Prospectus: Development of Industrial-Scale Beef Cattle Farming (Fattening) in Aceh Besar Regency

Aceh Province has a strong cultural tradition regarding beef consumption, one of which is the Meugang tradition celebrated ahead of Ramadan, Eid al-Fitr, and Eid al-Adha. The high demand for beef during these moments, coupled with the daily consumption of the community and the needs of the HoReCa sector (hotels, restaurants, and catering), makes Aceh a highly potential market. However, until now, meeting the beef demand in Aceh is still highly dependent on supplies from outside the province, particularly North Sumatra.

To answer this challenge as well as a massive opportunity, the Aceh Investment and One-Stop Integrated Services Agency (DPMPTSP) offers a strategic investment opportunity: Development of Industrial-Scale Beef Cattle Farming (Fattening) in Aceh Besar Regency.

Why Aceh Besar?

Aceh Besar Regency is the most ideal location for developing an integrated livestock industry in Aceh Province. Here are the comparative advantages offered:

Strategic Location & Connectivity: Located very close to the provincial capital (Banda Aceh), Sultan Iskandar Muda International Airport, and Malahayati Port. This guarantees exceptional logistical efficiency, both for domestic distribution and potential exports.

Land & Feed Availability: An area of ± 5 hectares has been mapped out in Data Gaseu Village, Seulimum District, which is highly suitable for a fattening center. Aceh Besar also has an abundant supply of agricultural waste (such as rice straw)—reaching 150-230 thousand tons per year—as raw material for cheap and sustainable feed.

Strong Supporting Infrastructure: The Superior Livestock Breeding and Forage Center (BPTU-HPT) in Indrapuri is available and capable of supplying superior crossbred seeds. Additionally, there is the modern-scale Lambaro Slaughterhouse (RPH) to support the downstream processing of hygienic and Halal-certified meat products.

Regulatory Support: Seulimum District has been designated as a Local Activity Center for promotion (PKLp) for the development of industrial zones, providing legal and spatial certainty for investors.

Highly Promising Financial Projections

Based on the business feasibility analysis, the investment model offered is pure fattening with a capacity of 1,500 cattle per cycle (a 5-month fattening duration), or 3,000 cattle per year. The funding scheme uses 100% self-funded capital (equity).

The project's financial feasibility indicators :

Initial Investment (CAPEX): Rp 7,450,000,000 (Includes a 10-year land lease, construction of pens, equipment, warehouses, and initial operational vehicles).

Operational Costs (OPEX): Rp 76,482,000,000 per year (The majority is allocated for procuring feeder cattle and feed).

Projected Revenue: Rp 80,190,000,000 per year.

Net Profit: Rp 3,708,000,000 per year.

Payback Period (PBP): 2.01 Years. This means the investor's capital is projected to be returned in just 2 years and 1 month.

Internal Rate of Return (IRR): 49.58%. This figure is far above standard investment interest rates, indicating this project is highly feasible and extremely profitable.

Net Present Value (NPV): Rp 15,339,000,000 (with a 10% discount rate).

Environmentally Friendly and Sustainable (ESG/SDGs)

This investment is not only oriented toward financial gain but is also designed to align with Environmental, Social, and Governance (ESG) principles and Sustainable Development Goals (SDGs) targets.

The industrial design adopts a Zero Waste Policy concept, where solid and liquid waste (cattle feces and urine) will be managed into biogas and organic fertilizer. These can be reused for the community's agricultural land or farm operations. This project will also absorb local labor and integrate the community through a nucleus-plasma partnership model , creating a multiplier effect for the economy of Aceh Besar Regency.

Aceh Besar is ready to become the center of beef independence on the island of Sumatra. With a guaranteed market , very high returns , facilitating regulations , and supporting infrastructure, this is the best momentum to invest.

The Government of Aceh, through DPMPTSP Aceh, is committed to providing accelerated licensing services and exploring possible regional incentive facilities for investors committed to building this industry.

Ready to be part of the food security revolution in Aceh?

Contact us for more detailed information, location surveys, and discussions on partnership schemes.

DPMPTSP Provinsi Aceh

Address: Jl. Tgk. Imeum Lueng Bata, Gampong Cot Masjid, Banda Aceh (23246), Aceh.

Phone: +62 811 678 1139.

Email: promotion@investaceh.id

Website: investaceh.id | https://dpmptsp.acehprov.go.id.

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