WESTJAVAPOTENTIALINVESTMENTOPPORTUNITIES ThisinformationmaterialdevelopaspartoftheRegionalOneStopServiceandInvestment Agency of West Java Province (DPMPTSP) endeavors in ensuring the attainment of advancingregionaldevelopmentthroughthepromotionofrelatedfieldopportunities. ItispurposedtonaturetheinvestmentcommunitycomprehensiononthestatusofWest Java Province competitiveness, and to promote investment cooperations between Wets Javaandthewolrdcommunity. PUBLISHEDBY: SumateraStreetNo.50,Bandung40115 DiponegoroStreetNo.21,Bandung40115 (022)4237369Fax:(022)4237081 www.dpmptsp.jabarprov.go.id [email protected] WEST JAVA POTENTIALINVESTMENTOPPORTUNITIES 2017 WestJava MetropolitanCirebonRaya LegokNangka InternationalAirport(BIJB) CleanWaterSupplySystem SolidWasteTreatment dinaspmptsp.jabar dinaspmptsp.jabar dinaspmptsp.jabar SupportingFacilities&Aerocity &Disposal “WEST JAVA POTENTIAL WESTJAVA INVESTMENT INDONESIAN ” OfficeAddress: Regionalonestopservice&investmentagencyofWestJavaProvince SumateraStreetNo.50,Bandung40115&DiponegoroStreetNo.21,Bandung40115 (022)4237369Fax:(022)4237081 www.dpmptsp.jabarprov.go.id [email protected] WEST JAVA ProfileOverview ADMINISTRATIVE Governor :H.AhmadHeryawan ViceGovernor :DeddyMizwar CapitalCity :BandungCity Regencies :18Regencies Cities :9Cities GEOGRAPHIC LEGOK NANGKA Area :35.222.18Km2 SOLID WASTE Coordinates :6’45’S107’30’E TREATMENT Topography :Lowlands,Mountains,&Coasts AND DISPOSAL CAPITALCITYOFWESTJAVA ThecityofBandungastheprovincialcapital,Bandungis 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. conferenceforgingofthenonalignedmovement 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 :CentralJavaProvince TROPICALCLIMATETEMP RAINFALL Land 74.6 Ha (2011) - Recovery Facilities (MRF) 9°C-to34°C 2,000mm–5,000mm/year Access Road (2013) - Waste to Energy Plant West :Banten Operation Road (2015) - Pre and Post Treatment North :JavaSea&Jakarta South :IndianOcean Sanitary Landfill (2015) $220 Leachate Treatment (2015) Common Buildings (2016) MILLION WESTJAVAADMINISTRATION&BORDERS ON 2015 RELIGION ETHNIC ItsproximitytoJakartaprovideWestJavawithnumber 46.709.569 79% MOSLEM 79% SUNDANESE ofstrategicadvantages,especiallyinthetransportation SOUL 3% OTHER 21% OTHER and communication espect that stimulate economic growthforpeoplelivinginWestJava. LANGUAGES 18REGENCIES&9MUNICIPALS 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,&WestBandung. 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 WESTBANDUNGREGENCY PANGANDARANREGENCY CIREBONREGENCY BEKASIREGENCY TASIKMALAYACITY MAJALENGKAREGENCY CIREBONCITY BEKASICITY SUMEDANGREGENCY KUNINGANREGENCY CIMAHICITY BANJARCITY SUKABUMIREGENCY KARAWANGREGENCY CIANJURREGENCY BANDUNGREGENCY BANDUNGCITY SUKABUMICITY INDRAMAYUREGENCY CIAMISREGENCY SUBANGREGENCY GARUTREGENCY BOGORREGENCY PURWAKARTAREGENCY DEPOKCITY BOGORCITY 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 InQ1-2017,economicgrowthinWestJavawasrecordedat5.24%(yoy).Thoughsuchgrowthwasslightlylowerthan MARGIN TOLL FEE EST. PAYBACK PERIOD COLLABORATION SCHEME thepreviousquarter(5.45%),itwashigherthantheNationalgrowthinQ1-2017(5.01%).Basedonhistoricaldata, WestJavaeconomicgrowthwillsignificantlyimproveinQ3oftheyear. 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 GasEngine/TurbinewithCo-Generation(cooling/heating) powerplantdevelopmentisintendedtosupportBIJB,BIJBAerocity andothersupportingfacilitiesoperationalactivities. INVESTMENT VALUE LocalPartner: 731.5 PT.BIJB(WestJavaProvinceOwnedCompany) MILIAR RUPIAH PT.EnergiNegeriMandiri(WestJavaProvinceOwnedCompany) 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