 10,0 Malaysia 8,6 8,4 Germany 5,8 Brazil 5,6 Korea 5,1 Taiwan Russia 4,4 % of surveyed who consider each country has promising prospects 3,7 0,0 10,0 20,0 30,0 40,0 50,0 60,0 Source: United Nations Conference on Trade and Development (UNCTAD) - World Investment Report 2018 Source: JBIC - Outlook for Japanese Foreign Direct Investment (30th Annual Survey) 25,98#11SPENDING | Strengthening Productive Spending Allocating budget to a more productive spending Non Line Ministries Rp.778,9 T Line Ministries Rp. 855,4 T Budget for education program | IDR tn IDR tn 600 492,5 500 • Improving the quality of state apparatus by 435,0 406,0 390,3 strengthening bureaucratic reform 400 370,8 353,4 • Strengthening social assistance • Capital Expenditure optimization 2019 300 . Goods Expenditure management Rp1,634.3 T 200 100 0 2014 Real 2015 Real 2016 Real 2017 Real 2018 Outlook 2019 Budget Central Government Spending 2015 2016 Rp1,183.3T Rp1,154.0 T Supporting competitiveness improvement, exports and investment increase, followed by strengthening value for money. 2017 Rp1,259.6 T Budget for health program | IDR tn IDR tn 125 100 123,1 107,4 91,4 92,4 2018 Outlook 75 65,9 59,7 50 Rp1,453.6 T 25 • Accommodating strategic initiatives (i.e. natural disaster 0 reconstruction rehabilitation, 2014 Real 2015 Real 2016 Real 2017 Real 2018 Outlook 2019 Budget democratic agenda).#12REGIONAL | Simultaneous growth all over the region REGIONAL ECONOMIC GROWTH Q1 2019 (%, YOY) SUMATRA (22%) 4,34 4,64 KALIMANTAN (8%) SULAWESI (6%) 4,71 5,49 5,33 6,83 6,88 4,55 Aceh 3.88 Riau Islands 4.76 4,46 North Sumatra 5.30 Riau 2.88 Bengkulu 5.01 Babel Islands 2.79 3,24 3,35 3,52 West Kalimantan 5.07 6,74 Central Kalimantan 6.03 II III IV West Sumatra South Sumatra I III IV | 2018 2019 4.78 5.68 South Kalimantan 4.08 I || III 2018 2019 Jambi 4.73 Lampung 5.18 East Kalimantan 2018 0 5.36 RGDP ≥ 7.0% JAVA (58.5%) 6.0% ≤ RGDP < 7.0% 5,82 Banten 5.42 5.0% ≤ RGDP < 6.0% 4.0% ≤ RGDP < 5.0% 0% ≤ RGDP < 4.0% RGDP < 0% 5,70 5,72 Jakarta 6.23 5,65 5,66 Jawa Barat 5.43 Jawa Tengah 5.14 | || IV I 2018 Jawa Timur 5.51 Yogyakarta 7.50 2019 Pop North Kalimantan 7.13 600 BALI-NUSA TENGGARA (3%) Bali 5.94 West Nusa Tenggara 2.12 East Nusa Tenggara 5.09 6,18 MALUKU-PAPUA (2.5%) 6,51 North Sulawesi 6.58 Gorontalo 6.72 Central Sulawesi 6.77 West Sulawesi 5.21 South Sulawesi 6.56 IV I Southeast Sulawesi 2019 6.33 Maluku 6.32 North Maluku 7.65 Papua-20.13 West Papua -0.26#132 WHY NORTH SUMATRA?#14Strategic position along the Malacca Strait, a global trade route Geographic advantages of North Sumatra Malaysia Kuala Lumpur 2 3 Singapore Mindana Basilan Located in the vast and prosperous area of Sumatra island, with total area of 73.000 km² Celebes Sea A major gateway for trade, both into and out of Sumatra island Jakarta GRE Java Sea (Sumal Thailand Lane Candodie Philippines Indonesia Prous New#15ECONOMY | One of the most thriving economy 7 biggest province by economy comparison | % share to National, % growth year-on-year % Share Province 2015 2016 2017 2018 2019 Q1 (2018) DKI Jakarta 17.3% 5,90% 5,90% 6,20% 6,20% 6,23% East Java 14.6% 5,40% 5,60% 5,50% 5,60% 5,51% West Java 13.1% 5,10% 5,70% 5,30% 5,60% 5,43% Central Java 8.5% 5,50% 5,30% 5,30% 5,30% 5,14% Riau 5.1% 0,20% 2,20% 2,70% 2,30% 2,88% North Sumatra 5,00% 5,10% 5,20% 5,10% 5,20% 5,30% East Kalimantan 4.3% -1,20% National 100% -0,40% 4,80% 5,00% 5,10% 5,20% 3,10% 5,10% 5,36% 5,07%#16DEMOGRAPHIC | An advantage like no other HUGE & GROWING POPULATION Our 14 million population means huge untapped market for investors, and it grows around 1.8%/year. WANYS ROOM FOR NEW BUSINESS With 70% employment rate, we will support new business with adequate human resources A MILLENIAL PROVINCE Half of our population is under 25 years old and we are open to the great new idea NORTH SUMATRA SKILLFUL LABOR Our Human Development Index score is among the best in the nation HIGH LEVEL OF INCOME Our income per capita is around 44 million Rupiah and constitutes a huge market for any products Source: Badan Pusat Statistik (BPS), 2017 LOW MINIMUM WAGE LEVEL At 2.1 million Rupiah / month, our wage level is 40% cheaper than the wage level in Jakarta#17SECTORAL | A commodity based economy Economic share by sector 2018 | % share to total GRDP 27% 21% 20% 18% 14% Employment by sector 2017 | % share to total work force Agriculture, forestry & fishing Manufacturing Trade Construction Other sectors 6% 9% 22% 25% 38%#18EXPORT | Supplying the world's biggest markets Biggest export products | % share to total export in 2018 Palm Oil (34%) North Sumatra is 2nd biggest palm oil producer in the country. Products ranging from crude oil to finished products like soap and cooking oil. Natural Rubber (8%) While price's declining then suppress the production, rubber is still one of the greatest. Most of the export is in the form of rubber sheet, Arabica Coffee (4%) Our Arabica coffee (ie. Sidikalang) is among the most highly priced and sought coffee product in the global market. Biggest market for export | % share to total export in 2018 China (15%) The single biggest export market for North Sumatra's products, including palm oil products, chemical and rubber United States (12%) United States is the biggest importer for food and animals products. Other products include palm oil and rubber glove. India (9%) India is one of the biggest importer of palm oil products from North Sumatera, mostly in the form of CPO.#19ON CONNECTIVITY HE Tol Medan-Kualanamu-Tebing Tinggi PROT. ACKR Seksi 2 hingga 6 sepanjang 41,6 km P. NIAS Tebing Tinggi Tol Palembang-Indralaya Seksi 1 (Palembang-Pamulutan) Pekanbaru 7,75 km Trans Sumatra Highway A grand scale project to bring fluid connectivity among provinces in Sumatra island. Everything will be more connected, not less. Tol Medan-Binjai Binjai Medan Seksi 2 (Helvetia-Semayang) 6,18 km Seksi 3 (Semayang-Binjai) 4,28 km Padang Jambi Tol Bakauheni-Terbanggi Besar Paket 2 (Sidomulyo-Kotabaru) segmen SS Kotabaru-SS Lematang 5 km Bengkulu Palembang O Terbanggi Besar Indralaya Bakauheni L JcLUs PRIM Intra Province North Sumatra is among the most connected province in Sumatra. The 'spider web' above shows how connected we are, even to the most rural area. Focus on Improvement Due to the scale of the road, maintaining the quality of the road has proven as a challenge for the government. But it's going to change as we swift focus to improve quality.#203 POTENTIAL PROJECTS AND TOURISM POTENTIAL#21Lake Toba as Priority Tourism Area World's Largest Volcanic Lake Stunning Landscape in Nature Formed by 3 Major Volcanic Eruptions (last was 74,000 years ago) All-year-round Comfort Climate ± 18-24° C Water Surface Elevation at ± 900 m above sea level#22Unmatched Scenery It's a place where nature and culture met, preserved and nurtured. Simply beautiful.#23OPPORTUNITIES Investing in the jewel of North Sumatra Coordinative Area Include 8 Regencies Area: ± 300,000 Ha ung itan Singkam Danau Toba Pematang Siantar Sarimatondang Seribudolok Sibisa Integrated Resort Loc.: Toba Samosir Regency Area: + 602 Ha Ambarita pat Pulau Samosir Sibisa Alrport peara Siterang Silangit Alrport Dolok Sanggu Siborongborong Integrated Resort "Flower Garden" Loc.: Humbang Hasundutan & North Tapanuli Regencies Area: 1,247 Ha Greater Lake Toba: Coordinative Area 1. Floating Jetty 2. Lake Cruise 3. Sea Plane 4. Aerosport 5. Cable Car Within Designated Development Area: Authoritative Zone 6. 7. International Hotel & Resort International Hospital 1. International Hotel & Resort 6. Waste Management 2. Premium Golf Course 7. Outdoor Elevator / Cable Car 3. Sustainable Energy Plant 8. Flower Garden 4. Water Treatment Plant 9. Farm Agri-tourism 8. Cultural Performance 9. Tourist Bus Service 10. International Event 5. Waste Water Treatment Plant 10. Eco Theme Park#24OPPORTUNITIES TOBA CALDERA RESORT An integrated resort complex located on the cliffs surrounding the naturally sculpted Lake Toba Located on top of a valley with a total authorized area of +500 Ha and development area of ± 386.72 Ha, Sibisa is the key region to be developed by the Lake Toba Tourism Authority. The site overlooks the vast Lake Toba and Samosir Island in the front, as well as Bukit Barisan mountain range in the back. Development Site Area (Ha) Percentage Breakdown Hospitality 121,67 31,46% 3.1 KONSEP PROGRAM RUANG MICE 2,72 0,70% Commercial 8,36 2,16% UMKM Centre 0,9 0,23% Geo Cultural Park 9,78 2,53% Cultural Centre 1,35 0,35% Legenda Supporting Facilities 2,06 0,53% Healthcare 1,66 0,43% Botanical Garden 14,54 3,76% Agro Farm 21,47 5,55% Sustainable Golf 71,53 18,50 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 Back of House 3,25 0,84% Green Space 127,43 32,95% 104 500 1000 m 100 ha 10 ha 1 ha#25TOBA CALDERA RESORT | Branding Concept Eco Friendly • Nature & Adventure Agro & Sustainability • Green Activities Education • No Plastics Pollution Control Alternative Energy To create a unique ecofriendly and sustainable tourism destination in Toba that develops and empowers local communities by integrating technology, diversity, and innovation Community Focused • Education & Training • Community Engagement • Health & Medical • Cultural Shows Geo-Park • UNESCO • Education & Mice • First In Indonesia • Best In Asia • International Exposure • 3D Mapping Shows • Memorable Experiences#26TOBA CALDERA RESORT | Masterplan Concept Natural Tourism Heritage Tourism Leisure Tourism Community Tourism Marvelous geological attraction at one of the greatest Supervolcano on earth Heartwarming Bataknese cultural & historical pilgrimage at the heart of North Sumatera Vibrant and lively creative villages that enlivened the local economy Serene retreating resorts and lakeside delights at the natural wonder of Toba Highland#27TOBA CALDERA RESORT | Hospitality KONSEP TEMATIK HOSPITALITY MORTH RIDGE FIVE STARS HOTELE FACILITIES NR1 BOUTIQUE HOTEL NR2 NR3 NR5 NR4 VILLA NR1: 10.75 Ha, NR2: 10.2 Ha, NR3: 9.18 Ha NR4: 12.94 Ha, NR5: 9.6 Ha KONSEP TEMATIK HOSPITALITY CENTRAL VILLAGE GVI CV2 CV3 100 HOSPITALITY MONSEP TEMATIC HOSPITALITY SOUTHRIDGE Legenda wonderful indonesia Hospitality MICE C3 Commercial C Geo Cultural Park Supporting Facilities ES Healthcare CUMKM centre Green Space Botanical Garden C Agrofarm Golf Area 3 Back of House C Culture Center Set Back 60 m Set Back 20 m (Public Space) SR2 SR3 SR4 SRS SR6 SR7 VILLA HOTEL CV1: 6.62 Ha, CV2: 6.82 Ha, CV3: 5.71 Ha SR1: 6.13 H, SR2: 6.71 Ha, SR3: 5.42 Ha SR4: 5.83 Ha, SR5: 7.51 Ha, SR6: 7.59 Ha SR7: 6.44 Ha#28TOBA CALDERA RESORT | Green Destination KONSEP TEMATIK BOTANICAL GARDEN EDUCATING GREEN www.w GREENHOUSE BOTANICAL GARDEN NR6: 15.55 Ha KONSEP TEMATIK AGRO FARM HOUSE SINGLE E KARM HOUSES SPACE OUT DOOR SPAC GREEN HOUSE 1st kamer FARM HOUSE GREEN DESTINATION KONSEP TEMATIK SUSTAINABLE GOLF wonderful indonesia Legenda C Hospitality MICE C3 Commercial C Geo Cultural Park Supporting Facilities E Healthcare CUMKM centre 3 Green Space Botanical Garden Agrofarm Golf Area Back of House Culture Center Set Back 60 m Set Back 20 m (Public Space) FARMHOUSE CV14: 32 Ha GOLF COURSE SR9: 71.53 Ha#29TOBA CALDERA RESORT PREMIUM OUTLET KONSEP TEMATIK COMERCIAL/FNB RUM OUTLET F&B SR8: 0.84 Ha AREA FOOD CITY KONSEP TEMATIK PREMIUM FNB | Commercial FARM HOUSE RES RESTO CV 6 CV 15 COMMERCIAL CV4: 1.79 Ha CV6: 3.35 Ha CV7: 1.30 Ha UMKM CV15: 0.9 Ha SR 8 Legenda Hospitality MICE Commercial C Geo Cultural Park Supporting Facilities Healthcare CUMKM centre Green Space 3 Botanical Garden Agrofarm Golf Area Back of House Culture Center Set Back 60 m Set Back 20 m (Public Space) COMMERCIAL wonderful indonesia#30TOBA CALDERA RESORT | Geo Cultural Park KONSEP TEMATIK GEO CULTURAL PARK TOBA VOLCANIC MUSEUM GEO CULTURAL PARK VENTURE PARK LUMINA FOREST M CULTURAL CENTRE CV 12 CV 5: 10.95 Ha CV 12: 1.35 Ha Legenda CD Hospitality MICE C Commercial CD Geo Cultural Park Supporting Facilities Healthcare C UMKM centre Green Space Botanical Garden Agrofarm Golf Area Back of House Culture Center Set Back 60 m Set Back 20 m (Public Space) wonderful indonesia#31TOBA CALDERA RESORT | Healthcare HEALTHCARE CV 11: 1.66 Ha Legenda Hospitality MICE C3 Commercial C Geo Cultural Park Supporting Facilities Healthcare CUMKM centre Green Space Botanical Garden C Agrofarm CGolf Area Back of House Culture Center Set Back 60 m Set Back 20 m (Public Space) 207 wonderful indonesia#32ACCESSIBILITY | It's easier than ever to reach Toba Air Connectivity Kualanamu Kualanamu (KNO) Silangit International Direct Flights : Kuala Lumpur, Singapore, Bangkok Domestic Direct Flights : Jakarta and many cities in Indonesia Silangit Airport (DTB) Domestic Direct Flights : Jakarta and Kualanamu International Direct Flights : Singapore, Kuala Lumpur (Malindo Air) Sibisa Airport (SIW) Open for special flights Penang Thailand Kuala Lumpur Singapore Jakarta Stabat Belawan Sidikalang Medan A ° ° Binjai Pakkat Kualanamu Lubuk Pak Airport Tebing Tinggi Pematangsiantar Pulau Samo Sibisa Airport Baige Silangit Airport Surabaya Bandung Bali International Flights Domestic Flights#33Kuala Tanjung Port & Industry Zone Kuala Tanjung Port is developed with 3 functions at its core The seaport will function as Sumatra gateway, which means flow of goods will be centered in Kuala Tanjung. Benefit reducing logistic cost Main Gateway As a trans-shipment hub, Kuala Tanjung will be the new distribution center for container and cargo Benefit reducing logistic cost and distribution Integrated industrial cluster, benefitting companies with better distribution chain, more efficient operation cost, while bringing companies closer to raw material Industry Zone Trans Shipment#34Hidden Impact of Thailand's Kra Canal Existence of THE KRA CANAL bring a potential rapid growth for Kuala Tanjung Port as the biggest International hub port THAILAND Bangkok CAMBODIA GULF OF THAILAND VIETNAM ETNA SEA KRA CANAL SOUTH CHINA SEA Kuala Tanjung international hub is ready to tap overseas strategic partners MALACCA STRAIT Songkhla Satun Penang MALAYSIA PACIFIC OCEAN INDIAN OCEAN KUALA TANJUNG Kuala Lumpur MA New canal route SINGAPORE would shorten transit between the Indian and Pacific oceans by 1,200 kilometers. INDONESIA Masterplan of Kuala Tanjung Port INDONESIA 34#35Development Timeline Multipurpose 1 Terminal 2 (2015-2017) • Industrial Area 3000 Ha (2016-2018) • Multipurpose Terminal Project Spec CAPEX: 3.7 Trillion Rupiah Dimension 60 x 500 Mtr JETTY Length of Trestle 2,85 KM Lenght of Berth 1.000 Mtr (2x 500 Mtr) Bearing Capacity 3 Ton/M2 Water Depth -17 M. LWS BERTHS CAPACITY Liquid Bulk Carrier: max. DWT 50.000 Container Vessel: max. DWT 60.000 • YARD AREA Total Area ± 18 Ha Tank yard ± 4 ha Container yard ± 14 ha Bearing Capacity 6 - 8T/M2 MODALITIES: Excellent Rail, Road connection & Energy 4 3 Industrial Gateway Port Project Spec Dedicated Terminal . JETTY (Hub Port) (2017-2019) Integrated Urban Area (2021-2023) Dimensi: 60 x 300 Mtr Trestle : 825 Mtr Causeway: 1500 Mtr Jetties 600 Mtr (2x 300 Mtr) Capacity: 3 Ton/M2 Draft: -15 M. LWS JETTY CAPACITY Coal Carrier: max. DWT 60.000 Clinker Vessel: max. DWT 60.000 • • • AREA CAPACITY (100 Ha by 2017) Power plant :20 Ha Coal Storage: 20 Ha Cement factory: 7 Ha + 15 Ha Public area: 5 Ha Supporting Power: 6 - 8 T/M2 INFRASTRUCTURE: Railway, Trans Sumatera Highway 35#36NORTH SUMATRA GATEWAY REGION ACEH Dairi Langkat Karo Binjai 2 Medan 13 Serdang Bedagai Malacca Strait Deli Serdang 4 Tebing Tingg Simalungun Batubara 5 Asahan Trans-Sumatran Rail/Road Vegetable oil and rubber plantations 1 2 Medan Metropolitan Area Belawan Port 4 Kuala Tanjung Port 3 Kuala Namu Airport 5 Sei Mangkei Special Economic Zone Economic Growth Driver Kuala Tanjung, together with Sei Mangkei SEZ, Kuala Namu Airport, Belawan Port, and the new Trans Sumatra Highway are built to be the new growth drivers in the region. it is Highly connected. These National Strategic Projects will bring a new level of efficient logistic chain and fully integrated production base.#37Sei Mangkei Special Economic Zone To be a modern industrial city with high competitiveness and eco-friendly mindset, through optimal development of local natural resources. Legality Location Area Area Manager Administrator Investment amount Labor force Infrastructure and facilities Connectivity into and out of SEZ PP No. 29 Tahun 2012 Tentang KEK Sei Mangkei Simalungun Regency, North Sumatera 1,933.80 ha PT Perkebunan Nusantara III (PTPN III) Badan Pelayanan Perijinan Terpadu dan Penanaman Modal Kab. Simalungun • Infrastructure Rp. 5,14 trillion • Est. total investment by 2025: Rp. 129 trillion 83,304 people by 2031 Railroad, electricity, water treatment, palm oil R&D center, industrial gas available Highway, electricity, gas pipe, dedicated train connectivity direct to Kuala Tanjung sea port, Kualanamu airport#38Sei Mangkei Special Economic Zone SEZ Sei Mangkei is well-linked to strategic distances: ❖to Kuala Tanjung Seaport = 36 km to KNO Airport ܀ = 106 km ❖to Medan City = 125 km ❖to Belawan Seaport = 146 km Supported by both regional and local infrastructures that built connectivity from inside to outside of the estate. Inside the estate: Concrete Road, Electricity, Gas Pipe Line, IT Network, Water Treatment Plant, Electricity, Waste Water Treatment Plant, Tank Farm, Dryport connected by train directly to the port. Outside the estate: Railway track, Highway, Kuala Namu International Airport, Belawan Seaport and Kuala Tanjung Seaport. KEK SET MANGKE Linde#39Development Timeline Companies Investing in Sei Mangkei SEZ 1 Base Industrial Zone of 104 Ha (2010-2015) 2 3 Unilever PT UNILEVER OLEOCHEMICAL INDONESIA RealStrongⓇ AgriCulture Innovation Industrial Zone + Infrastructure add 640 Ha (2015-2020) ✓api PT. Alternative Protein Indonesia (a multinational consortium) PT. All Cosmos Indonesia Integrated Industrial Zone add 1.993 Ha (2020-2035) Aice PT PERKEBUNAN NUSANTARA III (PERSERO) PERTAMINA BGS PLTBg 39#40Investment Opportunity in Sei Mangkei SEZ Rubber Industry Zone ☐ Tyres Product (Inner & Outter tyres for bicycle, motorcycle, cars) ☐ Automotive Products (Dockfender, coveyor belt, rubber roller, bridge bearing, rail pad) ☐ Latex Goods (gloves, condom, rubber thread, balloon, foam) ☐ General Rubber Goods (carpets, footwear, sport apparels, household appliances) Various Industry Zone ☐ Textile Industry (yarn, fabrics, apparel) ☐ Electrical appliances & Metal Industries (fan, refrigerator, sewing machine, television, and radio) ☐ Chemical Industry (medicine, pharmacy) ☐ Food & Beverage Industry (flour, sugar, tea, coffee, salt, food packaging) ☐ Building materials and general industry (sawn timber, plywood, marble)#41Subsidy and incentives for SEZ Income Tax • ● Tax holiday for investment >Rp 500bn Tax allowance of 30% from NI Faster depreciation allowed No VAT for import ● No VAT for transactions with tenant in Sei Mangkei Dedicated wage council. One Labor Union allowed. Better regulation for expat workers Labor Visa on arrival for 5 visits ⚫ Immig Multiple visa for 1 year • Living permit to owners of property • ration FISCAL VAT Foreigner Property Right Tourism Sector NON FISCAL • . Foreigners can own property • Owner of property can get living permit Deduction between 50- 100% for construction and entertainment tax Rights to build permit Easier process for land • permit Land Regulation 3 hours licensing • be done ⚫ Licensing All licensing can be done • through SEZ administrator 41#4230.000.000 25.000.000 20.000.000 15.000.000 10.000.000 5.000.000 Medan City's LRT & BRT Scheme Total Gridlock Prediction by 2024 Tunney's Pasture Station Eastbou 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total car width 2015 2016 2017 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. 2018 2019 2020 2021 2022 2023 CC Transpo Total street width 2024 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 with 2,2 million people. a LRT illustration#43USA 12 MAJU HELVET WALMALL OLIMPYA JADOMUT AS 12 HAMPIN CAREFOUR BK-7633-DF 02188 TS PETISAN 14 CHAE AGAZ CHADAST M The Inadequacy of Current Mode Currently, the public car (pictured) is the most widely used public transport in Medan city. It's not only inadequate, but also messy since they don't have a station. The LRT & BRT scheme will not only help untangled predicted gridlock, but also become a reliable transportation mode for the city.#44Scheme : Public Private Partnership - Apx. Distance: 20 km (LRT) & 00000 14 km (BRT) Inv. Opportunity: IDR 20 tn (LRT) & IDR 1 tn (BRT) Concession Period: 35 years Payback Period: 16,47 years Project IRR (35 years): 14,7% *Latest feasibility study result 888 The Initial Blueprint for Medan LRT&BRT Halte BRT Koridor BRT Stasiun LRT Koridor LRT Direct Service ITDP, 2017 0 30 0 45 km#45POTENTIAL GEOTHERMAL POWER PLANT Location Current Condition Capacity CAPACITY 1370 MW Sarulla & Existing/Expansion 660 Sibual buali POTENTIAL Sibayak/Lau Existing/Expansion 160 Debuk- POWER PLANT debuk CAPACITY Aek Bilah River, HYDROELECTRIC 50 MW Batang Oru River, Tapanuli Utara 155 MW Aek Bilah River, Tapanuli Utara 40 MW Tapanuli Selatan 307 MW ◉ Sorik Marapi High Possibility 500 Lalu Biang, Sipoholon Low Possibility 50 Karo 46 MW Piasa, Asahan 16 MW Current electricity supply in Pangkalan Susu, 2300 MW. Future need in 2025, 5800 MW Energy investment potential: Asahan Hydro Power Plant III Sumbagut Power Plant II (250 MW) Batang Toru Hydro Power Plant (510 MW) Biomas Power Plan Solar Power Plant Potential Investment in renewable energy "#46BANDA ACEH Sigli Bireun Lhouksemawe Takengon NAD Langsa Stabat Belawan Kualanamu Binjai MEDAN Tebing Tinggi SUMUT P.Sia ar Sibolga Main Corridor Support Corridor Kisaran Rantau Prapat Total investment for 2.765km Rp476T Target in 2024 TEBING TINGGI - KISARAN (Trans Sumatera Toll Road 1st Phase) Dumal BATAM Duri Minas Bangkinang PEKANBARU Lubuksikaping RIAU Rengat Bukittinggi Sawahlunto PADANG Solok Commercial Corridor SUMBAR JAMBI Muaratebo Painan Murabungo 00 JAMBI BIMuarabulian Bangko Tanjung Appl Sarolangun Betung 0 Mukomuko SUMSEL PALEMBANG BENGKULU Indralaya Kayuagung Target operational in 2019: BENGKULU Bakaheuni-Terbanggi Besar ☐ Medan-Binjai Medan-Tebing Tinggi Terbanggi Besar-Kayu Agung LAMPUNG BANDAR LAMPUNG Feasibility Study by KOICA (Korea International Cooperation Agency), Route Selection Stage To support the development of Special Economic Zone Sei Mangke (KEK Sei Mangke), which is the main project for MP3EI Sumatera Corridor Pematang Panggang As a segment of Trans Sumatera Toll Road Project (Phase I) in North Sumatera Province Terbanggi Besar Metro Rakhani 46#47Medan City Zoo Expansion Medan Zoo is Gaining Visitors | Number of visitor 250.000 200.000 150.000 100.000 50.000 2007 2008 2009 2010 2011 As the capital of North Sumatra, Medan city develops economically. Its 2,2 million people need various of entertainment. One of them is Medan Zoo, which has become attraction for visitors. Expecting similar growth in the future, the Government offers investors to partner up and develop the zoo#48Modern Zoo Revamping the zoo by increasing the variety of the animal. 01 02 Theme Park Well who doesn't love a theme park? 03 會員 Botanical Garden Adding a touch of botanical x garden to further increase × the attractiveness X Our concept for the +30.000 m2 Investment Opportunity IDR 250 bn#49PRETETETE Medan Public Hospital Expansion HELDETER Public Private Partnership opportunity to expand the Dr. Pirngadi Public Hospital in Medan city. The project includes building the VIP wing in an area the V of ± 10.000 m2.#501 Blang Pidie 6 Man Pantai Muara Opu South Tapanuli Regency 2 Cinchona ang Orang Utan Batang Toru South Tapanuli Regency Gunungsitoli Pulau Nias Hinak 3 Teluk 5 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 Padang Tanjang AH2 6 Malay PAHANG Pekan Kuala Lumpur E26 Tangkahan Langkat Regency NEGERI SEMBILAN 5 Dumai Silahi Sabungan Dairi Regency Pekanbaru RIAU AH 18#51The Home of Turtles Muara Opu Beach With 14 km shore length, Muara Opu beach is home for thousands of turtles to breed once a year. And at that majestic moment, the experience is breath taking.#52The Oldest Orang Utan Batang Toru Forest Batang Toru forest is home to one of the oldest orang utan, the Pongo Tapanuliensis, which currently only 800 still exist#53The King Kong Island Mursala Island Due to its awesome scenery and authentic wilderness, Mursala Island is famous as the place for the shooting of King Kong movie (2005)#54"The Island" Poncan Island Imagine an island with a beautiful landscape, and a blue ocean. Where the water so clear you can see everything underneath. That's exactly what Poncan Island offers you. 54#55Blending In Silahi Sabungan Natural beauty, cultural experience and religious pilgrimage, Silahi Sabungan is a place like no other to find inner peace#56The Hidden Paradise Tangkahan Some calls it "the hidden paradise", Tangkahan is a nature wonder where you can play and have fun with the friendly elephant 56#57Lau Simeme Dam Deli Serdang The water could stream within the power up to 13 million m² dam water discharge, which could be used as hydroelectric power plant. This project is essentials, as it's the human being basic needs.#584 LICENSING IN INDONESIA#59LICENSING | Enhanced business licensing through OSS Improve efficient, streamlined, & integrated business license service standards Provide business licensing process assurance in terms of the costs and lead times Overcome the barriers to doing business in Indonesia Main Policy Policy Goals 1 2 Accelerate the business licensing process 3 4 6 5 Increase coordination & synergy between central & regional government Implement integrated licensing process (single submission) == 1st Phase Forming a Task Force to identify & overcome the end-to-end licensing barriers Implementing a licensing checklist for Special Economic Zones (KEK), Free Trade Zones (FTZ), Industrial Zones & Tourist Zones Utilizing data sharing + 2nd Phase Business license regulatory reforms Implementation of the Single Submission system Source: Coordinating Ministry for Economic Affairs Note: 1st and 2nd Phase are implemented in parallel#60LICENSING | Direct construction permit in industrial estates Priority Investment Service Direct Construction (KLIK) Investors can directly start their project construction before obtaining construction permits. This service is supported by both Central and Regional Governments which become the first step to synergize between central and local licensing No Requirements No minimum investments or workers is required. Available for 32 selected industrial estates. Construction permits can be obtained in parallel with construction process. 000 000 Obtain investment licence at OSS at national or regional level. • Source: Investment Coordinating Board (BKPM) Survey a land within selected industrial estates. តតតន្តីគ្លីត 000 000 000 0000000 00000 000 • • Acquire the land for your industry. wwwww Start the construction of your project. No other permits are required. Apply for building construction permit & environmental permit, in parallel with construction process.#61TW NARKOTT LO 5 KEY CONTACTS#62OUR TEAM |We are fully committed to help your investment B Bank Indonesia Rizki Rahmawati Investor Relation [email protected] +6287722887165 SUMATERA 1 Promotion and Licensing Division Government of North Sumatra Ninta Gandana Purbal Division Head [email protected] +628126005630 lake toba caldera of Kings Authority of Lake Tobal M. Rommy Fauzi Director of Tourism [email protected] [email protected] +6281808686886 Sei Mangkei SEZ PT. KINRA Aprial Syahputra Promotion & Marketing [email protected] +6281264468815 SUMATERA T BERCARIA MOLF GE AFRIC Planning and Development Body Government of North Sumatra Hasmirizal Lubis Division Head [email protected] +628126558330 Kuala Tanjung Port PT. Prima Pengembangan Kawasan Prima Pengembangan Said Joeanna Kawasan [email protected] +6281284347000 Busines Manager Saut F. Siagian Business Director [email protected] +6281298556132#63B BANK INDONESIA BANK SENTRAL REPUBLIK INDONESIA Let's be a partner