Investment Book

investment book

1st Quarter - June 2020 Edition A definitive guide on macroeconomic condition, data & information, key contacts, and potential investment projects in North Sumatra

Strengthen Synergy for Sustainable Growth

1 About Us Our Mission

Providing Investors with the necessary data and information PROVIDING Providing the necessary data and information North Sumatra Invest (NSI) is a dedicated task force comprised of all North Sumatra’s policy Promoting the rightPROMOTING investment makers, including the Government of North Promotingopportunities the right and investment projects opportunities and projects Sumatra and Bank Indonesia, with full cooperation of Kamar Dagang dan Industri Indonesia (KADIN). CONNECTING Connecting investors with the Connecting investors with the right business contacts right business contacts Our mission is to attract Foreign Direct Investment Connecting investors with the right business contacts (FDI) in North Sumatra to foster economic growth.

2 01 Indonesia’s Strong Performance

02 Why North Sumatra?

03 Investment Projects & Opportunities

04 Tourism Site

05 Licensing in Indonesia

06 Key Contacts

3 About Page About Page About Us and Our Mission 2 Vigorous Economic Growth 18 Content 3 Growing Investment Realization 19 Table of Content 4 Infrastructure Acceleration 20 1. Indonesia’s Strong Performance 6 3. Investment Project and Opportunities 21 Conductive Environment Underpinning Strong Growth 7 Special Economic Zone Sei Mangkei 22 Fundamentals Indonesia’s GDP Growth Momentum Moderated 8 Kuala Tanjung Industrial Estate 29 Ease of Doing Business 9 Toba Caldera Resort 34 Investment Grade Approved 10 Siantar – Parapat Railway 50 External Balance Supported by Adequate Reserves 11 Mixed Use Rental Apartments in Sei Mangkei SEZ 52 Exchange Rate and Inflation Rate 12 Sports Center 57 Simultaneous Growth All Over Regions 13 4. Tourism Site 62 Economic Policies Taken in Tackling COVID-19 Pandemic 14 Priorities Tourism Sites 63 Covid-19 Risk Mitigation 15 Lake Toba 64 2. Why North Sumatra? 16 North Sumatra Profile 17 Tangkahan 65

4 About Page About Page

Bukit Lawang 66 5. Licensing in Indonesia 79

Berastagi 67 FDI Procedures 80

Mursala Island 68 3 Hours Investment Licensing Service 81

Poncan Island 69 Investment Incentives 82

Muara Opu Beach 70 6. Key Contacts 83

Silahi Sabungan 71 Our Team 84

Maimoon Palace 72

Simalem Resort Garden 73

Tourists are Very Welcome 74

Small Medium Enterprise 75

Woven Fabric 76

Coffee 77

Others 78

5 1 Indonesia’s Strong Performance

Indonesia is one of the fastest growing economy in the world. Find out our performance! Tax base to be 4th Most Populous Budget reform as a Largest Economy in broadened from one country in the World; part of larger South East Asia reduce dependency 64% in productive age economic reform initiative on commodities

Large and Stable Fuel subsidies Rising Middle Class Consistent significantly reduced Manageable Economy Prudent debt Inflation Rate and Affluent Budget Reform and spending redirected management Customers to more productive allocation

Reform-Oriented Administration From commodity-based to manufacturing Three main sources of financing for and service sectors via infrastructure investment needs: State and regional budget, State Owned Enterprises andPPP development New Economic High Structure Infrastructure Continuing from 2015 policy, infrastructure From consumption-led to investment-led Investments will be higher than fuel subsidy growth via a stronger manufacturing sector and more investment initiatives Infrastructure spending focused on basic infrastructure projects Policies to maintain purchasing power to stimulate domestic economy in the midst of Fiscal and non-fiscal incentives to attract weakening macroeconomic conditions infrastructure investment and promote PPP

7 • Despite global economic moderation, resilient national economic growth has been maintained in Indonesia. For the year 2019, solid economic growth was recorded at 5.02%, albeit slightly declined from 5.17% in 2018. The main driver of economic growth in 2019 was domestic demand, as export performance declined. In the fourth quarter of 2019, economic growth stood at 4.97% (yoy), down slightly from 5.18% (yoy) in the previous period. • Furthermore, the general election held in 2019 edged up consumption by non-profit institutions serving households (NPISH) to 10.62% from 9.10% in 2018. Domestic demand was also buoyed by strong investment performance, building investment in particular which grew 5.37% in the reporting period, similar to the 5.41% recorded in 2018. Services in the tertiary sector were the main locomotive of economic growth in 2019, led by communications and information, financial services and insurance as well as other services. • While in 2020 for quarter 1 Indonesia’s economic growth was 2.97% (yoy). It was getting slightly declined from 2019 5.07% at the same period. It occurred because of COVID-19 to overcome this pandemic issue.

Institutions 2020 GDP growth (%YoY) 2020 Budget 5.3 Bank Indonesia around 2,3 IMF (WEO April 2020) 0.5 World Bank (GEP April2020) 2.1 ADB (ADO April 2020) 2.5 ConsensusForecast (April 2020) 2.1 8 Our concern to Business Business has never been easier in Indonesia. In recent years, our government has put significant effort to boost business climate and we’re happy to tell you that we could maintain our performance since 2017. Our efforts to trim the licensing period gave an impact to the business player. And we plan to make it even easier. There is no better time to invest in Indonesia.

9 BBB / Stable

January 2020, Rating Affirmed at BBB/Stable Indonesia's rating balances a favourable medium-term growth outlook and a small government debt burden compared with 'BBB’ category peers against challenges that include a strong dependence on external financing, low government revenue, and lagging structural indicators such as governance indicators and GDP per capita.

BBB / Negative

April 2020, Rating Affirmed at BBB, Outlook Revised from Stable to Negative “The affirmation reflects Indonesia’s stable institutional settings, strong growth prospects, and historically prudent fiscal policy settings. The negative outlook reflects S&P expectation that Indonesia faces additional fiscal and external risks related to the COVID-19 pandemic in the next 24 months .”

Baa2 / Stable Feb 2020, Rating Affirmed at Baa2/Stable “The affirmation of the ratings is underpinned by a number of credit strengths – including Indonesia’s robust and stable growth rates and a low government debt burden, preserved by consistent fiscal discipline and emphasis on macroeconomic stability – as well as persistent creditchallenges.”

BBB+ / Stable BBB+ / Stable March 2020, Rating Upgraded at BBB+/Stable January 2020, Rating Upgraded at BBB+/Stable “Indonesia's President Joko Widodo is firmly implementing policies to strengthen economic growth “The ratings mainly reflect the country’s solid domestic consumption-led economic growth, restrained potential, on the back of a political foundation solidified in his second term. budget deficit and public debt, and resilience to external shocks supported by flexible exchange rate Supported by such policy efforts, the economy is expected to continue stable growth over the medium and credible monetary policies and accumulation of foreign exchange reserves. Since its previous rating term. Keeping fiscal deficits in check, the government maintains its debt ratio at a low level. Foreign review, JCR has been paying particular attention to the continuing reform initiatives pushed by the reserves are ample relative to short-term external debts. The country's economic resilience to external administration of President Joko Widodo and the content and progress of the economic policy taken by shocks is retained under a policy stance that emphasizes macroeconomic stability and fiscal discipline.” his second administration which took office in October 2019. Among the reform agenda, infrastructure development has continued to progress faster than JCR had expected.”. 10 Current Account Deficit | USD/IDR Balance of Payment | USDbn US$bn

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2013 2014 2015 2016 2017 2018 2019* 2020**

Current Account Capital & Financial Account

Trade Balance | USDbn FX Reserves | USDbn

11 •

•

12 5.23 5.39 5.67 3.73 4.57 4.63 4.5 4.61 2.49 3.25

I II III IV I I II III IV I 2019 2020 2019 2020

5.65 5.59 5.51 5.34 3.42 5.34 5.52 4.59 4.77

I II III IV I 0.94 2019 2020 I II III IV I 2019 2020

13 • Government’s policy related to COVID-19 pandemic comprises of four safety nets. • Latest Update 22/4: Expansion of business classificationcoverage for Fiscal Incentives. • The economic safety net and national economic recovery measures, along with other economic stimulus that focus on maintaining purchasing power and ensuring business continuity (minimizing layoffs), will minimize the spill-over effect of the COVID-19 pandemic hence limiting the impact to the banking system.

Economic SafetyNet National EconomicRecovery Health SafetyNet Social SafetyNet Measures Budget Support: Rp75 T Budget Support: Rp110 T Budget Support: Rp70,1 T Budget Support: Rp150 T

• BPJS contributionsubsidies • Program KeluargaHarapan • Fiscal Incentives (Elimination • Government Regulation in Lieuof of Income Taxes & Imported • Medical Personnel Incentives • Staple Products Law No. 1 Tahun 2020 Goods Taxes, Corporate Tax • Pre-employment Card • Local Currency Settlement (LCS) • Death Compensationfor Reduction and the Health Workers • Labor Intensive Program Acceleration of VAT Restitution • Recovery Bond • Purchase of Medical • Electricity tariff discountfor • Non-Fiscal Incentives Equipment (PPE, ventilators, 450 VA and 900VA (Simplification and masks, etc.) • Housing Incentives for MBR Acceleration of theExim Process) • Referral Hospitals • Religious HolidayBonus • Relaxation of Community • Price Stabilization/Market Credit (KUR) Rp405,1 trillion Operations • Bank Indonesia Policy (USD24.6 billion) • Ministry/Agency Budget • OJK and Capital Market Total BudgetAllocation Adjustment Policies Source: Coordinating Ministry for Economic Affairs 14 15 2 Why North Sumatra?

North Sumatra isn’t only a great market for your products, but also a perfect place for production base. Governor : Edy Rahmayadi Vice Governor : Musa Rajekshah Capital City : Medan Regencies/Cities : 25 Regencies and 8 Cities GRDP SHARE HDI 2019 %share to national 2019 Geographic Advantages 5% 71.74% Top 6 biggest province Categorized as high Located in the vast and prosperous area of Sumatra by economic comparison island, with total area of 73.000 km². POPULATION INFLATION It is strategically positioned along the Malacca Strait 2019 June 2020 and has long been a major trade center in west 14.56m Indonesia. The 4th most populous 0.43% Province in Indonesia %mtm A MILLENIAL PROVINCE EMPLOYMENT RATE EXPORT Almost half of North Sumatra population is under 25 years old. 2019 April 2020

LOW MINIMUM WAGE LEVEL 70.19% US$597,47m Adequate human resources At $177 / month, our wage level is cheaper than several countries mtm for supporting new business in ASEAN. 17 DEMAND SIDE • North Sumatera economic growth was recorded at 4,65% (yoy) in the 1st quarter of 2020. • Still grow higher and stronger than Indonesia, which was recorded at 2,97% (yoy) on the same period. Household Government Investment Export Import Consumption (54%)* Consumption (6%)* (31%)* (31%)* (24%)* • This performance shows resilience of 4.07 4.73 -12.94 -12.27 8.54 7.98 0.76 -5.95 -1.44 -8.92 North Sumatera in this Pandemic Era. Q4’19 Q1’20 Q4’19 Q1’20 Q4’19 Q1’20 Q4’19 Q1’20 Q4’19 Q1’20

Economic Growth of All Provinces in Sumatra North Sumatra’s Economic Growth Summary

Sumut (23,97%) Kep. Riau (7,61%) SUPPLY SIDE 4,65 2,06 Aceh (4,77%) Riau (22,08%) 3,17 2,24 Jambi (6,21%) Sumbar (7,16%) 1,65 3,92 Bangka Belitung (2,15%) 1,35 Agriculture (21%)* Industry (19%)* Construction (14%)* Trade (19%)* Transport. & Storage Services Bengkulu (2,14%) (24%)* 3,82 Sumsel (13,45%) 4,98 4.44 5.99 0.80 0.30 7.07 4.13 7.66 6.07 6.47 4.76 Lampung (10,46%) SUMATRA’s Q4’19 Q1’20 Q4’19 Q1’20 Q4’19 Q1’20 Q4’19 Q1’20 Q4’19 Q1’20 1,73 3,25 : Higher than Sumatra's growth : Lower than Sumatra's growth 18 2019 (Q1) 2020 (Q1) INVESTMENT REALIZATION BY LOCATION AND SECTOR ( JAN – MAR 2020) FDI & DDI : FDI & DDI : TOP 5 SECTORS BASED ON FDI VALUE TOP 5 LOCATIONS BASED ON FDI VALUE Rp 5,55 T Rp 9,18 T 4,992,212.45 4,984,910.21 Tapanuli Selatan IDR Million DEVELOPMENT OF INVESTMENT Medan 130,320.01

REALIZATION Labuhan Batu 54,277.92

DDI FDI TOTAL Deli Serdang 15,225.12 10,000 9,185 IDR Million 90,090.73 35,855.28 42,686.64 28,704.96 9,000 Simalungun 12,647.52 Electricity, Gas Food Services Plantation Housing 8,000 7,304 and Water Industries 6,661 7,000 5,923 5,553 5,608 TOP 5 SECTORS BASED ON DDI VALUE 6,000 5,459 5,219 TOP 5 LOCATIONS BASED ON DDI VALUE 5,000 4,356 4,325 3,966 Mining, 2,490,390.80 . TRILLION . 4,000 301,599.50 Medan RP Plantation, 3,000 301,823.10 IDR Million 1,598 1,696 Batubara 590,249.30 2,000 1,197 1,202 1,000 Metal Tapanuli Selatan 370,328.70 Industries, 0 387,471.80 Housing, Deli Serdang 197,440.20 Q1 Q2 Q3 Q4 Q1 2,088,557.10 IDR Million Services, 2019 2020 Langkat 61,438.80 563,836.00

Source : DPMPPTSP of North Sumatra Province 19 Existing and Planned Toll Roads in North Sumatra Trans Sumatra Highway Ports Port of Belawan - Medan A grand scale project to bring Port of Kuala Tanjung – Batu Bara connectivity among provinces in Port of Tanjung Balai Asahan – Tanjung Balai Port of Pangkalan Susu - Langkat Sumatra island. Everything will be Port of Sibolga - Sibolga more connected, not less. Port of Gunung Sitoli – Gunung Sitoli (Nias Island)

Airports Lasondre Airport – Batu Islands Binaka Airport – Gunung Sitoli

Kualanamu International Airport – Deli Serdang

Aek Godang Airport – North Padang Lawas

Ferdinand Lumban Tobing Airport – Central Tapanuli

Sibisa Airport – Toba Samosir

Silangit International Airport – Siborong-Borong

Train Sribilah ( Medan ↔ Rantau Prapat ) Putri Deli ( Medan ↔ Tanjung Balai ) Siantar Ekspres ( Medan ↔ Pematang Siantar ) Airport Railink ( Medan ↔ Kualanamu ) Sri Lelawangsa ( Medan ↔ Binjai ) 20 3 Investment Projects & Opportunities

Guaranteed by the government, potential projects are handpicked just for you. In addition, We also specifically collect potential tourism sites and products in North Sumatra. SEI MANGKEI SPECIAL ECONOMIC ZONE INVESTMENT PROJECT Overview

Location Simalungun Regency Infrastructure : IDR 5,1 Trillion Investment Value Investor/Tenant : IDR 129 Trillion Total Area / Land Status 1933,80 Ha/ Land Management Rights (HPL) Mode of Offer Financing and Direct Investment PROJECT’S Project Owner PT. Kawasan Industri Nusantara IMAGE/ Palm Oil & Downstream Industries LOCATION Main Industries Rubber & Downstream Industries IMAGE 1) Infrastructure availability. 2) Government provisions and support. 3) Land used : 241,14 Ha / 12.57% from total area (updated July 2020). Project Description 4) Investment realization : IDR 5,920 Billion Project Status • Sei Mangkei is an industrial area located at the raw materials center which (consist of IDR 793 Billion on infrastructure and based on agribusiness, such as palm oil and rubber. IDR 5,127 Billion on Direct Investment) 5) Direct investment is allowed to construct and • SEZ Sei Mangkei is divided to 3 zones : own buildings or other structures on the land  Industrial Zone : Palm Oil Downstream Industry Zone (oleochemical, (max. 30 years and extendable for another 20 refinery, biodiesel), Rubber Downstream Industry Zone, Production years). Supporting Facilities, Various Industry Zone (electronic, electricity), Small Contact Person: & Medium Industries. Name : Muhammad Fadillah  Logistic Zone : Dry Port, Tank Farm, Warehousing, Packaging. Mobile : +62811-6322-330 Email : [email protected]  Tourism Zone : Hotel, Golf Course, Commercial Area, MICE (Meeting, Incentives, Convention & Exhibition). © 2018 by Indonesia Investment Coordinating Board. All rights reserved 22 SEI MANGKEI PROFILE

Developer : Total Area : Main Activities: Estimated Investment PT Perkebunan 1.933,8 Ha . Palm Oil Processing Industry (until 2031): Nusantara III (Persero/ (HPL No, 1/2014) . Rubber Processing Industry .Infrastructure : IDR 5,1 Trillion State Owned .Investor : IDR 129 Trillion Company))

Location : Determination : Direct Labor Projection: Impact on the Economy: Simalungun Government Regulation 83.304 people .Increased Output of IDR 92,1 Regency, North No. 29 year of 2012 Trillion to the National Economy Sumatera Officialy Opened: Januari 27, 2015 Highway Connection

Kualanamu-Tebing Tinggi Accesibility to Sei Mangkei has Medan-Kualanamu ± 38 Minutes become easier, with and efficient and ± 17 Minutes adequate highway from Medan and Highway of Medan- Belawan to Sei Mangkei. Kualanamu-Tebing Tinggi (63,5 Km) Highway of Belawan- Medan-Tanjung Morawa (34,4 Km)

SEZ Sei Mangkei

Aerocity 24 SPECIAL ECONOMIC ZONE SEI MANGKEI Zoning Area

Land Usage Rate

12,57% of the total area 25 HIGHWAY CONNECTION

/ AEROCITY

Kualanamu-Tebing Tinggi Medan-Kualanamu ± 38 Minutes ± 17 Minutes

Highway of Medan- Kualanamu-Tebing Tinggi (63,5 Km) Highway of Belawan- Medan-Tanjung Morawa (34,4 Km)

SEZ Sei Mangkei

Aerocity SPECIAL ECONOMIC ZONE SEI MANGKEI INVESTMENT PROJECT Accessibility

to Thailand, Asia, Belawan Seaport (146 Km) Eropa, dll

Kualanamu Internasional Airport (106 Km)

Kuala Tanjung Seaport (40 Km) Medan City (125 Km) to Malaysia

to Singapura, Jakarta and Pasifik

10 27 UTILIZATION AND FACILITY SEZ SEI MANGKEI Inside SEZ Sei Mangkei : * MMSCFD = Million Metric Standard Cubic Feet per Day     Outside SEZ Sei Mangkei

Roads WTP 250 m3/hour WWTP 250 m3/hour

    Kualanamu Electricity International Airport 150 KV / 60 MVA Railway   

    Gas Pipeline 75 MMSCFD SEZ Sei Mangkei Highway : 1. Medan – T. Tinggi Kuala Tanjung Seaport : 2. T. Tinggi – Kisaran . 400.000 TEUs 3. T. Tinggi – P. Siantar Container . 3.5 Million Tons Bulk    

Telecomunication Dry Port Tank Farm Network 2300 TEUs and 2 x 3000 Ton CPKO & IT (Fiber Optic) Railway Station 5 x 5000 Ton CPO 28 KUALA TANJUNG INDUSTRIAL AREA INVESTMENT PROJECT Overview

Location Sei Suka Sub-District, Batubara Regency Investment Value IDR 28.87 Trillion Total Area / Land Status ±3400 Ha Mode of Offer Financing and Investment PROJECT’S Project Owner PT Pelabuhan Indonesia I (Persero) IMAGE/ Project Developer PT Prima Pengembangan Kawasan LOCATION Main Activities Processing Industries IMAGE 1) The Port as its supporting facilities has Project Status been opened for operation (2019) 2) Land acquisition (start from 2019)

Project Description PROJECT’S OWNER PROFILE: PT Pelindo I is a leading port service provider in Sumatera. It operates 24 ports Kuala Tanjung Industrial Estate is intended for processing and has a strong footprint in Aceh, North Sumatera, Riau and Riau Islands. industries such as : PT. PELINDO I through its subsidiary (PT Prima Pengembangan Kawasan) is in • Petroleum • Automotive charge to develop and manage Kuala Tanjung Industrial Estate. • Palm Oil • Rubber Contact Person: • Liquified Natural Gas • Electricity Saut Siagian (Director) • Aluminium • Cement Mobile: +6281298556132 © 2018 by Indonesia Investment Coordinating Board. All rights reserved 29 KUALA TANJUNG INDUSTRIAL AREA INVESTMENT PROJECT Master Plan

Source: PT. Prima Multi Terminal 30 KUALA TANJUNG INDUSTRIAL AREA INVESTMENT PROJECT Master Plan

(2015 – 2019) (2015 – 2030) (2030 – 2040)

Source: PT. Prima Multi Terminal 31 KUALA TANJUNG INDUSTRIAL AREA INVESTMENT PROJECT Master Plan

(Liquid Bulk Terminal) (Container Terminal)

Source: PT. Prima Multi Terminal 32 KUALA TANJUNG INDUSTRIAL AREA INVESTMENT PROJECT Connectivity

Source: PT. Prima Multi Terminal 33 TOBA CALDERA RESORT OPPORTUNITY Overview

Location Ajibata District, Toba Samosir Regency, North Sumatera Land 386.72 Ha Sectors Tourism 1. Hospitality 121.67 Ha PROJECT’S 2. MICE 2.72 Ha 3. Commercial 8.36 Ha IMAGE 4. Small and Medium Enterprise Center 0.9 Ha 5. Geo Cultural Park 9.78 Ha Utilities & 6. Cultural Center 1.35 Ha Infrastructure 7. Supporting Facilities 2.06 Ha 8. Healthcare 1.66 Ha 9. Botanical Garden 14.54 Ha 10. Agro Farm 21.47 Ha 11. Sustainable Golf 71.53 Ha 12. Green Project’sSpace 127.43 Owner Ha Profile

Total Infrastructure; Landscape Feature; Office and Supporting Investment Value Project Description Building; Public Facility IDR 1,8 Trillion (Excluding PPN) • Business Overview & Objectives : • Long lease Agreement (30 to 80 years) Business’s Scheme 5-Star International Hotel and Resort, Leisure and Entertainment, Commercial and • Other Agreeable CooperationContact Form Fine Dining, Luxury Residential Villa, Golf Course and Facilities. Managed by Lake Toba Tourism Authority Resort Concept that incorporate nature, culture, and technology into an Integrated Project Status Eco Resort. Contact Person • Competitive Advantage Name : M. Rommy Fauzi  World’s largest volcanic lake and stunning landscape in nature (formed by 3 major Occupation : Director volcanic eruptions) Mobile : +62 818 0868 6886  Accessibility (Air Connectivity) : Kualanamu Airport, Silangit Airport and Sibisa Airport. Email : [email protected] / [email protected] © 2018 by Indonesia Investment Coordinating Board. All rights reserved 34 Integrated Low-Cost Apartment Building OPPORTUNITY Investment Project

Lake Toba was formed by three major eruptions 900,000 years ago, 500,000 years ago, and 74,000 years ago. That caused historical records through the evolution of human, flora and fauna.

35 World’s Largest Volcanic Lake Stunning Landscape in Nature Formed by 3 Major Volcanic Eruptions (last was 74,000 years ago)

All-year-round Comfort Climate ± 18-24° C Water Surface Elevation at ± 900 m above sea level 36 Home of Ancient Bataknese Culture Rich in Culture including Vernacular Architecture, Traditional Craft, Music, and Culinary

37 TOBA CALDERA RESORT OPPORTUNITY Investment Opportunities

Floating Jetty Cable Car Aerosport Sea Plane Lake Cruise

International Tourist Bus International Hotel Cultural International Hospital Service and Resort Performance Event 38 TOBA CALDERA RESORT OPPORTUNITY Initial Study - Road

LAKE TOBA TOURISM DEVELOPMENT PLAN Pardamean Sibisa Village, Motung Village, and Sigapiton Village Ajibata Sub-District, Toba Samosir Regency, North Sumatra Province

NORTH SCALE 1 : 25000

LEGEND : BACK OF HOUSE PLAN GREEN OPEN SPACE PLAN BENCHMARK LAKE TOBA VILLAGE TERRITORY EXISTING ROADS BPODT TERRITORY

Source: BPODT 1639 TOBA CALDERA RESORT OPPORTUNITY Land Use Plan

Land use Total (m2) Total (Ha) % Hotel/ Resort 1.325.704 132,57 34,38% Commercial 91.752 9,18 2,38% Geo Cultural Park 91.941 9,19 2,38% The Kaldera 22.808 2,28 0,59% BPODT Office 9.610 0,96 0,25% Tourism Academy 22.028 2,20 0,57% MICE 88.706 8,87 2,30% Healthcare Facilities 13.139 1,31 0,34% Cultural Centre 19.861 1,99 0,52% UMKM Centre 9.244 0,92 0,24% Flower Garden 46.848 4,68 1,21% Botanical Garden 157.212 15,72 4,08% Golf 757.789 75,78 19,65% BOH (Back of House) 18.684 1,87 0,48% Utilities 69.029 6,90 1,79% Road 454.295 45,43 12% Carriage way 142.856 Median 15.328 ROW Green Buffer 296.111 Public Open Space 632.271 63,23 16% Body of Water 24.943 TOTAL 3.855.864 386 100% 40 TOBA CALDERA RESORT OPPORTUNITY Investment Plan

THEMATIC CONCEPT

North Ridge North Ridge - Serene - Exclusive - Wellness

Central Village - Celebration - Vibrant - Integrated - Cultural South Ridge South Ridge - Leisure - Adventure - Active Average of 50 Roomkeys/Ha - Luxury 41 TOBA CALDERA RESORT OPPORTUNITY Investment Plan HOSPITALITY

VILLA NR2: 10.81 Ha, NR3: 9.72 Ha, NR5: 9.81 Ha

HOTEL CV1: 5.11 Ha, CV2: 5.50 Ha, CV3: 4.76 Ha, HOTEL/VILLA CV5: 4.24, CV7: 1.21 Ha, CV 8: 2,26 Ha SR1: 3.61 Ha, SR2: 5.13 Ha, SR3: 5.94 Ha 42 TOBA CALDERA RESORT OPPORTUNITY Investment Plan

GREEN DESTINATION

BOTANICAL GARDEN NR6: 15.72 Ha

FLOWER GARDEN SR9: 4.68 Ha GOLF COURSE SR12: 75.78 Ha 43 TOBA CALDERA RESORT OPPORTUNITY Investment Plan

COMMERCIAL & MICE

COMMERCIAL MICE

FOOD CITY CV9: 1,32 Ha CV6: 6.01 Ha RETAIL CV10: 1,67 Ha CV13 : 2.87Ha RETAIL CV14: 2,38 Ha

44 TOBA CALDERA RESORT OPPORTUNITY Investment Plan

GEO CULTURAL PARK

CV 21: 7.18 Ha CV 22: 2.01 Ha 45 TOBA CALDERA RESORT OPPORTUNITY Investment Plan

HEALTHCARE

CV 16: 1.31 Ha

46 TOBA CALDERA RESORT OPPORTUNITY Investment Project

1. Waste Management Project: • Intermediate Treatment Facilities & Landfills Location: • Lot “CV 20”, 1,11 Ha

2. Tourism Attraction Project: • Botanical Garden Location: • Lot “SR 9”, 4,68 Ha

47 TOBA CALDERA RESORT OPPORTUNITY Investment Project

Legal Owner “Waste Management Infrastructure” •Lake Toba Tourism Authority •A Public Service Agency (Badan Layanan Umum) under Ministry of Tourism Indicative Waste Generation: • 38 m3 / day or around 12 Land Area tons / day •± 1,11 Ha Busines Scheme •Revenue sharing operational cooperation •Other legally allowed forms of cooperation

Investment Value •Indicative cost estimation is IDR 6.781.000.000 or USD 500.000 for 3 landfills and an Intermediate Treatment Facilities 48 TOBA CALDERA RESORT OPPORTUNITY Investment Project

Legal Owner “Botanical Garden” •Lake Toba Tourism Authority •A Public Service Agency (Badan Layanan Umum) under Ministry of Tourism Land Area •± 4,68 Ha Busines Scheme •30 + 15 years Land Lease Agreement •Revenue sharing operational coorporation •Other legally allowed forms of cooperation *Indicative tarif for land lease from initial study is 2 USD / s.q.m / year

Investment Value •Subject to further discussion

49 Siantar-Parapat Railway OPPORTUNITY Overview

Pematangsiantar City – Parapat (Simalungun Location Regency)

Track Length 64.7 Km (Divided into 3 segment) PROJECT’S IMAGE Capacity 4.473.996 people/year Sectors Connectivity

Railway: IDR 503 Billion Investment Value Train Station: IDR 230 Billion Facilities: IDR 647 Billion

Business’s Scheme Public Private Partnership

Project Description Project Status - Feasibility Study completed in 2020 • It’s railway construction project which connecting Pematangsiantar City to Contact Parapat, the main gate of Lake Toba. Contact Person • The train to Parapat would shorten the travel time Name : Agustinus Panjaitan Occupation : Head of Train Division, North Sumatra Transportation Board Mobile : +62 812-6067-538 Email : [email protected] © 2018 by Indonesia Investment Coordinating Board. All rights reserved 50 Siantar-Parapat Railway OPPORTUNITY Concept Plan

District Capital Alternative Route 1

Sub-District Capital Alternative Route 2

District Boundary Alternative Route 3 Sub-District Boundary River Pondok Genteng- LakeRiver Sipigul Railway Plan Lake Toll Road Plan

Arterial Road Collector Road 1 Collector Road 2 Collector Road 3 Collector Road 4 Primary Local Road Environment Road

Alternative Route 1: Pematangsiantar City (Martoba Subdistrict)-Simalungun District (Panombean Panei Subdistrict, Panei, Sidamanik, Jorlang Hataran, Sidamanik, Girsang Sipangan Bolon) Alternative Route 2: Pematangsiantar City (Martoba Subdistrict-Siantar North, West Siantar, South Siantar and Marimbun Subdistrict)-Simalungun District (Siantar Subdistrict, Jorlang Hataran Subdistrict), Dolok Panribuan, Girsang Sipangan Bolon. Alternative Route 3: Pematangsiantar City (Martoba Subdistrict)-Simalungun District (Siantar Subdistrict, Jorlang Hataran Subdistrict), Dolok Panribuan, Hatonduhan-Girsang Siangan Bolon-Desa Girsang-Parapat Kecamatan Girsang Sipangan Bolon. 51 MIXED USE RENTAL APARTMENTS in Sei Mangkei Special Economic Zone OPPORTUNITY Overview

Location Sei Mangkei SEZ, Simalungun Regency Investment Value IDR 1.2 Trillion Gov’t budget: IDR 53,78 Billion Financing National budget: IDR 193,01 Billion PROJECT’S PPP: IDR 965,5 Billion IMAGE Project Owner Governor of North Sumatra Housing and Residential Area Reg. Gov’t Project Developer Board Main Activities Low-Cost Building Apartment

Project Status 1) OBC and FBC completed in 2020 2) 1st market sounding has done in June 2020

Project Description

This Low-Cost Building apartment is intended for workers in Sei Mangkei Contact Special Economic Zone (SEZ). More than 1800 people work in Sei Mangkei but has an issue of sufficient housing facilities. Contact Person Name : Ida Mariana Harahap This area would be completed with another supporting facilities such as Occupation : Head of Housing and Residential Board in playground, mosque, gas station, and entertainment plaza. North Sumatra Province Mobile : +62 812-6973-6711 Email : [email protected] © 2018 by Indonesia Investment Coordinating Board. All rights reserved 52 MIXED USE RENTAL APARTMENTS In Sei Mangkei Special Economic Zone OPPORTUNITY Overview

1. Apartment • Total Floor: 16 • Ground Floor-5th floor: room, rooftop 6th floor: various facilities, 7th – 16th floor: room, rooftop • Studio Type Room (tipe 44): 77 unit • Family Room (tipe 80): 55 unit

2. HOTEL Total Floor: 15 1st floor: lobby, 2nd - 3rd floor: core lift 4th – 6th floor: facilities, 7th floor: Hall 8th – 15th floor: room, rooftop+helipad Deluxe room (4x8m): 90 unit Suite room (5x9m): 27 unit

3. COMMERCIAL UNIT/HYPEMART Total Floor: 4 1st – 3rd floor: Hypermart and other retail store 4th floor: service 4. SWIMMING POOL 53 MIXED USE RENTAL APARTMENTS In Sei Mangkei Special Economic Zone OPPORTUNITY Location

Primary Collector Road Secondary local road Ringroad Plan New Bridge Plan Road Plan at Housing Area 54 MIXED USE RENTAL APARTMENTS In Sei Mangkei Special Economic Zone OPPORTUNITY Site Plan

55 MIXED USE RENTAL APARTMENTS In Sei Mangkei Special Economic Zone OPPORTUNITY Supporting Facilities

PLAYGROUNDc MOSQUE

GAS STATION 56 SPORT CENTER OPPORTUNITY Overview

Location Sena Village, Deli Serdang Regency

Land 300 Ha

PROJECT’S Sectors Infrastructure

IMAGE Investment Value IDR 8 Trillion Exc. commercial area : Hotel, Shopping Mall, Recreation - APBD, APBN, KPBU (construction of sports facilities and Business’s infrastructure) Scheme - PPP/ B to B (construction of commercial area) - The Master Plan was completed in 2019 - Land acquisition and compensation have completed in early 2020 - Initial Construction of Physical Construction for the Junior Project Description Project Status Athletics Stadium and Martial Arts Stadium will be carried Main facilities & Infrastructure: Supporting out in 2021 • Main football stadium Facilities: - The DED DevelopmentContact of 5 Venues will be carried out in • Hockey field (indoor/outdoor) • Homestay 2020, and the DED 5 Venues will be carried out in 2021 • Aquatic facilities • Business center: mall, • Equestrian cross country hotel, mass transportation • Istora building • Electricity, water, Contact Person • Badminton field (indoor) accessibility Name : Rahmad Ziady • Martial arts Occupation : Head of sub-sector of Finance, Investment & Assets Planning • Venues (outdor) and Development Body Government of North Sumatra Mobile : +62 823-6411-6083 © 2018 by Indonesia Investment Coordinating Board. All rights reserved Email : [email protected] 57 SPORT CENTER OPPORTUNITY Main Football Stadium

Location Deli Serdang Regency

Capacity 75,000 People PROJECT’S IMAGE Sectors Infrastructure

Investment IDR 1.84 Trillion Value

Business’s - KPBU Scheme - Fiscal year plan for 2020 to 2023 (Multi-years)

Project Description Contact Person • This main project will be constructed as the preparation to support the Name : Rahmad Ziady implementation of National Sport Weeks XXI (PON XXI) in 2024, SEA Occupation : Head of sub-sectorContact of Finance, Investment & Assets GAMES in 2025 and the Olympics in 2032. Planning and Development Body Government of North Sumatra • Accessibility: Main road to this venue will be integrated with the Toll Mobile : +62 823-6411-6083 Road and the LRT / BRT Development Plan Email : [email protected]

Location Deli Serdang Regency

Capacity 5,000 People

PROJECT’S Sectors Infrastructure IMAGE Investment IDR 136.79 Billion Value

Business’s KPBU Scheme

Contact Person Project Description Name : Rahmad Ziady Occupation : Head of sub-sector of Finance, Investment & Assets • This main project will be constructed as the preparation to support the Planning and Development Body implementation of National Sport Weeks XXI (PON XXI) in 2024, SEA Government ofContact North Sumatra Mobile : +62 823-6411-6083 GAMES in 2025 and the Olympics in 2032. Email : [email protected] • Accessibility: Main road to this venue will be integrated with the Toll Road and the LRT / BRT Development Plan

Location Sport Center Arena

Capacity 2,600 People

PROJECT’S Sectors Infrastructure IMAGE Investment IDR 1.15 Trillion Value - KPBU (cooperation between government and business entities) Business’s - Accessibility: Off the main road to Kualanamu Scheme Airport will be integrated with the Toll Road and the LRT / BRT Development Plan Project Description Contact Person • This main project will be constructed as the preparation to support the Name : Rahmad Ziady implementation of National Sport Weeks XXI (PON XXI) in 2024, SEA Occupation : Head of sub-sector of Finance, Investment & Assets GAMES in 2025 and the Olympics in 2032. Planning and DevelopmentContact Body • Accessibility: Main road to this venue will be integrated with the Toll Government of North Sumatra Road and the LRT / BRT Development Plan Mobile : +62 823-6411-6083 Email : [email protected]

Location Sport Center Arena

Sectors Infrastructure Investment Stakeholder, investor, and third parties PROJECT’S Value IMAGE - Business center and commercial area such as shopping center, mall, hotel, and entertainment facilities Business’s - Accessibility: Off the main road to Kualanamu Scheme Airport will be integrated with the Toll Road and the LRT / BRT Development Plan - Funding from stakeholders, investors for Project Description commercial areas are needed

• This main project will be constructed as the preparation to support the Contact Person implementation of National Sport Weeks XXI (PON XXI) in 2024, SEA Name : Rahmad ZiadyContact GAMES in 2025 and the Olympics in 2032. Occupation : Head of sub-sector of Finance, Investment & Assets Planning and Development Body • Accessibility: Main road to this venue will be integrated with the Toll Government of North Sumatra Road and the LRT / BRT Development Plan Mobile : +62 823-6411-6083 Email : [email protected]

The beauty of North Sumatra could find out from what we have through potential tourism site.

62 Priority Tourism Super Priority Site Potential Tourism Site Tourism Site 8 1 6 4 6

Tangkahan Mursala Island Pantai Muara Opu Maimoon Palace Medan City Lake Toba & Resort Langkat Regency 5 Central Tapanuli Regency South Tapanuli Regency Samosir Regency 2 5 7 9

Bukit Lawang 3 4 Poncan Island Silahi Sabungan Simalem Resort Karo Regency Langkat Regency 1 Sibolga City Dairi Regency 3

Berastagi Karo Regency

63 63 LAKE TOBA

“The Largest Volcanic Lake in The World”

Lake Toba is an immense volcanic lake covering an area of 1,707 km² (1,000 km² bigger than Singapore) with an island in its center. Lake Toba Caldera is one of the nineteen Geoparks in Indonesia, which is proposed to be included in the UNESCO Global Geopark 64 64 TANGKAHAN

“The Hidden Paradise”

Some calls it “the hidden paradise”, Tangkahan is a nature wonder where you can play and have fun with the friendly elephant. Here, you also can explore the jungle and enjoy the fresh river water

65 65 Bukit Lawang

“Conservation Site for Orang Utan”

Amazing panorama, surrounded by forests, rivers, and the mountain that stretches along the island of Sumatra. You won’t miss the moment with this endemic creatures for sure!

66 BERASTAGI

“The Beauty of City and Culture”

The highland view of Berastagi would bring you the new kind of experience

67 67 MURSALA ISLAND

“The King Kong Island”

The awesome scenery and its authentic wilderness have attracted the world. Proudly present Mursala Island, where King Kong movie (2005) production took place

68 68 PONCAN ISLAND

“The Exotic Island”

Imagine an island with a beautiful landscape, blue ocean, it’s crystal clear. That’s exactly what Poncan Island offers you

69 MUARA OPU BEACH South Tapanuli regency 59 km away from Dr Ferdinand Lumban Tobing airport

“The Home of Turtles ”

With 14 km shore length, Muara Opu beach is home for thousands of turtles which breed once a year. You could feel the nature experience while seeing the breath-taking view

70 70 SILAHI SABUNGAN

“Where Nature meets culture ”

Natural beauty, cultural experience and religious pilgrimage, Silahi Sabungan is a majestic place like no other to find inner peace

71 71 MAIMOON PALACE

“The“The Melayu Exotic DeliIsland” Kingdom”

Historical value and the beauty of Deli tradition would be a good tease for your travel experience

72 SIMALEM RESORT GARDEN

“The Sunrise Highland”

The clouds is just an inches away. Surely you don’t want to miss a single moment of sunrise and sunset!

73 73 • In accordance with the government's lockdown policy on the COVID-19 issue, the number of tourists decreased by -43.09% (mtm) in March against February. • Whereas for the number of tourists in March 2020 the most by country was from Malaysia, amountly 4,042 tourists.

Belawan March February March 2019 2020 2020 Kualanamu Total 14 6 2 March February March y-on-y -85,71% 2020 2020 2019 Change m-to-m -66,67% The Top 5 Foreign Tourists Visit to North Sumatra Total 21 129 14 364 7 375 by Country, March 2019 - 2020 y-on-y - 65,10% Change m-to-m -48,66%

Tanjungbalai Asahan Silangit March February March 2019 2020 2020 March February March Total 2019 2020 2020 431 148 123 March ‘19 Total y-on-y -72,73% March ‘20 0 849 332 Change y-to-y 0 m-to-m -16,89% Change Source: Central Bureau of Statistics of Indonesia (BPS) m-to-m - 60,90% 74 SMALL MEDIUM ENTERPRISE

North Sumatra had a great potential of SMEs, which picture the uniqueness of North Sumatra. Here you can see some products from us that are ready to be part of international market

“Meet the Magnificent North Sumatra”75 ULOS SIANIPAR IR & IR Songket Deli There are various types of fabric Translates traditional textile from pattern and also accessories Deli Malay Indonesia into modern which are made from Ulos fabric style textile products. This such WOVEN such as dresses, bags, shoes etc heritage is worth the world-wide sharing

FABRIC [email protected] [email protected] +6281265846702 +62 811-6517-766 galeryulos_sianipar songketdeli

RAKI TENUN

Various types of woven products such as raw fabric, clothes, and other accessories

[email protected] 081375437933 iwah_rakitenun 76 COFFEE

01 02 01 02 03 MAGA COFFEE ALOYA COFFEE ASTARI COFFEE Arabica Mandheling Mandheling, Lintong, Arabica Lintong, Arabika Lake Toba Organic Longberry, Gayo Sigordang,Arabika Mabulang, Robusta Sidikalang green beans and roasted beans green beans and roasted beans, wild civet, wine coffee, etc. cascara, coldbrew

[email protected] [email protected] [email protected] 0821-6745-8276 0821-6745-8276 082279779352 03 04 @magacoffee www.aloyacoffee.com Astari Coffee 04 05 06 DRIP COFFEE SINERGI COFFEE CIMBANG COFFEE Arabica Lintong, Arabica Samosir, Arabica Sidikalang, Arabica Arabica Karo Arabica Coffee Mandailing, Arabica Karo, Arabica Blue Batak green beans and roasted beans green beans and roasted beans, coldbrew coffee, wine coffee, and and powder beauty products [email protected] [email protected] [email protected] 082160550726 0821-1758-8175 05 06 0813-7558-8774 Kopi Cimbang Sinabung 77 Gula Semut Aren Gula Aren Alam Makmur Nata De Coco Sapo Durin Zack Krezz Pop Corn Brontak Palm Sugar Palm Sugar Dessert Snacks Snacks - Made from pure palm - Produced packaged brown Nata De Coco - Potato chips Crunchy caramel popcorn sugar and palm sugar - Banana crackers wrapped in 5 unique flavors : - Has a lot of nutrients - Produced bandrek palm - Cassava chips Caramel Chocolate, Caramel - Practical to use as a Sugar - Tempe Chips Cheese, Caramel Tiramisu, sweetener - Produced Choco palm sugar - Crispy mushroom Caramel Mango and Caramel Strawberry.

[email protected] [email protected] [email protected] [email protected] [email protected] 081397610484 0811602211 08116502012 085296661433 081388054676 gulasemutarenberkahbuluhawar gulaarenmedan Sapodurin Zack Krezz popcornbrontak

78 5 Licensing in Indonesia

A quick guide on getting business license in Indonesia. It’s never been easier to do business here. FDI PROCEDURES (For Non-Industrial Zone) 01 02 03 PREPARATION PRE-ORIENTATION COMMERCIAL OPERATION BKPM BKPM BKPM Obtaining principal license Obtaining import identification number Obtaining business license (IU) before the (API-P) for manufacturing companies, if start of commercial operation Ministry of Law and Human needed Obtaining general import identification Rights (with the help of notary) Submitting investment activities report number (API-U) and material import duty (LKPM) every 3 months exemption, if needed Establish the limited liability DG of Taxation, Ministry of Finance Submitting investment activities report company Obtaining facilities such as machinery (LKPM) every 6 months Research about the sectors for import duty exemption and approval of tax facilities Sectoral Ministries investment under the negative Local Government Obtaining periodic operational permits, investment list such as construction services permits Obtaining licenses from local government, such as building permit, domicile certificate. Sectoral Ministries Obtaining permits from relevant sectoral ministries, such as plantation permits

80 3 HOURS Investment Licensing Service & Direct Construction Permits

Fulfill of 3 Criteria for Registering Your Business 01 Investing in Indonesia 02 at One Stop Service BKPM

1) Investment plan minimal IDR 1) One stop service BKPM is 100 billion or absorbing 1,000 providing in-house notary local workers 2) Registration deed of establishment 2) Submitted directly by Investor & maintain of Tax ID number 3) The company project is located 3) By on-line through OSS BKPM in certain industrial zone nor bounded zone

Get License For Making A Submit Your License Direct Construction 03 New Business 04 05 Simultaneously

1) Principle License Direct Construction 1) One Stop Service BKPM 2) Deed of Incorporation 2) Regional/District Investment 3) Tax ID number (TIN) Agency (BPMPTSP)

81 INVESTMENT INCENTIVES TAX HOLIDAY MINI TAX HOLIDAY MoF Regulation No.150 of 2018 MoF Regulation No.150 of 2018 Minimum investment of Minimum investment of IDR 500 billion IDR 100 to < 500 billion Income Tax Applied to 18 industry groups Reduction 100 % Reduction Rate (single rate) Rate 50 % Reduction Rate (single rate) No Time Period Investment Value

1 5 years IDR 500 bn up to less than IDR 1 tn 2 7 years IDR 1 tn up to less than IDR 5 tn Year 3 10 years IDR 5 tn up to less than IDR 15 tn Concession Concession Period

15 years Period 5 4 IDR 15 tn up to less than IDR 30 tn

5 Up to 20 years Minimum IDR 30 tn CIT Reduction for the 25% next 2 years 50% CIT Reduction for the next 2 years 1 The taxpayer (company) is incorporated in Indonesia 1 Through OSS 2 Fulfill Debt Equity Ratio for income tax purposes as GENERAL stipulated on MoF Regulation No.150/2018 2 Along with taxpayer’s application for New Business HOW TO CRITERIA Has never had tax holiday application granted or License (NIB) to BKPM APPLY 3 rejected by the MoF 3 Applying within 1 year after the NIB is issued by BKPM 4 Obtain a tax clearance certificate (SKF) issued by DGT 82 6

Key Contacts

Who you can contact if you want to invest and grow your business in North Sumatra?

83 OUR TEAM We are fully committed to help your investment

Bank Indonesia Authority of Lake Toba Rizki Rahmawati M. Rommy Fauzi Investor Relation Director of Tourism [email protected] [email protected] +6287722887165 [email protected] +6281808686886

Promotion and Licensing Division Government of North Sumatra Sei Mangkei SEZ Renata PT. KINRA [email protected] Anastasia Indriyani +6281361116407 [email protected] +62811633721

Planning and Development Body Government of North Sumatra Kuala Tanjung Port Rahmad Ziady PT. Prima Pengembangan Kawasan Head of sub-sector of Finance, Said Joeanna Saut F. Siagian Investment & Assets Busines Manager Business Director [email protected] [email protected] [email protected] +6281284347000 +6281298556132 +6282364116083 84 SCAN US HERE

For more information, Kindly visit our website : northsumatrainvest.id