FEASIBILITY STUDY REVIEW

Aceh International Fishing PortLAMPULO - BANDA ACEH - REPUBLIC OF INDONESIA

Prepared by:

Government of Aceh

HE. President Islamic Development Bank (IDB) Jeddah, HE. Acting Governor of Aceh and President Al-Hilal Group in Banda Aceh

(8 May 2012)

HE. Director Islamic Development Bank (IDB) Asia-Facifikand President Al-Hilal Group in Kuala Lumpur - Malaysia

Officer of Directorate Jeneral Ministry of Marine and Fishery Jakarta and President Al-Hilal Group in Jakarta

Presentation of Aceh International Fishing Port by Acting Aceh Governor to Minister of National Development in Jakarta

Wali Nanggroe, Aceh Governor, Dr. Alwi Shihab with Team and President Al-Hilal in Jakarta

Presentation of Aceh International Fishing Port by Al-Hilal Group to The Potential Developer United Engineering Malaysia Berhad-Kuala Lumpur

Presentation of Aceh International Fishing Port Feasibility Study by Aceh Gov., Consultant, Alhilal Group to Director Jeneral Ministry of

Marine and Fishery in Jakarta ( 7 Feb. 2013 )

table of contents

Chapter IIntroduction1.1. General1.2. Background1.3. Aims and Objectives 1.4. Conditions location

Chapter IIDescription Location2.1. Conditions Locations2.1.1. Geography2.1.2. Topography2.1.3. Bathymetry2.1.4. Tidal2.1.5. Current2.1.6. Wave2.1.7. Sedimentation2.1.8. Wind Data2.1.9. Soil Mechanics

2.2. Socio Economic Fishery2.2.1. Profile PPS Lampuloa. Overviewb. Conditions Lampulo Demographicsc. Population

2.2.2. Socio-Economic Conditionsa. Social Conditions1. Employment2. Quality Human Resource Devp.b. Economic Growthc. Indicators of Economic Growthd. Aceh Economic Growthe. Public Perception Of Relocation Lampulof. Sharing Systemg. Institutional Lampulo

2.3. Problems2.3.1. Functional Constraints2.3.2. Structural Problems

2.4. Government Policies2.4.1. Fisheries and Maritime Affairs Policy2.4.2. Vision, Mission and Strategy for Fisheries Development

Chapter IIIFACILITY PLANNING NEEDS3.1. Basic Planning3.1.1. Operational Pattern PPS Lampulo3.1.2. Operational Pattern 3.1.3. Pattern Fish Handling

3.2. Type Facilities3.2.1. Principal Facility3.2.2. Fungsional Facility3.2.3. Support Facility

3.3. Spatial Concept Lay Out3.3.1. General3.3.2. Plan Zonase3.3.3. Institutional3.3.4. Access and Circulation

3.4. Facility Needs Analysis3.4.1. Basic Assumptions3.4.2. Program Space Needs3.4.3. PREPLAN FIGURE

3.5. Master Plan Layout3.5.1. Investment Cost Estimation3.5.2. Implementation Schedule

CHAPTER IVImplementation and Project Justification4.1. Port Management4.1.1. Introduction4.1.2. Responsible for activities4.1.3. Organizational Structure of Fishery Port4.1.4. Conclusion

CHAPTER VECONOMIC AND FINANCIAL EVALUATION5.1. Rationale5.2. Order and Benefits Project5.3. Economic Internal Rate of Return5.4. Sensitivity Analysis5.5. Benefits of Investment Development

CHAPTER VICONCLUSION

INTRODUCTION

Realizing the extent of the sea so possessed the Aceh province has initiated thedevelopment of marine resources. Development and Fisheries SectorDevelopment has a dimension that is very broad and strategic, especially in theprovision of employment and improved living standards for people hit hard bythe ongoing conflict and natural disasters, the development of the fisheriessector is expected to provide a greater contribution to local development,especially for the public welfare in the region Lampulo, mostly fishermen andfarmers cultivating communities.Feasibility study report was made in order to plan the development of CoastalFishery Port (PPP) to Ocean Fishing Port (PPS) to determine the value of thefeasibility of the development plan.

ObjectiveThe purpose of this work was to determine the feasibility of the developmentplan Aceh International Fishing Port - Lampulo at the planned location alongwith all targets being used as the basis for policy.

Economic-politically, some reasons that justify the

international fishing port development idea in Banda Aceh, are:Firstly, the Aceh water territory is the gateway of international

maritime trade route that links the Indonesian waters with the countries,such as Thailand, Vietnam, Cambodia, India, Iran, the Middle East, Africaand others.

Secondly, the Indonesian Ocean with its EEZ waters that islocated within the Aceh territory has not experienced excessiveexploitation, thus, if developed in the framework of area development inwhich Sabang is as its development center will be able to become a neweconomic power basis in the western region of Indonesia after Batam.Viewed from the international political stand point, development ofSabang will form a new economic buffer that is able to compete withSingapore and Malaysia so that implies to the enactment of AFTA andWTO.

Thirdly, in national politic basis, development of this catch fishingis expected to be able to provide the political impact on the strengtheningof national integrity.

Development of catch fishing post-earthquake and tsunami disasters in AcehProvince is expected to be a source of newgrowth (engine of growth) to theregional economy. The important thingthat much supports the fishing activities isthe availability of a fishing port that isadequate and able accommodate variousintegrated and environmentally friendly

industry oriented maritime and fishingactivities.

Aceh: West Gate Indonesia

from the past….

Historically in the 17th century,

Bandar Aceh Darussalam had ever

enjoyed its golden era under the

great leader Sultan Iskandar Muda

(1607-1636). According to studies

by the historians (Denis Lombard),

this policies effect of his

preceding Sultan (Sultan Alaiddin

Riayatsyah Sayyid al-Qahhar -1630

and Sultan Alaiddin Riayatsyah

Sayyid al-Mukammil-1604) that

have made Bandar Aceh as a

Maritime Kingdom and able to

maximize its maritime potency.

This strategic policy has

evidentially brought the Aceh

Kingdom to reach its golden era

and brought prosperity to its entirecommunity.

today….

Aceh province has a landarea of 57,365.57 km2,coastline of 1,660 km long,the sea water area of 295,370km2, consisting of territorialwaters and islands coveringan area of 56,563 km2 andthe Exclusive Economic Zoneof 238,807 km2. This regionconsists of a cluster of largeand small islands amountingto 180 islands. There aremore than 3,000,000 ha virginforest with 173 importantrivers that make Aceh most

potential areas in maritimeand fishery sector.

opportunity of fishery industry

The potency of territorial waters

and islands of Aceh is estimated

at 220,090 tons and the EEZ at

203,320 tons. The potential

maximum sustainable yield

(MSY) of the territorial waters

and islands is 110,045 tons and

the EEZ is 162,656 tons. The

overall utilization rate reaches

130,271 tons or 47.77%. There is

an opportunity for development

of 52.23%. Therefore, based on

this data, the potential fishery of

Aceh is more than 250,000 tons

per year, or about USD 500

million per year.

Big Tuna

Best Fish

Best Semilang Fish

GOAL: OUR DREAM........

To promote PPB - LAMPULOas

a World Class

Integrated Fishing Port

OBJECTIVES

To provide a centre for world class fishing port.

To promote a unity and synergy system for fishery industrial Park.

To create a hub of maritime knowledge base on Islamic civilization.

To ensure economic sustainability, dynamic, lively and vitality.

To form an efficient accessibility toward facilities and services.

To develop industry with thoughtfulness of nature and environmental.

To ensure a good urban management.

To build and promote safe industrial park with identity and character,

conducive urban environment for quality & healthy life-style.

Key Plan

PROPOSED SITE

Location Plan

PROPOSED SITE

The Gate Sultan Alaiddin Riayatsyah Sayyid al-MukammilInternational Fishing Port – Bandar Aceh Maritime City

Masjid AgungSyiah Kuala

Office Building, Industrial Estate, Mall, Residence, Hospital, etc….

Tuna Processing

Business Center

THE PROPOSED DEVELOPMENT OF KOTA INDRAPURI, NANGGROE ACEH DARUSALAM

Maritime Education Center

Integrated Fishing Mall Complex, Donated by IDB to Yatama-Masakin

Aceh International Fishing Port

Total Cost: 200 Million USD

Phase # 1: 2005 – 2012: 45 Million USD (20 %)

Phase # 2: 2013-2017: Rp. 1.217.902.400.000

(125 Million USD)

Phase # 3: 2017-2020: 30 Million USD

Next Funding: Islamic Development Bank (IDB)

Investors & Partner :

UEM Group Berhad (M) – Middle East Group

2013 2014 2015 2016

LOAN ARRANGEMENT 12 month

AUCTION CONSULTANT PLANNER 2 month

DETAIL DESIGN 8 month

AUCTION CONSULTANT SUPERVISION 2 mont

SUPERVISION 26 mont

EXECUTIVE CONTRACTORS AUCTION 2 month

CONSTRUCTION 24 month

The Benefits Project

. With the project is expected to increase annual fish landings of the production rate of11,170 tonnes in 2011, to around 58 535 tonnes in 2020, with the project, fish landing isexpected to increase by 88,665 tons per year. (Appendix 8)

.Total annual net profit income Port will increase from Rp 3.507 million per year prior tothe project being on average about Rp.7.300 million and total net annual profits of thelocal fishing cooperative (LFC / KUD) will be about an average of USD 3,500 million in 2020, while the total annual economic benefit is around Rp 200,000 million. (See App.16.)

.More than 8,000 people are currently involved either as fishermen or workers who areexpected to get a direct benefit from this Lampulo fishing port project. Although there arechanges in the structure of the fleet, the number of fishermen will remain at currentlevels. However, it should be mentioned that the number of ships int future fleet isexpected to be at a progressive rate.

Economic Internal Rate Of Return

Economic internal rate of return Lampulo port development estimated atbelow 50% of the economic life of the facilities with a 13.92% NPV (netpresent project) Rp. 193,988 million (20.207 mill USD). This estimate isbased on detailed assumptions set out in Appendix 5 s / d 18. All estimatedusing a discount rate of 10%.

EIRR calculation is net income (net economic benefit) Fishing harbor afterthe project than the cost of capital (debt + interest) project.

EIRR = 12.715 %NPV = Rp. 516.357,94 million , (53.787,29 mill USD)BCR = 1.2773

Resulting EIRR indicates that Lampulo port infrastructure investmentprojects of interest, with the initial investment payback period of less than20 years.

(1) If the cost of capital increased by 10%EIRR = 11,779 %NPV = Rp. 359.998,81 million , (37.498,73 mill USD)BCR = 1.178

(2) If the project is delayed by 1 yearEIRR = 11,960 %NPV = Rp. 387.394,70 million , (40.353,61 mill USD)BCR = 1.208

(3) If the total benefits decreased 10%EIRR = 11,520 %NPV = Rp. 278.493,83 million , (29.009,77 mill USD)BCR = 1.149

Next Step

1. Finishing Feasibility Study (Economic Viability or Commerce Viability)

2. Aceh Government Policies on Lampulo Fishing Port

- APBN or Investment- PPS > PBB > Pelabuhan Perikanan Ekspor ( International Fishing Port)

3. If APBN = Submit Proposal and FS to Bappenas > Blue Book > IDB…..

4. If Investment = Invite potential developer – investor to develop Lampulo as commercial business entity ( B to B ) > ( BOT) (BOO) other ….

Thank You Very MuchSyukran Jazila