INVESTMENT OPPORTUNITIES IN INDONESIA

NO

DISTRICT

ATTITUDE 100-500 (Ha)

200 200 0.51

%
100 -

500-1000 (Ha)
16,025 1,215 1,050 1,100 1,200 20,590 52.59

%
77.83 5.199 5.10 5.34 5.83

> 1000 (Ha)

4,500 12,950 910 18,360 46,1990

%
24.51 70.53 4.1996

TOTAL AREA (Ha)

20,525 1,215 14,200 1,100 2,110 39,150 100.00

SUNGAI PENUH C ITY

1. Tanah Kampung 2. Sungai Penuh 3. Hamparan Rawang 4. Pesisir Bukit 5. Kumun Debai TOTAL Percentage

GENERAL DESCRIPTION Geographical Location and Areal Width Geographic location of Sungai Penuh City is between 1011432 to 101o2731 East Longitude and 02o0140 to 02o1454 South Latitude. With a total area of 39,150 ha, consisting of 23,177.6 ha (59.2%) of Kerinci Sebelat National Park (TNKS) area, 15,972.4 ha (40.8%) residential cultivation area and with a population of 87,911 inhabitants. Historically, Sungai Penuh City formed under the Law No. 25 of 2008 on the Establishment of Sungai Penuh City of Jambi Province, passed by the House of Representatives dated July 21, 2008. The City covers 5 areas namely: 1. Sungai Penuh District 2. Hamparan Rawang District 3. Pesisir Bukit District 4. Kumun Debai District

5. Tanah Kampung District. Under the above Law the City boundaries as the following: 1. The Northern side with Depati Tujuh District of Kerinci Regency; 2. The Southern part with Sitinjau Laut District and Keliling Danau District of Kerinci Regency; 3. The Western border with Pesisir Selatan District of West Sumatra Province and Mukomuko District of Bengkulu Province; 4. The Eastern side with Air Hangat Timur District of Kerinci Regency. Sungai Penuh City is situated on hilly highland and surrounded by Bukit Barisan Mountains and dense forest with the level of 100 - 1000 m above sea level causing the City has a cool and comfortable climate.

year (2008) of IDR. 1,169.29 billion. Meanwhile, GENERAL POLICY IN INVESTMENT SECTORS GRDP of the City based on constant prices in OF THE CITY IS NOT APART FROM VISION AND 2009 was IDR. 518.62 billion, and in 2008 was MISSION OF 2010-2011. IDR. 487.87 billion. Referring to the priority of Sungai Penuh City there are main pillars of development that became Year 2009 Year 2008 development priorities as foundation of independence in Prices Constant Price Constant Price Prices accordance with the Vision and (IDR) (IDR) (IDR) (IDR) Mission of Sungai Penuh City namely: To Realize Sungai Penuh City 518.62 487.87 1,308.55 1,169.29 AsKota Pusaka, The Centers billion billion billion billion Of Trade, Services, Education, Culture And Tourism. With Development Pillars: 1. Business Development of People-Based Economy; 2. Regional Facilities and Infrastructures Improvement; 3. Quality of Human Resources (HR) and Public Services Improvement; 4. Manifestation of Good Governance; 5. Management of Natural Resources, Environment & Tourism. GRDP OF SUNGAI PENUH CITY Gross Regional Domestic Product (GRDP) is the basis of measuring the value added arising from the existence of various economic activities within a region. Sungai Penuh City based on current prices in 2009 was IDR. 1,308.55 billion.Thefigureincreasedfromtheprevious When compared with the year 2000, index of 2009 GRDP growth at current prices amounted to 382.67% or an increase of 3.83 times. Meanwhile, when compared with the previous year, GRDP growth in 2009 at current prices rose 1.12 times and at constant prices increased by 1.06 times. GRDP PER CAPITA OF SUNGAI PENUH CITY The development of GRDP per capita both at current and constant prices during the period of 2008-2009showedanencouragingfigurebased on current prices, GRDP per capita in 2008 was IDR. 14.60 million per year and increased to IDR. 16.06 million in 2009. Meanwhile, GRDP per capita at constant prices of 2008 reached IDR. 6.09 million and a significant increase to IDR. 6.41 million in 2009.

SUNGAI PENUH CITY

NO

DISTRICT REGION
1,100 20,525 1,215 2,110 14,200 39,150

AREA (HA) TNKS

12,260.60 83.2 10,833.80 23,177.6

RESIDENTAL/ CULTIVATION
1,100 8,264.4 1,215 2,026.8 3,366.2 15,972.4

TOTAL POPULATION
10,038 33,693 15,915 19,650 8,615 87,911

1. Tanah Kampung 2. Sungai Penuh 3. Hamparan Rawang 4. Pesisir Bukit 5. Kumun Debai TOTAL

96

97

INVESTMENT OPPORTUNITIES IN INDONESIA

TARGET OF ECONOMIC GROWTH AND POVERTY REDUCTION IN FIGURES SUNGAI PENUH CITY 2009 - 2012

Economic Growth
2009 6,30 2010 6.4 2011 6.5 2012 6.5 to 7

Percentage (%) of Poor People

2009 6.96 2010 6.42 2011 6.00 2012 5.5 to 5.9

Sungai Penuh City is not ideal for a city. This can be seen with the number of street hawkers who peddle merchandise on road near Bajure main market. The number of street hawkers at the moment is as much as 1,000 peddlers. Looking at the current market conditions are far from the concept of comfort and cleanliness market. So therefore the City needs development of semi-modern traditional markets. To support the development of semi-modern traditional markets, the City government is managing an area of 6 ha for the development. 2. Modern Market The high interest in purchasing a good of society of the City and outside the City causes widespread establishing of mini markets. Based on recent phenomenon, Sungai Penuh City is suitable site to be built modern markets (such as Ramayana, H y p e r m a r t , Matahari, Carrefour, Hero, etc.) as well as the wholesale markets. SERVICE SECTOR 1. Educational Services Formationofhumanfiguresoastoproduce goodhumanresourcesisstronglyinfluencedby education, although education can be carried out through various ways, but formal education is recognized as a key indicator in measuring educational performance of a region. The educational conditions of Sungai Penuh City are

HUMAN DEVELOPMENT INDEX (IPM) SUNGAI PENUH CITY 2008 - 2009

Description
Life Expec Literacy Rates (percent) Average School period (years) Human Development Index (IPM)

Year 2008
70,84 97,22 9,10 76,29

Year 2009
70,90 97,23 9,18 79,52

as follows: The high interest of the people who live in outside Sungai Penuh City such as Kerinci, South Solok, South Pesisir and North Bengkulu want to study in the City is an indication of investment opportunities in education sector. Potential investments in education sector in the City are as follows: 1. Establishment of schools based on Local Superiority; 2. Establishment of University (supported by some colleges that already exist). 3. Center for the study of tropical forests, in order to facilitate everlasting forest utilization; 4. Institutions based on Information Technology (IT). TOURISM SECTOR 1. As the Center for Tourism Services As a city surrounded by Kerinci District which is rich in tourism potential, Sungai Penuh City is potentially to be developed as a center of tourism services in order to accommodate and facilitate all the needs of tourists visiting Kerinci Regency and the surrounding area. Sectors that can be developed are: - Hotels - Transportation facilities/ infrastructure -Banking - Souvenirs Center - Money changer - Business Center

INVESTOR FASCINATION Before the expansion, Sungai Penuh City is the capital of Kerinci Regency. The City is located in the midst of Kerinci Regency so it is still continued as the centers of administrative, trade, services and education until now. To support the development of investment, the City has adequate supporting facilities such as transportation (land and air), electricity supply, telecommunication, banking and others. The important things to be a recommendation for investors to invest in the City are: 1. Having the atmosphere of political life, security, social and culture that is relatively more favorable compared with other regions; 2. Abundant natural resources and potential for optimally processed; 3. Having well in and out accessibility of goods; 4. Means and infrastructures of Transportation and communication are good enough; 5. Possessed adequate infrastructure; 6. Society cultures are opened and dynamic and easy to assimilate, adapt to something new that supports the realization of the conduc-

iveness investment climate. To support the activities of investors, Sungai Penuh City has a very good accessibility. The Citys mileage to other cities in Jambi Province and other city outside of the Province, are as follows: 1. Sungai Penuh - Jambi City is 419 km and takes about 10 hours by land; 2. Sungai Penuh - Padang is 260 km via South Solok Regency and takes about 5 hours by land; 3. Sungai Penuh-Tapan is 64 km and takes about 1.5 hours by land; 4. Sungai Penuh-Bangko is 164 km and takes about 3.5 hours by land. INVESTMENT PENUH CITY TRADE SECTOR 1. Semi Modern Traditional Markets Existing conditions of traditional market of OPPORTUNITIES OF SUNGAI

SUNGAI PENUH CITY

No.
1. 2. 3. 4. 5.

Type of School
Kindergarten Elementary School SMP SMA College

Total (units)
39 72 11 13 6

Number of Students
1756 12726 4278 5073 8367

98

99

INVESTMENT OPPORTUNITIES IN INDONESIA

- Tour and travel bureau - Convention Center - Restaurant - Shopping center - Tour guide service - Immigration Services 2. As the Center of Tourist Attractions There are natural tourism objects in the City including: Hills of Khayangan and Semancik, Sentiong Hill, Tapan Hill Park, and Puti Senang Flower Garden. While cultural tourisms are: Asyeik Dance, Iyo-Iyo Dance, Rangguk Dance, Rentak Kudo Dance, Ambung Gilo Dance, Bamboo Flute Arts, Sike Rebana, and Siko feast procession (Traditional festivity). Historical tourisms are: Pondok Tinggi Great Mosque, Grand Mosque of Sungai Penuh, Batu Gong Nenek Betung in Kumun Debai District, Sorban Stone in Pesisir Bukit District, Batu Puti Senang in Sungai Jernih Village, Tabuh Larangan in Pondok Tinggi Sub-District and in Hamparan Rawang District, and Original Script of Kerinci/Sungai Penuh (Incong Script). Besides supported attractions above, the City is surrounded by Kerinci

PLANTATION SECTOR 1. Cinnamon (Cassia Vera) Most of the population of Sungai Penuh City cultivates cinnamon (cassia Vera). Production of cinnamon (cassia Vera) at in 2009 reached 257 tons, and in 2010 amounted to 230 tons. Sungai Penuh City gets cinnamon (cassia Vera) supplies from Kerinci Regency and surrounding areas with an average supply of 53,414 tons per year. Number of cinnamon (cassia Vera) marketed in 2009 was 53,490 tons and in

City gets coffee supplies from Kerinci Regency and surrounding areas with an average supply of 1,900 tons per year. Production of coffee marketed in 2009 was 1,982 tons and in 2010 increased to 1989 tons. The society of Sungai Penuh City generally cultivates Robusta coffee. Seeing the potential that exists in Sungai Penuh City, it is very suitable to develop: - Coffee as export commodity; Establishment of coffee manufacture. AGRICULTURAL SECTOR 1. Potato Sungai Penuh makes potato as the first flagship product in the agricultural sector. Production of potatoes of the city in 2009 was 81 tons and in 2010 increased to 83.98 tons. Sungai Penuh City gets potato supplies also from Kerinci Regency and surrounding areas with an average supply of 50,000 tons per year. Marketed potato production in 2010 was 50,083.98 tons. With such potential for the City is very suitable to develop: - Establishment of the snack factory made from raw potatoe.

Sebelat National Park (TNKS) covering an area of 23,177.6 ha (59, 2%) of the total area of the City which has natural capital of biodiversity and conservation zones with potentially to be developed as ecotourism: Tourism can be developed in Sungai Penuh City as follows: 1. Recreation Tourism (Water boom); 2. Ecotourism (grand forest park of the city, outbound training); 3. Special interest tourism objects (bird and plant watching) 4. Cultural tourism.

2010 increased to 53,644 tons. Most of the export of Indonesian cinnamon comes from Kerinci, in international trade, cinnamon is known as Korintji cassia Vera/ cinnamon. Seeing the existing potential, in Sungai Penuh City there are very suitable to develop: - Management of cinnamon (cassia Vera) as an export commodity. - As a raw material for essential oils. - Establishment of the cinnamon (cassia Vera) manufactures. 2. Coffee Sungai Penuh City makes coffee as the second best selling products in the plantation sector. Production of coffee in 2009 was 81 tons, and in 2010 increased to 83.98 tons. The

SUNGAI PENUH CITY

100

101

INVESTMENT OPPORTUNITIES IN INDONESIA

INVESTMENT VALUE PROJECTION (IDR/US$)

IDR. 10 billion IDR. 3 billion

IDR. 5 billion

IDR. 3 billion

IDR. 6billion

PROFILE

53,644 ton 1,989 ton

50,083.98 ton

PRODUCTION CAPACITY

MAYOR OF SUNGAI PENUH CITY

earnest. Ir.H. Akmal Thaib took basic education in a state elementary school, SD Kerinci, until graduating in 1968, then went on to SMPN I

of Unit Price Analysis of Road and Bridge Works in Bandung in 1997, School of First Level Official (SPAMA) in Medan in 1998,Training on IIRMS (Indonesia Inter Urban Road Management System) in Medan in 2000, School of Secondary LevelOfficial(SPAMEN)inJakartain2003and Comprehensive Training on Presidential Decree No. 80 of 2003 in Jakarta in 2006. Father of three children started his career from the City Road Planning Sub-section of City Development of the Directorate-General of Bina Marga, the Ministry of General Works in 1983, Leader of Pedestrian Bridge SubProject of Cawang-Muara Karang Project in Jakarta in 1985, Assistant of Road Technical Planning on Bina Marga Division of General Works Service of Riau Province, Leader of Riau P & T-Nas Sub-Project in 1993-1997, on Head of Road Technical Section Planning Marga

PUSAKA, THE CENTERS OFTRADE, SERVICES, EDUCATION, CULTURE AND TOURISM), then the investment will become driving force. Economy improvement with direct impact will create employment, reduce poverty and increase welfare. To encourage economic growth targets, it is required investment from both government and private institutions. The new investment activity will have an impact if it has been realized its implementation into production activities. Investment opportunities in Sungai Penuh City supported Good by an adequate is regions also a to potential. infrastructure contributing infuse capital

USA, Europe, and Asia Indonesia

MARKET ORIENTATION

Indonesia

OFFERED INVESTMENT OPPORTUNITY (BUSINESS SECTORS)

Cinnamon processing manufacture Coffee processing manufacture

Potato-based Snack manufacture

as born in Kerinci on February 6, 1955. Since childhood he has received guidance to always draw an education in

factor

investor

interest in the City. Various efforts have been made by Municipality development Government program/ to inform continually the plan and introducing the Citys potential, both at the regional, national and international promotions levels in with different

School& University

DATA TABULATION ON REGIONAL SUPERIOR BUSINESS SECTORS FOR DOMESTIC AND FOREIGN INVESTMENTS SUNGAI PENUH CITY

Recreation Park

Kerinci until 1971. After that, he continued his education to SMAN 1 Kerinci and graduated in 1974. While his engineering degree in Civil Engineering Department of the University of Indonesia was achieved in 1983 and master degree (S2) at the High School of Economics in 1983. In addition to formal education, the husband of Hj. Mursida Thamrin also actively took part in education courses and training exercisessuchasTrafficManagementinKorea in 1985, Training Instructor on Course of Rural Road at Padang in 1989, Road Planning Making Training on Soft Ground in Medan in 1990, IRMS Implementation Training in Jakarta in 1991, Training Preparation/ Assessment of Environmental Information (PIL, AMDAL) of General Work Sector in Medan in 1991, Training on Planning of Rigid/Flexible Hardening Street in Jakarta in 1993, Education of Project Prime Officials (PIP) XV Course in Bandung in 1993, Education of Master in Management (MM) in Jakarta in 1996-1998, General Administration Training (Adum) in Medan in 1996, ISO 900

Bina

OWNERSHIP STATUS AND PRICE

Municipality Gov.

Municipality Gov. Municipality Gov.

Municipality Gov.

Municipality Gov.

Division of General Works Service of Riau Province in 1996-2000, Project Manager of Planning and Technical Supervision of Roads and Bridges (P3JJ) of Riau, Head of Technical Planning Roads and Bridges in 1997-2000, Head of Road Technical Planning Section of Bina Marga Division of General Works Service of Jambi Province in 2001, Head of Urban Development and Regional Infrastructure Division of Kimpraswil of Jambi Province in 2001-2004, Head of Bureau of Supplies of Jambi Province in 2004-2009, Staff of Regional Secretariat of Jambi Province in 2009 and Acting Mayor of Sungai Penuh City in 2010. In order to realize the vision of Sungai Penuh City (TO REALIZE SUNGAI PENUH CITY ASKOTA

circumstances. The Citys fascination as an investment destination is supported by the presence of strategic infrastructure and support from government, community and conveniences of investment licensing mechanism provided as well as a conduciveness climate. As a medium of communication and information with the wider community about the implementation of transparent and accountable governance and efforts to improve service to the public through the Internet, The Municipality Government publishes information through the Website. http:// www.sungaipenuhkota.go.id.

AREA WIDTH (HA)

2,5 Ha 1 Ha

2 Ha

2 Ha

2 Ha

SUNGAI PENUH CITY

INVESTMENT LOCATION

Sungai Penuh City Sungai Penuh City

Sungai Penuh City

Sungai Penuh City Education

Plantation - Cinnamon (cassia-vera) - Coffee

SECTOR (SUB SECTOR)

Agriculture - Potato

Sungai Penuh City

NO

102

Tourism

Training in Medan in 1997, Instructor in Training

103