#1NORTH SUMATRA INVESTMENT BOOK Quarter 3 - 2019 edition A definitive guide on macroeconomic condition, data & information, key contacts, and potential investment projects in North Sumatra#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 20 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. ACHEL 03 Potential Projects & Tourism Potential Our handpicked potential projects for you, guaranteed by the government. In addition, We also specifically collect the potential tourism site in North Sumatra. Licensing in Indonesia 04 05 A quick guide on getting business license in Indonesia. It's never been easier to do business here. Key Contacts Who to contact if you want to invest and grow your business in North Sumatra?#41 INDONESIA'S STRONG PERFORMANCE#5Indonesia's Strong GDP Growth | % year-on year & % quarter-to-quarter 7.0 5.0 QoQ -YoY 5.12 5.17 5.18 5.05 4.94 4.93 4.82 4.74 4.77 4.92 5.01 4.94 5.01 5.01 5.06 5.19 5.06 5.27 5.17 5.18 5.07 5.05 3.74 4.01 4.01 3.19 4.21 3.09 4.20 Solid national economic growth The national economy expanded 5.05% (yoy) in the second quarter of 2019. The latest economic developments were influenced by increasing domestic demand against a declining external sector. Institutions 3.0 10 1.0 -1.0 -3.0 3.83 3.27 3.31 3.14 W 0.04 (2.07) (0.16) (1.73) (0.36) (0.30) (0.41) (1.81) (1.70) 2019 Growth (YoY) 2019 Budget 5.3 Bank Indonesia 5.0-5.4 IMF (WEO Oct 2019) 5.0 (0.52) (1.69) World Bank 5.2 ADB 5.2 2019 Consensus Forecast 5.0 (October 2019) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2014 2015 2016 2017 2018#6Our 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 | Index, The Higher The Better 20 40 40 60 60 80 60 100 120 140 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 91 72 73 73 160 -Indonesia India -Philippines -Bulgaria Colombia#7BBB BBB- Investment Grade BB+ Below Investment Grade BB BB- Investment grade approved! S&P JCRA Moody's Fitch Ratings Fitch 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 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." JCR 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."#8Billion USD 100 50 0 China India Indonesia Vietnam Singapore Thailand Japan Australia Malaysia Hong Kong Philippines South Korea Taiwan Myanmar 0 300 250 200 150 China (2) United States (1) Hong Kong, China (3) Singapore (5) Netherlands (7) United Kingdom (4) 10 Brazil (6) Australia (8) Spain (17) The Economist: Indonesia rounds out the top five of Asian economies that can look forward to increased investment spending. (January 2019) 1 Investors are flocking to Indonesia 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 70 Total Investment / GDP (%) 0 40 251 35 30 25 20 15 10 5 31.31 Indonesia Enjoys Large Investments Relative to Peers within the Region² UNCTAD: Indonesia is listed in the top 20 host economies based on FDI inflows, 2017 and 2018 (June 2019)3 JBIC: Among ASEAN countries, Indonesia is the most preferred place for business investment (November 2018)4 1. 22 Source: The Economist Asia Business Outlook Survey 2018 2. Source: IMF World Economic Outlook, Database April 2019 India (9) Canada (15) 31.27 31.78 34.47 34.52 34.55 23.61 22.48 23.14 26.94 27.21 29.56 24.99 India Indonesia Malaysia Philippines Thailand Vietnam 2018 2019 2020e 24.95 52.2 46.2 China India Thailand 37.1 33.9 ■2018 ■2017 Vietnam Indonesia 30.4 28.8 US 13.7 Mexico (x) 2017 ranking 10.0 Philippines 8.6 Myanmar 8.4 Malaysia France (13) Mexico (12) Germany (11) Italy (16) Indonesia (18) Israel (19) Viet Nam (21) Korea, Republic of (20) Russian Federation (14) Germany 5.8 Brazil 5.6 Korea 5.1 Taiwan 4.4 % of surveyed who consider each country has promising prospects Russia 3.7 20.0 30.0 40.0 50.0 60.0 10.0 0.0 3. Source: United Nations Conference on Trade and Development (UNCTAD) - World Investment Report 2019 4. Source: JBIC Outlook for Japanese Foreign Direct Investment (30th Annual Survey) 25.31 26.57 26.34 26.26#92 WHY NORTH SUMATRA?#10PROFILE UMATERA U UTARA Governor Vice Governor Capital City Regencies/Cities GRDP 2018 %share to national 5% Top 7 biggest province by economic comparison EXPORT %share to national 4.49% - Jan Sep 2019 INFLATION %yoy 2.84% Oktober 2019 Source: Central Bureau of Statistics, 2019 : Edy Rahmayadi : Musa Rajecksah : Medan City : 25 Regencies and 8 Cities HDI 2018 71.18% Categorized as high POPULATION 2018 14.42m The 4th most populous Province in Indonesia A MILLENIAL PROVINCE Half of North Sumatra population is under 25 years old. North Sumatra Province is geographically positioned between 1° -4° North and 98° - 100° East. 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. ROOM FOR NEW BUSINESS With 71% employment rate, North Sumatra will support new business with adequate human resources#11Vigorous Economic Growth In third Quarter of 2019, North Sumatra economic growth slightly declined to 5.11 % (yoy). However North Sumatra economic growth was still stronger than Sumatra and Indonesia. North Sumatra growth was supported by strong household consumption. EXPENDITURE m $ Household Consumption (51%) Government Consumption (8%) Investment (31%) Export (40%) Import (32%) 4.41 Q2'19 4.92 18.50 Q3'19 Q2'19 11.39 6.76 Q3'19 Q2'19 6.26 -3.52 Q3'19 Q2'19 -4.03 -3.56 -4.33 Q3'19 Q2'19 Q3'19 Note: amounts in parentheses indicate sectors distributions of GRDP at constant market price in the third quarter of 2019 Economic Growth of All Provinces in Sumatra National, Sumatra, and North Sumatra Economic Growth (%,yoy) 5.80 Aceh (5%) 3.76% North Sumatra (23%) 5.11% Riau (22%) 2.74% 5.60 Kep. Riau (8%) 4.89% 5.40 5.25 5.11 5.20 5.00 Jambi (6%) 4.80 West Sumatra (7%) 4.31% 4.60 4.40 5.05 5.02 4.49 4.62 5.16% Bangka Belitung (2%) Bengkulu (2%) 4.20 3,05% 4.95% 4.00 South Sumatra (14%) Lampung (11%) 5.16% 5.67% IV 2016 | IV | 2017 2018 National Sumatra North Sumatra || 2019#12Rp. Triliun Growing Investment Realization INVESTMENT REALIZATION BY LOCATION AND SECTOR 2019 TARGET FDI/DDI: Rp. 33,91 T INVESTMENT REALIZATION (JAN - SEP 2019) FDI/DDI: Rp. 18,78 T 1,348.97 DEVELOPMENT OF INVESTMENT REALIZATION 8,000 7,000 6,000 5,000 4,000 (JAN - SEP 2019) TOP 5 SECTORS BASED ON FDI VALUE TOP 5 LOCATIONS BASED ON FDI VALUE 909.67 Deli Serdang 308.89 IDR Billion IDR Billion Toba Samosir 317.03 587.69 Mandailing Natal 499.31 351.02 345.97 Services Electricity, Gas and Water Food Industries Mining Chemical Industries 4,256.26 TOP 5 SECTORS BASED ON DDI VALUE A Batu Bara 518.73 Medan TOP 5 LOCATIONS BASED ON DDI VALUE Asahan 3,000 2,000 1,000 IDR Billion Deli Serdang 0 TWI TW II TW III TW IV TWI TW II TW III 2018 2019 PMDN 2,122 ■PMA 1,618 3,095 1,537 4,356 3,259 3,607 4,176 5,408 1,197 4,325 5,608 1,926.04 1,854.99 1,691.47 Labuhan Batu II 950.18 Batu Bara TOTAL 5,381 5,225 7,271 6,945 5,553 1,597 1,696 5,922 7,304 Transportation, Plantation Food Industries Construction Other Services Medan Storage, and Telecommunication 853.12 1,918.76 IDR Billion 1,843.91 1,871.25 2,594.81 3,490.64 Source: Promotion and Licensing Division Government of North Sumatra#13Supplying 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.#14Progressively Equipped Infrastructures 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 International Airport - Gunung Sitoli Kualanamu International Airport - Deli Serdang Soewondo Air Force Base - Medan Aek Godang Airport - Padang Sidempuan Ferdinand Lumban Tobing Airport - Sibolga Sibisa Airport - Simalungun Siangit International Airport - Siborong-Borong Existing and Planned Toll Roads in North Sumatra Langsa JALAN TOL EKSISTING DAN RENCANA DI PROVINSI SUMATERA UTARA Tol T. Tinggi - Kisaran (68,9 Km) Trans Sumatra Highway A grand scale project to bring fluid connectivity among provinces in Sumatra island. Everything will be more connected, not less. Belawan KNIA Binjai 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 Kuala Tanjung - T. Tinggi Parapat (143,25 Km)- Parapat Tarutung Rantau Prapat Tol Parapat - Tarutung - Sibolga Tol Medan-Kualanamu-Tebing Tinggi Seksi 2 hingga 6 sepanjang 41,6 km 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 Train Sribilah (Medan → Rantau Prapat) Putri Deli (Medan → Tanjung Balai ) Siantar Ekspres ( Medan Pematang Siantar ) Airport Railink (Medan Kualanamu) Sri Lelawangsa ( Medan → Binjai ) Sibolga Tol Medan - KNIA - Lubuk Pakam - T. Tinggi (62 km) Selesai 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 BAPPEDA PROV. SUMUT Palembang Indralaya Bengkulu Terbanggi Besar Bakauheni#15S 3 POTENTIAL PROJECTS AND TOURISM POTENTIAL#16Pangkalan . 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 NORTH SUMATRA SPECIAL ECONOMIC ZONE SEI MANGKEI Mala Kuala Lumpur PUTRAJAYA 1203 NEG SEMBILAN 117 Mersi Segamat District Taman Negara Johor Endau Rompin 19 MALACCA Kluang Muar 23/Yong Batu Pahat Pulau Bengkalis Pulau Pedang Pulbu Rangsang Pulsu Tebingtingg Location Investment Value Total Area / Land Status Mode of Offer Project Owner Main Activities Singa Project Status Simalungun INVESTMENT PROJECT Infrastructure: Rp. 5,1 Trilyun Investor/Tenant Rp. 129 Trilyun 1933,80 Ha/Rights to Manage and Build (HPL) Financing and Investment PTPN III 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). Pob Dicksons To Singapore, Jakarta, and the Pacific. Pulau Rupat Dumai Project Description 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: ✓ 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'S OWNER PROFILE: PT Perkebunan Nusantara III (Persero) makes oil and palm kernel as the main commodities that make a major contribution to the company's revenue. The oil and palm kernel products produced by the company are well known in the local and international markets such as Crude Palm Oil (CPO), Palm Kernel Oil (PKO), Palm Kernel (PK) and Palm Kernel Meal (PKM). PT. PERKEBUNAN NUSANTARA III is in charge to develop and manage SEZ Sei Mangkei. Contact Person: Yenni Fransiska Simangunsong (Marketing Officer) Mobile: +6281264992088 Email: [email protected] Widoyoko (Operational Manager) Mobile: +628126227061 Email: [email protected]#17NORTH SUMATRA KUALA TANJUNG INDUSTRIAL AREA Location Investment Value Total Area / Land Status Mode of Offer Project Owner Main Activities Batubara INVESTMENT PROJECT Rp. 28.87 Trilyun ±3458.85 Ha Financing and Investment PT Pelindo | Processing Industries Project Description Project Status 1) Land Acquisition is on progress 2) Existing Industries: Inalum (Aluminium & Derivative Industry), PT Wilmar (CPO), PT Bakrie (CPO). . Kuala Tanjung Industrial Zone 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 is in charge to develop and manage Kuala Tanjung Industrial Zone. Contact Person: Asih Kurnia (Stakeholder Manager) Mobile: +6281585671500 Email: [email protected] © 2018 by Indonesia Investment Coordinating Board. All rights reserved#18********** NORTH SUMATRA KUALA TANJUNG PORT Location Investment Value Total Area / Land Status Mode of Offer Project Owner Main Activities Project Status Batubara INVESTMENT PROJECT Rp.18.4 Trilyun ±3000 ha Financing and Investment PT Pelindo I Self Generating Cargo Port Scopes and Stages of Development : - Kuala Tanjung Multipurpose Terminal (2015-2017) - Kuala Tanjung Industrial Area (2015-2017) - Container Terminal (2017-2019) - Integrated Urban Area (2018-2020) Project Description Supporting: highway and train railway Multipurpose Terminal. ■ Program Benefits: The addition of the container capacity of 400 thousand TEUS and 3.5 million tonnes of liquid bulk. 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 is in charge to develop and manage Kuala Tanjung Industrial Zone. Contact Person: Asih Kurnia (Stakeholder Manager) Mobile: +6281585671500 Email: [email protected] © 2018 by Indonesia Investment Coordinating Board. All rights reserved#19Legenda 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 NORTH SUMATRA SIBISA INTEGRATED RESORT - LAKE TOBA Project Description Business Overview & Objectives: 500 1000 m 100 ha 10 ha 1 ha 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. Location Land Sectors Utilities & Infrastructure Investment Value Business's Scheme • Project Status OPPORTUNITIES 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 6. Cultural Center 1.35 Ha 7. Supporting Facilities 2.06 Ha 8. Healthcare 1.66 Ha 9. 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 Rp 1,8 Trillion (Excluding PPN) • Long lease Agreement (30 to 80 years) Other Agreeable Cooperation Form Managed by Lake Toba Tourism Authority 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#20Tunney's Pasture Station Transpo NORTH SUMATRA LRT & BRT Location 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. Apx. Distance Sectors OPPORTUNITIES Medan City 20 km (LRT) & 14 km (BRT) Transportation Government Support • Utilities & Infrastructure • Fiscal / non-fiscal support from Regional and Central Government LRT System Infrastructure Construction Support from the Central Government • Government Guarantee Estimated Capex IDR 12.5 tn (LRT) IDR 1 tn (BRT) Business's Scheme Public Private Partnership Project Status Managed by Mayor of Medan City#21RSUD Dr. Pirngadi NORTH SUMATRA dr PIRNGADI HOSPITAL Project Description The Project is expected to improve the quality of medical services to the people of Medan City and its surrounding areas as well as to become the Medan City Oncology Center Location Medan City Land ± 38.300 m2 Sectors Health Care Government Support Utilities & Infrastructure OPPORTUNITIES • Government Supports from Ministry of Health, Ministry of Finance, and Ministry of Public Works and Public Housing* • Government Guarantee Estimated Capex IDR 650 bn to IDR 750 bn (including VAT) * Business's Scheme Public Private Partnership Project Status Managed by Mayor of Medan City * Still indicative. Further details can refer to the tender document at the next stage.#22NORTH SUMATRA MEDAN CITY ZOO Location Land Sectors Project Description 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. Utilities & Infrastructure Inv. Opportunity INVESTMENT POTENTIAL Medan City ± 300.000 m2 Tourism IDR 250 bn . Modern Zoo: Revamping the zoo by increasing the variety of the animal. Theme Park • Concept • Botanical Garden :Adding a touch of botanical garden to further increase the attractiveness#23Aek Bilah River, Tapanuli Selatan 50 MW Batang Oru River, Tapanuli Utara 155 MW Aek Bilah River, Tapanuli Utara 40 MW Lalu Biang, Karo 46 MW Piasa, Asahan 16 MW POTENTIAL GEOTHERMAL POWER PLANT Location CAPACITY Current Condition Capacity 1370 MW Sarulla & Existing/Expansion 660 Sibual buali ■ Sibayak/Lau Existing/Expansion 160 POTENTIAL Debuk- HYDROELECTRIC debuk Sorik Marapi Marani High Pos ◉ Sipoholon POWER PLANT CAPACITY 307 MW High Possibility 500 Low Possibility 50 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 000#24Subsidy and incentives for SEZ • F S C A L • Income Tax Tax holiday for investment >Rp 500bn • Tax allowance of 30% from NI • Faster depreciation allowed VAT No VAT for import No VAT for transactions with tenant in Sei Mangkei Foreigner Property Right Foreigners can own property Owner of property can get living permit Tourism Sector Deduction between 50-100% for construction and entertainment tax Labor Dedicated wage council One Labor Union allowed Better regulation for expat workers Immigration Visa on arrival for 5 visits Multiple visa for 1 year Living permit to owners of property Land Regulation Rights to build permit Easier process for land permit Licensing 3 hours licensing All licensing can be done through SEZ administrator NON F - S C A L#251 Blang Pidie Man 6 Pantai Muara Opu South Tapanuli Regency 2 Cinchona bang 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 CT Padang Tanjang AH2 6 Mapa Kuala Lumpur E26 Ο Tangkahan Langkat Regency NEGERI SEMBILAN 5 Dumai Silahi Sabungan Dairi Regency Pekanbaru RIAU PAHANG Pekan AF 18#26The 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.#27The 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#28The 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)#29"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. 29#30Blending In Silahi Sabungan Natural beauty, cultural experience and religious pilgrimage, Silahi Sabungan is a place like no other to find inner peace#31The 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 31#324 LICENSING IN INDONESIA#33LICENSING | Enhanced business licensing through OSS Main Policy Policy Goals 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 1 2 Accelerate the business licensing process 3 = 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 Source: Coordinating Ministry for Economic Affairs 4 6 5 Increase coordination & synergy between central & regional government Implement integrated licensing process (single submission) 2nd Phase Business license regulatory reforms Implementation of the Single Submission system Note: 1st and 2nd Phase are implemented in parallel#34LICENSING | 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. 0000000 00000 000 000 តតតន្តីគ្លីត • • 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.#35TW MARRIOTT 5 KEY CONTACTS#36OUR 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 Ninta Gandana Purba Division Head [email protected] +628126005630 SUMATERA ETA AFRIC Planning and Development Body Government of North Sumatra Hasmirizal Lubis Division Head [email protected] +628126558330 laketoba caldera of Kings Authority of Lake Toba M. Rommy Fauzi Director of Tourism [email protected] [email protected] +6281808686886 Sei Mangkei SEZ PT. KINRA Aprial Syahputra Promotion & Marketing [email protected] +6281264468815 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