WEST
JAVA
POTENTIAL
INVESTMENT
OPPORTUNITIES This
information
material
develop
as
part
of
the
Regional
One
Stop
Service
and
Investment
Agency
of
West
Java
Province
(DPMPTSP)
endeavors
in
ensuring
the
attainment
of
advancing
regional
development
through
the
promotion
of
related
field
opportunities.
It
is
purposed
to
nature
the
investment
community
comprehension
on
the
status
of
West
Java
Province
competitiveness,
and
to
promote
investment
cooperations
between
Wets
Java
and
the
wolrd
community.

PUBLISHED
BY
:

Sumatera
Street
No.
50,
Bandung
40115 Diponegoro
Street
No.
21,
Bandung
40115

(022)4237369
Fax:(022)4237081

www.dpmptsp.jabarprov.go.id

[email protected]

WEST JAVA POTENTIAL
INVESTMENT
OPPORTUNITIES 2017

West
Java
Metropolitan
Cirebon
Raya
Legok
Nangka
International
Airport
(BIJB)
Clean
Water
Supply
System
Solid
Waste
Treatment
dinaspmptsp.jabar dinaspmptsp.jabar dinaspmptsp.jabar Supporting
Facilities
&
Aerocity &
Disposal “WEST JAVA POTENTIAL

WEST
JAVA
INVESTMENT INDONESIAN ”

Office
Address
:

Regional
one
stop
service
&
investment
agency
of
West
Java
Province Sumatera
Street
No.
50,
Bandung
40115
&
Diponegoro
Street
No.
21,
Bandung
40115

(022)4237369
Fax:(022)4237081

www.dpmptsp.jabarprov.go.id

[email protected] WEST JAVA Profile
Overview

ADMINISTRATIVE

Governor

:
H.
Ahmad
Heryawan Vice
Governor
:
Deddy
Mizwar Capital
City
:
Bandung
City Regencies
:
18
Regencies Cities

:
9
Cities

GEOGRAPHIC LEGOK NANGKA Area

:
35.222.18
Km2 SOLID WASTE Coordinates
:
6’45’S
107’30’E TREATMENT Topography
:
Lowlands,
Mountains,
&
Coasts AND DISPOSAL CAPITAL
CITY
OF
WEST
JAVA

The
city
of
Bandung
as
the
provincial
capital,
Bandung
is
a
city
of
international
fame
with
the
1995
Bandung
The site capacity planned to be 1.800 TPD in 2019 – 2024 and 2,000 TPD in 2025 - 2030. conference
forging
of
the
non
aligned
movement The site will serve 5 area (Bandung City, Bandung Regency, West Bandung Regency, Cimahi City, Sumedang Regency, Garut Regency). Capital

:
Bandung Coordinates
:
5o50’-
7o50’latitude



104o48’-
108o48’longitude Land Acquisition and Basic Waste to Energy Thermal Facilities : INVESTMENT VALUE Infrastructure : BORDERS - Sorting Facilities/ Material East
:
Central
Java
Province TROPICAL
CLIMATE
TEMP RAINFALL Land 74.6 Ha (2011) - Recovery Facilities (MRF) 9°
C

-
to
34°
C 2,000
mm
–
5,000
mm
/
year
Access Road (2013) - Waste to Energy Plant West
:
Banten Operation Road (2015) - Pre and Post Treatment North
:
Java
Sea
&
Jakarta South
:
Indian
Ocean Sanitary Landfill (2015) $220 Leachate Treatment (2015) Common Buildings (2016) MILLION WEST
JAVA
ADMINISTRATION
&
BORDERS ON 2015 RELIGION ETHNIC Its
proximity
to
Jakarta
provide
West
Java
with
number
46.709.569 79% MOSLEM 79% SUNDANESE of
strategic
advantages,
especially
in
the
transportation
SOUL 3% OTHER 21% OTHER and
communication
espect
that
stimulate
economic
growth
for
people
living
in
West
Java.

LANGUAGES 18
REGENCIES
&
9
MUNICIPALS

TECHNOLOGY INVESTMENT COST CONCESSION PERIOD REGENCIES
: Cianjur,
Bogor,
Sukabumi,
Bekasi,
Bandung,
50,72% MALE WTE & Landfill USD 200 Million 25 Year SUNDANESE, INDONESIA, Purwakarta,
Subang,
Karawang,
Garut,
Tasikmalaya,
& CIREBONESE 49,28% FEMALE Ciamis,
Sumedang,
Cirebon,
Indramayu,
Kuningan,
PPP MODALITY EXPECTED REVENUE IRR Pangandaran,
Majalengka,
&
West
Bandung. Build Operate Transfer (BOT) Tipping Fee 15% (Under Calculation), MUNICIPALITIES
: PROJECT GUARANTED BY Recycle & Selling Bandung,
Banjar,
Bekasi,
Cirebon,
Cimahi,
Bogor,
Provincial Regulation Electricity Sukabumi,
Tasikmalaya. 16 1 METROPOLITAN CIREBON RAYA CLEAN WATER SUPPLY SYSTEM SELECTED Water Intake, IPA Tomo 100 L/Sc, Preparation Work & Water Transmission Pipe IPA Kadipaten 1400 L/Sc, Land Investment, (PHASE 1) Main Distribution Network Main Distribution Network, Off Take Construction INVESTMENT (PHASE 2) (PHASE 3) OPPORTUNITIES 550 850 900 MILIAR RUPIAH MILIAR RUPIAH MILIAR RUPIAH IN WEST JAVA USSD 41.04 MILLION USSD 63.43 MILLION USSD 67.17 MILLION

The Clean Water Supply System capacity planned to be 3,500 INVESTMENT VALUE liter / second which will serve 5 area:

- Sumedang Regency - Majalengka Regency 2.3 - Indramayu Regency TRILIUN RUPIAH - Cirebon Regency USSD 171.65 MILLION - Cirebon City

2 15 BIJB AEROCITY DEVELOPMENT INVESTMENT SCEHEME & PROCEDURE WHY WEST JAVA

INVESTMENT SCHEME

Share Holder Developer - Holds PT. BIJB Aerocity development shares - Manages and develops cluster in Aerocity - Dividend and recurring incomes from utility services - Attracts anchor tenants - One gate management of aerocity - Provides services of cluster - Manages and develops of Energy Center cluster - Maintains basic infrastructure and estate service

Land Investment - Invest in land acquisition - Provides land for developers - Value sharing for medium or long period

1. Letter of Intention 2. Investment / Business Proposal PRO 3. Evaluation 4. MOU / Refundable Deposit 5. Business Plan Discussion / Feasibility Study & Due Dilligence CED 6. Design Development (Permit & License) 7. Joint Venture / Joint Operation / Land Utilization Agreement URE 8. Contruction / Operation

14 3 WEST JAVA HIGHLIGHT BIJB AEROCITY DEVELOPMENT

Kertajati Aerocity is designated with area size of 3.480 hectares in Kertajati Majalengka Region, West Java including Kertajati International Airport as the hub of business, tourism, and high tech industry development of ADJACENT CENTER Indonesia. 18,79 TO OF MILLION TANJUNG PRIOK Aerocity BIJB is a supporting facility of West MULTINATIONAL Java International Airport which has several PRODUCTIVE AGE SEAPORT COMPANY functions that are divided into 4 clusters (Multimodal Logistic Hub, Aerospace Park, Creative Technology, Business Park & Hospitality).

EDUCATION MULTIMODAL LOGISTIC HUB TOTAL DEVELOPMENT BLOCK 31% 18% SITE 429,16 Hectares CONTRIBUTION LAND USE/ZONE OF INDONESIAN - Non Polluntant Industry TO NATIONAL CENTER - Cargo Industry - Packaging / Final Assembly Manufacture INVESTMENT REALIZATION POPULATION - Werehouse

BUSINESS PARK

TOTAL DEVELOPMENT BLOCK ADJACENT TO 672 Hectares SOEKARNO HATTA ADJACENT LAND USE/ZONE INTERNATIONAL AIRPORT 18,04% - Offices & Financial Center - Mix Use Commercials TO NATIONAL GOODS - Hospitality / Leisure - Exhibition Center JAKARTA EXPORT CREATIVE TECHNOLOGGY CENTER AEROSPACE PARK

TOTAL DEVELOPMENT BLOCK TOTAL DEVELOPMENT BLOCK 544 Hectares 320 Hectares

LAND USE/ZONE LAND USE/ZONE - High Tech Industry - High Tech Industry - Bio Life Industry - MRO / Aviation Industry - Advanced Manufacture - Advanced Manufacture - University

4 13 WEST JAVA BIJB MINIMUM WAGE

GAS PIPELINE NETWORK IN BIJB $300.00 & BIJB AEROCITY $250.00 $200.00 $150.00 Gas pipelines network will be developed as a distribution network for gas users in BIJB and $100.00 Aerocity BIJB area. $50.00

WEST
BANDUNG
REGENCY PANGANDARAN
REGENCY CIREBON
REGENCY BEKASI
REGENCY TASIKMALAYA
CITY MAJALENGKA
REGENCY CIREBON
CITY BEKASI
CITY SUMEDANG
REGENCY KUNINGAN
REGENCY CIMAHI
CITY BANJAR
CITY SUKABUMI
REGENCY KARAWANG
REGENCY CIANJUR
REGENCY BANDUNG
REGENCY BANDUNG
CITY SUKABUMI
CITY INDRAMAYU
REGENCY CIAMIS
REGENCY SUBANG
REGENCY GARUT
REGENCY BOGOR
REGENCY PURWAKARTA
REGENCY DEPOK
CITY BOGOR
CITY

LOWEST MINIMUM WAGE RATE AVERAGE MINIMUM HIGHEST MINIMUM WAGE RATE PANGANDARAN REGENCY WAGE RATE KARAWANG REGENCY INVESTMENT VALUE $ 107.01 $ 162.42 $ 269.05 39.9 MILIAR RUPIAH USSD 3 MILLION WEST JAVA MACRO ECONOMIC HIGHLIGHT

Economic Growth GDRP Share

0.00 2.00 4.00 6.00 8.00 10.00 12.00

7 6.51 6.58 Informaon and Communicaon 10.37 6.2 6.33 Accomodaon & Food Service 9.42 6 5.67 Other Services 8.96 5.24 Educaon 5.09 5.03 8.03 5 Water Supply, Sewerage, and Waste 7.84 Business Acvies 7.80 Health and Social Work 4 7.73 Electricity and Gas 6.33 Transportaon and Storage 6.06 3 Agriculture, Forestry, and Fishery 5.75 Trade & Retail 5.33 2 Manufacturing 4.75 PIPE CAPACITY PIPE SPECIFICATION EST. SELLING PRICE SUPPLY EST Real Estate 4.50 1 Construcon 4.08 Financial Intermediary 1.41 10 MMSCFD Long10 km, diameter 6” 133 million/mmscf 3650 mmscf/ year 0 Mining & Quarrying 0.95 (USD 10,000 /mmscf) 2010 2011 2012 2013 2014 2015 2016 Q1-2017 Public Administraon 0.84

In
Q1-2017,
economic
growth
in
West
Java
was
recorded
at
5.24%
(yoy).
Though
such
growth
was
slightly
lower
than
MARGIN TOLL FEE EST. PAYBACK PERIOD COLLABORATION SCHEME the
previous
quarter
(5.45%),
it
was
higher
than
the
National
growth
in
Q1-2017
(5.01%).
Based
on
historical
data,
West
Java
economic
growth
will
significantly
improve
in
Q3
of
the
year. Rp 399,000 / mmscf 8.22 year Joint Venture (USD 30 /mmscf) 12 5 TOP 5 COUNTRIES BIJB THAT INVEST IN WEST JAVA GAS BACK BONE PIPELINE

INVESTMENT VALUE Based on Investment (in USD) 159.6 MILIAR RUPIAH JAPAN SINGAPORE HONGKONG 2,867,285,500 658,444,200 465,290,300 USSD 12 MILLION

SOUTH KOREA NETHERLAND 280,520,700 266,434,100

Based on Total Project The gas pipeline network development required as a BIJB power plant supply network.

JAPAN SINGAPORE HONGKONG Collaboration Scheme Est. Payback Period 2015 PROJECT 802 PROJECT 177 PROJECT Pipe Capacity 25 MMSCFD (up to 100 MMSCFD) Joint Venture 7 YEAR

SOUTH KOREA NETHERLAND Pipe Specification Est. Selling Price 1119 PROJECT 213 PROJECT Supply Est. Long 50 km, diameter 16" 133 million/mmscf 9125 mmscf/ year (USD 10,000/mmscf)

6 11 POTENTIAL BIJB INVESTMENT SUPPORTING FACILITY OPPORTUNITIES

POWER PLANT

Gas
Engine/Turbine
with
Co-Generation
(cooling/heating)
power
plant
development
is
intended
to
support
BIJB,
BIJB
Aerocity
and
other
supporting
facilities
operational
activities.
INVESTMENT VALUE

Local
Partner: 731.5



PT.
BIJB
(West
Java
Province
Owned
Company) MILIAR RUPIAH



PT.
Energi
Negeri
Mandiri
(West
Java
Province
Owned
Company) USSD 54.6 MILLION

Est. Demand 55 Production Capacity MW

520 MW Est. Payback Period 7,42 (existing supply 15 MW) Year

Est. Operational Cost Est. Revenue Est. Gross Profit Collaboration Scheme Rp. 620,85 Billion/year Rp. 650,43 Billion/year Rp. 29,57 Billion/year Joint Venture (USD 46.68 Million/year) (USD 48.90 Million/year) (USD 2,2 Million/year)

10 7 POTENTIAL INVESTMENT BIJB

West
Java
International
Airport
(BIJB)
is
strategically
located
in
eastern
area
of
West
Java,
Indonesia,
Investment Opportunities in BIJB connecting
major
cities
and
business
destinations
in
ASEAN. West
Java
International
Airport
(BIJB)
Supporting
Facilities
(1A) Supporting
Facilities
&
Aerocity With
35,4
Million
Ha
Area,
Population
of
46,5
Million,
Three
Metropolitan
and
Growth
Center,
West
Java
is
Power
Plant
(will
be
developed
in
BIJB
Aerocity
area) Ranked
as
the
4th
Biggest
Economic
Growth
in
Gas
Back
Bone
Pipeline
(Subang
Regency
–
BIJB) Indonesia.
Gas
Pipeline
Network
in
BIJB
&
BIJB
Aerocity Estimated
passenger
and
cargo
market
in
West
Java
in
2042
will
be
55,
506,748
(passenger)
&
73,611
ton
(cargo).
That’s
why
we
need
to
develop
new
international
airport
that
located
in
Majalengka
Aerocity
(1B) Regency
(61
km
from
Bandung
with
direct
Multimodal
Logistic
Hub Cisumdawu
Toll
Road
&
170
km
from
Jakarta
with
Aerospace
Park direct
Cikampek-Cipali
Toll
Road) Metropolitan
Cirebon
Raya
Clean
Creative
Technology
Center Water
Supply
System Airport
development
is
already
started
but
we
offer
Business
Park an
opportunity
to
invest
in
other
area
of
BIJB. Tourism
&
Hospitality

“Our mission is to provide World Class Airport Legok
Nangka
Solid
Waste
Treatment
and World Class Aerocity and
Disposal for West Java and to become The Best Gateway of Business and Tourism in Indonesia” 8 9