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PROPOSED DEVELOPMENT

Aceh International Fishing PortLAMPULO - BANDA ACEH - REPUBLIC OF INDONESIA

Prepared by:

Government of Aceh

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EXECUTIVE SUMMARY

Aceh province has a land area of 57,365.57 km2, coastline 1,660 km long, sea water area of 295,370 km2, consisting of territorial waters and islands covering an area of 56,563 km2 and economic exclusive zone of 238,807 km2. This region consists a cluster of large and small island numbering to 180 islands, 44 islands are inhabited and 136 islands are uninhabited. There are 173 important rivers that make Aceh as one of the potential areas in maritime and fishery sectors. The potency of Aceh’s territorial waters and islands is estimated numbering to 220.090 tons and Execlusive Economic Zone (EEZ) numbering to 203.320 tons. The potency of Maximum Sustainable Yield (MSY) of the territorial waters and islands is numbering to 110.045 tons and EEZ numbering to 162.656 tons. Utilization level entirely reached 130.271 tons or 47,77% (in 2008), therefore it has opportunity to develop numbering to 52,23%. Based upon these data, the potency of Aceh’s fishing is more than 250.000 tons per year, or about 500 million USD per year.

Development of catch fishing post-earthquake and tsunami disasters in Aceh Province is expected to be a source of new growth (engine of growth) to the regional economy. The important thing that much supports the fishing activities is the availability of a fishing port that is adequate and able accommodate various integrated and environmentally friendly industry oriented fishing activities. The development of International Fishing Port of Lampulo had been started by Aceh-Nias Reconstruction and Rehabilitation Agency (BRR Aceh-Nias) is very significant to stimulate the real sector economic growth in coastal areas of Aceh Province. In order to maximize the Aceh’s fishing potency, especially to complete the development of International Fishing Port of Lampulo Banda Aceh is required additional fund in aggregate of USD 1.000.000.000. (One Billion US Dollars).

As of the expiry of BRR task period in Aceh province, and after the realization of development of Lampulo Fishing Port in about 20 % of the total funds from first step, its development progress is running slowly due to lack of regional fund in Aceh province. Consequently, the port facility established at cost USD 40 Millions, is becoming useless because it is unable to be used by fishers in surroundings Aceh Province and others.

The existence of Lampulo Fishing Port is significantly required by Aceh fisher communities who suffered as result of tsunami, especially to improve their income which is under standards. Moreover, the Aceh fisher communities is one of the lower income communities that is under poverty line. The development of Lampulo Fishing Port including its infrastructures will be very significant and having direct impact toward elimination of high unemployment and poverty in Aceh province. Upon this reason, the international financial institution such as Islamic Development Bank (IDB) Jeddah is very interested in the development program of Aceh International Fishing Port, as uttered by its President to the Governor of Aceh in the meeting held on last May 8, 2012. The Investors with support from Bappenas and Ministry of Marine Affairs and Fisheries are hoped able to facilitate the continuation of development, which is desired by Aceh fisher communities.

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Preface

Fishing Port is an area in which all fishery business activities carried out, that provides multi services for fishery activities, absorbs large manpower, industrial and economic sectors. Referring to article 1 paragraph 1 of the Decree of Minister of Marine Affairs and Fisheries (KP) No.16/MEN/2006 regarding Fishing Port, that it is functioning to support the management and utilization of fish resources and its environment starting from pre-production, production, processing until marketing, which is carried out in one fishing business system.

Aceh Province has Local Regulation (Qonun) on Fishing Number 7 Year 2010, as a legal base the management of fisheries. In Chapter II Article 2 mentioned that the management of fisheries is carried out based on the principle of Islam, utilization, kinship, justice, partnership, togetherness, cohesiveness, openness, efficiency, and sustainable ecosystem conservation.

Lampulo Fishing Port is one of the largest fishing ports in Aceh, located in Kota Banda Aceh, this is the Regional Technical Implementation Unit from the Maritime and Fisheries Agency of Aceh. Any information presented in this brief proposal shows that the development of Lampulo Fishing Port is a proper step especially to improve the utilization of marine and fishery resources in order to increase the economy of Aceh.

This proposal of Lampulo Fishing Port presents data of facilities, data of development progress of Lampulo Fishing Port in the new location. Finally, we hope this proposal will provide the information concerning Lampulo Fishing Port that is usable for many segments, universities, industries, fishery communities and investors especially for completing its development. Banda Aceh, January, 01, 2013 The Coordinator Team of Aceh International Fishing Port Development

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Table of Contents

1. Introduction and Background 2. Policies, Tasks and Functions 3. Profile of Fishing Port Lampulo Banda Aceh 4. Development Plan of Lampulo Banda Aceh Port 5. Needs of Facility and Cost 6. Conclusion

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1. Introduction and Background

Historically, particularly in the 17th century, Aceh had ever enjoyed its golden era under the leadership of Sultan Iskandar Muda (1607-1636). According to studies by the historians, this was the policies of his preceding Sultans that have made Aceh a Maritime Kingdom and able to maximize its maritime potency. This strategic policy has evidentially brought the Aceh Kingdom to reach its golden era and brought prosperity to its entire community. Today, this province has a land area of 57,365.57 km2, coastline of 1,660 km long, the sea water area of 295,370 km2, consisting of territorial waters and islands covering an area of 56,563 km2 and the Exclusive Economic Zone of 238,807 km2. This region consists of a cluster of large and small islands amounting to 180 islands, 44 islands are inhabited and 136 islands are uninhabited. There are 173 important rivers that make Aceh one of potential areas in marine and fishery sector. The potency of territorial waters and islands of Aceh is estimated at 220,090 tons and the EEZ at 203,320 tons. The potential maximum sustainable yield (MSY) of the territorial waters and islands is 110,045 tons and the EEZ is 162,656 tons. The overall utilization rate reaches 130,271 tons or 47.77% (in 2008), thus, there is an opportunity for development of 52.23%. Therefore, based on this data, the potential fishery of Aceh is more than 250,000 tons per year, or about USD 500 million per

year. In the Coordinating Meeting on Masterplan of Western Region on June 29 to July 2, 2009 in Yogyakarta, the Aceh Province has filed its short-term (5 years), medium (10 years) and long-term (20 years) development plan. Totally 152 PP will be developed within that period which are to be divided into 2 WPP, namely 87 WPP PP will be developed in the WPP 571 (the Malacca Strait and the Andaman Sea), that spread in 8 Regencies / Cities and 65 PP will be developed in the WPP 572 (the Indian Ocean Western of Sumatra and the Sunda Strait), that spread in 10 Regencies / Cities. Development of catch fishing post-earthquake and tsunami in Aceh Province is expected to be a source of new growth (engine of growth) for the regional economy. The important thing that much supports the fishing activities is the availability of a fishing port that is adequate and able accommodate various integrated and environmentally friendly industry oriented fishing activities. Development of this fishing port is designated, among other things, to the catching preparation activities, unloading the catching outcomes, up to the processing, marketing and distribution of the catching outcomes.

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Referring to article 1 paragraph 1 of the Decree of the Maritime & Fishery Minister No.16/MEN/2006 regarding Fishing Port, that a fishing port functions to support the management and utilization of fish resources and its environment ranging from the preproduction, production, processing to the marketing, which is implemented in a fishery business system. Lampulo Fishing Port is one of the largest fishing ports in Aceh, located in Banda Aceh City, this port is the Regional Technical Implementation Unit of the Aceh Marine and Fisheries Agency. Development of Lampulo Fishing Port in Banda Aceh as an International Fishing Port is a proper step, particularly in increasing utilization of marine and fishery resources to improve Aceh’s economy. Based on the Feasibility Study that was conducted by the Marine and Fisheries Agency of Aceh Province together with the Center for Coastal and Marine Resources Studies of the Bogor Agricultural Institute, the Lampulo Fishing Port as one of the major fisheries in Aceh Province is presently not able to operate optimally yet, thus, it is necessary to think about optimization of functions of that port. Condition of the fishing port in Lampulo is presently not feasible anymore as a fishing port, due to (i) the port capacity is inadequate and its under-standard condition (ii) the occurrence of shallowing as a result of high sedimentation, and (iii) the increasingly dense fishing activities. Economic-politically, some reasons that justify the fishing port development idea are: firstly, the Aceh water territory is the gateway of international maritime trade route that links the Indonesian waters with the countries, such as, India, Thailand, Vietnam, Cambodia and the Middle East. Secondly, the Indonesian Ocean with its EEZ waters that is located within the Aceh territory has not experienced excessive exploitation, thus, if developed in the framework of area development in which Sabang is as its development center will be able to become a new economic power basis in the western region of Indonesia after Batam. Viewed from the international political stand point, development of Sabang will form a new economic buffer that is able to compete with Singapore and Malaysia so that implies to the enactment of AFTA and WTO. Thirdly, in national politic basis, development of this catch fishing is expected to be able to provide the political impact on the strengthening of national integrity. Backed on the aforesaid matters, essentially, the relocation and continuation of construction of a port that is designated to the catch fishing activities that becomes important to the development of socio-economic life of the coastal communities in that region. Therefore, the development and continuation of construction of the Lampulo International Fishing Port (PPB) that has been started by the Aceh-Nias Reconstruction and Rehabilitation Agency (BRR Aceh-Nias) is very important to spur the economic growth of the real sector in coastal areas of Aceh province.

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2. Policies, Tasks and Functions

2.1. Catch Fishing Development Policy In the efforts of utilizing the fishery and marine resources, the Aceh government made the following efforts: 1. Managing the fishery resources sustainably and responsibly 2. Increasing incomes of the fishers 3. Improving the fishing port facilities, both in its quantity and quality 4. Strengthening the fishing fleet 5. Developing efficient and competitive fisheries businesses. 2.2. Tasks and Functions of the Aceh Marine and Fisheries Agency Task

To implement a part of the operation technical activities and/or the supporting technical activities in the field of management, supervision, regulation and development as well as the technical services of fishing port. Functions 1. Preparation of the planning programs in the field of management, supervision, regulation and development of technical

services of fishing port 2. Implementation of the administrative and domestic affairs 3. Implementation of collection of the provincially generated revenue in the fishing port zone 4. Implementation of maintenance and utilization of fishing port facilities and infrastructures facilities 5. Implementation of supervision and control of post activities, vessels and fishing gears and harbor master affairs of the

fishing port

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6. Implementation of the technical services and overhaul of fishing vessels 7. Collection, processing, and presentation of data and statistics of catch fishing 8. Implementation of catch fishing community empowerment facilities 9. Implementation of monitoring, evaluation and reporting

2.4. Technical Criteria of Fishing Port

No

Criteria Class I Class II Class III Class IV

PPS PPN PPP PPI

1 Fishing vessel operating area served

Territorial Sea Area, Indonesian Exclusive

Economic Zone (IEEZ) and International Waters

Territorial Sea Area, and Indonesian

Exclusive Economic Zone (IEEZ)

Areas of the Indonesian Exclusive

Economic Zone (IEEZ), Inland

Waters, Islands, and Territorial

Sea

Areas of Inland Waters and

Islands

2 Land area (Ha) >=30 15 - 30 5 - 15 2 – 5

3 Capacity to accommodate vessels (units/day) >6000 GT(equivalent to

100 ships of 60 GT)

>2250 GT (equivalent to 75 ships of 30 GT)

>300 GT (equivalent to 30 ships of 10 GT)

>60 GT (equivalent to 20 ships of 3

GT)

4 Mooring / anchoring facility (GT) >60 30 -60 10 - 30 3 – 10

5 Wharf length (m) >300 150 - 300 100 - 150 50 - 100

6 Pond depth (m) >-3 >-3 >-2 >-2

7 Average fish landed (tons/day) 60 30 10 3

8 Fishery quality development facility Available Available/ Not

Available Available/ Not

Available No

9 Marketing means Available Available Available/ Not

Available No

10 Zoning of Fishery Industry processing/development Available Available Available/ Not

Available No

11 Fish export Yes Yes/No No No Source : Regulation of the Maritime & Fishery Minister Number: PER.16/MEN/2006

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2. 4. Minimum Facilities Facilities that are obliged to be available in the fishing port for the operation at least include:

a. basic facilities such as docks, waters pond and the waters passage; b. functional facilities, such as offices, clean water, electricity, and fish treatment facility; c. supporting facilities such as guardhouse and toilets.

3. Profile of Fishing Port Lampulo Banda Aceh 3.1. Map and Satelite Immage of Lampulo Fishing Port

Map of Banda Aceh City and Location of Lampulo Fishing Port

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3.2. General Information

a. Name : Fishing Port Lampulo Banda Aceh b. Classification : Coast Fishing Port (PPP) c. Address : Jl. Sisingamangaraja Ujung 16, PO Box 23 d. Desa Lampulo, Kuta Alam, Banda Aceh 23001

LOCATION AREA POPULATION PDRB/YR based on PDRB Percapita SOURCE (Km

2) (Persons) current price (Million) (Million)

Kuta Alam 10.05 43,792

Banda Aceh In Figure Year 2009 Banda Aceh 61.36 211,467 4,537,426.76 22,036.93

3.3. Environmental Condition

a. River/Gulf/Beach : Krueng Aceh b. Province : Aceh c. Regency/City : Banda Aceh d. Sub-District : Kuta Alam e. Village/Kelurahan : Lampulo f. Geographical Position : 50 34' 33.65” N

950 19' 23.20” E g. Distance To

- Capital City of Province : 1 Km

- Capital City of Regency : 1 Km

- Capital City of Sub-District : 0,5 Km

- Air Port : 15 Km (Sultan Iskandar Muda Air Port)

- Other Ports : 31 Km (Malahayati Seaport) : 18 Miles (Balohan Sabang Seaport)

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3.4 Operational Data Number of fishers the years 2006 to 2009 has steadily increased from, likewise the fishing gears they used also improved. While the fish production per day averagely reaches 15 tons. The highest price of fish occurred in 2008 that reached 23.000/kg, two times higher than other years. The prices, ship visits and total production are shown in the table below:

Table 2. Fishers, Fishing Gears and Distribution of Supplies, Years 2005-2009

YEAR FISHERS FISHING GEARS DISTRIBUTION (Tons)

(Persons) (Units) Fuel Ice Air

2005

2006 2,584 152 8,305.94 7,594.00 8,543.25

2007 3,093 179 13,141.39 12,014.99 13,516.86

2008 3,553 209 13,239.41 12,104.60 13,617.68

2009 3,917 231 13,562.50 12,400.00 13,950.00 Table 3. Fishing Activity, Fish Production, and Price, Years 2005-2009

YEAR SHIP VISIT FISH PRODUCTION

(Units) Production (Tons) Price (Rp.1000) PER DAY (Kgs)

2005 1,186 2,804 23,266,075 7,789

2006 2,288 5,480 48,531,445 15,222

2007 3,620 4,634 42,289,579 12,872

2008 3,647 2,928 68,366,867 8,133

2009 3,736 7,819 81,366,867 21,719

2010 997 2,087 19,497,928 17,392

Remarks; Year 2010, Data for 4 months (January through April)

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3.5. Dominant Production As shown in the table below, the catching outcomes are dominated by cakalang (Skipjack tuna).

Table 4.a. Dominant Fishes, Year 2009

NO TYPE OF FISH TYPE OF FISH TOTAL VOLUME TOTAL PRICE AVERAGE PRICE

(Indonesian) (English) (Kg) (Rp) (Rp/Kg)

1 Cakalang Skipjack tuna 3,101,805 37,384,504,762.50 12,052.50

2 Layang Roughear scad 1,662,965 19,436,365,372.22 11,687.78

3 Tuna Yellow fin 792,085 10,252,880,254.17 12,944.17

4 Lisong Bullet tuna 575,540 7,547,343,790.00 13,113.50

5 Tongkol Krai Frigate mackerel 339,215 4,257,713,608.33 12,551.67

6 Sunglir/Salam Rainbow ranner 311,125 3,636,359,861.11 11,687.78

7 Lemuru Northen pilchard 236,965 1,414,878,520.83 5,970.83

8 Kambing-Kambing Trigger fish 166,360 559,905,375.00 3,365.63

9 Tongkol Komo Eastern little tuna 137,285 1,480,275,512.50 10,782.50

10 Selar Oxeye scad 86,045 877,085,366.67 10,193.33

Table 4.b. Dominant Fishes, Year 2010 (Data 4 months, January through April)

NO TYPE OF FISH TYPE OF FISH TOTAL VOLUME TOTAL PRICE AVERAGE PRICE

(Indonesian) (English) (Kg) (Rp) (Rp/Kg)

1 Cakalang Skipjack tuna 696,825 8,521,298,718.75 12,228.75

2 Layang Roughear scad 360,200 3,264,762,750.00 9,063.75

3 Tongkol Krai Frigate mackerel 246,925 2,708,149,937.50 10,967.50

4 Lisong Bullet tuna 175,500 1,547,325,000.00 8,816.67

5 Tuna Yellow fin 155,710 1,436,814,025.00 9,227.50

6 Tongkol Komo Eastern little tuna 108,050 1,098,868,500.00 10,170.00

7 Selar Oxeye scad 59,125 644,314,687.50 10,897.50

8 Lemuru Northen pilchard 96,850 568,509,500.00 5,870.00

9 Sunglir/Salam Rainbow ranner 27,500 285,770,833.33 10,391.67

10 Kambing-Kambing Trigger fish 29,125 96,622,187.50 3,317.50

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Banana prawn is the most dominant type of shrimp with high price in the PPP Lampulo, as shown in the table below:

Table 4.c. Dominant Fishes, Year 2009

NO TYPE OF FISH TYPE OF FISH TOTAL VOLUME TOTAL PRICE AVERAGE PRICE

(Indonesian) (English) (Kg) (Rp) (Rp/Kg)

1 Udang Putih Banana prawn 29,115 887,134,050.00 30,470.00

3.6. Fishery Industry Some fishery companies in the PPP Lampulo are shown in the table below:

Table 5. Fishery Industry

NO COMPANY’S NAME LINE OF BUSINESS LAND AREA (m2)

1 CV. TRIARTIKA BY FAM Processing (Fish nuggets, fish ball meat) 1,421.00

2 CV. TUAH BAHARI Other Tunas and Fillets 675.00

3 UD. SOFYAN Fresh fish export 90.00

4 CV. CITRA IKAN NUSANTARA Sea product trading 45.00

5 UD. RAHMAT NELAYAN Sea product business 45.00

6 UD. DUA RAKAN Sea product trading 45.00

7 MAWARDI & SON Sea product trading 90.00

TOTAL 2,411.00

3.7. Fishing Vessels The dominant fishing vessels in the PPP Lampulo are those of capacity of 10-20 GT and 20-30 GT.

Table 6. Domiciled Vessel By Tonnage, Years 2005-2009

YEAR MOTOR VESSEL (Units) TOTAL

< 10 GT 10-20 GT 20-30 GT 30-50 GT 50-100 GT

2005 -

2006 20 52 70 10 152

2007 25 65 75 14 179

2008 35 79 85 20 219

2009 40 83 88 20 231

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3.8. Logistic

Distribution of logistic in the form of water and ice is still experiencing shortages, but, usually, the fishing vessels buy them from outside the harbor.

Table 7. Logistic Need and Fulfillment, Year 2009

SUPPLY NEED FULFILLED SHORTAGE

Tons/day Tons/day Tons/day

Fuel Oil / Diesel Oil 43.75 50.00

Kerosene 1.25 1.00 0.25

Water 45.00 30.00 15.00

Ice 40.00 20.00 20.00

3.9. Economic Turnover

Average number of workers and amount of money turnover in the PPP Lampulo is shown in the table below:

Table 8. Economic Turnover, Year 2009

YEAR AVERAGE NUMBER OF WORKERS AVERAGE MONEY TURNOVER

(Persons/Day) (Rp/Day)

2005 - 161,569,965

2006 3,876 337,023,922

2007 4,640 293,677,629

2008 5,330 474,769,910

2009 5,876 565,047,688

2010 - 135,402,277

Remarks; Year 2010, Data for 4 months (January through April)

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4. Development of Aceh International Fishing Port – Banda Aceh

4.1. Lampulo Port Development Phase

4.1.1. Short-Term Development (2008 - 2015) Short-term development was aimed to anticipate the urgent problem today namely the provision of adequate fishing port facilities and infrastructure in Banda Aceh in accordance with its service territory. While the activities to be performed are as follows: 1. To build a fishing port facilities that can be proceed in stages and sustainable as well as endeavor the utilization

appropriately. 2. To encourage private investment rate in the direction of industrialization with efforts to provide convenience to the employers. 3. To form a facility management system that has been built and seeking operational mechanisms and the development of

other fishing port facilities by conducting more intensive coordination with the relevant parties. 4. To make harmonious relationships with employers and related agencies in an effort to coordinate and synchronize the

implementation of port operations. Targets to be achieved from the short-term construction and development are: 1. To increase the income of fishers and their families through the provision and improvement of fishing ports services. 2. To improve domestic marketing and export of fishery commodities through the slogans right quantity, price, quality, time and

place. 3. To accommodate labor in particular family of fishers through the building and development of fisheries.

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4.1.2. Medium-Term Development (2015 - 2020) 1. To complement and improve the fishing port facilities that can be utilized effectively and efficiently in an optimum capacity, in

accordance with the development of the existing fisheries business activities. 2. To strengthen industrialization in the working region of fishing port by conducting an integrated business diversification with

agribusiness and agro-industry perspective. 3. To complete the set of operational systems and the development of fishing ports in accordance with the prevailing provisions

and regulations and can be implemented in the field. 4. To foster a harmonious relationship with employers and related agencies through the improved service to the fishery

business as well as the coordination and synchronization of the activities comprehensively and integrated. Targets to be achieved from the medium-term development are: 1. To improve the welfare of fishers and their families through the improved port services and improvement of fishery products

trade system. 2. To promote the export of fishery commodities without ignoring the potential domestic market through the improvement of

quality and efficiency of the marketing chain. 3. To absorb productive employment in the fisheries sector through the extensification and diversification of integrated

business. 4.1.3. Long-Term Development (2020 - 2030) 1. To complement and improve the port facilities that can support the operational activities of fishing ports. 2. To confirm the modern fishing industry based on the application of science and technology in the field of fisheries. 3. To strengthen the modern port operational system with supported science and technology professional management (MIS).

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Targets to be achieved from the long-term development are: 1. Lampulo Fishing port with a modern port operations systems and professional management. 2. Port services and the improvement of marketing system for fishery products. 3. Steady Modern fishing industry that could increase the export of fishery commodities. 4. Availability of vacancies/jobs that can absorb the productive labor/human resources in the field of fisheries. 5. Development of integrated fishing communities, with Lampulo Fishing Port as a center of development. 4.2. Realization of Development

During the period of 4 years (2007 to 2010), the budget that has been realized for the construction of Lampulo Fishing Port facilities ± Rp.195 billion, including costs for land acquisition. BRR NAD - Nias has financed the activities in the form of land acquisition (2006), making DED (in 2006), preparation of Environmental Impact Analysis (EIA) (2007), land filling of ± 1 ha (2007), periphery fencing (2007), construction of break water phase 1 (2007 ) and the construction of break water phase 2 (2008). BKRA through the Debt Swap of Italian Government has conducted break water construction phase 3, dredging harbor ponds, construction of TPI, construction of loading dock and climbing, generator set and water installations (2009). Aceh Regional Government through the DKP Aceh in 2010 has budgeted the funds of Rp.3M for the construction of access roads and fences around the TPI. In brief the facilities which have been constructed and the sources of funds are shown in the following table;

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Tabel. 9. Facilities at Lampulo Fishing Port, Year 2009 (New Location)

NO. FASILITIES VOLUME UNIT SOURCES OF FUNDS

A BASIC FASILITIES

1 Land 58 Ha BRR NAD-Nias

2 Periphery Fencing 1,000 m BRR NAD-Nias

3 Wharf 800 m2 BKRA

4 Plastering 200 m BRR NAD-Nias

5 Water Break 1,376 m BRR NAD-Nias/BKRA

6 Free Port /River Furrow 80 Ha BRR NAD-Nias/BKRA

7 Pond /Furrow Depth -4 m BKRA

B FUNCTIONAL FACILITIES

1 Fish Auction Place (TPI) 400 m2 BRR NAD-Nias

2 Water Tanks + Installation 150 KL BKRA

3 Genset + Installation 150 KVA BKRA

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Based on the needs of facilities in Table 9 above, then the budget that has been made by the planning consultant of PT Perentjana Djaja are around Rp 451 billion, with the details as seen in Table 10. The funding is for basic facilities, while for government business facilities just provide land to investors who will conduct business at Lampulo Fishing Port. Table 10. List of Costs Recapitulation of Lampulo PP Development (2007).

No Job Description Costs (Rp)

A CIVIL WORKS

1. Breakwater Phase I

Breakwater Phase II

Breakwater Phase III

2. Wharf

3. Dredging and Pilling

4. Road and Drainase

34,138,428,000

49,118,109,000

85,947,409,000

66,836,463,000

173,833,073,000

18,031,274,000

B Port Office 10,774,356,000

C Fish Auction Place 3,145,319,000

D Fisher Meeting Hall 1,638,364,000

E Net Service Center 1,786,376,000

F Cooperative Counter and Store 1,205,364,000

G Public Road Lighting 2,109,892,000

H Port Mosque 1,527,752,000

I Home Office Type 70 114,514,000

J Home Office Type 50 127,707,000

K Periphey Fencing 998,377,000

TOTAL 451,332,777,000

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4.3. Development Process Until Now

Lampulo Fishing Port is one of the largest fishing port in the province of Aceh, located in the city of Banda Aceh, where the port is the Regional Technical Implementation Unit (UPTD) of the Marine and Fisheries Agency of Aceh. In accordance with the policy of the Government of Aceh that has relocated the port to a more strategic place according to the Feasibility Study of Bogor Agricultural Institute in 2004, then the development of Lampulo Fishing Port is the right step, especially in improving the utilization of marine and fisheries resources to improve Aceh economy. The stages of its development up to now are:

1. Feasibility studies conducted by the Marine and Fisheries Agency of Aceh Province together with the Center for Coastal and Marine Resources Studies, Bogor Agricultural Institute in 2004, which states that Lampulo fishing Port of Banda Aceh is very feasible to be relocated to a more strategic and wider place which will be improved to be the Ocean Port.

2. Banda Aceh Mayor's Decision no. 593/174/2005 dated August 27, 2005, on the establishment/appointment of the land procurement committee for the implementation of the development for public interest in the region of Banda Aceh City.

3. Letter of the Governor of Aceh Province no. 523/4474 dated March 10, 2006., to the Minister of Maritime and Fishery Affairs, that Lampulo Fishery Port should be moved to a location that has been available on the area of 51 hectares with ocean fishing port status, constituting as an Outring of Western Indonesia.

4. Rehabilitation and Reconstruction Agency for Aceh-Nias (BRR) until the expiration together with the Government of Aceh has built Lampulo Ocean Fishery Port facilities, with the realization of the development reaching Rp 202,000,000,000 (two hundred and two billion rupiahs) or about 20% of the total required budget. The development was stopped due to the limited financial capacity of the region resulted non operation of Lampulo fishing ports.

5. Letter of the Governor of Aceh Province no. 523/43383 dated December 3, 2008, on the construction of Lampulo PPS phase III.

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6. Letter of Aceh Governor no. 590/3093 dated January 21, 2009, concerning the permit of land use for the area of 1,850 m2 for the access road.

7. Agreed Minutes of Third Meeting of Management Committee on Debt for Development Swap Program Between the Government of Republic of Indonesia and the Italian Republic January 9, 2009.

8. Letter of Aceh Governor no. 532.43/69545 dated December 9, 2010 on Lampulo Ocean Port Development of Banda Aceh to Dr. Alwi Shihab, the Special Envoy of the President of the Republic of Indonesia to the Middle East, in order to be willing to lobby the Islamic Development Bank in Jeddah to assist the continuation of Lampulo Fishing Port development.

9. Decision Letter of Aceh Governor no. 522.3/719/2010 dated December 17, 2010 Formation of the Task Force on Lampulo Fishing Port Development.

10. Letter of the President Special Envoy for Middle East No. 309/UK/XII/2010 dated December 29, 2010 to the Governor of Aceh on the support to facilitate fundraising for the development and continuation of Lampulo fishing port construction from the financial institutions in the Middle East.

11. Letter of the President of Islamic Development Bank (IDB) Jeddah no. 14/CTY/CDV-10/0957 dated 10 April 2011 to the Governor of Aceh, on a visit to Banda Aceh and a request that Aceh Government to prepare for submission of new projects to Islamic Development Bank Jeddah office.

12. Meeting between the President of IDB Jeddah and the Governor of Aceh, in Banda Aceh on May 11, 2011. At the meeting the Governor of Aceh formally applied for assistance for the continuation of Lampulo Fishing Port development. IDB President requested the Government of Aceh in order to immediately submit a proposal to BAPPENAS in Jakarta and IDB Jeddah will provide support in accordance with the commitment to alleviate the suffering of Aceh people due to tsunami and longer conflict.

13. Letter of Aceh Governor no. 523.43/355 dated January 10, 2011 to the State Minister of National Development Planning/Head of Bappenas, on Lampulo Ocean Fishing Port Development in Banda Aceh, the request for inclusion in to the blue book and recommend assistance from the Islamic Development Bank of Jeddah.

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14. Letters of Recommendation of Acting Governor of Aceh No. 552.3/BP2T/1726/2012 dated February 27, 2012 on the Development of Lampulo Fishery Port in Banda Aceh, which recommends ALHILAL GROUP (CRESCENT GROUP) as the Development Coordinator of Lampulo Fishery Port Banda Aceh.

15. Letters of Officer in Charge, Islamic Development Bank, Kuala Lumpur Regional Office no. 93/48/12 dated March 6, 2012, to Dr. Hilmy Bakar Almascaty, President of Al-Hilal Group, on has received a letter of recommendation from the Governor of Aceh, which has appointed Al-Hilal Group as the Development Coordinator for Lampulo Fishing Port, and to immediately submit a proposal to BAPPENAS in Jakarta.

16. The meeting between the President of Islamic Development Bank of Jeddah with Acting Governor of Aceh in Aceh Governor Hall on May 8, 2012, which discussed the continuation of the funding request for Lampulo port development. On such occasion, Acting Governor of Aceh expect help from IDB President to assist fund in the construction of Lampulo. On the same occasion, the Aceh government representatives are required to follow up the previous letter addressed to BAPPENAS.

17. The Official Governor of Aceh sent President of Al-Hilal Group, as Lampulo port development coordinator to follow up meetings with the President of IDB Jeddah, especially for a meeting with relevant agencies in Jakarta and agencies associated with the continued development of Lampulo Fishery Port. On May 11, 2012, Al-Hilal Team Group began meeting with the parties relating to the continuation of Lampulo fishing port development, including the National Development Planning Agency, NOA, IDB Jakarta and the others parties.

18. Feasibility Study starting on May 15, 2012 and completing on January 15, 2013.

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5. Needs of Facility and Cost of Second Step Development In accordance with Aceh Government planning program for further development of Aceh International Fishing Port, then it is planned for the facilities required among others:

Table 11. Facilities required for development of Lampulo Fishing Port

No Name/Type of Facility Need of Capacity

/dimension Cost

Realization Not yet Realized

Physical Finance Physical Finance

A MAIN FACILITY

1 Land 120 Ha

227.443.440.000 58 Ha

41.443.440.000 62 Ha

186.000.000.000

2 Breakwater 2.500 M 300.000.000.000 1.860 M 137.718.960.850 650 M 162.281.039.000

3 Wharf 8 x 2.000 M³ 160.000.000.000 8 x 100

M³ 3.038.021.000 8 x 1900 M³ 152.000.000.000

4 Pond dredging 1.200.000 M³ 37.200.000.000 54.570 M³ 1.691.653.650 1.145.430 M³ 35.508.346.000

5 Land Filling 120 Ha 140,000,000,000 2 Ha 4.827.586.207 118 Ha 135.172.413.793

6 Roads in area 96.000 M² 96.000.000.000 - M² - 96.000 M² 96.000.000.000

7 Periphery Fencing of area 3.400 M 6.800.000.000 M 3.400 M 6.800.000.000

8 Drainage Network 12.000 M 13.200.000.000 - M - 12.000 M 13.200.000.000

9 Navigation Facility 1 Unit 3.200.000.000 - Unit - 1 Unit 3.200.000.000

TOTAL 790.161.798.793

B.

FUNCTIONAL FACILITY

1 FISH AUCTION AREA

a. Building 865 M² 3.500.000.000 433 M² 1.572.659.500 432 M² 1.927.340.500

b. Yard 800 M² 800.000.000 M² - 800 M² 800.000.000

c. Periphery Fencing TPI 400 M 200.000.000 400 M 200.000.000 - M -

2 Fuel Tank 400 Ton 8.000.000.000 Ton - 400 Ton 8.000.000.000

3 Reservoir 300 M 2.000.000.000 150 M 1.000.000.000 - M 1.000.000.000

4 Net repair place 800 M³ 1.786.376.000 M³ - 800 M³ 1.786.376.000

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5

Shops 2.880 M³ 8.640.000.000 M³ - 2.880 M³ 8.640.000.000

6 Fishery Shopping Center 8.000 M³ 30.000.000.000 8.000 M³ 30.000.000.000

7

Packaging Warehouse 1.800 M³ 5.400.000.000 M³ - 1.800 M³ 5.400.000.000

8 Workshop 500 M³ 2.500.000.000 M³ - 500 M³ 2.500.000.000

9 Dock/slipway 1 Unit 10.000.000.000 Unit - 1 Unit 10.000.000.000

10 Genset House/ PLN Station 150 M³ 500.000.000 150 M³ 500.000.000 - M³ -

11 Administrator Office 1.100 M³ 4.950.000.000 M³ - 1.100 M³ 4.950.000.000

12 Ice Plant 300 Ton/d

ay 75.000.000.000 ton/day 300 ton/day 75.000.000.000

13 Cool Storage 300 Ton/d

ay 30.000.000.000 ton/day 30 ton/day 30.000.000.000

14 Waste Processing Unit 900 M³ 2.700.000.000 M³ - 900 M³ 2.700.000.000

15 Fish Market Center 4.500 M³M³m 20.250.000.000 - - 4.500 m 20.250.000.000

16 Road Lighting 158 unit 632.000.000 - - 158 unit 632.000.000

TOTAL 203.585.716.500

B.

SUPPORTING FACILITY

1. Fisher Meeting Hall 150 M² 1.638.364.000 150 M² 1.638.364.000

2. Policlinic 100 M² 300.000.000 100 M² 300.000.000

3. WorshipFacility/Mosque 400 M² 3.000.000.000 400 M² 3.000.000.000

4. Port House 1.000 M² 4.000.000.000 1.000 M² 4.000.000.000

5. Harbormaster House 1 Unit 210.000.000 1 Unit 210.000.000

6. Harbormaster House Type

70 1 Unit 180.000.000 1 Unit 180.000.000

7.

Staff House Type 50 5 Unit 750.000.000 5 Unit 750.000.000

8. Mess Operator Type 100 1 Unit 300.000.000 1 Unit 300.000.000

9.

Final Disposal Place 1 Unit 1.000.000.000 1 Unit 1.000.000.000

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10. Electric Power 10.000 Kva 13.000.000.000 10.000 Kva 13.000.000.000

11. Reforestation 1 Ls 1.000.000.000 1 Ls 1.000.000.000

12. Guardhouse 36 M² 150.000.000 36 M² 150.000.000

13. Periphery Fencing 2.700 M 998.377.000 2.700 M 998.377.000

14. Port Gate 1 Unit 1.500.000.000 1 Unit 1.500.000.000

15. Public Toilet 80 M² 240.000.000 80 M² 240.000.000

16. Security Post 500 M² 1.000.000.000 500 M² 1.000.000.000

TOTAL

29.266.741.000

GRAND TOTAL 1.023.014.256.293

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6. Conclusion

As of the expiry of Aceh-Nias Reconstruction and Rehabilitation Agency task period in Aceh province, and after the realization of development of Aceh International Fishing Port in about 20 % of the total funds, its development progress is running slowly due to lack of regional fund in Aceh province. Consequently, the port facility established at cost USD 40 Millions is becoming useless because it is unable to be used by fishers in surroundings Lampulo. In addition, the built facility starts getting damaged because there no activity and maintenance.

At present, the sources of financing for developing Lampulo fishing port is derived from the State Budget (APBN) through BRR NAD-Nias. Upon the expiry of task period of BRR NAD-Nias, it is hoped able to get fund from the State Budget through the special allocation fund (DAK) in the Aceh Province Government and Ministry of Maritime Affairs and Fisheries. The limited fund hampered the development progress, consequently the built facility at cost USD 40 Millions is useless.

Development project of Lampulo Fishing Port is a strategic project which is supported by large human resources. However, the effect of long enough conflict, there is no proper fishing port facility. It is time to develop Aceh in order to maximize utilization of the large human resources. Therefore, other than the government fund, it is hoped to obtain the fund from Multi Donor Fund (MDF) through the program of EDFF (Economic Development Financing Facility) and other financing funds.

The existence of Lampulo Fishing Port is significantly required by Aceh fisher communities who suffered as result of tsunami, especially to improve their income, which is far under standards. Moreover, the Aceh fisher communities is one of the lower income communities that is under poverty line. The development of Lampulo Fishing Port including its infrastructures will be very significant and having direct impact toward the elimination of high unemployment and poverty in Aceh province.

Upon the communication held by Aceh Government as well as Al-Hilal Group as the Coordinator of Development, it seems the Islamic Development Bank (IDB) Jeddah as the one of potential financing sources really desires to continue financing of the development of Lampulo Fishing Port, considering to big potency of fisheries in Aceh province, which is unmanaged yet maximally. But, the rules and regulations of central government oblige all assistance proposals via Bappenas in Jakarta.

Thus, this Brief Proposal for the Development of Lampulo Fishing Port is hoped to have attention from the central and regional governments, Islamic Development Bank (IDB), Multi Donor Fund (MDF), Economic Development Financing Facility Aceh and the investors, as a result the development of this fishing port can be gradually finished and to be a fishing business development center in Aceh.