N SEZ Sei Mangkei is the first economic zone in Indonesia which is located within the heart of palm oil plantaon in Sumatera. Therefore, SEZ Sei Mangkei is able to create an integrated palm oil industry within the established zone. Most of the required palm oil industry facilies are comprehensively available in SEZ Sei Mangkei. Moreover, all waste in the region will be recycled, thus it makes SEZ Sei Mangkei environmentally friendly. 2. An Integrated-Modern Industrial Zone Land Use Plan S EZ Sei Mangkei is designed by the Government of Indonesia as an integrated- modern industrial zone especially for palm oil industry. It has a downstream industrial estate for oleo-chemical industry and processing center of other agriculture estate commodies. T he zone is equiped with supporng facilies such as commercial area, educaon centre, housing, medical clinic, sport facilies, and palm oil innovaon centre for research and development purposes. Sei Mangkei has the status of Special Economic Zone (SEZ) for industrial, logisc and tourism sectors which is launched by the Government of Indonesia in 2012. It has benefits for investors in terms of fiscal and non-fiscal incenves. With the total area of 2,002.77 ha, SEZ Sei Mangkei is located in Simalungun Regency, North Sumatera (3 hours from Kualanamu Internaonal Airport). SEZ Sei Mangkei is managed by PT. Perkebunan Nusantara III, a state-owned enterprise which has more than 50-year experience in plantaon industry. SEZ Sei Mangkei is the first area designed by the Government as the centre of integrated palm oil industry with its derivave products in Sumatera Economic Corridor. INDONESIA is primed for economic takeoff. With debt to GDP rao is at low 27%. The IMF forecasts the economy will expand to US$1.5 trillion by end-2015, while McKinsey expects Indonesia to become the world’s 7 th -largest economy by 2030. In 2013 The ADB and The World Bank project Indonesia’s economiy growth to increase from 6.3% to 6.5, the largest in Southeast Asia. The IMF also projects Indonesia will be at the top 3 fastest economic growths among G20 countries. Exisng Facilies and Infastructure Facilites: Palm Oil Mill (75 Tons of FFB/Hour), Palm Oil Biomass Power Plant (2 x 3.5 MW), Palm Kernel Oil Mill (400 Tons/Day) Infrastructure: Office Building, Water Treatment Plant (250 m 3 /Hour), Roads (ROW 43 & ROW 30), Drainage, Electricity, Telecommunicaon Networks, Water Supply, 24-Hour Security, Housing, and Palm Oil Innovaon Centre. 1 st Rank Producon of CPO accounted more than 28 tons per annum (2012 figure). 1 st Rank Largest palm oil plantaon total area reached 8,9 million ha, with distribuon of ownership small holder 42%, SOE 7%, while private reserve 51%. 1 st Rank CPO exporter more than 20 million tons (2012 figure), with Top 5 export desnaon India 25%, Netherland 13%, China 12%, Malaysia 10%, and Bangladesh 4%. 2 nd Rank CPO consumpon more than 7,5 million tons, with 1 st rank India 8,4 million ton, and follow by China, EU-27, and Malaysia. Indonesia's Crude Palm Oil (CPO) Drainage Roads Electricity Palm Oil Mill Palm Kernel Oil Mill Office Building Palm Oil Innovaon Centre Water Treatment Plant OVERVIEW INDONESIA OVERVIEW INDONESIA OVERVIEW SEZ SEI MANGKEI OVERVIEW SEZ SEI MANGKEI INVESTMENT OPPORTUNITIES IN SEZ SEI MANGKEI INVESTMENT OPPORTUNITIES IN SEZ SEI MANGKEI WHY INVEST IN SEZ SEI MANGKEI? WHY INVEST IN SEZ SEI MANGKEI? Investment Opons A. Agro Industry • Oleochemical • Biodiesel • Surfacant • Woods • Cale Feeds • Energy from Palm Oil Mill Effluent • Energy from Empty Fruit Bunches • Papers • Organic Ferlizer B. Logiscs and Warehousing C. Tourism • MICE • Golf Area • Hotels D. Commercial Area Palm Oil Industrial Zone Rubber Industrial Zone Supporng Facilies Zone Mulfarious Industrial Zone Logisc and Warehousing Zone Commercial Zone Tourism Zone Housing Zone Business Models Land Sales • Land Rental • Joint Venture • Build-Operate-Transfer (BOT) • 1. Best Locaon In the heartland of world palm oil and rubber producing region. Almost no history of social unrest and known as highly tolerant community within diverse religious believers. Will have 30 minutes travel access road to Kuala Tanjung harbor in the main internaonal sea route of Malaka Strait Abundant water supply potenal from nearby Bah Bolon River Geologically stable and far from tsunami, earthquake or other natural disaster area Located near Indonesian Archipelagic Sea Lanes (ALKI 1) and Malaka Strait Naonal GDP Growth Projecon Source: IMF Internaonal Credit Rangs: Indonesia Shares Investment Grade BB+/STABLE BBB-/STABLE May 2013 0 10 20 30 40 50 2005 2006 2007 2008 2009 2010 2011 2012 2013 2016 CPO Production Figure & Forecast, 2005-2016 (in million tons) Forecast Source: Ministry of Agriculture Overall Investment Realizaon 44,3 14,2 15,0 4,2 10,8 4 23, 6,8 16,6 27,9 8,4 34,8 10,2 24,6 30,1 DDI (USD Billion) FDI 19,5 Source: BKPM 2009 2010 2011 2012 2013 July 2013 SEZ Sei Mangkei Kuala Tanjung Medan Distribuon of Palm Oil Plantaon in Indonesia Source: Ministry of Agriculture < 200.000 200.001 - 500.000 500.001 - 700.000 700.001 - 1.000.000 > 1.000.000