BELT AND ROAD INITIATIVE

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Cuthbert Watts
6 years ago
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1 BELT AND ROAD INITIATIVE Investment Opportunities in Northern Sumatra in by : Rusmin Lawin

3 , Indonesia is keen to be involved in B&R Initiative...

4 SPECIAL ECONOMIC ZONE (SEZ) SEI MANGKEI By : Managing & Developing Agent of SEZ Sei Mangkei PTPN III

In the future this SEZ will be also developed as a satellite city with supporting facilities such as dry port, hotel, golf court,

This SEZ is expected to be the main factor of the company to acquire sustainable added value.

29 in 2012, located in in Bosar Maligas sub-regency, Simalungun regency, North Sumatra province.

5 CORPORATE PROFILE Special Economic Zone Sei Mangkei (later stated as SEZ Sei Mangkei) is a business development approach in special zone for industrial center based on palm oil. In the future this SEZ will be also developed as a satellite city with supporting facilities such as dry port, hotel, golf court, hospital, apartment, residential and others. This SEZ is expected to be the main factor of the company to acquire sustainable added value. SEZ Sei Mangkei is one of Indonesia s first SEZ established by Indonesian Government Regulation No. 29 in 2012, located in in Bosar Maligas sub-regency, Simalungun regency, North Sumatra province. SEZ Sei Mangkei is divided become three zones namely : Industrial Zones, Logistic Zones and Industrial Zones. Industries that will be developed to focus on the processing of palm oil and rubber, as well as various industries. Simalungun Mayor Bill of Decision Number. : /193/BPPD/2013 which was about the appointment to the PTPN III as Development and Management Institution of SEZ Sei Mangkei.

8 Indonesia government has released Economic Policy Package VI related to facilities and easiness that are given to the investors in the Special Economic Zone : Fiscal Facilities No Scope Facility and Easiness 1 Income Taxes Main Activity (Tax Holiday) ~ Income tax reduction by % for years with total investment more than Rp 1 trillion ~ Income tax reduction by % for 5-15 years with total investment more than Rp 1 billion Exclude Main Activity (Tax Allowance) ~ Reduction of Net Income by 30% for 6 years. ~ Accelerated Depreciation Income tax on dividend fo 10% Compensation for loss of 5-10 years. 2 VAT and Luxury Sales Taxes Import : not levied Input from other places in the customs area to Special Economic Zone (SEZ), not levied Output from SEZ to other places in the customs area, not levied Transaction among enterprises in SEZ : not levied Transaction with enterprises in other SEZ : not levied 3 Customs From SEZ to domestic market : import duty using Certificate of Origin (COA) 4 Property Ownership for Foreigner Foreigners/foreign enterprises may have residential/property in SEZ (house site or apartment unit) Owner occupancy/property is given residence permit with a guarantee from Managing Enterprises of SEZ. Exempted for VAT and Luxury Sales Taxes 5 Main activity : Tourism Sector May be granted for tax reduction by % on the first development May be granted for entertainment tax reduction by %

9 Non-Fiscal Facilities No Scope Facility and Easiness 1 Employement In SEZ will be established wage council and Tripartite cooperation institution. Only one worker union in every company. Ratification and extension planning of foreign worker utilization in SEZ Permit extension using foreign workers in SEZ 2 Immigration Facility visit visa upon arrival for 30 days and can be extended five (5) times each 30 days Multiple visa valid for 1 year Residence permit for foreigners that have property in SEZ Residence permits for elderly foreigners living in SEZ tourism. 3 Land SEZ that is proposed by private enterprises, is given Building Using Rights and the extention is given directly with the process of granting rights. SEZ's Administrator can give land service. 4 License Administrators responsible for issuing licenses and permits through the principle of one stop service in SEZ. Permit publishing acceleration, not later than (in case of all requirements are completed). Implementation of the licensing and non licensing requirement compliance (check list). Process and completion of licensing and non-licensing of immigration, labor, and land on in SEZ's Administrator.

10 Infrastructure and Industries have been built in SEZ Sei Mangkei Office Building Palm Oil Mill Electricity Power Plant 2 x 3,5 MVA Palm Oil Innovation Centre Roads Palm Kernel Oil Mill Drainage 1. Office building 2. Water Treatment Plant (WTP) cap. 250 M3/hour. 3. Concrete road of ROW 28 and ROW Palm Oil Mill cap.75 Ton FFB/hour,, produced CPO as raw material for biodiesel industry, refinery industry and oleochemical industry. 5. Biomass Power Plant 6. Palm Kernel Chrussing cap. 400 Ton/day, produced CPKO as raw material for surfactant industry and fatty alcohol. 7. Electricity, IT Network&Telephone Cable Network. 8. Palm Oil Innovation Centre 9. Main drainage Special Economic Zone (SEZ) Sei Mangkei

11 Investment Opportunities in SEZ Sei Mangkei Industry Zone Logistic Zone (Supporting) Tourism Zone Oleochemical Dry Port Commercial Area Biodiesel Liquid Storage Center Golf Course Surfactant Warehousing Hotels & Club House Cattle Feeds Energy from POME Energy from EFB Papers Organic Fertilizer Rubber Industry Small & Medium Industry Intermoda Packaging Center Dried Waste Processing Water Treatment Plant Waste Water Treatment Plant (WWTP) Medical Center Exhibition Center Convention Center Recreation Area Sports Center Shopping Arcade Media Center

13 . I - Location DESTINATION PROFILE Province : North Sumatera Regencies : Samosir, Toba Samosir, Simalungun, Karo, North Tapanuli, Humbang Hasundutan, Dairi wonderful~ lndonesia-~ Highlights Lake Toba is the largest volcanic lake in the world and the second largest lake in the world after Victoria Lake in Africa. Lake Toba is one out of ten deepest lake in the world, reaching around 500 meters deep. Samosir Island in the middle of Lake Toba has area of 64,000 hectares or similar in size to the country of Singapore. Lake Toba was formed by three major eruption 900,000 years ago, 500,000 years ago, and 75,000 years ago. That caused historical records through the evolution of human, flora and fauna. There are total of 45 Geo-Sites within 4 Geo-Area. Those are Porsea Caldera, Haranggaol Caldera, Sibandang Caldera, and Samosir Caldera.

INVESTMENT OPPORTUNITIES Coordinative Area Include 7 Regencies Area: + 300.000 Ha Authoritative Zone (Sibisa) Loc.: Toba Samosir Regency Area: + 602 Ha Authoritative Zone (Flower Garden) Loc.

14 INVESTMENT OPPORTUNITIES Coordinative Area Include 7 Regencies Area: Ha Authoritative Zone (Sibisa) Loc.: Toba Samosir Regency Area: Ha Authoritative Zone (Flower Garden) Loc.: Humbang Hasundutan & North Tapanuli Regencies Area : Ha Greater Lake Toba C o o r d i n a t i v e A r e a Within Designated Development Area A u t h o r i t a t i v e Z o n e 1 Floating Jetty 6 International Hotel & Resort 1 International Hotel & Resort 6 2 Lake Cruise 7 International Hospital 2 Premium Golf Course 3 Sea Plane 8 Cultural Performance 3 Sustainable Energy Plant 4 Aerosport 9 Tourist Bus Service 4 Water Treatment Plant 5 Cable Car 10 International Event 5 Waste Water Treatment Plant 7 Waste Management Outdoor Elevator / Cable Car 8 Flower Garden 9 Farm / Agritourism : Production and Processing 10 Eco Theme Park

15 INVESTMENT OPPORTUNITIES Sibisa Authoritative Area Infrastructure Projects Road Network Project Underground Concrete Box Utility Waste Water Network Clean Water Network Green Area Irrigation Network Electrical, ICT and Gas Network Street Furniture and Landscape Features Other Landscape Facilities Supporting Facilities Pre-Operating Cost Estimated Cost (IDR) 241,963,323,000 82,301,900, ,296,721, ,399,072,000 30,963,068,000 19,409,072, ,380,713,000 81,925,227,000 9,960,159,000 60,486,681, ,629,692,000 Commercial Projects Project Estimated Cost (IDR) Hotel & Convention 11,320,000,000,000 Eco-Tourism Area 2,770,000,000,000 Commercial and Public 3,720,000,000,000 Facilities Residential Area 5,160,000,000,000 Total Investment 22,970,000,000,000 Total Investment 1,281,124,222,000

Special Economic Zone Sei Mangkei: Moving Towards Green Growth

Special Economic Zone Sei Mangkei: Moving Towards Green Growth 1 Foreword Green economic principles are now guiding the global development agenda. Indonesia is committed to fulfill the Paris Agreement