PROYEK RINTISAN PENGEMBANGAN

KURMA SERAMBI MEKKAH

DI KABUPATEN BIREUEN & ACEH UTARA

PROVINSI ACEH - INDONESIA

PT. HABIB BUGAK CORPORA

(AL-HILAL INTERNATIONAL GROUP)

2015

PROJECT SUMMERY

INTEGRATED DATES PLANTATION

IN DISTRIC OF BIREUEN & NORTH ACEH
ACEH PROVINSI - REPUBLIC OF INDONESIA

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 by
the 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
worlds 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 some
describe 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 industry
can 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 in
the 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.

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 100
hectares 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 farmers 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 manage
cooperation 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 the
idea 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 tools
manufacturing, 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 is
recommended 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)

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