Mr. Henky Manurung

INDONESIA INVESTMENT
OPPORTUNITIES
HENKY MANURUNG
HEAD OF SUB DIRECTORATE TOURISM INVESTMENT
MINISTRY OF TOURISM AND CREATIVE ECONOMY
2012

INVESTMENT CLIMATE:
the world embrace Indonesia’s economic performance
Following Japan Credit Rating
Agency and Fitch Rating, Moody's
Investors Service has revised the
outlook for Indonesia's foreign
debt rating from Ba2 to the
investment grade. “Baa3” in
January 2012.

TRIPADVISOR INDUSTRIAL INDEX
Based on the results of an international survey released
by TripAdvisor Industrial Index, which contains a survey
of the largest hotel in the world, Indonesia is in the top
position for hotels with best business prospects and
profitability, beat the domination of Russia, Brazil, and
the United States. Furthermore, 44% of accommodation
in Indonesia reported completely or very profitable in
the last six months. It is the highest in the world.

NEGATIVE INVESTMENT LIST
PRESIDENT’S REGULATION 36/2010
A. PURPOSED FOR MICRO, SMALL, MEDIUM ENTERPRISES
1. Cottage
2. Travel Agencies
3. Guidance
4. Art Studio / Art Heritage
B. FOREIGN OWNERSHIP
1. Art Performing Building max. 67%
2. Nature Tourism Attractions Industry max. 51%
out of Conservative Area

NEGATIVE INVESTMENT LIST
PRESIDENT’S REGULATION 36/2010
C. FOREIGN OWNERSHIP AND LOCATION (IN ACCORDANCE WITH LOCAL REGULATION)
1. One and Two Stars Hotel max. 51%
2. Accomodation Sevices (Motel and Lodging Service) max. 49 %
(max 51% in partner with Micro and SME)
3. Melati Hotel max. 51%
4. Restaurant / Talam’s Restaurant max. 51%
(Talam Kencana, Talam Selaka, Talam Gangsa)
5. Restaurant/ Non Talam’s Restaurant max. 49%
(maximal 51% in partner with Micro and SME)
6. Catering max. 51%
7. Travel Agent (Outbond Operator) max. 49%
(maximal 51% in partner with Micro and SME)
8. Convention, Exhibition and Incentive max. 51%
9. Impresario max. 49%
(maximal 51% bilin partner with Micro and SME)

NEGATIVE INVESTMENT LIST
PRESIDENT’S REGULATION 36/2010
10. Cultural Tourist Object max. 51%
- Museum
- Heritage
11. Recreation and Leisure max 49%
(max. 51% in partner with Micro and SME)
12. Golf max 49%
(max. 51% in partner with Micro and SME,
max. 100% for East Indonesia,
max. 51% for Indonesia, except East Indonesia)
13. Bar/ Café/ Singing Room max. 49%
(max. 51% in partner with Micro and SME)
14. Dexterity max 67%
15. SPA (Sante Par Aqua) max. 51%

NEGATIVE INVESTMENT LIST
PRESIDENT’S REGULATION 36/2010
D. WIDELY OPEN CATEGORY (TERBUKA PENUH) FOREIGN INVESTOR MAY HAVE 100% EQUITY
1. Hotel (3 Star-5 Star),
2. Tour Operator,
3. Resort,
4. Tourism Information Business,
5. Golf Course,
6. International Hotel Operator,

TOURISM INVESTMENT REALIZATION
(HOTEL & RESTAURANT)
YEAR FDI (US$ Million) DDI (US$ Million)
TOTAL (US$
Million)
% GROWTH
2006 111.5 18.0 129.5 -
2007 136.4 12.7 149.1 15.17%
2008 156.9 23.8 180.7 21.18%
2009 306.5 35.7 342.2 89.32%
2010 346.4 39.0 351.1 2.60%
2011 242.2 39.4 279.8 -20.31%
Q2 2012 418.7 67.8 486.5 73.87%
Note: Tourism Investment Growth Average ≈ 30.30%
Source: Capital Investment Activity Indonesia Investment Coordinating Board

450
400
350
300
250
200
150
100
50
0
FOREIGN DIRECT INVESTMENT (FDI)
in US$ Million
111.5 136.4 156.9
306.5 346.6
242.2
418.7
2006 2007 2008 2009 2010 2011
Q2
2012
Source: Capital Investment Activity Indonesia Investment Coordinating Board
Realization of FDI in tourism
investment sector (hotel and
restaurant) until second quarter
year 2012 increased nearly 2
times higher than with 2011 by
percentage of 72.87%, or $ 242.2
Million in 2011 and on the
second quarter in 2012 tourism
investment sector value $ 418.7
Million

DOMESTIC DIRECT INVESTMENT (DDI)
in US$ Million
70
60
50
40
30
20
10
0
18.02
12.77
23.86
2006 2007 2008 2009 2010
35.72 39.03 39.42
2011
Q2
2012
Source: Capital Investment Activity Indonesia Investment Coordinating Board
67.85 Realization of DDI in tourism
investment in the second quarter
in 2012 also experienced an
increase of 72.12% from year 2011,
namely $ 39.42 Million compared
with year 2011, $ 67.85 Million.

Project Title
Tanjung Lesung
Project Location
Banten
Contacting Agency
PT. Banten West Java Tourism Development
Scope Of Work
Tanjung Lesung- Banten
Developing tourism potential to build hotels, golf, marina,
theme park
Infrastructure
1. Road
2. Power supply
3. Telepohone & Mobile phone
4. Water & waste water Treatment Plant
5. Internet connection
6. Soon the coastal area of West Java will have its own
airport, located in proximity with Tanjung Lesung
Tourism Object
• Carita Beach
• Tidung island
• Krakatau steel
• Umang island, Anyer Beach
• Baduy village
Tanjung Lesung Beach Resort Master Plan

Project Title
Mandalika
Project Location
West Nusa Tenggara
Contacting Agency
Mandalika Resort Lombok
Bali Tourism Develompment Coorporation (BTDC)
Scope Of Work
1. Providing world-class facilities
2. Extensive open spaces and management that promotes
a sense of safety
3. Security and well being
4. Theme Park
Infrastructure
1. Internasional airport
2. Fresh water
3. Electricity
4. Telecomunication
5. Access road
Tourism Object
• Tanjung Aan beach
• Kuta beach
• Sade Village
• Gerupuk bay, Mawun beach, Benang kelambu waterfall,
Selong Belanak Beach Site Wise Illustrative Master Plan

Project Title
Lagooy Bay
Project Location
Kepulauan Riau
Contacting Agency
PT. Bintan Resort Cakrawala (BRC)
Scope Of Work
1. Resort, residential and commericial facilities in
harmonious existence with the natural coastal and
forest environment.
2. Safe, attractive & functional environment, for both
residential living & leisure activities
3. Theme park
Infrastructure
1. stable power supply & Portable water
2. waste management system
3. Fibre optic telecommunications system,
4. 24-hour crisis centre, fire-fighting, security,
environment control,
5. Medical support and township maintenance
6. Terminar Ferry
Tourism Object
• Penyengat Island
• Lagooi beach tourism
• Tanjung Uban
Bintan Resort
Lagoy Bay Area

Project Title
Billiton Island
Project Location
Kepulauan Bangka Belitung Province
Contacting Agency
Billiton Development Consortium
Scope Of Work
Billiton Island (Belitung)
Developing Tourism attraction, theme park and facilities in
Billiton island based on sustainability tourism development
Infrastructure
1. Market & shopping area
2. Communication
3. Electricity
4. Airport
5. Transportation
6. Ferry Terminal
Tourism Object
• Lengkuas Island & Tanjung Tinggi
• Burung Mandi Beach, Tanjung Kelayang Beach
• Coral dive
• Mount Tajam & Mendanao Island
• Tanjung Binga & Punai Beach
Billiton Consortium Area

Project Title
Bugam Raya
Project Location
South Kalimantan province
Contacting Agency
Government
Scope Of Work
Bugam Raya
1. enlarge and upgrade airport facilities through relocation to
Teluk Bugam
2. Completed seaport facilities
3. Facilitate a visitor circuit that ensures visitors on short stay
can experience the history and culture of the Kabupaten,
with emphasis on learning activities for children.
4. Build new hotel or resort
Infrastructure
1. Seaport
2. Klotok as tranportation
3. Water
4. Electricity
Tourism Object
• Tanjung Puting National Nature Reserve
• Orang Utan Forest habitats & Patih Mambang waterfall at Kreaya
• Mangroves at Sungai Umbang & Extensive white sand beaches
• Turtle conservation at Tanjung Kaluang & access to coral reefs at
Gosong Senggora
Spatial Plan

Project Title
wakatobi
Project Location
South east Sulawesi
Contacting Agency
Government
Scope Of Work
1. Hotels of varying sizes, ranging from 3 to 5 star;
2. Managed residential estates;
3. Village based landed residential properties; Village based
retail and restaurant facilities;
4. Themed leisure and entertainment areas.
5. One or more marinas for cruising yachts.
6. Theme Park
Infrastructure
1. ferry terminal
2. Airport
3. Water
Tourism 4. electricity Object
• Internationally renowned dive sites , extensive white sand
beaches
• Historic building & ruins
• Fresh water springs, some within cave & inland trekking
experiences
• Turtle consevation areas
• Bajo community stilt houses & fish and seaweed drying
Wakatobi
Tourism Zoning Wakatobi Regency

Project Title
Sabang
Project Location
Aceh
Contacting Agency
Aceh Government (Dinas kebudayaan & Pariwisata Aceh)
Scope Of Work
Develop amenities & facilities of tourism such as : Hotel,
international restaurant, Golf, Cruise destination, green power
plant, port service, Direct flight Phuket, Langkawi, Changgi -
Sabang
Infrastructure
1. Maimun Saleh Airport 1,850 mtrs
2. Sabang Harbour International Standard a,nd Balohan Port
3. Hot Mix Asphalt Ring Road
4. Hotels,Resorts and restorants
5. Banks & Monument of O Km Indonesia
Tourism Object
Sabang Weh Island
• Sabang has 21 spots world class diving & Pria Laot
Waterfall
• Aneuk Laot Lake, geo dan hydrothermal, handicraft, food &
hospitality inhabitants
• The best fishing area, indigenous Cultural Direct shipping line connections

Investment Updates : reform and maintaining growth
On going reforms in investment climate....
REGULATION
INVESTMENT LAW
(UU No.25 Year 2007)
INVESTMENT
FACILITIES
TAX REFORMS
Mandate equal treatment for foreign and domestic investors
No minimum capital requirement, freedom to repatriate capital
Simplification of business start up and licensing procedures,
including the “one-stop shop” licensing provision at the
Investment Coordinating Board (BKPM)
Launching of the National Single Windows for Investment
Establishing an Investor Relation Unit at the Investment
Coordinating Board for information facilitation and queries
handling from existing and potential investors.
Implementing a regional champion program to help select local
governments accelerate investments in their respective regions
An acceleration of the VAT refund system for exporters
Establishment of a complaint management system and a code of
conduct for tax officials

Investment Updates : reform and maintaining growth
REGULATION
On going reforms in investment climate....
IMPORT DUTY
FACILITIES
Regulated on MoF Regulation No.176/PMK.011/2009 granted for
industries which produces goods or services
Exemption from import duty on the import of machines for a
period of 2 (two) years
Exemption from import duty on the imports of goods and
materials for production for a maximum period of 2 (two) years
Exemption from import duty on the imports of goods and
materials for production for a period of 4 (four) years, is granted
to a company which is using the locally-produced machines at
least 30% of the total value of machines for its production
Service industry which is eligible for the facility:
1. Tourism and culture
2. Transportation (for public transportation services)
3. Public health services
4. Mining
5. Construction
6. Telecommunication
7. Port
The Investment Coordinating Board of the Republic of Indonesia

Investment Updates : reform and maintaining growth
On going reforms in investment climate....
REGULATION
VAT FACILITIES
LAND
ACQUISITION
BILL
TAX
ALLOWANCE
Government Regulation No. 12 of 2001 jo No. 31 of 2007
Exemption of value added tax of imported capital goods,
machinery, or equipment (except spare parts) which cannot be
produced domestically
Submit tax-free letter to the Director General of Taxes
In December 2011, parliament passed a new land acquisition bill
(stipulated as Law No 2/2012) which provides certainties in land
pricing and timing of land acquisition process. This will accelerate
the construction of desperately needed roads, ports and airports
to be better connect an archipelago of 17,500 islands spanning
some 5,000 kilometers
Government Regulation No.52 year 2011, an amendment of
Government Regulation No.62 year 2008, regarding corporate
Income Tax facilities that could be granted to investors under
certain conditions, has been issued currently. By this regulation,
the tax allowance will be eligible for 129 business segments,
expanded from 38 segments in the previous regulation.