Aceh Investment Profile 2015

ACEH INVESTMENT PROFILE

ACEH INVESTMENT COORDINATING BOARD2015

dr. Zaini Abdullah GOVERNOR OF ACEHo

2 } Aceh Investment Coordinating Board

dr. Zaini Abdullah GOVERNOR OF ACEH

Aceh is your investment destination. There are four key strengths that make Aceh very promising: (1) friendly investment laws, (2) strategic geographical location, (3) abundant natural resources, and (4) human capital.

Friendly investment laws are related to our status as a special province with autonomy in Indonesia. We have a wider authority to govern ourselves than other provinces in Indonesia. We also have privileges that allow us to make direct agreements with foreign institutions.

We consider investment as one of the key instruments to enhance the economic development in Aceh with the focus on three potential sectors: (1) agro industry, (2) energy and infrastructure

and (3) tourism. We already have excellent foundations in these strategic sectors. Coffee, patchouli, cocoa, palm oil, coconut are just a short list. Moreover, fisheries also have potential to have high for investment opportunities in Aceh.

To accelerate investment in the region as well as to improve the investment climate, we are working on some important issues to resolve, such as de-regulation at licensing acceleration, security and better infrastructure. Hence, the new Aceh will be perfect for your future investment.

Last but not least, we welcome you to visit us and invest in amazing Aceh.

FOREWORD BY GOVERNOR OF ACEH

Aceh Investment Profile { 3

We are happy to inform you that investment in Aceh increased greatly in recent years and is now in the eight rank in Indonesia for domestic investment about US $ 561,491,578 in 2014, whilst foreign direct investment was $31,541,856.

Our vision is to be one of the leading investment destinations in Indonesia, we will make sure that investors and potential investors get the best service and full assistance where ever needed.

The three main sectors that we offer to our investors are agroindustry, energy and infrastructure and tourism. In line with the sea toll road

maritime program initiated by the President of the Republic of Indonesia, Jokowi, Aceh has been continuing to optimize its sea connectivity and improve its infrastructure build-up. One of our priorities is to increase exports and imports activities via ports in Aceh particularly Krueng Geukuh and Sabang Port. Hence, we welcome you to invest in developing and exploiting our maritime potential.

We thank you all for your continuous support to Aceh and to trust Aceh as your favorite investment destination.

FOREWORD BY CHAIRMAN OF ACEH INVESTMENT COORDINATING BOARD

Ir. Iskandar, M.ScChairman of Aceh InvestmentCoordinating Board


Ir. Iskandar, M.ScChairman of

Aceh InvestmentCoordinating Board

o Aceh Investment Profile { 5

ContentFOREWORD BY GOVERNOR OF ACEHFOREWORD BY HEAD OF ACEH INVESTMENT COORDINATION BOARD 1. INTRODUCTION ~ 3

1.1 VISION AND MISSION ~ 101.2 ACEH AT A GLANCE ~ 12

1.2.1 AREA ~ 161.2.2 ADMINISTRATIVE REGIONS ~ 181.2.3 POPULATION ~ 201.2.4 MAN POWER/LABOR FORCE ~ 22

2. SPATIAL PLANNING ~ 25

3. INFRASTRUCTURE SUPPORT ~ 283.1 ROADS ~ 303.2 SEA PORTS ~ 323.3 AIRPORTS ~ 343.4 ENERGY ~ 363.5 WATER ~ 38

4. ECONOMIC PERFORMANCE ~ 41

5. EASES OF DOING BUSINESS IN ACEH ~ 48

6. DETAILED PLANS FOR AGRO INDUSTRIES ~ 556.1 DETAILED PLANS FOR AGROINDUSTRY

6.1.1 DETAILED PLANS FOR FOOD CROPS ~ 586.1.2 DETAILED PLANS FOR HORTICULTURE ~ 68

6.2. DETAILED PLANS FOR PLANTATION AND CROPS ~ 746.2.1. PALM OIL ~ 766.2.2. RUBBER ~ 866.2.3. CACAO ~ 886.2.4. COFFEE ~ 906.2.5. COCONUT ~ 94

6.3 DETAILED PLANS FOR ESSENTIAL OIL PRODUCTION ~ 986.3.1. PATCHOULI ~ 1006.3.2. NUTMEG ~ 1046.3.3. CITRONELLA ~ 106

6.4. DETAILED PLAN OF ACEH BEEF INDUSTRY DEVELOPMENT PROJECT ~ 108 6.4.1. ACEH BESAR BEEF INDUSTRY DEVELOPMENT PROJECT ~ 1106.4.2. PIDIE BEEF INDUSTRY DEVELOPMENT PROJECT ~ 1126.4.3. BENER MERIAH BEEF INDUSTRY DEVELOPMENT PROJECT ~ 1146.3.4. ACEH TENGAH BEEF INDUSTRY DEVELOPMENT PROJECT ~ 1166.3.5. NAGAN RAYA BEEF INDUSTRY DEVELOPMENT PROJECT ~ 118

6.5. DETAILED PLANS FOR FISHERIES ~ 1206.5.1. LAMPULO INTERNATIONAL FISHING PORT ~ 1226.5.2. IDI FISHING PORT ~ 1246.5.3. SAWANG BAU FISHING PORT IN SOUTH ACEH ~ 1266.5.4. PEUDADA FISHING PORT IN BIREUEN ~ 1286.5.5. SIMEULUE AQUACULTURE PROJECT ~ 1306.5.6. SIMEULUE FISHING PORT ~ 1326.5.7 SIMEULUE SEAWEED CULTURE PROJECT ~ 134

7. DETAILED PLANS FOR INFRASTRUCTURE AND ENERGY ~ 1377.1 DETAILED PLANS FOR INSFRASTRUCTURE ~ 138

7.1.1. BANDA ACEH URBAN RAILWAY ~ 1407.1.2. KRUENG GEUKUEH SEAPORT PROJECT ~ 1427.1.3. KUALA LANGSA SEAPORT PROJECT ~ 144

7.2 DETAILED PLANS FOR ENERGY ~ 1467.2.1 ELECTRICITY IN ACEH ~ 1487.2.2 GEOTHERMAL PROJECTS ~ 1547.2.3 HYDRO POWER PROJECTS ~ 156

8. DETAILED PLANS FOR TOURISM DEVELOPMENT ~ 1608.1 BANDA ACEH TOURISM DEVELOPMENT PROJECT ~ 162

8.1.1 KRUENG ACEH RIVER WALK ~ 1648.1.2 ULEE LHEUE BEACH ~ 1668.1.3 BANDA ACEH MADANI EDUCATION CENTER ~ 168

8.2 SIMEULUE MARINE AND TOURISM DEVELOPMENT ~ 1708.2.1 DIVING CENTERS ~ 1728.2.2 SURFING CENTERS ~ 174

9. SABANG FREE PORT AND FREE TRADE ZONE COMPLEX~ 1779.1 SABANG INTERNATIONAL WATER FRONT ~ 1789.2 PASSENGER CRUISE TERMINAL ~ 1809.3 YACHT MARINA & SUPPORTING FACILITIES ~ 1829.4 DIVING CENTRES ~ 1849.5 SEAPORT 1869.6 INDUSTRIAL AND TRADING SECTOR ~ 1889.7 BALOHAN INDUSTRIAL PARK ~ 1909.8 FISHERIES SECTOR ~ 192

10 DETAILED PLANS FOR INDUSTRIAL ESTATES ~ 19410.1 ACEH INDUSTRIAL ESTATE AT LADONG, ACEH BESAR ~ 19610.2 LHOKSEUMAWE INDUSTRIAL ESTATE ~ 198

NEGATIVE INVESTMENT LAW & REGULATIONS~ 200

The Aceh Investment Coordinating Board is the primary coordination body for the promotion and facilitation of investments in Aceh, Indonesia. It is responsible for providing a full range of support and services to investors wanting to establish or expand businesses, including preparing macro investment planning, identifying and promoting local potential, providing full assistance with permits and licensing, assisting and monitoring the existing investments, as well as assisting coordination and partnerships with all related agencies and with all districts/cities across the province to provide the best possible service for all investors.


Photo: Aceh Tsunami Museum

Introduction

1


Vision and Mission1.1

Aceh becomes the leading investment destination in

Indonesia

Provision of efficient, effective, transparent, and accountable services toward businesses and the wider community.

Providing a wide range of data and information for investors.

Assistance in providing licensing and permits for both domestic and foreign investors.

Conducting effective promotional activities to attract both domestic and foreign investors.

Establishing investment partnerships either with domestic or foreign investors.

Promoting partnerships between small-scale businesses and cooperatives and large-scale businesses.

Continuous liaison with investors in their operations with an ultimate aim of improving the investment environment and the ease of doing business.

The Boards main objective is to increase the number and value of Investments in Aceh Province.

While the specific targets are:


In line with the vision, the followings are missions to be accomplished.

Improving human resources in investment.

Implementing integrated planning and control of investment amongst central government, provincial government, local governments and private sectors.

Promoting Acehs new brand image as a leading investment destination.

Providing support and services to investors wanting to establish or expand business.

Photo: Sultan Iskandar Muda International Airport


Aceh at a Glance1.2

MALAYSIAACEH

THAILAND

Phuket

Banda Aceh

Andaman Sea

Malacca Strait

North Sumatera Province

Indian Ocean

N

100km


MALAYSIA

SINGAPORE

Kuala Lumpur

Aceh Province is located between 0105837, 2 - 0600433, 6 North Latitude and 9405757, 6 - 9801713, 2 East Longitude with average altitude of 125 meters a.s l with an

extensive highland area above 1,000 m a.s.l.

It has 119 islands, 35 mountains, including several volcanoes,

73 rivers, and 1 large crater lake.


ACEH, THE WEST GATE OF INDONESIA


ACEH


sArea1.2.1

Area of the Aceh Province is 5,677,081 ha; with over 2,270,080 ha of forests and around 800,401 ha of plantations while the industrial area is 3,928 ha.

Topographically hilly with mountains, valleys, rivers, waterfalls, and narrow floodplain.

The total area of the territorial sea which extends to two hundred nautical miles measured from the coastline.

5,677,081 haTotal Area

2,270,080 ha

800,401 ha

3,928 ha.

Forest

Plantation

Industrial Area100km

N16 } Aceh Investment Coordinating Board

sLand Use

i

2.21%125,439 haSettlements

17.63%1,001,081 haPlantations

3.49%198,000 haMining

39.99%2,270,080 haForests

0.07%3,928 haIndustry

4.09%232,023 haPasture

7.00%397,512 haRice fields

3.64%206,741 haInland water

2.45%139,049 haDry land farming

0.15%8,433 haCleared Land

13.90%789,171 haOthers

5.38%305,624 haHorticulture

Total Area 5,677,081 ha

Source: Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 2014


Administrative Region1.2.2Aceh province has undergone several administrative regional divisions and to date consists of 18 districts and 5 cities. In accordance with Aceh Qanun (law) No. 4 of 2003, Aceh Province has 289 subdistricts, 761 mukims (traditional divisions) and 6.464 villages.

Subdistrict Mukim Village

12 32 322

23 68 604

23 94 727

17 75 609

27 67 852

9 20 132


10 29 138

11 16 116

18 43 260

16 51 385

24 53 511

14 18 295

Simeulue West Aceh

Aceh Besar

Pidie

Bireuen

North Aceh

Southwest Aceh

Aceh Singkil

South Aceh

Southeast Aceh

East Aceh

Aceh Tengah


2013 289 761 6,464

2012 289 778 6.493

2011 284 755 6.450


9 17 90

2 7 18

5 6 66

4 9 68

5 8 74


11 25 136

12 27 213

10 30 222

9 21 172

10 11 232

8 34 222

Gayo Lues Banda Aceh

Aceh Tamiang Sabang

Nagan Raya Langsa

Aceh Jaya Lhokseumawe

Bener Meriah Subulussalam

Source : Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 2014

Pidie Jaya

Aceh province consists of 18 districts5 cities289 subdistricts, 761 mukims , and 6.464 villages.

Population1.2.3

The population of Aceh in 2014 was estimated to be 5,437,120 people, consisting of 2,745,085 males and 2,692,035 females.

2,745,085Males 5,437,120

People2,692,035Females


District/City Male Female TotalSimeulue 46.741 44.270 91.011Aceh Singkil 69.350 67.140 136.490South Aceh 120.859 120.124 240.983Southeast Aceh 113.797 113.254 227.051East Aceh 222.902 218.414 441.316Aceh Tengah 114.153 110.714 224.867West Aceh 112.547 106.822 219.369Aceh Besar 208.877 197.952 406.829Pidie 224.700 226.365 451.065Bireuen 226.077 230.438 456.515North Aceh 314.838 314.942 629.780Southwest Aceh 77.263 75.529 152.792Gayo Lues 50.809 50.854 101.663Aceh Tamiang 15.594 147.416 300.010Nagan Raya 83.938 82.181 166.119Aceh Jaya 45.097 42.682 87.779Bener Meriah 82.373 79.031 161.404Pidie Jaya 78.762 79.844 158.606Banda Aceh 133.133 124.450 257.583Sabang 20.722 19.553 40.275Langsa 100.482 97.444 197.926Lhokseumawe 101.438 100.338 201.776Subulussalam 43.633 42.278 85.911

2014 2.745.085 2.692.035 5.437.1202013 2.397.200 2.394.700 4.791.9002012 2.347.000 2.346.900 4.693.900

Source : Registration and Population Bureau of Aceh

POPULATION NUMBERS BY SEX, 2012-2014

Photo: Banda Aceh Traffic


Man Power/Labor Force1.2.4

1,926,173Labor force

141,067 Job seekers

The government of Aceh provides 20% of its annual budget for human capital, so they can be your partnerts in business



District/City Labor Force Job SeekersSimeulue 32.068 10.360Aceh Singkil 39.921 41.031South Aceh 92.015 17.252Southeast Aceh 75.211 8.634East Aceh 163.282 618Aceh Tengah 91.607 10.143West Aceh 78.889 10.153Aceh Besar 152.389 3.019Pidie 183.512 3.615Bireuen 181.580 1.406North Aceh 236.109 1.936Southwest Aceh 54.851 5.258Gayo Lues 41.321 3.938Aceh Tamiang 105.841 1.451Nagan Raya 62.816 5.824Aceh Jaya 34.938 2.200Bener Meriah 67.055 477Pidie Jaya 60.147 1.540Banda Aceh - 6.744Sabang 13.020 3.367Langsa 61.781 879Lhokseumawe 70.733 639Subulussalam 27.087 583

2013 1.926.173 141.0672012 1.978.491 130.383

2011 2.001.259 133.859

LABOR FORCE BY DISTRICT/CITY, 2011-2013

Photo: Mifa Private Jetti, Meulaboh


Spatial Planning

2

Photo: Protected Forest, Sabang

Cultivated and Living AreaThose areas include production forests, community forests, agricultural lands, lands for fisheries, mining, industry, tourism, housing and other living functions.

Strategic Areas:1. The Center of National Strategic Activities (PKSN) : Sabang, free port and free trade area.2. National Activity Center : Lhokseumawe and greater area (PKN)3. Provincial Capital City, Banda Aceh

2,934,602 Ha Protected Areas and Conservation AreasThose areas include the following local protected areas, reserved and cultural heritage areas, national disaster-prone areas, areas for geology protection, and other provincial preservation areas.

2,708,550 Ha

Photo: Banda Aceh from Sky

Spatial Planning1.2


Cultivated Area

Protected Area

Conservation Area

Sabang

Banda Aceh

Lhokseumawe

Langsa

Takengon

Meulaboh


Infrastructure Support

3

Photo: Nagan Raya Steam Power Plant

Roads3.1

Photo: Banda Aceh - Calang Highway


NBanda Aceh

Andaman Sea

Malacca Strait

North Sumatera Province

Indian Ocean

N

100km

National Road1.803,36 Km

Regencial Road13.841,07 Km

Provincial Road1.813,33 Km


Sea Ports3.1

Photo: Malahayati Sea Port


NBanda Aceh

Balohan-Sabang

Malahayati - Aceh Besar

Krueng Geukuh - North Aceh

Calang

Meulaboh

Susoh

South Aceh

Sinabang

Singkil

Kuala Langsa

Andaman SeaMalacca Strait

North Sumatera Province Indian Ocean

N

100km Aceh Investment Profile { 33

Airports3.3

Photo: Sultan Iskandar Muda International Airport


NBanda Aceh

Maimun Saleh Sabang

International AirportSultan Iskandar Muda

MalikussalehNorth Aceh

Cut Nyak DhienNagan Raya

Kuala BateeSouthwest Aceh

Lasikin Sinabang

T. Cut Ali South Aceh

Hamzah Fanshuri Singkil

Kuala Langsa



N


Energy3.4

CapacityTariff/KWH

IDR USD1,300 VA 1.352,00 0,11

2,200 VA 1.352,00 0,11

3,500 VA - 5,500 VA 1.496,05 0,12

6,600 VA above 1.496,05 0,12

6,600 VA - 200 KVA 1.496,05 0,12

More than 200 KVA 1.159,30 0,10

30,000 KVA 1.011,99 0,08

1 USD = IDR 12.000

Aceh-North Sumatra Interconnection

343 MW

Nagan Raya Steam Power Plant

2x110 MW

PLTG Arun Lhokseumawe200 MW

Peusangan Hydro Power Plant

88MW


NBanda Aceh PLTG ArunLhokseumawePeusangan Hydro Power

Nagan RayaSteam Power



N

100km

Aceh North SumatraInterconnection


Water3.5

DISTRICT/CITY WATER SUPPLY COMPANY

Simeulue PDAM Tirta Fulawan

Aceh Singkil PDAM Tirta Singkil

South Aceh PDAM Tirta Naga Tapaktuan

Southeast Aceh PDAM Tirta Agara Kutacane

East Aceh PDAM Tirta Peusada

Aceh Tengah PDAM Tirta Tawar

West Aceh PDAM Tirta Meulaboh

Aceh Besar PDAM Tirta Mon Tala

Pidie PDAM Tirta Mon Krueng Baro

Bireuen PDAM Tirta Krueng Peusangan

North Aceh PDAM Tirta Mon Pase

Southwest Aceh PDAM Tirta

Gayo Lues PDAM Tirta Sejuk

Aceh Tamiang PDAM Tirta Tamiang

Aceh Jaya BLUD SPAM Tirta Mon Mata

Bener Meriah PDAM Tirta Beungi

Pidie Jaya PDAM Tirta Krueng Meureudu

Banda Aceh PDAM Tirta Daroy

Sabang PDAM Tirta Aneuk Laot

Langsa PDAM Tirta Keumeuneng

Lhokseumawe PDAM Ie Sare Beurata

Source : Aceh Development Profile, Aceh Central Bureau of Statistic (BPS) 201438 } Aceh Investment Coordinating Board

NBanda Aceh



N


Economic Performance

4

Photo: Indonesian Bank Building, Aceh

Economic Performance

Economic Growth 2009 2010 2011 2012 2013 2014

5,51% 2,74% 4,84% 5,14% 4,18% 4,82%

Photo: Peusangan hydropowerplant project


Inflation (%)

2009 2010 2011 2012 2013 2014

3,72

8,36

5,86 5,78

3,44

Minimum Wage

2009

2010

2011

2012

2013

2014

100 108 113 117 129 146

Rate USD 1 = IRD 12,000

Exports (ton) Imports (ton)

2,672,528.43 4,252.67

494,680.53

55.22

6,274.39

5,544.03

2,149,740.41

1,288,051.43

1,332,024.22

451,918.48


FACTS AND FIGURES

The Big 5 Foreign Direct Investment Countries of Origin, 2014

Canada718,015.73

US$

United Kingdom

610,000.00US$

INVESTMENT REALIZATIONForeign Direct Investment in US$

2009 2010 2011 2012 2013 2014

3955,085,052

40,783,226

26,133,215

165,101,527

31,541,856


Malaysia1,649,786.78

US$Other

Countries1.380.952,38

US$

France539,244.52

US$

INVESTMENT REALIZATIONDomestic Investment in US$

2009 2010 2011 2012 2013 2014

8,565,728 4,407,581

13,127,198

111,183,310

382,330,821

561,491,578


Southeast Aceh

1,333,333.33US$

Sabang2,142,857.14

US$

Banda Aceh

771,938.58US$

West Aceh 747,167.90

US$

Pidie610,000.00

US$

The Big 5 Foreign Direct Investment Districts/Cities, 2014

The Big 5 Foreign Direct Investment by Sectors, 2014

i

Other Services3,241,347.77

US$

Trading & Reparation533,843.34

US$

Food Crops & Plantations316,453.45

US$

Mining718,018.73

US$

Electricity, Gas & Water360,055.46

US$


Sabang 36.476.190,48

US$

Lhokseumawe113.428.571,43

US$

Singkil 8.666.666,67

US$

Banda Aceh

7.619.047,62 US$

Aceh Tengah

7.428.571,43 US$

The Big 5 Domestic Investment Districts/Cities, 2014

The Big 5 Domestic Investment by Sectors, 2014

i

Other Services 90.476.190,48

US$

Food Industry 16.952.380,95

US$

Chemical Industry & Pharmacy 1.714.285,71

US$

Electricity, Gas & Water 7.580.952,38

US$

Trading and Service 8.380.952,38

US$


Ease of Doing Business in Aceh

5

Photo: Aceh Governor Residence

Law No 11 of 2006 for Aceh Governance. This law gives the Government of Aceh privileges to govern the province including control at economic development, health, education, safety, and public welfare.

Law No. 37 of 2000 for Sabang Free Port and Free Trade Zone. Includes a wide range of facilities for doing business in Sabang, such as import duty and tax exemptions. The Sabang Management and Development Agency (BPKS) operates the zone and has authory to issue all licenses for investment in this area.

Presidential Regulation No. 11 of 2010 for Cooperation between the Government of Aceh and Foreign Institutions. This regulation gives the Government of Aceh authority to establish cooperation with foreign institutions, especially for economic development.

REGULATIONS

Photo: Sabang, Weh Island


INCENTIVES

POTENTIAL INVESTORS

LICENSING

CONSTRUCTION

OPERATION ANDBUSINESS EXPANSION

PRINCIPLE LICENSE: BKPM/BPKSWORKING LICENCE: BKPM/BPKSLOC AL LICENCE: BP2T

One Stop Service for Local Licenses

INVESTMENT ACCELERATION TASK FORCE TEAM

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

INVESTMENT EVALUATION ANDCONTROLLING TASK FORCE TEAM

FACILITATION AND ASSISTANCE> Security, convenience and low certainty> Land dispute, labor dispute, etc> Regulation and licensing for business

NOTE: BKPM > Indonesian Investment Coordinating Board BPKS > Sabang Free Port and Free Trade Management Board BP2T > One Stop Service Office

a. Reduction of Sectoral levy for permits; Shall not exceed 50% (fifty percent) of the (levy) payable amount.

b. Stimulus funding, for selected sectors; Stimulus funds awarded in the form of interest subsidy shall not exceed 2 % (two percent) of the rate of interest paid for the purchase of machinery or equipment.

c. Capital relief; in the form of equity and assets in accordance with the ability of the Government of Aceh .

Providing incentives to investors in the form of:


cONE STOP SERVICE FOR PERMITS AND LICENSES

Submit Application

Computerization

Technical Examination/Field Observations

Technical Team Meeting for Validation/Consideration

for Qualified License

Output: 1. Reject

2. Pending 3. Accept

1. Time Given to Complete Application

2. Complete the requirement

3. Resubmit and Proceed AgainPrint Permits Documents

Permit signed on behalf of Government

Record by Administration

Payment of Permit Fees into Bank

Issue of Permit/License Application/Document

Application Received Check

for Completeness

Incomplete

Complete


cBUSINESS LICENSING PROCEDURE (Based on Perka BKPM No. 5/2013)

PRINCIPLE LICENSE

BUSINESS LICENSE ISSUED

Proceed with Production

*) Business License is issued by the One Stop Service Office according to the authorization given. If there is NO authorization/delegation, then the permit/license is issued by the relevant ministry

Operational Permit from Related Ministry

Regional License

INVESTOR APPLIES

FOR INVESTMENT ONLY

MECHANISM FOR COMPLAINTS FROM BUSINESSMEN IN ONE STOP SERVICE OFFICE (BP2T)

COMPLAINING CUSTOMER

CUSTOMER SERVICE Complaint cannot be solved by Customer Service

TECHNICAL STAFF

Complaint cannot be solved by Technical Staff

Head of Information Service & Complaints

TECHNICAL TEAM

HEAD OF ONE STOP SERVICE OFFICE OF ACEH

PROVINCE

COMPLAINING CUSTOMER


Detailed Plans forAgro Industries

6

Photo: Palm Oil Industry, PT. Megalopolis, Aceh Jaya

6.1.1 Detailed Plans for Food Crops

6.1.2 Detailed Plans for Horticulture

6.1 Detailed Plans for Agro Industry


Detailed Plan for Food Crops 6.1.1

Rice, the major food crop is particularly important for food security. The overall demand for rice in Indonesia currently reaches 39 million tons (http://www.statista.com), while Aceh domestic consumption is about 985.28 tons (2013). Aceh is a rice surplus province and with rice demand growing there is huge potential to expand paddy rice farming and processing to meet the domestic market demands.

PADDY

o The annual production of paddy rice was about 1,956,938 tons in 2013o Produced by about 359,478 farmers throughout Aceh.


AREA AND PRODUCTION OF PADDY BY DISTRICT/CITY, 2013

District Planted Area (Ha) Production

(Ton/Annum)

Simeulue 6,014 21,866

Aceh Singkil 1,255 4,980

South Aceh 14,655 75,563

Southeast Aceh 23,130 105,564

East Aceh 42,793 188,254

Aceh Tengah 8,058 35,371

West Aceh 12,702 65,314

Aceh Besar 36,554 159,929

Pidie 44,160 204,429

Bireuen 38,426 207,755

North Aceh 69,286 277,749

Southwest Aceh 11,063 126,904

Gayo Lues 5,452 26,141

Aceh Tamiang 28,184 119,609

Nagan Raya 21,864 184,932

Aceh Jaya 9,664 42,495

Bener Meriah 2,191 10,754

Pidie Jaya 14,718 70,893

Banda Aceh 61 439

Sabang - -

Langsa 3,199 13,579

Lhokseumawe 2,833 10,432

Subulussalam 1,625 3,986

2013 397,887 1,956,938

2012 438,855 1,788,738

2011 400,917 1,760,657

PIDIE

EAST ACEHNORTH ACEH

BIREUEN

SOUTHEAST ACEH

ACEH BESAR


Paddy rice is a key crop in

Aceh, with plantings in 397,887 Ha


Jeumpa Village

Sultan Iskandar Muda International Air port

Spring Water

Malahayati Seaport

Pidie District is one of the leading rice producers in Aceh; its production has increased significantly. The main rice varieties planted are Ciherang and Inpari. Milling is a crucial post-harvest activity in the production of rice (http://www.ifc.org) and surplus rice production in Pidie is a key element to establish a rice milling industry. An existing rice milling plant was built in 2014 in Pidie to produce high quality rice as well as to create a competitive price in local and national market.

Pidie Rice Milling Industry Project

PIDIE

INFRASTRUCTURE SUPPORT

Sultan Iskandar Muda by condition: Good by surface: Asphalt

Malahayati River, Spring Supported

Establishing the modern rice milling plant, capacity 8 ton/hour.

PROJECT PURPOSE

INVESTMENT ESTIMATE

USD 8,000,000


Land Area: 4 Ha

Location: Jeumpa Village, Glumpang Minyeuk, Glumpang Tiga Sub District

Assets: Building (Aceh Provincial

Government Owned) Equipment/Machine

(Aceh Provincial Government Owned)

Land Status: Pidie District Government Land

Photo : Illustration

Photo : Illustration Aceh Investment Profile { 61

Establishing poultry feed factory (maize bran, maize germ, cattle

feed, corn grits), which has drying machine (capacity 40 tons/hour) and

warehouse (capacity 9000 tons)

PROJECT PURPOSE

INVESTMENT ESTIMATE

USD 12 Million

CORN

There is a reason why corn [Zea mays] is the most-produced grain worldwide; it is involved in just about every aspect of our lives. Corn provides about 21 percent of human nutrition across the globe. Corn is a major animal feed. There are many other non-culinary uses for the grain as well; it is a key ingredient in ethanol, cosmetics, ink, glue, laundry starch, medicines and fabrics, just to name a few. It also can be the raw material for baskets and toys. In short, corn is an essential ingredient in our diets and also in our world (source: en.wikipedia.org/wiki/ Maize).

As a major producers of corn, we offer opportunities for potential investors to set up a feed industry in Aceh.



MAIZE HARVESTED AREA PURSUANT TO INTENSIFICATION BY DISTRICT/CITY (HA), 2013

District Planted Area (Ha) Harvested Area (Ha)

Simeulue - -

Aceh Singkil 118 54

South Aceh 6,496 6,189


East Aceh 1,040 464

Aceh Tengah 101 43

West Aceh 276 66

Aceh Besar 1,054 72

Pidie 514 346

Bireuen 1,149 568

North Aceh 1,337 280

Southwest Aceh 276 21

Gayo Lues 1,415 914

Aceh Tamiang 1,289 648

Nagan Raya 415 249

Aceh Jaya 258 137

Bener Meriah 635 186

Pidie Jaya 323 125

Banda Aceh 1 -

Sabang 36 -

Langsa 3 2

Lhokseumawe 57 -

Subulussalam 463 351

2013 47,160 44,099

2012 51,788 43,675

2011 49,429 41,853

SOUTHEAST ACEH

SOUTH ACEH

... it is a key ingredient in ethanol, cosmetics, ink, glue, laundry starch, medicines and fabrics, just to name a few.


PROJECT PURPOSE:

Establishing corn dry-milling industry capacity 60 tons and poultry feed factory (maize bran, maize germ, cattle feed, corn grits) capacity 10 tons

Land : 5 ha

Location: Seuneubok Village, Pasie Raja Sub DistrictOwnership: Regional Owned-Enterprises Fajar Selatan

South Aceh Corn Industry Project

Corn is one of the main commodities in South Aceh. Its production has increased to over years; in 2013, the planted area was 11,856 ha and it increased by 12, 331 ha in 2014, which resulted in an increase in the harvest volume. Total dry land in 2015 was 86.479,36 ha, spread over 18 sub districts in South Aceh and around 13.000 ha was used for corn plantation with target of production is 72.730 tons. Thus it is feasible to establish a corn-processing industry in South Aceh

Corn dry-milling industry capacity 60 tons and warehouse 2 units

INVESTMENT ESTIMATE

USD 83,333

Poultry feed factory capacity 10 tons

INVESTMENT ESTIMATION

USD 100,000

Working Capital of both projects is USD 166,666

TOTAL INVESTMENT USD 350,000


SOUTH ACEH




SOYBEAN

AREA AND PRODUCTION OF SOYBEAN BY DISTRICT/CITY, 2013

District Planted Area (Ha) Harvested Area (Ha)

Simeulue - -

Aceh Singkil 1 -

South Aceh 96 73

Southeast Aceh - -

East Aceh 5,365 3,232

Aceh Tengah 407 339

West Aceh 28 21

Aceh Besar 855 134

Pidie 2,013 1,536

Bireuen 24,311 19,834

North Aceh 2,588 1,786

Southwest Aceh 15 6

Gayo Lues 12 17


Nagan Raya 219 218

Aceh Jaya 360 384

Bener Meriah 496 28

Pidie Jaya 2,291 2,395

Banda Aceh - -

Sabang 7 -

Langsa - -

Lhokseumawe 19 -

Subulussalam 31 24

2013 41,276 30,579

2012 44,638 35,599

2011 41,009 35,370

Establishing poultry feed factory (cattle feed), which has drying

machine (capacity 40 tons/hour) and warehouse (capacity 9000 tons)

PROJECT PURPOSE

INVESTMENT ESTIMATE

USD 12 Million



PIDIE JAYA

PIDIE JAYA

BIREUEN

NORTH ACEH

Soybean is a major source for vegetable protein and vegetable oil in the world.

Nationwide, soybean production in 2013 was 847,16000 tons on 554,132 ha of land. In Aceh, soybean was planted on approximately 41,276 ha in 2013 with production of 30,579 tons.

41,276 Ha,

30,579 tons.



Bener Meriah Horticultures ProjectDetailed Plan of Horticulture6.1.2

A horticultural area is a geographic area that has similar ecosystems and united by common infrastructure facilities thus forming a region filled with various business activities including the provision of facilities for horticultural production, cultivation, post-harvest handling and processing, marketing, and support activities (Indonesia Directorate General of Horticulture). Its main purpose is to develop the well-being of society through the utilization of resources in a sustainable manner by integrating communal relations, the economy, and the environment in harmony.



BENER MERIAH

Horticulture Areas Planted (Ha)Production

(Ton/Annum)VegetablePotatoes 620 81,080

Cabbages 235 55,789

Garlic Onions 10 1,260

Red onions 191 17,016

Tomato 285 228,945

Chilie Peppers 418 108,437

Carrots 166 22,063

FruitPineapples 7,165 8.60

Avocados 27,316 912

Oranges 30,593 316.80

Passion fruit 4,838 10,190

POTENTIALS(tons)

Source : Statistic of Bener Meriah (BPS) 2013


Lineung Buleun Horticulture Project

Establishing organic farm base on a production system

that sustains the health of soils, ecosystem and people

Selling the products in international markets

PROJECT PURPOSE

INVESTMENT ESTIMATE

USD 1,025,850

Lineung Buleun

Krueng GeukuhSea Port

BENER MERIAH

Malikussaleh Air Port

INFRASTRUCTURE SUPPORT :

Malikussaleh

by condition: Moderate by surface: Gravel and Asphalth

Krueng Geukuh

River, Spring

Supported


The Government of Bener Meriah District has selected Linueng Buleun Sub District as a horticultural

development area. It is very potential for horticultural farms, as it is close to the new hydro power plant

and has direct access to seaports on the east coast. The target is to supply organic fruits and vegetables for international markets. The very supportive and

welcome local community ensures that investment in this area is very promising.

Photo : Lineung Buleun Potato Farm


Bener Meriah Potato Development ProjectPotato (Solanum tuberosum) is one of the worlds favorite foods and it is the fourth main food crop after paddy, wheat and corn. Today Indonesia is the biggest potato producer in Southeast Asia. The total area used for potatoes in Indonesia was 70.187 ha in 2013 with total production of 823.856 tons. One of the target areas for potato production is located in Bener Meriah District in Aceh Province.

Bukit

Bener Kelipah

Permata

Pintu Rime Gayo

Mesidah

Syiah Utama

Wih Pesam

Timang Gajah

Gajah Putih

Bandar


The Governments of Aceh and Bener Meriah District have made serious efforts to accelerate potato growing in Bener Meriah. To meet the demand for potatoes both from domestic and from overseas markets, we invite investors to invest in this potential sector through collaboration with local farmers using contract farming system.

AREAS PLANTED AND PRODUCTION OF POTATO IN BENER MERIAH DISTRICT

Sub district Planted Area (Ha)Production

(Ton)

Timang Gajah 5 63

Wih Pesam 17 446

Bukit 704 18,317

Bandar 70 1,928

Bener Kelipah 478 7,581

Permata 2,175 43,825

Mesidah 40 213

Total 3,489 72,373

Estimates for potato development project (costs per hectare):

Land rental per harvest (1 ha) = USD 333,33Operational production costs = USD 3,120.42Labor cost = USD 853,32Total investment = USD 4,037.08Profit = USD 3,526.25B/C = 1.73

Photo: Harvesting Potatos in Lineung Buleun, Bener Meriah


6.2.1 Palm Oil6.2.2 Rubber6.2.3 Cocoa6.2.4 Coffee6.2.5 Coconut

6.2 Detailed Plans for Plantations


Palm Oil6.2.1

District Planted Area (Ha)

Production (Tons/

Annum) Simeulue 3,387 1,826


South Aceh 10,209 34,910


East Aceh 60,592 278,550

Aceh Tengah - -

West Aceh 26,144 206,240

Aceh Besar 1,282 407

Pidie 77 16

Bireuen 5,181 22,197

North Aceh 24,953 115,477

Southwest Aceh 20,767 14,215

Gayo Lues - -


Nagan Raya 82,252 329,321

Aceh Jaya 16,714 19,348

Bener Meriah 1,300 117

Pidie Jaya 767 1,090

Banda Aceh - -

Sabang - -

Langsa 399 825

Lhokseumawe 208 243


2013 393,270 1,988,678

2012 368,650 5,070,555

2011 365,996 572,953

PALM OIL PLANTED AREAS AND PRODUCTION BY DISTRICT / CITY IN 2013

In 2010, production by smallholders was 185,265 tons. Government plantations production was 69,634 tons, and private plantation productions was 238,927 tons, total 493,826 tons.



Palm oil constitutes the largest plantation crop in Aceh by volume and by area and economic value. The palm oil industry has significant growth potential as a major source of supply for food and bio fuel products.

The Government of Aceh has made several strategic plans for palm oil.

1. Create operational and policy support for sustainable palm oil among governments, private sector, NGOs, and smallholders.

2. Support palm oil public-private investment partnerships

3. Reduce threats to high conservation value forests and peat swamp ecosystems.

4. Create a provincial seed certification and distribution program

5. Improve supply chains and pricing transparency for palm oil production and processing.

Crude Palm Oil (CPO) is the main product of the palm oil industry. Aceh Tamiang, Aceh Singkil, Nagan Raya, and West Aceh have the highest CPO production that makes those areas suitable for processing industry.

Photo : Illustration Aceh Investment Profile { 77

Aceh Tamiang CPO Processing IndustryAceh Tamiang is one of the major producers of palm oil in Aceh and has high potential for establishment of a CPO processing industry. Raw materials is fresh fruit bunches come from 51,677.22 ha of estates and 20,347 ha of smallholders spread over 11 sub districts in Aceh Tamiang. Based on market analysis, a CPO factory can store about 2,160 tons of fresh bunches and produce 530 tons/day of palm oil.

Seruway

Kuala LangsaSea Port

ACEH TAMIANG

Establishing 2 units of CPO milling plant capacity 30 tons/hour

PROJECT PURPOSE

INVESTMENT ESTIMATE

USD 2,000,000

Area: 6 HaLocation: SeruwayLand Status: Government Land

o NPV: 15,790,000 USDo IRR: 30,19%o B/C: 1,88o PAYBACK PERIOD: 5 YEARS( Estimates December 2014 )


EXISTING CPO PROCESSING PLANTS:

Tanjung Seumantoh, Pulau Tiga PTPN I, PT. Socfindo, PT. Padang Palma Permai, PT. Parasawita, PT. Mapoli Raya, PT. Sisirau, PT. Bahari Dwikencana Lestari, PT. Pati Sari, PT. Tri Agro Palma Tamiang, and CV Selaksa Windu) with production capacity 5 45 ton/hour.

Photo: Palm Oil Processing Industry, PT. Megalopolis, Aceh Jaya Aceh Investment Profile { 79

North Aceh CPO Processing Industry

The total production of oil palm fruit in North Aceh in 2013 was 115,477; produced by smallholders (39,156 tons) and estates (76,321 tons). Government estates (PTPN-I) had 7,506 ha of oil palm plantations and own their CPO factory in Cok Girek with capacity 60 tons/hour or 168,000 tons/year. Smallholders supplied around 18,000 tons of fresh bunches/year.

Lhoksukon

Krueng GeukuhSea PortMalikussaleh

Air Port

Establishing 2 units of CPO milling plant capacity 60 ton/hour

PROJECT PURPOSE

INVESTMENT ESTIMATE

USD 2,000,000o NPV: 15,790,000 USDo IRR: 30,19%o B/C: 1,88o PAYBACK PERIOD: 5 YEARS( Estimation December 2014 )

NORTH ACEH


Area: 25 HaLocation: LhoksukonLand Status: Government Land

Photo: Illustration


West Aceh Cooking Oil Processing Industry

The demand for cooking oil has been rising for many years. West Aceh produced 206,240 tons of crude palm oil (CPO) in 2013 and production is continuing to increase. CPO is the raw material for cooking oil, hence this large volume of CPO is a big reason to establish a palm oil cooking oil processing factory in West Aceh since the cooking oil is a value added product.

Beuragang

Establishing Cooking Oil Processing Industry

PROJECT PURPOSE

INVESTMENT ESTIMATE

USD 13 milliono Net Present Value: USD 8,4 milliono Return on Investment: 225 %o PAYBACK PERIOD: 7 YEARS

WESTACEH

Land Area: 50 HaLocation: Beuregang Industrial AreaLand Status: Government Land


INFRASTRUCTURE SUPPORT :

Cut Nyak Dhien

by condition: Moderate by surface: Gravel and Alsphat

Meulaboh

River, Spring

Nagan Raya Steam Power Plant

Photo: West Aceh, CPO processing industry


Aceh Tamiang Cooking Oil Processing Industry

Aceh Tamiang as the center of palm plantation in Aceh has 51,677,22 ha of estate plantations and about 20,347 ha of smallholders plantings with total production of 2,690,68 ton/day. Eleven palm oil mills are located in Karang Baru, Seuruway, Kejuruan Muda, and Rantau Sub Districts produce CPO with the capacity of 255/hour.

The supply of CPO has been sufficient; therefore it is very feasible to establish cooking oil Industry with the capacity 200 - 500 ton/CPO per day. The factory will be built on the area of 4-6 Ha, designed to include supported buildings, housing, Waste Water Treatment Plant (WWTP) and green belt.

Seruway

Kuala LangsaSea Port

ACEH TAMIANG

Land Area : 4-6 HaLocation : Green Industrial Park Aceh Tamiang Sereuway/Bendahara DistrictLand Status : Private Ownership


Malikussaleh by condition: Moderate by surface: Gravel and Land

Kuala Langsa River, Spring Supported


Development plan of Cooking Oil Industry (CPO Processing), with capacity 200 500 ton/day is divided into three as follows:

Pre-Construction Phase Public Relations

informing communities pre design of complex

Obtaining Permit

Detailed Design Appoint construction

contractor (Tender Process) Build road access Build Cooking Oil Factory Build Oil Storage Tanks Build Waste Water Treatment/

Recycling Plant Mobilize equipment for factory Build offices, housing and

other support facilities

Post-Construction Phase Appoint factory director

and engage staff Start operation of

factory & WWT/RP

Photo: Illustration


Rubber6.2.2

Natural rubber consists of suitable polymers of the organic compound isoprene with minor impurities of other organic compounds plus water. The rubber trees can grow to 15-25 meters in height with a large trunk and high branching.

Currently, rubber is harvested mainly in the form of latex from rubber trees (Hevea Brasiliiensis), which was tapped from the cut bark of the plant. This used to produce other forms of rubber, such as crumb rubber and plank rubber.

Natural rubber is used extensively in many applications and products, either alone or in combination with other materials such as wood on charcoal, wood or lumber for household appliances, furnitures, door and window profiles, hoses, belts, matting, flooring and dampeners (antivibration mounts) for the automotive industry, in the aircraft industry, textiles, gloves (medical, household and industrial) and toys.

There are three (3) districts in Aceh with high rubber production that are suitable for processing industry, West Aceh, East Aceh, and Aceh Tamiang. The following table shows total production for each district.

Existing Company:PT. Aceh Rubber Industry (Aceh Tamiang)

District / City Planted Area (Ha)Production

(Ton) Simeulue 1,833 106


South Aceh 1,219 271


East Aceh 31,607 40,801

Aceh Tengah - -

West Aceh 29,050 23,555

Aceh Besar 413 1

Pidie 140 -

Bireuen 3,363 1,383

North Aceh 12,454 6,890

Southwest Aceh 1,027 136

Gayo Lues 190 18


Nagan Raya 12,358 3,356

Aceh Jaya 13,576 5,406

Bener Meriah - -

Pidie Jaya 543 1

Banda Aceh - -

Sabang - -

Langsa 1,779 1,302

Lhokseumawe 18 16


2013 152,481 989,201

2012 149,678 961,627

2011 144,291 87,407

RUBBER PLANTED AREA AND PRODUCTION OF SMALLHOLDER & ESTATE ENTERPRISES BY DISTRICT/CITY 2013



Establishing rubber-processing industries

PROJECT PURPOSE

INVESTMENT ESTIMATE

USD 21,161,739

o Net Present Value: 234,618,007 USDo Internal Rate on Return: 53,81%o Benefit Cost ratio: 1,26o Net Benefit Cost ratio: 3,739o PAYBACK PERIOD: 6 YEARS AND 8 MONTHS

Photo: PT. Aceh Rubber Industries, East Aceh


Cacao6.2.3

Indonesia is the third largest producer of cacao in the world after the Ivory Coast and Ghana.

Aceh, one of the largest producers of cacao in Indonesia, have plantations spread almost in all districts, from Pidie in the eastern part of Aceh, to Simeulue Island in the outer edge of Aceh Province.

Aceh cacao has been exported to many countries in the world. The statistics show that in 2010, Aceh exported 420,978.40 kg of cacao beans worth USD 1,166,080.30 (Aceh Industry and Trade Agency, 2012).

The development strategy is to create a sustainable cacao industry. The upstream industry will be with the focus on boosting value added in the downstream sector.

There are four districts in Aceh that are major cacao producers suitable for a cacao processing industry, Pidie Jaya, North Aceh, East Aceh and Southeast Aceh.

District/City Planted Area (Ha)Production

(ton) Simeulue 1,598 119

Aceh Singkil 640 168

South Aceh 1,332 169


East Aceh 12,484 6,684

Aceh Tengah 2,322 786

West Aceh 809 317

Aceh Besar 3,302 426

Pidie 10,160 2,674

Bireuen 6,671 2,559

North Aceh 9,662 3,288


Gayo Lues 4,493 902


Nagan Raya 5,405 1,327

Aceh Jaya 1,292 159

Bener Meriah 1,053 332

Pidie Jaya 13,484 4,375

Banda Aceh - -

Sabang 737 193

Langsa 301 126

Lhokseumawe 135 65


2013 103,096 34,887

2012 100,490 37,120

2011 89,512 37,594

CACAO AREAS AND PRODUCTION BY DISTRICT/CITY 2011-2013



o Net Present Value: 5,730,808.44 USDo Internal Rate of Return: 22,4%o Benefit Cost ratio: 1,69o PAYBACK PERIOD: 6 YEARS AND 9 MONTHS

o Establishing cacao processing industries (paste, butter, chocolate

powder)o Establishing packaging industry.

PROJECT PURPOSE

INVESTMENT ESTIMATE

USD 97 Million

Photo: Cacao Plantation in Pidie Jaya


Coffee6.2.4

Gayo coffee is a typical coffee from the Gayo highlands, an area that covers Bener Meriah, Central Aceh and Gayo Lues Districts

Gayo is the name of the highland people who live in this region. The majority of people in this area are coffee growers. Coffee planting started in 1908 and mainly is Arabica coffee. In fact, Arabica coffee production from the Gayo region is the largest on Asia.

Gayo coffee has been exported to many countries in the world. The statistics indicate that in 2012, Aceh exported coffee beans to 19 countries (South Korea, China, Japan, Taiwan, Hong Kong, Malaysia, Singapore, United State, Canada, New Zealand, Australia, Norway, British, Germany, Ireland). 8,798 tons valued at USD 52 million were exported. (Aceh Industry and Trade Agency, 2014).

Gayo coffee has gained some international certifications recognition for its excellent quality especially its organic coffee which is fair trade certified with Geographical Indication (GI). In particular, Gayo Arabica coffee got the highest score in the Indonesian Specialty Coffee Auction 2010 in Bali, which guarantees that it is the best coffee in the world.

Sub District Robusta Arabika Total Robusta & Arabika (Ton)

FarmersPlanted

Area (Ha)Production

(Ton)Planted

Area (Ha)Production

(Tons)Planted

Area (Ha)Production

(Tons)Aceh Tengah 2,315 763 48,300 27,079 50,615 27,842 33,000

Bener Meriah 1,795 808 49,496 15,000 51,291 15,808 29,000

Gayo Lues - - 4,770 1,145 4,770 1,145 40,000

Pidie 9,572 1,569 - - 9,572 1,569 11,846

2013 13,682 3,140 102,566 43,224 116,248 46,364 113,846

2012 11,367 2,377 54,266 16,145 65,633 18,522 113,846

2011 23,254 4,709 107,336 44,369 130,590 49,078 101,735

COFFEE PLANTED AREA AND PRODUCTION OF SMALLHOLDER BY DISTRICT/CITY 2013



8,798,532.84 kgAceh export volumes of coffee beans

to 18 countriesThree major producers of coffee in Aceh are Bener Meriah, Aceh Tengah and Gayo

Lues. These areas are suitable for a big coffee processing industry.

Photo: Illustration Aceh Investment Profile { 91

Aceh Tengah Coffee Processing Industry

Mulie Jadi

Krueng GeukuhSeaport

ACEH TENGAH

The demand for Gayo Coffee both in domestic and overseas market are very high. It is currently sold as green beans. As the government encourages to increase value added of the Aceh coffee, it is a big

opportunity to build a modern coffee processing industry.The popular culture of coffee consumption in Aceh is also a good prospect to establish Gayo instant coffee processing industry.


Malikussaleh/Rembele

by condition: Moderate by surface: Asphalt, Gravel and Land

Krueng Gekuh River Supported


USD 6,258,377

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

o Establishing plant and Working Capital : US$ 3,333,333o Operational Cost : US$ 2,925,043

*(US$ 1 = IDR 12,000)

Area : 4 haLocation : Mulie Jadi Village, Silih Nara Sub DistrictLand Status : Private Ownership


Based on market observation, at present, at least 10 brands of instant coffee are sold in the market, which shows the growing of instant coffee consumption; hence the prospect is very promising. Investment estimation for establishing instant coffee processing industry with the capacity 30,000.000 sachets is: sale price at producer/industry level per sachet US $ 0.10 and premium quality US$ 0,04 per sachet.

The short supply chain within Aceh region overs an adventage for investment since the production cost is less than the average cost (assuming green bean price US$ 4,58/Kg). The price is more competitive and accordingly is able to create market segment both on market share and market space. Moreover, it is able to compete with other large scale national products.

PROJECT PURPOSE:ESTABLISHING INSTANT COFFEEE PROCESSING INDUSTRY


Coconut6.2.5


(Ton) Simeulue 7,472 2,319


South Aceh 6,523 2,961

Southeast Aceh 760 369

East Aceh 6,797 6,012

Central Aceh 103 13

West Aceh 2,832 1,459

Aceh Besar 14,351 8,025

Pidie 8,633 5,216

Bireuen 14,341 10,132

North Aceh 16,695 9,586


Gayo Lues 450 81

Aceh Tamiang 586 242

Nagan Raya 1,351 658

Aceh Jaya 6,358 1,379

Bener Meriah - -

Pidie Jaya 3,401 1,224

Banda Aceh - -

Sabang 2,645 1,718

Langsa 473 283

Lhokseumawe 631 355


2013 103,076 55,434

2012 107,395 59,766

2011 106,542 62,926

COCONUT PLANTED AREA AND PRODUCTION OF SMALLHOLDER BY DISTRICT/CITY 2013



Coconut industry can be developed by either farmer group level or larger scaled industry, for domestic and international market, such as young coconut products, coconut cocktail, coconut jam, baby food supplements, soft drinks, nata de coco, coconut water sauce, coconut flour, virgin coconut oil, coconut shell charcoal, briquette charcoal, liquid smoke of coconut shell, coconut wood, and organic fertilizer. While the exporting goods are such as copra, white copra, raw coconut oil, coconut cake, desiccated coconut, and active charcoal.

Photo: Illustration


Aceh Besar Virgin Coconut Oil Processing Industries

Ladong Industrial Park

Malahayati Seaport ACEH BESAR


Iskandar MudaInternational Air Port

by condition: Good by surface: Asphalt

Malahayati River, Spring Supported

o Net Present Value: 15.5%o Internal Rate of Return: 57.39%o Benefit Cost ratio: 2.19

Area : 4 haLocation : Ladong Industrial ParkLand Status : Government Ownership

Establishing Virgin Coconut Oil Processing Industry

PROJECT PURPOSE


USD 87,286


Photo: Illustration


6.3.1 Patchouli6.3.1 Nutmeg6.3.3 Citronela

6.3 Detailed Plans for Essential Oil Production


Patchouli6.3.1

Patchouli (pogostemoncablinbenth) is a tropical evergreen shrub of the mint family. A valuable essential oil is distilled from its dried leaves. The oil is used in cosmetics and is particularly valuable in the global perfume industry and modern scented industrial products such as paper towels, laundry detergents, and air fresheners where the demand for it is still growing. Patchouli also can be used in antiseptic, pesticide, and as a fixative to bind other essential oils.

Currently Indonesia is the world largest supplier of patchouli, supplying more than 80% of the world market. Patchouli is extensively cultivated in Aceh, Indonesia. Due to its high alcohol content and flavor, it is the Aceh variety of this tropical plant that is one of the most sought after (svet.charita.cz)

The Geographical Indication Expert of the Indonesian Ministry of Agriculture, Dr. Riyaldi, affirmed that Aceh is very potential for the development of large-scale patchouli businesses, because of its supporting condition of land and its quality.

According to a research, Aceh patchouli oil contains patchouli alcohol (yield) 2.5% to 3.3%, which makes it the best patchouli in the world (patchouli-aceh.com, 03/18/2012).

As one of the major producers of patchouli, Aceh offers opportunities for potential investors to set up patchouli processing industries in the region.


(Ton) Simeulue - -

Aceh Singkil 40 70

South Aceh 202 240

Southeast Aceh 634 950

East Aceh - -

Aceh Tengah 23 100

West Aceh 20 276

Aceh Besar 118 70

Pidie 8 42

Bireuen 36 48

North Aceh 132 170

Southwest Aceh 42 450

Gayo Lues 863 1,250

Aceh Tamiang 3 8

Nagan Raya 7 86

Aceh Jaya 500 572

Bener Meriah - -

Pidie Jaya 3 8

Banda Aceh - -

Sabang - -

Langsa - -

Lhokseumawe - -

Subulussalam 19 28

2013 2,650 4,368

2012 5,300 8,736

2011 10,560 17,402

PATCHOULI AREA AND PRODUCTION OF SMALLHOLDER BY DISTRICT/CITY, 2013



According to a research, Aceh patchouli oil contains patchouli alcohol (yield) 2.5% to 3.3%,

which makes it the best patchouli in the worldAceh produces the best patchouli in the world. The main production areas are Aceh Jaya,

South Aceh, Southwest Aceh and Gayo Lues Districts, which are suitable for large-scale processing industries. The following table shows the total production for each district.

Photo: Illustration Aceh Investment Profile { 101

Aceh Jaya Patchouli Processing Industry

Panga

Calang Sea Port

ACEH JAYA

Aceh Jaya as one of the main patchouli producers in Aceh has 501 ha of patchouli plantations with total production 36,39 tons/day.

The Government of Aceh Jaya District has encouraged the increased high quality patchouli production volume to support the

establishment of patchouli processing industry. The centre of patchouli planted areas in Aceh Jaya is Panga (65 ha), Jaya (24 ha), Indra Jaya (20 ha), Sampoiniet (35 ha), Darul Hikmah (45 ha), Setia Bakti (66 ha), Krueng Sabee (105 ha), Pasie Raya (and Teunom Sub Districts. There is a potential to develop another 315 ha of land in this area.

Land Area : 38 HaLocation : Panga Sub District Land Status : Private Ownership



Cut Nyak Dhien/Panga Air Stripe

Calang

River

Supported

by condition: Moderate

o NPV = US$ 3,131.246o IRR = 64.22 %o PAYBACK PERIOD: 2 YEARS

Establishing patchouli processing industries

PROJECT PURPOSE


USD 1,103,333

Photo: Illustration


Nutmeg6.3.2

Nutmeg tree is native to Indonesia, which is the worlds largest producer, contributing about 75% of the worlds supply. This spice is popular for its health benefit as it contains antioxidant and disease-preventing phytochemicals. Its distinctive and aromatic flavor is also used for culinary.

The district of South Aceh is one of the nations main producers of nutmeg. The cultivation of nutmeg continues to be important in the district. Today, nine of the 16 sub districts in South Aceh grow nutmeg, producing several different products including sugared candies and syrup. (source: http://www.tradeforum.org)


(ton) Simeulue 1,431 62

Aceh Singkil 124 13

South Aceh 15,230 5,906

Southeast Aceh 43 8

East Aceh 1 -

Aceh Tengah 3 1

West Aceh 64 13

Aceh Besar 328 45

Pidie 109 38

Bireuen 147 28

North Aceh 148 28


Gayo Lues - -

Aceh Tamiang - -

Nagan Raya 121 33

Aceh Jaya 173 18

Bener Meriah 12 3

Pidie Jaya 17 3

Banda Aceh - -

Sabang 34 7

Langsa - -

Lhokseumawe - -

Subulussalam -

2013 21,104 6,451

2012 21,031 5,790

2011 21,522 5,261

NUTMEG AREA AND PRODUCTION OF SMALLHOLDER BY DISTRICT/CITY



Photo: Illustration


Citronella (Cymbopogon nardus L) is a type of grass with narrow, long leaves and grows to 200 1000 m. It produces natural essential oil, namely citronella oil. The main components of citronella oil are citronellal and geraniol, which respectively have unique fragrance. This aromatic oil is mostly used in soaps, cosmetics, perfume, flavoring and pharmacy industries (http://thakshana.nsf.ac.lk/slstic/NA-238/NA_238.pdf).

Gayo Lues Regency is one of the main producers of citronella oil in Aceh, centered in seven sub districts; Blang Jerango, Kutepanyang, Dabun Gelang, Blang Kejeren, Pantan Cuaca. Trangun and Tripa Jaya. More than 8500 ha of land are used for citronella and the overall of land production was 400 kg/ha in 2014 (insetgalus.com).

Citronella6.3.3

Project Purpose: Gayo Lues Citronella Processing Industry

SUB DISTRICT Area (Ha) Production(ton) Kuta Panjang 2,122 271,448

Blangjerango 3,712 477

Blangkejeren 1,950 248

Putri Betung - -

Dabun Gelang 2,364 302,376

Blang Pegayon 1,254 159,186

Pining 1,046 132,354

Rikit Gaib 2,069 265,611

Pantan Cuaca 1,454 185,631

Teragun 980 124,485

Tripe Jaya 262 31,218

TOTAL 17,213.00 1,473,034


Photo: Illustration


6.4.1 Aceh Besar Beef Industry Development Project6.4.2 Pidie Beef Industry Development Project6.4.3 Bener Meriah Beef Industry Development Project6.4.4 Aceh Tengah Beef Industry Development Project6.4.5 Nagan Raya Beef Industry Development Project

6.4 Detailed Plan of Aceh Beef Industry Development Project


The area suitable for livestock grazing in Aceh is 1,5 ha. This very large area is suitable for grazing, integrated with crops and plantations. The project involves both breeding and fattening. The main activities in this project are building irrigation and buying hay equipment, construction of infrastructure, construction of animal feedlots, breeding and fattening cattle.

Strategy for Aceh beef Development project includes: develop a nucleus-plasma structure for the developing a beef herd in Aceh, establish system for management of mature breeding cows (grazing or feedlot), establish a beef finishing unit (feedlot) in each district with halal beef processing and meat distribution. Targeted for initial development: Aceh Besar, Pidie, Bener Meriah, Central Aceh and Nagan Raya Regency.


Land Area : 6,434 HaLocation : Krueng Aceh Kuta Malaka Blang Ubo-ubo

Land Status : Goverment Land

Blang Ubo-ubo

Cot Sirebee

Kuta Malaka

Krueng Aceh

ACEH BESAR

SUITABLE FOR: Kuta Malaka - Major Feedlot

for Nucleus Herd Krueng Aceh- Traditional

Fattening Cot Sirebee, Jantho- Bull

Depot Blang Ubo-Ubo- Large Scale

Breeding for Nucleus Herd

Aceh Besar Beef Industry Developement Project

6.4.1


Sultan Iskandar Muda Air Port

Malahayati River/Spring Supported by condition: Asphalt

SCHEME Nucleus : 605 Ha Plasma : 5,829 Ha

ACEH BESAR


Breeding : 5,500 cows Fattening : 15,000 cows

ROI : 29.64 % B/C : 1.23

INVESTMENT ESTIMATE

PAYBACK PERIOD : 3 YEARS AND 5 MONTHS

USD 33,147,500

Photo: Tradisional Fattening in Krueng Aceh, Aceh Besar


Biheu Village

PIDIE

SUITABLE FOR: Breeding

Land Area : 500 HaLocation : Biheu Village, Muara Tiga District

Land Status : Private Land

Pidie Beef Industry Development Project

6.4.2


Sultan Iskandar Muda Air Port

Malahayati River/Spring Supported by condition: Asphalt

SCHEME Plasma System

PIDIE


Photo: Breeding Farm, Pidie


ROI : 32 % B/C : 1.23

INVESTMENT ESTIMATE


USD 21,325,600


Perumpakan Benjadi

BENER MERIAH

SUITABLE FOR: Breeding Central Feedlot

Land Area : 4,155 HaLocation : Perumpakan Benjadi

Land Status : Goverment Land

Bener Meriah Beef Industry Development Project

6.4.3


Rembele & Malikussaleh

Krueng Gekuh River/Spring Supported by condition: Asphalt

BENER MERIAH


Photo: Breeding Farm, Bener Meriah


ROI : 32 % B/C : 1.23

INVESTMENT ESTIMATE


USD 21,628,500


Jagong Jeget

Karang Ampar

ACEH TENGAH

Land Area : 2,280 HaLocation : Jagong Jeget Karang Ampar Land Status : Private and Goverment Lands

SCHEME Nucleus : 780 Ha Plasma : 1,500 Ha

SUITABLE FOR: Fattening

Aceh Tengah Beef Industry Development Project

6.4.4



Krueng Gekuh River/Spring Supported by condition: Asphalt

ACEH TENGAH


Photo: Breeding Farm, Aceh Tengah


ROI : 32 % B/C : 1.23



USD 21,628,500


Blang Baroe Rambong

NAGAN RAYA

Land Area : 5,000 HaLocation : Blang Baroe Rambong

Land Status : Aneuk Nanggroe Cooperatives

SCHEME Nucleus dan Plasma System

SUITABLE FOR: Research Station Feedlot Breeding

Nagan Raya Beef Industry Development Project

6.4.5

Cut Nyak Dhien PT. MDB Suak Patong & Kuala Tripa

River Supported by condition: Asphalt


NAGAN RAYA


SCHEME Nucleus dan Plasma System


ROI : 32 % B/C : 1.23



USD 21,628,500


6.5.1 Lampulo International Fishing Port6.5.2 Idi Fishing Port in East Aceh6.5.3 Sawang BaU Fishing Port in South Aceh6.5.4 Peudada Fishing Port in Bireuen6.5.5 Simeulue Aquaculture Project 6.5.6 Simeulue Fishing Port 6.5.7 Simeulue Seaweed Aquaculture Project

6.5Detailed Plans for Fisheries


Lampulo International Fishing Port is strategically located facing the fishing grounds of Malacca Strait, has an area of 50 Ha and is classified as a Type A (Ocean Fisheries Port). The development of this area emphasizes improving of the fishery community welfare. The area is designed to have integrated fishery activities such as quality control, marketing services and industrial processing area.

70,771 Of fishermen in

Aceh (2013)

produced148,765

tons of fish from fisheries in Aceh (2014)

Lampulo International Fishing Port6.5.1

Photo: Lampulo Fishing Port


The Aceh Government invites investors to open businesses in Lampulo Port in the following sectors:

1. Fishing vessels with capacity 60 GT for long line fishing to operate in ZEE area of Aceh, with local labor 70% and foreign labor 30%.

2. Block ice factory capacity 6-80 ton/day3. Frozen fish 4. Fish Canning factory5. Fish processing factory (nuggets,

sausages, and others).6. Seaweed processing factory7. Modern iodine-salt factory8. Docking9. Fiber industry

Establishing fishery industries (catching, culturing, processing, preserving, storing, transporting, marketing or selling fish or

maritime products).

PROJECT PURPOSE

INVESTMENT ESTIMATEUSD 200 MILLION


To support the development of a minapolitan (fishery city), the Aceh Timur government focuses on increasing the production of aquaculture and wild fishery. The products are primarily sold in domestic and international market.

The production of wild fish catches from Idi Port is around 21,473.51 tons/annum and production from aquaculture is 10,485 tons/annum, including tilapia, catfish, milkfish, black tiger shrimp, white shrimp, fire shrimp and crabs.

In response to the increase of production from both wild fish catches and aquaculture in Idi Port, the following are potential investments:

1. Block ice factory 2.000 - 2.000 blocks/day

2. Fish Canning factory3. Promotion & research center

for fisheries 4. Docking facilities5. Central fish marketing and

distribution centre

Idi Fishing Port6.5.2

Facilities & Infrastructures CapacityJetty 1,600 M2

Break water 800 M3

Port pool 300 Ha

West-side discharge and load jetty 160 M2

East-side fish market 600 M2

West-side fish market 800 M2

Fish packing building 150 M2

Port management office 452 M2

Generator set housing 48 M2

Water tower 1 Unit

Port office 1 unit

West-side warehouse 8 unit

Warehouse forklift 1 unit

Workshop 1 unit

Culinary stall 22 unit

West-side mushalla (prayer room) 1 unit

Mess facilities 9 unit

Port car park 1 unit

Fuel station for fishing boats 2 unit

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


EAST ACEH

Idi Fishing Port

EASTACEH

Photo: Kuala Idi Fishing Port


Sawang Bau Fishing Port is located in Sawang Bau Village. It is the fish production center for South Aceh, with a total of 1.604 fishermen and 132 fishing boats. There are 60 boats 10 GT, and 78 non-motorized boats. The fishing gear used is purse saine and the main catches are skip jack and tuna. The facilities in Sawang Bau port are as follows:

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

Sawang BaU Fishing Port in South Aceh

6.5.3

FACILITIES CAPACITYPort Area 1.5 ha

Quay -

Jetty -

Breakwater 400 m

Pool Port 1.2 ha

Revetment 150 m

Groin

Fish market (TPI) 6 x 6 m

The following have potential for investment to develop Sawang Bau Fishing Port: 1. Block ice factory capacity 10 ton/day2. Fuel station for fishing boats3. Cold storage4. Docking facilities

Photo: Sawang Bau Fishing Port



SOUTH ACEH



Peudada Fishing Port in Bireuen

6.5.4

Bireuen District which located on the coast at the Malacca Strait is a strategic location for fisheries development. Besides abundant resources for aquaculture and wild fish catches, Bireuen district has the potentials for maritime development with a coastline 15 68 km long and a sea area around 1.511 km3. The potential for fisheries is about 34.600 ton/year, whilst the present exploitation is only 18.000 ton/year or only about 47%. Maximum Sustainable Yield (MSY) used is around 25.600 ton/year. Peudada Fish Landing Port (PPI) is the centre for fisheries development in Bireuen District. Geographically, it is located at 5.204078 North Latitude and 96.583872 East Longitude.

The investment potentials for the development of national Peudada Fish Landing Port (PPI) and Outer Ring Fishing Port Development (ORFoD) are as follows:

Fish Processing/Fish Canning Factory. Logistic supplies for Tuna Long-Line fishing boats Docking Facilities. Fuel station for fishermen. Cold Storage Facilities. Block Ice Factory. Warehouse for fish.

Location: Gampong Pulo, Peudada Sub District

Land Status: Government Land



Krueng Gekuh

River/Spring

Supported

Condition: Asphalt


Peudada Fishing Port

BIREUEN

Photo: Peudada Fishing Port Blue Print


Establishment 6,000 units of six holes high-density polyethylene (HDPE)

floating fish cage

PROJECT PURPOSE

INVESTMENT ESTIMATEUSD 80,000,000

GROUPER, SNAPPER AND LOBSTER

Teluk Dalam and Sefelak Island are the focus areas for sustainable aquaculture development on Simeulue Island. The highest potential fish species for cultivation/growing on are grouper, snapper and lobster. The fish hatchery (Balai Benih Pantai Simeuleu) can supply seedling fish particularly grouper casino, barramundi and clownfish. As for lobsters, most are taken from the sea.

Most fish production has been sold to Medan, North Sumatera via Susi Air, which then exported to Malaysia, Singapore, and other countries with net sales of lobster at USD 41.67/kg. In 2014, around 70 tons of fresh lobster was exported via Belawan Port, North Sumatera and 300 ton/year of grown-on grouper was exported to Hong Kong.

Simeulue Aquaculture Project

6.5.5


SIMEULUE

Photo: Simeulue Lobster


FACILITIES & INFRASTRUCTURES AT SINABANG BAY, FISH LANDING PORT (PPI)

Wholesale market Jetty for ship to 80 GT Docking for ship repairs and other

docking facilities for ship to 80 GT equiped with marine repairing small ship repair workshops.

Cold storage (capacity 80 tons) State Electricity Company (PLN) 165 kW

& backup generator capacity 186 kW Fresh water facilities Block Ice factory

Apart from the huge fish catching area, in the Indian Ocean, Simeulue District also has high potential for marine culture, with about 58,000 ha of suitable sea areas including two large bays, Teluk Dalam and Sibigo Bay.

The most common fish species found in Simeulue District are skip jack, mackerel, yellow fin tuna, tiger grouper, sunu grouper, lobster, crab, teripang, and seaweeds.

POTENTIAL INVESTMENT: 1. Block ice factory 2. Fish processing industries

Simeulue Fishing Port

6.5.6

Photo: Illustration


SIMEULUE

Photo: Simeulue Lobster


Indonesia has a vision to be the biggest seaweed producer in 2015. The target is to produced 10 million tons of seaweed in the next ten years. According to Seaweed Commission of Indonesia, there are several key stregthent to develop seaweed in Indonesia as follow;

The large coastline of Indonesia is very feasible for seaweed culture;

Easy to develop in a short time (45 days); Labor intensive, high market demand; High value-added as it is raw material for food

industry, pharmacy, cosmetics and others.

Indonesian seaweed has contributed to around 500 end products around the world. (http://mitrabisnissyariah.blogspot.com/2012/05/melirik-potensi-rumput-laut-aceh-budi.html)

Simeulue has been identified as a potential area for seaweed culture and processing. The investment opportunity is to develop seaweed culture system and post harvest management to produce high quality seaweed as raw material for industrial purpose.

Simeulue Seaweed Culture Project

6.5.7


PROJECT PURPOSETo develop seaweed culture in

Simeulue

INVESTMENT ESTIMATE

USD 3,073,083R/C: 3.5

BEP: 3,411

Photo: Illustration


Photo: Krueng Geukuh Sea Port

Detailed Plans forInfrastructure

and Energy

7

7.1.1 Banda Aceh Urban Railway7.1.1 Krueng Geukueh Seaport Project7.1.2 Kuala Langsa Seaport Project

7.1Detailed Plans for Insfrastructure (Railways & Seaports)


Photo: Malahayati Sea Port


Banda Aceh Urban Railway7.1.1

Aceh railway construction started in 1874 from Ulee Lheue and finished in 1917 at Pangkalan Susu (now in North Sumatera). The Aceh Railway was originally built for the benefit of the mobilization of military equipment with a track width of 750 mm and a length of 486 km. The construction costs reached 23 million Guiden. In 1974, the Aceh Railway stopped operating because of the high competition with other land transport and lack of spare parts.

Post tsunami disaster in Aceh, the French Government granted Pre-Feasibility Study for Aceh railway conducted by SNCF (Socit Nationale des Chemins de fer Franais) in 2015. The result of the Pre-FS study includes application of normal gauge (1435 mm) for intercity tracks, development of Banda Aceh urban railway lines and development of commuter line Lhokseumawe - Bireun.

According to Aceh Regional and Spatial Planning Article 18, railway development is to be focused on revitalization of the eastern coast and northern coastal railway line and on an urban railway for Banda Aceh.

The growth of population in Aceh has been increasing significantly and reached 5,437,120 in 2014, including Banda Aceh as the capital of Aceh Province and the central of governmental as well as economics and education activities. Therefore, it leads to the increasing numbers of passengers and goods from Medan and districts/cities in Aceh to Banda Aceh. In response to this, it is very necessary to initiate the development of Banda Aceh urban railway as a way to provide better service to people.

POTENTIAL SECTORS FOR INVESTMENT: 1. Study of Banda Aceh Urban Railway

Development Feasibility Study (FS) Detailed Engineering Design (DED) Environmental Impact Assessment

(EIA)2. Provision of Technical Assistance for

Railway Development in Aceh Province3. Human Resources Development for

Railway Construction, Operation and Maintenance

Short courses Internship Bachelor/Master degrees

PROPOSED RAIL ROUTE >


Banda Aceh Locomotive Monument


Krueng Geukueh Seaport Project7.1.2

Krueng Geukueh Port is managed by PT Pelabuhan Indonesia I (Persero) and located at Tambon Baroh in Dewantara Sub District, North Aceh. Geographically, the port is at 05 100 North Latitude and 97. 02.00 East Longitude. The Working Area of this Regional Port (DLKR) is 38 ha of land and around 10.941 Ha of water. The Region of Interest at this Ports Environment (DLKP) covers about 9.035 ha of water.

Krueng Geukueh Port has the total water area approximately 900,000 m2 with a depth of 10 m. LWS. It has potential to serve large ships that enter the port PT. Arun LNG, PT. ASEAN Fertilizer, PT. Pupuk Iskandar Muda and PT. KKA. Commodities that have been exported through this port since 1994 include LNG, condensate, fertilizer, ammonia, paper and betel nuts. The major exports were oil and gas (LNG)exported by PT Arun.


Kuala Langsa Seaport Project7.1.3

Kuala Langsa Port is a key for economic development in the eastern regions of Aceh (Langsa City, Aceh Tamiang District and East Aceh District, along with the central region of Aceh, Gayo Lues).

As the gateway for exports and imports for the surrounding area, the Kuala Langsa port could cooperate with the much larger port, Belawan Port in North Sumatra, to be an alternative port for when Belawan Port is overloaded.

The hinterland that support the Kuala Langsa covers an area of 14,805.24 km2, and is very rich with natural resources such as fisheries, plantations and farming (sea food, palm oil, rubber, cacao, areca, essential oils and coffee) plus energy & minerals (petroleum, natural gas, coal, lead, limestone and marble).

Export of crops from the east of Aceh via Belawan Port in North Sumatera requires extra transport costs. To reduce these extra costs, it will be better to optimaze use of Kuala Langsa Port. Furthermore, the government has provided 225 ha of land around the port which is feasible as a centre for processing industries for major commodities such as Crude Palm Oil (CPO).

TYPE OF SERVICE REMARKPilot Boat Available

Tug Boat Not Available

Freshwater Available

Traffic Loading and Unloading

12-15 Ton/Hour

TKBM Available

Port Operator PT. Pelabuhan Indonesia I (Persero)

Public ServiceEMKL 2

Freight Forwarder 2

Port State Control (PSC)

4

FACILITIESUNIT