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Indonesia Investment Opportunities in Lifestyle and Tourism Industry Culinary & Cafe | Cinemas | Fashion | Spa & Sport Center | Digital Industry | 10 Tourism Destinations

Provided for Regional Investment Forum (RIF), –, 14-15 March 2018 INDONESIA ECONOMIC OUTLOOK WHY INDONESIA GDP Ranking 2016 GDP Ranking 2016, PPP Growth of lifestyle, digital era & tourism (in US$ billion) (in US$ billion) among the rise of Middle Class United States 18,624 China 21,451 , China 11,199 United States 18,624 Joko Widodo reiterated Japan 4,940 India 8,718 that nowadays Indonesia is Germany 3,478 Japan 5,267 entering lifestyle and digitalization era. Lifestyle United… 2,648 Germany 4,041 era is driven by the rise of France 2,465 Russian Federation 3,397 middle class, in the world India 2,264 Brazil 3,147 and Indonesia. Italy 1,859 Indonesia 3,037 According to McKinsey, by 2030 Indonesia will be home to an Brazil 1,796 2,828 estimated 90 million additional consumers with considerable Canada 1,530 France 2,774 spending power, enabling Indonesia’s consuming class stronger Korea, Rep. 1,411 Italy 2,324 than any other countries in the world apart from China and India. Russian… 1,283 Mexico 2,280 These is a signal for international business to consider new Spain 1,237 Turkey 1,941 opportunities in Indonesia. Australia 1,205 Korea, Rep. 1,832 World Bank also highlighted that following a massive reduction in Mexico 1,047 Saudi Arabia 1,760 Indonesia’s poverty rate in the last two decades, one in every five Indonesia 932 Spain 1,693 Indonesians now belongs to the middle-class group. Another 45 Iran, Islamic Rep. percent are part of an aspiring group who are no longer poor or Turkey 864 1,605 vulnerable to poverty, and members of this “aspiring class” have 777 Canada 1,598 yet to reach the level of economic security and lifestyle of the Switzerland 669 Thailand 1,167 middle class. Saudi Arabia 646 Australia 1,129 Source: World Bank, 2018 Source: World Bank, 2018 3 Indonesia in 2050 th th GDP at PPP Rangkings (Projection for 2030 and 2050) Indonesia rises from 8 in 2016 to 4 in 2050. 2016 2030 2050 Rebecca Harding, CEO of Delta Economics predicted that after PPP Rank GDP at PPP Projected GDP Projected GDP at Country Country Country around 2018, growth could get back on track both in China and (2016 US$bn) at PPP(US$bn) PPP(US$bn) in emerging Asia more generally, in part because China will be 1 China 21,269 China 38,008 China 58,499 pushing its productive capacity into other lower cost places like 2 United States 18,562 United States 23,475 India 44,128 3 India 8,721 India 19,511 United States 34,102 Vietnam, Indonesia, the Philippines and maybe also Myanmar. 4 Japan 4,932 Japan 5,606 Indonesia 10,502 5 Germany 3,979 Indonesia 5,424 Brazil 7.540 According to PWC analysis (PWC, 2015), western companies will 6 Russia 3,745 Russia 4,736 Russia 7,131 likely see a change in the way they do business in the Asian 7 Brazil 3,135 Germany 4,707 Mexico 6,863 region. Rising costs will mean that many off-shored jobs are likely 8 Indonesia 3,028 Brazil 4,439 Japan 6,779 to exit China over time and move to other cheaper economies United such as Vietnam, Bangladesh, Philippines and Indonesia, whilst 9 2,788 Mexico 3,661 Germany 6,138 Kingdom Chinese exporters will find themselves competing more on the United 10 France 2,737 3,638 United Kingdom 5,369 basis of quality rather than price in their key US and EU export Kingdom market. Source: How will the global economic order change by 2050, PwC, 2017 World Bank’s Economic Growth Projection Indonesia in 2045 Country 2017 2018 2019 2020 Demographics China 6.8 6.4↓ 6.3↓ 6.2↓ • Population 309 million Cambodia 6.8 6.9↑ 6.7↓ 6.7 • Working- age population: 52% Philippines 6.7 6.7 6.7 6.5↓ • Urban population: 75% Vietnam 6.7 6.5↓ 6.5 6.5 • Laos 6.7 6.6↓ 6.9↑ 6.9 Middle class population: 80% Myanmar 6.4 6.7↑ 6.9↑ 6.9 Economy 5.8 5.2↓ 5.0↓ 4.7↓ • Income per capita : US$ 29,300 Indonesia 5.1 5.3↑ 5.3 5.3 • Share economy from service Fiji 3.8 3.5↓ 3.3↓ 3.2↓ sectors: 73% Thailand 3.5 3.6↑ 3.5↓ 3.4↓ Source: World Bank, 2018 4 WHY LIFESTYLE INDUSTRY Mckinsey research shows Indonesian consuming class will grow almost double in 10 years since 2010 Indonesian consumption shifting not only 265 280 280 spending on goods (non-leisure), but also to 240 145 110 experience… 180 Bellow 195 The rise of Indonesia’s middle class is already affecting Indonesian Consuming class 135 170 lifestyle, and changing their spending behavior. Nowadays, 85 Indonesian consumption shifting from goods (non-leisure) to Consuming class 45 experience (leisure economy) (Head of BPS, 2017). The drivers of 2010 20203 2030 in 5-6% 2030 in 7% GDP leisure economy in Indonesia are: GDP scenario scenario Additional people in 40 90 125 . Consumption as lifestyle The consuming class . From goods to experience . More stress, more travelling INDONESIAN MIDDLE CLASS SPENDING (US$ BILLION) . Low cost tourism 2011 2030 . And e-travel effect… Financial services 85 565 Food and beverage 73 194 In lifestyle era, national economic growth can be driven by Leisure 26 105 commodity lifestyle (for example coffee, cacao, cinnamon, palm Apparel 22 57 sugar, nutmeg, textile and apparel, cosmetics, furniture, etc.) and Education 14 42 services lifestyle (such as tourism, entertainment, wellness, Transportation 13 30 restaurant) (Chairman of BKPM, 2017). Housing and utilities 11 26 Source: Canback Global Income Distribution Telecommunications 8 19 Database; Indonesia’s Central Bureau of Statistics, Beauty and cosmetics 6 16 Mckinsey Consumer and Shopper Insight Indonesia Study, 2011, Mckinsey Global Growth Model; Health care 4 13 Mckinsey Global Institute analysis 5 CREATIVE ECONOMY & LIFESTYLE INDUSTRY OUTLOOK CREATIVE ECONOMY OUTLOOK CREATIVE ECONOMY INDONESIA 2016 Contribution on Creative Economy is dominated by 3 largest sector such as Culinary, Fashion and Craft, representing 74,81% of total Contribution to Indonesian GDP (in IDR Trillion) creative economy 7,44% 7,39% 1.86 7,43% 922.59 0.17 7,42% 852.56 7,41% 784.87 8.27 7,43% 708.27 Culinary 7,66% 638.39 581.54 Fashion 525.96 15.4 Craft 41.4 TV & Radio App & Game Developer Film, Animation, & Video 18.01

2010 2011 2012 2013 2014 2015 2016

Indonesia is the 3rd largest country contributors on creative economy to GDP in 2016 Top 5 Largest Province (Share of Total Creative Economy) 1 Yogyakarta 16,12%

United States of America South Korea Russia 2 12,57% Indonesia Philippines Canada 11,12 % 8,67% 7,44% 6,06% 5,70% 4,92% 4,50% 3 West 11,81% 4 9,37%

5 North Sumatera 4,47% Source: BEKRAF, 2018 7 CREATIVE ECONOMY OUTLOOK CREATIVE ECONOMY INDONESIA 2016 Top 5 Export Destinations Distribution of Creative Business in Indonesia (Total: 8,2 million creative business in 2016) Export # Country (in US$ Billion) Sumatera , & United States of 1 6,04 17.94% 6,53% America 4,95% 2 Switzerland 2,08 3 Japan 1,35 4 Singapore 1,22 5 Germany 0,88

Bali & Nusa Tenggara Java 5,21%% 3,23% 65,37% Export Growth In 2016 (US$ 20 billion)

Indonesia Key labor market indicators

February August February August February August Key Indicators 2013 2013 2014 2014 2015 2015 Labor Market in Creative Total Population (millions) 247,7 249,4 251 252,7 254,4 256 Economy Population aged 15 years and over (millions) 178,1 180 181,2 183 184,6 186,1 • Manpower 16,91 million Economically active (millions) 123,2 120,2 125,3 121,9 128,3 122,4 people (14,26%) Employed (millions) 115,9 112,8 118,2 114,6 120,8 114,8 Employment to Population Ratio (%) 65,15 62,70% 65,20% 62,60% 65,50% 61,70% Source: ADB, 2016 Source: BEKRAF, 2018 8 Indonesia Abundant of 1 Lifestyle Commodity Lifestyle Commodities Chocolate remain the most favorite snack in the world

I want to emphasize that lifestyle Rank Snacks Global Average commodity plays an important part in 1 Chocolate 69% the lifestyle industry. Nowadays; we 2 Fresh Fruit 62% have coffee, we have cocoa - President Joko Widodo. 3 Vegetables 52% 4 Cookies/Biscuits 51% 5 Bread/Sandwich 50% 6 Yogurt 50% 7 Cheese 46% Global demand for cocoa is on the rise due to the rising demand from 8 Chips/Crips 44% new market such as India and China. 9 Nuts/Seeds 41% 70% of Indonesia’s total cocoa production comes from . 10 Gum/Ice Cream 33% Source: Nielsen, 2014 The market started to grow beyond people who were just needs-based and into a lifestyle choice. Production of cocoa beans in Indonesia from 2012/2013 to 2016/2017 (in 1000 tons)

th 410 Indonesia is the 3 Largest Cocoa producer with 375 annual capacity around 770,500 metric tons. 325 320 330

Indonesia is the 4th Largest Coffee producer with annual capacity around 660,000 metric tons 2012/2013 2013/2014 2014/2015 2015/2016* 2016/2017**

Source: Statista, 2018 10 Indonesia: Paradise of Specialty Coffee

Top 10 Coffee Producer Arabika Gayo Capacity # Province Million Tons 1 South Sumatera 129.7 Arabika Lintong Arabika Mandailing 2 128 Arabika Solok 3 North Sumatera 54.9 Robusta Masurai Liberika Liberika Arabika Arabika 4 East Java 53.4 Pangkalan Bun Mamasa Napu Arabika Robusta Arabika 5 Bengkulu 49.2 Arabika Robusta Kepahiang Liwa Papua 6 47 Enrekang Arabika Arabika Robusta 7 South Sulawesi 34.9 Dieng Karawang Arabika Arabika Arabika 8 West Sumatera 29.1 Robusta & Java Preanger Kintamani 9 East Nusatenggara 18.5 Arabika Cibulao Arabika Arabika Arabika 10 15.3 Bowongso Temanggung Argopuro

Besides the production of regular coffee, Indonesia also produces several specialty coffees. Most famous of these specialties are luwak coffee (kopi luwak), Toraja coffee, Aceh coffee and Mandailing coffee.

Luwak coffee is possibly the most famous type of coffee as it is known as the world's most expensive coffee. It is brewed from beans that have passed through the digestive system of the Asian palm civet (catlike animal). Due to this special fermentation process inside the animal (and due to the fact that the civet is able to select the juiciest coffee cherries) this coffee is believed to have a richer tastIts labor-intensive production process and scarcity on the international market cause its expensive price. e.

Today, Indonesia's coffee plantations cover a total area of approximately 1.24 million hectares, 933 hectares of robusta plantations and 307 hectares of arabica plantations. More than 90 percent of total plantations are cultivated by small-scale growers who own relatively small plantations of about 1-2 hectares, each. 11 Investment opportunities Restaurant & Modern Culinary Industry Data of Food Service Outlets in 2016 Outlets Sales (IDR Billion) Business Overview Cafes and bars . Culinary become the largest contributors of creative industries toward Specialist coffee shop 1,086 3,111 Indonesia’s gross domestic production in 2015. Café / Bars 5,106 30,219 . Indonesia’s middle class is expected to rise from 68.4% of total population Full-service restaurants in 2015 to 76.1 % by 2020. Asian 97,988 380,716 . A study by Nielsen showed that 11% of Indonesian citizens eat out at least once a day; this is higher than the global average of 9%. European 398 4,721 Latin American 49 442 Having culinary in Indonesia is one of the most vibrant and colorful cuisines Middle Eastern 65 494 experience in the world, full of intense flavor. Throughout its history, Spanish North American 906 592 and Portuguese traders brought New World produce even before the Dutch Pizza 499 4,976 came to colonize most of the archipelago. The Indonesian The Others 635 6,326 Moluccas (Maluku), which are famed as "the Spice Islands", also contributed Fast Food to the introduction of native spices, such as cloves and nutmeg, to Indonesian Asian 1,512 6,426 and global cuisine. Bakery products 1,070 2,141 Burger 613 4,847 Meanwhile, in line with the growth of tourism and Indonesia’s growing middle Chicken 1,279 6,728 class, there is also strong demand for western, Japanese and Korean products Convenience Store 1,136 567 in Indonesia, particularly as more people associate them with quality, Ice cream 493 438 consistent availability, and healthy lifestyles. This is exemplified by the growth Middle Eastern 26 42 of Japanese and Korean restaurants throughout Indonesia. Source: Euromonitor, 2017 12 Investment opportunities Restaurant & Modern Culinary Industry Regulation on foreign ownership related to restaurant, café, food & beverage industry Indonesia Investment Trend in last 5 Years Restaurant, Café, Other Food Service (US$ Million) BUSINESS BUSINESS FIELD REMARKS CLASIFICATION (KBLI) FDI: US$ 306.5 (87%) 128.6 DDI: US$ 44.3 (13%) Restaurant & Cafe 56101 Maximum 100% foreign investment 76.0 Food industry and processed food 10750 Maximum 100% foreign investment 48.2 industry 28.6 28.1 16.2 4.1 2.7 3.4 Catering 56210 a. Maximum 67% foreign investment 8.9 0.1 5.9 b. Maximum 70% foreign investment by ASEAN 2012 2013 2014 2015 2016 2017 Countries FDI DDI Liquor wholesale trade (importer, 46333 Must have: distributor, and sub-distributor), Liquor 47221 a. Business license certificate of Liquor (SIUP-MB) Source: BKPM, 2018 retail business, Sidewalk vendor liquor 47826 b. Distribution network and specific place Country Source Investment business # Project of FDI (US$ Million) Source: Negative List of Investment (Presidential Regulation No. 44 Year 2016) 1 Singapore 77.6 683 Quick facts on the restaurant industry in Indonesia: 2 South Korea 62.3 387 • Fast food franchises are appropriate for customers in all income groups because they offer affordable prices, creative 3 British Virgin Islands 48.9 525 menus, child-friendly menus & facilities, and delivery services for time sensitive customers. • Restaurants are found in shopping malls, apartment buildings, hospitals, schools, office buildings, freeway rest areas, 4 Japan 25.1 168 airports, recreational parks and residential areas. 5 Australia 15.3 118 • Convenience store expansion increases the probability of selling imported food and beverages products. 6 US America 6.9 43 • Bakery businesses are growing in popularity in and throughout major urban areas, and it has become a status 7 Malaysia 6.6 56 symbol among Indonesian artists to own a trendy bakery. • Gathering, entertaining and socialization in restaurants is growing. Eating out is a common activity across all socio- 8 France 6.4 78 economic levels, especially amongst families on weekends. 9 Italy 5.8 72 • Social media is a very popular means of publicizing foodservice information targeting young customers. 10 Netherland 5.8 35 13 2 Fashion Industry Investment opportunities Fashion Industry Top 10 Exporters of Clothing Top 10 Importers of Textiles No Country Export No Country Import Business Overview (US$ Billion) (US$ Billion) Sumatera, Java and Bali have become 1 China 161 1 EU 69 manufacturing center for global fashion brands 2 EU 117 2 USA 29 Indonesian Government has set the target to increase 3 Bangladesh 28 3 China 17 the nation’s value of exported textile and apparel to 4 Viet Nam 25 4 Viet Nam 13 $13,5 billion in 2018 and $ 15 billion in 2019. 5 India 18 5 Japan 6 6 16 6 Hong Kong 7 7 Turkey 15 7 Bangladesh 7 According to McKinsey, the size of the global apparel 8 Indonesia 7 8 Mexico 6 business is growing and is expected to generate double 9 Cambodia 6 9 Turkey 6 digit growth between now and 2020. 10 USA 6 10 Indonesia 6 Source: WTO Asian consumers, who are migrating into the middle class Quick facts on the fashion industry in Indonesia: and starting to view clothes as an extension and • The advantage of manufacturing in Indonesia is the great mix of fashion, price and expression of their new lifestyle. sustainability (Head of Production H&M ‘s Global) • Indonesian Government is proposing free trade agreement with Australia and EU. These consumers are also increasingly travelling – and • , Central Java, East Java, Bali, Sumatera and Yogyakarta are the textile and shopping – abroad. textile product centre. • More than 87% of Indonesian population is Muslim, and muslimwear in Indonesia is on the rise. By 2020, foreign spending of Asian-Pacific residents • 30% of total SMEs in Indonesia is muslimwear produce ( There are over 750,000 SMEs) • One of rising e-commerce for Indonesian muslimwear is Hijup.com which having 200 outside of their home countries will triple, totaling $600 designers and customer base in 100 countries. billion. • Indonesian government has set up to develop 4 priority industry such as food & beverage, textile & apparel, otomautomotive, electronics and chemical. 15 Investment opportunities Fashion Industry Regulation on foreign ownership related fashion industry

BUSINESS CLASIFICATION Indonesia Investment Trend 2013 - 2017 BUSINESS FIELD REMARKS (KBLI) Textile & Apparel Industry (US$ Million)

Spinning & Processing of Textile 1311 Maximum 100% foreign FDI: US$ 3,85 B (4%) Fibers Industry investment 969 DDI: US$ 1,46 B (46%) 936 Artificial Fiber Industry 2030 Maximum 100% foreign 648 681 investment 619 606 Apparel Industry 1411 Maximum 100% foreign FDI investment DDI 261 226 231 Other Textile Industry 1399 Maximum 100% foreign 137 investment Textile Finishing Industry 1313 Maximum 100% foreign investment 2013 2014 2015 2016 2017 Textile Goods (not including 1392 Maximum 100% foreign apparel) industry investment Top 5 Source of FDI (2013 -2017) Textile, clothing and footware 4641 Maximum 100% foreign trading investment Knitting industry 1391 Maximum 100% foreign investment Textile Weaving Industry 1312 Maximum 100% foreign investment Singapore British Virgin Japan South Korea Netherland Knitwear and embroidery 1430 Maximum 100% foreign industry investment USD 940 M USD 484 M USD 389 M USD 387 M USD 218 M

Source: BKPM, 2018

16 Cost Structure of Textile Industry in Indonesia STRUCTURE OF TEXTILE & APPAREL INDUSTRY

Source: Indonesia Textile Association

17 Provincial Minimum Wage (UMP) in 2018 Based on Government Regulation (PP) No. 78 Year 2015 No Province Rupiah US $ No Province Rupiah US $ 1 Aceh 2,717,750 202.8 18 Nusa Tenggara Barat 1,825,000 136.2 2 Sumatera Utara 2,132,188 159.1 19 Nusa Tenggara Timur 1,660,000 123.9 3 Sumatera Barat 2,119,067 158.1 20 Kalimantan Barat 2,046,900 152.8 4 Bangka Belitung 2,755,443 205.6 21 Kalimantan Selatan 2,454,671 183.2 5 Kepulauan 2,563,875 191.3 22 Kalimantan Tengah 2,421,305 180.7 6 Riau 2,464,154 183.9 23 Kalimantan Timur 2,543,331 189.8 7 Jambi 2,243,718 167.4 24 Kalimantan Utara 2,559,903 191.0 8 Bengkulu 1,888,741 141.0 25 2,206,813 164.7 9 Sumatera Selatan 2,595,995 193.7 26 Sulawesi Utara 2,824,286 210.8 10 Lampung 2,074,673 154.8 27 Sulawesi Tengah 1,965,232 146.7 11 2,099,385 156.7 28 Sulawesi Tenggara 2,177,052 162.5 12 DKI Jakarta 3,648,035 272.2 29 Sulawesi Selatan 2,647,767 197.6 13 Jawa Barat 1,544,360 115.3 30 Sulawesi Barat 2,193,530 163.7 14 Jawa Tengah 1,486,065 110.9 31 Maluku 2,222,220 165.8 15 Yogyakarta 1,454,154 108.5 32 Maluku Utara 16 Jawa Timur 1,508,894 112.6 33 Papua 2,895,650 216.1 17 Bali 2,127,157 158.7 34 Papua Barat 2,667,000 199.0

Highest Lowest 1 US$ = Rp. 13,400 (2018 Macro Economic State Budget Assumption)

18 Regional Minimum Wage (UMK) in 2018 WEST JAVA

No Regency / City Rupiah US $ No Regency / City Rupiah US $

1 Kabupaten Majalengka 1,658,514 123.8 15 Kabupaten Sukabumi 2,583,556 192.8 2 Kota 1,893,383 141.3 16 Kota Sukabumi 2,158,430 161.1 3 Kabupaten Cirebon 1,873,701 139.8 17 Kabupaten Cianjur 2,162,366 161.4 4 Kabupaten Kuningan 1,606,830 119.9 18 Kota Bandung 3,091,345 230.7 5 Kabupaten Indramayu 1,960,301 146.3 19 Kabupaten Bandung 2,678,028 199.9 6 Kabupaten Garut 1,672,947 124.8 20 Kabupaten Bandung Barat 2,683,277 200.2 7 Kabupaten Tasikmalaya 1,920,937 143.4 21 Kabupaten Sumedang 2,678,028 199.9 8 Kota Tasikmalaya 1,931,435 144.1 22 Kota Cimahi 2,678,028 199.9 9 Kabupaten Ciamis 1,604,334 119.7 10 Kota Banjar 1,562,730 116.6 23 Kota 3,915,383 292.2 11 Kabupaten 1,558,793 116.3 24 Kabupaten Bekasi 3,837,939 286.4 12 Kota Depok 3,584,700 267.5 25 Kabupaten Karawang 3,919,291 292.5 13 Kabupaten Bogor 3,483,667 260.0 26 Kabupaten Purwakarta 3,445,616 257.1 14 Kota Bogor 3,557,146 265.5 27 Kabupaten Subang 2,529,759 188.8

Based on Government Regulation (PP) No. 78 Year 2015 Highest Lowest 1 US$ = Rp. 13,400 (2018 Macro Economic State Budget Assumption)19 Regional Minimum Wage (UMK) in 2018 CENTRAL JAVA

No Regency / City Rupiah US $ No Regency / City Rupiah US $ 1 Kota 2,310,087 172.4 20 Kabupaten 1,742,000 130.0 2 Kabupaten Demak 2,065,490 154.1 21 Kabupaten Purworejo 1,573,000 117.4 3 Kabupaten Kendal 1,929,458 144.0 22 Kabupaten Temanggung 1,557,000 116.2 4 Kabupaten Semarang 1,900,000 141.8 23 Kabupaten 1,585,000 118.3 5 Kota 1,735,930 129.5 24 Kabupaten 1,560,000 116.4 6 Kabupaten Grobogan 1,560,000 116.4 25 Kabupaten Banyumas 1,589,000 118.6 7 Kabupaten Blora 1,564,000 116.7 8 Kabupaten Kudus 1,892,500 141.2 26 Kabupaten Cilacap 1,841,000 137.4 9 Kabupaten Jepara 1,739,360 129.8 27 Kabupaten Banjarnegara 1,490,000 111.2 10 Kabupaten Pati 1,585,000 118.3 28 Kabupaten Purbalingga 1,655,200 123.5 11 Kabupaten Rembang 1,535,000 114.6 29 Kabupaten Batang 1,749,900 130.6 12 Kabupaten Boyolali 1,651,650 123.3 30 Kota 1,765,178 131.7 13 Kota 1,668,700 124.5 31 Kabupaten Pekalongan 1,721,637 128.5 14 Kabupaten Sukoharjo 1,648,000 123.0 32 Kabupaten Pemalang 1,588,000 118.5 15 Kabupaten Sragen 1,546,492 115.4 33 Kota 1,630,500 121.7 16 Kabupaten Karanganyar 1,696,000 126.6 34 Kabupaten Tegal 1,617,000 120.7 17 Kabupaten Wonogiri 1,524,000 113.7 18 Kabupaten Klaten 1,661,632 124.0 35 Kabupaten Brebes 1,542,000 115.1 19 Kota Magelang 1,580,000 117.9 Based on Government Regulation (PP) No. 78 Year 2015 Highest Lowest 1 US$ = Rp. 13,400 (2018 Macro Economic State Budget Assumption)20 Regional Minimum Wage (UMK) in 2018 EAST JAVA

No Province Rupiah US $ No Province Rupiah US $ 1 Kota 3,583,312 267.4 21 Kabupaten Lumajang 1,691,041 126.2 2 Kabupaten Gresik 3,580,370 267.2 22 Kabupaten Tulungagung 1,671,035 124.7 3 Kabupaten Sidoarjo 3,577,428 267.0 23 Kabupaten Bondowoso 1,667,505 124.4 4 Kabupaten Pasuruan 3,574,486 266.8 24 Kabupaten Bangkalan 1,663,975 124.2 5 Kabupaten Mojokerto 3,565,660 266.1 25 Kabupaten Nganjuk 1,660,444 123.9 6 Kabupaten 2,574,807 192.1 7 Kota Malang 2,470,073 184.3 26 Kabupaten Blitar 1,653,383 123.4 8 Kota Batu 2,384,167 177.9 27 Kabupaten Sumenep 1,645,146 122.8 9 Kabupaten Jombang 2,264,135 169.0 28 Kota Madiun 1,640,439 122.4 10 Kabupaten Tuban 2,067,612 154.3 29 Kota Blitar 1,640,439 122.4 11 Kota Pasuruan 2,067,612 154.3 30 Kabupaten Sampang 1,632,201 121.8 12 Kabupaten Probolinggo 2,042,900 152.5 31 Kabupaten Situbondo 1,616,903 120.7 13 Kabupaten Jember 1,916,983 143.1 32 Kabupaten Pamekasan 1,588,660 118.6 14 Kota Mojokerto 1,886,387 140.8 33 Kabupaten Madiun 1,576,892 117.7 15 Kota Probolinggo 1,886,387 140.8 34 Kabupaten Ngawi 1,569,832 117.2 16 Kabupaten Banyuwangi 1,881,680 140.4 17 Kabupaten Lamongan 1,851,083 138.1 35 Kabupaten Ponorogo 1,509,816 112.7 18 Kota Kediri 1,758,117 131.2 36 Kabupaten Pacitan 1,509,816 112.7 19 Kabupaten Bojonegoro 1,720,460 128.4 37 Kabupaten Trenggalek 1,509,816 112.7 20 Kabupaten Kediri 1,713,400 127.9 38 Kabupaten Magetan 1,509,816 112.7

Based on Government Regulation (PP) No. 78 Year 2015 Highest Lowest 1 US$ = Rp. 13,400 (2018 Macro Economic State Budget Assumption)21 Indonesia Cinema 3 & Film Industry Investment opportunities Indonesia Economy Indonesia Cinema & Film Industry Creative Board (BEKRAF) has set up the target to Business Overview build 5000 cinemas with • By 2030, 135 million consuming class offer USD105 20.000 screen in 5 years. billion market in entertainment. • Box office market is increasing, the 16th largest in the world (USD300 million). • 0.4 screen per 100,000 population, compared to China Total Regency / City have access to Cinema (1.8) and India (0.9). 79 • Screens are not well distributed, 87% of screens are In 2017, around 61 42,7 million located in Java Island. 48 52 • More than 50 companies in film making and 30 audiences companies in animation. watching movie • More Indonesian films get global recognitions and in cinemas. attract millions of viewers. 2014 2015 2016 2017 Market Share of Existing Cinema in Indonesia Up to 2017, total cinema in Indonesia is accounted for 263 • Cinema XXI (Market Share : 62.7% ) cinemas with 1.412 screens located in 29 Provinces or 79 • CGV Blitz (Market Share : 14%) regency/city. • Cinemaxx(Market Share : 10.2%) Only 15% of total regency/city (515 regency/city) in • New Star (Market Share : 3.4%) • Platinum Cineplex (Market Share : 2.6%) Indonesia has access to cinema. Nearly 70% of Indonesian • Movimax (Market Share: 0.07%) cinema is located in Java island. • Independent Cinema (Market Share : 6%) * Market share is accounted from total cinema from each brand compared with total cinema in Source: filmindonesia.or.id Indonesia 23 Investment opportunities Indonesia Cinema & Film Industry 50+ 30+ Professional Movie Production Professional Animation Production House as a potensial partner House as a potential partners • Nayfosindo • PH Motion Pic • Infinite studio • Castle Production • 25frames • ABE Production • Mocca animation • TPI Animation Studio • Blessings • Orion Films • DGM animation • Rumah Animasi • 7 Sunday • Pirates • Hompimpa Studio • PT Digital Maxinema • Visual Farm • PH Hydra • Artlogic Games • Manimonki Studios • Kemistry • Netracom • Limitles CG • EPIX • Plush Pictures • BSP • Furyco Studio • Lumine Studi • Applebox • Gravity • Supreme VFX • MNC Animation • Squarebox • Nacatha • Kumata Studio • Biznet Studio • Multivision • Believe • Kartenz Studi • Enspire • Sinemart • Rapi film • HJ Production • Pawitra Studio • Soraya Film • MD entertainment • Main Studio • Hicca Studios • Miles Film • etc • Lautan Animasi • etc

24 Investment opportunities Indonesia Cinema & Film Industry Top-20 international box office market(not including USA & Canada) 2013 2014 2015 2016 No Box Office Box Office Box Office Box Office Negara Country Country Country (USD Milyar) (USD Milyar) (USD Milyar) (USD Milyar) 1 China 3,6 China 4,8 China 6,8 China 6,6 2 Japan 2,4 Japan 2,0 UK 1,9 Japan 2,0 3 UK 1,7 France 1,8 Japan 1,8 India 1,9 4 France 1,6 UK 1,7 India 1,6 UK 1,7 5 India 1,5 India 1,7 South Korea 1,5 France 1,6 6 South Korea 1,4 South Korea 1,6 France 1,4 South Korea 1,5 7 Russia 1,4 Germany 1,3 Germany 1,3 Germany 1,1 8 Germany 1,3 Russia 1,2 Australia 0,9 Australia 0,9 9 Australia 1,1 Australia 1,0 Mexico 0,8 Mexico 0,8 10 Mexico 0,9 Mexico 0,9 Russia 0,7 Brazil 0,7 11 Brazil 0,9 Brazil 0,8 Italy 0,7 Italy 0,7 12 Italy 0,8 Italy 0,8 Brazil 0,6 Russia 0,7 13 Spain 0,7 Spain 0,7 Spain 0,3 Spain 0,7 14 Argentina 0,4 Netherlands 0,3 Argentina 0,3 Netherlands 0,3 15 Netherlands 0,3 Turkey 0,3 Netherlands 0,3 Indonesia 0,3 16 Turkey 0,3 Venezuela 0,3 Indonesia 0,3 Taiwan 0,3 17 Taiwan 0,3 Argentina 0,2 Taiwan 0,3 Argentina 0,3 18 Sweden 0,2 Sweden 0,2 Hong Kong 0,3 Hong Kong 0,3 18 Switzerland 0,2 Taiwan 0,2 Turkey 0,2 Poland 0,2 20 Malaysia 0,2 Indonesia 0,2 Switzerland 0,2 Turkey 0,2

Source: MPAA 25 Investment opportunities Indonesia Cinema & Film Industry Ownership relaxation related to Film and Cinema Industry

BUSINESS FIELD BUSINESS CLASIFICATION (KBLI) REMARKS

Motion picture, video and television programme production activities 5911 Maximum 100% foreign investment Motion picture, video and television programme post-production activities 5912 Maximum 100% foreign investment Motion picture, video and television programme distribution activities 5913 Maximum 100% foreign investment Motion picture projection activities 5914 Maximum 100% foreign investment

Source: Negative List of Investment (Presidential Regulation No. 44 Year 2016) Taxation in Film Industry Top 5 Source of FDI (2013 -2017) Activities Phase Tax Indonesia Investment Trend 2013 - 2017 Realization # Country Source of FDI Cinema & Film Industry (US$ Thousand) (in US$ Thousand) Production Pra Production VAT (PPn) 1 Singapura 39.192 Production VAT on Luxury Goods Realization: US$ 41,167 (PPnBM), Income Tax Commitment:US$ 160,909 (PPh 21) 2 Thailand 746 Pasca Production VAT on luxury goods 3 Hongkong, RRT 540 (PPnBM), VAT (PPn) Income Tax (PPh 21), Tax on Foreign Services 4 Perancis 500 Distribution Printing & VAT (PPn) 2013 2014 2015 2016 2017 5 New Zealand 135 Advertisment FDI Realization - - 109 416 40,642 Rights Royalty Tax FDI Commitment 2,234.5 1,200.0 15,200.0 142,275.1 Others 55 Output Theatrical Release, Royalty Tax, FDI Realization FDI Commitment Total 41.167 TV Home Vide, IP Entertainment Tax Based Source: BKPM, 2018 Source: Apindo 26 Digital Industry 4 and E-Commerce Investment opportunities Digital Industry & E-Commerce Indonesia has huge potential in e-commerce Indonesia retail e-commerce sales 2016 -2022 Business Overview (in US$ billion) 16.48 • People in Indonesia spend more time on the internet, 4.5 hours 14.42 12.34 per day, longer than India (4.4 hours), the US (4.2 hours), and 10.37 8.59 China (3.2 hours). 5.78 7.06 • Top social networks: Youtube (49% of internet activity), Facebook (48%), Instagram (39%), Twitter (38%), WhatsApp (38%). • Most of social users (92 million) accessing via mobile phone, or 2016 2017 2018 2019 2020 2021 2022 35% of the total population. Source: statista • IT & Communication is one of the fastest growing sector World Country Active Users Penetration Population • Growth of customers’ trust in using online payment system. Rank (Million) (%) (Million) • Growth of urban lifestyle, leading to the convenience of online 1 China 738 53,2% 1,388 shopping. 2 India 462 34,4% 1,342 • Government support to enhance digital financial inclusion 3 U.S.A. 287 87,9% 326 • Internet speed will be increased to 20 Mbps in Cities and 10 Mbps 4 Brazil 139 65,9% 211 in regencies by Palapa Ring II throughout 57 regency/city. 5 Indonesia 132,7 50,4% 263 • Equality of tax treatment for local and foreign e-commerce 6 Japan 118,4 94% 126 companies. 7 Russia 109,55 76,4% 143 • Indonesia is ranked 5th among total internet users in the world, 8 Nigeria 91,6 47,7% 192 with 132,7 million users or 50,4% from total population. 9 Mexico 85 65,3% 130 • Indonesia is potentially the biggest ASEAN market for e- 10 Bangladesh 73,34 44,5% 165 commerce. In 2016 24,7 million people purchasing via E- 11 Germany 72,3 89,6% 81 64 67,1% 95 commerce. 12 Vietnam 13 U.K 62 94,8% 66 • E-commerce transaction is projected will reach US$ 130 billion by 14 Philippines 57,6 55,5% 104 2020. 15 Thailand 57 83,5% 68 Source: export.gov, internetstats.com, WeAreSocial, Hootsuite, Statista 28 Investment opportunities Digital Industry & E-Commerce Ownership relaxation related to Digital Industry & E- Commerce

BUSINESS Indonesia Investment Trend 2012 - 2017 BUSINESS FIELD CLASIFICATION REMARKS E-Commerce (US$ Million) (KBLI) 141.4 Manufacturing and Computer Assembly, 58200 Maximum 100% foreign 54% Software, Computer programming, investment Average investment 113.2 Computer Consultation and Management realization growth 102.2 Service, IT and Other Computer Service, 66.7 56.6 Data & Server (hosting) Saving and 49.9 51.1 Processing, Other information service 36.8 34.9 35.0 21.6 27.2

E-Commerce/Retail Online 47911 Partnership (Open 100% for 2012 2013 2014 2015 2016 2017 47912 foreign investment but have 47913 to make partnership with Commitment Realization 47914 Micro, Small, and Medium Business and Cooperatives) Electronic trade 00000 Maximum of 49% of foreign FDI Realization in E-Commerce (USD Million) Transaction provider with an investment investment value of less than IDR 100 billion (such as Business Field 2012 2013 2014 2015 2016 2017 Total platform-based market place, daily deals, price grabber, online classified ads) 1 Web Portal 17,2 23,5 26,9 18,9 27,1 82,4 196,0 Source: Negative List of Investment (Presidential Regulation No. 44 Year 2016) 2 Programming Activity 0,4 1,7 7,9 7,4 8,9 17,2 43,5 Retail Sale through Post Opportunities in Indonesia e-commerce business 3 4 9,7 0,2 0,8 0,8 2,5 18,1 or Internet E-commerce Payment Digital Marketing Total 21,6 34,9 35,0 27,2 36,8 102,2 257,6 Logistics platform Systems Consultants Source: BKPM, 2018 29 Investment opportunities Digital Industry & E-Commerce

ASEAN E-commerce market 2015-2025 Types of E-commerce in Indonesia (in USD billion)

5.5 ASEAN 87.7 1.7 Indonesia 46.0 1.0 Payment Malaysia 8.2 1.0 Singapore 5.4 Services 0.9 Thailand 11.1 0.5 E-commerce Philippines 9.5 0.4 Vietnam 7.5 platforms 2015 2025

Source:Katadata Indonesia, 2017

The E-Commerce roadmap 2017-2019 is created to Logistics support the development of local e-commerce industry in order to be the biggest digital economy nation in ASEAN by 2020.

Source: ecommerceiq 30 5 Wellness Industry Investment opportunities Spa & Sport Center Global Welness Industry accounted for US$ 3.7 trillion market Business Overview • Wellness economy sectors is positioned to grow faster than global GDP sectors by 2020. • Indonesia is among top 20 countries for spa and wellness tourism markets in 2015. • Indonesian people are becoming more health-conscious, increasing the demand on healthier lifestyle products and services. • 3 out of 4 Indonesian consumers are willing to have a healthier lifestyle and 58% of Indonesians are looking to excercise more in 2017 (Mintel Research, 2017). • According to insights from Mintel’s Global New Products Database (GNPD), 64% of metro Indonesian consumers stated a preference for foods naturally high in protein and 63% of metro Indonesians believe that exercise is crucial in leading healthier lifestyles.

DEFINITIONS . Beauty & Anti-Aging ($999 bil.) • Wellness is a state of complete physical, mental, and social well- . Healthy Eating, Nutrition & Weight Loss ($648 bil.) being. . Wellness Tourism ($563 bil.) • Wellness tourism economy is all expenditures made by tourists . Fitness & Mind-Body ($542 bil.) who seek to improve or maintain their well-being during or as a . Preventative & Personalized Medicine and Public Health ($534 bil.) result of their trip. It includes different types of . Complementary & Alternative Medicine ($199 bil.) expenditures and tourists. . Wellness Lifestyle Real Estate ($119 bil.) • Spas are defined as establishments that promote wellness . Spa Industry ($99 bil.) through the provision of therapeutic and other professional . Thermal/Mineral Springs ($51 bil.) services aimed at renewing the body, mind, and spirit. . Workplace Wellness ($43 bil.) 32 Source: globallwellnessinstitute,2015 Investment opportunities Spa & Sport Center Top 5 Source of FDI in Spa Services (2013 -2017) Investment BUSINESS CLASIFICATION # Country Source of FDI BUSINESS FIELD REMARKS (US$ Thousand) (KBLI) 1 Hongkong 20.495 Spa 9612 Maximum 51% foreign investment 2 South Korea 3.140 Sport Center 77210 Open 100% for foreign 3 Germany 1.400 investment 4 Malaysia 1.102

Source: Negative List of Investment (Presidential Regulation No. 44 Year 2016) 5 China 1.045 Total 31.478 FDI Realization in Spa & Sport Center (USD Thousand) Source of FDI in Sport Center (2013 -2017) Sectors 2013 2014 2015 2016 2017 Total

Spa Services 1.610,1 963,6 982 2.583,3 25.339,4 31.478,4 Sport Center 30 30,8 278,3 0 339,1

Total 1.610,1 993,6 1.012,8 2.861,6 25.339,4 31.817,5 United Kingdom Austria USD 0,3 M USD 0,03 M

Source: BKPM, 2018 10 PRIORITY TOURISM DESTINATION 10 Priority Tourism Destination to be Developed

Toba Tanjung Kelayang Wakatobi Morotai Area : 500 Ha Area : 1200 Ha Area : 1000 Ha Area : 500 Ha Area : 300 Ha Investment : Investment : Investment : Investment : Investment : USD 1 Billion USD 1.6 Billion USD 1.5 Billion USD 1.4 Billion USD 3 Billion

Tanjung Lesung Seribu Islands Bromo Tengger Labuan Bajo Area : 1500 Ha Area : 1000 Ha Area : 1000 Ha Area : 1035 Ha Area : 1000 Ha Investment : Investment : Investment : Investment : Investment : USD 5 Billion USD 1 Billion USD 1 Billion USD 3.3 Billion USD 1.2 Billion

Special Economic Zone for Tourism National Strategic Tourism Zone Investment Realization in Tourism Industry (2013 - 2017)

Number of Project / Company in Tourism in Last 5 Years Average Annual Growth (2013 – 2017): 1,779 PROJECT % Avg. Annual • 2013 2014 2015 2016 2017 Total FDI : 20% (Number) Growth +31% • DDI : 48% FDI 1,225 1,158 1,951 2,345 3,786 10,465 36% • 460 Avg. growth total : 20% 1,355 DDI 103 61 306 335 551 1,356 109% 162 TOTAL 1,328 1,219 2,257 2,680 4,337 11,821 39% 1,055 871 921 322 Number of Local Worker (TKI) absorbed in Tourism in Last 5 Years 195 246 1,319 WORKER % Avg. Annual 1,193 2013 2014 2015 2016 2017 Total (Number) Growth 676 675 733 FDI 34,788 25,762 34,838 31,045 33,657 160,090 2% DDI 7,911 6,442 9,564 4,012 10,504 38,433 33% TOTAL 42,699 32,204 44,402 35,057 44,161 198,523 5% 2013 2014 2015 2016 2017 No Top 10 FDI in Tourism US$ Million Project % Share (Value) FDI DDI 1 Singapore 1,860 2,122 40% 2 Hongkong 527 365 11% • In the last 5 years (2013 – 2017) investment 3 Japan 180 740 4% realization in tourism sector is still dominated by 4 South Korea 123 875 3% DDI (23%) Foreign Investment (77%) with US$ 4.5 Billion. 5 Malaysia 114 307 2% US$ 1,386 Mio • The number of project/company in Tourism sector 6 Australia 105 765 2% also dominated by FDI with 10,654 projects in last 5 7 Spain 101 93 2% years, while DDI has 1,356 projects. 8 Luxembourg FDI (77%) 83 22 2% Note: 9 United Kingdom US$ 4,596 Mio • However, average annual growth of Domestic 83 360 2% Tax Haven Countries such as British Virgin Islands, Investment in tourism sector record higher growth 10 France 79 478 2% Cayman Island, Seychelles, by 48%, compared to foreign investment (20% Other Countries* 1,341 3,338 71% etc. are included in Other growth). TOTAL 4,596 10,465 100% Countries Source: BKPM, 2018 Investment Realization in Tourism by Province (2013 - 2017)

Riau Islands (8%)

West Java (11%) Jakarta (30%) Bali (29%) Central Java (3%)

% Avg. % NO PROVINCES 2013 2014 2015 2016 2017 TOTAL Annual Share Growth 1 Jakarta Special Administrative 270 427 139 649 278 1,763 76% 30% 2 Bali 401 160 339 285 518 1,703 29% 29% 3 West Java 46 106 141 126 230 648 59% 11% 4 3 38 140 57 236 475 386% 8% 5 Central Java 17 28 20 28 93 187 77% 3% 6 12 15 17 30 106 181 91% 3% 7 East Java 29 12 47 29 62 179 78% 3% 8 Banten 19 40 9 24 40 131 67% 2% 9 Yogyakarta Special Region 30 21 4 27 12 94 94% 2% 10 1 5 17 11 42 77 193% 1% Other Provinces 24 70 180 85 166 524 19% 9% TOTAL 853 921 1,054 1,352 1,782 5,962 21% 100%

Source: BKPM, 2018 Investment Realization in Tourism by Sub-Sector (2013 - 2017)

% Avg. % NO BUSINESS SUB-SECTOR 2013 2014 2015 2016 2017 TOTAL Annual Share Growth

1 Hotel and Accommodation 595 639 918 922 1,309 4,382 23% 73% 2 Travel & Tourism Service, Travel Agent, Consultant 203 148 63 277 131 822 51% 14% 3 Restaurant, Café, & Food Services 16 35 51 80 132 314 70% 5% 4 Tourism & Theme Park 36 92 7 72 139 344 267% 6% 5 Special Tourism Zone 20 7 16 2 44 89 539% 1% 6 SPA & Massage 2 1 1 3 25 32 249% 1% TOTAL 871 922 1,055 1,355 1,779 5,982 20% 100%

Source: BKPM, 2018 1 BOROBUDUR| CENTRAL JAVA INTEGRATED TOURISM AREA BOROBUDUR (Yogyakarta-Solo-Semarang (JOGLOSEMAR)) GEOGRAPHY OF BOROBUDUR Province : Central Java Regency : Magelang Total Area : + 100 Ha Time Zone : (UTC) + 7 Coordinate :

HIGHLIGHTS OF BOROBUDUR • Foreign visitors like the Borobudur temple and Javanese traditional culture. Potential tourists will be from India, China, Netherland (due to the history relations). Borobudur is the expression of the evolution of human cultural values, norms, and attitudes. • Joglosemar covers a vast area. It spans across 2 provinces (Central Java and DI Yogyakarta) and 3 largest cities: Yogyakarta, Semarang, and Surakarta (Solo). • Yogyakarta is an area of 32.5 square kilometres, with the core of modern city is to the north, centered around Dutch colonial-era buildings and the commercial district. Semarang is an area of 373.8 kilometres and has a major port. Solo has an area of 46 kilometres and on the eastern side of Solo runs Bengawan Solo river. • In June 2017, President Barack Obama and family have visited Yogyakarta, including Borobudur as a part of their holiday schedule in Indonesia. President Barack Obama reiterated the importance of protecting and preserving the temples because, as he told Indonesian President Joko Widodo, ‘I believe in the future of this country.’

Existing Accommodation: 1,485 Hotels (Both Yogyakarta and Magelang) Target Market: China, India, Total available room : Netherland, Malaysia, United Kingdom, Non Start-rated Hotel (15,065 room) Singapore, Myanmar, Cambodia, Japan, Star-Rated Hotel (9,404 rooms) Germany, etc. Homestay (368 rooms) Ex. President Obama visits Borobudur Temple (June, 2017) 40 BOROBUDUR (Yogyakarta-Solo-Semarang (JOGLOSEMAR))

ATTRACTION Culture & Heritages Borobudur Temple, Pawon Temple, and Mendut Temple (to a lesser extent Bukit Rhema and Punthuk Setumbu including chicken Church). is the largest Hindu Temple of ancient Java and the building was completed in the mid of 9th century. As a UNESCO World Heritage Site since 1991. Indonesia (Prambanan temple) is perfect place to watch Ramayana Ballet. You can watch the performance of Ramayana dance every Tuesday, Thursday, and Saturday.

Sunrise in Puthuk Mendut Temple Ratu Boko Temple Setumbu, Yogyakarta

Prambanan Temple

Culture, Culinary, and Fashion Yogyakarta is renowned as a center of education, classical Javanese fine art, and fashion like batik. Despites Yogyakarta also offer many heritage sites and plenty of culinary option with great local recipes. In Solo you can also discover some culinary delight and batik with special motives.

Keraton Malioboro Street Kasepuhan

Culinary Royal servants

41 BOROBUDUR (Yogyakarta-Solo-Semarang (JOGLOSEMAR))

ACCESIBILITIES Existing Airport: . Adisucipto International Airport, Yogyakarta . Adisumarmo International Airport, Solo . Achmad Yani International Airport, Semarang

Airport Under Development: . Kulonprogo International Airport, Kulonprogo

Current Mode of Transport Transport Mode Public Bus/Rail Taxi/Car Rental/ Tourist Bus/Van

Travel Time By Bus: Yogyakarta to Borobudur (40 km) : 1 to 1.5 hours Yogyakarta to Borobudur (40km): 2 hours Semarang to Yogyakarta (100 km) : 2.5 to 3 hours Magelang to Borobudur (17km): 1 hour Solo to Borobudur (100 km) : 3 hours By Rail: Jakarta to Yogyakarta: 8 hours Solo to Yogyakarta : 1 hour

42 Development of Tourism Information Center

5

3 4 1 2 2. New TIC 3. Gallery Building Site plan 1. Welcome Gate

PROJECT BACKGROUND SCOPE OF WORK

Tourism Information Center (TIC) at 1. Construction of the welcome gate. KSPN Borobudur and its surroundings 2. Development of new TIC by adding an is an area that provides information 4. Parking area and interactive museum featuring 4. Expo Center souvenir shops about KSPN Borobudur. The current information on all tourist destinations in condition, TIC area consists of TIC KSPN Borobudur and its trademark in building and hall with functions that the form of multi media. It will also has PROJECT LOCATION still need to be improved. Therefore, some rooms to display the SP-1, KSPN Borobudur it is necessary to revitalize the documentation movies of the tourist physical and non-physical areas of destinations. FINANCIAL ASPECT TIC. 3. Revitalization of the existing hall as a gallery building for small scale expo. Estimated Investment Value: IDR 30.6 Billion 4. Revitalization of the existing TIC building as an expo center with a larger scale than the gallery. 5. Development of parking areas and souvenir shops. 43 Development of Pawon Temple Area

Existing Condition of Pawon Temple Siteplan Front Look

PROJECT BACKGROUND Pawon temple is currently located in the middle of residential buildings. From the direction of Mungkid, its location can be reached before Sitting Group Area Souvenir & Gift Shop Prayer Room & Restroom Borobudur. Pawon Temple is urged by settlements, souvenir kiosks, cafes, and other SCOPE OF WORK PROJECT LOCATION buildings on the national 1. Revitalization of the Brojonalan Village, Borobudur District strategic streets. Therefore, the park area and its arrangement of buildings surroundings FINANCIAL ASPECT around the temple should be 2. Development of trade done so that Pawon Temple can and services areas Estimated Investment Value: IDR 6.14 Billion appear magnificent as a worship 3. Revitalization of the building should be respected by buildings around the the surrounding community. temple

44 Development Tourism Street Mbudur Walk (Pramudyawardhani Street)

Existing Condition of Pramudyawardhani Street Shopping street

PROJECT BACKGROUND

Pramudyawardhani Street is a road connecting Borobudur market and terminal with Borobudur Temple. The street Pedestrian path has now grown as a location Souvenir kiosks Restaurant for trading activities and services. However, the SCOPE OF WORK PROJECT LOCATION condition of the area is less 1. Revitalization of area and pedestrian organized, filled with rows of Pramudyawardhani Street, Borobudur District (4.13 Ha) path residential buildings that have 2. Arrangement of buildings evolved into business 3. Development of activities that buildings, with irregular FINANCIAL ASPECT support pedestrian paths such as shapes and faces of buildings. souvenir kiosks, Indonesia cuisine The absence of pedestrian Estimated Investment Value: IDR 24.67 Billion restaurant, and business offices to lanes, almost non-existent support business tourism activities. shade vegetation, and other 4. Development of tourism facilities activities that do not support and infrastructure tourism. 45 Development of Wanurejo Sightseeing and Agritourism

Outdoor space and cultural attractions

Agrotourism Sunset viewing tower Paragliding landings

PROJECT BACKGROUND SCOPE OF WORK 1. There are many tourists who are 1. Development of agro tourism with interested in agricultural activities and planting and harvesting activities sunset sightseeing of Borobudur Temple involving tourists Café and souvenir shop in Wanurejo; 2. Development of retention basin and 2. The existence of environmental tourism preservation of alms activities attraction (rice fields, gardens and rural 3. Development of the viewing post to areas) and natural tourist attraction view sunset of Borobudur and view (landscape towards Menoreh Hills, Elo Menoreh Mountains River and Progo River); 4. Development of paragliding landings 3. The existence of the activities of alms of 5. Development of outdoor space and Retention basin the earth culture which is done after the cultural attractions harvest time; 6. Development of trade and service areas 4. There are many creative crafts produced such as café and souvenir shop FINANCIAL ASPECT by the local community; Estimated Investment Value: 5. Support facilities are available (homestay, PROJECT LOCATION IDR 266.47 Billion Indonesia , telephone and wifi network, public transportation and car / motorbike Borobudur District / bicycle / horse-drawn carriage). 46 Development of Bedah Menoreh

Glass bridge in Watu Putih Cable car station in Bukit Viewing tower in Bukit Cable car in Bukit Nganguk Nganguk Nganguk

Paragliding landings in Bukit Treetops adventure & Gondopuro Wangi Clubhouse, café & gazebos outbond

PROJECT BACKGROUND SCOPE OF WORK PROJECT LOCATION

Bedah Menoreh is one of the alternative 1. Development of glass bridge in Watu Putih, Bukit Nganguk and Bukit access road that will be the route from Watu Putih Gorndopuro Wangi area (3.46 Ha) in Kulonprogo Airport to Borobudur. The 2. Development of cable cars, cafes, MajaksingGazeboVillage, Borobudur District (about total length traveled along 63 km. Bedah gazebos and viewing tower in 3.5 Km south of Borobudur Temple). Menoreh is expected to be a tourist area Bukit Nganguk supporting the Borobudur Temple and its 3. Development of paragliding surroundings as well as to break up activities in Bukit Gondopuro FINANCIAL ASPECT tourists to not only visit Borobudur Wangi Temple. Bedah Menoreh is a hilly area Estimated Investment Value: IDR with great scenery and has prospect to 1.92 Trillion be developed. 47 Development of Progo Riverside Walk

Jogging tracks and parks Siteplan

PROJECT BACKGROUND

Progo River which is located close to Pawon Temple has an important history as the Ancient River and can be used as a supporting Sitting Group Area tourism destination of Pawon Temple. Souvenir & Gift Shop Plaza, café and souvenir shops

SCOPE OF WORK PROJECT LOCATION 1. Development of jogging tracks and parks along Progo Riverside. Along the Progo River area with a long development 2. Development of plaza, café and souvenir shop at 12 points of Progo area is ± 1,920.73 meters from the base of the Progo Riverside. River bridge to the southern end of the Progo River 3. Development of a resort, lighting system, toilet and garbage facilities at delta and Elo River encounters with a total some points of Progo Riverside overlooking the river. development plan of 38.28 ha. 4. Development of the amphitheater as a place of outdoor performances and placed opposite the Pawon Temple area so that Pawon Temple can FINANCIAL ASPECT be seen from the amphitheater. 5. Development of meditation area at the river delta precisely at the Estimated Investment Value: IDR 82 Billion meeting point between Progo River and Elo River. Development of New Natural Forest Resort

Performance center Spiritual center Air baloon and camping area

Welcome hall

PROJECT BACKGROUND Restaurant

The basis of the development of new tourist resort areas in Perhutani's production forest is Sitting Group Area the need for more hotels and their Resorts Treetops adventure area international services, especially to accommodate foreign tourists centrally, to be SCOPE OF WORK PROJECT LOCATION close to Borobudur temple, to be developed as a tourist area and away from the society so 1. Development of welcome hall, performance center Bener District, Purworejo Regency that the negative influence of foreign tourist 2. Development of spiritual center, art galleries and culture can be suppressed. museum FINANCIAL ASPECT In Bener District there are two natural forest 3. Development of community craft center locations, namely Plot 98 and Plot 99. Based 4. Development of boutique and simple resort, spa Estimated Investment Value: on consideration of the physical condition of and beauty center, restaurant and café, and IDR 1.54 Trillion the land and the current accessibility, the convention hall development of forest resorts is planned to be 5. Development of community center and green developed in Plot 98. open space 49 Development of Borobudur National Tourism Destination

• Cooperation Scheme: Cooperation • Investment Value: IDR 3.77 T between Investor and Borobudur • IRR: 25.83% Authority Agency • Cooperation Period: 25 years NPV B/C Ratio Payback Period • Target of Tourist Visit in 2026: 8.9 million DF=10% IDR 6.88 T 2.82 14 years DF=12% IDR 5.18 T 2.37 16 years DF=14% IDR 3.87 T 2.03 23 years

CONTACT

Mr. Prambudi Trajutrisno • Head of Development of Tourism Destination Division • Youth, Sports, and Tourism Agency of Central Java Province Jl. Ki Mangunsarkoro No. 12 Semarang Telp: +6224 8419958 HP: +62 822 26611173 Email: [email protected]

50 2 TOBA LAKE| NORTH SUMATERA THE WORLD SUPER GEO-PARK DANAU TOBA (TOBA LAKE) DESTINATION PROFILE GEOGRAPHY OF TOBA REGENCY Province : North Sumatera Regencies : Samosir, Toba Samosir, Simalungun, Karo, North Tapanuli, Humbang Hasundutan, Dairi, Pakpak Bharat Area : 64,000 Ha Time Zone : (UTC) + 7 Coordinate : 2.88°N 98.52°E to 2.35°N 99.1°E

DEMOGRAPHICS Target Market: Southeast Asia, Population : 180,407 people Europe (Netherland & France), Density : 77 /Km2 Australia, and United States. HIGHLIGHTS OF TOBA LAKE • Toba Lake is the largest volcanic lake in the world and the second largest lake in the world after Lake Victoria in Africa. • Toba Lake is one of the ten deepest in the world, which reached a depth of about 500 meters. • Toba Samosir Island in the middle of the Lake has an area of 64,000 hectares, equivalent to the state of Singapore. • Toba Lake is formed by three major eruptions in the last 900,000 years, 500,000 years ago and 75,000 years ago. Which then led to many historical records through , flora and fauna. • There are a total of 45 Geo - Trip in 4 Geo - Area among others Porsea , Caldera Haranggaol, Sibandang Caldera and Caldera Samosir. 52 DANAU TOBA (TOBA LAKE) ATTRACTION NATURE Mount hiking, water attraction (Speed Boat, Water Skiing, Canoeing or Kayaking), golf, fishing, sunset views.

FESTIVAL & CULTURE

Annual Festival around September, forest and lake cleaning, history telling, and Geo Park (geollogy - ecology - cultural) themed activites Air Transport Kualanamu (KNO) International Direct Flights : Kuala Lumpur, Singapore Domestic Direct Flights : Jakarta and many CULLINARY cities in Indonesia Silangit Airport (DTB) Lake Toba has a culinary peculiarities that International Direct Flights : Singapore, Kuala Lumpur differ from other regions in Indonesia, (early 2018) especially in fish dishes. There is a popular Domestic Direct Flights :Jakarta and Kualanamu dish called sushi style Naniura known as (SIW) where raw fish served with herbs Sibisa Airport is available for special Flights: runway and spices. dimension is 2000m x 35m 53 DANAU TOBA (TOBA LAKE) INFRASTRUCTURE CURRENT ACCESS AND ACCESSIBILITY TO DANAU TOBA DEVELOPMENTS UNDERWAY

AIRPORTS AND SEAPORT

• Silangit (DTB) Airport will be International Airport in September 2017, with Runway 2.650m x 45m, and Terminal Building capacity for 500.000 pax/year • Sibisa Airport will be open for special airport in 2017, with Runway 2.000m x 35m • Kuala Tanjung will be open for multipurpose port in September 2017

ROADS AND BRIDGES

• - Toll Road will be operated in 2019. This will also connect Kualanamu Airport • Lake Toba Outer Ring Road (National Road) will be completed in 2019 Air Transport • Samosir Ring Road (National Road) will be completed in 2019 Kualanamu (KNO) Seaport • New Tano Panggol Bridge to Samosir will be International Direct Flights : Kuala Lumpur, completed in 2018 Singapore TRAIN • Minor revitalization on existing rail and additional Domestic Direct Flights : Jakarta and many Belawan Port (200 km from Lake Toba) train frequency from Medan to Siantar ready by cities in Indonesia Kuala Tanjung Port (135 km from Lake September 2017 Silangit Airport (DTB) Toba) International Direct Flights : Singapore, LAKE PIER AND SHIPS Kuala Lumpur (early 2018) Land • Improvement in 8 primary piers (Tigaras, Domestic Direct Flights :Jakarta and Transport Simanindo, Ajibata, Tomok, Balige, Onan Runggu, Kualanamu Muara, Nainggolan) • Development of secondary piers in Lake Toba Sibisa Airport (SIW) Medan to Lake Toba :140 km • Ships development (roro ships) • Development of ship maintenance facilities Sibisa Airport is available for special (3– 4 hours) Flights: runway dimension is 2000m x 35m 54 DANAU TOBA (TOBA LAKE) Investment opportunities

55 DANAU TOBA (TOBA LAKE) Investment opportunities

56 DANAU TOBA (TOBA LAKE) Investment opportunities

57 DANAU TOBA (TOBA LAKE) Investment opportunities DANAU TOBA (TOBA LAKE) Investment opportunities DANAU TOBA (TOBA LAKE) Investment opportunities

60 DANAU TOBA (TOBA LAKE) Investment opportunities

61 DANAU TOBA (TOBA LAKE) Investment opportunities

Contact Lake Toba Tourism Authority Mr. Rommy Fauzi, Director M: +62 8180 8686 886

Address: Jl. Kapten Pattimura No. 125, Medan 20153 – Indonesia Phone: +6221 - 4200 2060 E-mail: [email protected]

62 3 MANDALIKA| WEST NUSA TENGGARA SPECIAL ECONOMIC ZONES MANDALIKA SEZ DESTINATION PROFILE Location Province : West Nusa Tenggara Regency : Central Development Area Total Area : ± 2000 Ha Total SEZ Area : 1.035,67 Ha (Total Developer Owned Area) Accesiblity Lombok International Airport (40 minutes to Mandalika)

Accomodation Mandalika 884 hotels (Regional Statistics, 2014) Mandalika Facts

• The only conservation area in Indonesia which has a total of 5,250 hectares of ocean sand. • Mandalika has appointed as the Best Halal Destination and The Best Honeymoon Destination in the World Halal Travel Award 2015. • Mandalika directly exposed to the Atlantic Sea. Mandalika has Beach (like in Bali) as well as soft and white sandy beach of Tanjung Aan, white sandy beaches in the bay area with the longest coastline. • Special Economic Zones (SEZ) Mandalika proposed by PT Indonesia Tourism Development Corporation (ITDC) has been established by Government Regulation No. 52 of 2014 on June 30, 2014. • Development of the SEZ Mandalika focused on the main activities of Tourism. Mandalika KEK is currently in the construction phase I. • 1035.67 ha of land acquisition has been completed and physical development that has been done is the construction of roads in the area along the 4 Km. • The government needs support to extend Lombok International Airport runway, revitalize Harbour Shee, as well as to provide Clean Water Network Management Area in Kuta Area. In 2016, there are two hotels that has been built from 2016; the Pullman Hotel and Hotel Clumbmed. 64 MANDALIKA SEZ - SUPPORTING INFRASTRUCTURE PROJECT OPPORTUNITIES AT SEZ MANDALIKA Road Leisure, Residential and Commercial area with Joint Venture, Joint Ownership and Road development to Tanjung Aan with length of 4 Ownership Opportunities for investors. Tourism Business Unit Investment km and width of 90 m. Development and broadening Opportunities (including the investment code of the Standard Classification of road of province from Lombok international airport Indonesian Business Fields for Tourism) includes: to district Mandalika as far as 20 km. 1. Star Hotel (KBLI 5511) 1. Bowling Centre (KBLI 93113) 2. Villa (KBLI 55194) 2. Sport Centre (KBLI 93118) 3. Restaurant (KBLI 56101) 3. Art Performing Building (KBLI 90001) Airport 4. Bistro (KBLI 56102) 4. Organization of MICE (KBLI 82301) Expansion runaway Lombok International Airport through the 5. Bar (KBLI 56301) 5. Night Club (KBLI 56302) length of 250 meters. Currently several airlines are offering 6. Café (KBLI 56303) 6. Karaoke (KBLI 93292) attractive connections with daily flights to Lombok from: 1. Singapore (2h45m) 7. Golf Course (KBLI 93112) 7. Recreational Park (KBLI 93232) 2. Kuala Lumpur (3h05m) 8. Billiard House (KBLI 93111) 8. Theme Park (KBLI 93210) 3. Jakarta (2h05m) 9. Swimming Centre (KBLI 93114) 9. Marine Dock (KBLI 93243) 4. Bali (0h25m) 10. Tennis Field (KBLI 93116) 10. Diving Tour (KBLI 93242) 5. Perth (3h40m) 11. Spa (KBLI 96122)

Electricity PROJECT SCHEME Availability of electricity is supplied by PLN and KMPL • Foreign Investors can set up their business in the form of a joint venture with with the capacity 30 MW and 50 MW. SEZ Mandalika the local private company partner as the developer of the land. In the joint will increase electricity power solar cell with capacity ventures, there is a minimum share of the foreign party of the total equity 15 MW capital. • A joint venture with local private company partner can help to increase the Water Supply productivity and profit generation. A successful joint venture can offer: Indonesian regional water utility company provides 60 1. Access to new markets and distribution networks liters per second. Current need of water supply requires 2. Increase capacity KMPL 200 liters per second. Also will built a water 3. Sharing of risks and costs with partner reservoir construction distribution, of 5000 m3, below 4. Access to greater resources, including specialized staff, technology and the pump house capacity of 100 l/d. finance

65 MANDALIKA SEZ MASTER PLAN

66 MANDALIKA SEZ Investment Opportunities

PT. Indonesia Tourism Development Corporation Indonesia Tourism Development Corporation Address: Kawasan Pariwisata , PO BOX 3 BALI – 80363 Phone: (0361) 771010 Fax: (0361) 771014, E-mail: [email protected] | www.btdc.co.id

Contact Point: Director of Business Development, Mr. Edwin Darmasetiawan, Mobile: +62815 8886 488 email: [email protected]

67 MANDALIKA SEZ Investment Opportunities 2. Serenting Beach 1. Seger Beach

SERENTING BEACH

SEGER BEACH

Located at Kuta Lombok Village, Pujut Sub-District, Central Lombok District, West Nusa Tenggara Province Located at Kuta Lombok Village, Pujut Sub-District, Central Coordinate : S08°54’27.26” E116°18’35.44” Lombok District, West Nusa Tenggara Province Coordinate : S08°54’33.51” E116°17’54.17”

68 MANDALIKA SEZ Investment Opportunities 4. Tanjung Aan Indah Beach

3. Golf Course

GOLF COURSE TANJUNG AAN INDAH BEACH

Located at Kuta Lombok Village, Pujut Sub-District, Central Located at Kuta Lombok Village, Pujut Sub- Lombok District, West Nusa Tenggara Province. District, Central Lombok District, West Nusa Coordinate : 8°53'50.9"S 116°18'39.8"E Tenggara Province. Coordinate : S08°54’28.28” E116°19’24.09” 69 4 TANJUNG KELAYANG| BELITUNG ISLAND SPECIAL ECONOMIC ZONES TANJUNG KELAYANG SEZ DESTINATION PROFILE Location Province : Regency : Belitung Development Area Tanjung Kelayang Total Area : ± 457 Ha SEZ Total Area : + 324,4 Ha (Total Development Area) Accessability H.A.S. Hanandjoeddin Airport (45 minutes to Tanjung Kelayang)

Accomodation A total 40 hotels (According to Regional Statistics Agency (BPS) , 2015)

Tanjung Kelayang Facts • Tanjung Kelayang has a land area of 324.4 ha with white sandy beaches and rocky granite diverse. Hundreds of foreign yacht docked in Tanjung Kelayang the Sail Indonesia. • Tanjung Kelayang is one of the most beautiful beaches in the Pacific Islands that located in Tanjung Kelayang Sijuk, Belitung, Bangka Belitung Province, which is one of the 10 national priority tourism destinations, carrying the concept of sustainable environment development. • Set on on March 15, 2016 Special Economic Zones (SEZ) Tanjung Kelayang is stipulated under Government Regulation No. 6 Year 2016, with the main focus on Tourism development. Target Market: Malaysia, Singapore, Europe. • Tanjung Kelayang KEK is expected to attract more than 58,000 visitors per year as well as to bring more investors to develop the area. 71 TANJUNG KELAYANG SEZ ATTRACTION ACCESIBILITIES & INFRASTRUCTURE NATURE Existing regional infrastructure in Tanjung Kelayang SEZ, including: Panoramic Sightseeing of the lighthouse Road development to Tanjung Kelayang is tower built in 1882 (Dutch Colonial Era), accordance to national road standard. sailing, snorkeling, beauty Granite stones Development and broadening road from neatly arranged on the beach shaped eagle. Belitung airport to Tanjung Kelayang as far as 41 km.

Regional infrastructure need to be FESTIVAL & CULTURE improved: Total Solar Eclipse Festival , Rainbow Troops • Installation of Waste Water Management Festival, Belitong Festival, Belitong Fair, • Extension of runway airport Hanandjoeddin H.A.S from 2250 m to 2500 m Belitong Cultural Festival, Sail Indonesia/ • Increasing power capacity of existing 41.5 Wonderful Sail Indonesia/ Sail Karimata MW of electricity • Improvement of national roads to the area • Power Plant Surge

FESTIVAL & CULTURE Water Supply Reservoir Mount Sharp with production Belitung is famous with traditional coffee water capacity 400L/S will be available shop with a natural coffe processing. Its soon. famous food called Gangan Soup is broth thick yellow soup and its sour taste as cooked with pineapple. 72 TANJUNG KELAYANG SEZ

73 TANJUNG KELAYANG SEZ

74 TANJUNG KELAYANG SEZ Investment Opportunities Phase 1: Luxury Beach Resorts & Beach Residential Phase 2: Equestrian Resort & Marina Resort PROJECT INFORMATION PROJECT INFORMATION 1. Located at Tanjung Binga Village, Sijuk 1. Located at Tanjung Binga District, Belitung Regency, Bangka Village, Sijuk District, Belitung Province Belitung Regency, Bangka Belitung Province 2. Coordinate: S02°34'14.10" 2. Coordinate: E107°39'9.15“ S02°34'30.99“ ± 3. Area : 35,9 ha (land) E107°39'20.55“ 4. Foreign Investors can set up their 3. Area : ± 178,3 Ha (land) business in the form of a joint venture 4. Foreign Investors can set with the local private company partner up their business in the as the developer of the land. In the joint form of a joint venture ventures, there is a minimum share of with the local private the foreign party of the total equity company partner as the capital. developer of the land. In the joint ventures, there is a minimum share of the foreign party of the total equity capital.

75 TANJUNG KELAYANG SEZ TANJUNG KELAYANG SEZ MASTER PLAN 1. Exclusive Beach Resort Investment Opportunities Villas 2. Exclusive Residence Phase 3: Reservoir & Future Commercial Development Villas 3. Exclusive Beach Resort Villas 4. Exclusive Residential Villas 5. Exclusive Beach Resort Hotel & Villas 6. Marina &Marine centre 7. Natural Farm Homestay Lodges 8. Nursery 9. Nature Trail 10. Equestrian Resort Villas 11. Polo & Equestrian Club 12. Future Hotel Development 13. Estate Management & Waste 14. Future Hotel Development 15. Solar Panel Farm 16. Water Reservoir 17. Buffer Zone 18. Residential Villas 19. Nature Trail 20. Hotel Resort PROJECT INFORMATION 1. Located at Tanjung Binga Village, Sijuk District, Belitung Maritime Silk Road Belitung Contact: Regency, Bangka Belitung Province. Mr. Rizky Ariens Saputra, 2. Coordinate: S02°34'57.84" E107°39'54.69" Phone: +62859 5935 0472 3. Area : ± 73,3 ha (land) E-mail: [email protected] 4. Foreign Investors can set up their business in the form of a joint Address venture with the local private company partner as the Jl. Dharmawangsa 7 No. 11 Kebayoran Baru, Jakarta Selatan, DKI Jakarta developer of the land. In the joint ventures, there is a minimum Phone (021) 7202143, Fax (021) 7256402 share of the foreign party of the total equity capital. Website: www.belitungisland.com 76 5 | BANTEN SPECIAL ECONOMIC ZONES TANJUNG LESUNG SEZ

DESTINATION PROFILE GEOGRAPHY OF TANJUNG LESUNG SEZ Province : Banten Regency : Pandeglang Total Area : + 1,500 Ha Target Market: Europe, West Time Zone : (UTC) + 7 Asia, Southeast Asia, Australia, Coordinate: 6.4786°S, 105.6558°E and United States. Coast Line : 15 km

HIGHLIGHTS OF TANJUNG LESUNG • Tanjung Lesung is one of West Java's leading tourist areas with impressive variety of natural attractions and cultural wealth, such as Ujung Kulon, , Liwungan, and Baduy Villages to mention a few. • Tanjung Lesung is the first tourism project that was designated as the Tourism Special Economic Zone in Indonesia. On October 6th, 2011 PT Jababeka Tbk acquired PT Banten West Java Tourism Development and PT Tanjung Lesung Leisure Industry. Both were companies that own "Tanjung Lesung Resort" the integrated coastal tourist area on 1,500 hectares of land. • Several 4-star hotels with international standards are also present in Tanjung Lesung. They are Kalicaa Villa Estate, Tanjung Lesung Resort Hotel, the Blue Fish and the Sailing Club 78 TANJUNG LESUNG SEZ ATTRACTION WATER ADVENTURE (Scuba diving, water sports, boat ride) Tanjung Lesung is one of West Java's leading tourist areas with impressive variety of natural attractions and cultural wealth, such as Ujung Kulon, Krakatoa, Liwungan, and Baduy Villages to mention a few. Underwater, divers can expect to see the very rich coral reefs of the Krakatau smaller islands and the coast of Ujung Kulon. The eruption of Krakatau in 1883 had resulted in the presence of underwater volcanic rocks that resemble ancient ruins. These reefs and hard corals upon them are inhabited by some of the richest fish fauna in the archipelago.

NATURE (Excursion to Anak Krakatau, bird watching, Today, the Krakatau Islands National Reserve is consisted of four islands of which only Anak Krakatau, now about 200 meters high, is volcanically active. The islands of Payang (Verlaten) and Sertung (Lang) are remnants of the 416 AD , the first Krakatau explosion, while used to be the southern tip of the Island, which exploded in 1883. For bird watching Pulau Dua Bird Sanctuary is a nice secluded natural park that welcomes thousands migrating birds from other continents as far as Africa every year. These exotic birds would flock Pulau Dua from March to July. In Ujung Kulon national park, the 120,000 hectares park comprises the most southwestern tip of Java, Handeuleum island, Peucang island and the island. Different landscapes are offered by the national park, starting from the Payung Mountain in the southwest to the low hills of Telanca Plateu in the northeast.

CULTURE (Baduy community) Amongst the beautiful natural setting Tanjung Lesung is settled in, just a couple of hours away lies the village of Baduy community, an enigma in this fast-changing world. The Baduy is a deeply spiritual and close-knitted society. Ancient ways of living are their way of living until this very day, strongly rejecting influences from the outside world and modern society.

79 TANJUNG LESUNG SEZ ACCESIBILITIES Tanjung Lesung is located in the Banten Region, between West Java and Sumatera. It is the most western part of Java and lies near Jakarta an d is accessible by:

By Road By Plane (Future) By Train (Future) By Sea Toll Jakarta – Merak. Exit at 35 minutes from Halim Tanah Abang – Marina Ancol - Tanjung Serang Timur toll gate via Airport. Halim airport – Rangkasbitung, Serang, Lesung Beach Club Pandeglang – Labuan – Tanjung Lesung) take bus (provided) to Panimbang – Tanjung Tanjung Lesung. Pantai Mutiara – Tanjung Lesung (approx 180 km) Lesung Beach Club Reactivation: New Toll road (2019) Rangkasbitung – Labuan. Tanjung Priok Port – Ancol Serang regency – – Tanjung Lesung Beach Panimbang, Pandeglang New Railway: Club Regency. Labuan – Panimbang

80 TANJUNG LESUNG SEZ Tanjung Lesung SEZ Master Plan

Timeline Location Area (Ha) Investment Value for Infrastructure (USD Million) 2016 Bayside 100 50 2017 Harbour & Strait 150 100 2018 Hearthland 250 100 2019 Highland 300 100 2020 Highland and Point 700 150 Total 1500 500

81 TANJUNG LESUNG SEZ Project Development Plant: Tanjung Lesung Bayside

District Character: 1. Maritime Museum 2. Banten Museum 3. Water Themepark 4. Residential/Villa 5. Food Junction 6. Hotel 82 TANJUNG LESUNG SEZ Project Development Plant: Tanjung Lesung Harbour

83 TANJUNG LESUNG SEZ Project Development Plant: Tanjung Lesung Strait

84 TANJUNG LESUNG SEZ

Project Development Plan: Tanjung Lesung Heartland Project Development Plan: Tanjung Lesung Highland

85 TANJUNG LESUNG SEZ Project Development Plan: Tanjung Lesung Point

86 TANJUNG LESUNG SEZ Tanjung Lesung Surrounding

87 TANJUNG LESUNG SEZ Tanjung Lesung Future Development

88 TANJUNG LESUNG SEZ List of Existing Tenant and Facilities PROJECT PROFILE Leisure, Residential and Commercial area with Joint Venture, Joint Ownership and Ownership Opportunities for investors. Tourism Business Unit Investment Opportunities (including the investment code of the Standard Classification of Indonesian Business Fields for Tourism) includes:

1. Star Hotel (5511) 1. Bowling Centre (93113) 2. Villa (55194) 2. Sport Centre (93118) 3. Restaurant (56101) 3. Art Performing Building (90001) 4. Bistro (56102) 4. Organization of MICE (82301) 5. Bar (56301) 5. Night Club (56302) 6. Café (56303) 6. Karaoke (93292) 7. Golf Course (93112) 7. Recreational Park (93232) 8. Billiard House (93111) 8. Theme Park (93210) 9. Swimming Centre (93114) 9. Marine Dock (93243) 10. Tennis Field (93116) 10. Diving Tour (93242) 11. Spa (96122) PROJECT SCHEME Contact : Foreign Investors can set up their business in the form of a joint venture with the PT. Banten West Java Tourism Development (Jababeka Group) local private company partner as the developer of the land. In the joint ventures, Director, Bpk. Poernomo Siswoprasetijo Phone: +62 816 992 193 there is a minimum share of the foreign party of the total equity capital. Address A joint venture with local private company partner can help to increase the Menara Batavia 25th Floor, Jl. K.H. Mas Mansyur Kav. 126, Jakarta 10220 productivity and profit generation. A successful joint venture can offer: Phone: +6221-572 7225 1. Access to new markets and distribution networks 2. Increase capacity Administrator of Tanjung Lesung SEZ 3. Sharing of risks and costs with partner Ms. Joyce Irmawanti, Head 4. Access to greater resources, including specialized staff, technology and finance Phone: +62 812 8023 936 89 6 BROMO, TENGGER, SEMERU| EAST JAVA INTEGRATED TOURISM AREA BTS (BROMO – TENGGER – SEMERU) DESTINATION PROFILE GEOGRAPHY OF BROMO TENGGER SEMERU Province : East Java

Regency : Probolinggo, Pasuruan, Malang, and Lumajang Surabaya Total Area : + 50.276,2 Ha Time Zone : (UTC) + 7 Existing Accommodation: 1,993 Hotels (in 2014)

HIGHLIGHTS OF BROMO TENGGER SEMERU . Bromo Tengger Semeru National Parks covers a massive area of 800 square km in the centre of East Java. This is the largest Target Market: China, India, Europe, Singapore, Japan, volcanic region in the province. Europe (Netherland, Rusia, France, Germany, United . BTS offer natural beauty of the mountain with remarkable Kingdom,etc). experience of Tengger Caldera, the largest sea sand in Java, total area around 10 km. . The temperature at the top of Mount Bromo is about 5-18 degrees celcius. as well as social culture of Tengger clan. . From the park, visitor will be able to watch the plumes of smoke coming from Mount of Semeru. . To the south of the park is a rolling upland plateau dissected by valleys and dotted with several small scenic lakes, extending to the foot of Mt. Semeru.

91 BTS (BROMO – TENGGER – SEMERU) ATTRACTION

Nature Hiking, Running, Horse Riding, Camping, landscape scenery, watching sunrise, aero sport.

Culture Traditional Culture Festival in Mount Bromo. The event usually showcase traditional arts and performance by Tengger People, including Kidung Tengger dance. Tengger people usually hold traditional ceremony, called Yadnya Kasada Bromo, every 14th day in Month of Kasada (between Agustus and September), a part of praying for Hindu people.

Tengger people has its own culinary. Special dishes of Bromo called Sawut Bromo, Sawut Bromo only available in special occasion. It is made from cassava, with the form like a mountain. Besides, Bromo also known for its ribs soup. The western food is still limited in Bromo.

92 BTS (BROMO – TENGGER – SEMERU) TOURISM DESTINATION AROUND BROMO TENGGER SEMERU NATIONAL PARK ACCESIBILITIES Existing Airport: In Lumajang Regency: In Malang Regency: . Juanda International Airport, Surabaya o o Hiking to Mount Semeru Savana desert . Abdul Rahman Saleh Airport, Malang o Camping at Ranukumbolo lake o Tourism village o Forest o Jatim Park International Flight to Juanda o Agro tourism o Temple International airport come from Kuala o Waterfall o Bathing Place Lumpur, Hong Kong, Singapura, Taipei, o Waterpark o Handicrafts Bangkok, dan Jeddah o Natural bathing place o Agro tourism Port Access: . Tanjung Perak Port, Surabaya . Tanjung Tembaga Port, Probolinggo In Pasuruan Regency: In Probolinggo Regency: Access by Train: o Mountain o Mountain . Train Station in Malang, Surabaya, o Sea Sand o Sea Sand Pasuruan, and Probolinggo o Farm o Farm o Agro tourism o Agro tourism o Waterfall o Waterfall o Tourism village o Tourism village o Golf

93 BTS (BROMO – TENGGER – SEMERU) Investment Opportunities Vision Planning of BTS Tourism Key Zone 1: Gateway and Aero Park o Gateway, Transport Hub Logistic, Business Park, Airport Hotel, Mixed Use Residential Key Zone 2: Resort & MICE o MICE Resort o Exclusive Villa o Boutique Hotel o Luxury Resort & Spa Key Zone 3: Tourism Activity

Supporting Infrastructure

o Water Treatment & Water Supply o Reservoir Contact o Solid Waste Management Investment Board of East Java o Power Generation and Distribution Mr. Lili Soleh Wartadipradja, Chairman o Drainage & Flooding Phone: +62812 304 8981 o Telecommunication E-mail: [email protected] o Cruise Development in Probolinggo Address: Jl. Johar No. 17, Surabaya, East Java o Residential Phone: +6231-3577691 Fax: +6231-3577693

94 7 KEPULAUAN SERIBU| DKI JAKARTA INTEGRATED TOURISM AREA KEPULAUAN SERIBU (THOUSAND ISLAND) DESTINATION PROFILE GEOGRAPHY OF KEPULAUAN SERIBU Province : DKI Jakarta Regency : Total Area : + 1,009 Ha Time Zone : (UTC) + 7 Coordinate: Total Islands: 108 Islands

HIGHLIGHTS OF KEPULAUAN SERIBU o Kepulauan Seribu has strategic location closed to Jakarta with abundant of marine natural resources ACCESSIBILITIES o Soekarno Hatta International Aiport and Marina Ancol

Existing Accommodation: 8 Hotels/Resort and 215 Homestay (BPS, 2014)

Target Market: Europe (Netherland, Rusia, Germany, etc), China, Japan, Taiwan, Malaysia Hong Kong, United States of America, Brunei Darussalam.

96 KEPULAUAN SERIBU (THOUSAND ISLAND)

ATTRACTION INVESTMENT OPPORTUNITIES (To Be Discussed) Key Zone 1: Resort & MICE o MICE Resort Nature o Exclusive Villa Catching up with the o Boutique Hotel sunset, snorkeling, Island o Luxury Resort & Spa hoping, Cycling, wildlife o One Island, One Resort watching. Key Zone 2: Waterfront Promenade o Muara Angke o Marina Ancol o Muara Kamal Heritage Sites Key Zone 3: Domestic Cruise Terminal/Ferry Services Benteng Martello, o Cruise/Ferry Services o Retail & Entertainment Complex cultural event in o Food Village thousand island Key Zone 4: Beach Resort & Tourism Activity o Water Treatment & Water Supply o Solid Waste Management o Power Generation and Distribution Water Sport o Drainage & Flooding Cano, Banana Boat, Sofa o Telecommunication Boat, Donut Boat, Jet Ski, Contact Parasailing, Sea Walker Regency of Kepulauan Seribu Mr. Ismer Harahap, Vice Regent Phone: +62813 8981 6595

Jl. Barakuda No. 14, Pulau Pramuka, Kabupaten Kepulauan Seribu, DKI Jakarta, 14520 - Indonesia Phone: +6221 - 43931476 97 8 WAKATOBI| SOUTH EAST SULAWESI DIVING PARADISE WAKATOBI ISLANDS DESTINATION PROFILE GEOGRAPHY Province : South East Sulawesi Capital City : Wangi-Wangi Time Zone : (UTC) + 8 Wakatobi Coordinate : 5°32′09″S 123°45′29″E Area : 19,800 Km2 Borders : North (Banda Sea), West (Buton Regency), South (Banda Sea), East (Banda Sea) Air Temp. : 27° C – 32° C Humidity : 80%

DEMOGRAPHICS Population : 120,000 people Density : 145/Km2

ATTRACTION • The main tourist attraction of the is the . The Wakatobi National Park is one of 50 National Parks in Indonesia, which is located in the Regency of Wakatobi, . • It crowned as National Park in 1996 and has a total area of 1,39 million hectares. It possesses a marine biodiversity with a scale and condition that ranks it as one of the highest priorities in marine conservation in Indonesia. The depth of waters in this national park varies, with the deepest part reaching 1,044 meters below sea level. The Wakatobi National Park features Coral Reefs; Fishes; Other animals; specificity; and Hoga Island. • Wakatobi has been designated in the World Network of Biosphere Reserves by the Man and the Biosphere Programme of the United Nations Educational, Scientific and Cultural Organization (UNESCO) on 11 July 2012. The world’s major ecosystem types and landscapes represented in this Network are devoted to conserving biological diversity, promoting research and monitoring, as well as seeking to provide models of sustainable development in the service of humankind. 99 WAKATOBI ISLANDS 2. MELAI ONE VILLAGE Investment Opportunities 1. HOGA ISLAND

PROJECT INFORMATION 1. Area : 351 Ha 2. Coordinate : 5°27'59.1"S 123°46'08.1"E 3. Owner : Local Community 4. Integrated Tourism Area (68120) PROJECT INFORMATION 5. Tourism Business Opportunities: 1. Area : 130 Ha Tourism Area (KBLI 68120). ° ° Estimated required initial funds: 2. Coordinate : 5 19'58.5"S 123 38'04.1"E IDR 300 Billion (Excluding land 3. Owner : Local Government lease, license and permit fees) 4. Tourism Business Opportunities: 6. Available cooperation: Investors • Integrated Tourism Area (KBLI: 68120). Estimated are encouraged to invest in required initial funds: IDR 130 Billion (Excluding land partnership with Local Community lease, license and permit fees) through the following cooperation: • 18 Hole Golf Course (KBLI: 93112). Estimated required initial funds: IDR 32 Billion (Excluding land lease, license • Build, Operate and Transfer and permit fees) (BOT); 5. Available cooperation: Investors are encouraged to invest in • Joint Venture; or partnership with Local Government through the following • Other agreeable cooperation cooperation: forms. • Build, Operate and Transfer (BOT) • Joint Venture • Other agreeable cooperation forms 100 WAKATOBI ISLANDS Investment Opportunities 3. PATUNO

PROJECT INFORMATION 1. Area : 20 Ha 2. Coordinate : 5°15'35.7"S 123°36'25.1"E 3. Owner : Local Government 4. Tourism Business Opportunities : • 1 unit of Three Star Hotel (KBLI: 5511) with 80 rooms. Estimated required initial funds: IDR 44 Billion (Excluding land lease, license and permit fees) • 1 unit of Four Star Hotel (KBLI: 5511) with 100 rooms. Estimated required initial funds: IDR 70 Billion (Excluding land lease, license and permit fees) • 2 units of Restaurant (KBLI: 56101). Estimated required initial funds: IDR 5 Billion (Excluding land lease, license and permit fees) • 2 units of Café (KBLI: 56303). Estimated required initial funds: IDR 2.5 Billion (Excluding land lease, license and permit fees) 5. Available cooperation: Investors are encouraged to invest in partnership with Local Government through the following cooperation: • Build, Operate and Transfer (BOT) • Joint Venture • Other agreeable cooperation forms

© 2017 by Indonesia Investment Coordinating Board. All rights reserved 101 WAKATOBI ISLANDS INVESTMENT OPPORTUNITIES SUMMARY (est.) WAKATOBI – ACCESIBILITIES & INFRASTRUCTURE Business Amount Needed Required Funds Per Business Total Required Fields Field Fund Per Accessibilities Business Field Category Wakatobi Regency is relatively easy to reach by both domestic Integrated 2 IDR 300 Billion, IDR 130 Billion IDR 430 Billion and international tourist. The main entry is from Sultan Tourism Area Hasanuddin International Airport located in City, and 18 Hole Golf 1 IDR 32 Billion IDR 32 Billion tourists may continue to travel by plane to the to reach the Wakatobi Regency. Course Three Star 1 IDR 44 Billion IDR 44 Billion Transportation Hotel The main transportation in Wakatobi Regency is by air and sea. Four Star 1 IDR 70 Billion IDR 70 Billion There are Matahora Airport and several seaports as the main Hotel infrastructure for transportation. There are many traditional Restaurant 2 IDR 5 Billion IDR 10 Billion boats throughout the regency that serves both as transportation Cafe 2 IDR 2.5 Billion IDR 5 Billion and activities support. Total Required Fund in the Region (Excluding Land Lease, License and IDR 547 Billion Permit) Telecommunication Tourism & Creative Economy Authority, Wakatobi Wakatobi Regency is supported by adequate telecommunication Address: Jl. Laruku No. 11 Wangi-Wangi, facilities; both mobile network and landline network are Wakatobi available. South East Sulawesi, Indonesia Energy http://www.wakatobitourism.com The main source of energy in Wakatobi Regency comes from the Contact Point: National Electric Company, Diesel Generator and Solar Panel. Chief of Tourism & Creative Economy Authority, Mr. Nadar Phone: +62811401474 E-mail: [email protected] 102 9 MOROTAI| SPECIAL ECONOMIC ZONES MOROTAI Morotai DESTINATION PROFILE GEOGRAPHY Province : North Maluku Capital City : Daruba Time Zone : Eastern Indonesia Time / (UTC) + 9 Coordinate : 2° 19′ 0″ N, 128° 32′ 0″ E Area : 2,476 Km2 Borders : North (Halmahera Sea), West (Halmahera Sea) South (Morotai Strait), East (Halmahera Sea) Air Temp. : 23.6° C – 27.68° C Humidity : 90%

DEMOGRAPHICS Population : 54,971 people (2013) Density : 35,82/Km2 ATTRACTION

• Morotai Island Regency is among the historical places in Indonesia, where the Battle of Morotai took place. The battle between the Allies and the Japanese as part of the Pacific War began in 15 September 1944 and ended in August 1945. There are many relics of World War II in Morotai Island; many ship wrecks on the seabed surrounding the island become famous diving spots attraction, not to mention numbers of well-preserved tank relics across the island. • Aside from its historical aspect, Morotai Island Regency owns several beautiful and natural small islands, namely the Dodola Island, Zumzum Island, Ngele-Ngele Island, Galo-Galo Island, and Saminyamau Island. 104 MOROTAI Investment opportunities MOROTAI – ACCESIBILITIES & INFRASTRUCTURE Wakatobi :D’Aloha Cape Accessibilities & Transportation There are two main entry for tourist into Morotai Island Regency, the first is from air transport via Leo Wattimena/Pitu Airport and the second is from sea transport via Duruba Seaport.

Morotai Island Regency is accessible by air transport via Pitu (Leo Wattimena) Airport and sea transport through several seaports available. Currently, there are at least 5 airlines serving flight to Morotai, namely , Lion Air, , Sriwijaya Air, and Batik Air. PROJECT INFORMATION Telecommunication 1. Area : 640 Ha Morotai Island Regency is supported by adequate 2. Coordinate : 2°00'31.5"N 128°16'45.1"E telecommunication facilities, especially in the southern part 3. Owner : Jababeka & Co. of the island. Mobile network is served by Telkomsel 4. Tourism Business Opportunities: Indonesia and landline network is served by Telkom • Integrated Tourism Area (KBLI 68120). Indonesia. Estimated required initial funds: IDR 6.400 Billion (Excluding land lease, license and permit fees) Energy 5. Available cooperation: The Investors are Morotai Island makes use of the abundant sunshine to encouraged to invest in partnership with the Local operate one of the largest solar power plants in the Government through the following cooperation: country. Electricity in the island is mainly powered by diesel • Build, Operate and Transfer (BOT) generators and solar panels. • Joint Venture • Other agreeable cooperation forms 105 MOROTAI

PROJECT INFORMATION Special Economic Zones (SEZ) Morotai established by Government Regulation No. 50 of 2014 on June 30, 2014. The administration, KEK Morotai, located in the district of South Morotai, Pulau Morotai, North Maluku province.

1. Area : 1,101.76 Ha 2. Coordinate : 2°06'12.2"N 128°16'57.9"E 3. Owner : PT. Jababeka Morotai 4. Tourism Business Opportunities: • Integrated Tourism Area (KBLI 68120). Estimated required initial funds: IDR 11.400 Billion (Excluding land lease, license and permit fees) 5. Available cooperation: The Investors are encouraged to invest in partnership PT Jababeka Morotai with the Local Government through the following cooperation: Jl. H. Usmar Ismail, Cikarang, Bekasi, West Java • Build, Operate and Transfer (BOT) P: +6221 22188360 • Joint Venture F: +6221 893 4350 • Other agreeable cooperation forms website: www.jababekamorotai.com

Head of Marketing & Investor Relations Mr. Alan Ye Mobile: +62812 8179 7035 Email: [email protected]

106 LABUAN BAJO| EAST NUSA TENGGARA 10 HOME OF DRAGON LABUAN BAJO GEOGRAPHY Province : East Nusa Tenggara DESTINATION PROFILE Regency : West Manggarai Capital City : Labuan Bajo Time Zone : Eastern Indonesia Time / (UTC) + 8 Coordinate : 8°29'18.7"S 119°52'57.6"E Area : 9,450 Km2 Borders : North (Flores Sea), West (West Nusa Tenggara) South (Sumba Island), East (East Manggarai Regency) Air Temp. : 27° C – 32° C Humidity : 80% Labuan Bajo DEMOGRAPHICS Population : 234,235 people Density : 0,02/Km2

ATTRACTION • The main tourist attraction of the West Manggarai Regency or even in the national level is the . The Komodo National Park cover an area of 1,817 km2, and consist of many beautiful islands for sailing, fishing and kayaking; and underwater spots such as diving and snorkelling. • Komodo National Park is the home of the world famous Komodo Dragon (Varanus Komodoensis) and serve as a conservation area for many other flora and fauna both on land and in the sea. There are several main islands in the Komodo National Park that attracts tourist, which are the Komodo Island, Island and Padar Island. There are also several rare pink beaches that are located in the Komodo National Park, such as in the Padar Island and Komodo Island. 108 LABUAN BAJO INVESTMENT OPPORTUNITIES SUMMARY (est.) LABUAN BAJO – ACCESIBILITIES & INFRASTRUCTURE Business Amount Needed Required Funds Per Total Accessibilities & Transportation Fields Business Field Required West Manggarai Regency is relatively easy to reach by Fund Per both domestic and international tourist. The main Business Field Category entry is from Ngurah Rai International Airport located in Bali Island, and tourists may continue to travel by Integrated 3 IDR 1.000 Billion, IDR 600 IDR 1.880 plane to the , by ferry to Labuan Bajo Tourism Billion, IDR 280 Billion Billion Seaport or overland cross Lombok and Area Island. 18 Hole 3 IDR 32 Billion IDR 96 Billion There are many traditional boats throughout the Golf regency that serves both as transportation and live on Course board vessel for tourists. In Labuan Bajo City, roads on Restaurant 1 IDR 5 Billion IDR 5 Billion the good condition, but beyond that the roads are in bad condition. Telecommunication Cafe 1 IDR 2.5 Billion IDR 2.5 Billion West Manggarai Regency is supported by adequate Total Required Fund in the Region (Excluding Land Lease, IDR 1.983.5 telecommunication facilities; both mobile network and License and Permit) Billion landline network are available. Tourism & Creative Economy Authority, East Nusa Tenggara Contact: Chief of Tourism & Creative Economy Authority, Mr. Marius Ardu Energy Jelamu The main source of energy in West Manggarai Regency Jl. Frans Seda No. 72 , East Nusa Tenggara comes from the National Electric Company, Diesel P: (+62380) 826384 Generator and Solar Panel. [email protected] http://tourism.nttprov.go.id 109 LABUAN BAJO Investment opportunities 1. Batu Cermin / Mirror Stone 2. Golomori Village

PROJECT INFORMATION PROJECT INFORMATION 1. Area : 20 Ha 1. Area : Up to 1.000 Ha 2. Coordinate : 8°28'45.26"S 119°53'56.41"E 2. Coordinate : 8°40'44.27"S 119°49'13.15"E 3. Owner : Local Government 3. Owner : Local Community 4. Tourism Business : 4. Tourism Business Opportunities: • 1 unit of Restaurant (KBLI: 56101). Estimated required initial funds: • Integrated Tourism Area (KBLI: 68120). Estimated required initial IDR 5 Billion (Excluding land lease, license and permit fees) funds: IDR 1.000 Billion (Excluding land lease, license and permit fees) • • 1 unit of Café (KBLI: 56303). Estimated required initial funds: IDR 18 Hole Golf Course (KBLI: 93112). Estimated required initial funds: IDR 32 Billion (Excluding land lease, license and permit fees) 2.5 Billion (Excluding land lease, license and permit fees) 5. Available cooperation: The Investors are encouraged to invest in 5. Available cooperation: The Investors are encouraged to invest in partnership with the Local Government through the following partnership with the Local Government through the following cooperation: cooperation: • Build, Operate and Transfer (BOT) • Build, Operate and Transfer (BOT) • Joint Venture • Joint Venture • Other agreeable cooperation forms • Other agreeable cooperation forms

110 LABUAN BAJO Investment opportunities 3. Loh Camba 4. Torong Wani

PROJECT INFORMATION PROJECT INFORMATION 1. Area : 619 Ha 1. Area : 281 Ha 2. Coordinate : 8°23'45.5"S 120°02'12.2"E 2. Coordinate : 8°24'46.4"S 120°00'30.4"E 3. Owner : Private Owner 3. Owner : Private Owner 4. Tourism Business Opportunities: 4. Tourism Business Opportunities : • • Integrated Tourism Area (KBLI: 68120). Estimated required initial Integrated Tourism Area (KBLI: 68120). Estimated required initial funds: IDR 280 Billion (Excluding land lease, license and permit fees) funds: IDR 600 Billion (Excluding land lease, license and permit fees) • 18 Hole Golf Course (KBLI: 93112). Estimated required initial funds: • 18 Hole Golf Course (KBLI: 93112). Estimated required initial funds: IDR 32 Billion (Excluding land lease, license and permit fees) IDR 32 Billion (Excluding land lease, license and permit fees) 5. Available cooperation: The Investors are encouraged to invest in 5. Available cooperation: The Investors are encouraged to invest in partnership with the Local Government through the following partnership with the Local Government through the following cooperation: cooperation: • Build, Operate and Transfer (BOT) • Build, Operate and Transfer (BOT) • Joint Venture • Joint Venture • Other agreeable cooperation forms • Other agreeable cooperation forms 111 LABUAN BAJO Investment opportunities

112 LABUAN BAJO Investment opportunities

113 LABUAN BAJO Investment opportunities

Contact: Mr. Alfonso Pardede Director, PT. Flores Prosperindo Mobile: +62 812-1267-7799 Email: [email protected]

114 INVESTMENT OPPORTUNITIES IN YOGYAKARTA

115 GENERAL INFORMATION OF THE REGIONS

YOGYAKARTA BANTUL GUNUNG KIDUL Status : The Capital of Status : Regency Status : Regency Yogyakarta Total Area : 506,85 km2 Total Area : 1.485,36 km2 Total Area : 32,50 km2 Administrative Divisions : 17 Subdistrics Administrative Divisions : 15 Subdistrics Administrative Divisions : 14 Subdistrics Population : 971.511 Population : 715.282 Population : 412.704 Economic Growth : 5,0% Economic Growth : 4.81% Economic Growth : 5,16% Primary Sector Bantul Primary Sector Gunung Kidul Primary Sector Yogyakarta Agriculture, plantation, animal husbandry, Agriculture, plantation, animal husbandry, Commerce, hotel, restaurant and service, marine fisheries, nature tourism, education, marine fisheries, nature tourism, education, tourism, education and relative industries. andindustry craft. and industry craft. KULON PROGO SLEMAN Status : Regency Status : Regency Total Area : 586,27 km2 Total Area : 574,82 km2 Administrative Divisions : 12 Subdistrics Administrative Divisions : 17 Subdistrics Population : 412.198 Population : 1.167.481 Economic Growth : 4,64% Economic Growth : 5,31% Primary Sector Kulon Progo Primary Sector Sleman Agriculture, plantation, forestry, animal Agriculture, tourism, education, property, husbandry, marine fisheries, mining and hotels, trading, business services, and tourism agricultural processing industry 116 Investment Opportunities

KULON PROGO INTERNATIONAL AIRPORT Passenger Employment (in Million) (in Thousand) 2015 7 – 8 28 - 32 2020 10,5 - 13 42 - 52 2025 14,2 -20 56,8 - 80

Investment Opportunities in Aerotropolis . Airport Transportation . Property Investment: Hotel, business offices, commercial buildings and entertainment. . Support Facilities: Parking and security . Industry: Aerofood

The needs of accessibility and connectivity in Yogyakarta are increasing along with the development of new growth centers. Urban railways are one of the transportation modes between urban areas that offer easy connectivity and affordability both in terms of time and cost. The existence of railway will support connectivity between New Yogyakarta International Airport (Kulon Progo International Airport) and tourism area, such as Borobudur, city centre, etc. Urban railway are planned in Yogyakarta with total length of 70 km and the need of 32 trains/day. Airport Train (Soekarno Hatta) 117 Investment Opportunities CREATIVE ECONOMY SECTOR Animation Battle of Surabaya that has gained high popularity created by 180 animators. This animation was produced by Mr. M Suyanto , rector of AMIKOM University and directed by Aryanto Kurniawan which is also known as CEO of MSV Pictures and also Alumni AMIKOM University.

Art & Graphic Design Yogyakarta is also known as the centre of art both performance art and fine art. An artist from Yogyakarta, Eko Nugroho has successfuly held his exhibition in many countries. Louis Vuitton, a world class fashion brand, proposed to use one of his works, called Republik Tropis displayed in Museed, Art Moderne, Paris, for being printed on their spring and winter scarf collection. Craft Craft is a feature that supports Yogyakarta as tourism city. Yogyakarta has many potentials that lifts up its Creative Economy is one of the prime movers of reputation, one of them is a craft centre such as silver in Kota Gede, leather in Manding Village, Pottery economy in Yogyakarta. Each area in Yogyakarta has its in Kasongan Village, and wood batik in Krebet Vilage. Yogyakarta has 3.600 varieties of craft industry. own potential which can be cultivated in such a way that changes into commodity that has a selling point. Yogyakarta is known as the centre of education. Fashion Yogyakarta has some unique villages. There are several Indonesian Batik is acknowledged as a world cultural heritage and Yogyakarta has designated as villages in Bantul with their own potential such as Batik center in the world by World Craft Council. Another successful product is handmade woodcraft, pottery in Kasongan Village. One craft bag,”Dowa” . center known as tourism destination in Yogyakarta is pottery industry in Kasongan , Bantul. Culinary Signatured dishes such as “Gudeg, Angkringan, Java Noddle, and Klatak satai” are the icon of Yogyakarta tourism. International food from Japan, South Korea, and Italy are promising. 118 Tourism in Yogyakarta Investment Realization in Tourism Sector in Yogyakarta (2013 - 2017)

29.9 In US$ Million 27.3 20.8 8.2 11.8 8.7 4.2 24.4 6.9 2.9 2013 2014 2015 2016 2017 DDI 8.2 8.7 2.9 24.4 6.9 FDI 21.7 12.1 1.4 3.0 4.9 Source: BKPM FDI DDI Non - Star Hotels Star Hotels . 561 Hotels . 64 Hotel . 10.963 rooms . 5478 rooms . 76.514 Foreign Tourist & 2.230.424 . 231.971 Foreign Tourist & tourists. (in 2015) 1.194.148 tourists. (in 2015)

The Cooperation and Investment Board Jalan Janti No.8 Banguntapan, Bantul, Yogyakarta 55198, Indonesia Phone : +62 274 552521 Fax : +62 274 552521 E-mail : [email protected] Website: www. jogjainvest.jogjaprov.go.id Investment Realization in Yogyakarta (2013 - 2017)

Average Annual Growth: (2013-2017) No Top 10 FDI in Yogyakarta US$ Million Project % Share (Value) • FDI : 41% 1 Malaysia 62.6 9 26% • DDI : 33% 2 Italy 58.9 14 25% 130.2 3 Singapore 40.3 78 17% • Total : 13% In US$ Million 118.1 4 South Korea 11.8 92 5% 5 France 11.5 57 5% 29.0 65.3 88.9 6 Japan 10.6 36 4% 7 Hongkong 8.2 19 3% 59.6 8 Netherland 7.8 46 3% 58.6 9 Australia 2.6 26 1% 69.2 22.1 10 Belgium 1.9 32 1% 30.0 89.1 Other Countries 23.4 161 9% 64.9 TOTAL 239.7 570 100% 29.6 36.5 19.6 No Top 5 FDI Sector in Yogyakarta US$ Mio % 1 Transportation, Warehouse, Telecommunication 60.7 25% 2013 2014 2015 2016 2017 2 Mining 58.1 24% 3 Hotel & Restaurant 38.9 16% FDI DDI 4 Other Service 16.5 7% 5 Trade & Reparation 16.4 7% Other 49.1 20% • In the last 5 years (2013 – 2017) investment realization in TOTAL 239.7 100% Yogyakarta is dominated by Foreign Investment (53%) with DDI FDI US$ 249 Million. No Top 5 FDI Sector in Yogyakarta US$ Mio % US$ 215 M US$ 239 M 1 Housing, Office, Industrial Park 65.3 30% (47%) (53%) • The number of project/company in Yogyakarta also 2 Hotel & Restaurant 48.5 22% dominated by FDI with 570 projects in last 5 years, while 3 Metal Machinery, Electronic 45.2 21% DDI has 221 projects. 4 Textile Industry 19.2 9% 5 Food Industry 6.1 3% • FDI contributes to 21,381 of local jobs creation, while DDI Other 31.4 15% contributes to 14,020 local jobs. TOTAL 215.7 100% Source: BKPM THANK YOU LETS INVEST IN INDONESIA

Indonesia Investment Coordinating Board follow us on Badan Koordinasi Penanaman Modal (BKPM) BKPM INDONESIA bkpm Jl. Jenderal Gatot Subroto No. 44 Jakarta 12190 - Indonesia Invest Indonesia bkpm_id Tel: (+6221) 525 2008 Indonesia Investment Fax : (+6221) 525 4945 www.investindonesia.go.id Contact Center : 0807 100 2576 Coordinating Board E-mail : [email protected] www.bkpm.go.id