Teak Plantations for Sale
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Transcript of Teak Plantations for Sale
Teak Plantations forTeak Plantations for SaleSale
June 2009
Sustainable Pacific Corporation (SPC) Sustainable Pacific Corporation (SPC)
And
PT. Bentang Persada Gemilang (BPG)Jl. Pecenongan 72, Komplex Redtop, Blok C9
Jakarta, 10120, IndonesiaPh (6221) 350 0162 Fax (6221) 381 4536
Email: [email protected]
Investment for the FutureInvestment for the Future
Targeting Investors and Producers that: Need Teak Wood for their markets and consumers Need to invest in land, as an assets of sustainable value Need to protect their savings and wish to guarantee a profit Contribute with improvements in the environment People seeking a more peaceful and just society Investor looking for a good ROI
Coming From: Japan China Korea European Countries America Indonesia
Teak Plantations are located in Halmahera, a virgin Island of Indonesia
Initial Allocation of Land 2,000 Hectares (5,000 acres)
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Teak Plantations In HalmaheraTeak Plantations In Halmahera
Topics/Topik :
Teak Wood 4 The Company 5 Land Tenure in Indonesia 6 Business Opportunity 7 The Investment 9
◦ Payment Plan Plantation Management 11 Lot Sizes 12 Two Lots 13 High Productivity Teak Plant 15 Teak Plantation Maintenance 17
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Teak WoodTeak Wood
Teak is first class hard wood, with beautiful vain and color, of high density making the wood durable, and regarded as of great value for furniture, flooring, blinds, ceiling, mouldings and wood crafts
Teak Trees grow straight allowing a better utilization when cut. A new tree grows from the trunk of the previous tree
Now its current cultivation and cloning methods allow the harvesting every 5 years with 22 to 30 cms (9 to 12 inch) diameter at 1 meters high from the base of the trunk
Price of wood can be higher is you allow the tree more years before harvesting. Larger diameter allows the wood to be used in many more applications
Current wood supply in Indonesia is insufficient by 8 million m3. This creates a market opportunity
Indonesia is the world leading producer of Teak Wood with a 35% participation, and is also the leading teak consumer
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Teak Plantations are a long term investment, guaranteed by the land and its trees, growing its value with time
The CompanyThe Company
The Sustainable Development Corporation of the Pacific (SDCP) and its affiliated Indonesian company PT. Bentang Persada Gemilang (BPG) have acquired 30,000 Hectares of land (75,000 Acres) in the Island of Halmahera, which will be devote for sustainable development
2,000 hectares will be dedicated to cultivate Teak timber, and will be sold publicly to people of all nationality
The Company will provide Land certificates, physical tenure and holding of the land, and ownerships, to teak plantation investor
Investors can choose from three investment models:◦ buy the land◦ buy the land, including planting & harvesting services◦ buy into a passive guaranteed profit investment plan,
whereby the company provides full services
Investors agree and accept to protect the ecology of the island, and no insecticides, fungicides herbicides and/or chemicals will be used
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Company is responsible for creating the roads, providing compost and tree clones if they are required, facilitating the logistical services to ship products in and out of the island and providing supporting services to facilitate agricultural and living conditions
Company interacts with local and regional government officers to promote statues and regulation which promote sustainable development in the island
Halmahera is a Virgin Island from the kingdom of Ternate North of Maluku, belonging to Indonesia, and South of the Philippines
Note: Investor con choose to live in the land if so desired
Land Tenure in IndonesiaLand Tenure in Indonesia
An Indonesian national can hold up to 5 Hectares of Land and foreigners are not allowed to own land
However, the Company utilizing its company in Singapore and its company in Indonesia, creates the methods by which
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foreigners can legally hold the land as Indonesian nationals can, inheriting it to their children
Government issued land certificates will be provided to Indonesians. For foreign investors, the company will arrange the land certificates and deposited in a security box in Singapore
This provides land ownership, physical tenure of the land by any person, national or foreigner
Owner can use the land for living, for farming or growing food, for livestock, or for whatever was contractually agreed upon. Foreign retirees are welcomed to help develop the island
The InvestmentThe Investment
Teak Plantations are truly a phenomenal growing investmentTeak Plantations are truly a phenomenal growing investment
They provide physical land ownership, as the most solid of allThey provide physical land ownership, as the most solid of all
guaranteesguarantees
Teak wood is appreciated world wide, and regarded as goodTeak wood is appreciated world wide, and regarded as good
value for the money, providing price stabilityvalue for the money, providing price stability
Plantations are insured by external solid insurance company, ifPlantations are insured by external solid insurance company, if
the guaranteed profits model was chosen. Profit assurance is athe guaranteed profits model was chosen. Profit assurance is a
contractual guaranteed enforced by the courts of Indonesia orcontractual guaranteed enforced by the courts of Indonesia or
SingaporeSingapore
Company facilitates the resale of land if investor wishes toCompany facilitates the resale of land if investor wishes to
retire to increase its liquidity possibilitiesretire to increase its liquidity possibilities
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Investment can be fully paid, or over a 60 month period inInvestment can be fully paid, or over a 60 month period in
Indonesia Rupiah or US DollarsIndonesia Rupiah or US Dollars
In profit guaranteed investments, company provides a 50%In profit guaranteed investments, company provides a 50%
Return on Investment per year, payable every 5 yearsReturn on Investment per year, payable every 5 years
Company can offer volume discounts for purchases greaterCompany can offer volume discounts for purchases greater
than 10 hectares (40 acres) or 100 Hectares (400 Acres)than 10 hectares (40 acres) or 100 Hectares (400 Acres)
Business OpportunityBusiness OpportunityInvest In Teak PlantationInvest In Teak Plantation
(Figures in USD) Profit Ensured ** Buy the Land Buy Land + 5 yr service
Investment for one Hectare of Teak Plantation
$50,000 $35,000 $45,000
Includes
• Land ownership• Legal Notary Cost• Planting (once)• Maintenance(5 Yr)• Fertilizers (5 yrs)• Harvesting (once)• Selling/Shipping
(once)
**Insured against fire, theft & production of 300Mtr3 p/hectare
• Land ownership• Legal Notary Cost• Owners plants,
maintains, harvest, sells his own wood
Investors accept ecological use only
Not Insured. Property within secured grounds
• Land ownership• Legal Notary Cost• Planting (once)• Maintenance (5 Yr)• Fertilizers (5 yrs)• Harvesting (once)
Not Insured.Guaranteed
production of 300 mts3 p/hect
Profit on the 5 year from the sale of the teak wood
$120,000 USD or its equiv. In. Rp
Minus 30% for taxes and expenses
??? Success Fee of 20,000 USD at harvest
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Retains land value
ROI per year
Yes (35,000 to50,000)
50.6% ($84,000)
Yes (35,000 to50,000)
Depends on owner
Yes (35,000 to 50,000)
Depends on owner
** Insured with an Insurance CompanyOne Hectare is 10,000 sq meters, equal to 2.5 acres
Invest In Teak PlantationInvest In Teak PlantationContinuedContinued
(Figures in USD)(Figures in USD) Profit EnsuredProfit Ensured ****
Buy the LandBuy the Land Buy Land + 5 yrBuy Land + 5 yr serviceservice
Materials & Materials & Services:Services:•• Tree clonesTree clones•• Compost and Compost and
Comp. TeaComp. Tea•• Security Serv.Security Serv.
All IncludedAll Included
•• Teak clones $3.00 Teak clones $3.00 ea.ea.
•• Compost at $50 Compost at $50 Mtr3Mtr3
•• Pruning ServicesPruning Services•• Security Services Security Services
All IncludedAll Included
Duration of Duration of servicesservices(after initial 5 (after initial 5 years)years)
Land Cost is Land Cost is only paid once.only paid once. Other services Other services paid every 5 yrs paid every 5 yrs in accordance to in accordance to harvestharvest
Extend every 5 Extend every 5 year periodsyear periods•• Planting (once)Planting (once)•• Maintenance (5 Maintenance (5
Yr)Yr)•• Fertilizers (5 yrs)Fertilizers (5 yrs)•• Harvesting (once)Harvesting (once)•• Selling/ ShippingSelling/ Shipping
Planting services Planting services need to be need to be renewed every 5 renewed every 5 yrsyrs
Book Profit Ensured Book Profit Ensured services or 5 yr services or 5 yr services at any time services at any time at its market valueat its market value
Extend 5 yr periodsExtend 5 yr periods or change to Profit or change to Profit Ensured servicesEnsured services•• Planting (once)Planting (once)•• Maintenance (5 Maintenance (5
Yr)Yr)•• Fertilizers (5 yrs)Fertilizers (5 yrs)•• Harvesting (once)Harvesting (once)
Planting services Planting services need to be need to be renewed every 5 renewed every 5 yrsyrs
Other ServicesOther ServicesReal Estate Real Estate BrokerageBrokerage
Investors wishing Investors wishing to sell their land to sell their land can engage our can engage our Real Estate ServiceReal Estate Service
Investors wishing to Investors wishing to sell their land can sell their land can engage our Real engage our Real Estate ServiceEstate Service
Investors wishing Investors wishing to sell their land to sell their land can engage our can engage our Real Estate ServiceReal Estate Service
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Retains the valueRetains the value of land with its of land with its own rate of own rate of capitalizationcapitalization
Planted land has Planted land has greater value than greater value than empty landempty land
Planted land has Planted land has greater value than greater value than empty landempty land
Planted land has Planted land has greater value than greater value than empty landempty land
Investment Must Be Fully PaidInvestment Must Be Fully Paid InIn
However, 30% or more in down payment is also possible, and remaining amount paid up to 5 years
Financing in Indonesian Rupiah
US Dollars
Max Fin p/hect. (70%) Rp 350,000,000 $35,000Interest Rate PA 18% 9%Payments (60 max) Rp 8.887.700 $726.54
Illustration of the “Profit Ensured” model over a 30 yr period
(Figures are in Indonesian Rupiahs)
PeriodPrice m3
(1)
Investment and Cost of
Operation (2)
Expected Revenue
p/Hect. (3)
Distributed Guaranteed
Profit (4)
PT. BPG-30% Taxes & Expenses
First 5 Yrs 4.000.000
500.000.000Initial Inv.
1.200.000.000 840.000.000 360.000.000
Next 5Yrs (10) 4.500.000240.000.000
Est. Cost1.350.000.000 945.000.000 405.000.000
Next 5Yrs (15)5.000.000
280.000.000Est. Cost
1.500.000.000 1.050.000.000 450.000.000
Next 5Yrs (20)5.500.000
330.000.000Est. Cost
1.650.000.000 1.115.000.000 495.000.000
Next 5Yrs (25) 6.000.000 390.000.000 1.800.000.000 1.260.000.000 540.000.000
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Est. CostNext 5Yrs (30)
6.500.000460.000.000
Est Rev1.950.000.000 1.365.000.000 585.000.000
Notes:1. Moderate price increases were projected for the wood2. The investment is made the first 5 years. Thereafter, the estimated maintenance
and harvesting cost is included. Price can change in accordance to reality3. Wood price times 300 m3 expected in wood production. 4. Guaranteed net income after deducting 30% of the revenue to pay for taxes and
other final expenses5. Indonesian income tax and other expenses
Plantation ManagementPlantation Management
The company develops/manages privately owned Teak Plantations utilizing policies and procedures that best contribute to social, economical and environmental concerns, in compliance to national & international laws in the subject
Teak Plantation management maintains “sustainable development” in the present and the future, as the foreground of its activities and actions, and is poised to meet all forest/tree harvesting certification requirements as may arise
No insecticides, fungicides, pesticides or artificial chemicals are used, in the Teak Plantations or the surrounding farms, to preserve the island free of contaminants
Teak Plantation managers and investors, contractually agree to use compost, and biological and organic fertilizers, for growing and nurturing healthy crops
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Compost Production
Local people employed are adequately compensated and receive medical benefits to provide for a healthy sustainable living standard
Teak Plantations are being developed in plateaus where tall grass existed. The land previously unutilized, now form part of the sustainable development efforts of the island
Ecological indicators remain intact. With Teak trees, should help to produce Oxygen.
Lot SizeLot Size
A lot size is 10,000 (one hectare) +200 meters given by the company
The 200 meters provided by the company are in the front of the lot as shown on right
Each lot has access to the street in two sides
The company reserved lot is for future use, and can serve as decoration for the plantation or the Estate. Investor can not use this land nor erect any construction in this area
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Drawing not to scale
100 mtrs
1 hectare = 10,000 sq mtrs
1 hectare = 2.5 acres
5 mtrs 5 mtrsReserved for Company
Usage, decoration
2 ways
Street / Jalan
Shoulder
Shoulder
Two LotsTwo Lots
Combines the land of both lots to create a 200 Mts lot in the middle like is shown on the graph below
However, Investors and the company can accommodate the amount of land reserved for the company in a way which both can better utilize the land
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Drawing is not in scale
100 mtrs
1 hectare = 10,000 sq mtrs
1 hectare = 2.5 acres
5 mtrs 5 mtrsReserved for Company
Usage, decoration
2 ways traffic
Street / Jalan
Shoulder
Shoulder
Drawing is not in scale
100 mtrs
1 hectare = 10,000 sq mtrs
1 hectare = 2.5 acres
5 mtrs 5 mtrsReserved for Company
Usage, decoration
20 Lots Are Located In An Area Of One Kms Long By 260 Mts Wide
Agricultural Clusters Are Comprised Of 12 Blocks
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High Productivity Teak PlantsHigh Productivity Teak Plants
Teak growing technology has evolved over the past few years and can now deliver wood faster providing specific conditions are met
Plants are created and monitored in a nursery. Then they are planted in good fertile soil for two months to get them ready for the final planting grown
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Plants & Roots are ready to be planted after 3 months
High Yield Teak PlantsHigh Yield Teak PlantsIndonesian Teak Clones yield higher volumes Indonesian Teak Clones yield higher volumes
(300 mtrs3/Hectare)(300 mtrs3/Hectare)
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Selecting the Best Stems
Teak Plantation MaintenanceTeak Plantation Maintenance ProceduresProcedures
Each Teak Plantations maintain a running operating log
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JUNClone
MyanmarThailandJPPNatural
The Log begins when the land is bought by an investor or producer
Photos are taken of the land which include the four (rectangular) or more GPS points that limit the plantation
The log is updated every time work is performed on the land
Planting teak provides a unique id number to maintain an inventory of each plant
The Tree circumference is measured every 6 months, at the same high level and recorded in the log. Timber growth is calculated and evaluated versus templates to determine their progress, and or take necessary corrective or improvement measures
Every year at least 10 Mtr3 per hectare of compost are applied to the Plantation. All fertilizing or plague fighting activities are recorded
Pruning and Thinning is equally recorded. Inventory of the cut trees are reduced from the standing tree inventory. Irrigation is provided once a month during dry season
Photos of the Plantation are taken every year, and kept during a 30 year period
Care is exercised at all times to prevent fires, pilferage, and plague infestation. Although the Teak Plants and trees generate a plague resistant resin, trees must be physically inspect to ensure their health, or deal with its cure immediately
Animals that come to live in the Teak plantation will not be harmed
Owners of the Plantation will receive a copy of the Plantation Operating Log upon request or automatically once every year
For more information contact
PT. Bentang Persada Gemilang (BPG)Jl. Pecenongan 72, Komplex Redtop, Blok C9Jakarta, 10120, IndonesiaPh +6221 350 0162
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