Prospectus: Industrial Salt Manufacturing in Aceh Province

The Government has set an ambitious target through Presidential Regulation No. 17 of 2025: To halt industrial salt imports by 2027. This strategic policy opens up a massive market opportunity for local salt producers. In Aceh Province alone, the demand for industrial salt (for cement factories, urea fertilizer plants, ice factories, and water treatment) reaches 36,000 tons per year. However, to date, the majority of this demand is still supplied from outside the region.

To seize this golden opportunity and achieve industrial independence, the Aceh Investment and One-Stop Integrated Services Agency (DPMPTSP) offers a strategic investment opportunity: The Development and Downstreaming Project of Industrial Salt in Aceh Province.

Why Invest in Aceh's Salt Sector?

Aceh has a long history as a salt-producing coastal region. With the designation of Aceh as one of the People's Salt Economic Centers (SEGAR) by the Indonesian Ministry of Marine Affairs and Fisheries, investments in this sector are fully supported by both central and regional government regulations.

Here are the comparative advantages of investing in industrial salt in Aceh:

Abundant Raw Materials: There are 11 regencies designated as prime areas for people's salt with long coastlines. Local salt production continues to increase (reaching over 12,000 tons in 2024), guaranteeing the supply of raw material (krosok salt) for processing plants.

Captive Market: With a deficit of tens of thousands of tons in Aceh's industrial salt demand per year, investors have a local market ready to absorb the production, not to mention the potential for expansion throughout the island of Sumatra.

Integrated Infrastructure: This project is designed to be integrated. The upstream sector (raw material production) is centered in Lhoong District, Aceh Besar, which has proven productive using green house (tunnel) technology. Meanwhile, the downstream sector (processing plant) is directed to the Kutaraja Ocean Fishing Port (PPS) area in Banda Aceh.

Industrial Zone Support: The plant location at PPS Kutaraja sits on land with a Land Management Right (HPL) status owned by the Aceh Government. It is fully equipped with supporting infrastructure such as roads, electricity, drainage, wastewater treatment plants (IPAL), and highly strategic port access.

Financial Projections

Based on the business feasibility analysis, the investment model offered is the construction of a modern-scale salt processing plant with a production capacity of 20,000 tons per year. The funding scheme can be executed through a Private/Investor Partnership (100% Equity) or a combination with bank loans.

The project's financial feasibility indicators (Combination Scheme) are promising:

Initial Investment (CAPEX): Rp 27,801,500,000 (Includes land lease, plant construction, modern processing machinery such as washer units, centrifuges, dryers, and licensing).

Product Selling Price: Projected price for industrial salt is Rp 3,000/kg.

Internal Rate of Return (IRR): 17%. This figure far exceeds the Weighted Average Cost of Capital (WACC) of 12.12%, indicating a highly attractive profitability level and manageable financial risk.

Net Present Value (NPV): Rp 10,467,056,088. This project is projected to provide a net added value of more than 10 Billion Rupiah beyond the return on capital.

Payback Period (PBP): Investment capital is projected to be returned by the 8th Year, providing a very secure long-term profit margin for investors.

Upholding ESG Concepts and Social Empowerment

This business model does not only offer financial gains but is also designed with Environmental, Social, and Governance (ESG) principles. The partnership concept will position local traditional salt farmers as the main suppliers of raw materials (krosok salt).

Therefore, this investment will create a mutually beneficial supply chain (inclusive business), significantly absorb local labor, and improve the living standards of Aceh's coastal communities. Furthermore, the upstream production method applies a Zero Waste Policy, where seawater is fully utilized without generating hazardous waste.

Let's Invest in Aceh!

Aceh is ready to pioneer industrial salt independence on the island of Sumatra. With a large market, high returns, solid raw material support, and ease of licensing services (Ease of Doing Business), this is the best momentum for you to invest.

The Government of Aceh, through DPMPTSP Aceh, is committed to providing full assistance, accelerated licensing, and legal certainty for investors ready to build the future of the national salt industry in Aceh.

Contact us for more detailed information, location surveys, and investment scheme discussions.

DPMPTSP Provinsi Aceh

Address: Jl. Tgk. Imuem Lueng Bata, Gampong Cot Mesjid, 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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