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NORTH SUMATRA
INVESTMENT BOOK
About Us Our Mission
Providing
Providing Investors with the necessary data
and information
North Sumatra Invest (NSI) is a dedicated task force
comprised of all North Sumatra’s policy makers,
including the Government of North Sumatra and Bank Promoting
Promoting the right investment
Indonesia, with full cooperation of Kamar Dagang dan opportunities and projects
Connecting
Our mission is to attract Foreign Direct Investment (FDI) Connecting investors with the right business
contacts
in North Sumatra to foster economic growth.
Indonesia’s Strong Performance
01
CONTENT Indonesia is one of the fastest growing economy in the world. Find how
we perform relative to our peers.
Licensing in Indonesia
04 A quick guide on getting business license in Indonesia. It’s never been
easier to do business here.
Key Contacts
05 Who to contact if you want to invest and grow your business in North
Sumatra?
1
INDONESIA’S STRONG
PERFORMANCE
Indonesia’s Strong GDP Growth Solid national economic growth
| % year-on year & % quarter-to-quarter
The national economy expanded 5.05%
(yoy) in the second quarter of 2019. The
QoQ YoY
7.0
latest economic developments were
influenced by increasing domestic demand
5.12
4.94 4.93 5.05
4.82 4.74 4.77
5.17
4.92
5.18
5.01 4.94 5.01 5.01 5.06 5.19 5.06 5.27 5.17 5.18 5.07 5.05 against a declining external sector.
5.0
4.01 4.21 4.20
3.83 4.01
3.74
3.27 3.31 3.14 3.19
3.09 Institutions 2019 Growth (YoY)
3.0
(2.07)
(1.73) (1.81) (1.70) (1.69)
World Bank 5.2
-3.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 ADB 5.2
2014 2015 2016 2017 2018 2019
Consensus Forecast 5.0
(October 2019)
5
Our concern to Business Ease of Doing Business
| Index, The Higher The Better
Business has never been easier in
Indonesia. In recent years, our 0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
BBB / Stable
Baa2 / Stable
Apr 2018, Baa2, Rating Upgraded
“The upgrade to Baa2 is underpinned by an increasingly
credible and effective policy framework conducive to
macroeconomic stability. Together with a build-up of
financial buffers, prudent fiscal and monetary policy
strengthens Moody’s confidence that the sovereign’s
resilience and capacity to respond to shocks has improved.”
31.31
31.27
31.78
34.47
34.52
34.55
23.61
22.48
23.14
26.94
27.21
29.56
24.99
24.95
25.31
26.57
26.34
26.26
Philippines 31.9 5
South Korea 26.3
0
Taiwan 25.2
Myanmar
India Indonesia Malaysia Philippines Thailand Vietnam
22.5
2018 2019e 2020e
0 10 20 30 40 50 60 70
UNCTAD: Indonesia is listed in the top 20 host economies based on FDI inflows, JBIC: Among ASEAN countries, Indonesia is the most preferred place for business
2017 and 2018 (June 2019)3 investment (November 2018)4
300
China 52.2
250 India 46.2
2018 2017 Thailand 37.1
200 Vietnam 33.9
Billion USD
Indonesia 30.4
150 US 28.8
(x) = 2017 ranking Mexico
100 13.7
Philippines 10.0
50 Myanmar 8.6
Malaysia 8.4
0 Germany 5.8
Brazil 5.6
Korea 5.1
Taiwan 4.4 % of surveyed who consider each country has promising prospects
Russia 3.7
1. Source: The Economist – Asia Business Outlook Survey 2018 3. Source: United Nations Conference on Trade and Development (UNCTAD) – World Investment Report 2019
2. Source: IMF World Economic Outlook, Database April 2019 4. Source: JBIC – Outlook for Japanese Foreign Direct Investment (30th Annual Survey)
2 WHY
NORTH SUMATRA?
Governor : Edy Rahmayadi
PROFILE Vice Governor : Musa Rajecksah
Capital City : Medan City
Regencies/Cities : 25 Regencies and 8 Cities
North Sumatra Province is
GRDP HDI geographically positioned between
2018 %share to national 2018
1° - 4° North and 98° - 100° East.
5% 71.18% Geographic Advantages
Top 7 biggest province Categorized as high
by economic comparison
Located in the vast and
prosperous area of Sumatra
EXPORT POPULATION island, with total area of 73.000
%share to national 2018
km²
4.49% 14.42m It is strategically positioned along
the Malacca Strait and has long
Jan – Sep 2019 The 4 th most populous
Province in Indonesia been a major trade center in west
Indonesia.
INFLATION A MILLENIAL
%yoy
PROVINCE ROOM FOR NEW BUSINESS
2.84% Half of North Sumatra
population is under 25 years
With 71% employment rate, North Sumatra will
support new business with adequate human
Oktober 2019 old. resources
Note
Note::amounts
amountsin
inparentheses
parentheses indicate
indicatesectors
sectorsdistributions
distributions of
ofGRDP
GRDPat
atconstant
constantmarket
marketprice
pricein
inthe
thefirst
thirdquarter
quarterofof2019
2019
Economic Growth of All Provinces in Sumatra National, Sumatra, and North Sumatra Economic Growth
(%,yoy)
5.80
Aceh (5%)
Riau (22%) 5.60
5.25
3.76% Kep. Riau (8%) 5.40
2.74% 5.11
4.89% 5.20
North Sumatra (23%) 5.00
5.11% Jambi (6%) 4.80 5.05 5.02
West Sumatra (7%) 4.31% 4.60
4.40 4.62 4.49
5.16% Bangka Belitung (2%)
Bengkulu (2%) 3,05% 4.20
4.95% 4.00
Lampung (11%) South Sumatra (14%) I II III IV I II III IV I II III IV I II III
5.16% 5.67% 2016 2017 2018 2019
FDI/DDI : FDI/DDI : TOP 5 SECTORS BASED ON FDI VALUE TOP 5 LOCATIONS BASED ON FDI VALUE
Rp. 33,91 T Rp. 18,78 T 1,348.97
Deli Serdang 308.89
REALIZATION 587.69
Mandailing Natal 499.31
351.02 345.97
8,000
Batu Bara 518.73
7,000
Services Electricity, Food Mining Chemical
Medan 1,918.76
6,000
Gas and Industries Industries
Water
5,000
TOP 5 SECTORS BASED ON DDI VALUE TOP 5 LOCATIONS BASED ON DDI VALUE
Rp. Triliun
4,000
4,256.26
0 950.18
TW I TW II TW III TW IV TW I TW II TW III
Batu Bara 2,594.81
2018 2019
PMDN 2,122 1,618 3,095 1,537 4,356 4,325 5,608
PMA 3,259 3,607 4,176 5,408 1,197 1,597 1,696 Transportation, Plantation Food Industries Construction Other Services Medan 3,490.64
Storage, and
TOTAL 5,381 5,225 7,271 6,945 5,553 5,922 7,304 Telecommunication
Airports
Lasondre Airport – Batu Islands
Binaka International Airport – Gunung Sitoli
Kualanamu International Airport – Deli Serdang
Soewondo Air Force Base – Medan
Aek Godang Airport – Padang Sidempuan
Ferdinand Lumban Tobing Airport – Sibolga
Sibisa Airport – Simalungun
Siangit 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 )
3
POTENTIAL PROJECTS
POTENTIAL PROJECTS
AND
& TOURISM POTENTIAL
TOURISM POTENTIAL
NORTH SUMATRA INVESTMENT PROJECT
Total Area / Land Status 1933,80 Ha/Rights to Manage and Build (HPL)
IMAGE/
Main Activities Rubber & Downstream Industries
Various Industry
Project Description
PROJECT’S OWNER PROFILE:
• Sei Mangkei is an industrial area located in the center of raw materials based on PT Perkebunan Nusantara III (Persero) makes oil and palm kernel as the main commodities that
agro that are not owned by other industrial area in Indonesia. make a major contribution to the company's revenue. The oil and palm kernel products produced
by the oompany are well known in the local and international markets such as Crude Palm Oil
• SEZ Sei Mangkei is divided to 3 zones : (CPO), Palm Kernel Oil (PKO), Palm Kernel (PK) and Palm Kernel Meal ( PKM).
PT. PERKEBUNAN NUSANTARA III is in charge to develop and manage SEZ Sei Mangkei .
✓ Industrial Zone : Palm Oil Downstream Industry Zone (oleochemical, refinery,
biodiesel), Rubber Downstream Industry Zone, Production Supporting Facilities,
Various Industry Zone (electronic, electricity), Small & Medium Industries.
Contact Person:
✓ Logistic Zone : Dry Port, Tank Farm, Warehousing, Packaging. Yenni Fransiska Simangunsong (Marketing Officer)
✓ Tourism Zone : Hotel, Golf Course, Commercial Area, MICE (Meeting, Incentives, Mobile: +6281264992088 Email: pnp@email.ptpn3.co.id
Convention & Exhibition). Widoyoko (Operational Manager)
Mobile: +628126227061 Email: widoyoko.tk@gmail.com
NORTH SUMATRA INVESTMENT PROJECT
PROJECT’S
Project Owner PT Pelindo I
Processing Industries
IMAGE/
Main Activities
LOCATION
IMAGE Project Status
1) Land Acquisition is on progress
2) Existing Industries : Inalum (Aluminium & Derivative
Industry), PT Wilmar (CPO), PT Bakrie (CPO).
Project Description
• Kuala Tanjung Industrial Zone is intended for processing industries such as : PROJECT’S OWNER PROFILE:
PT Pelindo I is a leading port service provider in Sumatera. It operates 24 ports
✓ Petroleum and has a strong footprint in Aceh, North Sumatera, Riau and Riau Islands.
✓ Liquified Natural Gas
PT. PELINDO I is in charge to develop and manage Kuala Tanjung Industrial
✓ Automotive Zone.
✓ Elctricity
✓ Palm Oil Contact Person:
Asih Kurnia
✓ Aluminium
(Stakeholder Manager)
✓ Rubber Mobile: +6281585671500 Email: akurnia@pelindo1.co.id
✓ Cement © 2018 by Indonesia Investment Coordinating Board. All rights reserved
NORTH SUMATRA INVESTMENT PROJECT
PROJECT’S
Project Owner PT Pelindo I
Self Generating Cargo Port
IMAGE/
Main Activities
Sectors Transportation
Utilities &
-
Infrastructure
The integrated Light Rail Transit (LRT) and Bus Rapid Transit (BRT) scheme is the Project Status Managed by Mayor of Medan City
government’s solution to it and will become an important infrastructure to the city.
NORTH SUMATRA OPPORTUNITIES
dr PIRNGADI HOSPITAL
Location Medan City
Land ± 38.300 m2
Utilities &
-
Infrastructure
* Still indicative. Further details can refer to the tender document at the next stage.
NORTH SUMATRA INVESTMENT POTENTIAL
Land ± 300.000 m2
Sectors Tourism
Utilities &
-
Infrastructure
As the capital of North Sumatra, Medan city develops economically. Its 2,2 million
people need various of entertainment. One of them is Medan Zoo, which has become
attraction for visitors.
POTENTIAL
GEOTHERMAL
POWER PLANT Location Current Condition Capacity
CAPACITY
1370 MW
▪ Sarulla & Existing/Expansion 660 Aek Bilah River, Batang Oru River,
Sibual buali Tapanuli Selatan Tapanuli Utara
▪ Sibayak/Lau Existing/Expansion 160 POTENTIAL
50 MW 155 MW
Debuk- HYDROELECTRIC Aek Bilah River,
POWER PLANT
debuk CAPACITY Tapanuli Utara
▪ Sorik Marapi High Possibility 500 307 MW 40 MW
Lalu Biang, Piasa,
▪ Sipoholon Low Possibility 50 Karo Asahan
46 MW 16 MW
Current electricity supply in Pangkalan Susu, 2300 MW.
Future need in 2025, 5800 MW
Energy investment potential:
▪ Asahan Hydro Power Plant III
▪ Sumbagut Power Plant II (250 MW)
Potential
▪ Batang Toru Hydro Power Plant (510 MW)
▪ Biomas Power Plan
Investment in
▪ Solar Power Plant
renewable energy
Subsidy and incentives for SEZ
Income Tax Labor N
• Tax holiday for investment >Rp 500bn •
F
Dedicated wage council
• Tax allowance of 30% from NI
• Faster depreciation allowed
•
•
One Labor Union allowed
Better regulation for expat workers
O
I VAT Immigration
N
S
• No VAT for import
• No VAT for transactions with
•
•
Visa on arrival for 5 visits
Multiple visa for 1 year F
tenant in Sei Mangkei •
C
Living permit to owners of property
I
Foreigner Property Right Land Regulation
• S
A
• Foreigners can own property Rights to build permit
• Owner of property can get living permit • Easier process for land permit
C
L Tourism Sector
Licensing
• 3 hours licensing
A
Deduction between 50-100% for construction • All licensing can be done through SEZ
and entertainment tax administrator
L
1 6
6
Pantai Muara Opu Tangkahan
South Tapanuli Regency 5 Langkat Regency
2 5
2
3 4
Orang Utan Batang Toru Silahi Sabungan
South Tapanuli Regency 1 Dairi Regency
3 4
Potential Mursala Island Poncan Island
Tourism Site
Central Tapanuli Regency Sibolga City
25
The Home of
Turtles
Muara Opu Beach
With 14 km shore
length, Muara Opu
beach is home for
thousands of turtles
to breed once a
year. And at that
majestic moment,
the experience is
breath taking.
26
The Oldest
Orang Utan
Batang Toru Forest
Batang Toru
forest is home to
one of the oldest
orang utan, the
Pongo
Tapanuliensis,
which currently
only 800 still
exist
27
The King Kong Island
Mursala Island
Due to its awesome scenery and authentic
wilderness, Mursala Island is famous as
the place for the shooting of King Kong
movie (2005)
28
“The Island”
Poncan Island
Imagine an island
with a beautiful
landscape, and a
blue ocean. Where
the water so clear
you can see
everything
underneath. That’s
exactly what
Poncan Island
offers you.
29
Blending In
Silahi Sabungan
Obtain investment licence at OSS at • Survey a land within selected • Start the construction of your project. No
national or regional level. industrial estates. other permits are required.
• Acquire the land for your industry. • Apply for building construction permit &
environmental permit, in parallel with
construction process.