PRIORITY INVESTMENT PROJECT IN RIAU PROVINCE 2015

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PRIORITY INVESTMENT

PROJECT IN RIAU PROVINCE 2015

GEOGRAPHIC

wide area : 8.915.016 hectare Located : 01 05’00 LS - 02 25’00 LU

and 100 00’00 BT-105 05’00 BT

RIAU BORDERS

North : Malacca Strait and North Sumatera Province Area South : Jambi Province and West Sumatera

West : West Sumatera and North Sumatera East : Malacca Strait and Kepulauan Riau Province

CLIMATE: TROPIC

Rain Fall : between 1700-4000 mm per year air temperature : average 16,0 celcius

with maximum temperature 35,1 and minimum temperature 21,8 celcius

TRANSPORTATION

Air : around 2 hours from Jakarta Land : road long 4.167,78 km 302 concrete bridge 474 composite bridge 85 wood bridge 151 truss bridge

Population : 5.538.367people

MAP OF RIAU PROVINCE

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Table of Content

2015

PRIORITY INVESTMENT PROJECT IN RIAU

PROVINCE

MAP OF RIAU PRWOVINCE

TABLE OF CONTENTS 1

MESSAGE FROM HEAD OF PROMOTION AND INVESTMENT

BOARD RIAU PROVINCE 2

MESSAGE FROM GOVERNOR OF RIAU PROVINCE 3

INFRASTRUCTURE SECTOR 4

The Development of Railway System in Riau Province 4 The Development of Pekanbaru-Dumai Toll Road in Riau Province 6

DOWNSTREAM INDUSTRY SECTOR 8

The Development of Downstream Industries (CPO and Rubber)

in Riau Province 8

INDUSTRIAL PARK SECTOR 11

The Development of Dumai Industrial Park. 11

The Development of Tanjung Buton Industrial Park and Harbour 14

The Development of Kuala Enok Industrial Park 17

The Development of Tenayan Raya Industrial Park 19

ENERGY AND MINING SECTOR 22

The Development of Power Plants 22

The Development of Cement Industry in Rokan Hulu 24

TOURISM SECTOR 26

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from Head of

Promotion and

Investment

Board – Riau Province

T

he commitment of Riau Province Government to continually improving the quality of service and for investors and business circle particularly pertaining to provision of adequate informative materials in the form of data on business as well as investment potentials and opportunities in Riau Province has been our prime motivation in preparing this book titled “Priority Investment Project in Riau Province 2015 “

Riau Province is a region which has variety natural resources such as crude palm oil (CPO), rubber, coconut, pulp, paper and many other potential commodities. Riau Province has high mobility of public activity and is also an area with new economic growth. The position and strategic location of Riau Province which located in the central area of the busiest international shipping lane of Malacca Straits in Asia Pacific and also share borders with several neighboring countries : Malaysia and Singapore, makes Riau Province able to anticipate a growing and increasing Regional Capital.

The Government of Riau Province always give the best effort in providing many facilities and benefits for the potential investors by providing more accurate information and data’s about potential investment opportunities in Riau which is summarized in this book. It is presented the basic information of some potential investments spread all over regency / municipality region that available for investment and business activities.

As the head of the Investment and Promotion Board of Riau Province, I would like to express that our office is ready for the service and assistance to facilitate any parties interested to undertake business as well as investment activities in Riau, cooperating with us in a mutually beneficial scheme to build the region, under the concept of sustainable development.

We are greatly appreciate to all supportive parties in the set up of this book, “Priority Investment Project in Riau Province 2015 “. We hope our work and creation would be a part of the effort in building up the prosperity of our beloved Riau Province.

Warmest Regards,

Drs. Ismaili Fauzi

Head of the Investment and Promotion Board of Riau Province

PRIORITY INVESTMENT

2

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R

iau Province is a regional which has variety natural resources of high economic value such as oil, CPO, rubber, paper, pulp and many other potential commod -ities. Riau Province has high mobility of public activity and is also an area with new economic growth. The position and strategic location of Riau Province which located in the central area of the busiest international shipping lane of Malacca Straits in Asia Pa -cific and also shares borders with several neighboring countries : Malaysia and Singapore, makes Riau Province able to anticipate a growing and increasing Regional Capital.

Riau Province contributes to economic activity after global crisis with creating Condu -sive Investment Climate which, hopefully able to support Domestic Investment Activity and Foreign Investment Activity by creating The Formation of Coordinating Team for the strengthening of investment climate in Riau Province, sosializing of Investment Rules, establishing Investors Complaint Board in order to lessen the complications for investors in Riau.

I do hoped this book entitled” Priority Investment Project in Riau Province 2015 “ will serve a sufficient and useful information for the prospective investors. The most important thing is that the Government of Riau Province has been ready and committed to rendering the investors who will do investment activity in Riau Province.

Finally, I warmly invite all interested parties to seize these opportunities and invest in Riau Province. Thank you for all participants who has given the best support in promoting and investment in Riau Province.

Best Regards

Ir Arsyadjuliandi Rachman, MBA

Plt Governor of Riau Province

from Governor

of Riau Province

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PROJECT DESCRIPTION

Riau Province is blessed with abundant natural resources, strategic location at the in -tersection of the Malacca Straits and new centre of economic growth. The Provincial Government of Riau realizes that the development of the Railway system in Riau is very important, strategic and feasible.

This project will be implement through the adoption of a new railway between Dumai – Duri and Rantau Prapat (North Sumatera Province). The development of a new railway system in these areas will bring positive impact to accelerate the realization of Trans Su -matera Railway, the development of the Coal Industry in Central Su-matera and support the regional cooperation, such as : IMS-GT and IMT-GT. In addition, the development of railway is also aim to provide mass transportation is cheap and efficient.

The purpose and goals of this project :

1. Making available the railway system in Riau Province and integrating into Sumatera Rail -way.

2. Transporting the regional potentials safety, less expensively, fast, timely and simultane -ously economizing the fuel.

3. Reduce road damage caused by road transport vehicle that exceed the carrying capacity of existing roads in Riau Province.

4. Enhance the smooth transportation flow particularly the goods transportation to the outlet of Dumai harbour. Goods transportation potentials through 2010 estimately as follows :

1. LOCATION : RIAU PROVINCE

2. PROJECT OWNER : THE GOVERNMENT OF RIAU PROVINCE 3. PROJECT CLASSIFICATION : INFRASTRUCTURE

The Development of Railway System

PEKANBARU – DUMAI – RANTAU PRAPAT

FOTO/INTERNET

PRIORITY INVESTMENT

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FINANCIAL ANALYSIS :

The estimated project costs and project operational

revenues is :

l Total Project Cost : US$ 684,423,754

l IRR : 10.21 %

l Total Cash Flow : US$ 9.761.885,700

Calculation and projection provided in the previous sections show that a new railway system for Riau between Dumai and Rantau Prapat is reasonably feasible.

l B & C ratio : 105.467297%

l Cash flow surplus of USD 9.6 bilion after 40 operational years.

Non operational revenues (e.g. stations and train restaurants) are not included. Based on the available information, total quantified benefit of passanger and freight transports until 2050 are calsulated as : l Total Bene : US$ 721.843.239,14 l Total Project Costs : US$ 684.423.754 l Benefit & Cost Ratio : 105.467297 %

Financial Highlights for Rokan IV Koto-Dumai (230 Km) l Total Investment : US$ 382.881.360

l Benefit Cost Ratio : 1,98

l IRR : 8,29 %

l Payback Period : 15 Years

Financial Highlights for Cerenti-Kuala Enok (225 Km) l Total Investment : US$ 394.654.304 l Benefit Cost Ratio : 2,11

l IRR : 8,87 %

l Payback Period : 14 Years

Competent Official

: The Government of Riau Province

Head of the Transportation Agency of Riau Province

Jl. Jend. Sudirman No. 474 Pekanbaru

Phone

: +62-761-33992

Fax

: +62-761-33992

Role of Regional Administration:

The Government of Riau Province offers the following as incentives :

1) Land acquisition processing and cost.

2) Local regulation on good/cargo transportation obligating companies transporting goods/cargoes in huge/bulky volume to use train.

3) Offering land concession within the premise of Industrial Parks in Riau Province.

4) Compensation project (besides the above incen -tives, the following projects are also offered as accompanying compensation for the Riau Railway project) :

• Coal Mining Concession, either through joint-ven -ture with existing concessionaires or tender for new concession. The coal characteristic is of 5000-7000 cal.

• Cement factory/industry development, relying on limestone deposit available for 250 years. • Tourist resort development in nothern coast of

Rupat Island, located right facing the Malacca straits.

Model of investment : Build, operate and

transfer (BOT)

Status of project :

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PROJECT DESCRIPTION

Riau Province has abundant resources that are potentials to be developed for business and investment purposes. Riau has a strategic location at the intersec -tion of the Malacca Straits and new centre of economic growth.

As the result of fast economic growth and business the development, several cities have grown as new centeres of trade, industry, services and other invest -ment activities : Pekanbaru (capital city). Dumai (oil processing and hub port of Riau mainland), Perawang (wood processing center), Duri(oil mining and process -ing center), Pangkalan Kerinci (CPO, Pulp and Paper process-ing center).

To accelerate growth, Riau is to be developed into 3 development zones, each with a main port as the center of growth and distribution, Dumai ( the hub-port of Northern Development Zones), Tanjung Buton (central development zone) and Kuala Enok (Southern Development Zone).

Riau requires the availability of a smooth and fast tranportation facilities to provide easy link between cities and centers of resources and products as well as hinterland areas to centers of distribution in order to support and accomodate the fast growing economy and business activities.

The axistance of new highway (toll road) to provide better support for the processing and utilization of Riau rich natural resources is urgenty required . Length of road and Regions traversed is 135,4 km: traversing across Pekanbaru Municipality, Siak Regency, Bengkalis Regency and Dumai Municipality.

The Development of Pekanbaru-Dumai

TOLL ROAD IN RIAU PROVINCE

1. LOCATION : RIAU PROVINCE

2. PROJECT OWNER : THE GOVERNMENT OF RIAU PROVINCE 3. PROJECT CLASSIFICATION : INFRASTRUCTURE

PRIORITY INVESTMENT

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INFRASTRUCTURE

SECTOR

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PROJECT ANALYSIS :

a. Construction Package : - Section (RAMP) I : Pekanbaru-Kandis = 46.199 Km - Section (RAMP) II : Kandis-Dumai = 89.144 Km

- Total Length = 135.343 Km

b. Traffic Projection:

Estimated Growth in Pekanbaru-Dumai Traffic is 65 % per year

Existing ramp of Pekanbaru-Dumai is 199.65 Km, with the speed 45-55 Km / Hour, driv -ing time 3.5-5 hour.

With the Toll Road Lenght of 135.34 Km, the speed ranging from 90-100 Km and driving time 1.5 hour.

c. Toll Tariffs :

YEAR CLASS I CLASS II-A CLASS II-B TOTAL (Vehicle) (Vehicle) (Vehicle)

2009 4,087 0,951 3,908 8,946 2010 4,905 1,141 4,690 10,736 2015 6,631 1,543 6,340 14,514 2025 13,264 3,087 12,683 29,034 2035 21,776 5,067 20,823 47,666

  

Class I Rp. 310/Km Class II Rp. 465/Km Class II B Rp. 620/Km

    

FINANCIAL ANALYSIS :

• Land Acquisition : IDR 475 Billion • Investment Cost : IDR 8.45 Trillion

• IRR : 15.40 %

• NPV : 53.40 Billion • Concession : 50 Years

ROLE OF REGIONAL ADMINISTRATION:

The Government of Riau Province offers the following as incentives : 1) Land acquisition is processed and bom by the government of Riau

Province and the local government (right of way marking has been done : payment for land compensation to the land owners is on

going).

2) Facilitation to process permits/licenses by the government of Riau Province.

Model of Cooperation : Build, operate, tranfer (BOT)

Competent Official

: The Government of Riau Province.

Head of the Transportation Agency of Riau Province

Jalan Jend.Sudirman No.474 Pekanbaru

Phone

: +62-761-33992,

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The Development of

Downstream Industries

(CPO AND RUBBER)

IN RIAU PROVINCE

LOCATION : RIAU PROVINCE

PROJECT OWNER : THE GOVERNMENT OF RIAU PROVINCE PROJECT CLASSIFICATION : AGRO INDUSTRIES

Project Description

I

n terms of natural resources potensial , Riau mainland has diverse and ample commodities with high economic value, primarily within the plan -tation and agriculture, forestry, mining and energy sectors, Within the plantation sector, for instance it is identified that there exists oil palm planta -tion measuring 2.258.553 hectares (the largest in Indonesia = 37 %) with CPO production of 7.047.221 tons ( the largest in Indonesia = 38%). Besides that, Riau also have rubber area 504.139 hectares and the production 333.070 ton/ years. The area of this plantation is spread out in 12 regencies/cities in Riau Province.

n

DOWNSTREAM

INDUSTRY SECTOR

PRIORITY INVESTMENT

8

No Regency/City Cultivated Land (Ha)

CPO Production (Ton/Years)

Number of Palm Oil Processing

Industry

1 Kampar 356.741 1.282.936 36

2 Rokan Hulu 422.995 1.035.936 27

3 Rokan Hilir 247.970 829.028 22

4 Indragiri Hulu 118.970 392.863 14

5 Indragiri Hilir 226.398 678.670 11

6 Siak 237.043 738.787 17

7 Pelalawan 304.052 1.142.395 18

8 Kuantan Singingi 122.480 404.677 16

9 Bengkalis 177.169 436.411 10

10 Kota Dumai 34.003 75.124 2

11 Kota Pekanbaru 10.732 30.581 1

12 Kepulauan Meranti - - -

Total 2.258.553 7.047.221 174

NO. REGENCY/CITY CULTIVATEDLAND(Ha) CRUMBRUBBER PRODUCTION

(Ton/Years) 1 KAMPAR 101.342 77.513 2 ROKANHULU 56.920 49.124 3 ROKANHILIR 26.967 26.099 4 INDRAGIRIHULU 61.372 40.214 5 INDRAGIRIHILIR 5.194 1.327 6 PELALAWAN 27.286 28.473 7 KUANTANSINGINGI 150.565 55.617 8 SIAK 13.851 10.628 9 BENGKALIS 37.042 33.546 10 KEPULAUANMERANTI 18.586 8.570 11 KOTADUMAI 2.238 1.311 12 KOTAPEKANBARU 2.776 648

TOTAL 504.139 333.070

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Competent Official

: The Government of Riau Province

Jl. Cut Nyak Dien No. 6 Pekanbaru

Telepon

: +62-761-22206

Fax

: +62-761-22206

DEVELOPMENT OF PALM OIL DERIVATIVE INDUSTRIES

IN RIAU PROVINCE

The Analysis of Plantation Development Financial

Financial Analysis

NO SUPPLY INDUSTRY CORE INDUSTRY RELATED INDUSTRY SUPPORT INDUSTRY

1 CPO and PKO supply

Olein, Stearin and PFAD

Industry of packed cooking oil, salad oil, mayonaise, margarine, CBS, shortening, vegetable ghee, ice cream, processed food, pastry, vit. A-vit. E, soap, detergent and animal feed.

Industry of phospat acyd, citrate acyd, NaOH, additive, color industry, lecitine, salt, emulsifier, potasium, sorbate, powdered milk, machinery and equipment, packing. 2 CPO and PKO

supply

Fatty Acyd Industry of soap chips, food emulsifier, metalic soap, surfactan, lubricant, CBS, rubber processing, personal care product, glicerol, pharmacy.

Industry of ZnO catalist, machinery and equipment, packing.

3 CPO and PKO supply

Fatty Alcohol Industry of surfactan, cosmetic, personal care product.

Industry of methanol, hydrogen, Ni catalist, copper chromite catalist, sulfate acyd, machinery and equipment, packing. 4 CPO and PKO

supply

Biodiesel Industry of surfactan, transportation service, power generating, glicerol.

Industry of methanol, NaOH, KOH, H2SO4, sodium metilate.

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Status Project

a) Status of Land Lease (land title) : Right to build.

b) Period of Land Lease : 80 years, through the following phases : - 30 years.

- Extendable 20 years.

- Renewable for 30 years after the extended period. c) Feasibility Study : Survey.

d) Tender : Never Tendered.

Process and Procedures

Regional Regulation

Investment processes and procedures refer to the applicable Law on

Investment, by involving the Central Investment Board ( Investment Coordination Board of the Republic of Indonesia ), Riau Province and Pemerintah Kota

( Municipality ) Dumai.

Rule of Regional Administration

The Government will provide the following incentive to investors :

1) Facilitation to process permits/licenses by the Park Management. 2) Income Tax Facility for Investment undertakings (Government Regulation No. 52 of 2011).

3) Import Tax redemption for machinery and goods (Minister of Finance Regulation No. 176/PMK.011/2009).

a) Financial Structure :

- Joint Venture or BOT Scheme b) Model of Cooperation :

- Investor may lease land for industrial premise from the industrial park. - Investor may take contract with CPO suppliers and crumb rubber suppliers on market price basis.

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INDUSTRIAL PARK

Location : Kelurahan (Village) Pelintung, Dumai Municipality Distance : 187 Km from Pekanbaru City.

Project Owner : The Administration of Dumai Municipality. Project Classification : Industrial Estate.

Project Description

a) General Description

- Hinterlands surrounding the Dumai Industrial Park (KID) is palm oil/CPO and rubber plantation and producing centers as the source of raw materials for the downstream industries.

- Strategic location : directly facing the straits of Malacca-one of the busiest sea and trading lanes in the world and proximity to Singapore-trade and service hub in Southeast Asia.

- Rapid growth of the upstream and downstream sectors of the palm oil (CPO) industry in Dumai Municipality and surrounding area.

- Determination of Dumai-Duri-Rupat as an industrial Estate Riau and the Centre of National Strategic Activities (PKSN).

b) The Proposed Location of Dumai Industrial Park : - Allocated Area : 5.000 Ha. - Developed Area : 400 Ha. - Ready to develop Area : 600 Ha.

n

INDUSTRIAL PARK

SECTOR

The Development of

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- Existing Facilities :

• Waste Treatment Plant : 150 m3/jam • Access road

- Park Management : PT. Kawasan Industri Dumai (KID)

c) Facilities of Dumai Industrial Park :

• PT. KID has complete building and factories, among others : Harbour, Ware housing, Fertilizer, PKS and Refinery as well as Biodiesel Plants.

• PT. Kawasan Industri Dumai manages a 1000 ha Special Harbour that can be moored by ships weighing 50,000 DWT, with piping and conveyor system and bulking terminal for palm oil. This industry has begun its operation since 2000 and has continued to expand its business into various activities to date.

Services :

a. Special Port - ISPS Codeing

• Special loading/unloading service with tarrif cheaper than PT. Pelindo b. Land Plotting

- Right to build (HGB) certificate and

c. Main and access road in good condition d. Permits/Licenses village/sub district heads.

- May be developed as bonded area. - Park management will facilitate prospective investor/tenant for permits/licenses processing. e. Location

- Within the Dumai special economic cluster.

- Custom and fiscal facilitation. - Industrial Park is considered as vital object which is given priority for high security level by the National Police and Armed Forces. f. Social and Workforce

- Minimizing social cost as social

Facilities in Dumai Industrial Park : 

Facilities in Dumai Industrial Park :

No. Type of Infrastructure Capacity

1 Road within park complex

2 Sea Port/Harbor Designes for vessel up to 50.000 DWT 3 Power Plant 55 MW (Upgrade 100 MW)

4 Palm Oil Bulking Terminal 210.000 MT 5 Clean Water Installation 750 m3/Hour 6 Waste Treatment Installation 150 MT/Hour

7 Cargo Liquid, solid and container

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Authority of Signing : Mayor of

Dumai

Contact Person : The Head of Investment and Integrated Service Board of Dumai Municipality.

Phone: +62-765-31222

Fax: +62-765-31222

The Head of Municipal Development Agency of Dumai.

Phone: +62-765-439212 Fax: +62-765-439212

Project Value:

USD 223.927.801

The Roles of Regional Administration a. Legality

- Decision of Governor of Riau Number KPTS 412/IX/2003 on For mation of Coordinating Executive Team of the Development of Dumai Industrial and Harbour. - Municipal Regulation of Dumai Number 27 of 2005 on Amande ment to Municipal Regulation Number 11 of 2002 on Municipal Spatial Lay Out Plan of Dumai. b. Incentive

- Facilitation to process permits/ licenses by the Park Management. - Income Tax Facility for Investment undertakings (Government Regulation No.52 of 201). - Import Tax redemption for machinery and goods

(Minister of Finance Regulation No.176/PMK.011/2009.

c. Financial Structure: Joint Venture and BOT

d. Model of Investment: Private parties/State-owned Companies/ Regional Administration-owned Companies/Municipal Administra tion of Dumai.

Status of Project

a. Feasibility Study: The 300 hectares out of the reserved land extending to approximately 5,084 hectares has pursuant to Municipal Regula tion of Dumai Number 25 of 2005

has been controlled by the

Municipal Administration of Dumai, PT. KID controls 1000 hectares of the land. BPI has made a Masterplan of land extending to 2000 hectares in 2006.

b. Tender: Never tendered

Process and Procedures :

Any investors intending to receive a tax facility in importing capital goods or raw materials shall arrange SPPM through In -vestment Coordination Board in Jakarta, while those not requiring a tax facility can arrange their licensing through the Municipal Administration of Dumai. a. Region Regulations :

- Regional Regulation no.27 of 2005 on revision of Municipal Spatial Lay Out Plan of Dumai.

- Policy of provincial administration on program of Reliable Areas in Dumai-Duri-Rupat.

- Policy of Central Government on PKN (Centre of National Activities) and International Harbour.

- Decision of Governor of Riau number KPTS.412/IX/2013, on Formation of Coordinating

Executive Team of Development of Industrial and Harbour Estates Dumai.

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The Development Of Tanjung Buton

_{Project Description}

a. General Description :

- Resource potentials in Riau are considerable. Economic activities in Riau are centered on the sale of small, value-added raw materials. - Threat to the sustainable economic activities due to excess exploitation of raw materials to anticipate an increase in demand. - Efforts to enhance the added value of the natural resources include optimizing the role in secondary sectors (industrial). - Long-term efforts to support the subtitute economic activity which is not based on unrenewable natural resources.

- Due to the limitation of the Siak river in accommodating industries along it, there is, thus a need to change its roles and functions in the future.

- Improvement of service and economic activities and the necessity to optimize the develop ment of natural resources. b. Reasons of Determination :

- Hinterlands surrounding the Tanjung Buton Industry Park (KITB) are palm plantation estates and CPO and also Rubber produc ing centers as the source of raw materials for the downstream industries.

- Strategic location : directly facing the straits of Malacca-one of the busiestsea and trading lanes in the world and prox

imity to Singapore trade and

service hub in Southeast Asia. - Anticipation in the change of funcition of the Siak River from a transportation function to that of conservation.

c. The total area of Tanjung Buton is 5.192.292 Ha which the certified area (land use right) is 600 Ha : the area offered for port area is 300 Ha and industrial premise is 233,21 Ha (land price USD 10.000/Ha). d. Types of Industries which are devel

oped in Tanjung Buton :

- Plantation Industry (Agro Base Industry) : Industry which developed potential plantation substance such as crude palm oil (CPO), coconut and rubber. - Wood Cultivation Industry : It is included sawed wood, glaze wood, vaneer, chips, blockboard, dowels and fancy wood.

- Wood Base Industry : this industry included industry pulp and wood cultivation.

- Metal Industry : Electronics industry and tools which utilized industry from Batam to supply Riau Province and Sumatera Island.

- Food industry, Fishery Industry and Petro chemical industry. e. The Planning of harbour facilities in

Tanjung Buton : - Container Terminal. - CPO Terminal. - Fuel Terminal.

- Multipurpose Terminal. - Warehouse.

- Navigation Facility.

n

INDUSTRIAL PARK

SECTOR

INDUSTRIAL PARK

AND HARBOUR

Location : Village (Desa) Sungai Rawa, Sub-district (Kecamatan) Sungai Apit, Regency (Kabupaten) Siak-Riau Province Distance : +- 167 Km from Pekanbaru City.

+- 149 Km from Perawang.

Project Owner : PT. Kawasan Industri Tanjung Buton (District Administration-Owned Company of Siak). Project Classification : Industrial Estate and Harbour

PRIORITY INVESTMENT

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Tanjung Buton : Ir. H. Syarifuddin, MT Person in charge : Ir. H. Syarifuddin, MT.

Director of PT. Kawasan Industri Tanjung Buton.

Mobile : +62-812-754-1229

E-mail : Syarif_hadi2000@yahoo.com

Mohd. Soeharto

Company Secretary of PT. Kawasan Industri Tanjung Buton.

Mobile : +62-812-7884-36904 Email : harto_padang@yahoo.com

Office Address : Sudirman Square Complex Blok A-1 3rd Floor Jl. Sudirman Pekanbaru Phone : +62-761-37377

Fax : +62-761-37847

E-mail : tanjungbuton@yahoo.com Competent Official

Director of PT. Kawasan Industri

Project Value :

ITEM VOLUME INVESTMENT COST DONE BY

ARTERY ROAD 21 KM 384 MILYAR RUPIAH INVESTOR/KITB COLLECTOR 4,6 KM 36,8 MILYAR RUPIAH INVESTOR/KITB

LOCAL 9,3 KM 37,2 MILYAR RUPIAH INVESTOR/KITB DRAINACE LS 150,6 MILYAR RUPIAH INVESTOR/KITB PEMATANGAN

LAHAN

515 HA 309 JUTA DOLLAR US INVESTOR/KITB WATER SUPPLY 120 LITER/DETIK 180 MILYAR RUPIAH INVESTOR/KITB POWER PLANT 40MEGAWATT 48 JUTA DOLLAR US INVESTOR/KITB

PORT OFFICE LS - PEMERINTAH PUSAT HOUSING 43.000 PERSON 1,806 TRILYUN RUPIAH INVESTOR/KITB

1. CRUDE OIL, PIPELINE AND JETTY LOGISTICS

ITEM CAPACITY INVESTMENT VALUE BY

TANK STORAGE 600.000 BAREL 30 MILLION DOLLAR US INVESTOR PIPELINE LS 15 MILLION DOLLAR US INVESTOR JETTY 50.000 DWT 10 MILLION DOLLAR US INVESTOR POWER PLANT 1x2 MEGAWATT 3 MILLION DOLLAR US INVESTOR

2. CPO LOGISTIC

TANK STORAGE 20.000 TON 4,1 INVESTOR

PIPELINE LS 1 INVESTOR HEATER LS 250 INVESTOR STASIUN PENGISIAN LS 100 INVESTOR

3. OIL FUEL AND PIPELINE LOGISTIC

TANK STORAGE 10.000 2 MILLION DOLLARS US INVESTOR PIPELINE LS 1 MILLION DOLLARS US INVESTOR STASIUN PENGISIAN LS 200 THOUSAND DOLLARS US INVESTOR

4. STOWAGES

STOWAGE 18x32 2,3 BILLION RUPIAH INVESTOR

BILLION RUPIAH

LAND CLEARING

THE CENTRAL GOVERMENT SECOND

BILLION RUPIAH BILLION RUPIAH BILLION RUPIAH

BILLION RUPIAH

CHARGING STATION

MILLION DOLLAR US

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Role of Regional Administration Industrial Estate and Harbor.

Model of Investment

Domestic Investment and Foreign Investment pursuant to the applicable provisions. Siak Development Agency in 2002. - FS and Master plan of Standard - Environmental Impact Statement of Buton Industrial Estate by the District Environmental Impact Control Agency of Siak in 2004. Strategic Road Pekanbaru-Buton

by The Regency of Siak General Employment Service in 2010.

Processes and Procedures

Investment processes and procedures refer to the applicable Law on Invest -ment, by involving the Central Invest -ment Agency (Invest-ment Coordination Board of the Republic of Indonesia, Province and Districts/Municipalities). a. Regional Regulations

- District Regulation of Siak No.7

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a. General Description :

- Kuala Enok Industrial Park is Located in The Sub District of Tanah Merah, Indragiri Hilir Regency, about 6.5 hours by car from Pekanbaru “The Capital City of The Province”.

- The area directly faces Malacca Strait, Natuna Sea and Ocean Port of Kuala Enok.

- There are 880 hectares of land for

being prepared for the industrial park.

b. Purpose of the Project :

- Relocating industries scattered around of Indragiri Hilir Regency. - Supporting the Economic Growth of the region.

- Developing Indragiri Hilir Regency “Kuala Enok” as the south Gate way of Riau Province.

- The area is highly prospective to

develop downstream industry of CPO, fish processing industries and other industries of agricultural commodities.

c. Existing Condition :

- Kuala Enok Industrial Estate has been complete with Ocean Port in the area of 150 hectares.

- The project which has being de veloped was 71 km of road connecting Bagan Jaya to Kuala Enok.

- Other project was the developing road network in 65.5 km which connecting Sungai Akar to Bagan Jaya. - Developing Rumbai Jaya bridge in the length of 580 meters and 70.68 km road network which passed by Kuala Enok Industrial Estate.

Project Value:

USD 75.930.715.00

The Development of

Project Value: USD 75.930.715.00

Competent Official : Mayor of Indragiri Hilir.

Person in charge: Ir

H. SARIPEK, MP

Head of Investment, Promotion and Licensing Board of Indragiri Hilir Regency. Phone: +62768-21215

Faximile: +62768-21215

n

INDUSTRIAL PARK

SECTOR

KUALA ENOK INDUSTRIAL PARK

Location : Kecamatan (Sub District) Tanah Merah, Kabupaten (Regency) Indragiri Hilir, Riau Province.

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Role of Regional

Administration

1. The District Administration of Indra giri Hilir has allocated 150 hectares of land for the developing of the Harbor of Kuala Enok Industrial Estate. 2. Road to the Kuala Enok Industrial Estate was in the phase of infrastruc ture development.

3. Some project which is still in the progress are the development of the highway construction from Bagan Jaya to the Kuala Enok Industrial Estate and the highway from Sungai Akar to Bagan Jaya.

- Legality

Kuala Enok Industrial Estate has been legalized through District Regulation of Indragiri Hilir No.2 of 2004.

- Financial Structure

Joint Venture, Build, Operate and Transfer Scheme (BOT).

- Security Guarantee

The Government of Indragiri Hilir Regency guarantees the security starting from the implementation until to the post of the project.

Model of Investment

Domestic Investment (PMDN and For

-eign Investment (PMA) pursuant to the applicable provision.

Status of Project a. Feasibility Study

DED of Kuala Enok Industrial Estate by PT. Kita Abadi and The Industrial and Trade Office, Riau Province in 2007.

b. Tender Never Tendered.

Processes and Procedures

Investment processes and procedures refer to the applicable Law on Invest -ment, by involving the Central Invest

-ment Agency (Invest-ment Coordination Board of the Republic of Indonesia, Province and Districts/Municipalities).

a. Regional Regulations

District Regulation of Indragiri Hilir No.2 of 2004 on Planning of Indragiri Hilir Development 2004-2014.

b. Licensing : - Site Permit. - Building Permit. - HO Permit.

- Recommendation on Environt -mental Impact Assessment. - Etc.

PRIORITY INVESTMENT PROJECT IN RIAU PROVINCE 2014

18

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n

INDUSTRIAL PARK

SECTOR

Project Description

a. General Description :

- The development of the Tenayan Industrial Estate (KIT) is the im plementation of the Municipal Spatial Lay-out Plan of Pekanbaru in 2006.

- KIT will become a place of reloca tion for the existing industrial ac tivities spread at various place in Pekanbaru Municipality.

- Large scale industries in the last seven years had increased from 11 units in 1999 to 18 units

in 2005 while mid-scale industries had also increased from 15 units in 1999 to 16 units in 2005 and small scale industries including cottage industries had decreased from 220 units in 1999 to 116 units in 2005.

- The development of an Industrial Estate in Tenayan, Pekanbaru can expectedly stimu late the development in industrial estate while simultaneously opening up new work opportunity.

b. Type of Industries which are developed in Tenayan Raya Estate : - Food and Beverage Industry. - Textile Industry.

- Wood Industry. - Chemical Industry. - Mineral Industry. - Warehouse. - General Facility. - Offices and Commercial. - Worker Mess.

- Metal Industry.

The Development of

Location:

Sub-district (Kecamatan) Tenayan Raya-Pekanbaru Municipality.

Distance:

14 Km from Pekanbaru Municipality (15 Minutes)

Project Owner:

Municipal Administration of Pekanbaru.

Project Classification:

Industrial Estate

Tenayan Raya

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Project Value : IDR 868.012.850.000

No. Jenis Pekerjaan Total Area / Unit Anggaran Biaya (Rp) 1 Maturation of the land 61.2 Ha 36.720.000.000 2 Small Warehousing + Garden (@15 m x 30

m)

20 Unit 16.119.000.000

3 Medium Warehousing + Garden 12 29.449.800.000 4 Large Warehousing + Garden 14 88.865.700.000

5 Timber Industry (Molding) 8 70.482.000.000 6 Rubber Industry 4 100.834.400.000

7 Chemical Industry 8 74.294.400.000 8 Derivatives Industry Rubber ( tire) 5 46.434.000.000 9 Metal Industry 10 92.868.000.000 10 Food Industry 10 92.868.000.000

11 Industrial Textil (garment) 5 42.684.000.000 12 Support - 65.613.300.000

13 Complement - 3.253.500.000 14 Infrastructure - 107.526.750.000

GRAND TOTAL 868.012.850.000

THE PLANNING VALUE OF DEVELOPMENT TENAYAN RAYA INDUSTRIAL PARK

Kind of Projects Budget Forecasting

PRIORITY INVESTMENT

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Role of Regional Administration

The Municipal Administration of Pe -kanbaru facilitates the arrangement of project administration and licensing.

a. Legality

- “Industrial Estate” , pursuant to Presidential Decree No.14 of 1996 dated June 4, 1996 and Decree of the Minister of Indus try and Trade No. 50/MPP/ Kep/2/1997 dated February 20, 1997.

- Decision of Mayor of Pekanbaru Number 650/13-WK/1999 stipulates that Estate allocated for Tenayan Industrial Estate extends to 1,550 Ha.

b. Financial Structure

- Cooperation with BOT system and shareholding between the Municipal Administration and Investor.

c. Security Guarantee

- The Municipal Administration of Pekanbaru guarantees the security, starting from the imple mentation of activity to post project.

Model of Investment

Domestic investment (PMDN) and for -eign investment (PMA) pursuant to the applicable provisions.

Status of Project

a. Feasibility Study: New Project b. Tender: New (never tendered)

Process and Procedures

a. Regional Regulation: Investment processes and procedures refer to the applicable Law on Investment, by involving the Central Investment Board (Invest ment Coordination Board of the Republic of Indonesia), the relevant Provinces and Districts/Municipalities. b. Licensing

- Site Permit - Building Permit - HO Permit

- Recommendation on Environmental Impact Assessment

- Etc

Competent Official : Mayor of Pekanbaru Person in charge : MUSA

Head of Integrated Service and Investment Board of Pekanbaru Municipality

Phone : +62761-28262 , Facsimile: +62761-42003

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n

ENERGY DAN MINING

SECTOR

Project Description

a. General Description : - Geography

The planned location of Hydropower Plant Lubuk Ambacang is situated up -stream of Sungai Indragiri/Sungai Kuan -tan river basin (DAS), in the village of Lubuk Ambacang, sub district Kuantan Hulu, Regency of Kuantan Singingi.

- Topography

The planned location of Hydropower Plant Lubuk Ambacang is a flat wavy and hilly area with the elevation of 6-200, height 50-300 meter above sea level, having elevation advantage against cur -rent gravitation of artesian water (hy -draulic slope), making water current/ movement to the dam faster.

- Geology

Litology in the form of sandstone, limestone and quartz with compact me

-dium granule, friction 20-40 feet/day, absorption characteristic 30-60 feet/day (900-1800 cm/day), medium permeabil -ity.

Location is at the fracture zone, (nor -mal fracture and shifting fracture), caus -ing the split structure and rock porosity dominant. This also causes the ground water flowing permanently into the split and fracture (steady flow all year long keeps the water volume sustained.

Reservoir area comprises permocar -bon rocks in Kuantan formation consist -ing of 3 groups : i.e. quartz, limestone and siltstone, all peeland off at the up stream area of the planned dam site as well as the youngest stone layer com -posed of limestone and silt. The most dominant stone is of quartzite type.

b. Existing Condition :

- Hydrology and Hydrogeology Indragiri river stems from Ombilin river springing from lake Singkarak (West Sumatera). 60% of land area along the In -dragiri/Kuantan river is convered by for -est, functioning as catchments are which will provide water all year long for the Indragiri/Kuantan River.

Rainfall rate in Lubuk Ambacang area is averagely 2,291 mm/year, surface wa -ter permeability of stone 30-60 feet/day, specification rate of ground water per -meability 4.482 m3/S/100 Km2 and run off value of surface water in Lubuk Amb -acang area 1,303 mm/year.

Indragiri river basin (DAS) has the to -tal catchment area of 91,3 Km2 while the planned location of Hydropower Plant (PLTA) development in Lubuk Ambacang has the catchment area of 7,453 Km2 (considered high).

c. Technical Analysis :

- Based on the stone condition and hydrolic slope, the Lubuk Ambacang area is geologically feasible as the site for the development of hydropower plant project, but further detailed study is re -quired.

- Rock formation consists of lime -stone, silt and dominant quartz charac -terized by semi tight water, hard rock and low permeability, the dam site is highly suited and has less permeability risk.

- The potential of Indragiri/Kuantan River as energy source is high and has comparative value for investment.

- The high surface run off (1,303 mm/year), the development of Hydro -power Plant will have considerable im -pact to reduce the strong run off which is vurnerable to cause erotion and flood.

- With the generated electricity of 135 MW, the installed electric capacity

The Development

of Power Plants

22

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will increase and is able to reduce power crisis in Riau Province.

Project Value

a. The project will cost USD 343,330,272,78. This covers all project costs, including construction

cost to funded cash (20%), long term loan (60%) and short term loan (20%).

b. Cost breakdown: - Cash: USD 68,666,054.46. - Long term Loan: USD

205,998,163.37. - Short term Loan: USD

68,666,054.46 c. IRR: 11.24 %

d. Payback Periods: 12 year Competent Official: Governor of

Riau.

Role of Regional

Administration

1. Land acquisition.

2. Arrangement and facilitation of permit and licenses.

3. Condusive climate for investment.

a. Legality

- Law No. 15 of 1985 concerning Electricity.

- Government Regulation No.3 of 2005 concerning Electricity. - Government Regulation No. 25 of

1995 concerning Support Businesses on Electricity. - Government Regulation No.3 of

2005 concerning the change of Government Regulation No. 10 of 1989 concerning the Provision and Utilization of Electricity. - Ministerial Regulation of Mineral

and Energy Sources No.0010 of 2005 concerning the Licensing Procedure on Electricity of Cross Provincial Borders or

interconnection with National Transmission Networks. b. Financial Structure

Joint Venture

Model of Investment

Domestic investment (PMDN) and for -eign investment (PMA) pursuant to the applicable provision.

Status of Project

a. Feasibility Study: New Project b. Tender: Never Tendered

Process and Procedures

Regional Regulation : Investment pro -cesses and procedures refer to the ap -plicable Law on Investment, by involving the Central Investment Board (Invest -ment Coordination Board of the Republic of Indonesia), Riau Province and The Re -gency of Kuantan Singingi.

Head of the Mining and Energy Agency

of Riau Province.

Phone

: +62-761-26991

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Project Description

a. General Description

- Riau Province has abundant potential mining resources such as crude oil, natural gas, coal, limestone, quartz sand, bauxites, gold and other. In Rokan Hulu Regency is found huge limestone and quartz sand deposit with potential resources of about 175,000,000 m3 or 420,000,000 tons of growing economy and fast development needs sufficient supply of cement to cater to community needs, industrial and business activities.

b. Deposit Condition

1. The Limestone deposit is 2. The spread of limestone reaches an area of 1x7 km with the total reserve of 175,000,000 m3 or 420,000,000 tons (estimated). Physiographically, this region is part of the foot of East Bukit Barisan.

3. Mountain range with the altitude in the range of 150 and 500 m above the sea level. 4. At present, the limestone potential in the region of Kijang River, Cipang Kiri Hulu-District of Rokan IV Koto, is not at all utilized. Based on the results of analysis and intial

characterization, the calcium dolomite found in the region of Kijang River District of Rokan IV Koto, can be in general used as raw material for cement industry.

n

ENERGY DAN MINING

SECTOR

The Development of Cement

Industry in Rokan Hulu

general used as raw material for cement industry.

LIMESTONE CHARACTERISTIC

No. Suaman River, Pawan Kijang River, Cipang Kiri Hulu

1. CaCO3 89,27 ~ 90,92 56,93 ~ 97,10

Location : Kecamatan (Sub district) Rokan IV Koto, Kabupaten (Regency) Rokan Hulu, Riau Province. Distance : 183 Km from Pekanbaru City.

Project Owner : The Government of Riau Province and Regency Administration of Rokan Hulu. Project Classification : Energy.

PRIORITY INVESTMENT

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5. Quartz sand potential is widely found in the regions of Pasir Pangara -ian Kaiti Pawan River Bungo, District of Rambah, at a distance of 8 km from Pasir Pangaraian and the region of Ko -taranah, District of Tandun. Outcrops of quartz sand are found in the steep hills at the altitude in the range of 150-200 m above the sea level. The total reserves of quartz sand stone are 345,000,000 m3 and 100,000,000 m3 in the region of Pawan, Kabun-Kotaranah subdistrict. Raw Materials Reserve

• Limestone: 175.000.000 m3/420.000.000 ton • Quartz sand: 345.000.000

m3/100.000.000 ton

Investment Analysis

• Investment Cost: IDR 1.500.000.000.000,-USD 157,894,736.842 (USD 1 = Rp 9.500) • Financial Analysis

Project is feasible for produc tion up to 4000 ton/day or 22.800.000 sack/year (contain 50 kg), selling price Rp 37.000/ sack.

Market Opportunity

• National and local demand for cement production tends to increase.

• The consumption demand for cements in Riau Province is estimated more than 1.000.000 ton/year cements.

Role of Regional

Administration

1. Land acquisition

2. Arrangement and facilitation of permit and licenses

3. Condusive climate for investment

Financial Structure

Joint Venture

Model of Investment

Domestic investment (PMDN) and For -eign investment (PMA) pursuant to the applicable provision.

Status of Project

a. Feasibility Study: New Project b. Tender : Never Tendered

Process/Procedures

Regional Regulation

Investment processes and procedures refer to the applicable Law on Invest -ment, by involving the Central Invest -ment Board (Invest-ment Coordination Board of the Republic of Indonesia), Riau Province and The Regency of Rokan Hulu.

Competent Official

Regent of Rokan Hulu

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n

TOURISM

SECTOR

THE DEVELOPMENT OF NORTH RUPAT ISLAND

Location:

Subdistrict (Kecamatan) North Rupat, Regency (Kabupaten) Bengkalis.

Project Classification:

Tourism Sector.

Project Owner:

The Government of Bengkalis Regency.

Distance

l 210 Km or 5,5 hours from Pekanbaru City

l 2,0 hours from capital city of Bengkalis

l 1,5 hours from capital city of Dumai

l 30 mile or 45 minutes from Portdickson (Malaysia)

Project Description

- Rupat is one of thousands of islands which spread around Riau Province. Rupat Island is very captivating with its white sand and its wide to 1,524.85 Km2 thereby making it a world class resort.

- The white sands in Rupat island spread around 17 Km from Teluk Rhu village, Tanjung Punak (North Rupat) to Cingam river (Rupat). Its wide is around 30 meter when fall or 7 meter when tide.

- Some activities which can be done such as sun burning, surfing, scuba diving, fishing and

swimming.

Project Value: Not yet analized

Role of Regional

Administration

Bengkalis Regency gives some easiness to the investors in some factors :

1. Provide supporting facilitates and infrastructures.

2. Give an easiness in license. 3. The Government of Bengkalis Regency provide the area around 2 ha for the project of North Rupat Island Development as tourist resort.

4. Join with the Government of Riau Province, the Government of Bengkalis Regency construct axis street between Batu Panjang (the capital city of Rupat Subdistrict)

with Tanjung Medan (the capital city of North Rupat Subdistrict). By length of 60 Km, this street Conservancy Natural Resources and Ecosystem.

- Indonesian Republic Law No.27 of 2007 on Investment Sector. - Law No.10 of 2009 on Tourism Sector.

- Law No.32 of 2004 on Regional Administration (Regional

Autonomy).

b. Financial Structure

Operational Cooperation or Joint Venture.

c. Security Guarantee

The Municipal Administration of Bengkalis guarantees the security, starting from the implementation

As Tourist

Resort

PRIORITY INVESTMENT

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Competent Official : The Regent of Bengkalis

Drs. H EDUAR, M.Psa, M.Kom

The Head of Cultural Sector of Cultural, Tourism, Youth and Sport Service of Bengkalis Regency. Phone : +62-766-21098

Fax : +62-766-22720 Mobile : +62-812-750-7212 Email : eriks_private@yahoo.com

khairanialwi@gmail.com

Address : Jalan. Arif Rahman No.24 Bengkalis-28712

of activity to post project.

Model of Investment

Domestic investment (PMDN) and For -eign investmentb(PMA) pursuant to the applicable provisions.

Status of Project

a. Feasibility Study

The District Administration of Bengkalis has made a detail engineering design (DED) and master plan of the development

of tourist resort in Rupat Island with SAA Architects Pte Ltd Singapore.

b. Tender

Never tendered.

Processes and Procedures

Investment processes and procedures refer to the applicable Law on Invest -ment, by involving the Central Invest -ment Agency (Invest-ment Coordination Board of the Republic of Indonesia), the relevant province and District/Munici

-palities.

- Referring to Regional Law No.15 of 2008 about Regional Middle Term Development Planning (RPJMD) of Riau Province 2008-2013. - Referring to Regional Law No.17 of 2008 about The Development of Economic Estates Duri-Dumai-Rupat. - Referring to Regional Law of Bengkalis Regency No.09 of

2011 about Regional Middle Term Development Planning (RPJMD) of Bengkalis Regency 2010-2015.

b. Licensing - Site Permit. - Building Permit. - HO Permit.

- Recommendation of Environmental Impact Assessment.

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Project Description

a. General Description

• Jemur Island located in a strategic position (40 miles in the northern part of Rokan Hilir Regency or 45 miles from Portdickson-Malaysia). • Jemur Island consist of nine unoccupied islands.

• The groups of island are called Riau Pulau Tokong Emas, Sarang Elang, Labuhan Bilik, Pertandang, Batu Adang, Jomo, Bebeuh, Batu

Berlayar and Batu Mandi. • These island are enriched with yellow gold sandy beaches and many kinds of ancient footmarks. • Jemur Island are home of uncountable green turtles and very suitable for the

development of integrated fishery.

b. Existing Condition

Jemur Island has three potentials :

• Nature based Tourism Potential Pristine Nature scatters around, rich with attraction in its own unique, potential for tourism purposes.

• History based Tourism Potential Jemur Island are rich of ancient footmarks, such as, Japanese war tunnel, Japanese defense bunkers, etc.

• Special Interest Tourism Potential Jemur Island is potential for the development of special interest

n

TOURISM

SECTOR

The Development of Jemur Island

as Tourist Resort

Location:

Kabupaten Rokan Hilir (Regency)

Distance:

252 Km (6 hours) Pekanbaru-Ba

-gansiapi-api, 45 Km (2 hours) Bagansiapi-api-Jemur Island.

Project Owner:

The Government of Rokan Hilir Regency.

Project Classification: Tourism

PRIORITY INVESTMENT

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tourism, such as adventure, marine sport activities (swimming, diving, surfing,etc). c. Prospective Investment Opportunities

• The development of Marine tourism facilities.

• The development of Villas and Cottages.

• The development of Seaport. • The cultivation of Green Turtles.

Project Value

:

Rp.250.000.000.000

Role of Government:

• The Land Acquisition of the project.

• Assisting and facilitating the investors in the form of legal paper matters and license. • Creating conducive climate of investment.

• Giving security guarantee to investors in doing business in Riau Province.

a. Legality:

Law No.32 of 2004 on Regional Administration (Regional autonomy).

b. Financial Structure:

Operational Cooperation or Joint Venture.

c. Security Guarantee:

The Regency of Rokan Hilir

guarantees the security, starting from the implementation of activity to post project.

Model of Investment

Domestic investment (PMDN) and For -eign investment (PMA) pursuant to the applicable provisions.

Status of Project

a. Feasibility Study:

The Regency of Rokan Hilir has

Competent Official:

Regent of Rokan Hilir.

Person in charge:

Drs.H.Indra Putrayana, M.Si.

The Head of Investment and

Integrated Service Board of

Rokan Hilir Regency

Address:

Jl. Bintang No.42

Bagansiapi-api.

Phone/Fax:

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made a survey about the development of Jemur Island as one of the tourism object in Riau Province.

b. Tender: Never tendered.

Processes and Procedures

Investment processes and procedures refer to the applicable Law on Invest -ment, by involving the Central Invest -ment Agency (Invest-ment Coordination Board of the Republic of Indonesia), the relevant province and District/Munici -palities.

- Referring to Law No.32 of 2004 on Regional Administration (Regional Autonomy).

- District Spatial Lay Out Plan of Rokan Hilir.

b. Licensing - Site Permit - Building Permit - HO Permit

- Recommendation of Environtmental Impact Assessment

- Etc

PRIORITY INVESTMENT

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Project Description:

a. General Description

• Pedamaran Island located in a Bangko Sub district, Rokan Hilir Regency.

• Some villages which located along Pedamaran Islands are Sungai Sialang, Labuhan Tangga Kecil, Labuhan Tangga Besar, Bagan Punak, Suak Temenggung and Air Hitam.

• There are 3.000 hectares will be developed in Pedamaran Island

b. Existing Condition

• Pedamaran Island has an easy access to reach wheater from Rokan Hilir Regency also from other towns.

• Pedamaran Island has not been developed yet and no citizen lived there.

• Many kinds of plants found in Pedamaran Island, such as waru, banyan tree, nipah and

mangrove. Beside that, many kinds of animals also lived in this

island, like crocodiles, snake, monkeys, bird and lizards. c. Prospective Investment Opportunities

• The development of Padamaran Island Area, consist of :

- Education based Tourism - Agro based Tourism - History based Tourism - Nature based Tourism

• The development of Facilities / Infrastructure such as :

- Road Network

n

TOURISM

SECTOR

The Development of Pedamaran Island

as Tourist Resort

Location : Kecamatan (Sub District) Bangko, Kabupaten (Regency) Rokan Hilir Distance : 252 Km (6 hours) Pekanbaru-Bagansiapi-api

18 Km (15 minutes) Bagansiapi-api-Pedamaran Island. Project Owner : The Government of Rokan Hilir Regency

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- Electricity Power - Clean Water - Drainase

- Telecommunication Facilities • The development of Public Facility such as :

- Central Information - Play ground Area - Shelter/Gasebo - Security Post - Mosque/Musholla - Parking lot - Toilet

- Information and Management Board

- etc

Project Value: Rp.

266.465.800.000,00

Role of Government

• The Land Acquisition of the project. • Assisting and facilitating the investors in the form of legal paper matters and licenses. • Creating conducive climate of investment.

• Giving security guarantee to investors in doing business in Riau Province.

- Legality: Law No.32 of 2004 on Regional Administration (Regional autonomy).

- Financial Structure: Operational Cooperation or Joint Venture. - Government Incentive: The Regency of Rokan Hilir guarantees the security, starting from the implementation of activity to post project.

Model of Investment

Domestic investment (PMDN) and for -eign investment (PMA) pursuant to the applicable provisions.

Status of Project

a. Feasibility Study:

The Regency of Rokan Hilir has made a master plan about the development of Pedamaran Island as one of the tourism object in Riau Province with PT. Andalan Utama Perkasa.

b. Tender: Never Terdered.

Processes and Procedures

Investment processes and procedures

refer to the applicable Law on Invest -ment, by involving the Central Invest -ment Agency (Invest-ment Coordination Board of the Republic of Indonesia), the relevant province and District/Munici -palities.

a. Regional Regulation:

- Referring to Law No.32 of 2004 on Regional Administration (Regional Autonomy).

- District Spatial Lay Out Plan of Rokan Hilir.

b. Licensing: - Site Permit - Building Permit - HO Permit

- Recommendation of Environment Impact Assesment

- Etc

Competent Official:

Regent of Rokan Hilir

Person in charge:

Drs.H.Indra Putrayana, M.Si

The Head of Investment and

Integrated Service Board of

Rokan Hilir Regency

Address :

Jl. Bintang No.42

Bagansiapi-api

Phone/Fax:

+62-767-23330-24499

PRIORITY INVESTMENT

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n

TOURISM

SECTOR

The Development of

Tirta Bono Natural Tourism Spot

Project Description

a. The background development of Tirta Bono Natural Tourism Spot in Teluk Meranti Sub- district, Pelalawan Regency is baced un the existing potential of the tourism de velopment of Bono which can support the development of the area, especially serves as an inspiration of the area’ s new economic development

b. The plan of this area has just been made in the master – plan for spatial use of the Tirta Bono natural tourism spot.

c. The Tirta Bono Tourism Spot is located the eastern side of Teluk Meranti subdistrict, about 160 kilometers from the capitol city of Riau Province, 100 kilometers from Pangkalan Kerinci – the regency’s central administration by car, and three kilometers from Teluk Meranti sub – district administrive city. Bono is such of a big wave that coincided with high

tide and tidal wave with the peak height reaches 4 – 6 metres. Bono is the place where your adrenaline is tested.

d. It has about 60 acres of

recreational and sport activity area. There are also means of supporting building in the administrative city, such as Hotel , Restaurants, Money changers , travel agents, and banks. e. Some identified potencies and problem of this tourism spot are this tourism spot are Tourism market which is potential for foreign visitors.

The current condition of this tourism spot is water – part which is full of the beautiful scenery of the river.

- Needs more development - Lack of facility and utility building - Poor condition of the access road - Promotion events have been done but still yet to find interested investors.

Project Lacation

Kecamatan (Sub – District Teluk Meranti - Pelalawan Regency)

Project Owner

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f. Developing Tirta Bono Tourism Spot is a strategy of the regency , intended to become the main con centration for serving both domestic and foreign tourists in area 1 which is Located in the eastern area.

g. The area of Teluk Meranti sub – district is aimed to become the tourism development plan for Pelalawan regency in water – park tourism and Bono nature which is based on these considerations,

1. The object along with its attractive and exotic visua;lization gives the impression of comfort to the visitors

2. Large service capability and a wide open space which can support any recreational activities with a large number of visitors.

3. Fulfilling the need for service for the visitors along with providing the object’s infrastructure to support the tourism spot.

4. Choosing the unique

characteristic so it will attract the local and foreign tourist segment.

Role of Regional

Administration

Government Incentive

The Government of Pelalawan Regency offers an easy access in the investment and licensing process.

Project Status

There are level of an offering of the in-vestment project :

1. Prospective 2. Potential

3. Able to do sooner 4. Feasibility Study

Some studies that have been done for this project :

1. The Analysis of Environmental Impact Statement

2. The Analysis of Financial

3. The Analysis of Economic/Market 4. The Analysis of Technical

Tender : New (Never Tendered)

Competent Official

The Administration Of Pelalawan Regency

The Head of Investment and Integrated Licensing Service Board of Pelalawan Regency Complex of Bhakti Praja Offices Pangkalan Kerinci Phone : 0761 – 493122/493172

Fax : 0761 – 493845-95990

PRIORITY INVESTMENT

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LIST OF REGIONAL INVESTMENT AGENCIES IN RIAU PROVINCE

Website : www.bkpm.go.id

PROMOTION AND INVESTMENT BOARD-RIAU PROVINCE

Address : Menara Lancang Kuning Building Third Floor

Jend. Sudirman Street No. 460 Pekanbaru Phone : +62761-20212 Faxsimile : +62761-20213 Website : www.riauinvestment.com

INTEGRATED SERVICE AND INVESTMENT BOARD-PEKANBARU MUNICIPALITY

Address : Jend. Sudirman Street Pekanbaru

Phone : +62761-28262 Facsimile : +62761-42003 Website : www.pekanbaru.go.id

/www.investasi. pekanbaru.go.id

INVESTMENT AND LICENSING SERVICE BOARD-BENGKALIS REGENCY Address : Antara Street No.28

Bengkalis Phone : +62766-23615 Facsimile : +62766-23615 Email : bengkalis.bppt@

gmail.com

INVESTMENT AND LICENSING SERVICE BOARD-INDRAGIRI HULU REGENCY

Address : Lintas Timur Street Pematang Rengat

Phone : +62769-341010 Facsimile : +62769-341211

PROMOTION AND INVESTMENT LICENSING BOARD-INDRAGIRI HILIR REGENCY

Address : Hang Tuah Street No.4, Tembilahan Phone : +62768-21215 Facsimile : +62768-21216

INVESTMENT AND LICENSING SERVICE BOARD-SIAK REGENCY Address : Komplek Perkantoran

Pemda Siak Sungai Betung-Siak Indrapura Phone : +62764-322038-20294 Facsimile : +62768-322038-

8001035 Website:

www.bpmppt.siakkab.go.id

INTEGRATED SERVICE AND INVEST-MENT BOARD OF KUANTAN SINGINGI REGENCY

Phone : +62760-561616 Facsimile : +62760-561617

INTEGRATED LICENSING SERVICE AND INVESTMENT BOARD-ROKAN HULU REGENCY

Address : Bina Praja Complex of Regional Goverment of Rokan Hulu Regency Tuanku Tambusai Street KM 4-Pasir Pengaraian Phone : +62762-91481 Facsimile : +62762-91481

INVESTMENT AND INTEGRATED SER-VICE BOARD-ROKAN HILIR REGENCY Address : Utama Street

No.21 Bagansiapi-api Phone : +62767-23330 Facsimile : +62762-24499

INVESTMENT AND INTEGRATED LICENSING SERVICE BOARD-PELALAWAN REGENCY

Address : Bhakti Praja Office Complex-Pangkalan Kerici

Phone : +62761-493122 Facsimile : +62761-493845-

95990

Email :

bpmppt_kabpelalawan@yahoo.co.id

INTEGRATED SERVICE AND INVEST-MENT BOARD-DUMAI MUNICIPALITY Address : Jl.HR.

Dumai Phone : +62765-31222 Facsimile : +62765-31222

INTEGRATED LICENSING SERVICE AND INVESTMENT BOARD-KAMPAR REGENCY

Address : M Yamin Street No.768 Bangkinang Phone : +62762-32276 Facsimili : +62762-21370

INVESTMENT AND INTEGRATED LICENSING SERVICE BOARD-KEPULAUAN MERANTI REGENCY Address : Jl. Kartini No.6 Selat

Panjang Phone : +62763-33630 Facsimile : +62763-33630

PRIORITY INVESTMENT

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PROMOTION AND INVESTMENT BOARD OF RIAU PROVINCE

MENARA LANCANG KUNING BUILDING FLOOR 3 JEND. SUDIRMAN STREET NO. 460 PEKANBARU