Investment Prospect

Investment prospect which can be developed in North Sumatra Province varies with the availability of opened sectors for capital investment, either Foreign or Domestic investments.

Industrial Sector

A. Palm Oil Processing Industry

Palm oil processing industry is good to be developed, due to the abundantly available raw material in North Sumatra and he increasing world need of CPO. Data from the year 2008 shows that the area of Government Palm Plantation was 278,272.28 ha (6% increase within the period of 2006-2008), with a total production of 14,495 tons. In the same year, the area of household Plantation was 367,741.02 ha (8% increase within the period of 2006-2008), with a total production of 14,495,450 tons.

Locations :

• Asahan Regency (Kisaran District)
• Deli Serdang Regency (STM Hulu District and Hamparan Perak District)
• Labuhan Batu Regency (Torgamba District)
• Langkat Regency (Sei Lepan District)
• Serdang Bedagai Regency (Tebing Tinggi District and Sei Rampah District)
• South Tapanuli Regency (Barumun District)
• Tebing Tinggi Municipality (Rambutan District)

B. Cooking Oil Industry

Cooking oil industry is highly profitable as it has a good market prospect, due to the abundantly available raw material in North Sumatra.

Locations :

• Asahan Regency (Kisaran District)
• Labuhan Batu Regency (Torgamba District and Labuhan Batu District)
• Langkat Regency (Sei Lepan District)
• South Tapanuli Regency (Barumun District)

C. Oleochemical Industry

Oleochemical products consist of Stearic Acid, Glycerine, Fatty Acid and Fatty Alcohol. The need for oleochemicals is huge, therefore the developing this industry will be highly profitable.

Locations :

• Asahan Regency (Kisaran District)
• Deli Serdang Regency (STM. Hulu District and Hamparan Perak District)
• Labuhan Batu Regency (Torgamba District and Labuhan Batu District)
• Langkat Regency (Sei Lepan District)
• Serdang Bedagai Regency (Tebing Tinggi dan Sei Rampah District)
• South Tapanuli Regency (Barumun District)

D. Processed-Rubber Industry

Processed-rubber Industry is good to be developed, with the support of the abundantly available raw material in North Sumatra. In the year 2008, the area of Rubber Plantation was 350,218 ha, with a total production of 450,000 tons.

Locations :

• Mandailing Natal Regency (Kota Nopan District)
• South Nias Regency (Bawolato District)
• Nias Regency (Gunung Sitoli)
• South Tapanuli Regency (Districts of Sosa, Batang Toru)
• Central Tapanuli Regency (Sibabangun District)

E. Livestock Food Industry

With the growth of farming in North Sumatra, the need for livestock food increases. In 2008, the area of corn cultivation in North Sumatra 318,569 ha with a total production of 953,541.51 tons. With the huge potential of raw material and need for livestock food, livestock food industry needs to be developed.

Locations :

• Deli Serdang Regency (Batang Kuis District)
• Labuhan Batu Regency (Bilah Hilir District)

F. Fruit Processing Industry

Fruit processing industry is opened for development, using raw materials such as markisa (marquisa/passion fruit), rambutan (Nephelium lappaceum), coconut, pineapple, salak (Salacca edulis) and banana.

Locations :

• Humbang Hasundutan Regency (Pakkat District)
• Karo Regency (Berastagi District)
• Langkat Regency
• Binjai Municipality
• South Nias Regency (Batu Islands)
• Nias Regency (Districts of Sirombu and Lahewa)
• Simalungun Regency (P. Siantar District)
• South Tapanuli Regency (West Padangsidimpuan District and Batang Angkola District)
• North Tapanuli Regency (Tarutung)

Service Sector

A. Integrated Business Center Area

Cities in North Sumatra Province are opened for business center area development. In this case, the business center area is for office, shop, bank and retailer in very strategic locations.

Locations :

• Medan Municipality
• Binjai Municipality
• Padangsidimpuan Municipality
• Pematang Siantar Municipality
• Sibolga Municipality
• Tanjung Balai Municipality
• Tebing Tinggi Municipality

B. Large Industrial Area

The development of large industrial area is very likely with the support of complete facilities and infrastructure.

Locations :

• Medan Municipality
• Tanjung Balai Municipality
• Deli Serdang Regency

C. Seaport Warehousing

The large import/export trade transactions need large storages for merchandise. Part of merchandise import/export traffic is via seaport. As the quantity of imported/exported merchandise is huge, it needs a huge warehousing facilities, so warehouses are good to be developed.

Locations :

• Medan Municipality
• Sibolga Municipality
• Tanjung Balai Municipality

Sector Of Agriculture And Plantation

The business in sectors of agriculture and plantation is very good to be developed in North Sumatra Province. Other than several business sector mentioned below are cultivation of pineapple, banana and seaweed.

A. Palm Plantation

To fulfill the need for CPO and palm cooking oil, the palm plantation is very worth developing. Production of palm oil in North Sumatra in the year 2006 which reached more than 3 million tons, was not enough to fulfill the need for CPO, either for local or world need. Natural condition and the availability of land are very supportive to developing palm oil plantation.

Locations :

• South Tapanuli Regency
• Mandailing Natal Regency

B. Corn Cultivation

To fulfill the need for livestock food, corn cultivation is very worth developing. The production of corn in the year 2008 which reached 1,098,969 tons, was not enough to fulfill the need for raw material for livestock food.

Locations :

• Asahan Regency (Districts of B.P Mandoge, Simpang Empat, Air Biru, Buntu Pane)
• Dairi Regency (Districts of Tiga Lingga, Pinem, Pegagan Hilir)
• Karo Regency (Districts of Tiga Panah, Tiga Binanga, Munte, Simpang Empat)
• Pakpak Bharat Regency (Salak District and Kerajaan District)
• Samosir Regency (Harian District)
• Simalungun Regency (Raya District, Pane District, and Purba District)
• South Tapanuli Regency (Districts of Padang Bolak, Sipirok)
• Samosir Regency (Habinsaran District)

C. Coffee Cultivation and Processing

Commodities of robusta and arabica coffee from North Sumatra are very much liked in International market. The need for these types of coffee is very high, therefore their cultivation and processing is very good to be developed.

Locations :

• Dairi Regency (Districts of Silima Punga-Punga, Siempat Nempu Hulu)
• Humbang Hasundutan Regency (Lintong Nihuta District)
• Pakpak Bharat Regency (Districts of Salak, Kerajaan)
• North Tapanuli Regency (Pahae Jahe District)

D. Potato Cultivation

Potato as a food commodity is good to be developed. With the large demand of vegetables by countries like Singapore and Malaysia, potato cultivation is worth developing.

Locations :

• Dairi Regency (Districts of Parbuluan, Sumbul)
• Karo Regency (Berastagi District)

E. Tobacco

Tobacco is one of the export commodities worth developing. Proper land condition will result in the best quality tobacco. Deli tobacco is very famous to the world market in Bremen.

Locations :

• Deli Serdang Regency (Districts of Labuhan Deli and Hamparan Perak)

F. Ginger Cultivation

Ginger is a plant which is widely used as spice for food, beverages, and drugs. There are many varieties of ginger plant. Large quantity of dried ginger is exported to Japan, South Korea, Singapore, Malaysia, Saudi Arabia, and Australia.

Locations :

• Simalungun Regency (Silimakuta District and Raya District)
• Toba Samosir Regency (Districts of Lumban Julu, Habinsaran)
• Simalungun Regency (Silimakuta District dan Raya District)

Sector Of Fishery And Farming

Sectors of fishery and farming produce export commodities worth developing, particularly the fishery sector, where major fishes produced are export commodities. Products of farming sector are not enough to fulfill local needs.

A. Shrimp Hatchery

Shrimp hatchery is highly needed by shrimp cultivation business. The need for shrimp broods is still high, so this business sector is worth developing.

Locations :

• Central Tapanuli Regency (Barus District, Tapian Nauli District, Lumut District, Muara Kolang District)
• Asahan Regency (Tanjung Tiram District)
• Labuhan Batu Regency (Kualuh Hilir District)
• Deli Serdang Regency (Percut Sei Tuan District)
• Langkat Regency (Sei Secanggang District, Tanjung Pura District, Gebang District, Pangkalan Brandan District, Pangkalan Susu District)

B. Shrimp Cultivation

Shrimp is a continually increasing export commodity. Types of shrimp usually developed are windu shrimp/tiger prawn.

Locations :

• Central Tapanuli Regency (Barus District, Tapian Nauli District, Lumut District, Muara Kolang District)
• Asahan Regency (Tanjung Tiram District)
• Labuhan Batu Regency (Kualuh Hilir District)
• Deli Serdang Regency (Percut Sei Tuan District)
• Langkat Regency (Sei Secanggang District, Tanjung Pura District, Gebang District, Pangkalan Brandan District, Pangkalan Susu District)

C. Grouper Fish Cultivation

Market prospect of Grouper fish is very good. This fish has a very delicious taste and draws high interest of local consumers and foreign consumers, especially from Japan, Singapore, China, Taiwan, Hong Kong and United States of America.

Locations :

• Central Tapanuli Regency (Sibolga District, Barus District, Sorkam District)
• Asahan Regency (Tanjung Tiram District)
• Labuhan Batu Regency (Panai Hilir District)
• Deli Serdang Regency (Percut Sei Tuan District)
• Langkat Regency (Pangkalan Susu District, Secanggang District, Pangkalan Brandan District)
• Mandailing Natal Regency (Natal District, Muara Batang Gadis District)
• Nias Regency (Sirombu District)
• South Nias Regency (Batu Islands District, Teluk Dalam District)

D. Seaweed Cultivation

As a raw material for cosmetics and food, seaweed is very much liked in International market. Seaweed cultivation is also very good to be developed.

Locations :

• South Nias Regency (Batu Islands)
• Nias Regency (Sirombu District)

Mining Sector

Mining sector is worth developing due to the availability of limestone, feldspar, kaolin, and sulfur. Mining sector is worth developing, considering that these materials are available in moderate amount.

Locations :

• North Tapanuli Regency
• Humbang Hasundutan Regency