INTEGRATED PALM OIL PLANTATIONS, MILL & REFINING

Head OfficeJln. Medan-Banda Aceh, KM 307, Alue Buket-Lhoekseukoen, Aceh Utara 24382

Aceh, Indonesia. Tel/Fax : +62-645-31441On-Line HP: +62813-10189777 (Indonesia) +6019-2577488 (Malaysia)

E-mail: sawitaceh@yahoo.com

Branch OfficeBireuen: Wisma Habib Bugak, Jln. Bugak Krueng, Jangka-Bireuen, Aceh, Indonesia. Tel/Fax: +62-644-7443047Jakarta: Menara Rajawali Lt. 18, Jln. Mega Kuningan Lot # 5.1. Jakarta 12950 Indonesia. Tel/Fax: +62-21-5764045Malaysia: No. 22, Makmur 10, Bandar Tun Razak, 56000, Kuala Lumpur, Malaysia. Tel/Fax: +60-3-91710964Mekkah: Bayt al-Ashi, Po. Box : 5321, Makkah Al-Mukarramah, Saudi Arabia. Tel/Fax: +966-2-5594083

BACKGROUND

The Province of Aceh in 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 provinces in Sumatra, Jawa and other parts of the country. Furthermore 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 and the armed forces of the 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. This devastation of the Province finally led to peace between the GAM and the central government. 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, it is timely to consider the opportunity to participate in the development of the Province of Aceh. The Investors with support of business oriented local government this is golden opportunity to start business. The Province of Aceh have well accessible via a good network of roads to Medan and Banda Aceh. The capital city like Banda Aceh and Lhokseumawe has a well-developed oil and gas industry, an international sea port and served by regional air lines.

The most potentially industry in Aceh is the palm oil. It is the world’s most produced and traded vegetable oil, and used in food and beauty products; in Western Europe and the US. 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, renewable fuel that will help solve the world’s energy problems. The Government of Aceh have initiated plans to develop an Palm Oil 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 palm oil. The industry in Aceh started in the 1950s. There are palm oil plantations developed by the state owned company (PTPN), private companies, and local and outside individuals. Currently there are more than 260,000 hectares palms oil being cultivated. The Government has an ongoing program to boost the oil palm industry and enhance the livelihood of the local populations in the Province of Aceh by providing free oil palm seedlings to local farmers. This program is funded by foreign institutions and so far some 6 million seedlings have been handed out.

However the palm oil industry in Aceh has not really expanded as compared to the other provinces such as Sumatra Utara, Riau, Jambi and Kalimantan. Thus there are still available areas of land very suitable for large scale palm oil cultivation. There are also some areas 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 such as palm oil plantations, mill and refining.

VISION AND MISSION

Green Vision : To ensure protection of Aceh natural environment as Aceh Green VisionHumanitarian Mission: To be a Group established in Aceh with main objective to help conflict and tsunami victims, especially in the palm oil industry

PT. ACEH SAWIT INDUSTRY WORLD VIEW

PT. Aceh Sawit Industry (PT. ASI) is member of Crescent-Alhilal International Group, established in Aceh with main objective to help conflict and tsunami victims, especially in the palm oil 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 and Investors has set up the joint venture local company and will invite foreign and local Indonesian investors to develop palm oil plantation and establish a crude palm oil mill and refinery plant in North Aceh, East Aceh and other place.

After Aceh tsunami in 2004 Crescent-Alhilal Group was arrangge donation to Government of Aceh and the victim of tsunami more than US$.100 Million. And since 2008 was facilitated of investment from Middle East to Aceh, especially in palm oil plantation in Peurelak, East Aceh. The Government of Aceh has invited Crescent-Alhilal International Group Kuala Lumpur Office with Dr. Hilmy Bakar to manage investment from local and foreign parties who interested to Aceh.

PT. Aceh Sawit Industry will introduce integrated project in palm oil industry like plantations, mill and refining, 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 new palm oil milling and cooking palm oil business.

The primary objective is establish one or more mini palm oil mills in selected strategic locations within palm oil plantings of smallholders and KUD, collectively with sufficient FFB for the proposed mini mill(s) to operate economically. By having these mills as strategic partners in business the local farmers shall be able to fetch better prices for their fruits and without having to deal with middle men or ‘tengkulak’ who very often do not optimize the buying prices. Due to limited processing facility in the region the local farmers have to sell off their palm oil fruits (FFB) to other outside distant mills incurring high transportation costs. The lengthy period and delays at the mills affect adversely the quality of the fruits resulting in penalty and cost deduction. Currently the local smallholder farmers are not having fair prices for their produce.

THE COMPANY BASIC INFORMATION

- The CompanyCompany Register Name : PT. ACEH SAWIT INDUSTRYStatus : Local Investment Company (PMDN)Notarial Act : No: 55 – 17 March 2011Notary Name : Nila Rufaida, SH. Lhokseumawe NotaryPaid Up Capital : Rp. 20.000.000.000.00Registration Company (TDP) : No: 010315101139Operational License (SITU) : No: 510.1/225/111/2011Trading License (SIUP) : No: 127/01-03/PB/111/2011Tax Registration (NPWP) : No: 03.105.135.2-000The Main Share Holders : Dr. Hilmy Bakar : 26 %

Crescent Group: 25 %Mr. M. Zainy Yusuf & Group: 24 %Mrs. Amalia Haeronesa & Group: 25 %

Company Philosophy : Green Vision, Humanitarian Mission

- The Management TeamChairman / President Com. : Mr. M. Zaini Yusuf. STDeputy Chairman : Mr. Farid P. Syafi’i. M.Sc.Commissioner : Mr. Juliapriadi NA. S.Hut.Commissioner : Mrs. Cut Syarifah Radhiah Al-HabsyiPresident Director / CEO : Dr. Hilmy Bakar, MBA.Admin/Financ. Director : Mrs. Amalia HaeronesiaProject Director (Mill) : Mr. Said Mudzakir Said AbdurrahmanProject Director (Nursery) : Mr. Sulaiman Ismail AB.Project Director (Plantation) : Mr. Ikhwanuddin SE.

- The Business Focus1. Palm Oil Plantations2. Palm Oil Mill & Refining3. Palm Oil Nursery4. Palm Oil Trading, Transportation & Management5. Palm Oil Consultancy and Services

- The Project Priority1. Development 20.000 ha palm oil plantations in Aceh Utara.2. Build palm oil mill capacity 30mt/h in Aceh Utara. 3. Build cpo refinery capacity 300mt/day in Aceh Utara.4. Build palm oil mini mill capacity 10mt/h in Aceh Timur.5. Export original and high quality palm oil seeds from Malaysia.