Republic of The Coordinating Ministry for Economic Affairs The National Council for Special Economic Zone

INDONESIA SPECIAL ECONOMIC ZONES June 2020 Indonesia SEZ 2 15 SEZs and its Primary Activities Investment Opportunity 3

Investment Opportunities Investment Opportunities Investment Opportunities as Tenant as Developer as Infrastructure Provider

Invest to provide SEZ Infrastructures: § Invest in SEZ Business Sectors § Joint Venture with the SEZ § On-site infrastructure (power plant, (Industry: palm oil, rubber, Developer in operating and water treatment plant, waste water petrochemical, agro, fishery, managing SEZ treatment plant, etc) manufacturing, logistic, tourism, etc) § Regional infrastructure or supporting infrastructure in the § Joint Venture with the SEZ surrounding SEZ (road, port, Developer as an Investor airport, railway, electricity, water supply, gas, etc) Fiscal Incentives 4

NO SUBJECT INCENTIVES/FACILITIES • Tax Holiday 100% for Primary Activities. Duration of the facility depending on value of investment • Tax Allowance for other than Primary Activities and for Primary Activities that is not eligible to get Tax Holiday facility, with detail: 1. Reduction in net income of 30% of the amount invested, prorated at 5% for six years, 1. CORPORATE INCOME TAX (PPh) 2. Losses carried forward that last longer but not more than 10 years 3. Accelerated depreciation and amortization, 4. Dividends tax 10% or lower for treaty countries. VAT is not collected for the entry of certain Taxable Goods and certain Taxable Services from Other Places within the Customs Area 2. VALUE ADDED TAX (PPN) (TLDDP). • Exemption from import duty including anti-dumping import duty, Countervailing Dutyfies, safeguard duty, Retaliation EXEMPTION FROM IMPORT DUTY AND • Not Collected Import Tax including VAT, Sales Tax on Luxurious Goods, and/or corporate income tax article 22 3. NOT COLLECTED IMPORT TAX • Facilities are granted for the Import of: (PDRI/Pajak Dalam Rangka Impor) 1.Capital Goods by Business Entity / Developer for SEZ Development 2.Capital Goods and Raw Material for Tenant. DEFERRED IMPORT • Deferred import duties for imported raw materials that are used for production, capital goods and packaging 4. DUTIES • A tariff of 0% import duty is applied for finished goods which have 40% of local content (TKDN) Exempt from excise for raw materials or auxiliary materials that are used to produced finished goods which are not 5. EXCISE excisable goods 6. LOCAL TAX • Reduction of local tax and / or local retribution at a minimum of 50% and a maximum of 100% • Prohibited items: prohibited for export / import 7. GOODS TRAFFIC • Restricted items: Importing goods to SEZ have not been subject to restrictions

SPECIAL FACILITIES FOR • Stores that are located within Tourism SEZs can participate in the VAT refund scheme for foreign passport holders 8. TOURISM SEZs • Exemption for VAT and Sales Tax on Luxury Goods can be granted Non-Fiscal Incentives 5

NO. SUBJECT Incentives and Facilities for Investment in SEZs 1. NO NEGATIVE LIST

2. IMPORT LIMITATION IS NOT APPLIED The government widely gives support with fiscal and non-fiscal incentives such as tax h 3. EASE OF DOING BUSINESS FOR PERMIT & LICENSING oliday, tax allowance, ease of custom 4 FOREIGN PROPERTY OWNERSHIP IN TOURISM SEZ services, immigration, labor, land and property access. 5 SPECIAL REGULATION FOR LABOUR AND EMPLOYMENT Through Online Single Submission 6 SIMPLE IMMIGRATION FORMALITIES investors can start their business almost immediately in SEZs. As required the 7 EASINESS FOR LAND TITLING PROCEDURES government will support business in SEZs 8 INTEGRATED INFRASTRUCTURE SUPPORT FROM GOVERNMENT with necessary infrastructure.

9 ONE STOP SERVICE BY ADMINISTRATOR INDUSTRIAL SEZ

• Kendal • Galang Batang • Sei Mangkei • Palu • Bitung • Sorong • Arun Lhokseumawe • MBTK • Tanjung Api-Api KENDAL 7

PROFILE MASTERPLAN INFRASTRUCTURE

23 km from Ahmad Yani LEGAL BASIS Airport Government Regulation (PP) Number 85 of 2019 Lokasi KEK Kendal 27 km from Tanjung Emas DEVELOPER Seaport PT Kawasan Industri Kendal

AREA Passed by Semarang – Pejagan Toll Road and 1,000 Ha Pantura Road

Toll road Toll road Railway Gas POPULATION plan pipeline Kendal : 952,966 Proposed Railway Proposed People gas pipeline railway Land Availability BUSINESS OPPORTUNITY 568 Ha

Textile and Clothing Automotive Industry Contact Person Ms. Juliani +62 822-6605-0051

Furniture Electronic

Food and Logistic Beverage

Kendal Regency, Central Java Province GALANG BATANG 8

PROFILE MASTERPLAN INFRASTRUCTURE

LEGAL BASIS 20 km from Raja Haji Fisabilillah Airport Government Regulation (PP) Number 42 of 2017 Officially Operated December 8th 2018 Seaport is integrated into the Zone DEVELOPER PT Bintan Alumina Indonesia 2.6 km hot asphalt access road and is in the process to AREA complete 8 km of roads in 2,333. 6 Ha the area

POPULATION - Existing : 0.8 MW Bintan: 154.584 People (By SOE) - Future Capacity : a. 3.4 MW (By SOE) b. 6 x 25 MW (By Developer)

BUSINESS OPPORTUNITY - Existing : 60 liter/second - Future Capacity : 600 liter/second Bauxite Energy Industry Industry Land Availability Alumina Logistic 1.082,1 Ha Industry & Export

Contact Person Mr. Zurkani, +62 812 7068 796 Bintan Regency, Riau islands Province SEI MANGKEI 9

PROFILE MASTERPLAN INFRASTRUCTURE

LEGAL BASIS Government Regulation ±115 km from (PP) Number 29 of 2012 Kualanamu Airport Officially Operated: January 27, 2015 ±50 km from DEVELOPER Kuala Tanjung Seaport PT Perkebunan Nusantara III

AREA 1,933.8 Ha Road inside zone is fully constructed POPULATION Simalungun City: 864,786 People - Existing : 60 MW - Future Capacity : 61,6 MW (2019) BUSINESS OPPORTUNITY

Palm Oil Existing : 69 liter/second Industry

Rubber Industry

Land Availability Various 1.142,88 Ha Industry

Simalungun Regency, North Sumatra Province Contact Person Mr. Widoyoko +62 812-6227-061 PALU 10

PROFILE MASTERPLAN INFRASTRUCTURE

Mutiara SIS Al LEGAL BASIS 26 km from Jufri Airport Government Regulation (PP) Number 31 of 2014 Officially Operated : September 27, 2017 1 km from Pantoloan Seaport DEVELOPER PT Bangun Palu Sulawesi Tengah (BPST) Road inside zone is fully constructed AREA 1,500 Ha - Existing : 20 MW POPULATION - Future Capacity: Steam Palu City: 367.342 electricity power plant 2 x People 50 MW (2020)

- Existing : 15 liter/second BUSINESS OPPORTUNITY - Future Capacity : 424 liters/second Manufacturing Industrial Industry Estate Land Availability Industrial Water 900 Ha Basic Infrastructure Supply System & & Power Plant Water Treatment Plant Contact Person Jem Pangeran, +62 822-9345-9317 Logistic Supply Deep Port Chain Business Palu City, Sulawesi Tengah Province BITUNG 11

PROFILE MASTERPLAN INFRASTRUCTURE

LEGAL BASIS 36 km from Sam Ratulangi Government Airport Regulation (PP) Number 32 of 2014 Operational : 7 km from Perikanan April 1 2019 Samudera Seaport DEVELOPER PT Membangun Sulut Hebat (MSH) 415 m road inside zone is fully constructed AREA Phase 534 Ha I POPULATION - Bitung City: Existing : 30 MW 212,409 People - Manado CIty: 430,133 People Existing : 15 liter/second

BUSINESS OPPORTUNITY Land Availability Coconut Fisheries 396,28 Ha Industry Industry

Contact Person Pharmaceutical Logistic Industry Lilis +6282293897644 Bitung City, North Sulawesi Province SORONG 12

PROFILE MASTERPLAN INFRASTRUCTURE

LEGAL BASIS Government Regulation (PP) 30 km from Domine Eduard Number 33 of 2016 Osok Airport Operational : October 11 2019 - Arar Seaport is integrated into the Zone and under DEVELOPER construction PT Malamoi Olom Wobok - 35 km from Port of (MOW) Sorong

AREA Road inside zone is fully 523,7 Ha constructed

POPULATION Sorong: 82,784 People - Existing : 9 MW - Future Capacity : 50 BUSINESS OPPORTUNITY MW

Shipyard Industry - Existing : 15 liter/second Land Availability - Future Capacity : 424 391,3 Ha liter/second Agricultural & Fisheries Industry Contact Person Logistic & Mr. Gabriel Simanjuntak, +62 813-8851-2234 Export

Sorong Regency, West Papua Province ARUN LHOKSEUMAWE 13

PROFILE MASTERPLAN INFRASTRUCTURE

LEGAL BASIS 13 km from Malikussaleh Airport Government Regulation (PP) Number 5 of 2017 Officially Operated December 14th 2018 Krueng Geukueh Seaport is integrated into the North Zone Aceh Lhokseumawe DEVELOPER City PT Patriot Nusantara Aceh (PATNA) Road is fully constructed with several sector need AREA minor maintenance 2,622.48 Ha - POPULATION Existing : 219 MW - Future Capacity : 459 North Aceh: MW (2021) 593,492 People

BUSINESS OPPORTUNITY Existing : 14.46 liter/second

Oil & Gas Agro Industry Industry

Land Availability Petrochemical Logistics Industry 896,32 Ha

Contact Person Paper Industry Mr. Rustam Efendi, +62 811 673 250 North Aceh Regency, Lhokseumawe City, Aceh Province MALOY BATUTA TRANS 14

PROFILE MASTERPLAN INFRASTRUCTURE

LEGAL BASIS - 118 km from Tanjung Bara Government Regulation (PP) Airport Number 85 of 2014 - 280 km from APT Pranoto Operational : Airport April 1 2019 - 406 km from Sultan Aji Muhammad Sulaiman DEVELOPER Sepinggan Airport PT Maloy Batuta Trans Kalimantan Multipurpose Maloy Seaport inside in SEZ is AREA under construction 557.34 Ha (operating in 2019) POPULATION East Kutai: 833,625 People 11.44 km access road BUSINESS OPPORTUNITY

Palm Oil Future Capacity : 200 Industry liter/second (November 2018) Land Availability Wood 382 Ha Industry

Contact Person Logistic & Mr. Agus Dwitarto, +62 812 20580597 Export

East Kutai Regency, Province TANJUNG API-API 15

PROFILE MASTERPLAN INFRASTRUCTURE

LEGAL BASIS 70 km from Sultan Mahmud Badarrudin II Airport Government Regulation (PP) Number 51 of 2014 Operational : 2019 2,5 km from Tanjung Api- Api Seaport DEVELOPER PT Sriwijaya Mandiri Sumsel (SMS) 65 km from Palembang – Tanjung Api-Api National AREA Road 2,030 Ha

POPULATION - Existing : 2 x 60 MW - Banyuasin: 833,625 Future Capacity : 2 x 300 People MW

Future Capacity : 1,500,000 BUSINESS OPPORTUNITY liter/second Land Availability Palm Oil Petrochemical 67 Ha Industry Industry

Contact Person Rubber Logistic Industry Mr. Sarimuda, +62 812 19872398

Regency of Banyuasin II, Banyuasin Regency, South Sumatera Province TOURISM SEZ

• Mandalika • Tanjung Kelayang • Tanjung Lesung • Singhasari • Likupang • Morotai MANDALIKA 17

PROFILE MASTERPLAN INFRASTRUCTURE

LEGAL BASIS 23 km from Lombok International Airport Government Regulation (PP) Number 52 of 2014 Operational: October 46 km from Lembar Seaport 20, 2017

DEVELOPER PT ITDC 11 km road inside zone is fully constructed AREA 1,035.67 Ha BUSINESS OPPORTUNITY Existing: 30 MVAm Accommodation Infrastructure POPULATION Central Lombok: 922,088 People Relaxation & Adventure Entertainment Tourism Existing : 34 liter/second

F&B Art & Education

Land Availability 364,3 Ha

Contact Person Emma +62 811-9121-611 Regency of Central Lombok, West Nusa Tenggara Province TANJUNG KELAYANG 18

PROFILE MASTERPLAN INFRASTRUCTURE 37 km from HAS LEGAL BASIS Hanandjoeddin Airport Government Regulation (PP) Number 6 of 2016 Operational : March 14, 2019 27 km from Tanjung Pandan Seaport DEVELOPER Belitung Maritime Consortium 3.5 km road inside zone is available AREA 324.4 Ha - Existing : 67,000 kVA POPULATION - Future capacity: 25 MVA Belitung: 161,706 BUSINESS OPPORTUNITY People Accommodation Infrastructure Existing : 100 liter/second

Relaxation & Adventure Entertainment Tourism

F&B Art & Education Land Availability 295 Ha

Contact Person Regency of Belitung, Bangka Belitung Islands Province Mr. Adiel, +62 818-924-318 TANJUNG LESUNG 19

PROFILE MASTERPLAN INFRASTRUCTURE

LEGAL BASIS 180 km from Soekarno- Government Regulation (PP) Hatta International Airport Number 26 of 2012 Officially Operated: February 23, 2015 192 km from Tanjung Priok Seaport DEVELOPER PT Banten West Java Tourism Development (BWJ) - 5.11 km Row 50 is built - 1.7 km Row 35 A is built AREA - 1,92 km Row 35 B is built 1,500 Ha - Existing : 20 KV and 1 POPULATION substation - Future Capacity : 70 Pandeglang: 1,205,208 KV (2019) People BUSINESS OPPORTUNITY

Accommodation Infrastructure Existing : 4.7 liter/second

Relaxation & Adventure Entertainment Tourism Land Availability 1.068, 45 Ha

F&B Art & Education Contact Person Mr. Saprudin, +62 812 89992236 Regency of Pandeglang, Banten Province SINGHASARI 20

PROFILE MASTERPLAN INFRASTRUCTURE

LEGAL BASIS 90 km from Juanda International Airport Government Regulation (PP) Number 68 of 2019

DEVELOPER 110 km from Tanjung Perak Seaport Consortium • PT Pengembangan Pariwisata Indonesia • PT Intelegensia 10 km from Malang Train Grahatama Station • PT Cakrawala Mandala Nusantara AREA 1.101, 76 Ha Land Availability 307,2 Ha POPULATION Malang: 188,161 People Contact Person Mr. David Santoso, +62 813 33342292 BUSINESS OPPORTUNITY Entertainment Accomodation Creative Industry Retirement Homes

Tourism

Digital Technology

Regency of Malang, East Java Province LIKUPANG 21

PROFILE MASTERPLAN INFRASTRUCTURE

LEGAL BASIS 41 km from Sam Ratulangi Internasional Airport Government Regulation (PP) Number 84 of 2019

DEVELOPER PT Minahasa Permai Resort Development (MPRD)

AREA 197.4 Ha

Resort 85.16 Ha Commercial 1.06 Ha (Premium Resorts, Mid Range Resorts) (Shops and restaurants, boutique shops, Ampitheatres, POPULATION and Offices) Green Open Space 50,08 Utility 26,71 Ha North Minahasa: Ha 338,364 People Entertainment and General Services 8.70 Ha (Village tourism, entertainment, clinics / National Road 8,92 Ha (5,26 Km) hospitals, and other public facilities)

Lake 7.42 Ha Residential 9.3 Ha Land Availability BUSINESS OPPORTUNITY 396,28 Ha

Tourism Contact Person [email protected] Regency of North Minahasa, North Sulawesi Province MOROTAI 22

PROFILE MASTERPLAN INFRASTRUCTURE

LEGAL BASIS 23 km from Lombok International Airport Government Regulation (PP) Number 32 of 2014 Operational : April 1 2019 46 km from Lembar Seaport

DEVELOPER PT Jababeka Morotai 11 km road inside zone is fully constructed AREA 1.101, 76 Ha Existing: 30 MVAm POPULATION Morotai Island: 62,412 People

BUSINESS OPPORTUNITY Existing : 34 liter/second

Accommodation Infrastructure Land Availability 771,2 Ha Relaxation & Fisheries Entertainment Contact Person Mr. Windy, +62 812 94289856 F&B Regency of Morotai Island, North Maluku Province TANJUNG KELAYANG TANJUNG KELAYANG SEZ 24

Location Province : Bangka Belitung Regency : Belitung

Development Area Total Area : 324.4 Ha Total Land Owned : 324.4 Ha (100% land acquired)

Accessibility HAS Hanandjoeddin International Airport, 50 Minutes from Singapore and 45 Minutes from Jakarta. 9 Flight per day from Jakarta-Belitung.

SEZ Tanjung Kelayang Progress Obtained SEZ status in March 2016 Ground Breaking for 1st project September 2016 First Investor coming in January 2017 Nominated as Geopark to UNESCO by 2017 1st Hotel will be operated in August 2020 Infrastructure 25

International Airport Road Electricity Sea Port •2800 m runaway and •National Road along the •71 MW Installed capacity Tanjung Batu and Tanjung expanding way from Airport to Tanjung combination of Diesel, Coal Pandan Port available for sea •Capable to land Boeing 737- Pandan, capital of Belitung Fired and biomass Power transportation port 800NG •Province Road connecting Plant •International Airport by from Belitung to Belitung •Peak Usage for current usage March 2017 Timur Regency is 32 MW •Good quality of Road all •39 MW Available for Future over Belitung development Masterplan 26

Land Use Zone Hotel Residential Multi-Residential Age Care Residential Retail Administration & Services Waste Water Treatment & Solar Panel Marina Support Marina Investment Opportunity 27

Project Investment ( in Mio USD) • Hotel Project Hotel 360 4 Unit 5 Star Hotel Residential 210 4 Unit 4 Star Hotel Retirement 30 4 Unit 3 Star Hotel Retail 90 • Residential Area Utilities 15 70 Ha Residential Area divided into 7 Block Power Plant 15 Marina 60 • Retirement Village 10 Ha Retirement Village including wellness facility Museum 10 Infrastructure 174 • Retail Area Total 964 3 block of retail area total 30 Ha

• Water Treatment & Supply Investment Scheme Surface Water Management Partnership at individual Project level Partnership at holding company level • Power Plant Project 10 MWp Solar Power Plant 12 Mio USD Contact: [email protected] • Marina

• Shipwreck Underwater Museum Listrik

Electricity

Water Treatment Plant

Road Administrator Office Gate Drainage Plaza

BUPP

KEK Adm Office UMKM Gate JALAN (EXISTING & NEW ROAD) 4 3 2 1

Existing Road

New Road

Realistic 2018: Existing Road : 3,1 Km New Road : 2,9 Km TOTAL 6 Km Road Concept Existing Road Electricity 64 Kva of electricity used for construction and for the Administrator Office Drainage Concept Exisiting Drainage Administrator Ready to Operate Attraction 37 THANK YOU

Republic of Indonesia The National Council Secretariat for Special Economic Zone Indonesia_SEZ Mr 21 Building, 12th floor Jalan Menteng Raya No. 21, Central Jakarta, Indonesia indonesia_sez Phone/Fax : +6221-34832655/58

Email: [email protected] Indonesia SEZ Web : http://kek.go.id