Teak Plantations forTeak Plantations for SaleSale

June 2009

Sustainable Pacific Corporation (SPC) Sustainable Pacific Corporation (SPC)

And

PT. Bentang Persada Gemilang (BPG)Jl. Pecenongan 72, Komplex Redtop, Blok C9

Jakarta, 10120, IndonesiaPh (6221) 350 0162 Fax (6221) 381 4536

Email: bharianto_widjaja@yahoo.com

Investment for the FutureInvestment for the Future

Targeting Investors and Producers that: Need Teak Wood for their markets and consumers Need to invest in land, as an assets of sustainable value Need to protect their savings and wish to guarantee a profit Contribute with improvements in the environment People seeking a more peaceful and just society Investor looking for a good ROI

Coming From: Japan China Korea European Countries America Indonesia

Teak Plantations are located in Halmahera, a virgin Island of Indonesia

Initial Allocation of Land 2,000 Hectares (5,000 acres)

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Teak Plantations In HalmaheraTeak Plantations In Halmahera

Topics/Topik :

Teak Wood 4 The Company 5 Land Tenure in Indonesia 6 Business Opportunity 7 The Investment 9

◦ Payment Plan Plantation Management 11 Lot Sizes 12 Two Lots 13 High Productivity Teak Plant 15 Teak Plantation Maintenance 17

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Teak WoodTeak Wood

Teak is first class hard wood, with beautiful vain and color, of high density making the wood durable, and regarded as of great value for furniture, flooring, blinds, ceiling, mouldings and wood crafts

Teak Trees grow straight allowing a better utilization when cut. A new tree grows from the trunk of the previous tree

Now its current cultivation and cloning methods allow the harvesting every 5 years with 22 to 30 cms (9 to 12 inch) diameter at 1 meters high from the base of the trunk

Price of wood can be higher is you allow the tree more years before harvesting. Larger diameter allows the wood to be used in many more applications

Current wood supply in Indonesia is insufficient by 8 million m3. This creates a market opportunity

Indonesia is the world leading producer of Teak Wood with a 35% participation, and is also the leading teak consumer

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Teak Plantations are a long term investment, guaranteed by the land and its trees, growing its value with time

The CompanyThe Company

The Sustainable Development Corporation of the Pacific (SDCP) and its affiliated Indonesian company PT. Bentang Persada Gemilang (BPG) have acquired 30,000 Hectares of land (75,000 Acres) in the Island of Halmahera, which will be devote for sustainable development

2,000 hectares will be dedicated to cultivate Teak timber, and will be sold publicly to people of all nationality

The Company will provide Land certificates, physical tenure and holding of the land, and ownerships, to teak plantation investor

Investors can choose from three investment models:◦ buy the land◦ buy the land, including planting & harvesting services◦ buy into a passive guaranteed profit investment plan,

whereby the company provides full services

Investors agree and accept to protect the ecology of the island, and no insecticides, fungicides herbicides and/or chemicals will be used

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Company is responsible for creating the roads, providing compost and tree clones if they are required, facilitating the logistical services to ship products in and out of the island and providing supporting services to facilitate agricultural and living conditions

Company interacts with local and regional government officers to promote statues and regulation which promote sustainable development in the island

Halmahera is a Virgin Island from the kingdom of Ternate North of Maluku, belonging to Indonesia, and South of the Philippines

Note: Investor con choose to live in the land if so desired

Land Tenure in IndonesiaLand Tenure in Indonesia

An Indonesian national can hold up to 5 Hectares of Land and foreigners are not allowed to own land

However, the Company utilizing its company in Singapore and its company in Indonesia, creates the methods by which

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foreigners can legally hold the land as Indonesian nationals can, inheriting it to their children

Government issued land certificates will be provided to Indonesians. For foreign investors, the company will arrange the land certificates and deposited in a security box in Singapore

This provides land ownership, physical tenure of the land by any person, national or foreigner

Owner can use the land for living, for farming or growing food, for livestock, or for whatever was contractually agreed upon. Foreign retirees are welcomed to help develop the island

The InvestmentThe Investment

Teak Plantations are truly a phenomenal growing investmentTeak Plantations are truly a phenomenal growing investment

They provide physical land ownership, as the most solid of allThey provide physical land ownership, as the most solid of all

guaranteesguarantees

Teak wood is appreciated world wide, and regarded as goodTeak wood is appreciated world wide, and regarded as good

value for the money, providing price stabilityvalue for the money, providing price stability

Plantations are insured by external solid insurance company, ifPlantations are insured by external solid insurance company, if

the guaranteed profits model was chosen. Profit assurance is athe guaranteed profits model was chosen. Profit assurance is a

contractual guaranteed enforced by the courts of Indonesia orcontractual guaranteed enforced by the courts of Indonesia or

SingaporeSingapore

Company facilitates the resale of land if investor wishes toCompany facilitates the resale of land if investor wishes to

retire to increase its liquidity possibilitiesretire to increase its liquidity possibilities

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Investment can be fully paid, or over a 60 month period inInvestment can be fully paid, or over a 60 month period in

Indonesia Rupiah or US DollarsIndonesia Rupiah or US Dollars

In profit guaranteed investments, company provides a 50%In profit guaranteed investments, company provides a 50%

Return on Investment per year, payable every 5 yearsReturn on Investment per year, payable every 5 years

Company can offer volume discounts for purchases greaterCompany can offer volume discounts for purchases greater

than 10 hectares (40 acres) or 100 Hectares (400 Acres)than 10 hectares (40 acres) or 100 Hectares (400 Acres)

Business OpportunityBusiness OpportunityInvest In Teak PlantationInvest In Teak Plantation

(Figures in USD) Profit Ensured ** Buy the Land Buy Land + 5 yr service

Investment for one Hectare of Teak Plantation

$50,000 $35,000 $45,000

Includes

• Land ownership• Legal Notary Cost• Planting (once)• Maintenance(5 Yr)• Fertilizers (5 yrs)• Harvesting (once)• Selling/Shipping

(once)

**Insured against fire, theft & production of 300Mtr3 p/hectare

• Land ownership• Legal Notary Cost• Owners plants,

maintains, harvest, sells his own wood

Investors accept ecological use only

Not Insured. Property within secured grounds

• Land ownership• Legal Notary Cost• Planting (once)• Maintenance (5 Yr)• Fertilizers (5 yrs)• Harvesting (once)

Not Insured.Guaranteed

production of 300 mts3 p/hect

Profit on the 5 year from the sale of the teak wood

$120,000 USD or its equiv. In. Rp

Minus 30% for taxes and expenses

??? Success Fee of 20,000 USD at harvest

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Retains land value

ROI per year

Yes (35,000 to50,000)

50.6% ($84,000)

Yes (35,000 to50,000)

Depends on owner

Yes (35,000 to 50,000)

Depends on owner

** Insured with an Insurance CompanyOne Hectare is 10,000 sq meters, equal to 2.5 acres

Invest In Teak PlantationInvest In Teak PlantationContinuedContinued

(Figures in USD)(Figures in USD) Profit EnsuredProfit Ensured ****

Buy the LandBuy the Land Buy Land + 5 yrBuy Land + 5 yr serviceservice

Materials & Materials & Services:Services:•• Tree clonesTree clones•• Compost and Compost and

Comp. TeaComp. Tea•• Security Serv.Security Serv.

All IncludedAll Included

•• Teak clones $3.00 Teak clones $3.00 ea.ea.

•• Compost at $50 Compost at $50 Mtr3Mtr3

•• Pruning ServicesPruning Services•• Security Services Security Services

All IncludedAll Included

Duration of Duration of servicesservices(after initial 5 (after initial 5 years)years)

Land Cost is Land Cost is only paid once.only paid once. Other services Other services paid every 5 yrs paid every 5 yrs in accordance to in accordance to harvestharvest

Extend every 5 Extend every 5 year periodsyear periods•• Planting (once)Planting (once)•• Maintenance (5 Maintenance (5

Yr)Yr)•• Fertilizers (5 yrs)Fertilizers (5 yrs)•• Harvesting (once)Harvesting (once)•• Selling/ ShippingSelling/ Shipping

Planting services Planting services need to be need to be renewed every 5 renewed every 5 yrsyrs

Book Profit Ensured Book Profit Ensured services or 5 yr services or 5 yr services at any time services at any time at its market valueat its market value

Extend 5 yr periodsExtend 5 yr periods or change to Profit or change to Profit Ensured servicesEnsured services•• Planting (once)Planting (once)•• Maintenance (5 Maintenance (5

Yr)Yr)•• Fertilizers (5 yrs)Fertilizers (5 yrs)•• Harvesting (once)Harvesting (once)

Planting services Planting services need to be need to be renewed every 5 renewed every 5 yrsyrs

Other ServicesOther ServicesReal Estate Real Estate BrokerageBrokerage

Investors wishing Investors wishing to sell their land to sell their land can engage our can engage our Real Estate ServiceReal Estate Service

Investors wishing to Investors wishing to sell their land can sell their land can engage our Real engage our Real Estate ServiceEstate Service

Investors wishing Investors wishing to sell their land to sell their land can engage our can engage our Real Estate ServiceReal Estate Service

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Retains the valueRetains the value of land with its of land with its own rate of own rate of capitalizationcapitalization

Planted land has Planted land has greater value than greater value than empty landempty land

Planted land has Planted land has greater value than greater value than empty landempty land

Planted land has Planted land has greater value than greater value than empty landempty land

Investment Must Be Fully PaidInvestment Must Be Fully Paid InIn

However, 30% or more in down payment is also possible, and remaining amount paid up to 5 years

Financing in Indonesian Rupiah

US Dollars

Max Fin p/hect. (70%) Rp 350,000,000 $35,000Interest Rate PA 18% 9%Payments (60 max) Rp 8.887.700 $726.54

Illustration of the “Profit Ensured” model over a 30 yr period

(Figures are in Indonesian Rupiahs)

PeriodPrice m3

(1)

Investment and Cost of

Operation (2)

Expected Revenue

p/Hect. (3)

Distributed Guaranteed

Profit (4)

PT. BPG-30% Taxes & Expenses

First 5 Yrs 4.000.000

500.000.000Initial Inv.

1.200.000.000 840.000.000 360.000.000

Next 5Yrs (10) 4.500.000240.000.000

Est. Cost1.350.000.000 945.000.000 405.000.000

Next 5Yrs (15)5.000.000

280.000.000Est. Cost

1.500.000.000 1.050.000.000 450.000.000

Next 5Yrs (20)5.500.000

330.000.000Est. Cost

1.650.000.000 1.115.000.000 495.000.000

Next 5Yrs (25) 6.000.000 390.000.000 1.800.000.000 1.260.000.000 540.000.000

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Est. CostNext 5Yrs (30)

6.500.000460.000.000

Est Rev1.950.000.000 1.365.000.000 585.000.000

Notes:1. Moderate price increases were projected for the wood2. The investment is made the first 5 years. Thereafter, the estimated maintenance

and harvesting cost is included. Price can change in accordance to reality3. Wood price times 300 m3 expected in wood production. 4. Guaranteed net income after deducting 30% of the revenue to pay for taxes and

other final expenses5. Indonesian income tax and other expenses

Plantation ManagementPlantation Management

The company develops/manages privately owned Teak Plantations utilizing policies and procedures that best contribute to social, economical and environmental concerns, in compliance to national & international laws in the subject

Teak Plantation management maintains “sustainable development” in the present and the future, as the foreground of its activities and actions, and is poised to meet all forest/tree harvesting certification requirements as may arise

No insecticides, fungicides, pesticides or artificial chemicals are used, in the Teak Plantations or the surrounding farms, to preserve the island free of contaminants

Teak Plantation managers and investors, contractually agree to use compost, and biological and organic fertilizers, for growing and nurturing healthy crops

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Compost Production

Local people employed are adequately compensated and receive medical benefits to provide for a healthy sustainable living standard

Teak Plantations are being developed in plateaus where tall grass existed. The land previously unutilized, now form part of the sustainable development efforts of the island

Ecological indicators remain intact. With Teak trees, should help to produce Oxygen.

Lot SizeLot Size

A lot size is 10,000 (one hectare) +200 meters given by the company

The 200 meters provided by the company are in the front of the lot as shown on right

Each lot has access to the street in two sides

The company reserved lot is for future use, and can serve as decoration for the plantation or the Estate. Investor can not use this land nor erect any construction in this area

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Drawing not to scale

100 mtrs

1 hectare = 10,000 sq mtrs

1 hectare = 2.5 acres

5 mtrs 5 mtrsReserved for Company

Usage, decoration

2 ways

Street / Jalan

Shoulder

Shoulder

Two LotsTwo Lots

Combines the land of both lots to create a 200 Mts lot in the middle like is shown on the graph below

However, Investors and the company can accommodate the amount of land reserved for the company in a way which both can better utilize the land

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Drawing is not in scale

100 mtrs

1 hectare = 10,000 sq mtrs

1 hectare = 2.5 acres

5 mtrs 5 mtrsReserved for Company

Usage, decoration

2 ways traffic

Street / Jalan

Shoulder

Shoulder

Drawing is not in scale

100 mtrs

1 hectare = 10,000 sq mtrs

1 hectare = 2.5 acres

5 mtrs 5 mtrsReserved for Company

Usage, decoration

20 Lots Are Located In An Area Of One Kms Long By 260 Mts Wide

Agricultural Clusters Are Comprised Of 12 Blocks

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High Productivity Teak PlantsHigh Productivity Teak Plants

Teak growing technology has evolved over the past few years and can now deliver wood faster providing specific conditions are met

Plants are created and monitored in a nursery. Then they are planted in good fertile soil for two months to get them ready for the final planting grown

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Plants & Roots are ready to be planted after 3 months

High Yield Teak PlantsHigh Yield Teak PlantsIndonesian Teak Clones yield higher volumes Indonesian Teak Clones yield higher volumes

(300 mtrs3/Hectare)(300 mtrs3/Hectare)

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Selecting the Best Stems

Teak Plantation MaintenanceTeak Plantation Maintenance ProceduresProcedures

Each Teak Plantations maintain a running operating log

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JUNClone

MyanmarThailandJPPNatural

The Log begins when the land is bought by an investor or producer

Photos are taken of the land which include the four (rectangular) or more GPS points that limit the plantation

The log is updated every time work is performed on the land

Planting teak provides a unique id number to maintain an inventory of each plant

The Tree circumference is measured every 6 months, at the same high level and recorded in the log. Timber growth is calculated and evaluated versus templates to determine their progress, and or take necessary corrective or improvement measures

Every year at least 10 Mtr3 per hectare of compost are applied to the Plantation. All fertilizing or plague fighting activities are recorded

Pruning and Thinning is equally recorded. Inventory of the cut trees are reduced from the standing tree inventory. Irrigation is provided once a month during dry season

Photos of the Plantation are taken every year, and kept during a 30 year period

Care is exercised at all times to prevent fires, pilferage, and plague infestation. Although the Teak Plants and trees generate a plague resistant resin, trees must be physically inspect to ensure their health, or deal with its cure immediately

Animals that come to live in the Teak plantation will not be harmed

Owners of the Plantation will receive a copy of the Plantation Operating Log upon request or automatically once every year

For more information contact

PT. Bentang Persada Gemilang (BPG)Jl. Pecenongan 72, Komplex Redtop, Blok C9Jakarta, 10120, IndonesiaPh +6221 350 0162

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