OPPORTUNITY : Sanitation and Energy

REGIONAL INTEGRATED RECYCLE PLANT - RIRP

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REGIONAL INTEGRATED RECYCLE PLANT - RIRP

Objective and Scale

Project Objective• Capturing and utilizing the methane out of no less than

20,000 MT per day organic waste.

• The management of organics waste will encompass the application of a more sustainably managed landfill strategies to utilize waste based on capturing methane gaz emission.

• Managing phisycal, biological and chemical waste in the region for better purpose

• The system should be able to remediate the current impairment and maintain the integrity of the ecosystem in sustainable ways.

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Project Scale

• Total organic waste production in 2009 was around 78,518 tons in actual per day. This comprise of 53,000 tons for organic and 25,781 tons for the non organic waste per day. (see table)

• Collectability. Lower assumption were used to measure the realistic collectability of the organic and non organic waste.

• The collectible organic waste is measured to as low as

16,848 per day. See table 2

• Such daily figure to construct 6,150.000 tons of organic waste per year.* West Java alone will produce collectible around 2,879,565 tons organic waste per year.

REGIONAL INTEGRATED RECYCLE PLANT - RIRP

Location and Capacity

1. Bekasi RIRPEST. 40 – 60 Mw

2. Karawang RIRPEST. 40 – 45 Mw

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• West Java northern coast regencies. • The locus defined by calculating the social, economical and

ecological characteristic of the areas. Including are, climate, topography, hydrology, wind factor, temperature, transportation and community participation.

3. Subang RIRPEst. 20 – 25 Mw

4. Indramayu RIRPEst. 20 MW

5. Cirebon RIRPEst. 20-30 Mw

• The chain of the RIRP complex should be able to sustainably serve and manage organics waste management with total loading capacity of no less than 6,15 million - 7,3 million tons of organic waste” annually.

• Additional Sites in the Province are now being prepared for similar project.

Waste Recycle: Investment in Demand and Scope

Scope of InvestmentThe scope of this Integrated Regional Recycling Plants are preliminarily defined as Master Plan of Integrated Regional Recycling Project that comprise but not limited to:•Integrated and Comprehensive Social, Economic and Ecological and Feasibility Study•Design, Technological and Engineering Study Management and Logistical Study•Operational Management Plan•Intra and Extra Governmental Partnership Study•Community Partnership Study•Waste Transportation System•Recycling Plant Infrastructure Construction•Power Plant Infrastructure Construction•Transmission Line of Grid Infrastructure Construction•Primary Transport system and infrastructure•Other supporting facilities that necessaries as identified by the Integrated Study.•Investment Partnership Scheme Study. This includes but not limited to incentive and policy schemes necessary.

Investment In DemandPhase 1:• Provision of expertice and financial assistances necessary for

the planning of West Java Regional Integrated Recycle Plant.

Phase 2:• Construction and Management of West Java Regional

Integrated Recycle Plant.

For the whole domain of the project, it was estimated that cost needed to develop the whole domains of the projects range from US$ 600 mio to US$ 665 mio.

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Opportunity: Food Security SOUTHERN OCEAN FISHERY CENTER

The objective of the project is to secure national sea based protein consumption of the region and Indonesia. Beyond that contributing to the fulfillment of present and future global food demand.

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SOUTHERN OCEAN FISHERY CENTER

Policy Background & Objectives

The consumption of the animal-protein source products in Indonesia and in West Java is now rising.

Chicken and fish are the most common source of animal protein, followed by dairy products and beef.

POLICY OBJECTIVES• The objective of the project is to secure national sea

based protein consumption of the region and Indonesia. Beyond that contributing to the fulfillment of present and future global food demand.

• To enable West Java industry beneficially exploiting its access to the sea resources in optimal ways.

• These include endeavors of accelerating maritime capacity and technology development through investment.

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SOUTHERN OCEAN FISHERY CENTER

Global Leverage Resources

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WEST JAVA ANNUAL FISH PRODUCTION (2005-2007) AND COMPARISON TO OTHER PROVINCE IN JAVA ISLAND

PROVINCEOCEAN FISHING FRESH WATER FISHING SUB TOTAL TOTAL

2005 2006 2007 2005 2006 2007 2005 2006 2007 2007

1 Jakarta 132,024 137,570 146,240 - - - 132,024 137,570 146,240 2.90%

2 West Java 155,341 149,490 167,288 6,677 12,856 7,187 162,018 162,346 174,475 3.46%

3 Central Java 192,586 193,554 154,442 16,177 16,175 15,870 208,763 209,729 170,312 3.38%

4 Yogyakarta 1,773 1,731 2,629 1,255 1,037 977 3,028 2,768 3,606 0.07%

5 East Java 322,292 374,620 382,877 11,871 11,848 11,690 334,163 386,468 394,567 7.82%

6 Banten 58,712 57,745 61,679 536 579 645 59,248 58,324 62,324 1.24%

TOTAL JAVA 862,728 914,710 915,155 36,516 42,495 36,369 899,244 957,205 951,524 18.86%

NATIONAL 4,408,499 4,512,191 4,734,280 297,370 293,921 310,457 4,705,869 4,806,112 5,044,737 100.00%

• CIAMIS AND SUKABUMI PORTS are facing the 2nd Indian Ocean Marine Ecosystem (IOME).

• The 2nd IOME covers an area of nearly 340.000 kilometers square. Bordered partly with Christmas Island (Australia) and located in southern coastal sea of Java and Sumatra Island. The IOME is most likely to be considered a Class II, high productivity ecosystem (150-300gCm-2yr-1). Nutrient discharge from the rivers of the island of Java.

• The fish stocks in the IOME is diverse. Commercial fish species in the LME include prawns, skipjack tuna. sardine, anchovy, mackerel, shark, snapper, tuna, shad, and scad. Current productivity is estimated around LESS THAN 200,000 ton where most are consumed for domestic use. Lowest estimates for ocean fishing intensification in the 2nd IOME was figured 600,000-800,000 tons per year.

SOUTHERN OCEAN FISHERY CENTER

Locus and Plan of the Project

PROJECT LOCATION 1: THE REGENCY OF SUKABUMI6º 55’ 10.56” South Latitude,106º 55’ 37.92” East Longitude

Altitude: 0 - 750 m (asl)Temperature and Rainfall Average15º - 30º C (cool) - 483,5 mm. (2006)

Harbour: Palabuhan Ratu – 150 DWT

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PROJECT LOCATION 2 THE REGENCY OF CIAMIS 6º 57’ - 7º 25’ South Latitude106º 49’ - 107º East LongitudeAltitude: 0 - 2,969 m (asl)Temperature and Rainfall Average18º - 29º C (cool) - 2,000 - 4,000 mm/year Majinglak HarbourLocation: Kalipucang District. Dock: 2 units.Dock Width: 96 square metres and 18 sqm.Ship Berthing Capacity: 30 GT * 100 DWT. Kalipucang HarbourLocation: Kalipucang District. Dock 1 unit.Dock Width: 519 sqm.

1. Modernize the existing fishery ports (in Ciamis Regency)

2. Modernize the ocean based food processes that encompass standardization, technological capacity, hygienic, and management.

3. Modernize the existing dockyard.

ESTIMATE CAPITAL NEEDED US$ 13 million

1. Modernize the Palabuhan Ratu fishery port (in Sukabumi Regency) to accommodate 3000 DWT.

2. Modernize the ocean based food processes that encompass standardization, technological capacity, hygienic, and management.

3. Shipyard of Modern Fishing Ships 30-200 GT

ESTIMATE CAPITAL NEEDED US$ 22 million

the 2nd Indian Ocean Marine Ecosystem (IOME).

OPPORTUNITY: Clean Energy

GEOTHERMAL PLANTSThe 3 prospective locations offered to be developed as Geothermal Power Plant by bidding process are:

• Papandayan Geothermal Power Plant• Gede Pangranggo Geothermal Power Plant• Ciremai Geothermal Power Plant

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GEOTHERMAL PLANTS

Imagine more than 5000 Mw Clean Energy

West Java Geothermal• Indonesia has the biggest geothermal potency in the

world (+ 20.000 MW); whereas 27% of the potency is on West Java Province with a total of 6101 Mwe

• Geothermal potentials of West Java have been inventoried in 43 areas, spreading in 11 districts with a total geothermal energy potential of 6,101 Mwe, divided into 2,184 Mwe of resource and 3,237 Mwe of reserve.

• Today only small part of the geothermal potentials that have been utilized, the large part being left unexplored.

• The geothermal potentials realized are only approximately 705 MW, utilized for generating electricity, 1,150 MW are not yet produced, and the remaining 3,456 MW are not explored.

The Road Map: Government targets• In 2012, the target of electricity and geothermal

capacity is 3400 Mwe• In 2020, the target of electricity and geothermal

capacity is 6000 Mwe

Legal basis invoked in Development of Mine and EnergyEnterprises involves:• All issues on environment and sustainable development

are the main provisions in legislation on energy, particularly geothermal, in Law 27/2003 and national energy policy 2003-2020.

• Law No. 32 Year 2004 on Local Government• Governmental Regulation No. 25 Year 2000 on

Authorities of Provincial Government• Provincial Regulation (By-Law) No. 15 Year 2001 on

Establishment of Local Agency of Province of West Java• Provincial Regulation No. 1 Year 2001 on RENSTRA

(strategic plan) of Province of West Java.

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NOTE : OPERATIONAL POWER PLANT EXISTING CONTRACT GEOTHERMAL MANIFESTATION/POTENCY TOTAL GENERATED ELECTRICITY IN 2009: 1073 MW

GEDE PANGRANGORegency : Sukabumi, Cianjur, Bogor.

CIREMAIRegency : Kuningan, Majalengka

WEST JAVA GEOTHERMAL LOCATIONS FOR BIDDING IN 2010

PAPANDAYANRegency : Bandung, Garut.

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GEOTHERMAL PLANTS

Resource & Investment In Demand

SURFACE MANIFESTATION

Crater, fumarole, solfatar, hot springs, altered Ground, temp 50-980 C

PROSPECT AREA 20 -25 KM2

RESOURCE ESTIMATION

± 160 MW (probable)

TOP RESERVOIR At depth 700-1100 (estimated from MT data)

RESERVOIR TEMPERATURE:

> 240oC (gas geothermometer )

RESOURCE TYPE Volcanism in quarternary rocks, one phase (dry steam).

TOTAL INVESTMENT COST

US$ 171 mio

UPSTREAM DEV’T(STEAM PRODUCTION)

US$ 113 mio

DOWNSTREAM DEV’T(ELECTRICITY PRODUCTION)

US$ 58,1 mio

ELECTRICITY PRICE US$ 79,73 per MWh

IRR 17%

PAY OFF TIME 9-10 years

PAPANDAYAN PRELIMINARY FINANCIAL ANALYSIS (SCENARIO FOR 2X55 MW DEV)

SURFACE MANIFESTATION

Crater, hot springs, Fumarole, solfatar, hydrothermal alteration, temp 52-950 C

PROSPECT AREA 20-25 KM2

RESOURCE ESTIMATION

± 150-210 MW

TOP RESERVOIR At depth 1500-2500 (estimated from MT data)

RESERVOIR TEMPERATURE:

321 oC s/d 374oC (from gas geothermometer)

RESOURCE TYPE Volcanism in quarternary rocks, two phases.

TOTAL INVESTMENT COST

214 mio

UPSTREAM DEVT(STEAM PRODUCTION)

US$ 114,1 mio

DOWNSTREAM DEVT (ELECTRICITY PRODUCTION)

US$ 98,1 mio

ELECTRICITY PRICE US$ 69.53 per MWh

IRR 17%

NPV 88.733 million

PAY OFF TIME 9.28 years

GEDE PANGRANGO PRELIMINARY FINANCIAL ANALYSIS (SCENARIO FOR 2X55 MW DEV)

SURFACE MANIFESTATION

Hot springs, fumarole, silica sinter, hydrothermal alteration, temp 48-650 C

PROSPECT AREA 20 KM2

RESOURCE ESTIMATION ± 50-100 MW (probable)

RESERVOIR TEMPERATURE:

> 210oC

RESOURCE TYPE Volcanism in tertiary rocks, water dominated.

TOTAL INVESTMENT COST

US$ 74,6 mio

UPSTREAM DEVELOPMENT(STEAM PRODUCTION)

US$ 35 mio

DOWNSTREAM DEVT(ELECTRICITY

PRODUCTION)

US$ 39,5 mio

CALCULATED ELECTRICITY PRICE

US$ 60.29 per MWh

IRR 14%

PAY OUT TIME 16-17 years

CIREMAI PRELIMINARY FINANCIAL ANALYSIS (SCENARIO FOR 1X30 MW DEV)

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GEOTHERMAL PLANTS

Supporting Beneficial Components

• National Policy support (Geothermal Road Map 2025)

• Carbon credit (Clean Development Mechanism)

• Fiscal Incentives (free imported tax for exploration equipment. Etc)

• Support for processing permit and other incentives from Local Government.

1. Bidding process for Geothermal Working Area (GWA):

- Open bidding in two phases - Winner gets Geothermal License for 35 years

2. Preliminary Survey Assignment for Open Areas :- Direct Investment to finance exploration- First right refusal for the Assignee- Awarded compensation if Assignee not win the bidding.

3. Business Cooperation with Existing License Holder : drilling, infrastructure, power plant EPC, finance, carbon credit/CDM, etc.

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EXPLOTATION

GEOTHERMAL PLANTS

Map of Investment Process

2 YRS 30 YRS3 YRS

GEOTHERMAL POTENCY

PRELIMINARYSURVEY FEASIBILITY

STUDY

GEOTHERMAL RESOURCES UTILIZATION

EXPLORATION

(Based on Law No. 27/2003 and Government Regulation No. 59/2007)

BUMN, BUMD, PRIVATE, COOPERATIONCENTRAL/ LOCAL

GOVERNMENT OR PRIVATE

CENTRAL/LOCAL GOVERNMENT

DATA AND INFORMATION

REGULATION HUMAN RESOURCES TECHNOLOGY

GEOTHERMAL WORKING LICENSE - 35 years ASSIGNMENT

BIDDING PROCESS

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Opportunity – TransportationWEST JAVA INTERNATIONAL AIRPORTEXPECTED TIME OF OPERATION THE PHASE 1 OF THE WEST JAVA INTERNATIONAL AIRPORT – KERTAJATI IS EXPECTED TO BE FULLY OPERATE IN DECEMBER 2015.

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INTERNATIONAL AIRPORT

Location and Scope of Project

LOCATION

The Location: Majalengka Regency West Java• 60 32’16,39” - 70 4’ 24,75” South Latitude,• 1080 2’ 30,87” - 1080 24’ 32,84” East Longitude

Geographical borders :• To the North: The Regency of Indramayu• To the East: The Regency of Kuningan • To the South: The Regency of Ciamis and • Regency of Tasikmalaya• To the West: The Regency of Sumedang

PROJECT SCOPE

The airport as completed is planned to manage 24 air crafts per hours. - Airport Area : 1,800 ha- Supporting Facilities : : 3,200 ha- Runway : 3,800 meters- Passenger Capacity : 6 – 10 million

people

-Apron Capacity : 12 planes-International standard terminal of ±5,200 m2 (phase 1).

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INTERNATIONAL AIRPORT

Current Status and Investment in Demand

PROJECT CURRENT STATUS

• Government’s policies related to the building of airport have contributed to the tone and pace of development.

• Estimated 5,000 Ha is allocated for the Airport alone. This to ensure the capacity of the airport to accommodate a wide body aircraft take off and landing.

• Socialization on land acquisition are now undergoing.

• The Government is now in the process of building the CISUMDAWU Toll road that provide high standard and better access to the airport site from Bandung and Cirebon Sea Port.

INVESTMENT COST (EST)

• The investment cost for the New Airport was estimated US$ 359.3 million (phase 1 only).

• As the investment partnership taking shape the project will be followed by physical activities such as Field clearance, involving stripping work of land preparation, elongation of runway, and building of new taxiway and apron; Land excavation and heaping works; Works of building air-side facility, elongating runway, building new taxiway and apron and so on.

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