Growing Opportunity for Cucumis (Musk Melon) and Big Hot Chili Bekasi Utara, Jawa Barat.

In cooperation with Investor

There is an amazing opportunity of available five hectares and even more of land in Bekasi Utara. Land rent price is very reasonable Rp 2,000,000 per hectare per cropping season. Soil type is sandy loam, is dark in color, and very fertile. The climate fits for many short season fruits and vegetables and horticultural products. This piece of land is used for one season rice cropping in a year and the rest of year can be immediately rented for horticultural production to begin in early September 2012. Water supply for irrigation Although the soil looks dry in the surface area but the water table in this area is high. Farmers dig 1 meter they can easily get ground water enough to water their crops, please see the picture below of dug out well. We can supply our water needs as we plan to drill few wells and pump the water out for irrigation. This typical area will have enough water for irrigation all year around, which makes this land area cultivable for the crop we deem potential to have high productivity and high market value alike. The shallow well, 1 meter deep dug-out well, great for irrigation source of water during the dry season.

Choices of Crops With market value and agronomical considerations our choice of crops narrow down to 2 types of crop i.e. Blewah or Cucumis and Melon and Big Chili Agrita and Sukma, seeds produced by Tiga Daun seed company. 1. Cucumis/Blewah - Melon Blewah and other types of Melon is best grown during the dry season of the year. Those planted during the dry season also have sweeter if compared to those planted during the wet season. Retail price of Blewah is between Rp 7,000 – Rp 8,000 per KG, I think it is fair to expect wholesale or farm gate price at Rp 3,000 to Rp 4,000 per KG. Average productivity mentioned by the seeds company is 35 Tons per hectare, when we checked with farmers who experienced the Blewah planting they said it is common to collect Blewah harvests between 30 Tons to 45 Tons per hectare, it seems we could always expect for the better.

Blewah and Melon are fruits rich in vitamin C, fiber and Kalium is very popular in Indonesia for ingredients to make Fruit soup, which is a ‘tuti fruti’ drink with syrup and sweetened condensed milk. In Jakarta area people can find thousands of these “Sop Buah” vendors all over the place. And our planting location is inside the Greater Jakarta area (Jabodetabek) home of 28 million people, as if we grow these commodities right on the market place. A true advantage we have from other producer from far away location.

We can combine Blewah with other type of Melon that has potentially higher market value like Rock Melon and Golden Melon.

Melon sells pretty well between Rp 15,000 to Rp 20,000 per KG retail. Their productivity level ranges from 35 Tons to 45 Tons per hectare. We could expect wholesale price at least Rp 6,000/KG, the higher the better. Big Chilies Big Chili especially varieties “Agrita” and “Sukma”; fits for low-land planting area to about 600 meter above sea level. Fruit are green when young and red when ripe; both fruits have good market values.

Big Chili productivity range is between 25 Tons to 35 Tons per hectare. Harvest time began 75 – 88 days after planting. If we begin day one of September, then by the end of October we could begin harvest the Big Chili We specially chose varieties “Agrita” and “Sukma” for their high productivity and resistance to various pest and diseases that potentially reduces the production capacity. In summary we plan to grow the following different types of horticultural commodities and financial calculation as described in the table below: Commodity Land Area Production Blewah/Cucumis 1 hectare 35,000 KG Melon (Rock, Golden) 1 hectare 25,000 KG “Agrita” Big Chili 1 hectare 25,000 KG “Sukma” Big Chili 1 hectare 25,000 KG Projected Potential Revenues Working Capital investment needed Average Capital investment per Hectare Invested capital return to investor by December 2012 Projected Profits Split profits 50-50 investor – operator Split profits 50-50 investor – operator per Hectare Price per KG Rp 3,000 Rp 6,000 Rp 10,000 Rp 10,000 Revenue Rp 105,000,000 Rp 150,000,000 Rp 250,000,000 Rp 250,000,000 Rp 755,000,000 Rp 113,800,000 Rp 28,450,000 Rp 113,800,000 Rp 641,200,000 Rp 320,600,000 Rp 80,150,000

All the numbers above are derived from the attached Costs-benefits calculation spreadsheet. Please follow on the spreadsheet page below. We need working capital in the form of investment from investor an amount of 114 million Rupiah (US$ 12,000) for 4 hectares or 28.5 million Rupiah or equivalent to US4 3,000 for one hectare planting investment; in the end December 2012 we will return the invested money we used as working capital to the investor, plus Investors will also receive the split profits 50-50 (computed after capital return to investor); for big Chili will need one month longer. This way Investors will make a risk-free investment with us. All we need from you is to act timely so we will catch up with the current climatic situation and able to respond to this great and timely opportunity. Your immediate response on this Business plan proposal is highly appreciated so we could immediately begin and take the best advantage of this dry season and the available land for rent and roll into production process immediately. We look forward to creating this great horticultural production opportunity and hope for the most profitable business cooperation with you. Cikarang,September 10, 2012,

Elias Tana Moning CV Outreach International

Costs Benefits of Growing One Season Cucumis and Big Chili Agrita CV Outreach International - Location Cikarang Utara September 2012 - December 2012

Growing Big Chili type Agrita and Sukma Land rent for one cropping season Land Preparation Silver plastic mulch Quality seeds Fertilizer d l t t ti F tili and plant protection Labor for 2 persons Rp 60,000/Day for 3 months 2,400,000 Harvest costs and transport Cost per HA Big Chili 1 Cost for 2 HA 2 Projected Selling Price of Big Chili IDR 10,000 Projected minimum production /HA 25,000 25 000 Revenue Potentials Big Chili per HA Revenues from 2 HA Big Chili 2 Growing Blewah (Cucumis or Musk Melon) Land rent for one cropping season Land Preparation Quality seeds y Fertilizer and plant protection Labor for 2 persons Rp 60,000/Day for 2.5 months 2,400,000 Harvest costs and transport Cost per HA Blewah-Melon 1 Cost for 2 HA 2 Projected Selling Price of Blewah IDR 3,000 Projected S lli P i P j t d Selling Price of Melon fM l IDR 6,000 6 000 Projected minimum production /HA 35,000 25,000 Projected minimum production Melon /HA Revenue Potentials from Blewah Revenues Potentials from Melon Management and other operational Costs Total Growing Costs Average Investment Per Hectare Working Capital needed from Investor by September 2012 Revenues from Sales Capital to be returned to Investor in December 2012 Projected Net Revenues after Capital returned Projected Split profits 50-50 investor – operator of 4 Hectare j
Projected Split profits 50-50 investor – operator per 1 Hectare

Rp

US$ $216 $216 $108 $162 $162 $1,557 $324 $2,746 $5,492

/Month HA HA /KG KG HA

2,000,000 2,000,000 1,000,000 1,500,000 1,500,000 1 500 000 14,400,000 3,000,000 25,400,000 50,800,000

250,000,000 500,000,000 2,000,000 2,000,000 1,000,000 1,500,000 12,000,000 3,000,000 21,500,000 43,000,000

$27,027 $54,054 $216 $216 $108 $162 $1,297 $324 $2,324 $4,649

/Month HA HA /KG /KG KG KG

105,000,000 150,000,000 20,000,000 113,800,000 28,450,000 113,800,000 755,000,000 113,800,000 641,200,000
320,600,000 80,150,000

$11,351 $16,216 $2,162 $12,303 $3,076 $12,303 $81,622 $12,303 $69,319 $34,659 $8,665

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