Borobudur Paradise – Integrated Tourism Smart Economic Zone

Histories

  • 9th-century Mahayana monument, Candi Borobudur, Magelang Regency, Central Java
    • Nine stacked platforms (6 square + 3 circular) topped by a central dome.
    • Decoration: 2,672 relief panels, originally 504 Buddha statues; dome ringed by 72 stupas.
    • Architectural synthesis: ancestral Javanese worship + Buddhist nirvāṇa doctrine. Influenced by Gupta India yet uniquely Indonesian.
    • Pilgrimage path ascends through three cosmological levels:
    • Kāmadhātu (world of desire)
    • Rūpadhātu (world of forms)
    • Arūpadhātu (world of formlessness)
    • Narrative reliefs: 1,460 panels guide pilgrims—largest, most complete Buddhist relief ensemble worldwide.
  • Historical trajectory
    • Built in 9th century (Śailendra Dynasty)
    • Abandoned after 14th-century Islamic shift.
    • 1814 rediscovery by Sir Thomas Stamford Raffles.
    • Major restoration 1975–1982 (Govt + UNESCO).
    • UNESCO World Heritage Site; with Bagan (Myanmar) & Angkor Wat (Cambodia) forms S-E Asia’s archaeological triad.
    • Continues as Vesak pilgrimage hub & Indonesia’s most-visited tourist attraction.

Purpose & Introduction

  • National “Breakthrough for Progress” objectives
    • Attract investment via geo-economic & geostrategic advantages.
    • Optimize export–import & high-value economic activity.
    • Accelerate regional development; balance inter-regional equity.
    • Create a model integrating industry, tourism & trade for job creation.
  • “Build with Acceleration” philosophy
    • Smart Economic Zone (SEZ) as peripheral-to-core development driver.
    • Requires multistakeholder partnership, incl. local communities.
    • Borobudur’s global Buddhist magnetism leveraged to pull pilgrim & heritage tourism.
  • Targeted experience clusters (“Breakthrough for Goals”):
    • Culinary & Modern Market, River Tour, Adiluhung Cultural Tour, Nature Sport Tour, Pelestari Garden Bay, House of Inspiration, Renewable Energy, Universal Studio Borobudur, Nature-themed accommodation, Health facilities.

Smart Economic Zones in Indonesia

  • Indonesia operates 18 SEZs ("KEK").
    • Examples: KEK Arun Lhokseumawe (energy/petrochem), Sei Mangkei (palm oil/rubber), Batam Aero Technic (MRO), Nongsa (IT-digital), Mandalika (tourism), Likupang (tourism), etc.
  • Borobudur SEZ proposed as specialised Tourism-Smart zone; coverage planned 1,900 ha.

Project Overview

  • Initiator: PT Borobudur Bhumi Syailendra Internasional (BBSI).
    • Role: land provider + Authorized Zone Management Company.
    • Legal framework: Law 39/2009, PP 1/2020, PP 12/2020, PP 40/2021 on SEZ.
  • Stakeholder ecosystem
    • PT Ascort Finansial Indonesia (sister of Ascort International Pte Ltd) acts as Funding & Investment Advisor; holds 70\% of BBSI shares.
    • Emails & LOI channel: kek.borobudur@ascortasia.com.

Location & Masterplan

  • Geographic footprint
    • 1,900 ha across 3 sub-districts (Mertoyudan, Borobudur, Tempuran) & 11 villages (Deyangan, Wringinputih, Kalinegoro, Pasuruan, Banjarnegoro, Jogonegoro, Bumiharjo, Sumberharum, Tempurejo, +2 unnamed).
    • Land pooled from >12,000 landlords; families prioritised for employment—ethical inclusivity.
  • Core land-use zones (Masterplan visuals):
    • Golf Course
    • Villa & Premium Residential
    • Factory Outlet
    • City Hall & Convention Center
    • Theme Park
    • Integrated road access & HIA (Hub Infrastructure Area).

Borobudur Green Planet Concept

  • Eighteen smart-city pillars:
    1. Public services
    2. Bureaucracy efficiency
    3. Policy efficiency
    4. Tourism ecosystem
    5. SME & Creative Ind. competitiveness
    6. City appearance (green + modern)
    7. Integrated industry tiers
    8. Community welfare
    9. Financial ecosystem
    10. Environmental harmony
    11. Quality health
    12. Mobility/logistics integration
    13. Smart society
    14. Education system
    15. Security & safety
    16. Environmental protection
    17. Waste management (zero-waste)
    18. Sustainable energy.
  • Vision metaphor: “Green Planet” → city as living organism balancing heritage, ecology, tech, & human wellbeing.

Amenities & Attractions

  • Culinary & Modern Agro-Market
    • Hybrid traditional-modern market; connects Magelang’s agricultural yield to visitors; supports farmers via e-commerce apps.
  • Cultural “Adiluhung” Showcases
    • Routine arts & cultural events; artisan empowerment; gamification & craft workshops.
  • Natural Sport Tourism
    • Cycling, jogging, walking trails, golf; all embedded within green open spaces.
  • River Water Tourism
    • Progo River rafting (solo/group), riverside urban renewal; local community co-management.
  • Pelestari Garden Bay & Herbarium Center
    • Floral biodiversity park + entomological exhibits; environmental education.
  • House of Inspiration Borobudur
    • Interactive history, AR exhibits, handicraft retail; metaphorical “spark” for visitors.
  • Nature-themed Accommodation
    • Villas, bungalows, eco-lodges; night-time KEK lighting experience.
  • Renewable Energy & Zero-Waste Systems
    • On-site clean power backbone + internal waste processing; ambition: \text{Zero Waste} \approx 0\,\text{ton/yr to landfill}.
  • Health Support Facilities
    • International hospital (in-patient, polyclinic, preventive campaigns) serving tourists & locals.
  • Universal Studio Borobudur
    • Flagship world-class amusement park (e.g., Dinosaur rides) amplifying global draw.
  • Future tenant interest snapshot
    • Blue Mercury Theme Park, golf operators, housing/condotel/mall developers, international hospital groups, hotel-convention brands.

Investment Focus & Financials

  • Total project cost: USD\ 12{,}000{,}000{,}000.
  • Fund-raising stages (24 months Phase-1 focus)
    • Series-A 350\,\text{mio}
    • Series-B 1.65\,\text{bio}
    • Series-C 2\,\text{bio}
    • Series-D 4\,\text{bio}
    • Series-E 3\,\text{bio}
    • Series-F 1\,\text{bio}.
  • Investment instruments:
    1. Equity partnership
    2. Debt-loan financing
    3. Structured convertible loan.
  • Phase-1 five-year pro-forma
    • Initial seed funding (loan): 4{,}000{,}000{,}000.
    • Revenue projections:
    • Land & unit sales: 7{,}136{,}000{,}000
    • Leasing & management fees: 964{,}555{,}000
    • \text{Total}_{\text{income}} = 8{,}100{,}555{,}000.
    • Expense categories & samples:
    • Land acquisition 1.56\,\text{bio}, basic infrastructure 367.168\,\text{mio}, marketing 142.5\,\text{mio}, 5 % loan interest, etc.
    • \text{Total}_{\text{expense}} = 4{,}049{,}998{,}054.
    • \text{EBT} = 8{,}050{,}556{,}946 - 4{,}049{,}998{,}054 = 4{,}000{,}558{,}892\ (≈4.05\,\text{bio}).

Funding Structure

  • Dual-channel inflow diagram:
    • Offshore & local investors → Ascort Asia Group pool fund → Receiver bank accounts (PT BBSI at BPD Jateng & BUMN banks) → Project disbursement.
  • Average funding set-up fee: 3\%; ensures compliance, escrow security.

Expected Impact & Goals

  • Economic
    • Job creation for >12{,}000 local landlord families + wider SME network.
    • Export tourism receipts, creative-industry incubation, balanced Java regional growth.
  • Environmental
    • Commitment to green energy, zero waste, river conservation, biodiversity gardens.
    • Alignment with SDG 7 (Clean Energy), 11 (Sustainable Cities), 12 (Responsible Consumption), 15 (Life on Land).
  • Cultural/Philosophical
    • Preservation of Buddhist & Javanese heritage; fusion of past wisdom with modern tech—embodies “learning from history to build future” narrative.
  • Ethical
    • Inclusive hiring pledge; community co-ownership; potential model for respectful tourism vs. commodification debate.

About Ascort Asia Group & BBSI

  • Ascort Asia Group (est. 2016)
    • Services: banking/financial advisory, investment banking, PE, IPO, M&A.
    • Regional focus: Indonesia’s high-growth, green projects.
    • Subsidiaries: PT Ascort Finansial Indonesia (funding advisor), Ascort International Pte Ltd (Singapore).
  • BBSI corporate lattice
    • BBSI Holding → Realty, Commercial, Zone Authority, Land & Developer, Retailer, Construction, Alliances, Utilities Mgmt, Enterprise arms.
    • Allows vertical integration from land banking to utilities, ensuring cohesive SEZ governance.

Numerical & Statistical Highlights

  • Temple: 9 terraces; 72 stupas; 2,672 reliefs; 504 original statues.
  • Land bank: 1,900\,ha\;(\approx 4,695\,acres).
  • Landlords: >12{,}000.
  • Project cost: USD\ 12\,\text{bn} across 6 funding series.
  • Phase-1 seed loan: USD\ 4\,\text{bn}; projected EBT \approx USD\ 4.05\,\text{bn} (5 years).
  • Smart-city pillars: 18.

Connections & Real-World Relevance

  • Mirrors other global heritage-centric smart-city developments (e.g., Lumbini SEZ, Sri Lanka’s Hambantota Port-City) showing synergy between culture & commerce.
  • Could serve as living lab for circular economy, renewable micro-grids, and digitalized cultural preservation (AR/VR).
  • Potential academic partnerships for Buddhist studies, sustainable urbanism, and agritech.

Potential Exam Talking Points (integrative)

  • Analyze how Borobudur SEZ aligns with Porter’s Cluster Theory—heritage tourism as core competency.
  • Debate ethical trade-off between commercialization & sacredness of religious sites.
  • Apply Triple Bottom Line \bigl(\text{People}, \text{Planet}, \text{Profit}\bigr) to Phase-1 financials.
  • Compute ROI using given revenue/expense data; discuss risk of currency fluctuation on USD-denominated loans.