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© 2016 by Indonesian Investment Coordinating Board. All rights reserved

Industrial Project Investment

Kuala Tanjung, North Sumatera

INVESTMENT-PRO

(Investment Project-Ready- to-Offer)

Business Schemes Offerings:Main processingDownstream productsPower PlantMaterial SupplyDistribution/Business ServicesJoin VentureEPC/Turn-key projects

Deputy of Investment PlanningDirectorate of Manufacturing Industry Planning

PROJECT BACKGROUND

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As first step of aluminum industrial cluster development, some project planning have been initiated and furthermore some potential partners have been as well consolidated. For some projects, join venture agreements (JVAs) have been reached and signed with certain

partners/shareholders. Currently, some feasibility studies (FSs) are on-

going , certain has finalized and some are still in conceptual study stages.

In the mean of improving efficiencies by logistically simplifying and managing supply-chain and also by diversifying to more value-added (downstream)

products , a globally competitive, cheaper energy and environmental friendly aluminum production base industrial cluster are to be established.

PROJECT DESCRIPTION

invest inThe project will have strong competitiveness where such production base will

be integrated with ports (planned logistic port and international hub

ports/IHP nearby), material supplies and utility systems. High purity molten aluminum will give high efficiency where no such metal re-melting is

needed. This will also ensure the high quality of downstream products.

With current (relatively low) Indonesian Aluminum Consumption per capita of

2 kg/capita,tremendous increase of demand is projected. By 2025, even at least consumption is tripled to

6 kg/capita, the

total capacity of 1 million T/yr is still lag behind forecasted domestic demand of 3 million T/yr

PROJECT LOCATION

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Kuala Tanjung aluminum industrial cluster development area (386.9 Ha) is

strategically located on the northern east shore of Sumatera, which is in Selat Malaka, one of world’s busiest strait (100 million TEUS are crossing each year). In 2017, this

zone will be connected with Medan-Tebing Tinggi Toll Road (1.5 hours trip from

Medan), logistic/passenger railroads from Medan (1.5 hour) and Sei-

Mangkei SEZ (1 hour). With port capacity of 500.000 TEUS/year (by 2018), and

IHP up to 60 million TEUS/year (2020), this region is ready to compete with any other port cities.

Kualanamu

International Airport

Hydro Power Plant

(PLTA) in Asahan

286 MW + 317 MW

Coal Power Plant

3x350 MW

Medan/Kualanamu-

Tebing Tinggi Toll Road

Logistic/passanger

railroad SEZ Sei

Mangkei-Medan-Kuala

Tanjung

Kuala Tanjung Port

Western Indonesia

International Hub Port

(IHP)

Supporting Infrastructures:

PROJECT PROFILES

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Current status of main aluminum smelting plant would be 100% ownership by

PT. Inalum ,anyhow some supporting business schemes are still widely open for partnerships or potential investors. Within the 1st phase, i.e. upgrading of current smelting plant and new smelter , feasibility studies have been conducted. For the 2nd phase, i.e. 500.000 t/yr smelting plant, any schemes of business ownerships

and partnerships are widely offered.

Western Indonesia InternationalKualanamu International Airport Port Hub (IPH)

Hydro Power Plant (PLTA) Kuala Tanjung Port in Asahan (286 MW +

Coal Power Plant Logistic/Passenger Rail Road3 x 350 MW Sei Mangke SEZ – Medan – Kuala

Tanjung

Medan – Kualanamu –Tebing Tinggi Toll Road

PROJECT PROFILES

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A. SMELTING PLANT EXPANSION

New Aluminum Smelter

Project Name: Aluminum Smelting Plant Expansion

Capacity: 500.000 T/yr - 300.000 T/yr (upgrading of current plant) - 200.000 T/yr (new smelter)

Product: Aluminum (hot metal or ingot)

Technical Specification: PBCF Hall –Heroult, Current ≥ 400kACurrent Eff. > 95%,DC < 13.000 kWH/Ton

Area : 200 Ha (include current smelter)

On-stream schedule:Q4 2019

Offered Business Schemes/Partnerships:Materials/machinery/technology suppliers, material handling, distribution, business services.

Current status of main aluminum smelting plant would be 100% ownership by

PT. Inalum ,anyhow some supporting business schemes are still widely open for partnerships or potential investors. Within the 1st phase, i.e. upgrading of current smelting plant and new smelter , feasibility studies have been conducted. For the 2nd phase, i.e. 500.000 t/yr smelting plant, any schemes of business ownerships

and partnerships are widely offered.

PROJECT PROFILES

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B. COAL POWER PLANTProject Name: Coal Power Plant

Capacity: 2 x 350 MW (Stage 1) 1 x 350 MW (Stage 2)

Product: electricity

Technical Specification: Fluidized Bed Combustion

Area : 90 Ha

On-stream schedule:Q4 2019

Offered Business /Financial Schemes/Partnerships:Loan/IPO/Obligation, coal supply, sub-contractors, material handling and transportation

For ownership of first 2x350 MW coal power plant, a join venture agreement (JVA) has been reached. This entity are then proposing further

financial schemes (loan/IPO/obligation), while conducting feasibility study for their

project. For the 1st and 2nd stages coal supplier (inc. material handling and

transportation) are at strong need. Another join venture scheme offering for the 2nd

stage are being proposed to private/state-owned local/foreign enterprises.

PROJECT PROFILES

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C. PORT EXPANSION

Project Name: Port Expansion

Capacity: 2 x 60.000 DWT 1 x 25.000 DWT

Services: Aluminum products /coal/smelter raw materials -loading/unloading.

On operation :Q3 2019

Offered Business Schemes:Engineering, procurement and construction (EPC)

Aluminum Smelter

Power Plant

PROJECT PROFILES

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D. ALUMINUM INDUSTRIAL CLUSTER

Project Name:Aluminum Industrial Cluster

Total Area: 58,8 Ha

Products: Aluminium downstream products (Billet, Alloy,Slab-Sheet, Ekstrusi, Wire rod, Auto part)

Business schemes offerings Infrastructures/utilities provider:transportation system, water, waste management, drainage, electricity, telecommunication

PROJECT PROFILES

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E. R&D CENTER/POLYTECHNIC & RESIDENTIAL AREA

Project Name:R&D Center /Polytechnic & Residential Area

Total Area: 38.06 Ha

Business schemes offerings Infrastructures/utilities provider:transportation system, water, waste management, drainage, electricity, telecommunication

PROJECT PROFILES

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F. COKE CALCINATION PLANT

Project Name:Coke Calcination Plant

Area: 7 Ha

Capacity:2 x 100.000 T/yr

Product:Calcined Petroleum Coke (CPC)

Business schemes offerings: Infrastructures/utilities provider, distribution/material handling,.

On-Stream Schedule:Q4 2018

Currently, CPC as one of main raw materials for anode bars in the

reduction pots for aluminum production are still imported or purchased from

production base in Surabaya, East Java. By building the CPC plant inside the complex, which is also approaching the source of petroleum coke in Dumai, Riau, high cut-off of transportation cost will be achieved. Careful material handling, transportation and environmental protection will be at top priority.

PROJECT SCHEDULING

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MAIN ACTIVITY PLANNING of 1st STAGE (2015-2020)

PROJECT NAME ACTIVITY

Smelting Plant Expansion

• FS & DED• Permits• Construction & COD

Coal Power Plant • FS & DED• Permits• Construction & COD

Port Expansion • FS & DED• Permits• Construction & COD

Aluminum Industrial Cluster

• FS & DED• Permits• Construction & COD

R&D Center/Polytechnic & Residential Area

• FS & DED• Permits• Construction & COD

Coke Calcination Plant • FS & DED• Permits• Construction & COD

FS : Feasibility StudyDED : Detailed Engineering DesignCOD : Commercial Operation Date

GOVERNMENT SUPPORT

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Form of Supports Note

Land Utilization Rights (HPL) State Capital Support/Penyertaan Modal Negara (PMN)

Coal Supply As main energy and raw material sources will be secured along project lifetime.

Permits and Licensing Accelerated, simple and transparent: 3 Hour Investment Permits (II3J)Direct Construction Permits (KLIK)

Fiscal Incentives • Tax holiday/tax allowance• Customs/import facilities for machinery or materials

Inner zone infrastructures • Roads• Rail tracks: passengers/containers/hot metal • Power Plants: PPP Initiatives

CONTACT US

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Deputy of Investment Planning

Directorate of Manufacturing Industry Planning

Jl. Gatot Subroto No. 44

Suhartoyo Building, 8th Floor

Jakarta 12190

Phone/Fax: (021) 520.7022

Contact Person : titi.rakhmayanti@bkpm.go.id

Planning Manager

Strategic Planning Department

PO. Box 1 Kuala Tanjung 21257

Kab. Batu Bara, North Sumatera

Phone/Fax: (0622) 31311 ext 4301 / 31001