INVESTMENT ENVIRONMENT IN CENTRAL

Tokyo, 22nd August 2014

Central Java Board of Investment INDONESIA – The Right Place to Invest

1 Central Java Overview

Indonesia

Central Java • Land Area of 3,25 Ha • Located between 3 (1,7% of Indonesia); major ; East 30,47% wetland, Java, , and 69,53% non wetland • Consist of 29 • Distance from regencies, 6 (Capital ) : 544 Km • Provincial Capital : (45 minute flight) • Distance from Singapore : (2 hour flight)

Why Central Java

• Economic • Population : 34,67 • Minimum Wage in Growth : 5,2 % million people 2014 ranges from (Qw II 2014) (2013) IDR. 910.000 to 1.423.500

• Labor Force : 17,72 • Total GDP : IDR. million people 174.34 trilion (February 2014) (QW II 2014)

• Inflation : 5,03 % (yoy QW II 2014)

Central Java - The right place to invest MACRO ECONOMIC DOMINANT SECTOR FOR GDP (%)

35

30

25

20

15 Percentage

10

5

0 2011 2012 2013 Manufacture 33.3 32.8 32.2 Trade, Hotels and Restaurant 19.1 20.3 20.8 Agriculture 19.7 18.8 19.3 Services 10.6 10.7 10.4

4 INVESTMENT REALIZATION (Rp. trillion)

6

5 4,861

4 2,825 3 2,57 FDI 1,633 2 1,659 DDI 1,358 1,49 0,859 VALUE (Rp. Trillion) (Rp. VALUE 0,987 1 0,793

0 2009 2010 2011 2012 2013

YEAR FDI BY COUNTRY OF ORIGIN

NO COUNTRIES PROJECTS NO COUNTRIES PROJECTS

1. South Korea 69 6. US 16

2. Japan 25 7. Taiwan 16

8. England 13 3. Singapore 21

9. Australia 10 4. 19 10. France 9 5. 16

*Data Source: Central Java Board of Investment (Qw II 2014)

6 INVESTMENT REALIZATION BY LOCATION FDI DDI

No /City Project Labour No Regency/City Project Labour 1 Semarang City 16 6.161 1 City 18 115 2 5 5.513 2 7 58 3 4 1.256 3 Semarang City 5 2.446 4 Regency 3 183 4 3 1.624 5 3 110 5 Semarang Regency 2 550

*Data Source: Central Java Board of Investment (Qw II 2014)

7 Indonesia Central Java

The right place to invest

Amenities

Cultural & Tourism Good Living Leisure & Relax SUPPORTING SYSTEM FOR INVESTMENT

KARIMUN JAWA

TOLL ROAD : NORTH TRACK KANCI - PEJAGAN RAILWAYS

TOLLROAD : SMG - SOLO

SOUTH TRACK RAILWAYS

INTERNATIONAL AIRPORT LOCAL AIRPORT RAILWAY STATION TOURISM DESTINATION H I N D I A O C E A N INTERNATIONAL HARBOUR DOMESTIC HARBOUR STATION TOLL ROAD 9 By Port – Import / Export Port of Tanjung Emas

CHANNEL -10 M

BASIN CONTAINER -10 M TERMINAL

BASIN SAMUDERA -9 M WHARF

NUSANTARA BASIN WHARF -7 M EX PLTU BASIN WHARF -6 M

BASIN -6 M CPO WHARF TANJUNG EMAS HARBOR PLAN PROGRAM 2031 AHMAD YANI AIRPORT DEVELOPMENT PLAN

12 274 Universities, 20 Polytechnic, 1.189 Vocational High Schools, Training Center (Working Training Center, Human Resource Training Center) CENTRAL JAVA AS VOCATIONAL

13 http://bpmd.jatengprov.go.id/

•OSS of Central Java Province •OSS of 35 Regencies/Cities • Task Force • Information Service • Website : http://bpmd.jatengprov.go.id/ BPMD JATENG 2014 14 License Services in Central Java OSS

- LICENSE : 81 ITEMS - RECOMMENDATION : 30 ITEMS

15 GOLF COURSE TOURISM DESTINATION HOTELS 106 Star Hotels • BSB, Candi, Gombel, 1.090 Small Manyaran Indah Hotels Golf Course in Most of them Semarang are located at: • Adi Sumarmo Semarang, Golf Course Solo , • Tidar Golf , Course , Magelang , • Golf . Course Cilacap

BANKING 48 Banks, 10 Foreign Banks (HSBC, DBS, Citibank, Rabo Bank, CIMB, Standard Chartered, UOB, ANZ, Commonwealth, BII Maybank)

16 1. TUGU WIJAYAKUSUMA 2. CANDI INDUSTRIAL ESTATE 3. BUKIT SEMARANG BARU 4. TERBOYO 5. LIK BUGANGAN BARU 6. EPZ. LAMICITRA 7. CILACAP INDUSTRIAL ESTATE

INDUSTRIAL ESTATE DEVELOPMENT PLAN : KENDAL, SEMARANG REGENCY, DEMAK, GROBOGAN, BOYOLALI 17 18 Kendal Industrial Park Conceptual Master plan Phase 1 (860 Hectares) On-site Port

Waste-water Treatment Plant

Proposed Power Plant

Industrial Land Plots

Commercial & Residential • Total Development: 2,700 Hectares Ready-built Factories • Mixed use development: encompassing mainly industrial use, as well as residential & commercial • Water-front land: facing northern coast of Central Java

1. Foreign Investor Association : China, Korea, Taiwan, Japan, Singapore, Malaysia, Australia, Queensland. 2. Business Association: Chamber of Commerce, Asmindo, HIPMI, IWAPI, MIBC 3. Labor Association : SPSI, FSPSI. 4. Association in Agriculture Sector: HKTI, APTRI, GAPPERINDO, AEKI, APTI,APSPI. 5. Association in Tourism Sector : ASITA, PHRI 6. Minimum Wage (2014): IDR. 910,000– IDR. 1,423,500 (JPY. 8,053- 12,597) 20

MINUMUM WAGE RATE, 2014

NO LOCATION (IDR) NO LOCATION (IDR) 1 Semarang City 1.423.500 18 Klaten Reg. 1.026.600

2 Demak Reg. 1.280.000 19 Magelang City 1.037.000

3 Kendal Reg. 1.206.000 20 Magelang Reg. 1.152.000

4 Semarang Reg. 1.208.200 21 Purworejo Reg. 910.000

5 Salatiga city 1.170.000 22 Temanggung Reg. 1.050.000

6 Grobogan Reg. 935.000 23 Reg. 990.000

7 Blora Reg. 1.009.000 24 Reg. 975.000

8 Kudus Reg. 1.150.000 25 Banyumas Reg. 1.000.000

9 Jepara Reg. 1.000.000 26 Cilacap Reg. 950.000 – 1.125.000

10 Pati Reg. 1.013.027 27 Banjarnegara Reg. 920.000

11 Rembang Reg. 985.000 28 Purbalingga Reg. 1.023.000 29 Batang Reg. 1.146.000 12 Boyolali Reg. 1.116.000 30 Pekalongan City 1.165.000 13 Surakarta 1.145.000 31 Pekalongan Reg. 1.145.000 14 Sukoharjo Reg. 1.150.000 32 Pemalang Reg. 1.066.000 15 Sragen Reg. 960.000 33 Tegal City 1.044.000 16 Karanganyar Reg. 1.060.000 34 Tegal Reg. 1.000.000 17 Wonogiri Reg. 954.000 35 Brebes Reg. 1.000.000

BPMD PROV. JATENG 21 INVESTMENT OPPORTUNITIES

Energy and Agriculture Infrastructure Tourism Property Manufacture Mining

Central Java- The Right Place to Invest

22

AGRICULTURE No. Project Investment Value IRR 1 Seaweed Cultivation and Processing in Brebes 22.215.000.000 Regency 2 Karangpucung Integrated Speech Ranch in Cilacap 12.365.713.000 19,80% Regency 3 Cultivation of Seaweed in 5.240.000.000

4 Development of Folk Pine Potency in Pekalongan 3.648.200.000 27 % Regency

23 MANUFACTURE

No. Project Investment Value IRR 1 Construction of Particle Board Processing in 28.408.300.000 21,37% Jepara Regency 2 Construction of Fodder Industry in Demak 11.000.000.000 20,45% Regency 3 Construction of Waste Processing Industry to be 9.016.410.000 25,00% Organic Fertilizer in 4 Fish Based Food Manufacturing in Tegal Municipal 12.014.346.000 44,92% 5 Development of Integrated Coconut Processing 11.000.000.000 31,00% Industry in 6 Construction of Mung Bean Milk Industry in 9.500.000.000 25,15% Demak Regency 7 Packaged Drinking Water Development 5.048.700.000 in 8 Construction of Fodder Industry in 50.000.000.000

24 INFRASTRUCTURE

No. Project Investment Value IRR 1 Technological in Jepara Regency 247.908.016.000 23,05%

2 Solid Waste Final Disposal and Treatment Facility – 200.000.000.000 Putri Cempo Mojosongo – Surakarta 4 Development of Semarang Barat Water Supply 824.000.000.000 (PPP) 5 Development of Tlogomili Water Supply System in 314.492.000.000 Kendal Regency 6 Development of Kalijambe Industrial Zone in 7 Construction of Industrial Estate in Brebes Regency

8 Construction of Industrial Estate in 75.000.000.000

9 Construction of Tengaran Industrial Estate in 266.000.000.000 Semarang Regency

25 ENERGY AND MINING

No. Project Investment Value IRR 1 Construction of Precipitated Calcium 10.491.503.000 31,84% Carbonate (PCC) in 2 Construction of Hydrate Lime Plant in 125.690.000.000 22,91% Rembang Regency 3 Telomoyo Geothermal Power Plant in 3.240.000.000.000 Semarang Regency 4 Mini Hydro Power Plant in Pekalongan 149.970.000.000 Regency

26 TOURISM

No. Project Investment Value IRR 1 Development of Resort in 31.000.000.000 Jepara Regency 2 Development of Morosari Tourism in Demak 20.000.000.000 21,16% Regency 3 Salatiga Education and Recreation Park 68.534.300.000 18,87% 4 Development of Integrated Coffee 7.721.500.000 19,00% Plantation Tourism Area in 5 Development of Colo Tourism Object in 10.927.080.000 19,00% Kudus Regency 6 Construction of Senjoyo Tourism Area in 35.000.000.000 20.67% Semarang Regency 7 Development of Tlatar Tourism Object in 20.000.000.000 22,24% 8 Development of Alam Indah Beach Tourism 67.587.600.000 22, 70% in Tegal Municiplaity 9 Pengembangan Agrowisata Borobudur di Kab. 4.000.000.000 magelang 10 Development of Manganti Beach in Kebumen 136.200.000.000 Regency

27 TOURISM No. Project Investment Value IRR 11 Development of Widarapayung Beach in Cilacap 16.200.000.000 19,00% Regency 12 Development of Sigandu Beach Tourism Object 181.847.000.000 21,20% 13 Development of Widuri Beach in 23.000.000.000 21,10%

14 Development of Kledung Rest area in Temanggung 12.500.000.000 18,00% Regency 15 Development of Pringsurat Rest area in Temanggung 102.000.000.000 Regency 16 Development of Wonosari Zoo Park in Semarang City 100.000.000.000

17 Development of Gunungpati and Mijen Agrotourism 16.167.409.000 in Semarang City 18 Development of Rawa Bendungan Tourism Object in 25.000.000.000 28,44% Cilacap Regency 19 Construction of Rest Area in Kendal Regency 15.000.000.000

28 PROPERTY No. Project Investment Value IRR 1 Construction of Fruit, Fancy fish and Souvenir 61.674.000.000 18,80% Market in Pekalongan Municipality 2 Construction of Textile and Electronic Trading 89.946.750.000 28,00% Service Centre in Kartasura, 3 Construction of Dieng Convention Hotel in 12.099.585.000 24,00% 4 Construction of Sky Tower Solo Technopark in 137.262.000.000 Surakarta 5 Revitalization of Johar Market in Semarang 300.000.000.000 Municipality

29 Central Java The right place to invest THANK YOU