SEZ Tanjung Api-Api

Sea Port

Airport

Provincial Capital

Regency

Country Road

INVESTMENT OPPORTUNITIESINVESTMENT OPPORTUNITIESInvestment OptionsA. Basic Chemical Industry • Rubber • Pulp and Paper Industry • Cement • Oleochemical

B. Other Industry • Palm Oil • Building Materials • Plywood • Animal Feed

SEZ Tanjung Api-Api has the status of Special Economic Zone (SEZ) for export processing, logistic, industry, and energy which was newly launched by the Government of Indonesia in 2014. It has benefits for investors in terms of fiscal and non-fiscal incentives.

With the total area of 2,030 ha, SEZ Tanjung Api-Api is located in Palembang, South Sumatera Province. SEZ Tanjung Api-Api is managed by the government of South Sumatera Province. SEZ Tanjung Api-Api is the first area designed by the Government as the centre of integrated rubber, palm oil, and coal industry.

OVERVIEW SEZ TANJUNG API-API OVERVIEW SEZ TANJUNG API-API

INDONESIA is primed for economic take off. With debt to GDP ratio 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 7th-largest economy by 2030. In 2013 The ADB and The World Bank project Indonesia’s economy 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.

National GDP Growth Projection

International Credit Ratings: Indonesia Shares Investment Grade

BB+/STABLE BBB-/STABLE

May 2013 July 2013

OVERVIEW INDONESIAOVERVIEW INDONESIA

Source: IMF

Special Economic Zone

Tanjung Api- ApiThe Center of Integrated Rubber Industry

Artery RoadToll Road PlanDouble Track Railway PlanRiverGreen Open SpaceBasic Chemical Industry

Land Use Plan

Zone IV-1

Zone IV-1

Zone IV-2

Zone IV:Zone IV - 1: Green Open Space/Barier (Green Belt)Zone IV - 2: Green Open Space, Garden (Public Service Center)

Zone IV:Zone IV - 1: Green Open Space/Barier (Green Belt)Zone IV - 2: Green Open Space, Garden (Public Service Center)

Zone IV:Zone IV - 1: Green Open Space/Barier (Green Belt)Zone IV - 2: Green Open Space, Garden (Public Service Center)

Zone II:Zone II-1: Basic Chemical IndustryZone II-2: Other Industry

Zone I:Public - Private Zone Multifunction Zone, Comercial Zone, Park

Zone IV-2

Zone IV-2

Fiscal Facilities Non-Fiscal Facilities

No. Incentives Treat in SEZ

1. Income Tax AllowanceWill be given for the business entity and individual who run business in SEZ Tanjung Api-Api.

2. Value-Added Tax (VAT) & Luxury Sales Tax

Exempted for taxable goods.

3. Import DutiesPostponement for import goods to SEZ Tanjung Api-Api.

4. ExciseExempted for raw direct materials and supporting materials for production purposes.

5. Import Income Tax Not Levied

6. Tax Agency Incentives Not Levied

7. Property TaxReduction in compliance to the provision of law and regulation.

No. Incentives Treat in SEZ

1. Employment

Permission to hire foreign workers who • have position as directors or managers.Within the SEZ will be established:•

Wage council;1. Trade/Labor Unions to create 2. effective communication and harmonious industrial relation;Tripartite cooperation institution.3.

2. Immigration Easiness for foreign business people.

3. Land

Easiness to obtain land rights and land • acquisition;Granted land rights for those who • already have land.

4. SecuritySEZ Tanjung Api-Api will be a vital object (according to Indonesian police’s policy)

5.Local Government Supports

Tax and local retribution reductions• Commitment for SEZ administration's • operation.

2 Investment Incentives

3 Supporting Regional Infrastructure

RoadToll road development plan outside the area into SEZ Tanjung Api-Api. Provincial road Palembang-SEZ Tanjung Api-Api has been existing.

Water SupplyDevelopment plan of water system from Janedo River, Wombo River, Watudonggala River and Liku River

ElectricityDevelopment plan of major electric transmission connecting Lahat - Muara Enim - Prabumulih - Tanjung Api-Api.

Sea PortDevelopment plan of Tanjung Carat/Tanjung Api-Api Seaport that located 2.5 km far from SEZ Tanjung Api-Api.

WHY INVEST IN SEZ TANJUNG API-API?WHY INVEST IN SEZ TANJUNG API-API?

1 Best Location

Indonesia Investment Coordinating Board (BKPM)Jl. Gatot Subroto No. 44, Jakarta 12190,PO. Box 3186, IndonesiaPhone : +6221 5292 1334; 5292 1304Fax : +6221 5264 211; 5253 866Website : www.bkpm.go.idEmail : info@bkpm.go.id

invest inremarkable

Investment Commitment

Founded in 1994 as a small start-up company, HSL

has grown rapidly to become a key regional player in

the marine civil engineering sector.

PT Pupuk Sriwidjaja operates its business with the purpose to implement and carry out government’s policy and program in

economy and national development particularly in the fertilizer and other agribusiness industry.

• In the biggest of Indonesia rubber producing region. • Located near Indonesian Archipelagic Sea Lanes (ALKI 1) and

Malaka Strait.• Abundant water supply potential from nearby Banyuasin and

Telang River.• Located near Tanjung Carat Seaport area.

RailwayRailway network development connecting Muara Enim and Tanjung Carat Seaport.