ACEH DATES PALM (KURMA ACEH)

8/9/2019 ACEH DATES PALM (KURMA ACEH)

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PROYEK RINTISAN PENGEMBANGAN

KURMA SERAMBI MEKKAH

DI KABUPATEN BIREUEN & ACEH UTARA

PROVINSI ACEH - INDONESIA

PT. HABIB BUGAK CORPORA(AL-HILAL INTERNATIONAL GROUP)

2015


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PROJECT SUMMERY

INTEGRATED DATES PLANTATIONIN DISTRIC OF BIREUEN & NORTH ACEH

ACEH PROVINSI - REPUBLIC OF INDONESIA


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PROJECT SUMMERY

The Province of Aceh in the Republic of Indonesia has for

a long time not being able to receive and enjoy adequate benefits

of modern development to the levels that have been enjoyed bythe other Indonesian provinces in Sumatra, Jawa and other parts

of the country. Furthermore the Province of Aceh has long

suffered from political instability, internal war conflicts, lack of

peace, shortage of funds, the side effects of the long drawn

conflict between the Aceh Liberation Movement (GAM) and the

armed forces of the Republic of Indonesia. Note that the GAM

forces have been fighting for some 3 decades against the central

government for independence.

The 2004 tsunami further worsened the deplorable

conditions of the local populations. However the local

populations have not fully recovered from decades of war torn

events and the tsunami and currently living in poverty. The

Province of Aceh though peaceful still remain very much in the

backwaters and require enormous rehabilitation and

development. Now with peace, political stability, good security and

economic growth following the direct election and full support

Government of the Province of Aceh, it is timely to consider the

opportunity to participate in the development of the Province of

Aceh, especially in the dates industry. For the investors, with

the support of the business oriented local government this is

golden opportunity to start business.The potentially industry in Aceh is the dates. It is the

world’s most produced and traded vegetable. It is found in one

in ten products on supermarket shelves. Furthermore, it is

increasingly looked upon as a commodity that will satisfy the

growing demand in the developed world for an environmentally

friendly. The Government of Aceh have initiated plans to


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develop an Industrial Estate in the district near North Aceh and

East Aceh as part of the overall plan to boost the

industrialization program in the district.

The province of Aceh, in the far northwestern corner of

Indonesia, has topographical and climatic conditions that somedescribe as ideal for the culvation of dates. However the dates

industry in Aceh has not really expanded as compared to the

other such as Thailand and Malaysia. Thus there are still

available areas of land very suitable for large scale at the north

coast from Aceh Tamiang, East Aceh, North Aceh and Bireuen,

all of which are likely to be similar to the areas of North

Sumatra which is arguably the best area in the world for

agricultural industry.

With Aceh Government support Crescent-Alhilal

International Group was established Agriculture Industry Group

with main objective to help conflict and tsunami victims,

especially in the agriculture industry. These people are the hard

core poor segment of the local populations and it is the

Government fervent objective to provide them with sustained

employment to achieve economic independence. The Group has plan to develop palm oil plantation and establish a crude palm

oil mill and refinery plant in North Aceh, East Aceh and other

place.

Group with Potential Partner will introduce integrated

project and established with professional management. The main

objective of Group is reach a high level of productivity that can

raise the living standards of the people of Aceh. The industrycan provide large scale employment and housing within. In

addition the government can select the families who will wish to

live and settle in these areas through a development program.

The Group has invited a joint venture company to design, build,

operate and manage a modern agriculture in Aceh. In the

plantations business, Group proposed to the Governments and


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together with some “Koperasi Perkebunan” to jointly develop

and manage the plantations from available land banks. An area

will be given as the Mather (Nucleus) Estate. The local

populations that have been most affected by the internal conflict

and the tsunami shall be given priority to participate and work inthe project plantations.

The smallholder family shall be required to work cultivate

their oil crops and received paid salaries. Sustainable incomes

shall be derived when the fruits are realized. The training of

local professionals will be accelerated that they will be able to

contribute strongly to the economic activity and raise the

standard of living of families.

The development will lead to other industries including

downstream such as packing and marketing. As a result of the

presence of these industries, the cost of these products will be

available at lower market prices for the local populations of

Aceh. The investment can stimulate the growth of related

industries such as fertilizer production, equipment and tools

manufacturing, and provision of good and services for the needs

of the employees.


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THE PROPOSED DEVELOPMENT PROGRAM

1. The governments of the Province of Aceh and Kabupaten

welcome Group and the Potential Investor to jointly develop

and manage the project from available land banks of 100hectares or more in Kabupaten Aceh Besar or Bireuen with

new model an integrated agriculture industry.

2.

An area of minumum 50 hectares will be take over by

Investor as the Mather or Nucleus Estate.

3.

The project shall have a Smallholder farmer’s owned by

Koperasi Rakyat. The scheme which will be based on the

same successful formula that has been done by Government

of Malaysia. The smallholder family shall be required to

work cultivate their fruits and received paid salaries.

Sustainable incomes shall be derived when the fruits are

realized. A Joint Venture holding company is proposed to

develop the Project comprising of Investor, the Koperasi and

private investing company. The Company will managecooperation between Investor Company, Koperasi and Local

partner.

4.

It is recommended that the funding can be repaid in fifteen

years to Plasma-Koperasi Plantation, although the normal

pay-back period for a typical palm plantation project is more

likely to be about ten years. Are likely to be receptive to theidea of using surplus earnings to help rebuild the Province of

Aceh and in alleviating the poverty of the local populations.


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BENEFITS TO THE PEOPLE

1. The incomes from the business will be high and the payback

period can be about ten years. The revenue from exports will bring in foreign exchange. The incomes can be sustained for

some 25 years as typical in other dates palm plantations.

2.

The local government will be able to use the incomes to raise

the economic activities, including the funding of development

projects, housing and infrastructure that will in turn generate a

prosperity cycle that will benefit the local populations. The

cycle of prosperity will help ensure stability and peace.

3. The development will lead to other industries including

downstream such as packing and marketing . As a result of

the presence of these industries, the cost of these products will

be available at lower market prices for the local populations

of Aceh. The investment can stimulate the growth of related

industries such as fertilizer production, equipment and toolsmanufacturing, and provision of good and services for the

needs of the employees.


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PROJECT IMPLEMENTATION

A feasibility study shall be carried out to determine the

feasibility of the Project pertaining to financial, technical,

agricultural, socio-economic aspects. It isrecommended that the Government of Aceh with funding from

potential investor will engage professional consultants to

implement the study.

The Terms of Reference can be finalized at a later stage

and they should include a detailed desk study of the likely areas

suitable for development. A projection will be made of the time

to be taken to have the development completed, the likely

production of palm fruits, and processing of palm. A market

study will be included in order to arrive at the likely prices per

metric ton of products, and the projected profitability of the

plantations. The outlook is bright with the increasing demand for

edible fruits palm generated by world population growth and

increased prosperity.

The likely costs of development per hectare will be worked

out during the study, and they will include costs of the plantation, buildings, machinery, infrastructure, vehicles and

mills.

The Project success is assured as can be experienced from

other similar nearby located plantations, and providing that the

right model is used. The proposed plantations will need

excellent management to have high production and to keep costs

low. As the Kabupaten Government will be the major

shareholder of the plantations, the local government will earn

substantial incomes that can be invested in more other

businesses and raise the social-economic level of the local

populations.


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It is proposed that initially the project starts with the

management of the existing plantations and land owned by the

Kabupaten Government, local people, the Koperasi, and other

private companies.

It is recommended that steps are taken now so that the benefits can come early to the people of Aceh.

Dr. Hilmy Bakar. MBA.

(President Director PT. HABIB BUGAK CORPORA)

ACEH DATES PALM (KURMA ACEH)

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