Teak Plantations for

Sale

June 2009

Sustainable Pacific Corporation (SPC)

And

PT. Bentang Persada Gemilang (BPG)

Jl. Pecenongan 72, Komplex Redtop, Blok C9
Jakarta, 10120, Indonesia
Ph (6221) 350 0162 Fax (6221) 381 4536
 Email: bharianto_widjaja@yahoo.com

Investment 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 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 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 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

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

 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 Indonesia

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 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
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 Investment
 Teak Plantations are truly a phenomenal growing investment

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

guarantees

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

value for the money, providing price stability

 Plantations are insured by external solid insurance company, if

the guaranteed profits model was chosen. Profit assurance is a

contractual guaranteed enforced by the courts of Indonesia or

Singapore

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 Company facilitates the resale of land if investor wishes to

retire to increase its liquidity possibilities

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

Indonesia Rupiah or US Dollars

 In profit guaranteed investments, company provides a 50%

Return on Investment per year, payable every 5 years

 Company can offer volume discounts for purchases greater

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

Business Opportunity
Invest In Teak Plantation

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

service
Investment for
one Hectare of $50,000 $35,000 $45,000
Teak Plantation
• Land ownership • Land ownership • Land
• Legal Notary • Legal Notary ownership
Cost Cost • Legal Notary
Includes • Planting • Owners plants, Cost
(once) maintains, • Planting
• Maintenance( harvest, sells (once)
5 Yr) his own wood • Maintenance
• Fertilizers (5 (5 Yr)
yrs) • Fertilizers (5
• Harvesting Investors accept yrs)
(once) ecological use only • Harvesting
• Selling/Shippi (once)
ng (once) Not Insured.
Property within
secured grounds
**Insured

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 against fire, Not Insured.
theft & Guaranteed
production of production of 300
300Mtr3 mts3 p/hect
p/hectare

Profit on the 5 $120,000 USD ??? Success Fee of

year from the or its equiv. In. Rp 20,000 USD at
sale of the teak Minus 30% for harvest
wood taxes and
expenses
Yes (35,000 to
Retains land Yes (35,000 to 50,000) Yes (35,000 to
value 50,000) 50,000)

Depends on owner
50.6% ($84,000) Depends on
ROI per year owner
** Insured with an Insurance Company
One Hectare is 10,000 sq meters, equal to 2.5 acres

Invest In Teak Plantation

Continued

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

** service
Materials & • Teak clones
Services: $3.00 ea.
• Tree clones • Compost at $50
• Compost and All Included Mtr3 All Included
Comp. Tea • Pruning Services
• Security Serv. • Security Services
Duration of
services Extend every 5 Book Profit Ensured Extend 5 yr periods
(after initial 5 year periods services or 5 yr or change to Profit
years) • Planting (once) services at any time Ensured services
• Maintenance (5 at its market value • Planting (once)
Yr) • Maintenance (5

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 • Fertilizers (5 Yr)
yrs) • Fertilizers (5
• Harvesting yrs)
(once) • Harvesting
• Selling/ (once)
Land Cost is Shipping
only paid once. Planting services
Other services need to be
paid every 5 yrs Planting services renewed every 5
in accordance to need to be yrs
harvest renewed every 5
yrs
Other Services
Real Estate Investors wishing Investors wishing to Investors wishing
Brokerage to sell their land sell their land can to sell their land
can engage our engage our Real can engage our
Real Estate Service Estate Service Real Estate Service

Retains the value Planted land has Planted land has Planted land has
of land with its greater value than greater value than greater value than
own rate of empty land empty land empty land
capitalization

Investment Must Be Fully Paid

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

Financing in Indonesian US Dollars

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

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

(Figures are in Indonesian Rupiahs)

Investmen Distribute
Expected PT. BPG
Price t and Cost d
Revenue -30%
Period m3 of Guarantee
p/Hect. Taxes &
(1) Operation d Profit
(3) Expenses
(2) (4)
500.000.00
4.000.0 1.200.000. 840.000.0 360.000.0
0
First 5 Yrs 00 000 00 00
Initial Inv.
240.000.00
Next 5Yrs 4.500.0 1.350.000. 945.000.0 405.000.0
0
(10) 00 000 00 00
Est. Cost
Next 5Yrs 280.000.00
5.000.0 1.500.000. 1.050.000. 450.000.0
(15) 0
00 000 000 00
Est. Cost
Next 5Yrs 330.000.00
5.500.0 1.650.000. 1.115.000. 495.000.0
(20) 0
00 000 000 00
Est. Cost
Next 5Yrs 390.000.00
6.000.0 1.800.000. 1.260.000. 540.000.0
(25) 0
00 000 000 00
Est. Cost
Next 5Yrs 460.000.00
6.500.0 1.950.000. 1.365.000. 585.000.0
(30) 0
00 000 000 00
Est Rev
Notes:
1. Moderate price increases were projected for the wood
2. The investment is made the first 5 years. Thereafter, the estimated maintenance
and harvesting cost is included. Price can change in accordance to reality
3. 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 expenses
5. Indonesian income tax and other expenses

Plantation Management
Compost Production

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 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
 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 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

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 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

100 mtrs

Drawing not to scale

1 hectare = 10,000 sq mtrs

1 hectare = 2.5 acres

5 mtrs 5 mtrs
Reserved for
Company
Usage,
decoration

Shou
lder
2 ways

Street /
Jalan
Shou

Two 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

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 company in a way which both can better utilize the
land

100 mtrs 100 mtrs

Drawing is not in scale

Drawing is not in scale

1 hectare = 10,000 sq mtrs 1 hectare = 10,000 sq mtrs

1 hectare = 2.5 acres 1 hectare = 2.5 acres

5 mtrs 5 mtrs 5 mtrs 5 mtrs

Reserved for Reserved for
Company Company
Usage, Usage,
decoration decoration

Shoulder
2 ways traffic

Street / Jalan
Shoulder

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

Mts Wide

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Agricultural Clusters Are Comprised Of 12 Blocks

High Productivity Teak Plants

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 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
Plants & Roots are ready to be planted after 3 months

Selecting the Best Stems

High Yield Teak Plants

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Indonesian Teak Clones yield higher volumes
(300 mtrs3/Hectare)

JPP Myan JUN

Natur
Thaila Clone

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 Teak Plantation Maintenance
Procedures
 Each Teak Plantations maintain a running operating log

 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 C9
Jakarta, 10120, Indonesia

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Ph +6221 350 0162

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