INDONESIA AGRICULTURE INVESTMENT FORUM 2013 12 June 2013 at Lotte Hotel, 30 Eulji-Ro, Jung-Gu, Seoul

The Embassy of the Republic of Indonesia to the Republic of Korea

INDONESIA AGRICULTURE INVESTMENT FORUM 2013 12 June 2013 at Lotte Hotel, 30 Eulji-ro, Jung-gu, Seoul

The Ministry of Agriculture of the Republic of Indonesia and the Embassy of the Republic of Indonesia in Seoul would like to invite Korean companies to attend the Indonesia Agriculture Investment Forum 2013 to be held on:

Date : 12 June 2013 Venue : Sapphire Ballroom, 3th Floor, Lotte Hotel, 30 Eulji-ro, Jung-gu, Seoul.

In this Forum, the Deputy Minister of Agriculture of the Republic of Indonesia will come along with officials from 9 Provinces of Indonesia (Provinces of Riau, South Sumatera, West Kalimantan, East Kalimantan, Central Kalimantan, West Sulawesi, South East Sulawesi, East Nusa Tenggara, and Papua). During this forum, each Province will make presentation on concrete projects on investment opportunities on agriculture and agriculture industries in each Province, to offer for you. We attached herewith the list of Concrete Projects. During the Q&A or One-on-one meeting, you could discuss on the projects presented and other possible cooperation on agriculture with Indonesia.

The detail Program is as follow:

08:15 – 08:45 : Registration 08:45 – 08:48 : Report by Organizer 08.48 – 08.52 Welcoming remarks by the Ambassador of the Republic of Indonesia to ROK 08:52 – 09:00 : Keynote speech by the Director General (Deputy Minister) of Processing & Marketing for Agricultural Products, Ministry of Agriculture of the Republic of Indonesia 09:00 – 10:30 : Panel Presentation I: Investment Opportunities on:  Palm Oil Downstream Industry in Riau Province  Palm Oil Downstream industry in South Sumatera Province  Palm Oil and Rubber Downstream Industry in West Kalimantan Province  Palm Oil Downstream Industry in East Kalimantan Province  Palm Oil Downstream Industry in Central Kalimantan Province 10:30 – 11:00 : Q&A Session 11:00 – 12:15 : Panel Presentation II: Investment Opportunities on:  Cocoa Downstream Industry in West Sulawesi Province  Palm Oil Downstream Industry in South East Sulawesi Province  Banana Downstream Industry in East Kalimantan Province  Cattle Beef Production in East Nusa Tenggara Province  Cassava Downstream Industry in Papua Province 12:15 – 12:45 : Q&A Session 12:45 – 13:45 : Lunch 13:45 – 16:00 : One-on-One Meeting 09:00 – 16:30 : Small Exhibition

Note: If you are interested to attend the Forum, please kindly fill up the RSPV Form as attached herewith and sent it back to us. If you are also interested in having one-on-one meeting, it should also be notified in the RSPV form.

R.S.V.P The Indonesia Agriculture Investment Forum 2013 Wednesday, 12 June 2013, 08:45 am – 13.45 pm

At Sapphire Ballroom, 3th Floor, Lotte Hotel, 30 Eulji-ro, Jung-gu, Seoul

Name

Position

Affiliation

Address

Tel./Fax.

I will attend  I will not attend 

One-on-One Meeting Request: I hereby request one-on-one meeting with officials from Indonesia of: 1. Riau Province  2. South Sumatera Province  3. West Kalimantan Province  4. East Kalimantan Province  5. Central Kalimantan Province  6. West Sulawesi Province  7. South East Sulawesi Province  8. East Nusa Tenggara Province  9. Papua Province  10. Ministry of Agriculture 

Please, kindly complete the form and send it to: Inquiries: Fax.: 02-780-4280, 786-1292 Mrs. Kim Jung-eim / Ms. Mona Email: [email protected] / [email protected] Triane Anreyeni by 5th of June 2013 Tel: 02-783-5675~7, ext. 216

PROJECT OPPORTUNITIES TO BE INTRODUCED ON INDONESIA AGRICULTURE INVESTMENT FORUM 2013 TH 12 JUNE 2012, AT SAPPHIRE BALLROOM, 3 FL. LOTTE HOTEL, SOGONG-DONG SEOUL

I. PROVINCE OF EAST KALIMANTAN SUPPORTI NG FROM PROPOSED GOVERN PROJECT N MODE OF NO PROJECT COST PROJECT SCOPE MENT /FA CONTACT PERSON AME INVESTMEN CILITIES T PROVIDE D 1. CPO agro-in USD 4 – 5 million . Providing of plants . Providing of plants . Assistance for  Ms. Ir. Etnawati, M.Si, dustry (Rp. 40 – 50 billion) and equipment for and equipment for additional land Head of Services of Plantation 2. Cacao agro-i USD 1.5 – 2 million CPO, cacao and cacao and rubber for CPO, cacao  Phone/Fax:+62-541-736852 ndustry (Rp15 – 20 billion) rubber agro-industry agro-industry and rubber  Email : bu_perkebunan@yah 3. Rubber agro USD 2 – 3 million development development plantation oo.co.id -industry (Rp. 20 – 30 billion) . Cooperation/partnersh . Cooperation/partn . Facilities for the ip in agro-industry ership in agro- development of and agri-business industry and agri- equipment for (marketing) business the processing . Providing of (marketing). of cacao and infrastructures in the . Development of rubber. areas of the cacao infrastructure at and rubber development development. areas 4. Cassava agr USD 1.5 – 2 million . Development and . Development / . Facilitate the  Mr. Ir. H. Ibrahim, MP o-industry (Rp15 – 20 billion) additional land for area expansion of equipment Head of Services of Food Cro cassava as raw cassava development for ps Agriculture materials . Construction and cassava  Phone/Fax: +62-541-742484 . Providing of plants equipment of processing / +62541-743867 and equipment for cassava  Email: rijayarian767@yahoo. cassava agro-industry agroindustry com . Cooperation / . Cooperation / partnership in agro- partnership in industry and agro- agroindustry and business (marketing). agribusiness . Providing of (marketing) infrastructures in the . Supporting facility areas of the in the development projects development area

II. PROVINCE OF WEST KALIMANTAN

PROPOSED PROJECT PROJECT SUPPORTING FROM GOVERN NO PROJECT NAME MODE OF CONTACT PERSON COST SCOPE MENT /FACILITIES PROVIDED INVESTMENT 1. Coconut Could be cl Could be cl 1. Alliance 1. Transportation  Ms. Ir. Elfi Harty, processing arified durin arified durin 2.Direct Investment - Roads consist of state roads, Head of the Division of Proces industry and g Seminar g Seminar 3. Partnership province roads and city roads sing, Marketing and Institution Coconut estate and 1 on 1 and 1 on 1 - Sea Port: Sintete, Singkawang,  Phone/Fax : +62561-732642 expansion meeting meeting Pemangkat and Sambas, / +62561-766038 2. Rubber industry ( Ketapang, Telok Air  Email : bu_perkebunan@yah car spare part, s - Air Port: Supadio Airport with oo.co.id port, health, hous total flight of 35 – 50 per day or up ing industry, etc to 68 flights per day in peak 3. CPO factory and season with total passenger of 2.8 CPO refinery and million people per year. It has oleo chemical become the main center of 4. Area expansion o domestic and international flight in f Cacao Plantatio West Kalimantan. It connects n Pontianak to domestic destination (Batam, Jakarta, Yogyakarta), 5. Area expansion o overseas destination (Singapura f Pepper Plantati and Kuching Malaysia) and to on some regencies. 2. Electricity by PLN, water 6. Area expansion o supply, post and f Coffee Plantatio telecommunication n 3. Domestic and international banking services 4. Safety and law assurance 5. Effective procedure for permit through integrated services 6. Tax and fiscal incentive before commercial products 7. Area deployment

III. PROVINCE OF CENTRAL KALIMANTAN SUPPORTI NG FROM PROPOSED GOVERN PROJECT MODE OF NO PROJECT COST PROJECT SCOPE MENT /FA CONTACT PERSON NAME INVESTMEN CILITIES T PROVIDE D 1. Tire Factor Could be clarified duri Could be clarified duri Could be clarified d Could be clarified  Mr. Ir. Rawing Rambang, y ng Seminar and 1 on ng Seminar and 1 on uring Seminar and during Seminar an MP, 2. Palm Oil d 1 meeting 1 meeting 1 on 1 meeting d 1 on 1 meeting Head of Services of Plantatio ownstream n industries  Phone/Fax:+62-536- 322362 factory 5 3. Coconut oi  Email : disbunpphp@yahoo. l mill com

IV. PROVINCE OF EAST NUSA TENGGARA (NTT) SUPPORTIN G FROM G PROJECT PROPOSED MODE OVERNMEN NO PROJECT COST PROJECT SCOPE CONTACT PERSON NAME OF INVESTMENT T /FACILITI ES PROVID ED 1. Agribusines USD 10.85 million . Facility development . Direct investment from . Sea Port  Mr. Ir. Semuel Rebo s developm . Cattle seeding private companies . Airport Head of Head of Anim ent of mea (Rp. 108.5 billion) procurement . Partnership between . State and province al Husbandry t cow . Operational private companies and road that already  Phone/Fax : +62380- provincial government connected the 831821 / +62380-825 meat cow areas 250 with airport and  Email : disnak_ntt@y sea port. ahoo.com . Communication facility (PT. Telkom) that has reached almost all of regions in NTT . Electricity (PLN)

V. PROVINCE OF RIAU SUPPORTI NG FROM GOVERN PROJECT PROPOSED MODE CONTACT PE NO PROJECT COST PROJECT SCOPE MENT /FA NAME OF INVESTMENT RSON CILITIES PROVIDE D 1. Fatty Acid USD 69.3 million Downstream Industry of Oil . Full Capital: Investor own . Sea Port: with  Mr. Ferry HC Erna Factory Palm in relation with: 100% stock of investment capacity of Putra.M..Si, (Rp. 693 billion) • Supplier Industry of CPO capital. Cooperation with 35.000 DWT Head of Division of Pr 2. Biodiessel F USD 50.4 million (Oil Palm Factory) and local government . Land, Air, ocessing and Marketin actory (Rp 504 billion ) PKO (PKO Factory); . is conducted for field Marine and river g of Plantation Produc 3. Fatty Alcoh USD 172 million • Core Industry (Refinery, operational; transportation ts ol Industry (Rp. 1.72 trillion) Fractionation, Fatty Acid, . • Joint Operating Unit infrastructure  Phone/Fax+62761-2 4. Olein –Stea USD 16 million Fatty Alcohol, Biodiesel); developed by Provincial are available. 6700 rin Industry (Rp160 billion) •Related Industry Government to arrange the  Email : ferryriaubun 5. MES (Metil USD 78.8 million (Vegetable Oil, Margarine, development activity in @gmail.com Ester Sulfon (Rp788 billion) Shortening, BS/CBE/CBX, the downstream industry of at) Surfacta Surfactant/emulsifier, oil palm. The Provincial nt Industry Shoapchip, soap/detergent, Government manages the 6. Soap Indust USD 55 million etc); land and investment ry (Rp 550 billion) •Supporting Industry regulation while the (Packaging industry, investor handles the methanol industry, development of the 7. Oil Palm Bi USD 9.1 million hydrogen industry, catalyst business units. omass Pow (Rp 91 billion) and other chemical . Built Operational Transfer er Plant material). (BOT). Investors develop the downstream industry of oil palm with 20-year ownership to be transferred to the Regional Government in the 21st year. . Fifty-fifty (50%:50%). Investor and the Provincial Government jointly develop the downstream industry of oil palm with stock composition of 50% from investor and 50% from the Provincial Government.

VI. PROVINCE OF WEST SULAWESI SUPPORTING FRO PROPOSED M PROJECT M GOVERNMENT /F CONTACT PE NO PROJECT COST PROJECT SCOPE ODE OF INVE NAME ACILITIES PROVIDE RSON STMENT D 1. Cacao proc USD 15 million Could be clarified duri . Direct investment . Sea port  Mr. Ir. Supriyatno, essing facto (Rp. 150 billion) ng Seminar and 1 on . Partnership between . Airport MA. MMA, ry 1 meeting the government and . State roads, province roads Head of Services of P private and regency roads lantation companies connecting the production  Phone/Fax : +62426- center of cacao 2325286 . Telecommunication facility  Email : perkebunan_ (PT. Telkom) has reached [email protected] almost all regions of West Sulawesi

VII. PROVINCE OF SOUTHEAST SULAWESI SUPPORTI NG FROM GOVERN PROJECT PROJECT CO PROPOSED MODE CONTACT PE NO PROJECT SCOPE MENT /FA NAME ST OF INVESTMENT RSON CILITIES PROVIDE D 1. Palm Oil In USD 2.1 millio . Oil palm cultivation . The development of nucleus Integrated service  Mr. Ir. H.A. Chaidir dustry n (estate) estate office Nurdin, MBA, (Rp. 21 billion) . Oil palm processing . The development of Head of Services of P (factory) smallholders estate lantation and Horticultu . Based on profit sharing re system as follows, 40 % for  Phone/Fax : +62401- farmers and 60% for 3121953 / +62401-3 companies 122182  Email : ng-amiruddin @rocketmail.com

VIII. PROVINCE OF PAPUA SUPPORTING FROM GOVERN CONTACT PERSON PROJECT PROJECT PROPOSED MODE NO PROJECT NAME MENT /FACILITIES PROVIDED COST SCOPE OF INVESTMENT

1. Rice (Seeding, Could be cl Could be . Direct investment . Transportation: Road, airport  Ms. Ir. Anna O.S.H. Cultivation of paddy, arified durin clarified d . Joint business and sea port Sawai, rice field, mechanized g Seminar uring Sem . Electricity from PLN (state Head of Services of Ag rice mills) and 1 on 1 inar and 1 ownwd Company), Postal and riculture and Food Tena 2. Corn (Seeding, corn c meeting on 1 me Telecommunication service are city ultivation, cattle fed, m eting available.  Phone/Fax : +62967- echanization of pre po 583158 / +62967-585 st harvest) 229 3. Soya (Seeding,  Email : anna.sawai@y processing industry, ahoo.co.id and mechanization) 4. Peanut (Seeding, proc essing industry, and m echanization) 5. Green bean (Seeding, processing industry, an d mechanization) 6. Cassava (Cultivation, fl our industry and mech anization) 7. Sweet Potato (Cultivati on, flour industry and mechanization) 8. Various Fruit and vege tables (Cultivation)

IX. PROVINCE OF SOUTH SUMATERA

SUPPORTING FR PROPOSED PROJECT OM GOVERNME NO PROJECT NAME PROJECT COST MODE OF SCOPE NT/FACILITIES P CONTACT PERSON INVESTMENT ROVIDED 1. Palm Oil Cluster Industry . Refinery Project : Could be cl Could be clar . Transportation  Ms. Ir. Hj. Sri Murhartati, USD 1.4 million per arified durin ified during S infrastructures M.Si., unit g Seminar eminar and 1 such as land Senior Officer of Processin . Biodiesel Project: and 1 on 1 on 1 meetin roads, railways, g and Marketing of Plantati USD 1.5 million per meeting g international on Products unit airports and  Phone/Fax : +62711-357 . Biomass and Waste seaport 569, 351451 / +62711-3 Utilization Product . electricity supply 77250 Fibre, briquette, based on various  Email : sri.murhartati@y etc.): USD energy sources, ahoo.co.id 8.1million per unit clean water . Oleochemical and supply, postal and other potential telecommunicatio projects: to be n services, and discussed. local, national and 2. Rubber Industries Could be clarified duri international (Machinery Rubber Goods ng Seminar and 1 on banks. such as:ring seal, conveyer 1 meeting . Commitmen to provide service belt, huller belt, etc; Health excellent on Rubber Goods (glove, business contraception products, etc); permission Automotives spare parts; procedures, Tyre Vulcanizer; Other rubber conducive goods) business atmosphere, 3. Coffee Industries (Package Could be clarified duri guarantee law or Sachet coffee-mix; ng Seminar and 1 on certainty and security for the Specialty coffee cafe’s; 1 meeting investment, and Coffee based gum/candy tax incentives. 4. Coconut Indutries Could be clarified duri (Integrated Coconut ng Seminar and 1 on Industries (coconut milk, 1 meeting desicated coconut, coconut

peat, coconut fibre, coconut wood productds, etc; Virgin Coconut Oil (VCO); Coconut Water Product Industries such as: Nata de coco, isotonic coconut water)

CATALOGUE INDONESIA AGRICULTURE INVESTMENT FORUM 2013 LOTTE HOTEL SEOUL, 12 JUNE 2013

I. PROVINCE OF EAST KALIMANTAN SERVICES OF PLANTATION

Institution : Services of Plantation the Province of East Kalimantan Address : Jl. MT. Haryono Samarinda East Kalimantan, Indonesia Phone / Fax : +62541-736852 Email : [email protected] Contact Person : Ir. Etnawati, M.Si Position : Head of Services Line of Busines : Plantation

DEVELOPMENT OF AGROINDUSTRY ON THE PROCESSING OF CRUDE PALM OIL, CACAO AND RUBBER IN EAST KALIMANTAN

INTRODUCTION In efforts to increase the income and prosperity of farmers in the Province of East Kalimantan, the local government continues to develop the commodities of crude palm oil (CPO), cacao and rubber. Crude palm oil plantations have so far been massively developed by major state and private plantation companies. Meanwhile, the development of commodities of cacao and rubber plantation is still carried out traditionally by local farmers. Cacao and rubber have great prospect if developed through the implementation of a comprehensive agro-business and agro- industry concept, that is, the development of a farming business integrating on farm process to processing and marketing processes based on the improvement on prosperity and production as well as the availability of adequate land and the increasing demand for the commodities. The high demand is the main reason to develop CPO, cacao and rubber agro-business and agro-industry in East Kalimantan.

East Kalimantan has 961,802 hectares of plantation with the production of 5,734,464 tons of CPO or 14,312 kilograms per hectare; 23,492 hectares of cacao plantation with the production of 23,206 tons of dry cacao seeds or 1,468 kilograms per hectares; and 91,254 hectares of rubber plantation with the production of 74,648 tons or 1,441 kilograms per hectare.

The local government will centralize cacao downstream industry in KIPI Maloy Industrial Estate, East Kutai Regency; cacao industry in East Kutai Regency, Berau Regency, Nunukan Regency and Malinau Regency; and rubber industry in West Kutai Regency, Kutai Kertanegara Regency, North Penajam Paser Regency and Paser Regency.

PROJECT/PRODUCT The project to be developed is the development of agro-industry in the processing of the commodity of CPO, cacao and rubber in East Kalimantan.

REASON OF ADITIONAL INVESTMENT The province need additional investment for the development of CPO, cacao and rubber through the processing CPO to become its derivative products; cacao seeds to become flour, mints and other processed products; and rubber latex to become rubber smoke sheets, crumb rubber for processing and industry materials. LOCATION A. CPO

1. East Kutai Regency

B. Cacao 1. Berau Regency 2. East Kutai Regency

C. Rubber 1. West Kutai Regency 2. Kutai Kertanegara Regency 3. Paser Regency

LEGAL ASPECT Investment is made in the form of cooperation or partnership between investor and the local government actualized in MOU.

ESTIMATED BUDGET OF INVESTMENT The estimated budget of investment is Rp40,000,000,000 to 50,000,000,000 for the development CPO agro-industry; Rp15.000.000.000 to Rp20.000.000.000 for cacao agro-industry; and Rp 20.000.000.000 to Rp 30.000.000.000 for rubber agro-industry.

SCOPE OF PROJECT - The providing of plants and equipment for CPO, cacao and rubber agro-industry development - Cooperation/partnership in agro-industry and agri-business (marketing) - The providing of infrastructures in the areas of the cacao and rubber development.

PROPOSED MODE OF INVESTMENT Investment in : - The providing of plants and equipment for cacao and rubber agro-industry development - Cooperation/partnership in agro-industry and agri-business (marketing). - Development of infrastructure at development areas.

CONTRIBUTION NEEDED BY PARTNER - Capital/cost/fund - Labors for equipment and infrastructures

INVESTMENT POLICIES The provincial and regional governments in the Province of East Kalimantan recommend investors to develop CPO, cacao and rubber agro-industry in East Kalimantan.

SUPPORTING GOVERNMENT FACILITIES PROVIDED The government implements programs financed by regional and state budgets as follows: - Assistance for additional land for CPO, cacao and rubber plantation - Facilities for the development of equipment for the processing of cacao and rubber.

SCHEDULE OF PROJECT Resuming in 2014

II. PROVINCE OF EAST KALIMANTAN SERVICES OF FOOD CROPS AGRICULTURE

Institution : Services of Food Crops Agriculture Of The Province of East Kalimantan Address : Jl. Basuki Rahmat NO. 6, Samarinda – East Kalimantan, Indonesia Phone / Fax : +6241-742484 / +62541-743867 Email : [email protected] Contact Person : Ir. H. Ibrahim, MP Position : Head of Services

INTRODUCTION In order to increase the farmers’ income and welfare in East Kalimantan, food diversification other than rice, corn and soy is considered significant. The perfect alternative for food diversification is cassava commodity with prospective benefit in large scale development. Cassava products like tapioca, dried cassava, etc have become the promising agricultural commodity in local and foreign market. The agribusiness and agroindustry development of cassava is highly potential due to the vast area of land and marketing opportunity. Based on preliminary data in 2012, cassava production in East Kalimantan is 82,844 ton with total area of 4,701 Ha, while productivity reached 176.23 quintal/Ha.

PROJECT / PRODUCT Project to be developed in East Kalimantan is the agroindustry development of cassava processing.

REASON FOR ADDITIONAL INVESTMENT To develop the cassava commodity in East Kalimantan through cassava processing agroindustry, increase the processing material and industry material.

LOCATION 1. Regency of West Kutai 2. Regency of East Kutai

LEGAL ASPECT Cooperation or partnership between investors and the Provincial Government stated in the form of MOU

ESTIMATED BUDGET OF INVESTMENT Estimated budget of investment for the cassava agroindustry development is: Rp. 15.000.000.000 s/d Rp 20.000.000.000

SCOPE OF PROJECT - Development and additional land for cassava as raw materials - The providing of plants and equipment for cassava agro-industry - Cooperation / partnership in agro-industry and agro-business (marketing). - The providing of infrastructures in the areas of the development projects

PROPOSED MODE OF INVESTMENT Investment on the following: - Development / area expansion of cassava - Construction and equipment of cassava agroindustry - Cooperation / partnership in agroindustry and agribusiness (marketing) - Supporting facility in the development area

CONTRIBUTION NEEDED BY PARTNER - Capital / fund - Skilled manpower for equipment and facility

INVESTMENT POLICY

The Provincial Government of East Kalimantan provide recommendations to investors in order to develop the cassava agroindustry in East Kalimantan

SUPPORTING FACILITY Government programs through APBD (Regional Budget) and APBN (State Budget): - Facilitate the equipment development for cassava processing

PROJECT SCHEDULE Starting in 2014

III. PROVINCE OF WEST KALIMANTAN SERVICES OF PLANTATION

Institution : Services Of Plantation Of The Province Of West Kalimantan Address : Jl. Moh. Hambal No. 3 Pontianak, West Kalimantan, Indonesia Phone / Fax : +62561-732642 / +62561-766038 Contact Person : Ir. Elfi Harty Position : Head of the Division of Processing, Marketing and Institution

INTRODUCTION The total area of the Province of West Kalimantan is 147,307 km2 consists of 12 regencies and 2 cities with the population of 5,193,272 people. This province in located at Kalimantan island on 20 80’ NL – 3 05’ SL and 108 EL – 114 10’ EL. Based on this specific geographic location, West Kalimantan is positioned right along the equator. West Kalimantan borders directly with Sarawak –East Malaysia connected with 5 border crossings (Entikong –Sanggau Regency, Aruk –Sambas Regency, Badau –Kapuas Hulu Regency, Jagoi Babang – Bengkayang Regency, and Jasa –Sintang Regency). Bordering regions of West Kalimantan Province are: 1. Sarawak –Malaysia (north side) 2. Java Ocean and Central Kalimantan (south side) 3. East Kalimantan (east side) 4. Karimata Strait (west side)

POTENCY AND INVESTMENT OPPORTUNITY IN ESTATE CROP

COMMODITY TARGET TOTAL PRODUCTION LOCATION HARVEST INVESTMENT AREA AREA (Ton) (Production SEASON OPPORTUNITY (Ha) (Ha) Center in Regency) Coconut 300,000 108,141 78,172 Sambas, January – - Coconut (Copra) Ketapang, December processing Pontianak, industry Kubu Raya, - Coconut Bengkayang estate expansion Rubber 1,200,000 588,229 249,539 12 January – Rubber industry (Sheet, Slab, regencies, December (car spare part, Lump) mostly in sport, health, Sanggau, housing Landak, industry, etc) Sambas, Bengkayang, Sekadau, Melawi, Kubu Raya, Ketapang Palm Oil 1,500,000 880,767 967,626 12 regencies January – - Oil refinery (CPO) December and oleochemical - CPO factory Cacao 50,000 13,432 3,686 Sanggau, January – Area expansion Bengkayang, December Landak Pepper 50,000 8,469 3,745 Bengkayang, January – Area expansion Sanggau, December Sintang Coffee 50,000 12,273 4,011 Kubu Raya January – Area expansion December

Proposed Mode of Investment: 1. Alliance 2. Direct Investment 3. Partnership

Contribution Needed by Partner: Technology, Capital and Marketing

INVESTMENT POLICIES - Safety and law assurance - Effective procedure for permit through integrated services - Tax and fiscal incentive before commercial products - Area deployment

SUPPORTING FACILITIES 1. Transportation - Roads consist of state roads, province roads and city roads - Port: > Sintete, Singkawang, Pemangkat and Sambas > Ketapang > Telok Air - Supadio Airport with total flight of 35 – 50 per day or up to 68 flights per day in peak season with total passenger of 2.8 million people per year Supadio Airport (Pontianak) has become the main center of domestic and international flight in West Kalimantan. It connects Pontianak to domestic destination (Batam, Jakarta, Yogyakarta), overseas destination (Singapura and Kuching Malaysia) and to some regencies.

2. Electricity by PLN, water supply, post and telecommunication 3. Domestic and international banking services

IV. PROVINCE OF CENTRAL KALIMANTAN SERVICES OF PLANTATION

Institution : Services of Plantation of Central Kalimantan Address : Jl. Jenderal Sudirman Number. 18 Palangka Raya Central Kalimantan - Indonesia Phone / Fax : +62536 - 3223625 Email : [email protected] Contact Person : Ir. Rawing Rambang, MP.

INTRODUCTION

Central Kalimantan is one of Indonesia’s provinces located in Kalimantan Island. The province has a territory of 153.564 Km2 divided into 13 regencies and 1 cities inhibited by 2.249.146 people. The province has prime agriculture products such as rubber, palm oil, and coconut.

INVESMENT PROJECTS

The government of the province of Central Kalimantan will further the production and processing of the commodities :  Rubber  Palm oil  Coconut.

Rubber Area : 469.808 Ha Production : 251.574 Ton Productivity : 535,4 Kg /Ha Central Production : Pulang Pisau, Gunung Mas, Bartim, Murung Raya, Barut. Market Product : Slab, Lump.

Selling the slab and lump to the crumb rubber factory and processing to SIR 20, total of crumb rubber factory 4 unit in central Kalimantan. 1 unit in Barito Selatan, 1unit in Kotawaringin Timur, 1 unit in Barito Selatan, and 1 unit in Palangka Raya City. Given rubber growing area, there are investment opportunities for the development of the tire factory. Planned construction site in Palangka Raya, Pulang Pisau and Kotawaringin Timur.

Palm oil Area : 1.014.441,535 Ha Production : 3.921.195 Ton Productivity : 3,87 Kg/Ha Central Production : Kotawaringin Barat, Kotawaringin Timur, Seruyan, Sukamara, Katingan, Lamandau, Kapuas Market Product : CPO, PKO

Total of palm oil factory is 67 units : 2 unit in Barito Utara, 14 unit in Kotawaringin Barat, 16 unit in Seruyan, 25 unit in Kotim, 3 unit in Sukamara, 3 unit in Lamandau, 2 unit in Kapuas, and 2 unit Katingan.

Based on area and production area is in Central Kalimantan has the Potensial for the development of downstream industries factory. Planned construction site in Kotawaringin Barat. Coconut Area : 75.183 Ha Production : 70.871 Ton Productivity : 942,6 Kg/Ha Central Production : Kotawaringin Timur, Kapuas and Pulang Pisau

Market Product : Kopra

Based on area and production area is in Central Kalimantan has the Potensial for the development of coconut oil mill. Planned construction site in Pulang Pisau, Kotawaringin Timur, Kapuas.

V. PROVINCE OF RIAU SERVICES OF PLANTATION

Institution : Services of Plantation of the Province of Riau Address : Jl. Cut Nyak Dien No. 6 Pekanbaru – Riau - Indonesia Phone / Fax : +62761-26700 Email : [email protected] Contact Person : Ir. Ferry HC Erna Putra.M..Si Position : Head of Division of Processing and Marketing of Plantation Products

INTRODUCTION Based on statistic data in, total area of crop estate in the Province of Riau amounted to 2.2 million Ha or about 25% of total area of crop estate in Indonesia. CPO production reached 7,045,632 ton and 1,761,408 ton for PKO production. Exported palm oil mostly in the form of CPO (76%), that indicates the wide-ranging potency of downstream industry of palm oil. Produced by palm oil factory, CPO is processed into its derivative products with more added values. The Provincial Government of Riau has planned the cluster development for the downstream industry of palm oil by processing CPO into downstream products. The cluster development of this industry includes supplier industry, core industry and related industry. For the south region, the cluster development of palm oil is located at Kuala Enok. In order to accelerate the development growth, the Provincial Government of Riau has three development zones of main port as the central of growth and distribution. The three ports are Dumai Port – as the development connector to north area, Tanjung Buton Port –as the development connector to central area, and Kuala Enok Port –as the development connector to south area. The development is conducted in line with the Government Regulation No. 32 in 2011 regarding the Master Plan for the Acceleration and Expansion of Indonesia's Economic Development (MP3EI) regarding Sumatera as the Indonesia’s Economic Corridor that become the production and processing center for crops as well as the national energy producer. In addition, this region hopefully will become the main access for the national economy to explore the international market, particularly Europe, Africa, East Asia, South Asia and Australia. In the field of estate crop, the economic activities in Sumatera comprise palm oil, rubber, coal, etc.

PROJECT / PRODUCT Products to be developed in the downstream industry are: - Fatty Acid Industry; - Biodiesel Industry; - Fatty Alcohol Industry; - Olein – Stearin Industry; - MES (Metil Ester Sulfonat) Surfactant Industry; - Soap Industry; - Biomass Power Plant

REASON FOR ADDITIONAL INVESTMENT - Increase the foreign exchange; - Increase the added value of the downstream industry of palm oil; - Enhance the competitiveness of the downstream industry of palm oil; - Improve the National Food Crops and Energy Security; - Increase the employment rate

LOCATION The Industrial Zone of Kuala Enok ( KIKE ) is located at Kuala Enok Village, Tanah Merah and Sungai Batang District, Indragiri Hilir Regency, with total area of 5,439 Ha. This zone is planned to integrate with the port development in the area of 105 Ha. Its position is adjacent to Malaka Strait, Natuna Sea and Kuala Enok Port. Based on research, this region has prospective development potential for the industry of frozen food and shrimp, fish oil and powder, corn oil, copra, coconut and palm oil processing, margarine, stearin, oleic acid, fatty alcohol, polyaloxilated derivatives, fatty alcohol ester and metalic salt. In addition, it is

considered suitable for the industry of dairy products, cheese, canned fish, tapioca, glucose and fructose syrup, dextrin, CPO, copra, soap, vegetable oil, coconut shell charcoal, active carbon, chip and particle woods, molding, veneer, plywood, cosmetic and perfume, adhesive.

LEGAL ASPECT The cluster development of the downstream industry of palm oil is implemented based on these following regulations:

1. Government Regulation no 28 in 2008 regarding the National Industry Policy 2. President Instruction 1 in 2010 regarding the Acceleration of National Development in 2010. 3. Regulation of the Ministry of Industry No. : 13/M-IND/PER/2010 regarding the Regulation Adjustment of the Ministry of Industry NO.III/M-IND/PER/10/2009 regarding the Roadmap of cluster development of the downstream industry of palm oil. 4. Regulation of the Ministry of Industry No : 103-137/M-IND/PER/10/2009 regarding the Roadmap of the development of Priority Industry Cluster in 2010-2014 5. Regulation of the Ministry of Industry NO.15/M-IND/i/2010 regarding the Implementation Team of Petrochemical Industry Cluster and the Implementation Team of Downstream Industry of Palm oil.; 6. Decree of the Regent of Indragiri Hilir KPTS No. 278/VIII/HK-2010 regarding the Development Zone Appointment of Industry Cluster Based on Agriculture and Oleochemical in the downstream industry of palm oil; 7. Decree of the Regent of Indragiri Hilir KPTS No. 391/XI/HK-2010 regarding the Adjustment for Development Zone Appointment of Industry Cluster Based on Agriculture and Oleochemical in the downstream industry of palm oil; 8. Decree of the Regent of Indragiri Hilir KPTS No. 315/VIII/HK-2010 regarding the Team Formation for the Industry Cluster Development Based on Agriculture and Oleochemical in the downstream industry of palm oil; 9. Decree of the Regent of Indragiri Hilir KPTS No. 278/VIII/HK-2010 regarding the Formation of Indentification Team for Industry Cluster Area Based on Agriculture and Oleochemical in the downstream industry of palm oil.

ESTIMATED BUDGET OF INVESTMENT 1. Fatty Acid Industry Fatty acid industry made from PKO is planned to reach the PKO capacity of 400 ton/day with the following budget of investment and capital

Estimation Budget of Investment and Capital for Fatty Acid Factory

NO DESCRIPTION VALUE (Rp x 1.000) 1. Investment a. Building and Processing Station Equipment 544.500.000 b. Housing 4.041.000 c. Vehicle 880.300 d. Permit costs etc 308.593 e. DED 2.748.649 Total (1) 552.478.542 2. IDC*) 46.408.198 Total Project Cost**) 598.886.740 3. Capital 93.442.039 TOTAL 1-3 692.328.778 Notes: *) IDC (Interest During Construction) in one year amounted to 12% **) Tax Excluded

2. Biodiessel Factory

The construction of Biodiessel Factory using palm oil as its material with capacity of 100,000 ton/year requires investment budget of Rp 466 billion (including IDC of Rp. 36 billion) as stated in following table:

Estimation Budget of Investment and Capital for Biodiessel Factory

NO DESCRIPTION VALUE (Rp x 1.000) 1. Project cost 430.000.000 2. IDC 36.120.000 Total Project Cost**) 466.120.000 3. Capital 37.339.761 TOTAL 1-3 503.459.761 3. Fatty Alcohol Industry The construction of fatty alcohol industry using PKO as its material with capacity of 300 ton fatty alcohol/day requires investment funds as follow

Estimation Budget of Investment and Capital for Fatty Alcohol Industry

NO DESCRIPTION VALUE (Rp x 1.000) 1. Investasi a. Investment 1.435.500.000 b. Building and Processing Station Equipment 5.357.250 c. Housing 880.300 d. Vehicle 308.593 e. DED 7.210.962 Total (1) 1.449.403.355 2. IDC*) 121.749.882 Total Project Cost**) 1.571.153.236 3. Capital 152.236.693 TOTAL 1-3 1.723.389.929

4. Olein –Stearin Industry Following is the table of fund requirement for the construction of refinery industry with capacity of 180,000 ton/year.

Estimation Budget of Investment and Capital for Olein –Stearin Industry

NO DESCRIPTION VALUE (Rp x 1.000) 1. Project Cost Land 5.400.000 Building 18.000.000 Equipment 53.550.000 Utilities 4.743.000 Storage Tank 9.000.000 Office Itinerary 360.000 Laboratory Equipment 540.000 Vehicle 1.350.000 Tax 10% & other tax 9.294.300 Project Cost 102.237.300 2. IDC*) 8.587.933 Total Project Cost**) 110.825.233 3. Capital 48.768.256 TOTAL 1-3 159.593.489

5. MES (Metil Ester Sulfonat) Surfactant Industry MES (Metil Ester Sulfonat) Surfactant factory with capacity of 50,000 ton/year require project cost, capital and IDC of Rp. 787,70 billion.

Estimation Budget of Investment and Capital for MES (Metil Ester Sulfonat) Surfactant Industry

NO DESCRIPTION VALUE (Rp x 1.000) 1. Project Cost a. Building and Equipment of Processing 648.016.000 Station b. Housing 4.837.250 c. Vehicle 894.300 d. Permit Cost etc 303.719 e. DED 3.270.256 Project Cost 657.321.525 2. IDC*) 55.215.008 Total Project Cost**) 712.536.534 3. Capital 75.168.991 TOTAL 1-3 787.705.525

6. Soap Industry Soap industry with capacity of 3,375 pieces/day require total investment and capital of Rp 549,8 million as follows.

Estimation Budget of Investment and Capital for Soap Industry

NO DESCRIPTION VALUE (Rp x 1.000) 1. Investment a. Building (rent for 5 years) 50.000.000 b. Equipment 120.500.000 c. Total 1 170.500.000 2. Capital 379.352.068 TOTAL 1-3 549.852.068

7. Palm oil Biomass Power Plant The construction of palm oil biomass power plant with capacity of 5,92MW requires total investment of USD 9.899.635 or Rp 90.867.000.000,- as stated in the following table.

Estimation Budget of Investment and Capital for Palm oil Biomass Power Plant

NO DESCRIPTION USD 1. EPC 7.488.170,00 2. Others Cost 700.714,88 3. Financing Fee & Contingencies 1.662.536,32 4. Legality (UKL,UPL) 48.213,81 Total 9.899.635,01

SCOPE OF PROJECT Downstream Industry of Palm oil in relation with: • Supplier Industry of CPO (Palm oil Factory) and PKO (PKO Factory); • Core Industry (Refinery, Fractionation, Fatty Acid, Fatty Alcohol, Biodiesel); • Related Industry (Vegetable Oil, Margarine, Shortening, CBS/CBE/CBX, Surfactant/emulsifier, Shoapchip, Soap/detergent, etc); • Supporting Industry (Packaging industry, methanol industry, hydrogen industry, catalyst and other chemical material).

PROPOSED MODE OF INVESTMENT • Full Capital: Investor own 100% stock of investment capital. Cooperation with local government is conducted for field operational;

• Joint Operating Unit developed by Provincial Government to arrange the development activity in the downstream industry of palm oil. The Provincial Government manages the land and investment regulation while the investor handles the development of the business units. • Built Operational Transfer (BOT). Investors develop the downstream industry of palm oil with 20-year ownership to be transferred to the Regional Government in the 21st year. • Fifty-fifty (50% : 50%). Investor and the Provincial Government jointly develop the downstream industry of palm oil with stock composition of 50% from investor and 50% from the Provincial Government.

INVESTMENT POLICY Investment policy will be aimed to: • Law assurance and safety in investment • Provide easy access of permit for investors willing to join the cluster • Provide tax and retribution deduction;

SUPPORTING FACILITIES Supporting facility available in the downstream industry of palm oil - Kuala Enok : • Port : 35.000 DWT; • Concrete Port : 80 m, average depth of 10 m; • Sailings route : 18,8 mile, average depth of 5,5-11 m, width 600 m; • Road and Bridge: width 7 m and length 45 km; • Port area : 105 ha; • Cluster area : 5.439 ha.

Road Access to Downstream Industry of Palm oil

Length NO Accessibility Road (Km) 1. Pelalawan – Kuala Pelalawan-Pematang Reba- Simpang 311 Enok Granit-Bagan Jaya- Kuala Enok 2. Kuansing – Kuala Kuansing- Air Molek-Pematang Reba- 313 Enok Simpang Granit-Bagan Jaya-Kuala Enok 3. Rengat – Kuala Enok Pematang Reba-Simpang Granit- 241 Bagan Jaya-Kuala Enok

• Land Transportation : Most of the road condition at the Regency of Indragiri Hilir already consist of paved roads comprising national road that connect Pekanbaru – Jakarta trough Jambi, main roads that connect cities and primary roads that connect the Regency Capital with District Capital. In addition, fully established Indragiri bridge has facilitated the access and mobility in the Regency of Indragiri Hilir.

• River Transportation : the Regency of Indragiri Hilir has Indragiri River and other large rivers for transportation of speed boat, motor boat and boat.

• Marine Transportation : supported by the sea port - LASDAP Tembilahan Port dan Barang Container Port at Parit 21 Tembilahan. Kuala Enok sea port is the main access adjacent to the international trade routes. This port will be integrated with the Industrial Zone of Kuala Enok (KIKE) as Palm oil Cluster in Riau Province.

• Air Transportation: the Regency of Indragiri Hilir has one airport -“Bandara Baharuddin Yusuf”Airport at Tempuling District about 30 minutes away from Tembilahan City.

PROJECT SCHEDULE The development of Downstream Industry of Palm oil will be conducted in several phases. First phase provides total area of 460.62 Ha. The plan for Phase 1 will be started in 2014 with following details:

Allotment Plan for Phase 1

NO ALLOTMENT AREA (Ha) 1. Small Industry 10,91 2. Medium Industry 52,20 3. Large Industry 103,14 4. Power Plant 6,04 5. Small Warehouse 7,68 6. Medium Warehouse 24,67 7. Large Warehouse 61,99 8. Office 12,25 9. Management Office 6,15 10. Housing 15,96 11. Water Treatment Plant 4,56 12. Shops 2,64 13. IPAL 5,81 14. Recreation 13,97 15. Public Facility 3,92 16. Existing Housing 23,73 17. Port 105,00 Total 460,62

VI. PROVINCE OF WEST SULAWESI SERVICES OF PLANTATION

Institution : Services of Plantation of the Province of West Sulawesi Address : Jl. H. Abd. Malik Pattana Endeng - Komp Kantor Gubernur, Simboro Mamuju, West Sulawesi - Indonesia Phone / Fax : +62426-2325286 Email : [email protected] Contact Person : Ir. Supriyatno, MA. MMA Position : Head of Services of Plantation of the Province of West Sulawesi

INTRODUCTION The prospect of cacao processing factory has been considered highly promising with total area of + 185,000 Ha and production amounted to + 105,032 Ton/Ha/year in addition to the potency of area expansion for cacao commodity with total area of + 54.089 Ha

PROJECT / PRODUCT The development of cacao processing factory in West Sulawesi

REASON FOR ADDITIONAL INVESTMENT - Increase the regional income - Increase the farmers’ income - Provide job opportunities for local people

LOCATION The development of cacao processing factory is located at: - Mamuju Regency - Polewali Mandar Regency

LEGAL ASPECT - Law No.15 in 2004 regarding estate crop - Government Regulation No.26 in 2007 regarding the guide for business permit in estate crop - Law No.25 in 2007 regarding the capital investment

ESTIMATED BUDGET OF INVESTMENT The estimated budget for the development of cacao processing factory is Rp. 150 Billion for the land expansion and the factory development

PROPOSED MODE OF INVESTMENT - Direct investment - Partnership between the government and private companies

CONTRIBUTION NEEDED BY PARTNER - Recruitment of local manpower - Technology transfer - Product diversification - Development of supporting facility near the factory

INVESTMENT POLICIES - Generate the conducive business climate - Develop partnership with banking institution - Investment promotion in order to attract more investors SUPPORTING FACILITIES - Sea port - Airport - State roads, province roads and regency roads connecting the production center of cacao

- Telecommunication facility (PT. Telkom) has reached almost all regions of West Sulawesi

PROJECT SCHEDULE The development of cacao processing factory is scheduled to start in 2014

VII. PROVINCE OF SOUTHEAST SULAWESI SERVICES OF PLANTATION AND HORTICULTURE

Institution : Services of Plantation and Horticulture of the Province of Southeast Sulawesi Address : Jl. Pertanian No. 1 Kendari – Southeast Sulawesi - Indonesia Phone / Fax : +62401-3121953 / +62401-3122182 Email : [email protected] Contact Person : Ir. H.A. Chaidir Nurdin, MBA Position : Head of Services of Plantation and Horticulture

INTRODUCTION The business development of palm oil has attracted potential investors in the field of estate crop. The land productivity and prospective market aspects are considered as the catalyst factor of the vast investment of palm oil commodity. Generally, the business development of palm oil in large scale is performed if the businessmen willing to build the processing unit of palm oil. As for the smaller scale, the business development is performed by producing TBS (fresh fruit bunches) to be sold to the broker. The Province of Southeast Sulawesi is widely known as the region with prospective potentials in the business development of palm oil in several regencies among others Kolaka Regency, Konawe Regency, Bombana Regency, North Konawe Regency, and North Buton Regency. These regencies attain the potency of the palm oil development.

PROJECT / PRODUCT In the Province of Southeast Sulawesi, the development of palm oil in general is conducted by large scale company of BUMN (State Owned Companies) and private companies in addition to small part of local people.

REASON FOR ADDITIONAL INVESTMENT The main goal of the business development of palm oil - Increase the manpower - Increase local revenue - Increase the income and welfare of farmers in the area LOCATION The locations of palm oil development in the Province of Southeast Sulawesi are: - Kolaka Regency - Konawe Regency - North Konawe Regency - North Buton Regency - Bombana Regency

LEGAL ASPECT Based on the legal aspect, the palm oil development in the Province of Southeast Sulawesi is implemented according to the technical procedures in the business field of estate crop as stated by the Law No. 18 in 2004 regarding the Estate Crop, and Government Regulation No. 26 in 2007 regarding the permit guidance of estate crop business.

ESTIMATED BUDGET OF INVESTMENT The estimated budget in the palm oil business based on assumption of 6,000 Ha in the first year - Manpower Rp. 9.000.000.000 - Material procurement Rp 12.000.000.000 - Total investment Rp. 21.000.000.000

SCOPE OF PROJECT The scope of project in the palm oil development includes - Palm oil cultivation (estate) - Palm oil processing (factory)

PROPOSED MODE OF INVESTMENT - The development of nucleus estate - The development of smallholders estate - Based of profit sharing system as follows, 40 % for farmers and 60% for companies

CONTRIBUTION NEEDED BY PARTNER - The recruitment of local manpower - Tax payment - Building the supporting facility near the project location - Mutual cooperation between the Government, companies and farmers

INVESTMENT POLICIES - Enhance the information system and investment promotion in order to increase the investment potentials and increase the trading acing for export – import - Increase the institution capacity for the simplification of permit procedures and to ensure the business assurance

SUPPORTING FACILITY Integrated service office

PROJECT SCHEDULE The schedule implementation of palm oil development is adjusted to the condition of companies/investors

VIII. PROVINCE OF EAST NUSA TENGGARA (NTT) SERVICES OF ANIMAL HUSBANDRY

Institution : Services of Animal Husbandry Address : Jl. Veteran Kel. Kelapa Lima Kec. Kelapa Lima Walikota Kupang - Indonesia Phone / Fax : +62380-831821 / +62380-825250 Email : [email protected] Contact Person : Ir. Semuel Rebo Position : Head of Animal Husbandry

INTRODUCTION The prospect of meat cow in NTT has become benefit the promising potentials. Almost one million hectare of grazing field and 1.5 million hectare of agricultural land in dry season have been employed for the development of meat cow. To date (2012), the cattle population reached 826,000 cattle and predicted to further increase in the near future.

PROJECT / PRODUCT The agribusiness development of meat cow in NTT

REASON FOR ADDITIONAL INVESTMENT a. Increase the production of meat cow in NTT b. Accelerate the regional economy and increase the farmers’ income

LOCATION 1. Regency of East Sumba 2. Regency of Central Sumba 3. Regency of Kupang

LEGAL ASPECT - Law No 25 in 2007 regarding the capital investment - Law No 18 in 2009 regarding the Livestock and Cattle Health - President Regulation No. 27 in 2009 regarding the Intergrated Service Office - Decree of Head of BKPM No 12 in 2009 regarding the guide and capital investment application. - Regional Regulation No 7 in 2009 regarding the capital investment

ESTIMATED BUDGET OF INVESTMENT a. Sumba Ongole Breeding: Rp 60 billion b. Bali Cow Breeding: Rp 42 billion c. Development of modern slaughterhouse and meat processing industry Rp 6.5 billion

SCOPE OF PROJECT a. Facility development b. Cattle seeding procurement c. Operational

PROPOSED MODE OF INVESTMENT a. Direct investment from private companies b. Partnership between private companies and provincial government

CONTRIBUTION NEEDED BY PARTNER a. Technology transfer b. Funding c. Market development, and d. Product diversification

INVESTMENT POLICIES a. Enhance the supporting facility for the agribusiness of meat cow b. Generate the conducive business environment c. Cooperation with the banking institutions and other finance institutions in order to prepare the funding source for meat cow business

SUPPORTING FACILITIES – Sea Port – Airport - State and province road that already connected the meat cow areas with airport and sea port. - Communication facility (PT. Telkom) that has reached almost all of regions in NTT - Electricity (PLN)

PROJECT SCHEDULE Start in 2014

IX. PROVINCE OF PAPUA SERVICES OF AGRICULTURE AND FOOD TENACITY

Institution : Services of Agriculture and Food Tenacity Address : Kantor Dinas-Dinas Otonom Gedung B Lt. 3 Jl. Raya Abepura, Kotaraja Jayapura, Papua - Indonesia Phone / Fax : +62967-583158 / +62967-585229 Email : [email protected] Contact Person : Ir. Anna O.S.H. Sawai Position : Head of Services of Agriculture and Food Tenacity

INTRODUCTION The Province of Papua is enriched with promising natural resources with business opportunities in the field of food crops and horticulture, supported by vast areas full of forests, sea filled with varied biota and millions hectare of land suitable for agriculture. The climate in Papua is diverse, south coastline with dry climate influenced by dry wind from Australia, north coastline and mountains with high rainfall of over 4,000 mm per year. As its topography, Papua consists of lowland, swamp, and highland full of tropical forests, meadows and valleys. In the center, there is a series of mountains with three mountains tops Puncak Jayawijaya, Puncak Trikora and Puncak Yamin. There are rivers flowing to the south and north side –Digul River, Warenai River, Wagona River, and Mamberamo River , that functions as the water sources, food resources as well as the connecting facility to other regions. Total area of Papua Province is 317,062 Km2, with administrative borders: Pacific Ocean (north side), West Papua (west side), Arafura Ocean (south side), and New Guinea (east side). The capital of Papua Province is Jayapura consists of 28 Regency and 1 city government, 385 Districts and 3,540 villages. In 2010, the total population reached 2,833,381 people with total area of 317,062 Km2 and population density of 9 people per Km2. The population growth rate amounted to 5.39 %, and the total population in 2013 is predicted to reach 3,316,675 people.

POTENCY AND INVESTMENT OPPORTUNITY Potency of Food Crops

Productivity Production Harvest Investment Commodity Area (ha) Location (ku/ha) (ton) Season Opportunity 12 Regency, mostly Seeding, in Merauke, Nabire, Cultivation of January - Rice 37.149 37,16 138.032 Jayapura,Mimika, paddy, rice field, December kerom, Jayapura City mechanized rice mills 19 Regency, mostly January - Seeding, corn in December cultivation, cattle Corn 3.553 17,99 6.393 Jayapura, nabire, fed, Kep. Yapen, paniai, mechanization(pre kerom, Jayapura City post harvest) 14 Regency, mostly January - Seeding, in: December processing Merauke,jayawijaya, industry, and Soya 3.732 11,14 4.156 jayapura, mechanization Nabire,Yahukimo, Kerom, Jayapura city 17 Regency, mostly January - Seeding, in: December processing Peanut 1.990 10,52 2.094 Merauke, nabire, industry, and kep. Yapen, mechanization

paniaikerom, Jayapura city. 17 Regency, January - Seeding, Mostly in: December processing Green bean 807 10,42 841 Merauke, nabire, industry, and Biak numfor, Kerom, mechanization Jayapura city 19 Regency, mostly January- Cultivation, flour in: December industry and Merauke, Jayawijaya, mechanization jayapura, Kep. Yapen, Biak Cassava 3.020 121,45 36.679 NumforPaniai, mimika, kerom, Waropen, Jayapura city

Disseminated in all of January- Cultivation, flour Papua, mostly in: December industry and merauke, jayawijaya, mechanization nabire, Kep. Yapen, Sweet Biak Numfor, paniai, 33.071 104,35 345.094 potato Puncak jaya, Yahukimo, Tolikara, Kerom, Jayapura city

Potency of fruit and vegetable Vegetable commodity developed in Papua Province includes red onions, garlic, scallion, potato, cabbage, cauliflower, cabbage / mustard greens, carrots, kidney beans, chili, tomato, eggplant, beans, cucumbers, squash, spinach. Fruits commodity are avocado, star fruit, durian, guava, tangerine, grapefruit, mango, jackfruit, pineapple, papaya, banana, rambutan, snake fruit, passion fruit, soursop, breadfruit

Land Potency Papua Province has potential land for agricultural development, especially in the sub sector of Food Crops and Horticulture. Based on the Map of Ecology Agro Zone, Papua Province has land potency of Food Crops and Horticulture with total area of 2,071,198 Ha as follows :

• Wetland agriculture : 1.115.162,85 ha • Dryland agriculture : 243.072,95 ha • Wetland agriculture in highland: 7.300,61 ha • Dryland agriculture with low humidity: 440.337,76 ha • Other purposes: 265.284 ha

LEGAL ASPECT The agricultural development in large scale compels the active support from local or foreign private companies willing to invest their capital and skill in Papua. In accordance with it, the Provincial Government has provided the supporting policy to facilitate the investment in Papua as follows: • Provide easy access of permit for investors • Provide tax deduction, especially for capital products • Availability of skilled local manpower • Cooperation and support from local people in the form of profit sharing • Enhance the security condition for investment

Permit procedures based on Law No 25 in 2007 regarding the capital investment followed by the President Regulation No 27 in 2009 regarding the Integrated Service Center (PTSP).

PTSP in the field of capital investment in Papua Province based on the Governor Regulation No 1 in 2010, coordinated by Indonesia Investment Coordinating Board Official Website (BKPM) of Papua Province, as for the guide of capital investment application is stated in the Regulation of Head of BKPM No. 12 in 2009.

PROPOSED MODE OF INVESTMENT Type of investment 1. Direct investment 2. Joint business

CONTRIBUTION NEEDED BY PARTNER Capital, technology and marketing

SUPPORTING FACILITY

Transportation The length of road in Papua is 15.327.36 km that consist of : State Road (1,794.95 km), Province Road (1,400.63 km), and Regency Road (12,131.78 km). To date, the Government has strived to build the road that will connect all regions in Papua divided in 11 roads. There are 255 small and large airports in Papua Province. Large aircrafts such as Boeing can land in some airports at the Regency Capital. Airlines operation in Papua are among others Garuda Indonesia, Merpati Nusantara, Lion Air and Express Air, while airlines operation in remote areas are Trigana, Airfast Indonesia, MAF, Susy Air. Total number of departing airplane to Jakarta and other big cities is 7 – 8 airplanes per day, it takes about 7 hours to fly from Jakarta to Jayapura. As for marine transportation, PT. PELNI operates passenger ships among others KM Sinabung, KM Labobar, KM Dabonsolo, KM Gunung Dempo, KM dorolonda and KM Nggapulu, in addition to pioneer ship for interisland transportation in Papua.

Electricity, Post and Telecommunication. In Papua, electricity is provided by PLN (State Owned Electric Company) mostly by diesel power plant. For the future, electricity is targeted to be provided by the Steam Power Plant (PLTU). Post offices have reached the remote villages in Papua, the mail delivery from Papua to major cities takes 3 – 5 days. Beside the Post Office, other delivery services are Titipan Kilat, PCP, DHL. Telecommunication facility such as public phone and internet are available in all region of Papua in addition to operating cellular phone available (Indosat, Telkomsel dan XL).

X. PROVINCE OF SOUTH SUMATERA SERVICES OF PLANTATION

Institution : Provincial Government Office of South Sumatera Plantation Address : Jl. Jenderal Sudirman Km. 3,5 No. 563 Palembang, South Sumatera, Indonesia Phone / Fax : +62711-357569, 351451 / +62711-377250 Email : [email protected] Contact Person : Ir. Hj. Sri Murhartati, M.Si. Position : Senior Officer of Processing and Marketing of Plantation Products

INTRODUCTION South Sumatera Province is one of the production centre of agricultural plantation in Indonesia with four major commodities namely palm oil, rubber, coffee and coconut. In the total area of 8.7 million hectares of the Province for all use purposes, these commodities plantation occupies as many as 2,35 million hectares (27,01%). Majorities of the production are exported to world market in the form of raw materials and intermediate products, while only small portions are traded as valuable finished goods. It means that big opportunities are still available for investing and developing such industrial businesses.

INVESTMENT OPPORTUNITIES The Government of South Sumatera and majorities ot its District Government has shift their development plan from focusing on increasing the area of on-farm plantations to developing the processing manufactures or the so called as.agro-industry . The objectives of the program are to increase added value benefited by both investors and local business communities, facilitate and support the implementation of agro-precessing technology in the regions, and to provide job opportunities or markets for local labor which would decrease the rate of unemployment in the province. Several potential investment concerning the four main plantation commodities can be descibed as follows.

A. Palm oil Cluster Industry With the total area of around 8.5 thousand hectares and CPO production of 2,2 million tonnes, South Sumatera Province has planned to develop cluster industry in Tanjung Api-Api Industrial Zone consisting diret and indirect related industries : 1. Refinery Project Investment cost USD 1,337,455 per unit 2. Biodiesel Project Investment cost USD 1,500,000 per unit 3. Biomass and Waste Utilization Product (Fibre, briquette, etc.) Investment cost USD 8,048,500 per unit 4. Oleochemical and other potential projects that could be negotiated.

B. Rubber Industries

South Sumatera has 1.2 million hectares of rubber plantation with the production of 1.05 million tonnes of 100 % dried rubber. The derivatives industry that needed to be developed at the Tanjung Api- Api Indutrial Zone are : 1. Machinery Rubber Goods (ring seal, conveyer belt, huller belt, etc) 2. Health Rubber Goods (glove, contraception products, etc) 3. Automotives spare parts 4. Tyre Vulcanizer 5. Other rubber goods The update investment cost for developing those industries are subject to be analyzed

C. Coffee Industries The coffee plantation areas of South Sumatera are around 275 thousand hectares with the production of 145 thousand tonnes. Two famous specialty coffees come from two production centers namely Semendo and Pagar Alam. The industries that planned to be developed in the Zone and other potential places are are :

1. Package or Sachet coffee-mix 2. Specialty coffee cafe’s 3. Coffee based gum/candy The update investment cost for developing those industries are subject to be analyzed

D. Coconut Indutries Coconut plantations in South Sumatera are mainly located around the East Coast of the Province with the total area of 58.6 thousan hectares and production of 73 thousand tonnes. At the moment the product type sold at the market are dominated by copra (dryed coconut fruit). Therefore soveral industries that would be developed are : 1. Integrated Coconut Industries (coconut milk, desicated coconut, coconut peat, coconut fibre, coconut wood productds, etc). 2. Virgin Coconut Oil (VCO) 3. Coconut Water Product Industries (Nata de coco, isotonic coconut water)

The update investment cost for developing those industries are subject to be analyzed

SUPPORTING ASPECT To support the investment project that planned to developed, the Government of South Sumatera together with Central and District Government have develop transportation infrastructures such as land roads (state, provincial, and district level), railways (to be expanded as Sumatera interconnection), international airports (Sultan Mahmud badaruddin II), and seaport (Boom baru and tanjung Api-Api).

Other facilities would be provided are electricity supply based on various energy sources, clean water supply, postal and telecommunication services, and local, national and international banks. In addition, the Governments of Sumatera and all the district government commit to provide service of quick and easy business permission procedures, conducive business atmosphere, guarantee law certainty and security for the investment, and tax incentives.