Growing Opportunity for Cucumis (Musk Melon) and Big Hot Chili Bekasi Utara, Jawa Barat.

In cooperation with Investor

There is an amazing opportunity of available five hectares and even more of land in Bekasi Utara. Land rent price is very reasonable Rp 2,000,000 per hectare per cropping season. Soil type is sandy loam, is dark in color, and very fertile. The climate fits for many short season fruits and vegetables and horticultural products. This piece of land is used for one season rice cropping in a year and the rest of year can be immediately rented for horticultural production to begin in early September 2012. Water supply for irrigation

Although the soil looks dry in the surface area but the water table in this area is high. Farmers dig 1 meter they can easily get ground water enough to water their crops, please see the picture below of dug out well. We can supply our water needs as we plan to drill few wells and pump the water out for irrigation. This typical area will have enough water for irrigation all year around, which makes this land area cultivable for the crop we deem potential to have high productivity and high market value alike.

The shallow well, 1 meter deep dug-out well, great for irrigation source of water during the dry season.

Choices of Crops

With market value and agronomical considerations our choice of crops narrow down to 2 types of crop i.e. Blewah or Cucumis and Melon and Big Chili Agrita and Sukma, seeds produced by Tiga Daun seed company.

1. Cucumis/Blewah - Melon

Blewah and other types of Melon is best grown during the dry season of the year. Those planted during the dry season also have sweeter if compared to those planted during the wet season. Retail price of Blewah is between Rp 7,000 – Rp 8,000 per KG, I think it is fair to expect wholesale or farm gate price at Rp 3,000 to Rp 4,000 per KG. Average productivity mentioned by the seeds company is 35 Tons per hectare, when we checked with farmers who experienced the Blewah planting they said it is common to collect Blewah harvests between 30 Tons to 45 Tons per hectare, it seems we could always expect for the better.

Blewah and Melon are fruits rich in vitamin C, fiber and Kalium is very popular in Indonesia for ingredients to make Fruit soup, which is a ‘tuti fruti’ drink with syrup and sweetened condensed milk. In Jakarta area people can find thousands of these “Sop Buah” vendors all over the place. And our planting location is inside the Greater Jakarta area (Jabodetabek) home of 28 million people, as if we grow these commodities right on the market place. A true advantage we have from other producer from far away location.

We can combine Blewah with other type of Melon that has potentially higher market value like Rock Melon and Golden Melon.

Melon sells pretty well between Rp 15,000 to Rp 20,000 per KG retail. Their productivity level ranges from 35 Tons to 45 Tons per hectare. We could expect wholesale price at least Rp 6,000/KG, the higher the better.

Big Chilies

Big Chili especially varieties “Agrita” and “Sukma”; fits for low-land planting area to about 600 meter above sea level. Fruit are green when young and red when ripe; both fruits have good market values.

Big Chili productivity range is between 25 Tons to 35 Tons per hectare. Harvest time began 75 – 88 days after planting. If we begin day one of September, then by the end of October we could begin harvest the Big Chili

We specially chose varieties “Agrita” and “Sukma” for their high productivity and resistance to various pest and diseases that potentially reduces the production capacity.

In summary we plan to grow the following different types of horticultural commodities and financial calculation as described in the table below:

Commodity Land Area Production Price per KG Revenue Blewah/Cucumis 1 hectare 35,000 KG Rp 3,000 Rp 105,000,000Melon (Rock, Golden) 1 hectare 25,000 KG Rp 6,000 Rp 150,000,000“Agrita” Big Chili 1 hectare 25,000 KG Rp 10,000 Rp 250,000,000“Sukma” Big Chili 1 hectare 25,000 KG Rp 10,000 Rp 250,000,000Projected Potential Revenues Rp 755,000,000Working Capital investment needed Rp 113,800,000Average Capital investment per Hectare Rp 28,450,000Invested capital return to investor by December 2012 Rp 113,800,000Projected Profits Rp 641,200,000Split profits 50-50 investor – operator Rp 320,600,000Split profits 50-50 investor – operator per Hectare Rp 80,150,000

All the numbers above are derived from the attached Costs-benefits calculation spreadsheet. Please follow on the spreadsheet page below. We need working capital in the form of investment from investor an amount of 114 million Rupiah (US$ 12,000) for 4 hectares or 28.5 million Rupiah or equivalent to US4 3,000 for one hectare planting investment; in the end December 2012 we will return the invested money we used as working capital to the investor, plus Investors will also receive the split profits 50-50 (computed after capital return to investor); for big Chili will need one month longer.

This way Investors will make a risk-free investment with us. All we need from you is to act timely so we will catch up with the current climatic situation and able to respond to this great and timely opportunity.

Your immediate response on this Business plan proposal is highly appreciated so we could immediately begin and take the best advantage of this dry season and the available land for rent and roll into production process immediately.

We look forward to creating this great horticultural production opportunity and hope for the most profitable business cooperation with you.

Cikarang,September 10, 2012,

Elias Tana Moning CV Outreach International

Costs Benefits of Growing One Season Cucumis and Big Chili Agrita CV Outreach International - Location Cikarang Utara

September 2012 - December 2012

Growing Big Chili type Agrita and Sukma Rp US$Land rent for one cropping season 2,000,000 $216Land Preparation 2,000,000 $216Silver plastic mulch 1,000,000 $108Quality seeds 1,500,000 $162F tili d l t t ti 1 500 000 $162Fertilizer and plant protection 1,500,000 $162Labor for 2 persons Rp 60,000/Day for 3 months 2,400,000 /Month 14,400,000 $1,557Harvest costs and transport 3,000,000 $324Cost per HA Big Chili 1 HA 25,400,000 $2,746Cost for 2 HA 2 HA 50,800,000 $5,492Projected Selling Price of Big Chili 10,000IDR /KGProjected minimum production /HA 25 000 KGProjected minimum production /HA 25,000 KGRevenue Potentials Big Chili per HA 250,000,000 $27,027Revenues from 2 HA Big Chili 2 HA 500,000,000 $54,054Growing Blewah (Cucumis or Musk Melon)Land rent for one cropping season 2,000,000 $216Land Preparation 2,000,000 $216Quality seeds 1,000,000 $108yFertilizer and plant protection 1,500,000 $162Labor for 2 persons Rp 60,000/Day for 2.5 months 2,400,000 /Month 12,000,000 $1,297Harvest costs and transport 3,000,000 $324Cost per HA Blewah-Melon 1 HA 21,500,000 $2,324Cost for 2 HA 2 HA 43,000,000 $4,649Projected Selling Price of Blewah 3,000IDR /KGP j t d S lli P i f M l 6 000IDR /KGProjected Selling Price of Melon 6,000IDR /KGProjected minimum production /HA 35,000 KGProjected minimum production Melon /HA 25,000 KGRevenue Potentials from Blewah 105,000,000 $11,351Revenues Potentials from Melon 150,000,000 $16,216Management and other operational Costs 20,000,000 $2,162Total Growing Costs 113,800,000 $12,303Total Growing Costs 113,800,000 $12,303Average Investment Per Hectare 28,450,000 $3,076Working Capital needed from Investor by September 2012 113,800,000 $12,303Revenues from Sales 755,000,000 $81,622Capital to be returned to Investor in December 2012 113,800,000 $12,303Projected Net Revenues after Capital returned 641,200,000 $69,319Projected Split profits 50-50 investor – operator of 4 Hectare 320,600,000 $34,659jProjected Split profits 50-50 investor – operator per 1 Hectare 80,150,000 $8,665