Investment Opportunities Study for Bali · PDF fileInvestment Opportunities Study for Bali...

Investment Coordinating Board (BKPM) Japan International Cooperation Agency

Investment Opportunities Study for Bali Province

Executive Summary March 2006

PT. Mitrapacific Consulindo International

BKPM

EXECUTIVE SUMMARY Investment Opportunities Study for Bali Province

BKPM – JICA

PT. MITRAPACIFIC CONSULINDO INTERNATIONAL i

INVESTMENT OPPORTUNITIES STUDY FOR

BALI PROVINCE

TABLE OF CONTENTS

Pages Map of Bali Province 1. OVERVIEW OF PROVINCIAL ECONOMY ...................................... 1-1

• Geographical Condition and Administration Area ............................. 1-1 • Gross Regional Domestic Product .................................................... 1-3 • Current Trade Situation..................................................................... 1-4 • Banking ............................................................................................. 1-5 • Current Investment Realization......................................................... 1-6 • Labor Force Situation ....................................................................... 1-7 • Land Prices in Major District (Kabupaten/Kota) ................................ 1-8

2. CURRENT SITUATION AND FUTURE INFRASTRUCTURE

DEVELOPMENT ..................................................................................... 2-1 • Land Transportation ..................................................................... 2-1 • Sea Transportation ......................................................................... 2-1 • Air Transportation ........................................................................... 2-3 • Electricity and Water Supply ........................................................... 2-7 • Telecommunication ........................................................................ 2-7 • Industrial Estate and Tourism Zone ................................................ 2-7

3. CURRENT SITUATION AND PROSPECT OF MAJOR SECTORS 3-1

Agriculture Sectors ................................................................................... 3-1 • Product Competitiveness ................................................................ 3-1

- Food Crops ................................................................................. 3-1 - Horticulture.................................................................................. 3-1 - Plantation .................................................................................... 3-3 - Livestock ..................................................................................... 3-4

• Limitation and Opportunities in Agriculture Sector .......................... 3-4 • Government Policy in Agriculture Sector ........................................ 3-5

Fisheries Sector ........................................................................................ 3-7 • Product Competitiveness ................................................................ 3-8 • Limitation and Opportunities in Fisheries Sector ............................ 3-9


BKPM – JICA

PT. MITRAPACIFIC CONSULINDO INTERNATIONAL ii

Manufacture/Handicraft Sector ............................................................... 3-11 • Product Competitiveness ................................................................ 3-12

- Wooden Handicraft .................................................................... 3-12 - Metal and Mixed Material Handicraft........................................... 3-12 - Jewelry ....................................................................................... 3-13 - Textile Handicraft ....................................................................... 3-13 - Ceramic ...................................................................................... 3-14 - Natural Fiber Weaving Handicraft .............................................. 3-14

• Limitation and Opportunity .............................................................. 3-15 Tourism Sector ........................................................................................ 3-17

• Product Competitiveness ................................................................ 3-19 • Limitation and Opportunity .............................................................. 3-20 • Government Policy to Support Tourism .......................................... 3-21

4. CURRENT SITUATION AND FUTURE PROSPECT OF MAJOR

STRATEGIC AREA ............................................................................. 4-1 Strategic Areas in Agriculture and Fisheries Sectors ................................. 4-1

• Supporting Factor for Agriculture Business ..................................... 4-1 - Soil and Climate .......................................................................... 4-1 - Marine and Coastal Area ............................................................ 4-1 - Manpower and Land Availability ................................................. 4-1 - Infrastructure .............................................................................. 4-2

Strategic Area and Its Future Prospective................................................... 4-2 • Prospective Commodity in Related Strategic Area.......................... 4-2

- Tabanan ...................................................................................... 4-2 - Bangli .......................................................................................... 4-2 - Buleleng ...................................................................................... 4-2 - Klungkung and Karangasem....................................................... 4-3 - Badung........................................................................................ 4-3 - Jembrana ................................................................................... 4-3

Strategic Area in Handicraft Product ......................................................... 4-3 • Supporting Factor for Handicraft Business...................................... 4-3

- Raw Materials ............................................................................. 4-3 - Manpower and Land Availability ................................................. 4-3 - Infrastructure .............................................................................. 4-4

Strategic Area and Its Future Prospective................................................... 4-4 - Badung........................................................................................ 4-4 - Gianyar........................................................................................ 4-4 - Karangasem................................................................................ 4-4


BKPM – JICA

PT. MITRAPACIFIC CONSULINDO INTERNATIONAL iii

Strategic Area in Tourism Sector ................................................................ 4-5 • Supporting Factor for Tourism Business ......................................... 4-5

- Land Availability .......................................................................... 4-5 - Security and Immigration ............................................................ 4-5

Strategic Area and Its Future Prospective................................................... 4-5 - Bangli .......................................................................................... 4-5 - Tabanan ...................................................................................... 4-6 - Nusa Penida (Klungkung) ........................................................... 4-6 - Jembrana ................................................................................... 4-6

5. CONSTRAINTS IN INVESTMENT CLIMATE ............................. 5-1

• Limitation in Infrastructure ............................................................. 5-1 • Limitation in Industrial Development ............................................. 5-2 • Limitation in Legal Aspect................................................................ 5-2 • Limitation in Immigration Services................................................... 5-3 • Limitation in Banking and Data base / Information Services ........... 5-3 • Incentive for Investment .................................................................. 5-3 • Local Retribution.............................................................................. 5-3 • Coordination and Bureaucracy System ........................................... 5-3 • Notes and Recommendation ........................................................... 5-3

6. PROJECT PROFILE ............................................................................... 6-1

6.1. Prospective Commodities Analysis................................................... 6-1 6.2. Highlighted Project Profiles............................................................... 6-5

6.2.1. Organic Arabica Coffee, Bali Coffee .................................... 6-5 6.2.2. Organic Vegetables ............................................................... 6-9 6.2.3. Village for Facilitated Retirement Tourist ............................... 6-12 6.2.4. Agro Tourism in Organic Coffee Plantation............................. 6-15 6.2.5. Garment Handicraft Industry .................................................. 6-17 6.2.6. Silver Ornament and Jewelry Handicraft ................................ 6-22 6.2.7. Integrated Marina Resort ....................................................... 6-25


BKPM – JICA

PT. MITRAPACIFIC CONSULINDO INTERNATIONAL iv

LIST OF TABLES Page Table 1-1. Total and Average Growth Population in Bali ................................. 1-3

Table 1-2. GRDP per Sector ............................................................................. 1-3

Table 1-3. GRDP per Capita.............................................................................. 1-4

Table 1-4. Export value Ratio of Main Commodities to Total Export,

2000-2004 (%).................................................................................. 1-5

Table 1-5. Bank Credit Development by Economic sector in Bali,

2000-June 2005 (Million Rp) ............................................................ 1-5

Table 2-1. Road Length and Pavement Type by Road Status, 2004 .............. 2-1

Table 2-2. Total Passengers in Ferry Harbors (2000-2004) ............................. 2-3

Table 2-3. Number of Vehicles (4 wheels) in Ferry Harbors (2000-2004) ......... 2-3

Table 2-4. Volume of Unloaded and Loaded Goods (Domestic & International)

in Benoa & Celukan Bawang Harbors, 2004 ................................... 2-3

Table 2-5. Domestic Flight Route from Ngurah Rai Airport - Bali, 2005 .......... 2-4

Table 2-6. International Major Flight Route from Ngurah Rai Airport, 2005 ..... 2-4

Table 2-7. Number of Arriving Passenger (Domestic & International) in

Ngurah Rai International Airport, 2000-2004.................................... 2-5

Table 2-8. Volume of Unloaded Goods (Domestic & International)

In Ngurah Rai International Airport, Bali 2000-2004 ........................ 2-5

Table 3-1. Dominant Horticulture Products in Bali Province,

2000 – 2004 (Tons) .......................................................................... 3-2

Table 3-2. Export of Edible Vegetables and Fruits in Bali Provinces (US$) ...... 3-2

Table 3-3. Dominant Plantation Products in Bali, 2000-2004 (Tons) ................ 3-3

Table 3-4. Area and Production of Main Plantation Commodities, 2004 ......... 3-3

Table 3-5. Indonesia vs Vietnam Exported Coffee, 1995-2004

(in 60 kilo bags) ............................................................................... 3-4

Table 3-6. Marine Catcher Indicators in Bali Province....................................... 3-7

Table 3-7. The Growth of Main marine Capture Production in Bali Province ... 3-8

Table 3-8. The Growth of Main Marine/Fresh Water Cultivate Production in

Bali Province ................................................................................... 3-8

Table 3-9. Production and Export of Handicraft in Bali Province, 2004 ............ 3-11

Table 3-10. Number of Foreign Tourist Visit in Bali ............................................ 3-17

Table 3-11. Segment of Tourism in Bali ........................................................... 3-17


BKPM – JICA

PT. MITRAPACIFIC CONSULINDO INTERNATIONAL v

Table 3-12. Average of Length of Stay of Tourist in Bali (Days) ........................ 3-18

Table 3-13. Average of Tourist Expenditure in Bali Year 2004 ........................... 3-19

Table 3-14. Number of Tourist in Bali Based on Country Origin (2001-2004) .... 3-19

Table 3-15. Number of Hotel Accommodation in Bali ......................................... 3-20

Table 4-1. Share of District to the Provincial GRDP in Agriculture Sector ....... 4-2

Table 4-2. Share of District to the Provincial GRDP in Industrial Sector ......... 4-4

Table 4-3. Share of District to the Provincial GRDP in Trade,

Hotel and Restaurant ...................................................................... 4-5

Table 6-1. Prospective Analysis of Industrial Product/Commodities

for Investment in Bali ....................................................................... 6-2

Table 6-2. Coffee Plantation Area in Indonesia and Bali, 2001-2004 ............... 6-7

Table 6-3. Coffee Production in Indonesia and Bali ......................................... 6-8

Table 6.4: Production, Export, Consumption of Coffee in Indonesia (2000 – 2004)................................................................... 6-8

Table 6-5. Per Capita Consumption Per Year in Europe, USA, Japan

And Indonesia, (Kg/ capita/ Year) .................................................... 6-8

Table 6-6. Land Under Organic Management and Its Farmers in Asia 2004 .... 6-11

Table 6-7. Number of Tourist Arrival from Major Country (2001-2004) ............ 6-14

Table 6-8. Average Age Composition and Origin Country of Tourism Visit

To Bali (2004) ................................................................................. 6-14

Table 6.9. Number of Foreign Tourism to Bali (2001-2004) ............................. 6-17

Table 6.10 Length of Stay of Tourist from Related Country Origin (2005) ......... 6-17

Table 6.11. Indonesia Garment Industries its Production Capacity in Prominent Provinces..................................................................... 6-19

Table 6.12. Indonesia Garment Production (1996 – 2004) ................................. 6-20 Table 6.13. Garment Export Condition to Quota and

Non Quota Countries 1997 – 2004................................................... 6-20

Table 6.14. Indonesian Garment Consumption 1996 – 2004.............................. 6-21

Table 6.15. Indonesia Garment Production, Import, Export and Supply (1996 - 2004) .................................................................................... 6-21

Table 6.16. Bali Garment Industries (2003)......................................................... 6-21

Table 6-17. Number of Ornament Makers (gold and Silver) by Provinces ....... 6-24

Table 6.18. Marina in South East Asia and Australia ......................................... 6-26


BKPM – JICA

PT. MITRAPACIFIC CONSULINDO INTERNATIONAL vi

LIST OF FIGURES

Page Figure 1.1. Bali Geomorphology ......................................................................... 1-2

Figure 1.2. Export Value Ratio of Main Commodities Group Total Export, 2004 1-6

Figure 1.3. The Growth of Domestic Investment (PMDN) in Bali Province,

1998-2005 ....................................................................................... 1-6

Figure 1.4. The Growth of Foreign Direct Investment (PMA) in Bali,

1998-June 2005................................................................................ 1-6

Figure 1.5. The Foreign Direct Investment (PMA) Value Approved by

BKPM/ BKPMD, 2001-2004 ............................................................. 1-7

Figure 1.6. The Composition of Employment Based on Education, 2004 .......... 1-7

Figure 1.7. Employment of More Than 10 Years Old by Main Sectors

in Bali Province, 2004....................................................................... 1-7

Figure 2.1. Map of Land Transportation ........................................................... 2-2

Figure 2.2. Map of Coastal Harbors and Airport ............................................... 2-6

Figure 3.1. Map of Agriculture ........................................................................... 3-6

Figure 3.2. Map of Fishery.................................................................................. 3-10

Figure 3.3. Bali Handicraft Export Compare to Indonesia Handicraft Export...... 3-11

Figure 3.4. Export Value of Wooden Handicraft ................................................ 3-12

Figure 3.5. Export Value of Metal & Mixed Material Handicraft

(Home Accessories and Decorative) ............................................... 3-12

Figure 3.6. Export Value of Silver Jewelry Handicraft Product ........................... 3-13

Figure 3.7. Export Value of Textile Handicraft (Women Fabric, Embroidery

Lace) ............................................................................................... 3-14

Figure 3.8. Export Value of Weaving Handicraft (Home Accessories &

Decorative Woven Handicraft) ........................................................ 3-14

Figure 3.9. Map of Handicraft Industries ............................................................ 3-16

Figure 3.10. Number of Tourist in Bali ................................................................. 3-20

Figure 3.11. Map of Tourism Zone ...................................................................... 3-22

Figure 6.1. World Price of Robusta and Arabica ............................................... 6-9


BKPM - JICA

PT. Mitrapacific Consulindo International 1-1

I. OVERVIEW OF

PROVINCIAL ECONOMY

Geographical Condition and Administration Area

The island of Bali extend from 80 03’ 140” to 80 50’ 48” South latitude and 1140 25’ 53” to 1150 20’ 2” East longitude. Include within Bali Province are several smaller islands which are Nusa Penida, Nusa Lembongan, Nusa Ceningan, Sarangan and Menjangan. The total Bali Province covers an area of 5,632 km2 equal to 0.29 % of total Indonesian archipelago. The central part of Bali island composed by mountainous system with 2 volcanic mountain, Batur Mt and Agung Mt at elevation above sea level 1,717 m and 3,140 m respectively. This high elevation range divides Bali to Southern and Northern development area.

As the mountains system is closer to the North, the northern coastal area is narrower and has a steeper slope compare to the southern coastal area. The monsoon influence to Bali tropical climate, makes an average rainfall over the latest 5 years around 2,082 mm with a lower rainfall occurred in the northern area at 1,455 mm. This condition forms a more perennial river flows to the south than to the northern coast.

Various type of soil of Bali constitutes from :

- Latosol, a low solums soils and unsuitable for major crops originated from rock parent material and has risk of erosion occupies most of dry areas in the north, in northern ridges of Buleleng including some of Karangasem areas

- A more sandy of Regosol, a less fertile soils locates in Karangasem, Buleleng and south coastal area of Badung.

- A volcanic formation of fertile Andosol soils, occupies most of highland area in Tabanan and Bangli which suitable for horticultures and major crops.

- Alluvial soils which are largely suitable for food crops or annual crops distributes in the lower land of Tabanan, Gianyar.

- Some mediteran soil, a karstic influenced soil, which is unsuitable for food crops is a dominant soil in Nusa Penida and Nusa Dua peninsula.

Larger part of Bali land use is absorb by dry land agriculture including settlement, approximately cover 61.3 % of total area. Other 23.4 % is Forest land-use with more than half use as Forest reserves, which are protected as natural water sources. The reserves including coastal forest to sustain the valuable mangrove habitat. Wetland rice (14.3 % of total area) are playing important role in Agriculture production areas. Raw water use for irrigation is collected from perennial rivers or springs in most of the south and central area; Tabanan, Gianyar, Badung and Buleleng.

Mount Agung (3142 m), Bali’s most sacred mountain. The eruption of Gunung Agung caused a great deal of hardship and suffering on Bali during and after 1963. The eruption occured during the performance of the once-a-century Eka Dasa Rudra religious ceremonies, which President Sukarno had ordered to be held earlier than normal to fit his calendar.


BKPM - JICA



BKPM - JICA


Bali populations reach 3,385,750 people in year 2004, with 1.85 % annual growth since year 2000. From average Bali density of 600 population/sqkm, Denpasar city is the highest at 4,014 population/sqkm with Jembrana district as the lowest (300 population/sqkm) since part of the district belong to West Bali National Park. As more water are available and better soils are suitable, large population are concentrated in southern areas with its economic activities are drive by agriculture, industries and services (includes tourism).

Table 1.1 Total and Average Growth Population in Bali

Kabupaten Area Population Average Density / Kota (Sq Km) 2000 2004 Growth Ratio (%) People/sqkm) Jembrana 841.80 233,570 252,065 1.92 299.44 Tabanan 839.33 371,010 405,022 2.22 482.55 Badung 418.52 387,868 410,999 1.46 982.03 Gianyar 368.00 387,804 422,186 2.14 1,147.24 Klungkung 315.00 154,644 164,715 1.59 522.90 Bangli 520.81 198,607 210,180 1.43 403.56 Karangasem 839.54 380,818 397,334 1.07 473.28 Buleleng 1,365.88 575,806 810,337 1.47 446.85 Kota Denpasar 127.78 456,832 512,912 2.94 4,014.02 Propinsi Bali 5,836.86 3,146,999 3,385,750 1.86 600.67

Source: Data Bali Membangun, 2004. BAPPEDA - Bali Province. 2005

Gross Regional Domestic Products

Bali economic activities is mostly overseen by Tourism, however GRDP 2004 still indicate Agriculture as the second dominant sector, followed by Transportation and Industrial sector. The average growth of GRDP in the last 4 years achieved 3.69 %, which is slightly lower than average National economic growth of 58%. These are may caused by impact from Tourism decline.

Table 1.2 GRDP per sector

Sector 2000 (Mill.Rp)

2001 (Mill.Rp)

2002 (Mill. Rp)

2003 (Mill.Rp)

2004 (Mill.Rp)

Avg. Annual Growth 99-04

Share 2004 (%)

Agriculture 3,744,330 3,956,779 4,101,821 4,250,688 4,406,176 4.15% 19.28 Mining 114,892 116,340 118,667 123,627 129,042 2.97% 0.72 Manufacture 1,593,639 1,676,295 1,760,130 1,844,092 1,912,456 4.66% 8.77 Electricity 206,380 246,161 277,748 281,078 293,696 9.22% 1.75 Construction 687,510 703,040 732,155 740,076 777,746 3.13% 4.64 Trade, Hotel & Rest’rant 5,479,792 5,563,840 5,559,478 5,843,224 6,114,703 2.78% 29.70

Transport & Comm’cation 1,867,935 1,913,327 1,989,714 1,950,763 2,051,579 2.37% 12.70

Finance 1,251,452 1,287,422 1,333,801 1,354,382 1,462,273 3.97% 7.17 Services 2,322297 2,246,671 2,550,346 2,692,966 2,815,563 4.93% 15.01

GRDP 17,268,228 17,879,875 18,423,861 19,080,896 19,963,244 3.96% 100.00 Source: Central Bureau of Statistic, Bali Province, 2005

Anyway GRDP income per capita of Bali is relatively higher than average National, indicated that Bali still gained a dynamic economic activities from other sector (Agriculture and industries).


BKPM - JICA


Table 1.3: GRDP per Capita

Year Bali Province (Rp.) 1999 5.487.204 2000 5.664.656 2001 5.727.243 2002 5.693.490 2003 5.896.254 2004 0.90%

Av. Annual Growth (1999-2004) 0.90% Source: GRDP of Province Bali, 1999 – 2004, CBS, 2005, *MCI Estimated.

• Tourism:

Tourism sector contribution to the GRDP (2004) is estimated 27.57 % compare to the portion of Trade, Hotel and Restaurant at 29.16 % (BPS). Tourism-based industries cover various other sectors portion like Trade, 40 % of activities belong to Tourism, including30 % from Transportation and 20 % from service sector. This Tourism sector contribution is dropped in 2004 from 29.83 % in year 2000, related to travel ban as an effect of Bali blast terror 2002. The Local revenue has consequently dropped by less number of foreign tourism arrivals.

• Agriculture The growth of agriculture sector to the GRSP is measured as 4.15 % per annum, since year 2000, with portion around 20.74 %. Plantation and fishery are major contributors to the GRDP by sector. Plantation sub sector produces vanilla, coffee, cacao and cashew nuts, while fisheries dominated by the leading marine product of tuna in fresh or frozen container. This annual growth shows that Agriculture able to substitute economic depression from Tourism shortfall.

• Manufacturing industries The sector contribution reaches 9 % to the 2004 GRDP with a 4.6 % growth per annum over the latest 4 years. Dominated by handicraft industries of small to medium scale, its export products is continuously growing without severe security impact like Tourism. This manufacturing (handicraft) sector has absorbing large amount of local employment, which were frozen by the drop of Tourism.

Current Trade Situation

Since 1997 Bali always gain a surplus in its international trade balance although in average 3.22 % annual decrease were occurred. Handicraft industries is the largest contribution to total export value, followed by Fisheries which suffered significant decline over the latest 4 years came from shortening its resources sustainability. Agriculture export is tremendously increased by 46.16 % since year 2000, as natural reaction of Bali to compensate the shrink in Tourism activities.

Handicraft industries in general also slightly decrease since year 2000, mostly influenced by global product competition, mainly on textile products.


BKPM - JICA


Table 1.4: Export Value Ratio of Main Commodities to Total Export, 2000-2004 (%)

Main Commodities Group 2000 2001 2002 2003 2004

Ave. Annual Growth

Agriculture Product (Non Fishery) 0.76% 3.13% 11.83% 10.41% 4.10% 46.16%Fisheries Product 30.43% 34.70% 32.05% 26.79% 24.45% -9.05%Handicraft Product 63.73% 56.16% 49.18% 55.39% 58.06% -6.15%Others 5.07% 6.02% 6.95% 7.40% 13.40% 22.48%

Total Export 100.00% 100.00% 100.00% 100.00% 100.00% -3.93%Source: MCI Calculation based on CBS Data, 2005

Banking

Banking play important role in supporting Bali economy, although hindered by high interest rates, annual credit value issued by Banks since 2000 is increasing. In average, major of credit is use for working capital (42 %), and consumption (35 %) with only small remaining (23 %) goes for investment (Table 1.9 – page 1.11).

There are around 108-bank institution composed of 38 general banks and 142 BPR (community credit banks). Out of 38 banks, 5 are state or government own, 28-provate company and 5 are foreign or joint venture banks.

Table 1.5. Bank Credit Development by Economic Sector in Bali 2000 – June 2005 (Million Rp)

2000 2001 2002 Sector Total %Share Total %Share Total %Share

Agriculture 150,143 3.27% 181,462 2.99% 223,075 3.15% Mining & Quarry 2,515 0.05% 2,593 0.04% 2,832 0.04% Manufacture 235,767 5.13% 265,553 4.37% 231,649 3.27% Electricity, water, 29,488 0.64% 29,630 0.49% 31,179 0.44% Construction 57,631 1.25% 183,829 3.03% 203,540 2.87% Trading, Hotel & Rest 2,443,942 53.18% 2,682,787 44.18% 3,043,290 42.96% Transportation 111,893 2.43% 55,604 0.92% 70,135 0.99% Services 308,268 6.71% 738,238 12.16% 793,695 11.20% Others 1,256,318 27.34% 1,932,033 31.82% 2,484,519 35.07% Total 4,595,965 6,071,729 7,083,914

2003 2004 2005* Sector

Total %Share Total %Share Total %Share Agriculture 269,512 3.31% 297,571 3.15% 344,984 3.23% Mining & Quarry 3,447 0.04% 6,565 0.07% 12,557 0.12% Manufacture 290,736 3.57% 294,797 3.12% 301,531 2.82% Electricity, water, 30,932 0.38% 30,446 0.32% 30,572 0.29% Construction 210,004 2.58% 183,561 1.94% 189,553 1.78% Trading, Hotel & Rest 3,447,666 42.37% 3,787,514 40.07% 4,237,924 39.69% Transportation 123,299 1.52% 113,626 1.20% 110,006 1.03% Services 813,144 9.99% 898,661 9.51% 1,004,072 9.40% Others 2,947,538 36.23% 3,839,926 40.62% 4,445,110 41.64% Total 8,136,278 6,071,729 7,083,914

*Source: Bank Indonesia Denpasar, 2005 = June 2005

The current credit port folio in quarter II - 2005 (Rp. 10,676 trillion) is an increase compare to value in quarter I - 2005 by 7.64 % or to quarter IV – 2004 by 11.91 %.

Bank credit scheme is mainly absorbed by Trade, Hotel and Restaurant, with rather small amount passed to service sector, agriculture and industry (handicraft).


BKPM - JICA


Current Investment Realization

During period 1998 to June 2005, total value of foreign direct investment approval reached US$ 1,252.6 in 810 project, and Rp. 3,943.7 billion of Domestic investment approval from 99 projects. The realization of PMA (Foreign Direct Investment) in this period was 4.59 % from proposed investment value while only 9.48 % of PMDN (Domestic Investment). This low realization performance is may assumed that uncertain investment climate remains affecting the investment willingness.

Figure 1.2 Export Value Ratio of Main Commodities Group Total Export, 2004

H and ic rfa t P roduc t, 58 .06%

F ishe ries P roduc t, 24 .45%

A gricu ltu re P roduc t (N on F ishe ry),

4 .10%O the rs , 13 .40%

Figure 1.3. The Growth of Domestic Investment (PMDN) in Bali Province, 1998 - 2005

The prominent sector of PMA from its proportional investment value is transportation and Tourism and Trade, While a larger portion of Transportation and Tourism and other services were dominated the Domestic investment (PMDN).

Figure 1.4: The Growth of Foreign Direct Investment (PMA) in Bali, 1998 – June 2005

Realization

0 20 40 60 80 100 120

2000

2001

2002

2003

2004

2005

Tahu

n

Value (million US$)

Realization

Realization

0 50 100 150 200 250 300 350

2000

2001

2002

2003

2004

2005

Tahu

n

Value (Buillion rupiah)

Realization


BKPM - JICA


Figure 1.5: The Foreign Direct Investment (PMA) Value Approved by BKPM/BKPMD,

2001-2004.

Industry1.35%

Agriculture0.99%

Other Services 13.64%

Trade 29.33%

Mining & Construction

0.49%

Transportation & Tourism 54.20%

Non-facility investment (outside of BKPM services) are spread in more smaller projects which mostly oriented to handicraft industries and Tourism activities.

Labor Force Situation

Agriculture is the biggest sector to provide employment opportunity as there are many job types available for number of worker which not required qualified skills. The second largest is Tourism (includes services, hotel and restaurant), this sector accommodate various job for urban and more educated employment.

Labor competency in Bali is high, particularly for artworks and dedicated tourism. But rather low in industries and construction works, and many opportunities in these fields filled by Javanese worker.

Figure 1.6. The Composition of Employment Based on Education, 2004

2004

High School 32.69%

Vocational 4.57%

Academic Graduated

10.11%

Elementary 52.63%

Figure 1.7. Employment of More Than 10 years old by Main Sectors in Bali Province, 2004

Agriculture37.13%

Manufacture10.38%

Trade, Hotel & Restaurant

26.69%

Construction5.70%

Public Service & Finance14.39%

Others5.72%


BKPM - JICA


Minimum wage rate in Bali is relatively higher than most province of Java, which issued at Rp. 447,000 per month in 2005. The actual wage per day estimated from different type of employment are :

- Semi skilled construction works 45 – 50,000 per day - Semi skilled agriculture works 30 – 35,000 per day - Semi skilled factory worker 35 – 45,000 per day - Skilled artistan (Gold/jewelry) 70 – 80,000 per day

Land Prices in Major District (Kabupaten/Kota)

In general there are difficulties to acquisition large area (more than 5 ha) from present ownership, particularly in urban, sub urban and agriculture areas. Price range Rp. 2 – 3 mill/sqm in Denpasar commercial area Rp. 0.1 – 0.3 mill/sqm in non-urban Tourism zone. Instead of acquisition of land, there are various land authorization for utilization in 30 years period through long term rent or mutual cooperation with land holder. A common practice of rent in many cases is range between 1 – 2.5 % from actual prices per year utilization, in non-urban areas.


BKPM - JICA


Land Transportation

Road is the only land transportation network, which configured following the nature ridge, south to north across the central mountain range, plus another network along coastal road surrounding the island. This coastal network connects to Java network and other Nusatenggara islands through Gilimanuk and Padang Bai Ferry terminal.

Total road length is 6,644 km, with 1,252 km are better maintained under National and Provincial services the remaining5,391 km managed under Districts, majority have acceptable quality only few section of them are gravel and soil paved.

Table 2.1: Road Length and Pavement Type by Road Status, 2004 Pavement Type (Km) Road Status Asphalt Gravel Soil Total (Km)

National 405.93 -- -- 405.93Provincial 846.89 -- -- 846.89

Local 4,432.94 231.54 726.95 5,391.43Total 5,685.76 231.54 726.95 6,644.25

Source: Data Bali Membangun 2004

The southern network is loaded with larger transportation volume compare to the northern section, correlates with more number of settlements and production centre (Tourism, Agriculture and Industries) in the southern area. This unbalance development basically is a result of natural agglomeration from geomorphologic condition and soil fertility.

The government future program is oriented more to disperse the dense volume of southern networks by developing new arterial (Sanur Kusamba By Pass, Mengwi-Gianyar and Kuta Selemadeg).

Sea Transportation

The sea transportation are served by 2 Ferry Port in Gilimanuk and padang Bai and interinsular harbors in Benoa as the largest passenger and cargo port and Celukan Bawang.

The number of arriving and departing passenger in both Ferry harbor were declining over the latest 5 years meanwhile number of vehicles was increasing, indicated that Bali economic activities are continue growing beyond the security limitation (Bali blost terror effect).

Bali volume of loaded and unloaded cargo were also raising at Benoa Port in the south and Celukan Bawang in the north. Celukan Bawang currently serves for only unloading of basic consumption goods without container facilities. Benoa accommodate a better capacity of cargo facilities although the capacity of its container port is very limited Sedimentation is other limitation for navigation development in Benoa Port. This condition creates more and more increasing industrial products of Bali (handicraft), transferred through major road and ferry to Tanjung Perak for export at a higher transportation cost.

II.CURRENT SITUATION AND FUTURE INFRASTRUCTURE DEVELOPMENT

Loading and unloading Activities in Benoa Harbor


BKPM - JICA



BKPM - JICA


Table 2.2: Total Passengers in Ferry Harbors (2000-2004)

Gilimanuk Padangbai Total Year Arrival Departure Arrival Departure Arrival Growth Departure Growth 2000 3,060,811 3,198,590 499,554 461,187 3,560,365 3,659,777 2001 2,323,081 2,409,899 445,886 427,272 2,768,967 -22.2% 2,837,171 -22.5%2002 2,117,998 2,190,327 379,030 345,019 2,497,028 -9.8% 2,535,346 -10.6%2003 1,835,433 1,781,063 286,068 227,921 2,121,501 -15.0% 2,008,984 -20.8%2004 1,853,550 1,805,341 235,464 196,889 2,089,014 -1.5% 2,002,230 -0.3%

Source: Data Bali Membangun 2004, BAPPEDA Propinsi Bali, 2005.

Table 2.3: Number of Vehicles (4 Wheels) in Ferry Harbors (2000-2004)

Gilimanuk Padangbai Total Year Arrival Departure Arrival Departure Arrival Growth Departure Growth 2000 604,663 601,833 104,623 105,454 709,286 707,287 2001 722,134 730,494 103,829 106,897 825,963 16.4% 837,391 18.4%2002 723,430 719,544 96,150 102,400 819,580 -0.8% 821,944 -1.8%2003 675,092 647,931 94,172 98,171 769,264 -6.1% 746,102 -9.2%2004 721,719 675,295 100,448 104,676 822,167 6.9% 779,971 4.5%

Source: Data Bali Membangun 2004, BAPPEDA Propinsi Bali, 2005.

Table 2.4: Volume of Unloaded and Loaded Goods (Domestic & International) in Benoa & Celukan Bawang Harbors, 2004

Port Unloading (ton) Loading (ton)

Benoa

a. Domestik 864.488 74.817 b. Internasional - -

Celukan Bawang

a. Domestik 649.640 505 b. Internasional - -

Source: Data Bali Membangun 2004, BAPPEDA of Bali Province, 2005

Oriented to a more balance on Bali development (Bali structure plan), Government has tend to develop Celukan Bawang as future port for export replacing Benoa which than focused in the future to serve Tourism and Fisheries. This plan is not a popular way out for Industrial communities since access to Celukan Bawang is not appropriate for container through narrow 2-lane road, crossing 1000 m elevation over mountain range. Most of industries in Bali (handicraft, agriculture) are located in the southern area.

Air Transportation

The recent international Ngurah Rai airport as the second largest after Soekarno Hatta International Jakarta provides direct access flights to many international cities. With 8.7 % growth per year of arrivals and 8.4 % per year departing passenger over the last 5 year, the airport has grown as national tourism entrée point and primary show window of Bali products to global market.


BKPM - JICA


Table 2.5: Domestic Flight Route from Ngurah Rai Airport, Bali, 2005

No Destination/Origin Frequency /month


Arr Dep Arr Dep1 Ambon 1 0 16 Manado 1 0 2 Bandung 2 3 17 Malang 2 1 3 Batam 2 1 18 Mataram (Selaparang) 298 298 4 Balikpapan 1 0 19 Maumere 26 25 5 Banjarmasin 1 0 20 Medan 1 2 6 Bima 37 37 21 Palembang 1 0 7 Ende 1 1 22 Semarang 3 3 8 Jakarta (Halim P. K.) 27 27 23 Solo 0 1 9 Jakarta (Cengkareng) 878 878 24 Sumbawa 1 2

10 Yogyakarta 125 126 25 Surabaya 420 427 11 Kendari 4 0 26 Timika/Tembagapura 32 25 12 Kupang (El Tari) 50 53 27 Tombolaka 15 19 13 Labuan Bajo 44 46 28 Ujungpandang 68 73 14 Lokal 53 52 29 Waingapu 12 13 15 Madiun 0 1

Source: PT. Angasa Pura I.

Tabel 2-6: International Flight Route From Ngurah Rai Airport, Bali, 2005



Arr Dep 1 Adelaide 13 14 14 Kaohsiung 27 27 2 Bandar Seri Begawan 9 9 15 Kuala Lumpur 126 126 3 Bangkok 31 31 16 Melbourne 32 26 4 Brisbane 27 22 17 Nagoya 13 13 5 Broome 3 3 18 Narita 64 31 6 Christmas Island 6 6 19 Perth 98 98 7 Darwin 23 23 20 Portheadland 5 5 8 Dilli 31 31 21 Seoul 1 0 9 Fukuoka 11 10 22 Singapore 145 148

10 Guam 14 13 23 Sydney 40 52 11 Hongkong 50 50 24 Taipei 68 67 12 Incheon 18 19 25 Tokyo 10 10 13 Kansai 51 23 26 Other 2 2

Source Angasa Pura I.


BKPM - JICA


Table 2.7: Number of Arriving Passengers (Domestic & International) in Ngurah Rai International Airport, 2000-2004

Domestic International Total Year Person Growth Person Growth Person Growth 2000 714,613 1,394,586 2,109,199 2001 807,836 13.0% 1,481,164 6.2% 2,288,999 8.5%2002 908,152 12.4% 1,458,985 -1.5% 2,368,137 3.5%2003 1,100,572 21.2% 1,088,670 -25.4% 2,189,243 -7.6%2004 1,438,415 30.7% 1,501,355 37.9% 2,940,770 34.3%

Average Annual Growth 19.1% 1.9% 8.7%Source: Data Bali Membangun 2004, BAPPEDA Propinsi Bali, 2005.

Table 2.8: Volume of Unloaded Goods (Domestic & International) in Ngurah Rai International

Airport Bali, 2000-2004

Domestic International Total Year Volume Growth Volume Growth Volume Growth 2000 8,984,643 7,777,515 16,762,158 2001 8,373,548 -6.8% 4,991,382 -35.8% 13,364,930 -20.3%2002 7,084,800 -15.4% 5,421,976 8.6% 12,506,776 -6.4%2003 7,788,587 9.9% 15,766,574 190.8% 27,516,668 120.0%2004 9,506,053 22.1% 6,439,510 -59.2% 15,945,563 -42.1%

Average Annual Growth 1.4% -4.6% -1.2%Source: Data Bali Membangun 2004, BAPPEDA Propinsi Bali, 2005.

Although its cargo volume is decreasing since year 2000 (occupied by mostly Tuna), there are still large chances to use air cargo for high value export commodities from Bali. The future development of Ngurah Rai Airport is focused to improve the tourist service and international cargo facilities including commercial and business service.


BKPM - JICA



BKPM - JICA


Electricity and Water Supply

The electricity supplies by PLN which production is provided through 3-power plan and the distribution is linked with Java-Bali interconnected transmission line. Although current production capacity (2,118 mill KWH) is still larger than the consumption which are dominated by business and households (1,895 mill KWH), in the future the extension of capacity may needed, considering the intensive growth of Bali industries.

New investment intention to develop geothermal energy station in Bedugul is opposed by local government and communities due to environment and sacred location reason. However future increase of electricity tariff as a consequence from raising fuel prices will impact to the production cost of industries and may lessen its global competitiveness. Not all areas in Bali have adequate raw water for domestic uses. Northern area as it has less rainfall is lack of raw source of water, also area Nusa Penida that is mostly covered by Karstic formation. Ground water may use as future raw water for Nusa Penida Island. Major source are collected from perennial rivers and springs which only available to supplies to urban area by local city water companies (PDAM). Total production capacity (2004) Bali is 4,996 l/second and consumption in a year reach 83,520,000 m3, more than half use for residential. Only 241,500 households accessed by city water which cover less than one third of Bali household.

Telecommunication

State owned company Telkom is the largest operator for both fixed and wireless telecommunication services in Indonesia. Other private companies are also exist in providing services particularly for wireless telecommunication using cellular telephone through available GSM and CDMA system. The Indonesian rate for cellular telephone services is consider among the highest in Asia.

The current fixed telephone connection unit provided by Telkom is reached 218,697 connection units in 2004 an increase from 211,288 units in year 2000. Fixed telephone rate are much cheaper than wireless cellular rate, but mobile is the main reason of more people use cellular services.

Industrial Estate and Tourism Zone

There are 2 zone allocated by Government for industrial estate in Bali, in Kecamatan Negara (Jembrana region) and kecamatan Gerokgak (Buleleng region). Both zone are designated for non-pollutant mid scale industries, Nagara for fisheries base industries and Gerokgak for food processing industries. There are no further field activities, all progress is still in the planning stage; also magnitude of the area is un known.

Government has confirmed 15 tourism zone and 6 special tourism zone within Bali Spatial plan, which was legalized by Legislative for Local Regulation 2005. This Tourism zone and special zone are stated to avoid excessive land conversion in agriculture and reserve area and also for better control of development.


BKPM - JICA

PT. Mitrapacific Consulinso International 3-1

0

Agriculture Sector

Agriculture has engaged a total of 427,500 Ha of land, majority operates by smallholders with less area belong to private sector and government. Food crops, livestock and fisheries are the major contributor of Agriculture sector to GRDP 2004, their portion are 11.3%, 5.07% and 3.5% respectively.

In this section, agriculture discussion will focus to the product of food crops, plantation and livestock. Fisheries as the largest export value of all Agriculture products of Bali will be discussed in its own section.

Agriculture has absorbed 37.13% of Bali manpower in 2004, a significant increase from 2003, which absorb a lower 31.9%. This condition indicates that Agriculture became compensation field to the slump down of Tourism.

Product Competitiveness Food crops :

• In Bali Food crops occupies a dominant areas (49% – 50% of agriculture land) and the largest production. However most of productions are oriented for consumption, and very limited number produced as economic crops. The production is managed by multiple cropping to the rice, which makes the productivities remain low. Corns, cassava, sweet potato including other grains (peanuts, green nuts, soybean etc) are the common consumption commodities of Food crops in Bali.

Horticulture :

• Vegetable planting areas in Bali are tremendously growing by 28.46% per year, from around only 7,624 Ha in year 2000 to around 20,763 Ha in year 2004. The planting areas of Fruits are also significantly extended by 6.32% per year, the rapid growths are occurred to Orange and Grape (22% and 24%). Most of fruits and vegetable are not intensively growing as economic crops, except grapes and oranges. Grapes are growing to supply the existing local winery industries to produce a high value Bali wine. Orange still oriented in its local market with a high-fluctuated prices.

Horticulture productivity of Bali is relatively higher than productivities in Central and East Java; resulting from the effective Subak performance. The vegetable products of Bali are largely oriented for local market with only small amount for export. This vegetable export value is relatively low, as it reach only 0.87% from total Bali export 2004.

Similar with vegetable only small number of fruit product is exported, and most of local fruits quality is not competitive compare to import products.

III. CURRENT SITUATION AND FUTURE PROSPECT OF MAJOR SECTORS

Paddy rice terrace in Bali, a heritage of traditional agriculture system, which is believed to be the root of exotic Bali culture.


BKPM - JICA


Table 3.1: Dominant Horticulture Products in Bali Province, 2000-2004 (Tons)

Commodity 2000 2001 2002 2003 2004 Ave. Annual Growth

Cabbage 53,961 49,617 50,468 52,106 54,855 0.4%

Tomato 26,880 43,785 45,216 44,176 41,323 11.4% Chili 29,629 27,899 25,266 41,480 37,752 6.2% Onion 11,355 10,763 12,397 10,994 12,697 2.8%

Garlic 1,525 1,658 2,397 1,070 735 -16.7% Leek 1,920 2,081 1,339 1,480 2,119 2.5%

Potato 6,384 5,139 4,700 4,835 7,752 5.0% Banana 53,189 58,905 124,254 102,157 142,475 27.9% Orange 25,779 49,522 45,529 83,129 57,068 22.0%

Mango 37,111 45,787 36,000 55,980 54,179 9.9% Zalacca 36,177 35,954 32,667 34,546 36,787 0.4%

Grape 8,002 10,421 21,899 11,069 19,035 24.2% Source: Data Bali Membangun 2004. BAPPEDA Propinsi Bali, 2005

Table 3.2: Export of Edible Vegetables and Fruits in Bali Province (US$)

Commodity 2000 2001 2002 2003 2004 Ave. Annual Growth (00-04)

Vegetable 277,626 304,906 60,176 22,483 120,500 -18.83%

Fruit 876,123 1,504,412 19,916,536 8,356,161 1,931,726 21.86% Source: CBS Bali Province, 2005

• Major weakness of horticulture products in Bali is inhibit from its traditional management as secondary crops which less care and adequate technology input. Weak extension provided by Government after decentralization to local farmer also contribute to a low competitiveness of Bali (Indonesia) horticulture product for export market.

• Having a limited available area, Bali may not feasible for industrial crops which requires extensive land, but high value crops may promising, to earn more value in smaller space, i.e. Asparagus, bamboo shoot, mushroom, organic vegetables, herbal medicine and fruits (grape, strawberry).

In the last 5 year production of grapes is increase by 24.2% per year motivated by high domestic demand for wine consumption. There are several winery operates in Denpasar to produce wine for hotelier consumer and at limited number for export. Buleleng and Karangasem with its dry climate is the main grape production centre.

High value horticulture like asparagus, mushroom and bamboo shoot has a wider opportunities for export, both from its primary products (fresh or frozen) or secondary product (canning, dry or vacuum container).

• Organic vegetables is another potential high value commodities to develop in Bali and Subak could be a mature organization to be traditionally move to organic management. Demand are always in creasing particularly from developed countries (Europe, North America, Japan).

• Herbal medicine currently were growing and its home industry products has entered European market, particularly for beauty and body care products. The products are formulated following Balinese traditional recipe. Bali has global brand image and Bali


BKPM - JICA


traditional spa and body care has been recognize worldwide through International high class hotel facilities.

Plantation :

• Total plantation area in Bali (2004) is 156,200 Ha, 98% run by smallholder and only 2% belong to larger estate.

Coconut, vanilla, cacao and cashew nuts are the main plantation product of Bali. Coconut has the largest planting area (46%), but most of products use for consumption and local market. Although contributes a large export amount in 2004 (US$ 6.8 mill), vanilla planting area in Bali is quite small (630 Ha). Most of Bali vanilla product is collected from East and West Nusa Tenggara and send to Surabaya for export. Surabaya is the main buyer and main exporter of its raw or processing products. Cacao and cashew nuts are growing on a coverage of 13% from total plantation area.

Table 3.3: Dominant Plantation Products in Bali, 2000-2004 (Tons)

Commodity 2000 2001 2002 2003 2004 Ave. Annual Growth

Coconut* 75,229,659 75,127,265 74,003,292 76,304,531 75,039,416 -0.1%Arabica 3,768,420 5,822,677 3,768,420 4,412,616 3,696,206 -0.5%Robusta 17,213,308 13,879,931 15,583,475 16,661,446 15,386,405 -2.8%Vanilla 7,229 5,411 6,891 3,603 5,9874 -5.2%Cashew nut 5,107,745 4,676,262 6,138,819 2,961,794 3,128,833 -11.5%Cacao 4,424,367 4,816,629 6,611,492 6,040,036 6,123,869 8.5%Cloves 10,975,168 7,081,875 9,680,211 8,205,01 5,451,150 -16.05%

* Not economic commodity. Source: Data Bali Membangun 2004. BAPPEDA Propinsi Bali, 2005

Although Bali was used as pilot project for cacao fermentation training and technology, the production and planting area of cacao as well as cashew nuts is far beyond South Sulawesi or East Java, which considered as not quite competitive at National scale (only 8,620 Ha cacao in Bali compare to 230,990 Ha in South Sulawesi).

Table 3.4: Area and Production of Main Plantation Commodities, 2004 Type of

Business/Commodity Area (Ha) Production

(Tons) Productivity

(Kg/Ha/Year) Small holder Estate : 1. Coconut 2. Robusta Coffee 3. Cashew nut 4. Arabica Coffee 5. Cacao 6. Vanilla 7. Clove 8. Other

71,46826,56311,1179,6718,622

61418,973

74,543,391 15,371,747 3,031,833 3,693,281 6,053,396

5,874

9,495 4,444 855

2,942 7,258 288

1,760

Total area 154,868 Private Estate : 1. Coconut 2. Robusta Coffee 3. Cashew nut 4. Arabica Coffee 5. Cacao 6. Rubber 7. Vanilla 8. Clove 9. Others

786150147

5113991637

496,524 97,000 70,473 14,658 2,925

79,556 0.053

13,265

2,867 464

1,290 2,061 731

1,473 3

729


BKPM - JICA


Type of Business/Commodity

Area (Ha) Production (Tons)

Productivity (Kg/Ha/Year)

Total Area 1,339 Source: Plantation Agency of Bali Province, 2005

• Coffee is other exceptional commodity.

Although total coffee production and its planting area in Bali is relatively small (rank 8 th in National production), Arabica coffee of Bali (Bali coffee) is recognized as special high value coffee in word market. Arabica coffee has a better prices (2 – 3 times) than Robusta and gains a more stable global market. Nevertheless cultivating Arabica may not attractive for local “quick yielder” farmer as more intensive care is required for a longer yield period. Arabica planting area in Bali is almost one third of Robusta (26,600 Ha), and yet the Arabica planting area was decreasing by 16.10% per year from 16,017 Ha in 1999. Bali coffee a special coffee of Bali has been geographically registered and patented as the only special Arabica coffee originated from Kintamani, appraised by Cierad (France).

Over decades Indonesia is the Asia leading Robusta supplier to the world market, but within less than 10 years Vietnam take over as the third largest Robusta exporter in the world. Indonesia coffee was degrading by its productivity and quality. Recent Vietnam average productivity (1.5 – 1.8 Ton/Ha) is more than double to local smallholder productivity in Indonesia.

Other competitor in Arabica coffee production are Columbia, Central America, India, Ethiopia and Papua New Guinea.

Table 3.5 Indonesia vs Vietnam Exported Coffee, 1996-2004 (in 60 kilo bags)

Country

1996 1997 1998 1999 2000 2001 2002 2003 2004

Indonesia 6,440,280 5,755,078 5,598,032 5,115,027 5,357,594 5,243,405 4,285,830 4,794,720 5,455,599

Vietnam 3,779,415 6,177,834 6,466,712 7,727,013 11,615,113 13,945,529 11,771,367 11,631,111 14,858,991

Source : ICO (2005)

More intensive extension and technical assistance is required to rehabilitate the high branding of Bali coffee to the smallholders.

Livestock :

• Livestock in general has not been managed in a business and economical scheme. Its production volume and export value is very low although contribution to GRDP 2004 is quite substantial (4.6%). This condition indicates that most livestock products are use for consumption and locally marketed. The opportunities for export product (meat) is too far from hygienic quality with uncertain continuous raw supplies.

Limitation and Opportunities in Agriculture Sector - Suitable farmland are owned by individuals/ communities make authorization for other

utilization (non agriculture) and extensive monoculture farming may difficult.

- Small size of average land holding makes difficulties for investor who need extensive land for industries. Implementing plasma scheme may not effective, but mutual cooperation is promising.

- Intensive technological support is needed to improve the low productivity of farmer particularly for higher value crops development.


BKPM - JICA


- Low competitive products of horticulture and plantation mainly caused by low intens care of the farmer and manages as secondary crops without sufficient business attitude.

- Paralyzing of extension activities by local government after decentralization, contribute to uncompetitive condition of major agriculture commodities for export market (coffee, cacao, horticultures, sugar cane, silk etc.).

- Less support of Government particularly in establishment of export certification for organic food products.

+ Agriculture is an integral part of Balinese culture that is still retained. Subak is an effective traditional farmer organization which currently weaken but potential for future agriculture development.

Investment in agriculture sector can setup mutual cooperation with Subak for a long term business.

+ The government and stakeholders in Bali have strong desire to improve Agriculture sector production.

+ High value crops development as an alternative solution to gain more value from limited land area, and to reduce dependency to Tourism sector.

Secondary products (food industry) is other effort to increase added value of Agriculture product.

Government policy in supporting Agriculture development : - Prevent excessive transfer of farmland into non farm utilization.

- Urge partnership between capital owners as buyer and farmer group as land owner to overcome land limitation for farming development.

- Making agriculture as a competitive industrial sector that can substitute dependence on Tourism.


BKPM - JICA



BKPM - JICA


Fisheries Sector

• Capture Fishery is dominating the Fisheries products of Bali, during (2000 – 2004) total capture for commercial and consumption is in crease by 3.72% per annum but valuable tuna catch is drop by average 2.81%. Fresh and frozen tuna export also drop from US$ 59,054,000 (2000) into US$ 34,996,000 (2004).

Most of Bali capture products are collected from fishing ground in Makasar straits and Flores sea, while currently the sustainable potential fish resources in Bali strait and Java sea are very low (55,000 ton/year in Java sea compare to 193,600 per year in Makasar strait).

Table 3.6: Marine Catcher Indicators in Bali Province

No Description 2000 2001 2002 2003 2004 Ave. Annual Growth

1 Number of fish caught (Tons) 56,822.7 60,046.4 82,305.3 95,822.4 65,767.7 3.72%2 Boats (units) - Without motor 6,095 5,015 5,165 3,419 3,557 -12.60% - Attached motor 7,506 6,831 7,172 9,259 9,190 5.19% - Motor boats 427 594 445 522 826 17.93% < 5 GT 25 8 - - 62 25.49% 5 - 10 GT 109 134 31 34 43 -20.75% 10 - 20 GT 8 10 63 29 46 54.85% 20 - 30 GT 11 32 76 61 139 88.54% 30 - 50 GT 64 79 12 76 101 12.08% 50 - 100 GT 95 163 164 164 229 24.60% 100 - 200 GT 110 163 93 152 202 16.41% > 200 GT 5 5 6 6 4 -5.43%3 Catching tools (units) 40,612 44,810 36,397 33,791 41,629 0.62% - Bag dragnet 392 631 301 438 437 2.75% - Gill net 9,852 9,487 10,580 10,775 12,610 6.36% - Lift net 1,139 341 582 456 493 -18.89% - Fishing rod 21,617 24,666 19,580 20,008 23,846 2.48% - Others 7,612 9,685 5,354 2,114 4,243 -13.59%4 Fishermen (persons) 25,593 36,566 32,666 37,240 40,365 12.07%5 Fish Auction Place (units) 10 10 10 10 10

Source: Dinas Perikanan dan Kelautan Propinsi Bali, 2005.

• Increasing number of motorized fishing vessel (17.93% per annum) which were dominating by larger vessel of 20 – 30 gross ton (88.54% per annum) indicates that more fish, even for consumption, should be catch in the ocean, means coastal fish resources surrounding Bali is less sustainable.

• Manpower in fisheries sector (2004) is still dominating by capture fishing (53,8% from total Bali fishery household). Aquaculture occupies a smaller economic portion, mainly oriented to brackish water pond (shrimp, milkfish) and marine culture (seaweed). Brackish pond of shrimp culture has been stagnant influenced by white spot virus, but in the latest year more fishers turned to seaweeds culture after operation cost of fishing is jumping by raising fuel price.


BKPM - JICA


Table 3.7: The Growth of Main Marine Capture Production in Bali Province (Ton)

Type of Fish 2000 2001 2002 2003 2004 Ave. Annual Growth

Tuna 26,767.9 28,014.5 24,386.6 30,694.9 23,882.4 -2.81%Sardines 8,185.7 7,845.5 36,169.2 32,111.8 15,614.8 17.52%Tongkol 11,471.4 11,637.8 10,893.7 4,512.9 10,083.2 -3.17%Cakalang 1,501.9 1,579.7 1,973.6 3,321.4 3,271.8 21.49%Ikan Terbang 969.6 426.2 467.9 5,110.7 657.3 -9.26%Layang 824.9 3,184.1 418.7 829.1 663.1 -5.31%Bambangan 311.0 302.7 151.1 2,629.0 137.4 -18.47%Teri 315.6 294.6 529.9 1,296.6 496.1 11.97%Selar 122.2 178.5 1,387.2 421.5 418.5 36.04%Tembang 245.0 154.8 148.9 378.7 668.7 28.53%Others 6,107.5 6,428.0 5,778.5 14,515.8 9,874.4 12.76%Total 56,822.7 60,046.4 82,305.3 95,822.4 65,767.7 3.72%


Product Competitiveness

• Marine capture products are mainly sent to the market in the form of fresh and frozen (57.0% from total capture production) and the remaining appeared in salt preserved (21.5 %), canned (7.78%) and fish powder (5.32%). This explained that the portion of added value product/ food industries in fisheries products is quite low, while demand is continue increasing in domestic and developing countries.

• The declining of tuna catch production also indicate a significant degradation of fish resources potential in most fishing grounds in Makasar straits and Flores sea, by illegal fishing. The less sustainable potential resources in Java sea and Bali coastal water also occurred by continuous over fishing. A better sustainable resources in EEZ in Indonesian ocean are only able to operate by a better technology, larger vessel and advance equipment, which are outside the capacity of local fisherman.

• A National Research centre for Marine Aquaculture is located in Gondol, Bali. With technical support from JICA they has successfully produce high value fries of Grouper and Jellow fin Tuna. Fries of Grouper has been distributed to many marine culture production center in other provinces (Riau, Java, lampung).

Table 3.8: The Growth of Main Marine/Fresh water Cultivation Production in Bali Province

Item 2000 (Ton) 2001 (Ton) 2002 (Ton) 2003 (Ton) 2004 (Ton) Ave. Annual Growth

Seaweed 107,611.7 106,082.5 111,875.0 108,564.4 155,984.6 9.72%Grouper - 1.5 10.5 15.3 37.3 Shrimp 788.4 568.3 605.2 2,827.7 2,172.2 28.84%- White Shrimp 166.4 156.2 219.1 2,354.1 1,848.6 82.57%- Galah Shrimp 80.3 140.9 153.3 230.9 231.2 30.26%- Windu Shrimp 541.7 271.2 232.8 242.7 92.4 -35.73%Milkfish 505.0 1,249.6 600.8 66.8 703.1 8.63%Karper 411.1 484.2 499.2 495.7 406.9 -0.26%Nila 120.5 85.6 128.4 196.4 210.9 15.02%Gurame 110.0 123.7 145.9 112.1 113.3 0.74%Lele 108.1 37.1 36.6 58.5 88.1 -4.99%Others 94.7 75.1 46.7 48.9 30,017.8 321.95%Total 109,749.50 108,707.60 113,948.30 112,385.80 189,734.20 14.67%



BKPM - JICA


The aquaculture development in Bali is slowly growing, most of farmer prefer to deal with low technological and low prices product i.e. seaweed.

There are still limited development in marine aquaculture for high value export commodities like groupers, crabs, abalone, lobster etc. Demand for grouper is large in China, Singapore, Taiwan and crabs mainly exported to North America and Europe and Abalone as a high priced consumption in China and Japan.

Limitation and Opportunities in Fisheries Sector - Bali strait, coastal and North Java has drops their capture potential capacity, Makasar

strait and Flores sea may continue declining, Indian Ocean require advance catching facilities and vessel.

- Almost lack extension for local fishers/ farmer provided by Local Government particularly after decentralization. Meanwhile moving the orientation to aqua culture from capture requires strong change of attitude and need technology support.

- High fuel price make more fisher move to seaweed cultivation or working as labor in urban areas. Capture fishing tremendously drop at moderate level, only large fishing company can survive.

+ Bali has strong support for aquaculture development from National Research of Marine Aquaculture in Gondol. Marine culture for high value commodities (grouper, crabs, abalone, lobster, pearl, etc.) can be developed in Bali or by synergy with farmers in West Nusa Tenggara.

+ Development of secondary product of fisheries (canning fish, crabs, seaweed cosmetics, powders etc.) is another opportunities to develop a higher value input from a declining potential resources.

Government policy focused to strategic programs to increase the product, sustaining the fisheries resources capacity and improve the related institutions.

Most of program is oriented to control capture fishing activities by Monitoring, Controlling and Surveillance through community participation, to maintain sustainable fisheries resources also developing culture base fisheries by increasing aquaculture production of brackish and marine water.


BKPM - JICA



BKPM - JICA


Manufacture (Handicraft Sector)

Handicraft is the most distinguished product of Bali in the manufacturing sector. It was growing through tradition and ritual believes, creates a natural born talent to the Bali craft people.

Handicraft products distinguished into 2 different character of market:

- Traditional handicraft, which produce various souvenirs or memorabilia expressing Balinese Icon. Demand for this products are limited to Bali visitor or tourists and antique interest.

- Handicraft for function home accessories, kitchenware or tableware, which produces oriented to consumer demand. Balinese character may or may not appear in the design. Demand for this product is large, mostly in developed countries.

Bali Handicraft products are made from various raw material of wood, metal, textile, silver, natural fiber or its combination.

Most of raw materials are transferred from other region, as Bali has no potential resources.

Man power in Bali, relatively has a higher wage than Java, as their skill in general also high. But their productivity are lower compare to Java. Minimum regional wage of Bali, is Rp.450,000 in year 2004), but actual daily rate is much higher than published regional wage. Most of handicraft export product in Bali are made by mid class industries while most of souvenir products are supplied by small or home industries.

The present export commodities of Bali handicraft products are: Furniture, house components, home accessories, house ware, kitchen and table ware, garment and jewelry.

Table 3.9: Production and Export of Handicraft in Bali Province 2004

Production Export Value No Handicraft Industries Production

Volume Value (US $) US $ % From

production value

1 Wooden Handicraft 11,741,367.0 pcs 46,524,753.6 11,549,677.0 24.82%2 Textile Handicraft 104,793,952.0 pcs 90,373,110.4 37,366,139.0 41.35%3 Metal and Mixed Material

Handicraft 3,998,333.0 pcs 7,788,621.8 2,806,497.0 36.03%4 Jewelry 5,911,809.0 pcs 7,174,874.8 17,346,252.0 241.76%*)5 Ceramic Handicraft 285,074.0 pcs 312,786.0 467.000.0 149.30%6 Natural Fiber Weaving Handicraft 1,640,871.0 pcs 4,054,553.7 2,806,497.0 69.22%

Source: Dinas Perindag Bali Province, 2005; MCI Compilation 2005. *). Include Bonded Jewelry Industry in Ubud.

Figure 3.3: Bali Handicraft Export Value Compare to Indonesian Handicraft Export

137,418,452 177,102,853

472,431,000 338,166,000

- 100,000,000 200,000,000 300,000,000 400,000,000 500,000,000

2000 2001 2002 2003 2004 Year

Value (US $)

Export Value of Bali Handicraft Product Total Indonesian Export of Handicraft

*


BKPM - JICA



• Wooden handicraft : The products include wood working products such as: furniture, outdoor accessories,

antique door and windows and garden house (gazebo). Most of the products oriented for export. Considering the higher labor cost of Bali, large part of products are made in Java, in semi finish product and send to Bali for completely finish items for export.

Figure 3.4: Export Value of Wooden Handicraft

6,388,215

11,354,172

5,873,128

5,676,549

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

2000 2001 2002 2003 2004

Year

US $

Furniture and House w are Home Accessories and Decorative Source: BPS, Export Bali Province, 1997 – 2004, MCI Compilation (2005)

Other wooden handicraft is produces as home and interior accessories (ie. boxes, frames, wall hanging decorative, lamps etc).

Most of raw materials for this commodities are supplied from Sulawesi (ebony), Java (teak) and Kalimantan (other hardwood).

These are specific commodities which has more dependency to the market demands. Many of the industries located in Denpasar or Badung which has easier access to raw material and international market show windows.

• Metal and mixed material handicraft : This products are made from metal, or mixed with wooden, ceramics (iron, steel,

brass, copper etc) or resin. Similar with wooden handicrafts, the products are appeared in home accessories (functional and decorative), kitchen ware and table ware.

Figure 3.5: Export Value of Metal & Mixed Material Handicraft (Home Accessories and Decorative)

6,453,970 4,132,390

-

4,000,000

8,000,000

12,000,000

16,000,000

20,000,000

2000 2001 2002 2003 2004

Year

US $

Metal & mixed material home accessories

Source: BPS, Export Bali Province, 1997 – 2004, MCI Compilation (2005)


BKPM - JICA


There are several mid scale industries own by PMA engage in this business and most of them gained a more competitive export products compare to other local industries. They have taken advantages by developing extensive design innovations to follow the international consumer and market trends. Product quality control and material technology also become their main consideration. Market segment of this functional handicraft is belong to the upper layer consumer which demanding a more expensive hand made quality product and design. The portion of this segment is much smaller than regular consumer who focused to the function items of a more cheaper machinery products. Only on this segment Bali product can compete with China or Taiwanese product.

• Jewelry: Bali is known as the best craft people for silver jewelry with its craft centre in Gianyar

(Ubud, Gianyar). There are several PMA and PMDN industries produce exclusive modern design or Balinese ethnic design jewelry for export and higher class domestic market. One of leading PMA developed a bonded zone jewelry industry in Ubud for exclusive export market.

Jewelry hold as the second largest export value of handicraft (US$ 17,346,000) after textile handicraft in 2004.

Figure 3.6: Export Value of Silver Jewelry Handicraft Product

17,346,252

13,075,302

-

4,000,000

8,000,000

12,000,000

16,000,000

20,000,000

2000 2001 2002 2003 2004

Year

US $

Silver Jew ellery


• Textile Handicraft : Many products appear from textile handicraft: casual clothing, lace and embroidery,

batik and hand weaving. Most of raw material imported from China or send from West Java (Bandung). Hand wearing of ikat is the original Eastern Bali craft products and are made mostly for domestic with smaller volume for export.

Lace and embroidery is another handmade product for export market and upper class domestic, although not quite an original craft of Bali. This textile handicraft product is demanding by Japan and North America Consumer. The common problem is come from a low price of machinery imitation produced from China.

Clothing is a semi handicraft product which effectively use Bali global image to enter export market and upper class domestic demand. Most clothing commodities are produces for casual resort and beach wear items.

Export value of clothing, lace and embroidery reach a largest among other handicraft product in 2004, at US$ 34.708.000, which major market are North America, Europe,


BKPM - JICA


Australia, Japan and Hong Kong. Most of textile handicraft industries are located in Tabanan and Badung.

Figure 3.7: Export Value of Textile Handicraft

(Women Fabric, Embroidery, Lace)


• Ceramics: As a new handicraft industries, which completely is outside Balinese original craft product (pottery). Growing through exhausted technical support from Japan and Australian ceramic artisan. The products are developing quite fast and more modern Bali thematic design were introduced to export market, which gained a value of US$ 467.000 in 2004. A significant result from Bali global image in ceramic arts.

• Natural Fiber Weaving: This handicraft is the original craft product from East Bali, using the available local material; banana straws, pandanus, ata and water hyacinth. Large number of product are manage by small holder or home industries.

There is technical assistance provided by Japanese expert (JICA) to improve design, and material technology to make more products are accepted by Japan market.

Competitive producer in natural fiber weaving are India, Philippines and Thailand.

Figure 3.8: Export Value of Weaving Handicraft (Home Accessories & Decorative Woven Handicraft)

2,802,595

2,806,497

-

1,000,000

2,000,000

3,000,000

2000 2001 2002 2003 2004

Year

Valu

e (U

S $)

Woven Handicraft Source: BPS, Export Bali Province, 1997 – 2004, MCI Compilation (2005)

Clothing, 34,708,276

Clothing, 50,704,952

Textile handicraft 2,657,863

Textile handicraft 2,772,752

0 10000000 20000000 30000000 40000000 50000000 60000000

2000 2001 2002 2003 2004

Value(US$)

Clothing Textile Handicraft (Woven Fabric)


BKPM - JICA


Limitation and Opportunities in Handicraft Manufacturing - Low capacity of container port facilities in Benoa Harbor, which not compatible for

large export volume. Transferring export goods to Tg. Perak Surabaya will raised significant cost.

- Land availability and high land price for industry is the major constraint.

- Bali has high quality craftmanship, high wage and labor cost but lower is productivity. Total working day in years is much less than other labor or craftman from outside Bali.

- Design innovation, material technology and product quality also market penetration are among the weakness of Bali (Indonesia) handicraft industries to compete in international market.

- There are significant impact from economic crisis and security threat (Blast terror) to the handicraft industries particularly to souvenirs and other memorabilia product of Bali. Currently souvenir products of a lower quality and cheaper price are made in Java to sell in Bali.

+ Bali has high competitive craft people for wood, silver and weaving handicraft which potential to produce a higher class export hand made commodities to upper segment consumer, avoiding competition with a cheaper machinery products.

+ Use Bali global brand image to make handicraft product accepted by international consumer. Also developing extensive design innovation and material technology to suit the consumer demand and market trends.

Government policy to support handicraft manufacturing sector. The local government focusing its support facilitation to promotion and training for small and medium enterprise in handicraft sector.

Facilities from other international institution also implemented to strengthen the competitiveness of Bali handicraft product (JICA – Japan International Cooperation Agency and International Finance Corporation – World Bank).


BKPM - JICA



BKPM - JICA


Tourism Sector

Bali is considered by most people as a world cultural heritage. The unique arts and ritual life, blended with the beauty of its nature make Bali almost as incomparable destination.

Table 3.10: Number of Foreign Tourist Visit o Bali

Number of Tourist Year Foreign Domestic

Growth (%)

1990 490,729 No Data 1995 1,015,314 No Data 1996 1,140,988 No Data 12.38 1997 1,230,316 No Data 7.83 1998 1,187,153 No Data -3.51 1999 1,355,799 No Data 14.21 2000 1,412,839 1,148,483 4.21 2001 1,356,744 978,500 -3.97 2002 1,285,844 649,650 -5.1 2003 993,029 778,509 -22.8 2004 1,458,309 916,562 46.8

Source: 1. BPS (2005), 2. Bank of Indonesia branch Denpasar (2005) Tourism is the major sectoral contributor to Bali economy. Number of tourist arrival is the main indicator of its development, which were fluctuated by political and security (blast terror) since 1997.

Bali tourism has extend its attraction segment to allow more tourism coming from various interest and country origin. Attraction of Bali 20 years ago is only limited to culture and leisure.

Cultural and natural segment as the base attraction of Bali has developing into a wider perspective of interactive attractions; village living, ecotourism and agrotourism.

Adventure and sport segment were growing to accommodate more younger people interests. Marine tourism also expanding its attraction to other island in Nusa Tenggara for sailing, diving or surfing. New developing interest are Retreat facilities which oriented its market segment more for exclusive people to be away from urban pressure. Business meeting and convention (MICE) is other segment to attract business and executive communities in combining their formal and recreational program.

Table 3.11: Segment of Tourism on Bali

No Segment Attraction Concept Segment Interest Major Country

1 Cultural Historical/Cultural Attraction: - Dance (Barong, Kecak, etc) - Ritual of Ngaben, Prayer, etc.

Historical/Cultural Site: - Hindu Temple (Besakih, Tanah Lot)

Environement/Living culture: - Ubud

- Families - Retirements - Couples

- America - European - Japan

2 Nature, Environement

Interaction with nature: - Trekking - Wild life watching

Interaction with specific social life: - Agrotourism

- Juveniles - Couples - Special interest - Retirement

-European -Australian Europen


BKPM - JICA


No Segment Attraction Concept Segment Interest Major Country

- Village Living Japan 3 Leissure,

Recreational Recreational, Shopping & Sight Seeing: - Cafe - Art Shop and Museum - Silver Shops in Celuk

- Couples - Families - Retirement

-Domestic -Asian non Japan -Australian

4 Marine Tourism

Interaction with Marine: - Cruising Ship

Sub Marine: - Snorkeling - Fishing - Diving - Surving

- Sailing

- Couples - Families -Special interest -Special interest

-American -Japan European

5 Adventure, Sport

- Rafting - Parasiling - Bunge Jumping - Trekking - Cycling/Mountain cycling

- Jouveniles - Special Interest - Couples

- American - Australian- Japan

6 Retreat, Spiritual

Retreat: Spiritual:

- Retirement - Special Interest

-American -European

Source: MCI from Various Source(2005) Number of America, Europe and Japan tourists arrival in Bali is lessen after political unrest 1998 and travel ban 2001 and again dropped after 2002 Kuta blest terror. These tourist is the highest spending consumer which have strong interest to Bali culture products (cultural attraction, artworks, souvenirs).

Other tourist country origin from Asia, Australia (Oceania) has more interest in Nature, adventure and recreational and were include as lower spending consumer with limited interest to major cultural products. For Australian, Bali is more as recreation island than an exotic cultural sanctuary, guided to a more imported attraction growing in Bali i.e. camel riding, bungy jumping, elephant adventure etc.

Table 3.12: Average of length of stay of tourist in Bali (Days)

No Hotel Class 1993 1995 1997 1999 2001 2003 Average

1 Star 3.5 3.6 4.6 6.3 4.7 4.2 4.5

2 Non-star 3.5 3.5 3.5 3.2 3.90 3.38 3.4 Source: Bank of Indonesia

Tourist from far away country origin (America, Europe) trend to spend longer period of stay and need more variation of attractions during the stay. They have much better preparation for the journey.

Average stay in Bali as measured between 1993 – 2003 is stick around 3 – 4 days, which means a significant decline considering that the number of attractions in Bali are multiply over last decade.

The spending of foreign tourist in average is US$ 260/person/day a much different with local tourism at only US$ 50/person/day. Tourist from Europe, America and Japan spend more than other country origin. Other Asia (Singapore, Taiwan, Korea) spend less than average Japan tourist but still higher than average Australia (Oceania).


BKPM - JICA


Table 3.13: Average of Tourist Expenditure in Bali Year 2004

Expenditure Foreign Tourist Domestic Tourist Accomodation 47.91 39.52 Food & Drink 19.31 11.28 Local Transportation 3.42 3.45 Tourism Attraction 2.49 5.20 Tourism Transportation 4.55 5.22 Souvenir 15.12 32.22 Tourism Operator 5.88 1.4 Others 1.49 1.72

Total 100% 100% Spending Rate US$ 260/person/day US$ 50/person/day

Source: Bank of Indonesia (2005).


• Bali is a world distinguished tourism destination. Culture, rituals, believes and traditions also, nature is the main icon of Bali, which translated in daily life in every edge of villages. Agriculture is the origin habitat of its culture and traditions. With these resources Bali has a strong conceptual selling point as its major competitiveness. India is other competitor with similar selling point being promoted, but India is more consistent than Bali and gains a huge increase of tourist arrivals in the last decade. Obviously Bali now facing a draw back of its quality art works and attraction, weaken its Subak tradition replacing by more imported artificial attraction.

• Bali also become the entry gate to other Indonesia destination (Yogyakarta, Toraja, Nusa Tenggara/Komodo etc), the security impact to Bali tourism, make a more severe effect to other Destination. For example most of Yogya tourist arrivals are came from Bali, but up to now could not recover its number of arrival back as it was before crisis (1998). There also a big gap of tourism infrastructure and service facilities between Bali and other Tourism destination in Indonesia, depress the interest to visit other destination from Bali.

• Potential tourism consumer was increasing by raised of income and consumption capacity particularly in China, India, Russia and Eastern Europe. Also more and more America and Europe will be return to Bali if local security protection is effective.

But there are no more direct flight to those country by shortfall of national online performance

Table.3.14. Number of Tourist in Bali Based on Country Origin, 2000 - 2004

Country Origin 2000 2001 2002 2003 2004 Ave. Annual Growth

North America 108,807 97,860 76,064 58,489 74,303 -9.10%Europe 436,628 422,848 392,162 245,340 316,219 -7.75%Oceania / Asia Pacific 435,480 462,413 425,009 383,479 573,101 7.11%Japan 362,270 296,284 301,380 185,751 325,840 -2.61%Asian 49,975 54,599 70,146 97,432 128,450 26.62%Others 18,679 19,113 21,111 21,711 39,252 20.40%Total Tourist 1,412,839 1,356,744 1,285,844 993,029 1,458,309 0.80%

Source: BPS Bali, 2005

There are still limited efforts from Government and stakeholder to promote tourism (Bali, Indonesia) to strong economic growth countries (China, India). In the sometime


BKPM - JICA


National airline only consider the volume of Indonesia tourist to China instead of China tourists to Indonesia. As example from 5,180,000 China tourist arrival in Asia 2004, Malaysia absorb 57%, Singapore 25% and Indonesia only 1.6%.

More active promotion is required to those countries through airline or global travel operator. Currently too much promotion stacked to Australia or Oceania, which not quite lucrative from its tourists spending rate and its less interest to cultural attractions.

Figure 3. 10. Number of Tourist in Bali

Limitation and Opportunities - Security condition is the major limitation for Tourism development in Bali, which could

make a worst effect to other tourist destination in Indonesia. Effective local security protection and central government support to reduce threat to regional security is necessary.

- Tourism development should also associated with Agriculture development. Agriculture has capacity to compensate the economic impact from Bali high dependency to Tourism. Agrotourism and high value crops development are other possibilities to support both sector.

- Strong America and European tourism demand for tropical culture and destination could be anticipated for future rebound to encourage more value of Bali tourism, instead of to much stick to Australia/Oceania.

Exploration on new target market (Russia, East Europe, China and India) may also effective to be considered before next Bali Pata travel mart in year 2007.

- Major tourists from far away country origin (North America, North Europe) requires more variation of attraction to fill their long period of stays. Synergy with other destination (Yogya, Nusa Tenggara) could be a positive anticipation.

Table 3.15: Number of Hotel Accommodation in Bali

2001 2002 2003 2004 2005 Accomodation Qty / Room Qty / Room Qty / Room Qty / Room Qty / Room

Star Hotel & Boutique Hotel 128 / 18,464 135 / 19,259 142 / 19,554 143 / 19,812 148 / 19,940

Non Star 613 / 12,721 691 / 14,221 695 / 13,984 721 / 14,408 849 / 15,332

Cottage 330 / 1,411 372 / 1,721 390 / 1,811 425 / 2,012 440 / 2,099

Total 1,071/32,596 1,198 / 35, 212 1,227/35,349 1,289/36,232 1,437/37,371 Source: Bali Tourism Authority (2005)

Foreign, 490,729

Foreign 1,458,309

Domestic, 916,562

Domestic, 1,148,483

- 200,000 400,000 600,000 800,000

1,000,000 1,200,000 1,400,000 1,600,000

1990 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Year

Persons


BKPM - JICA


Government policy to support tourism sector: Provincial government has issued structure plan to make more balanced development in limited carrying capacity of Bali. There are 15 Tourism Zone and 6 Special Tourism Zone of a more controlled development were included in the Structure Plan, which legalized as Regional Regulation.

Too much development in the south peninsula make Local Government with hold any permit to build new Hotel in Kabupaten Badung and Denpasar.

To avoid severe conflicts with agriculture use Government promote tourism areas in less fertile ground in Klungkung, Karangasem, Buleleng and Jembrana.


BKPM - JICA



BKPM – JICA


Strategic Areas in Agriculture and Fisheries Sector

Having a suitable soils and sourceful of raw water, District of Tabanan, Buleleng and Gianyar are the foremost contributor district to Bali GRDP in agriculture sector (including fisheries), with the share were 16%, 18% and 13.5% respectively.

Supporting factor for agriculture business:

• Soils and Climate

- Suitable area for food crops distributes mainly in district of Tabanan, Gianyar, Jembrana in its low land area, with commodities range from rice, corn, cassava

- Suitable area for horticulture are mostly spread over highland area in district of Tabanan and Bangli, for vegetable and fruits commodities.

- Suitable area for cash/annual crops covers a larger undulating, hilly to mountainous area of district Tabanan, Gianyar and Bangli, for coffee, cacao, vanilla and herbal medicine. A more dry (less rainfall) area in Buleleng and Karangasem also suitable particularly for cashew nuts and grape.

• Marine and Coastal Area

- The fishery marine resources in Bali coastal, Bali strait and North Java sea are declining by over fishing, as more fishers going ocean to catch for consumption and commercial fish.

- Although limited land available, also more mangrove to be protected, Buleleng and Jembrana is the suitable area for brackish aquaculture for shrimp and milkfish.

- Suitable water for marine culture particularly for seaweed is Klungkung district (Nusa Lembongan, Nusa Penida). Pristine and protected water area for high value marine culture (grouper, pearl and lobster) are very limited available in Buleleng coastal water and some spot in Nusa Penida and Nusa Lembongan.

• Manpower and Land Availability

- Agriculture manpower is available everywhere in Bali, but major part of them oriented their cultivation more for consumption commodities (food crops) than commercial commodities (horticulture, plantation). Commercial commodities require high attention, more technology input and intensive extension. Meanwhile extension to the farmer by local government is paralyzed after decentralization.

- Over the last decade, more agriculture land have switched to non agriculture utilization (property and tourism business).

IV. CURRENT SITUATION AND FUTURE PROSPECT OF MAJOR STRATEGIC AREAS

Birdview of Candidasa Beach area in the afternoon.


BKPM – JICA


Average land size ownership by household in average is low, which may need a higher value product to increase its household income.

- Fishery manpower is mostly engage with capture fishing with degrading sustainable potential fish resource, more aquaculture production is required. Also raised of fuel prices has hindered the local capture fishing activities.

It is not easy to move to aquaculture from capture, as change of attitude will required.

Table 4.1: Share of District to The Provincial GRDP in Agriculture Sector

District 2000 2001 2002 2003 Jembrana 331 344 360 240 398 634 432 442 Tabanan 557 075 611 347 681 550 749 756 Badung 296 011 327 970 377 663 400 985 Gianyar 376 097 527 784 620 284 667 250 Klungkung 246 245 279 329 325 563 361 133 Bangli 247 565 263 506 304 921 332 536 Karangasem 393 962 451 840 499 119 538 004 Buleleng 542 721 631 172 808 547 886 459 Denpasar 265 994 300 387 337 717 367 276

Bali 3 403 268 3 923 883 4 583 046 4 942 385 Source: Bali in Figure (2004)

• Infrastructure :

- The limitation of air cargo for high value agriculture product and sea cargo for general product are the major constraint.

- Also the existing facilities of fishing port in Benoa, should be improve to anticipate the increasing number of vessel.

Strategic Area and its Future Prospective

Prospective in Agriculture is depend to the availability of land. Bali is not feasible for industrial crops development like Kalimantan and Sumatra, but high value crops may be potential to develop in limited suitable area in Bali. Direct air freight access to major international cities is other benefit for high value crops export.

Prospective commodity in related strategic area:

• Tabanan has strong support for : - Horticulture which include organic vegetable and fruit also, high value crops of

other.

- Medicinal and cosmetical herbs.

• Bangli has strong competitiveness for : - Bali coffee plantation to be rehabilitate into organic management to increase

market value for export. The area occupies over 800 m elevation in Kintamani.

- Organic vegetable and fruit which occupies a lower elevation (400 – 600 m above sea level).

• Buleleng has competitiveness in development of : - Marine aquaculture to produce fry of Grouper (Hump-back grouper, spotted coral

grouper) and at limited area for fattening in floating cage into economic size.


BKPM – JICA


- Marine aquaculture to grow Crabs (P. Pelagicus), Lobster (P. Homarus), Abalone (H. Assinina). Crabs can be produces also in canning food and to be grown in marine pond. Lobster and Abalone can grow in floating cage or in bed culture with seed collected from local fishers.

- Grape plantation, as raw product for winery, send to local winery in Denpasar and Singaraja. Suitable area for grape also covers some part of Karangasem.

• Klungkung and Karangasem has suitable water for : - Seaweed marine aquaculture as the raw product for caragenan. Also potential for

further secondary product by absorbing more raw seaweed from Nusa Tenggara.

• Badung has supporting facilities to develop : - Natural cosmetics, body care and beauty care product, as secondary product

using the raw material from local medicine and cosmetic herbs. The prominent product is spa and aromatic oil, including herbal lotions, fragrance, body oil, herbal soap etc.

• Jembrana with its easier access to java: Potential for development of secondary product (food industry) from marina products and horticultures. The product covery a wider area of canning fish or crabs, canning vegetable and food etc.

Strategic Area in Handicraft Product

Decorative and functional handicraft products of home accessories, garden accessories, kitchenware or tableware have more prospective export market than souvenir handicraft products which are depend to the number of tourist visit.

The world competitor in this segment are China, Taiwan, Thailand which mostly produce various mechinal items at a lower prices offer.

Bali handicraft has better competitiveness particularly in upper consumer segment, which has more, demand for expensive hand made products.

IFC/Pensa has indicated various challenge of Bali handicraft product to be accepted in those segment market:

- Need more design innovation to suit the consumer demand and market trend, which may change every season.

- Need a better quality hand made product supported with material technology know how and sound craftsmanship.

- Need more improvement in business attitude in developing market network and strategic selling point.

Supporting factor for handicraft business

• Raw material :

Most of raw materials for handicraft in Bali is transferred from other islands or imported. Wood is particular material largely use, but its raw product sustainability is threatened by illegal logging (Kalimantan, Sumatra, Sulawesi, Java), and make an uncertain increase of the prices.

• Manpower and Land availability :

Although in general Bali craftsmanship is consider as high, its productivity is relatively lower than most productivity of Javanese labor/craftman.


BKPM – JICA


A high labor/craftman cost in Bali makes many industries employing more Javanese labor for basic works and Balinese labor for finishing. Other industries send its semi finished product from java and completely finished in Bali for export.

Land availability is not a major constraint for small and medium handicraft industries as they not require large land acquisition. Moreover many industries use local craftman as vendor of it semi finish products, which may reduce space in its processing area.

• Infrastructure

Land transportation capacity is limited to hauled container products to export port, also cargo capacity of existing Benoa harbor. All products of handicraft industry are currently exported from Tajung Perak, Surabaya.

Table 4.2 Share of Districts to the Provincial GRDP in Industrial Sector District 2000 2001 2002 2003

Jembrana 86 609 92 945 103 768 109 084 Tabanan 107 300 128 403 140 368 136 122 Badung 102 652 115 399 130 234 145 564 Gianyar 437 852 443 901 485 028 511 198 Klungkung 73 713 86 727 101 947 107 097 Bangli 54 850 64 492 75 809 80 963 Karangasem 85 303 101 192 116 751 124 346 Buleleng 195 334 230 017 269 920 302 044 Denpasar 383 960 445 701 508 144 550 3340

Bali 1 588 835 1 869 333 2 197 379 2 346 782 Source: Bali in Figure (2004)

Strategic Area and its Future Prospective

Prospective in Handicraft industry is depend to the availability or access to raw material, craft people and in particular condition to available infrastructures to support production and marketing (access to container port and access to business centre).

Most of the handicraft industries are located in Badung, Gianyar and Tabanan, indicates that there are strong relation ship with their access to craft people and with the available export facilities.

Badung has competitive facilities for : - Wood handicraft or mixed material handicraft which produces home accessories,

decoration and functional items. Most of them send the product by 20 feet container to Surabaya for export.

- Clothing include embroidery laces, casuals and beach wear. Produces for export with raw material send from Bandung or imported.

- Ceramics tableware and kitchenware is new craft work developing in Bali, with all raw material send from Java.

Gianyar has competitive manpower resources for : - Silver jewelry, made for export interest or upper class domestic, use modern design

or ethic Balinese design following the consumer demand or market trends.

- Wood and mixed material handicraft product, similar with silver maker, there also numbers of wooden craft marker in Gianyar.


BKPM – JICA


Karangasem, better access to raw material for : - Natural fiber weaving, made from pandanus and ata or other plants. As original

tradition product of handicraft of Karangasem. Produce for export and upper class domestic.

- Ceramics and terracotta to produces kitchenware and tableware. Although some of pottery raw material is available locally most of raw material are send from Java.

Strategy areas in Tourism Sector

Discourse of tourism industry is not merely about selling attraction, but also facilitating various supporting industry like transportation, accommodation, security, legal service, etc.

Development of tourism facilities are concentrated in Southern part of Bali (Badung, Denpasar, Gianyar and Tabanan) with Buleleng as other tourism center in the north area Denpasar and Badung has contribute 52 % share to the total Bali GRDP from Tourism sector.

Supporting factor for tourism business.

• Land availability. Limited availability of land in Bali has guided government to issue restriction regulation particularly in Badung and Denpasar area for new Tourism development.

• In general land price are adjusted to the demand of tourism, which price are relatively higher to be use for agriculture or industry.

Instead of acquisition the land with high upfront money for development there are other model, which commonly implemented in Bali by long term renting to the group of landowner or local government (desa)

• Security and immigration Security is the main constraint for tourism development after year 2000. Before crisis

(1998) Bali is the most secure tourism destination compares other area in Indonesia. Secure condition in Bali correlate with regional security condition in Indonesia.

Central government should also involve on making a better environment for future tourism rebound.

Prompt immigration service is other pre condition to support particularly marine tourism (sailing, cruising) and retirement tourism.

Table 4.3. Share of District to The Provincial GRDP in Trade, Hotel and Restaurant

District 2000 2001 2002 2003 Jembrana 262 648 303 434 332 588 366 725 Tabanan 337 877 383 035 426 819 441 976 Badung 1 551 722 1 670 995 1 962 655 2 198 244 Gianyar 603 922 663 327 734 963 775 246 Klungkung 170 658 182 665 211 313 227 598 Bangli 206 718 233 432 270 294 284 199 Karangasem 199 685 229 876 258 806 284 556 Buleleng 558 775 618 305 676 577 728 739 Denpasar 1 100 230 1 250 963 1 438 983 1 560 424 Bali 5 479 792 6 044 395 6 817 627 6 817 627

Source: Bali in Figure (2004)


BKPM – JICA


Strategic area and its future prospective

Prospective in tourism sector is depend to the competitive attractions, which cover various interest of culture, nature, agriculture, adventure, retreat or marine tourism.

For particular segment of interest, location, infrastructure and local communities become important consideration (retirement, agrotourism).

Bangli: The tourism attractiveness is mainly oriented to the culture nature and agriculture, marine resources condition is not quite special.

The prospective development is agrotourism, Bangli (Kintamani), which lies over 800 m above sea local level is world recognized from its Bali coffee, a combination of interactive agriculture life and nature attraction could be a competitive concept.

Tabanan : Prominent tourism attraction in the region is culture, nature (Tanah Lot) and agriculture. Rural life retirement is proposed as prospective tourism concept by accommodating interactive rural life, blend with local cultural attraction.

Nusa Penida (Klungkung) : Marine is the most noticeable segment of interest. Marina is other prospective development, since there are no adequate marine facilities in Bali. Considering large development of sailing interest in Malaysia, Singapore, Thailand, Kinabalu and Australia are progressing. And number of sailing tourist is willing to visit Bali and Nusa Tenggara.

Jembrana : With its famous West Bali National Park, Nature base ecotourism is potential to develop in forest and marine habitat in Jembrana. The development should be made at a minimum artificial building development in the buffer zone areas.


BKPM – JICA


Limitation in Infrastructure

• Larger economic development and its infrastructure in Bali is concentrated in the southern area (Agriculture, industry).

With the limitation capacity of Benoa Harbor as the main cargo (and passenger) port of Bali, dependency to land transportation networks and Ferry access are growing. Large number of product has to carry by land to Surabaya for export, with a higher extra cost and risks.

Access to Ferry terminal (Gilimanuk) itself is unappropriate for 40 feet container carrier.

The present other port in Celukan Bawang in the North, having less facilities and capacity, currently operates mostly for unloading basic consumption and construction material.

With expectation to make a more balance of development, Celukan Bawang port is projected by Government in their structure plan, for future main cargo terminal of Bali, replacing Benoa which will focused for future tourism and fishing port.

This concept is not facilitated by proper road access, considering that largest volume of production came from industries in Southern area. Currently the access road to the north use by more passenger vehicles with a narrow and curling 2 lane, over 1000 m elevation crossing the mountain range.

• The Ferry port in Gilimanuk serve for huge volume of Java – Bali transportation and export cargo to Surabaya, and Padang Bai operates more for passenger and consumption goods to Nusa Tenggara. During peak season, both terminal are beyond its capacity to accommodate a larger volume of passenger and cargo.

• Electricity supplies by local power plants and Java Bali interconnection, the peak consumption in 2005 is getting close to the production capacity, make more power is required to accommodate the intensive growth of industry, tourism and commercial in the future.

• City water supply.

Not all Bali provided with adequate raw water supply. The present city water only cover less than half Bali consumption, and area concentrated in region where raw water from river and spring are available.

The idea of distributing development (tourism, industry) to non fertile ground may not effective, without consideration that there is close relationship between land fertility and water availability.

V. CONSTRAINTS IN INVESTMENT CLIMATE

Local flower seller at a traditional market. Flower is an important thing for Bali people as they use it in various ceremonies


BKPM – JICA


Limitation in Industrial Development

• Total area of Bali covers around 5,632 km2, for a total 3.4 million population, where more than 60% of areas are marginal for agriculture and use as forest reserve.

Most of household engaged with agriculture, and remain a limited area available for other utilization (house property, tourism, industry).

Land price is relatively high, drive by large number of area acquisite for Hotel and Resort. The local people image of luxury has increase the price of land.

• Bali with its limited resources, depend its raw material supplies from other province. Wood as major material use for Building and handicraft product are send from Java, even simple raw material for ritual consumption (coconut leaves – janur) now send from East Java.

• Bali has high calibre of craft people and talented labor for art works and hospitality industries, but less capacity for construction work and manufacturing industries.

High labor cost in Bali, some time is in consistence with its productivity. Work days per year relatively are lower than standard by so many holidays for rituals.

Agriculture labor or smallholder also weakens its technical capacity, resulting from lack of extension provided by local government after decentralization.

Limitation in Legal Aspect

• Low transparency occurred in many regulation prepared by Local Government or sectoral, this condition make a more unclear policy and implementation procedure, guided to a position of wait and see for most of investor. The inconsistencies also appear from lack of sectoral coordination at central level or between central and region.

- Investment approval procedure, less coordination between central and region, most cases appear in land allocation.

- Tariff and tax regulation, which sometime are inconsistence with its policy between trading, industry and sectoral ministry and confusing business community.

- Lack of dissemination and socialization make a bias in implementation in the regional level by mis interpretation of local officer.

• Indonesian labor law provides overprotection to labor without positive concern to the productivity. Meanwhile Indonesian labor productivity compare to its wage scale is behind the labor performance in India, China, and Vietnam.

This labor law creates many occasion for corruption and manipulation by government official or third parties particularly if dealing with forced termination (PHK).

• Local regulation on regional minimum wage sometime is highly change and increase untransparently in its legal process. This condition makes difficulties for investor in making long term planning.

• Inconsistence in law enforcement, make more people against regulation


BKPM – JICA


Limitation in Immigration Service

• Unclear process in immigration permit which not practical has developed confusion.

For example: Buyer with its visa on arrival is considered as illegal if they involve in consultation or training activities during stay in the country although these are a normal practice in global trading.

• There are difficulties of investor in developing business in the region as they are requested to apply for permanent or long term resident to furnish all business arrangement. It is weird since global investment doing business in many countries.

• There are also difficulties in applying immigration for sailing or yachting tourism, its application for the crews and passenger is different with the ship, also its visa period of both are different.

Limitation in Banking and Data Base/ Information Service

• Other than a high Bank interest rate for investment, there are also unwritten negative list in credit provision for particular sector although in business those sector is promising ie. Fisheries.

Regional Bank Indonesia introduce Fisheries business as prospective in their study, but many Bank hesitate to provide credit to the sector due to those negative list circulation.

• There are still less information disseminated concerning industrial development and investment opportunities which oriented to market, demand and competitiveness. Most of study prepare by the government (regional) is supply basis without consideration of its supply competitiveness with other region and its market potential.

Incentive for Investment

• There are limited incentives provides by Local or Provincial government, to make more competitive in attracting investor in particular sector. The incentive only limited to political support, which could not compensate the other extra cost, appeared from local retribution, bribes, and labor law cost.

Local Retribution

• Decentralization has initiated local government to increase their income from PAD, mostly drives by high absorption for routine budget. Although by political statement some Local Government has more oriented to production (GRDP), but local retribution is still appears in many model.

Coordination and Bureaucracy System

• Lack coordination is mostly appearing from low transparency in developing decision, regulation and policy. Some decision or regulation may contra productive in particular sector.

Stakeholder should involve in decision-making process, to make a more comprehensive, effective and applicable implementation with positive support from stakeholder.

Notes and Recommendation

• More consideration are requested from local government and legislative to support in maintaining Bali sustainable resource (Agriculture and Fisheries).


BKPM – JICA


• Provincial and local government should facilitate mutual cooperation between investment and smallholder or landowners particularly for development of agriculture, handicraft and Tourism.

• More participation with stakeholder should be encouraged in development the sectoral strategy and policy ie. Structural plan (RTRW) of Bali, Toll road development across Sarangan etc.

• Strengthen the extension service for local farmer fishers and smallholder from Provincial Government to improve the product competitiveness and raised household income.

• More actual database should be provided by government by government to public or investor about landuse allocation for industries, agriculture and tourism.


BKPM – JICA


6.1. Prospective Commodities Analysis

The analysis are taken various existing commodities in the province, particularly exported commodities or other high demanding products.

See next page, Table 6.1. Prospective Analysis of Industrial Product/Commodities for Investment in Bali.

VI. PROPOSAL OF PROSPECTIVE PROJECTS


BKPM – JICA


Table 6.1: Prospective Commodities Analysis of Industrial Products/Commodities Prospect for Investment in Bali

Market Sector/ Industrial Product Commodities / Location National Competitiveness Opportunities and Limitation Market Segment Supply and Demand Prospective Chance Remarks

Agriculture :

Horticulture • Organic vegetable and fruit in fresh frozen or dried container

• Primary product Location : • Bedugul, Tabanan • Bangli

• Remain as 6 the rank in national horticulture (2003) products

• Only small areas of Indonesia horticultures managed organically

+ High growing consumption drive by health awareness in developed countries

+ Suitable fertile volcano soil in central Bali

+ Subak as strong traditional farmer organization

- Need attitude improvement of farmer for organic culture

- Weak government support for extension and certification

- Not all foreign buyer assured local certification

• Export to Singapore, Japan, Taiwan, Australia

• World consumer demand for organic food, increase annually by 5-10%

• Foreign buyer/and consumer is assured by their local certification

• Number of area under organic farming is increasing but certification remain as constraint of trade between developed and developing countries

• Prospective commodities for small to medium enterprise through partner ship with Subak

• Bali has direct air freight to world consumer, which will be benefit for perishable commodities trade

• Government to support extension to the farmer for organic farming technology

• No Government support to facilitate certification. The present institution is Biocert established by NGO to assist international certification for export products

Horticulture cosmetical herbs

• Natural cosmetics and toiletries • Secondary product Location : • Badung • Denpasar

• Indonesia has significant raw export volume to the world cosmetics and toiletries

• Low contribution of Bali to national raw herbal for medicine and cosmetics, but has strong traditional reference in cosmetics and toiletries making

• Indonesia is the most rich tropical biodiversity in the world

+ Bali traditional spa and body care is recognized by international tourism

+ Bali has traditional heritage in body and beauty care

+ Bali has global brand image - Quality and safety assurance for

export consumption should be established (Fitocosmetical product)

• Export to Europe. Singapore, Japan and Middle East

• Domestic market upper class

• Increasing demand for natural cosmetics and toiletries drives from health consciousness and interest for better appearance

• Leading world cosmetic industries has adopt traditional herbs ingredient for their natural cosmetic products

• Certain products of cosmetics particularly bath and spas made by foreign smallholder and Bali home industries have entering international market (Europe and Japan)

• Prospective commodities for small to medium enterprise with cooperation to raw material local vender

• Government to facilitate the industries with access to clinical test (central research of traditional medicines – Surabaya) This is required concerning safety assurance, which mostly requested by foreign consumer.

Plantation • Processed/fermented cacao or cacao cake

• Processed primary products Location : • Tabanan • Gianyar

• Bali cacao plantation area are low and not competitive to other leading producer (Southeast, central, and south Sulawesi, East Java and North Sumatra)

• Cacao not include in 10 major export commodities of Bali

+ High world demand of fermented cacao, while Indonesia produces low quality cacao beans for export

- Low farmer productivity per ha cacao smallholder

- Weak post harvest technology of most farmers

- Weak government support in extension to the farmer

- Planting area are very small

• Export to Japan and Europe

• Although world demand are increasing the supply are considerably short

• Indonesia supply of cacao beans are decreasing and prices are degraded due to low quality products

• Vietnam improving its cacao competitiveness over Indonesia in world market

• Less prospective as Indonesia priority is oriented more to rehabilitate the major cacao production centre; Sulawesi, North Sumatra, East Kalimantan and East Java

Plantation • Vanilla in dry or powder • Processed primary

product Location : • Tabanan • Gianyar

• Although include in 10 major export commodities of Bali, its mostly collected from the planting areas in NTB and NTT with relatively small areas in Bali

• Not competitive compare to North and South Sulawesi, West Java, Lampung, NTT and NTB.

- Planting area are very small by limited land availability

- Mostly produces primary products for export

- Low farmer productivity - Low extension support from

government

• Export • Bali vanilla export contribute only 26 % from total Indonesia vanilla export

• Less prospective due to only small plantation in Bali (un-competitive in national scale)

Plantation (Organic Bali coffee)

• Arabica coffee (Bali Special coffee) produces in gourmet

coffee (powder) or roasted beans Location : • Kintamani (Bangli)

• Production area of Arabica Bali coffee is low, but this special coffee holds international brand names like other Indonesia Arabica coffees : Java, Toraja, Crayo coffee

• Indonesia coffee productivity at farm level is low, almost half than average Vietnam production/ ha of Robusta

+ Bali coffee as world recognize special coffee

+ Patented by Cierad (Frances) as original coffee rows in Kintamani

+ Arabica coffee has higher value (2 to 3 times) than Robusta and more stable world demand

- Farmer prefers ‘quick yielder’ Robusta than a more care of ‘high value’ Arabica

- Weak extension by government after decentralization

- Around 16% of Arabica converted to a cheaper Robusta by in the last 5 years

• Export to America, Europe, Japan

• Indonesia robusta coffee is dropped by quantity and value as Vietnam taken over asia supply domination

• Indonesia recognized by special Arabica coffee in world market while Vietnam doesn’t product Arabica

• World demand of coffee increasing particularly in Japan and new anthusiasts of European and China consumer

• Prospective project by revive and rehabilitate world brand of Bali coffee

• Produces with mutual cooperation with local abian Subak

• Require government support to strengthen Subak organization and facilitate its cooperation with investor

• Need technical assistance in organic management for Arabica coffee plantation

Fisheries : (Aquaculture)

Seaweeds (Lower value marina aquaculture)

• Seaweed powder or caragenan gel

• Seaweed export from Bali are collected from Bali and surrounding with major volume from West and East Nusa Tenggara

• Cultivation area in Bali is very

+ Less area cultivation in Bali but larger production can be collected from Nusatenggara

- Seaweed inter island trade is controlled by several buyer makes quota and prices are highly

• Exported or transferred to Surabaya as main processing centre

• Large volume of supply but low export volume

• World demand are in creasing but supplies also extending

• Less prospective due to low competitiveness compare to Surabaya as central buyer an processing industries


BKPM – JICA



Location : • Nagara (Jembrana) • Amlapura (Karangasem) • Nusa Lembongan (Klungkung)

small compare to national production centre in West/East Nusa Tenggara, South Kalimantan

• Surabaya absorb all Bali and Nusa Tenggara raw seaweed for further processing product

fluctuated - Low market value and less

technological requirement makes the competitiveness very low

Higher value marina aquaculture

• Groupers in live Container Location : • Buleleng • Nusa Penida/ Nusa Lembongan (Klungkung)

• Gondol in Buleleng is National Central Research Station as production center of seeds or fries of Grouper (C. Altivelis, Ephinephelus spp)

• The fries are distributed national wide for floating wide for floating cage or pond growing into economic (size)

+ The high prices commodities and continue demands

+ Less regional competitive from Thailand, China or Vietnam

+ Gondol has the technology better than Thailand and China

+ Less protected pristine area available in Bali, but more area in East and West Nusa Tenggara

- Intense care and high environmental concern to obtain good quality products. Need technical assistance to the farmer

• Direct export to China, Taiwan, Singapore

• Large and continues demand in China, Taiwan and recently growing to Japan

• Lower supply due to technological constraint and mostly grows in tropical water

• High prospective project due to less and less capture potential in either coastal and ocean fishing ground surrounding Bali

• Can developed in harmony with Tourism (Agro Tourism)

• Need technical assistance and extension to the farmer

• Avoid fries export to protect uncompetitive local farmer


• Crabs and Abalone in canning or vacuum container

Location : • Negara (Jembrana) • Buleleng

• No recent development in Bali but successful in West Kalimantan, East Java, Sumbawa for Crab

• Can use the abandoned brackish pond by converting into marina pond for fattening

+ The high prices commodities and continue demands

+ Large coastal areas makes Indonesia more competitive than Thailand or other regional countries

+ Numbers of fattening pond available in Bali and West Nusa Tenggara

+ Raw fishes for feed (crabs) are more expensive in Bali than Nusa Tenggara.

• Direct export to America, Japan and Europe

• Demand are increasing in North America, Japan, Europe and China

• Major exporter are India, Thailand, Indonesia.

• Thailand has the technology to bread Abalone

• Prospective project due to more fisher substitute their activity to marina aquaculture from high fuel price and degrading sustainable potential resource in fishing

• Use fattening small holder as supply vendor with technical assistance support

• Need technical assistance and strengthen farming organization for better production


• Pearl culture Location : • Buleleng

• Limited suitable marina area in Bali for pearl culture compare to West and East Nusa Tenggara

+ High priced commodity for export and domestic market

- Less technology own by Balinese farmer compare to Lombok and Nusa Tenggara

- Bali has direct access ti international market

• Export and domestic • Japan holds the technology for high quality pearls product

• Mid class export and domestic demand can be supplied with local pearls culture technology

• World demand of pearls and jewelry are increasing drives by interest of better appearance in moderate to higher income group

• Less prospective by low competitive to Nusa Tenggara

Tourism : Agro tourism • Agro tourism in organic Coffee plantation • Ecotourism Location : • Kintamani (Bangli)

• Organic coffee plantation is a rare national agricultural practices

• Subak as unique farmer organization in sustaining agricultural life in Bali

+ As original interactive attraction in Bali agricultural life combine with ecotourism, in a mountainous setting

+ Bali coffee as original Balinese special coffee renown in world consumer

- Degradation of Subak by commercialization and low cultural interest of tourism

- Decreasing potential cultural demand of tourists from America, Europe, Japan

• Foreign Tourism (Europe, America and Japan) and higher class domestic

• No original agro tourism are available in Bali most interactive attraction are artificial

• Dominant leisure/pleasure to attracts Australian and less cultural Balinese Icon are exposed

• Eclectism trends in spa resort are more dominant than agro tourism or other Bali original attractiveness

• Prospective project to open different horizon in sustaining original and special Bali agricultural life

• Need new market target of foreign tourism from Eastern Europe, India and China

Retirement Stays

• Rural life retirement tourism • Health refreshment retirement in

Batur Location : • Tanah Lot (Tabanan)

• Peaces full, color and rhythm of rural Balinese is an attractive escape for retirement

• Also spiritual and physical rejuvenation of Balinese tradition is another retirement interest

+ Locations is away from urban crowd and hustle bustle

+ Low crime and peaceful environment is the best Bali attractiveness for older group tourist.

+ As high spending group on cultural interests

- Access to emergency hospital may not easy

- Preliminary in house heats control and maintenance is required

• Foreign tourism from Japan, Europe including America

• Already & tourism operator manage this tourism segment

• More demand will coming as more immigration flexibility are implemented

• Prospective project development

• Need more flexibility in irrigation application for retirement segment market

Marina tourism • Marina (berths with Supporting facilities) and amenities; commercials, shops, restaurants and clubs

• Marina tourism resort

• Numbers of marina for international sailing were growing in Thailand, Malaysia, Sabah and Australia

• No adequate and interesting

+ Large number of request to soil to Indonesia (Europe, Australia)

+ Most visitor to Thailand and Malaysia has interest to continue sailing to Indonesia

• Foreign sailing tourism from Europe, Singapore, Thailand, Malaysia and Australia

• The present Benoa marina club has limited capacity to accept number of sailing request to visit Bali

• Most of sailing route links Benoa,

• Prospective project development for a longer term project and higher scale capitals

• May or may not generate

• Proposed location should be carefully studied in technical terms

• Oriented to larger scale of investment


BKPM – JICA



Location : • Benoa (Denpasar) • Nusa Penida (Klungkung)

marina in Indonesia, though locates in cross road

• High competitiveness of Indonesia from its thousand tropical islands

- Difficulties in immigration permits for longer period of sailing

- Threat of security condition along Malaka and Karimata straits

Sumbawa, Komodo, and sometimes Maluku/Irian

• The available marina in Ancol/Jakarta is not appropriate for international sailing

• World demand correlate with ship or boat industries are increasing drives by increasing income and life style

impact to the environment, depend to the operational management

Handicraft industries :

Silver handicraft

• Silver jewelry Location : • Ubud (Gianyar) • Gianyar

• Bali and Yogya are national leading silver industries particularly jewelry

• Bali is has direct access to world jewelry consumer/market

+ Supported by high capacity of silver craftsman

+ Bali quality silver jewel marker is considered as the highest in the country

+ Bali has global brand images - Raw materials prices are increasing - Double tax case implemented either

to raw or crafted products

• Export market and higher class of domestic tourist

• Demand both for world and domestic are increase drives from interest of better appearance for higher income group

• Product competitor of quality silver craft and jewelry is India

• Bali silver jewelry has enter world boutique market

• Prospective project to enter lower/non boutique consumer (up permit class consumer0

• Need technical assistance to make product competitive in world market, by design innovation and quality craftwork

Textiles handicraft

• Clothing and accessories with embroidery and lace

Location : • Badung • Tabanan

• Quality craft manship which may equal with other Indonesia textile craft people, but Bali has better position as show window of craftsman products to international market

+ Handicraft product has world market competitive for higher class segment than China machinal products

- Machine can copy handmade product, consequences to produce more design innovation

- Textile handicraft is the largest export contributor from total Bali handicraft industries

• Export market and higher class domestic

• Demand continue growing particularly for upper class consumer in Japan, America and Europe

• Philippines, India is other competitor in textile handicraft

• Prospective project to sustain Bali textile handicraft industries

• Need technical assistance for developing design innovation to follow consumer trends

Wooden and mixed material handicraft industry (wood, metal and non metal)

• Home accessories Interior decoration and functional Location : • Badung • Gianyar

• Bali wooden handicraft is the leading industry in Indonesia beside Yogyakarta/Jepara

• Raw wood from Java, Kalimantan and Sulawesi become more difficult by excessive logging

+ This handicraft industry is not directly influenced by security problem

+ Competitive demand are growing for handmade quality product at upper level world consumer

- Bali craft manship is high but productivity is low

- Design innovation following consumer trends is required

- Threat to the sustainability of wood raw materials

• Exported to America, Europe, Australia or upper class domestic market

• Significant Bali export value of wooden and mixed material handicraft

• Growing world demand (North America, Europe) for handmade home accessories driven bi increasing consumption capacity of consumer

• Already several industries under PMA, were exporting the products to major international outlets

• Indonesia contribution in world handicraft product (wooden table and kitchen ware) remain low only 3.6% China, Thailand contributes much larger portion

• Prospective project to increase Indonesia export contribution to the world market

• Need technical assistance in providing design innovation, material technology and product quality for export competitiveness

Ceramics handicraft industries

• Tableware and Kitchenware • Home accessories Decoration or

functional Location : • Badung • Karang asem

• Raw material for ceramic is not available in Bali, should obtained from other provinces

• As new introduced material to handicraft industries but have significant gain in its export value

• Faster growing experience in modern ceramic making, compare to Yogyakarta

+ Growing experience in modern ceramic arts, supported by foreign experts

+ Growing Balinese identity in ceramic craft industries as new Brand image

- Raw materials has to be transferred from other region

- New design innovation to suit the consumer demand is required time to time

• Exported to Europe, America, Japan

• Contribute significant export value as initial introduced craft product

• Growing demands in developed countries for handmade quality table ware and kitchen ware ceramics and home accessories

• Prospective project to develop the disparities product of Bali handicraft industries

• Need to establish craft skill in modern ceramic making and more experiences in developing design innovation including improvement of quality

*) Investment infrastructure sector and services are excluded in the analysis, due to some unsettle sectoral regulation


BKPM – JICA


6.2. Highlighted Project Profiles

The project Profile of prospected commodities are explained base to present competitive condition from its production, export and consumption including market trends (World and National) and competitor. The highlighted prospective projects are : - Organic Arabica Coffee, Bali Coffee - Organic Vegetable - Village for Facilitated Retirement Tourists. - Agro Tourism in Coffee Plantation - Garment Handicraft Industry - Silver Ornaments Handicraft - Integrated Marina Resort

6.2.1. Organic Arabica Coffee, Bali Coffee

Background

• With the drop of quality and productivity, Indonesia as the leading coffee producer in Asia has shrunk its export from 386,500 ton in 1996 to 327,300 ton in 2004. In the same period Vietnam was jumping into the 3 rd world producer Robusta from 226,700 ton in 1996 to 891,500 ton in 2004. Not like Vietnam, Indonesia also produce Arabica coffee from its highland plantation. Although the production volume less than Robusta Indonesia Arabica coffees are recognized in international special coffee market. Indonesia branded Arabica coffees are; Bali coffee, Java coffee, Toraja coffee, Gayo coffee and Mandailing coffee. Baliem coffee from Papua is another new introduced special coffee to the world market.

• Arabica coffee has much higher value (almost 2-3 times) than Robusta, but Indonesia only produce 5 – 10% from total coffee production. Arabica coffee only suitable to grow in highland (over 800 m elevation), its require intensive care and has a longer yield period, which may not interesting to average farmer.

• Bali coffee has been patented as original Arabica coffee from Kintamani, as appraised by French researches (Cierad) 2003. Despite of its branded high value product, more Arabica coffee planting area in Bali was reducing by 16.10% in the last 5 years.

• Demand for organic food/coffee are increasing in developed countries, with its market process almost double than the non organic products. Subak abian is local farmer organization which can adopt this organic management through its local wisdom and believe.

Propose Location and Business Model

• Proposed project of organic Arabica coffee will be located in Kintamani Kab. Buleleng at elevation 900 to 1,000 m above sea level. The initial project will cover around 50 Ha of coffee Bali smallholder to be upgrade to organic farming. In the future the area will expand according to local interest. Around 6 Ha will be required for nursery and demonstration area.

• The business model could be developed through mutual cooperation (Kemitraan) with local coffee farmer or smallholder, which organizes under Subak Abian. Investor will provide technical assistance and arrangement for certification. Smallholders sell the raw product at agreed standard price for further processing and packaging by investor under their brand name.


BKPM – JICA


• The end product of coffee is a good quality roasted coffee and powder as a gourmet coffee, packing in attractive container to be sell in outlets or coffee station.

• Major Cost Factor of Coffee Plantation Investment :

No Cost Factor Description

I Basic Investment

1 Land Cost: Land price for locating nursery and office building ranges between Rp 40,000 – Rp.70,000/ sqm.

The alternative is rent the land with a long term renting. There will be an advantage if investor can find government owned land like. So far, renting cost for agricultural is about Rp 2-3 millions/ha/year.

2 Road improvement Cost Total Farm road improvement cost to connect farm and main road ranges between Rp.0.3 – 0.5 mill/ m2.

3 Building construction cost

By utilize available local material for building factory and storage is around Rp.2.5 to 3.5 mill/ m2 including utility installation cost (electricity & water).

• NB: Labor wage ranges Rp 45,000–50,000/day for construction labor

II Production Cost

4 Total Production Cost:

Total production cost including land preparation, seedling, equipment, labor, processing, handling, plantation maintenance, and reduction cost is around Rp 6,500,000.- - 7,000,000 per hectare

• NB: Labor wage ranges Rp.30,000 – 35,000 per day for agriculture labor.

• Reduction cost ranges between 400,000 – 500,000 III Transportation Cost

5 Transportation cost Bali’s product should pass through Surabaya for export. Indonesia export only has two types of containers: 20’ and 40’ container. Most of shipping uses 20’ container.

Quoted on August 2005, the transportation cost to various destination is as follows:

Packing: 20’ container (30 cubic meters) can hold 30 crates with 1 cubic meter size each. Each crate cost roughly US$ 10 - 12.

Trucking: Trucking container to Surabaya (charged by cargo company) is estimated US$ 570 – 600 for 20’ container.

Documentation: Mostly consist of Bill of loading and document delivery cost, estimated at US& 80


BKPM – JICA



Shipping: Shipping cost from Surabaya is vary, depend on destination country, for example:

- To Singapore will cost around US$ 331 - To Oklahoma (USA) around US$ 3,500

IV Other

Local Productivity For organic coffee plantation, the average productivity of mature plantation is around Rp. 800,000 – 900,000 kg/ha

V Certification cost

6 Certification

Note: Certification example from European economic community.

- Inspection : EUR 650.- per day - Preparation,Writing of Inspection report: EUR

650.- per day - Traveling Time: EUR 650.- per day - Certification (Incl. 1 certificate): EUR 95.- per

hour - Additional Certificates: EUR 42.- per

certificate - Import Authorization: EUR 172.- per

document - Other services: EUR 84.- per hour - Residue Analysis : Actual cost for testing

soil/plant/product - Additional Expenses: Actual cost for journey,

accomodation, food

• Total transportation cost for 20 feet container from Denpasar to Asian country destination through Surabaya (Tanjung Perak port) is estimated as: US$ 800 – US$ 1,000 including handling fee, packaging and export document.

Competitiveness

• The average smallholder coffee productivity in Indonesia is ranging between 0.600 to 0.750 ton/Ha, this is consider much lower than Vietnam average productivity at 1.5 to 1.6 ton per Ha. Indonesia Robusta quality also drops by lack of extension provided by local government after decentralization. Most of coffee plantation in Bali, is run by smallholder (94.14%) only small area operate by private company.

Table 6.2: Coffee Plantation Area in Indonesia and Bali 2001 – 2004

Smallholder (ha)

Private Estates (ha)

Total Area (ha)

Change (%)

Year

Indonesia Bali Indonesia Bali Indonesia Bali Indonesia Bali 1999 1,655,050 39,850 72,200 90 1,127,250 39,950 - - 2000 1,191,180 40,310 69,500 90 1,260,680 40,400 0.118 0.011 2001 1,245,150 42,000 68,200 90 1,313,350 42,000 0.042 0.040 2002 1,318,100 36,710 54,000 90 1,372,200 36,800 0.045 -0.124 2003 1,327,700 36,275 54,000 75 1,381,700 36,350 0.007 -0.012 2004 1,338,600 36,230 53,500 70 1,392,100 36,300 0.008 -0.001

Source: BPS Bali 2004, Statistical Crops of Indonesia 2001-2003, DG Bina Produksi. Agricultural Statistic 2004, Min. of Agriculture. Compiled by MCI 2004


BKPM – JICA


• Intensive technical assistance and extension will able to increase the Arabica coffee productivity and quality of its products, under organic management in Kintamani. Bali coffee will revitalize its selling value in most developed countries (US, Germany and other Europe, Japan) by various reason : - Bali global selling image. - Patented Bali coffee as original coffee Kintamani. - Bali coffee produces in organic cultivation management.

Table 6.3. Coffee Production in Indonesia and Bali (1999 – 2004) Indonesia

(Ton) Bali

(Ton) Average Productivity

(Ton/Ha)

Year Robusta Arabica Robusta Arabica Robusta Arabica

1999 504,067 27,620 16,420 4,860 0.637 0.455 2000 531,148 23,426 17,213 3,768 0.625 0.545 2001 546,163 23,071 13,881 5,824 0.570 0.560 2002 656,903 25,116 15,584 3,768 0.660 0.540 2003 658,850 27,452 16,331 4,412 0.680 0.525 2004 751,532 33,768 15,386 3,696 0.690 0.596

Source : MCI Compilation 2005 from Indonesia Statistical Estate Crops 2004, Bali BPS Data 2004

Table 6.4: Production, Export, Consumption of Coffee in Indonesia (2000 – 2004) Production Export Year

Growth Growth Consumption

2000 554,574 - 337,300 - 217,274 2001 569,234 0.026 249,500 -0.260 319,734 2002 682,019 0.198 325,100 0.303 356,919 2003 686,302 0.006 324,300 -0.002 362,002 2004 785,300 0.144 360,350 0.111 424,950

Source: MCI Compilation (2005) from BPS Bali 2004, International Coffee Organization 2005

Market Opportunities

• Coffee consumption remaining constant in Western Europe but in average increase by massive growth in East Europe by 3%/ year in the latest 4 years. Similar growth also occurred in Japan (3.1%) and North America (2.7%/ years). From the total Indonesia production, only 45–60% of coffee is produces for export, the remaining is use for consumption. Export portion is 60% (year 2000) and reduce to 45% in year 2004 by its quality degradation of overall coffee production.

Table 6.5: Per Capita Consumption Per Year in Europe, USA, Japan and Indonesia (Kg/Capita/Year)

Year Country 2001 2002 2003 2004 Euro 5.01 5.05 5.05 5.17 USA 4.09 3.95 4.25 4.26

Japan 3.27 3.24 3.18 3.34 Indonesia 0.50 0.50 0.55 0.55

Source: Coffee Market Report, International Coffee Organization, November 2005

New average consumer is China, come from more of its younger people drinks more coffee than tea. The world market of Arabica will continues to grow 4.5%/annum as described by ICO.

• Industrialize nations which large number of well educated mid class and increasing in come per capita are the global target market for organic food. It was estimated around 10 – 20% increase in the last year 2004 by value for organic product consumption.


BKPM – JICA


Prices of organic products is higher than non organic, as consequences of consumer to contribute for earth resources sustainability.

Figure 6.1 : World Arabica and Robusta Coffee Price (US Cent per lb)

Colombian(Arabica

Colombian(Arabica

Other Milds107

Other Milds189

Robusta,

Robusta,

0

50

100

150

200

250

1997 1998 1999 2000 2001 2002 2003 2004 2005*

in US Cent

Note: * until November 2005. Source: Coffee Market Report, November 2005. ICO

• World price of Arabica coffee remain strong, although Robusta has drop by Vietnam over supply. The Indonesia competitors for Arabica coffee are Columbia, India, Central America, Brazil and Papua New Guinea.

6.2.2. Organic Vegetable

Background

• Organic agriculture is an ecological production management system in enhancing biodiversity and soil biological cycle to produce food. Not only avoiding synthetic or chemical input to the soil, but also follows a nature process to keep soil and its biological resources sustainable.

• More and more people in developed countries growths its health awareness and committed to earth conservation, drives a strong world demand for organic food product.

• Committed to earth conservation of organic farming management, Subak will be the most available in formal organization to deal with. Subak was practicing over generations its agriculture farming sustainability in their food crops production through local wisdom and believes.

• Although more demand from developed countries are growing for organic foods or product, supplies from developing countries are hindered by international certification (ie. NOS in USA, JAS in Japan). BIOcert is Indonesia NGO, to issue local organic certification.


• Kabupaten Tabanan (Bedugul, Baturiti) and Bangli (Pandokan) are proposed as suitable locations from its fertile volcanic soils and climate. Around 10 Ha land will be required for nursery area and packaging facilities.

• Appropriate business model to avoid large initial investment in land is by mutual cooperation with local farmers are land holders organized by its Subak. Local farmer will cultivate their farm in organic management procedure and sells its product to


BKPM – JICA


investor at agreed prices. Investor provides seeds and technical support and training to the farmer for its product quality acceptance.

• Investor provide final finished of product into various packaging: fresh frozen, dried and vacuum container. Investor also should arrange certification approval, which is more beneficial from the countries of consumer.

• The competitive product of Bali organic vegetable are Broccoli, sweet corn or baby corn, green bean, green spinach, carrots, tomato, paprika etc. which demanding by Singapore, Australia. Special other organic vegetable requited by most Japan consumer are Japan spinach, kokabu, komatsuna, kaboca, kyuri etc.

• Major Cost Factor of Organic Plantation Investment


I Basic Investment

1 Land Cost Land price for locating nursery and office building ranges between Rp 30,000 – Rp.70,000/ sqm

2 Road improvement Cost Total farm road improvement cost to connect farm and main road ranges between Rp.0.3 – 0.5 mill/ m2.


By utilize available local material for building factory and storage is around Rp.2.5 to 3.5-mill/ m2 including utility installation cost (electricity & water).

• NB: Labor wage ranges Rp.45, 000–50,000/day for construction labor

II Production Cost

4 Cultivation Cost:

Note: Production cost depends to technology used in organic management.

Cultivation cost (exclude harvest and post harvest) for organic food crops/vegetable approximately Rp. 900,000 – 1,200,000/ hectare with using 5 - 6 labors. NB: • Including agriculture labor wage for entire activities in

cultivation (wage ranges Rp.30, 000 – 35,000 per day). • Including usage of organic pesticide, seeds, and organic

fertilizer (Compos, liquid organic fertilizer). III Transportation Cost

5 Transportation cost Air cargo is the fastest access and most preferred for perishable high value crops transportation.

Airlines do charge by the kilo, but in addition, also by volume. The final freight rate will be calculated upon whichever is greater, either the volumetric weight or the true gross weight of the item. Roughly, air cargo will cost US$ 3.25 – 3.5 per kilo.

IV Certification cost - Inspection : EUR 650.- per day - Preparation,Writing of Inspection report: EUR

650.- per day - Traveling Time: EUR 650.- per day - Certification (Incl. 1 certificate): EUR 95.- per

hour


BKPM – JICA



6 Certification

Note: Certification example from European economic community.

- Additional Certificates: EUR 42.- per certificate - Import Authorization: EUR 172.- per document - Other services: EUR 84.- per hour - Residue Analysis : Actual cost for testing

soil/plant/product - Additional Expenses: Actual cost for journey,

accomodation, food

Competitiveness and Market Opportunities

• Currently (2005) more than 26 million hectares of farmland are managed by organic farming, around 7.7% increase from previous year. Australia (11.3 mill Ha) and Argentina (2.8 mill Ha) is the largest area prepared to develop organic production mainly for livestock. In Europe more than 5.5 million Ha were managed in organic farming, which correspond to almost 2% from its total agriculture land, in some countries even reach in double digit figures. In Asia the organic farm area extended to around 800,000 Ha, or 0.07% from total agriculture land, with Indonesia figured at 40,000 ha accommodates around 45,000 farmers, a number of 0.09% of its total agriculture area.

Table 6.6 Land Under Organic Management and its Farmers in Asia 2004

Country Organic Hectares % Of Agricultural Area Organic Farms

Azerbaijan 2,540 0.2 285Bangladesh 177,700 100China 301,295*) 0.06 2,910India 37,050 0.03 5,147Indonesia 40.000 0.09 45,000Israel 5,030 0.90 420Japan 5,083 0.09Kazakhstan 36,882 1Korea, South 902 0.05 1,237Laos 150 0.01Lebanon 250 0.07 17Malaysia -Nepal 45 0.001 26Pakistan 2,009 0.08 405Philippines 2,000 0.02 500Russia 5,276 0.003Sri Lanka 15,215 0.65 3,301Syria 74 0.001 1Thailand 3,993 0.02 1,154Ukraine 239,542 0.58 69Vietnam 6,475 0.08 1,022

SUM 881,511 61,595Note: *) Include more than 200,000 Ha in conversion. Source: SOEL Survey, February 2004

• West java (Cianjur, Bogor) and East Java (Malang) is the most farm area and farm household managed organically. Bali is not appear as important organic producer in


BKPM – JICA


Indonesia, but Bali has quite large area having fertile volcanic soil and the most important is its Subak organization, With local rule of Subak in cultivate their agriculture land in sustainable way, Subak is the most appropriate organization to motivate local farmer attitude going organic.

• Drives with higher demand of organic food or product in developed countries, the prices of their commodities also high, almost 2 to 3 times local non organic prices. But organic products need a discipline and committed farmer and accepted certification as assurance to the consumer.

• A closed and active extension is required to support farmers commitment, because organic vegetable production is a relatively higher risk cost per Ha which requires intensive management and capital investment at initial periods. Risk of crops failure is mostly occurred from external factor.

• Consumption in Europe was increasing by 10 – 20% by value in the latest years and North America gained 12% increase of sale in 2004. Although productions of organic crops are increasing across the globe, the world consumers are concentrating in industrial countries like North America, West Europe and Japan. Now the demand also spreading in upper class consumer in other countries like South Korea, Singapore, Malaysia, South Africa and Australia.

• Japan is the most important market for Asia producer, mainly drives by local government target (Min. of Health, Manpower and Welfare) to consume vegetable to 350 gram/day/capita/ of Japan population. South Korea, Singapore, Taiwan, Malaysia also potential buyer although much smaller in numbers.

6.2.3. Village for Facilitated Retirement Tourists

Background

• There are significant growing demand of senior tourists which has retirement facilities, to stay in Bali for a longer time. Although they have various individual motives in general the demands are steers by several reason : - Escape from severe winter in country origin. - Away from pollution and hustle bustle urban pressures. - Enjoy as much as possible original ritual attraction and cultural performances. - Stay in peaceful, colorful and melodic rural environment.

• Facilitated retirement tourism is a new developing segment, mostly ageing people with are healthy (less physical limitation) and wealthy as supports by pension facilities. They are included as higher spending rate tourism, has plenty interest to the culture, tradition and artworks. This segment came from various country origin, mostly Japan, Europe and North America. Usually they have been visited Bali earlier and demanding for go back to stay longer.

The Facilities and Propose Location

• The facilities cover accommodation facilities and other indoor amenities. Accommodation facilities include lodge, for individual or couple, health and spiritual services (clinic and physiotherapy-spa, message, meditation) and restaurants. Other indoor amenities include library and recreation room.

• Outdoor activities could be provided in mutual cooperation with local Banjar, including various interest of interactive attractive : - Experiences in making simple traditional art works (panting, carving, weaving,

pottery) - Experiences in exploring simple art performance (music, dancing etc.)


BKPM – JICA


- Other interactive interest of fishing, simple gardening and interactive with local village attraction (ceremonial, ritual etc).

• The location is in Tabanan near Tanah Lot at a maximum distance of 1 – 1.5 hours drive from Denpasar, appropriate for hospital emergency evacuation. Other location is in Toyabungkah, Batur village (Bangli) with available hot spring for health stimulation. The location is much longer around 3 – 3.5 hours from Denpasar, a longer reach for hospital emergency evacuation. Around 2 – 3 Ha land is required to accommodate maximum 60 lodges, which initially will be developed for 30 – 40 lodges with size between 40 – 60 sqm per lodge.

• Major cost factor of the project :


I Basic Investment

1 Land Cost Land price depends on location, but average of land price in the proposed location is around Rp. 150,000 – Rp. 300,000 per sqm

2 Construction cost of facilities

By utilize available local material for building facility is Rp 3.5 – 4 mill/ m2 including utility installation cost (electricity & water) and finishing.

• NB: Labor wage ranges Rp.45,000–50,000/day for construction labor

II Production Cost

3 Labor wage

Labor wage for tourist service ranges between Rp.40,000 – Rp. 50,000 per day

4 Living cost Living cost per day including accommodation is estimated around US$ 100 to US$ 150 per day including all amenities and attractions. The longer period of stay the lower rate could be spend, minimum stay around 3 month according to immigration common application.

III Transportation Cost

5 Transportation cost (for tourist)

Car rental per day (small car) ranging around Rp. 200,000 – 250,000, larger car Rp. 300,000 – 350,000, four-wheeler rate is slightly higher. Motorcycle rental are rated around Rp. 25,000 – 35,000 per day and public taxi has meter rate at Rp. 4,000 – 5,000 per kilometer depend to the time consuming.

IV Accommodation Rate

Bali accommodation rate: Star hotel rate ranged between US$ 100 – 150, Exclusive Resort around US$ 200 – 300. Other cottage or lodging facility ranges between US$ 50 – 80.

V Attraction Cost

Cultural attraction costing around US$ 10 – 20 per package.


BKPM – JICA


Competitiveness and Market Condition

• It is estimated around 700 – 1,000 retirement tourist stays in Bali in year 2004 an increase from around 300 person applied or renewal their visa in 2003 to stay longer in Bali. Compare with Malaysia (Penang), there are more than 2000 facilitated retirement tourist stays for longer term mostly from Singapore, Taiwan and Europe.

• Currently around 8 tourist operators in Bali are specializing to provide service for retirement. The service includes arrangement of visa and contracted houses or hotel for a longer stay. The preconditions are each individual should have a cash guarantee and insurance according to length of stay and a local contact guarantee for any emergency condition.

Table 6.7: Number of Tourist Arrival from major Countries (2001 – 2004) Country Original 2001 2002 2003 2004 Growth after Kuta blast

Europe 430,214 392,214 196,789 316,419 Dropped by 49.83% (2003) but rebound by 60.79% (2004) America 97,828 76,076 42,087 67,566 Dropped by 44.68% (2003) but rebound by 60.54% (2004) Japan 296,282 301,427 143,474 325,849 Dropped by 52.40% (2003) but rebound by 127% (2004) Australia 238,857 183,390 107,386 267,338 Dropped by 41.40% (2003) but rebound by 148% (2004) Asia 253,913 289,262 252,005 435,640 Dropped by 12.80% (2003) but rebound by 72% (2004) Others 39,680 43,473 28,834 59,379 Dropped by 33.60% (2003) but rebound by 105% (2004) Total 1,356,774 1,285,842 770,575 1,472,191 Dropped by 40% (2003) but rebound by 91% (2004) Average growth 4.06% (2000 – 2004) Source: BPS Bali 2005; Corrected by MCI (2005)

• The potential target of this segment is tourists from Europe and Japan with a small from North America and also Australia although they has number tourists stays more than 3 month of a younger ages. The estimated demand per year is around 22% from total number of tourist from Europe, Japan, America and Australia at age 50 to over than 64 years old.

Table 6.8: Average age Composition and Origin Countries of Tourism Visited Bali (2004)

Young Adulthood Aged group Country OriginUnder 14 14 – 64*) Over 64

Europe 0.60% 10.17% 0.54% America 0.36% 4.41% 0.33% Japan 0.65% 18.34% 0.80% Australia Oceania 1.80% 18.26% 0.59% Asia 1.87% 25.66% 0.71% Others 0.56% 13.24% 1.04% TOTAL 5.84% 90.08% 4.01% Source; BPS Bali (2005)

*) Estimated 20% from adulthood is include as senior citizen

• The regional competitor for long term stays of facilitated retirement tourists is Malaysia (Penang), Pacific Islands (include Hawaii) and Thailand. But Pacific Islands has more expensive living cost and mostly oriented to North America consumer. Number of tourism rebound will also occurred after the second blast terror, considering that people aware that this could happen anywhere anytime, also there is almost no


BKPM – JICA


duplication of Bali to visit, means that not necessary for Bali to sell a low interest value just to attract more people to come.

6.2.4. Agro Tourism in Organic Coffee Plantation

Background

• Agriculture is the base of Balinese culture and tradition, it was reflecting in daily life of ritual ceremonies and its community activities (Banjar, Subak).

• There are number of agriculture land was converted to use for other utilization particularly for properties and tourism, in the same time Agriculture product performance were degraded by more competition with other sector, as Agriculture could not provide adequate income for household. Organic coffee plantation is one of many proposals to revive Bali coffee branding in the world market to improve a better farmer income.

• Agro tourism as expansion of ecotourism, encourage more tourists interact in agriculture experience at first hand. With strong participation of farmer community in maintaining sustainable agriculture, tourist will benefit a direct involved experience in a real traditional agriculture live not artificial or ornamental. Currently some development of resort are labeled with agro tourism, but less direct interactive experience in agriculture live are offered, only a scenic of agriculture being the background of its luxurious accommodation.

• Agro tourism has less consuming land not like other leisure concept, as it was blended within local farmer or smallholders, and makes synergy with farmer communities as landholders.


• The propose location is in Kintamani, in the organic coffee plantation of coffee Bali at elevation around 900 m above sea level.

• The major attraction is direct experience in its agriculture and farming activities to grow an organic quality of coffee Bali and also involved in its community cultural live. The activities include maintaining the crops in organic way, harvest the products and processing the yield also tasting the quality brand of coffee Bali.

• There are around 30 units lodge as farmer house will be merge in the plantation separated from processing facilities, plus a central accommodation facilities (restaurant and coffee house, library and product exhibition including souvenir shop) for tourists. Around a total of 2 Ha of area will be requires to accommodate those facilities including parking areas away from the compound. All utilities will be natural (water from spring with a possibility of not using electricity).

• The investor should develop a mutual cooperation with the plantation which will further arrange all attractions with its local Subak abian.


BKPM – JICA


• The major cost factor in this project are :


I Basic Investment

1 Land Cost Land price in the proposed location is around Rp.40, 000 – Rp.70, 000/sqm. The alternative is rent the land with a long term renting. There will be an advantage if investor can find government owned land like. So far, renting cost for agricultural is about Rp. 3-4 millions/ha/year, but for agro tourism purposes it could be higher and reach Rp 5-6 million.ha/year.

2 Road improvement Cost Total farm road improvement cost to connect farm and main road ranges between Rp.0.3 – 0.5 mill/ m2.

3 Agro-tourism facility construction cost

By utilize available local material for building agro tourism facility is Rp 3.5 – 4mill/ m2 including utility installation cost (electricity & water).


II Production Cost

4 Labor wage Labor wage for tourist service ranges between Rp.40, 000 – Rp. 50,000 per day

III Accommodation Rate

Star hotel rate ranged between US$ 100 – 150, Exclusive Resort around US$ 200 – 300. Other cottage or lodging facility ranges between US$ 50 – 80.

IV Attraction Cost

5 Cultural attraction costing around US$ 10 – 20 per package.


• Agro tourism in Bali and Java has significantly growing in the last decade, although there are very limited a real concept agro tourism over explored in the existing facilities. The demand of this segment mostly covers a more educated people with large curiosity to tropical agriculture and its way of life or particular crops or commodities. Larger market segment is family or couple of foreign tourists or upper class domestic and in some contents also for retirement.

• There are many similar attraction with different concept and usually developed in a smaller and compact size, with various attraction of paddi fields or tea plantation in Asia or grape yard and cattle farm in subtropical countries. Bali coffee as prime branding of Arabica coffee has different selling value considering that many of tourism arrival in Bali also coffee drinker.

• Compare with other leisure and recreation theme, agro tourism including also Nature or Ecotourism has potential to promote more tourists to stay longer. Base to survey done to various tourist from different country origin, the length of stay is differ from their tour planning and realization.


BKPM – JICA


Table 6.9. Number of Foreign Tourism to Bali (2001 - 2004) Country Original 2001 2002 2003 2004 Growth after Kuta blast

Europe 430,214 392,214 196,789 316,419 Dropped by 49.83% (2003) but rebound by 60.79% (2004) America 97,828 76,076 42,087 67,566 Dropped by 44.68% (2003) but rebound by 60.54% (2004) Japan 296,282 301,427 143,474 325,849 Dropped by 52.40% (2003) but rebound by 127% (2004) Australia 238,857 183,390 107,386 267,338 Dropped by 41.40% (2003) but rebound by 148% (2004) Asia 253,913 289,262 252,005 435,640 Dropped by 12.80% (2003) but rebound by 72% (2004) Others 39,680 43,473 28,834 59,379 Dropped by 33.60% (2003) but rebound by 105% (2004) Total 1,356,774 1,285,842 770,575 1,472,191 Dropped by 40% (2003) but rebound by 91% (2004) Average growth 4.06% (2000 – 2004) Source: BPS Bali 2005; Corrected by MCI (2005)

Table 6.10. Length of Stay of Tourist from Related Country Origin (2005)

Average Length Country Origin Planning Realization

Europe 13 - 14 8 America 12 5 Japan 7 4

Australia Oceania 10 6 Asia 5 4

Others 13 5 - 6 Source: BPS Bali, MCI Compilation, 2005.

• Estimated target of consumer are tourists from Japan, Europe and North America with potential demand around 24.7% from those tourists arrival considering that portion represent the ratio of tourism interest to Bali cultural life as indicated by Bali Provincial Tourism Office (2004 study).

• The competitor in this segment is Thailand and Vietnam and India (Assam tea plantation). Bali has strong selling point from Bali coffee and Bali global brand image but required more exploration to develop the concept of agro tourism which attractive for tourist who has curiosity. Number of tourism rebound will also occurred after the second blast terror, considering that more people aware that this could happen any where anytime, also there is almost no duplication of Bali to be visited, means not necessary for Bali to sell a low interest value just to attract more people to come.

6.2.5. Garment Handicraft Industry

Background

• Indonesian textile products are include the high intensive labor industries and were the major backbone industry of Indonesia. Around 400,000 labors were absorbed for garment industries from the total of 1.25 mill labor engaged in all textile and textile product industries in Indonesia.

• More than half of garment products of Indonesia is consumed for export market, it is around two third from total production, the rest of it absorbed by domestic consumption. Although imported garment products were limited and considered as small, the volume are increasing and dominated by cheap prices products from China.


BKPM – JICA


Indonesia garment products have been entering market of quota countries (USA, West Europe) and also non-quota countries like Middle East Asia. The export volume to quota countries is range between 1.5-to 2-time volumes to non-quota countries.

• Textile product or garment is not an original Balinese handicraft product, but Bali position as International show window for local culture and handicraft, has make more tourist and foreigner interested to its product. Also Bali global brand image has stimulate the trend and demand of export consumer. The most noticeable Bali clothing products are in general ladies casual wear including lace and embroidery. This product has entering the market in USA (quota country), South America, Singapore and Japan.

Production and Project Location

• The proposed commodities for this garment industries will cover various products of ladies casual wear, resort wear, with some embroidery and laces for clothing and shawl all targeting for upper consumer class in international market of quota countries (USA and Western Europe) or non quota countries (Eastern Europe and Asia). The raw material will be use local product with limited number of imported material (from China). Design will follow the modern or semi-ethnic pattern, which will be suited to the consumer demand and market trends. Some of product will be designed according to the request of major merchandiser or distributor like; Macy’s, JC Penney, Sears, Clairbone in USA or other European brands of Zara, Esprit, Topshop, and French Connection etc.

• The product will be manufactured from factory in Kabupaten Badung or Tabanan, with studio and selling outlet located in Denpasar, which has better access to international show window. The area will cover around 1.5 Ha for manufacture compound in Badung or Tabanan which can accommodate around 60 – 80 craftman, in its initial production stage.

• Major cost factor for development and production include:


I Basic Investment

1 Land Cost: Land price in accessible area of good utilities in Tabanan or Badung, in peripheral urban area is estimated range between Rp. 80,000 to Rp. 120,000/sqm.


Construction unit prices for workshop or simple factory is around Rp. 2.5 mill to Rp. 3 mill/sqm with adequate installation.

II Production Cost

3 Labor wage

Labor wage for skilled worker for industry range Rp. 40 – 45,000/day and skilled construction worker around Rp. 45,000 – Rp. 50,000.

4 Selling Outlet Renting cost

Renting office space for shop house in Denpasar for studio and selling outlet, in the central commercial areas is around Rp. 80,000 – to Rp. 120,000/sqm/month.


BKPM – JICA




5 Transportation cost Bali’s product including textile and garment product should pass through Surabaya for export. Indonesia export only has two types of containers: 20’ and 40’ container. Most of shipping uses 20’ container.

Quoted on August 2005, the transportation cost to various destination is as follows:

Packing: 20’ container (30 cubic meter) can hold 30 crates with 1 cubic meter size each. Each crate cost roughly US$ 8 – 10 for garment and textile product.

Trucking: Trucking container to Surabaya (charged by cargo company) is estimated US$ 570 – 600 for 20’ container.

Handling & stuffing: Total handling and stuffing fee for one container is estimated at US$ 202.5

Documentation: Mostly consist of Bill of loading and document delivery cost, estimated at US& 80 Shipping: Shipping cost from Surabaya is vary, depend on destination country, for example:

- To Singapore will cost around US$ 331 - To Oklahoma (USA) around US$ 3,500

Competitiveness and Market Opportunities

• Total production capacity of Indonesia garment industry is estimated around 1,130,000 ton per year, dominated by DKI and West Java at the portion of 30% and 45%. Bali holds the 4th ranks after Central java with its production capacity contributed 5.8% to total material production or around 65,000 ton.

Table 6.11. Indonesia Garment Industries its Production Capacity in Prominent Province

Source : Indocommercial (2003) and MCI (2005)

Province No of Industry No of Sewing Machine

Production Capacity (T)

DKI Jakarta 253 97,196 347,150 Jawa Barat 266 146,348 528,674 Jawa Tengah 47 23,432 81,378 DI Yogyakarta 7 949 3,380 Jawa Timur 35 11,440 40,489 Bali 57 18,457 65,780 Sumatera Utara 9 2,185 7,765 Riau 2 356 1,266 Sulawesi Selatan 4 412 1,466 Propinsi Lain 122,042 52,651 Indonesia 1,130,000


BKPM – JICA


• Garment industries were affected by monetary crisis in 1998, which dropped its production by 13%, caused by unrest and security condition under unstable politic situation. The production and its export are they rebound in year 2000 to a higher additional production volume (23%) with 67% increase in its export volume.

Table 6.12. Indonesia Garment Production (1996 – 2004) Year Production (Ton) Growth (%) 1996 807,658 - 1997 806,256 -0.2 1998 698,742 -13.3 1999 860,725 23.18 2000 902,305 4.83 2001 980,575 8.67 2002 968,632 -1.22 2003 942,478 -2.6 2004 911,376 -3.3


• A larger portion of the Indonesian export product of garment (2003 – 2004) is consumed by quota countries (62 – 65% portion), which include US, UK, Germany, Canada and West Europe. The remaining portion (38 – 35%) of total export are distributed to non quota countries include Middle East, Africa, East Europe and other Europe, Oceania and Asia/South East Asia. The Quality and average prices of garment for quota exports is relatively higher than those for non-quota countries, except garment prices for Asia and South East Asia (Japan, South Korea, Malaysia and Singapore), Oceania (Australia) and other Europe countries.

Table 6.13. Garment Export Condition to Quota and Non-Quota Countries 1997 – 2004

Volume (Ton) Value (US$'000) Year Quota Non-Quota Total Quota Non-Quota Total 1997 121,234 99,026 220,260 1,746,377 1,038,529 2,784,906 1998 122,408 79,918 202,326 1,852,416 665,516 2,517,932 1999 192,034 147,593 339,627 2,547,421 1,187,646 3,735,067 2000 190,590 140,295 330,885 2,881,625 1,276,54 4,158,189 2001 212,837 167,069 379,906 3,041,963 1,302,589 4,344,552 2002 202,505 126,282 328,787 2,701,745 1,103,713 3,805,458 2003 212,116 95,298 307,414 2,840,233 808,783 3,649,016 2004 205,097 94,325 299,422 2,835,340 787,660 3,623,000


The export volume and its value are fluctuating with a slight decrease in the latest year, from its weakened competitiveness caused by increase of labor wage and labor strikes, although it productivity remains lower compare to China and Vietnam. The major external factor in this export decline is drop of demand by impact of terrorism issues particularly after WTC beast 2001.

The Indonesia competitor in garment industries is China and Thailand. China almost dominating world consumption market particularly in the lower and moderate market segment, and China has a lowest market-selling price from its labor productivity and support from its raw material industries.

• Indonesian import volume is relatively low compare to total production but continuously increases from 0.004% in 1996 to around 1.5 to 2% in year 2004. Major importer is China (50%) followed by Hong Kong and Singapore. The average prices of China import products are much cheaper compare to other imported products.


BKPM – JICA


• The local/national consumption of garment reached its peak by 3.12 kg/capita/year (1 kg equal with 4.5 pieces) in year 1996 and drop into 2.55 – 2.60 kg/capita/year after crisis 1998, than slowly climbing back to recover to 3.12 kg/capita/year in year 2002 – 2003. No data available in year 2004 and 2005, but estimated that per capita consumption will again declining due to increase of fuel prices. Since 2002, large number of garment producer particularly they who oriented to domestic/national market, being suffered from intrusion of low prices China products to Indonesian market. This condition made into close out of many local producers mainly a lower scale industry.

Table 6.14. Indonesian Garment Consumption 1996 – 2004

Year Total Consumption (Ton)

Growth (%)

1996 606,935 -1997 615,882 1.51998 514,278 -16.51999 528,975 2.92000 585,948 10.82001 613,600 4.72002 650,400 6.02003 658,300 1.52004 645,200 -2.0

Source: Indocommercial (2003) and MCI (2005)

The balance of production, export, import and supplier of Indonesia garment industries including its growth are expressed in the following Table.

Table 6.15. Indonesia Garment Production, Import, Export and Supply (1996 - 2004)

Production Garment Year

Industry Non Industry

(Tailor) Import Export Supply

1996 807,658 47,975 2,832 231,500 626,965 1997 806,256 45,420 4,076 220,260 635,492 1998 698,742 34,900 2,962 202,326 534,278 1999 860,725 47,212 7,878 339,627 576,188 2000 902,305 45,495 13,528 330,885 630,443 2001 980,575 49,440 11,947 379,906 662,056 2002 968,632 45,643 11,647 328,787 697,135 2003 942,478 43,425 12,532 307,415 691,020 2004 911,376 38,372 14,085 283,437 680,396

Source: Indocommercial (2003) and MCI (2005)

• Bali garment production is mostly oriented to upper level consumption for exports not like garment producer in Central Java and West Java which supplies for more domestic market. Bali lower quality products consume for tourists of both local and domestic are largely produced in Central Java, to be sells in Bali as souvenir commodities.

Table 6.16. Bali Garment Industries (2003)

No. Company No of Sewing Machine

Production Capacity Location

1 Diana, CV 1,822 6,397,406 Denpasar 2 Elis Koleksi, CV 813 2,790,216 Denpasar 3 Santhi, CV 689 2,419,217 Kuta 4 Mahanta Express, PT 655 2,299,836 Badung 5 Sara Burdamas, PT 655 2,299,836 Denpasar


BKPM – JICA


No. Company No of Sewing Machine

Production Capacity Location

6 Busi Arta, CV 644 2,261,213 Badung 7 Gemini, CV 619 2,173,433 Denpasar 8 Jaka, CV 578 2,029,474 Denpasar 9 Khrisna Kreasi, CV 545 1,913,604 Denpasar

10 Kuchit, CV 545 1,913,604 Denpasar 11 Lia, CV 545 1,913,604 Denpasar

Other companies (46) 10,347 36,303,786 Denpasar Total 18,457 64,715,229


Although there are trends of more quota will be given by developed countries (USA) to other countries outside of China, Indonesia is not quite prepare its industries to produce competitive garment export due to labor constraint and fuel increases. Avoiding aggressive China penetration in world market particularly for moderate and lower market segment items. Indonesia should anticipate to more oriented to upper segment or branding. Bali has a strong global image for its production and competitive craftman to produce garments and clothing for upper class market.

6.2.6. Silver Ornaments and Jewelry Handicraft

Background

• Bali silver handicraft qualities are recognized by international consumer in its high art craft silver ornaments and jewelry. The most talented silver craft people are concentrated in Gianyar Kabupaten (Gianyar, Ubud, Celuk).

• In the last decade, more silver jewelry product with strong Balinese motives are produced and consumed by most of American and European tourists. The selling volume of jewelry handicraft product for tourist consumption is decreasing by drops of tourist arrival particularly from America and Europe as the potential buyer.

• The growing demand is than establishing through export product; although the products are not necessary appeared in original Bali design. High quality Bali silver craftman are able to produce silver jewelry of modern or custom design for exclusive international market.

• Bali craftsmanship is considered still higher than silver craft products from Yogyakarta or Kendari/South Sulawesi.

Products and Market Condition

• The Bali prominent silver jewelry product is rings, bracelets, necklaces, pendants and other accessories. The design is following the consumer demands and trends as translated by professional designer using a modern or Balinese ethnic motives. The raw material uses the local silver from Aneka Tambang (state company) or exported from other countries.

• The location is in Ubud, Gianyar districts, as Ubud is the Tourism centre of higher spending group and the concentration of talented Bali craft people. The area around 0.3 to 0.5 Ha will be required to accommodate workshop and studio with a smaller exhibition space. Investor can use local designer from Yogya or ITB (Bandung) art school or combined with export designer. Frequent involvement or participation in international exhibition is required for effective design innovation to meet the consumer trends for market competitiveness.


BKPM – JICA


• The major cost factor of silver handicraft industry in Ubud are:


I Basic Investment

1 Land Cost Land prices are relatively higher than average tourism site in Bali, ranging between Rp.250, 000 to Rp.350, 000/ sqm in a good access and good utilities compound.


By utilize available local material for building factory and storage is around Rp.2.5 to 3.5-mill/ m2 including utility installation cost (electricity & water).


II Production Cost

4 Labor cost

Craftman wage is estimated around Rp.70,000 to Rp.80,000 per person per day for skilled labor, with lower wage for helper range between Rp.40,000–Rp.45,000 per person per day.


5 Transportation cost Courier Shipment: This shipment is suitable for small packages like jewelry, bags, and other small items. We can ship the order by courier services such as: Express Mail Service (EMS), TNT, DHL and FedEx. The cost will vary, depends on destination

Air Shipment: Alternative export transportation is aircraft transportation. We can ship goods by Airline Cargo companies like: Singapore Airline Cargo, China Airline Cargo and other airlines. We can ship the goods to the airline warehouse in the destination city, and then release the goods our self, or we can contact the airline and ask them to deliver to destination directly, but there will be an extra charge for this service.

Airlines do charge by the kilo, but in addition, also by volume. The final freight rate will be calculated upon whichever is greater, either the volumetric weight or the true gross weight of the item. Roughly, air cargo will cost US$ 3.25 – 3.5 per kilo.


BKPM – JICA



• From national scale, Bali production of silver jewelry is the higher among silver craft produces by other provinces. Competitiveness of Bali craft product is in its smooth and detailed products of their original design.

Table 6.17: Number of Ornament Maker (Gold and Silver) by Provinces in Indonesia

Provinces Number of Companies Bali 922 East Java 449 West Nusa Tenggara 385 Lampung 240 South Sulawesi 145 Yogyakarta and Central Java 111 Southeast Sulawesi 84 West Sumatera 47 East Nusa Tenggara 30 Jakarta 5

Sources: Ministry of Industry and trade / Data Consult

• Jewelry product for export market, its supplies are heavy dependent up on the consumer trends, intensive design innovation is the important point to enter international market. Good design and quality craftsmanship is the competitiveness to enter upper market segment as large number of lower segment occupies by machinal product from China and Taiwan.

• There are more than 50 craftman and home industries in silver jewelry in Bali, mostly oriented its market for upper class domestic with some number produced for export. Major numbers of this smaller industry are associated in a marketing group called ‘Novica’ which has website/ e-commerce to access international jewelry market. There also other individual silver handicraft of a larger scale of industries which oriented its product for export through their own channel. A larger PMA industry produces high-class silver jewelry product for major boutique shop in the world by establishing bonded industrial zone in Ubud. This industry is imported its raw or semi finished material to process into finish product in Ubud for export.

• Limited supply of raw silver in the latest years and implication of PPN (value added tax) to both raw material and finish products, has make more handicraft industries less its competitiveness in international market by a higher price. Meanwhile the world raw silver consumption is share for jewelry (28%), industry (42%), photography (21%) and coin or medal (4%) also investment (2%). With more digital photography is consumed, less silver coated film are produced and guided to a lower portion of photography utilizing raw silver in the future.

• Indonesia (Bali) competitive producer of silver handicraft is India, which is intensive handmade production growth. India also very aggressive and strategic in its tourism promotion. Other producer in Thailand and China are mostly oriented to machinery handicraft products which less demanding by upper level of consumer in international market.


BKPM – JICA


6.2.7. Integrated Marina Resort

Background

• Travel by sailing or yachting as recreational boating is growing in South East Asia over the last decade. Numbers of marina integrated with tourism amenities were developed in Thailand, Singapore and Malaysia including Serawak and Kinabalu. Australia and New Zealand has longer time establish its boat industries correlated with its local demand for recreational boating. There are also significant demands from Europe to sail to tropical islands particularly during winter time.

• Number of boat owner in South East Asia and Australia are increasing actuated by sailing or fishing interest, but also by appearance to be exclusive citizen (particularly in South East Asia). This condition guided to more of marina, which basically prepare for mooring and servicing were developing into a more status image of property. In many places marina become selling point to on crease the value of property development in coastal areas.

• Bali and Indonesia with its thousands attractive islands located in the crossroad between South East Asia and Australia, but not facilitated by any appropriate marina. The existing marina in Benoa is crowded and below standard performance, also other marina in Jakarta, Bintan are only use for local boat mooring with a large number of marina development in Malaysia, Singapore, Thailand, Serawak and Kinabalu also in Australia and large demand of yacht or boat visit to Bali (Indonesia) new integrated Marina development in Bali will be a prospective investment.

Propose Location

• In marina business, location is the most important aspect; it should suitable from navigation point of view also accessible to other tourism amenities. Although Benoa still consider as best location the area availability is limited, by future expansion of Port facilities. Other site in Sanur and Sarangan is difficult for acquisition and has expensive land prices. Nusa Penida and Nusa Lembongan probably the most appropriate site with a larger area available for a more integrated marina resort development to be propose. A further study is required to identify its suitability for navigation.

• Around minimum 150 Ha development is required, to accommodate around 50 sailing berth to accommodate mega yacht and smaller craft with its service facilities (repair/ boat yard, immigration and custom, rescue and water police, yacht club and marina retail outlets). Other amenities also include gaining more property value from its marina, such as hotels and commercial areas, restaurants, handicraft center, marina villa etc.

• Major cost factor of the project


I Basic Investment

1 Land Cost Land price in those islands is lower than Bali mainland which is estimated ranges between Rp. 40,000 – 100,000 per sqm. A possibility of anthousing the land through long term rent is possible but only for facilities outside property area to be sale; common long term prices range between 1 – 2.5% from actual prices per year.


BKPM – JICA




Construction cost for luxury building including furnishing in those island ranges from Rp.4.5 mill to Rp.5.5 mill per sqm, with maximum utilization of local materials.

II Production Cost

3 Labor cost Construction labor is range between Rp.50,000 –Rp.60,000 per day and services labor around Rp.40,000 per day.


• Number of tourism is expected to be rebound after the second blast terror, with the reason that Bali has unique attractions difficult to compare, also more and more people aware that terror could happen anywhere anytime not only in Bali. More American and European, also raising demand from Asia will visit Bali, which currently focused its development in southern mainland. New location in Nusa Lembangan and Nusa Penida will promise a more higher tourism interest value to offer.

• North America and Europe countries are the world largest consumer for boating and marina, with number of marina approximately reach around 11 – 12,000 in US, 3,000 in Canada and 6,000 in Europe (Netherland, Spain, Italia etc). Malaysia has around 15 integrated marina resorts plus several smiler resorts in Serawak and Kinabalu. Singapore developed around 10 marina resort, also more marina were developing in Thailand and Philippines

• There around 1,000 request of visit of sailing and yacht from abroad to visit Bali average per year. The most attractiveness of Bali are; its tropical island with its unique culture and accessible to other pristine island in Nusa Tenggara (Komodo) and Florest Sea (Wangiwangi, Kaledupa, Tomea, Binongko). From those demand only less than 15% arrived in Bali due to difficulties in visa arrangement and immigration procedure for crews and boat/ships. Most of demand to Bali is came from Singapore, Malaysia and Australia.

Table 6.18. Marina in South East Asia and Australia

Berthing Capacity Country Marina

Wet dry Accommodation

Singapore - Changi Sailing Club - Ponggol Marina - Raflfes Marina - Republic of Singapore YC - Singapore Armed Forces YC - Sentosa Cove - Europe Sailing Club - Keppel Marina - Natsteel Marine

150* 170 50* 20 160 20 50

350 300 150 100 200*150 50


BKPM – JICA


Berthing Capacity Country Marina

Wet dry Accommodation

Malaysia - Langkawi Yacht Club - Admiral Marina - Sebana Cove - PD Marina (Port Dickson) - Lumut Yacht Club - Rebak Marina - Royal Selangor Yacht Club - Sutera Harbour Marina - Telaga Harbour Marina - Bayan Bay (Penang) - Kota Kinabalu YC - Waterfront city (Labuan)

130

Thailand - Phuket Boat Lagoon - The Yacht Haven - Ao Chalong Yacht Club - Ocean City Marina - Phatra Marina & YC

Philippine - Manila Yacht Haven - Subic Bay YC - Cebu YC

Indonesia - Nongsa Point (Batam) - Bali Marina

Source: YP Loke (2005) and various sources

EXECUTIVE SUMMARY for BALI PROVINCE Investment Opportunities Study for D..I Yogyakarta Province and Bali Province

PT. MITRAPACIFIC CONSULINDO INTERNATIONAL appendix -1

Appendix 1. List of Current Exporter/Businessman in Each Business Sector

1. Coffee Exporter

Company Name : PT. Putera Bhineka Perkasa Address : Jl. Pulau Moyo No. 5, Denpasar Telephone : 0361-720589 Fax : 0361-720667 e-Mail : Contact Person : Dra. Ni Made Arijanthi Business Field : Coffee Producer/exporter

1

Export Market : Hongkong, Japan Company Name : PT. Tirta Harapan Bali Address : Jl. Airlangga no 26, Singaraja Telephone : 0362-21088 Fax : - e-Mail : - Contact Person : Business Field : Coffee Bean Producer

2

Export Market : Hongkong Company Name : PT. Bersama Mitra Abadi Address : Jl. By Pass Ngurah Rai No. 126 G. Sanur Telephone : 0361-289728 Fax : - e-Mail : - Contact Person : - Business Field : Coffee Powder, coffee bean

3

Export Market : Japan Company Name : PT. Bali Banter Address : Jl. Lesmana No. 6, Seminyak – Kuta Telephone : 0361-730092,723486 Fax : - e-Mail : - Contact Person : - Business Field : Coffee Bean

4

Export Market : - Company Name : CV. Gunung Batu Karu Address : Banjar Pujungan, Pupuan Telephone : Fax : e-Mail : Contact Person : I Made Setiasa Business Field : Coffee bean producer

4

Export Market : Company Name : PT. Surya Kintamani Address : Jl. Teuku Umar no 75 Denpasar Telephone : 0361-379485 Fax : - e-Mail : - Contact Person : Business Field : Coffee Powder/ coffee bean

4

Export Market :



2. Vanilla Exporter

Company Name : PT. Djasulawangi Address : Jl. Laksamana no. 89, Singaraja Telephone : 0362-21390 Fax : 0362-21547 e-Mail : Contact Person : Jack Narpati Business Field : Vanilla exporter

1

Export Market : USA Company Name : PT. Pacific Express Address : Jl. Hang Tuah no 3X, Renon, Denpasar Telephone : 0361-235181 Fax : 0361-238062 e-Mail : Contact Person : Rusmiati Dudi Business Field : Vanilla exporter

2

Export Market : USA. EU Company Name : PT. Triperrindo Address : Br. Tegaltamu, Batu bulan, Gianyar Telephone : 0361-297150 Fax : 0361-297151 e-Mail : Contact Person : Siska Warty Business Field : Vanilla

3

Export Market : USA

3. Frozen Fish

Company Name : PT. Balinusa Windumas Address : JL. Cokroaminoto No. 65, Denpasar Telephone : 0361-722091 Fax : 0361-722090 e-Mail : [email protected] Contact Person : Jenny Tan Business Field : Tuna Exporter

1

Export Market : USA, Japan, Europe Company Name : PT. Intimas Surya Address : Pelabuhan Benoa , Denpasar Telephone : 0361-724246 Fax : 0361-710767 e-Mail : Contact Person : I Gusti Nyoman Artawan Business Field : Fresh/Frozen Tuna

2

Export Market : EU, USA Company Name : PT. Kohyama Bali Baruna Address : Jl. Pelabuhan Benoa No. 10X Telephone : 0361-729586 Fax : 0361-729585 e-Mail : Contact Person : Ir. I Ketut Sumertoyo

3

Business Field : Frozen Tuna



3. Wooden Handicraft

Company Name : PT. Bali Deva AGung Address : Jl. Legian Kaja no. 495, Kuta Bali Telephone : 0361-427865, 428393 Fax : 0361-428473 Contact Person : Basuki Imam Business Field : Producer/ Exporter

1

Export Market : USA, Australia, EU Company Name : PT. Bali Meiso Address : Jl. Raya Yeh GAngga no. 9B, Ds. Gubug Baleran Telephone : 0361-412410 Fax : 0361-412410 Contact Person : Anom Business Field : Producer/ Exporter

2

Export Market : Japan, Korea Company Name : PT. Dara Gabali Putra Address : Ds. Petulu/ Peliatan, Ubud Telephone : 0361-977059 Fax : 0361-977060 Contact Person : Mira Yuristiani Business Field : Producer/ Exporter

3

Export Market : USA, Australia, Afrika, Asia, EU Company Name : CV. Dharma Siadja Address : Jl. Raya Mas Ubud Gianyar Telephone : 0361-976179 Fax : 0361-975210 Contact Person : Ketut Dharma Siadja Business Field : Producer/ Exporter

4

Export Market : EU, Asia Company Name : PT. Gelatik Dwi Pramana Address : Jl. Raya Gianyar, BR. CAngi, Sukawati Telephone : 0361-974702 Fax : 0361-974703 Contact Person : Drs. I. Nyoman Suartika Business Field : Producer/ Exporter

5

Export Market : Japan Company Name : CV. Garuda Bali Address : JL. Raya Mas, Dusun/ Br. Abianseka, Desa Mas,

Kec. Ubud, Kab. GIanyar Telephone : 0361-982602 Fax : 0361-982601 Contact Person : Putri Dhamawati Business Field : Producer/ Exporter

6

Export Market : USA, Canada, Europe

Company Name : Hawaii Art Shop Address : Kumbasari Shopping Centre 2nd Floor Telephone : 0361-435135 Fax : 0361-437752 Contact Person : Hadi Utomo Business Field : Producer/ Exporter

7

Export Market : USA, Japan, Singapore



Company Name : PT. Sumiati Ekspor Internasional Address : Jl. Ksatria III n o. 3 Tuban, Kuta Telephone : 0361-735179 Fax : 0361-754484 Contact Person : Edy Mochtar Business Field : Exporter

8

Export Market : Europe Company Name : FA. Siadja Address : Ds. Mas Ubud, Gianyar Telephone : 0361-975210, 975710 Fax : 0361-975210 Contact Person : W.G. Siadja, BBA Business Field : Producer/ Exporter

9

Export Market : USA, EU Company Name : CV. Wiracana Address : Jl. Raya Sesetan no. 63 Denpasar Telephone : 0361-223189, 213647 Fax : 0361-231478 Contact Person : Mr. Ketut Wiranantaja Business Field : Producer/ Exporter

10

Export Market : USA, Puertorico, Canada, Norway, Japan, EU

4. Wooden Furniture

Company Name : PT. Bali Chippendale Furniture Address : Pangkukarang, Kerambitan, Tabanan Telephone : 0361-812570 Fax : 0361-812571 Contact Person : Ni Ketut Suariyani Business Field : Producer/ Exporter/ Trader

1

Export Market : USA, Korea, Japan, Bermuda Company Name : PT. Bali Hai Address : Ds. Batan Buah, Beraban, Kediri Telephone : 0361-411754 Fax : 0361-411754 Contact Person : Han Jung Kuk/ Ni Nyoman Seriani Business Field : Producer/ Exporter/ Trader

2

Export Market : USA, Japan, Korea Company Name : PT. Jati Baliku Address : Jl. Raya Kerobokan 88X Telephone : 0361-732648 Fax : 0361-732648 Contact Person : Nyoman Bayu Business Field : Producer/ Trader

3

Export Market : Europe Company Name : PT. Kreasi Enam Sembilan Address : Jl. Raya Kuta no. 98 Tuban, Kuta Bali Telephone : 0361-756787 Fax : 0361-756787 Contact Person : Candra Wijaya Business Field : Producer/ Trader

4

Export Market : USA, Japan, EU



Company Name : Mario Antik Address : Br. Sakeh, Batuan KAler, Gianyar Telephone : 0361-298541 Fax : 0361-298541 Contact Person : Hetsi Mulyani Business Field : Producer/ Trader

5

Export Market : Europe

5. Garment/Textile

Company Name : PT. Ayu Orchid Address : Jl. Imam Bonjol no. 324 Denpasar Telephone : 0361-484526 Fax : 0361-483185 Contact Person : I Wayan Nuada Business Field : Producer Exporter

1

Export Market : USA, Japan, EU, South Africa Company Name : PT. Bali Roses Address : Jl. Rig.Jend. NGurah Rai 23 Sanur Telephone : 289209 Fax : 288027 Contact Person : Ketut Ardana Business Field : Producer

2

Export Market : USA, Italy, Inggris, Prancis Company Name : CV. Duta Sarana Indah Address : Jl. I. Gusti Ngurah Rai No. 138 Sanur, Denpasar Telephone : 0361-287089, 287080 Fax : 0361-287561 Contact Person : Christianto Thahjadi Business Field : Garment

3

Export Market : USA, EU Company Name : PT. Dianatina Ayu Address : Jl. Raya Kuta No. 104 Kuta Bali Telephone : 0361-751953 Fax : 0361-751816 Contact Person : Drs. Panudiana Kuhn, MM Business Field : Producer/ Exporter

4

Export Market : Germany, USA, France, Australia, Japan, Norway Company Name : CV. Jimmy Garment Address : Jl. Raya Kuta No. 1 Kuta Bali Telephone : 0361-753294/ 753296 Fax : 0361-753412 Contact Person : Vony Yunita Budiman Business Field : Producer/ Exporter

5

Export Market : USA, ITAly, England, Prancis Company Name : CV. Kecak Address : Jl. Soka No. 126 Denpasa Telephone : 0361-461968, 461969 Fax : 0361-462077 Contact Person : Dharma Wijaya Business Field : Producer/ Exporter/ Trader

6

Export Market : USA



Company Name : CV. Merta Jaya Address : Jl. Belimbing no. 5 Denpasar Telephone : 0361-223614, 225096 Fax : 0361-231757 e-Mail : Contact Person : Simon Haryantho Business Field : Producer / Exporter

7

Export Market : USA, EU Company Name : CV. Mama & Leon Address : Jl. Danau Tamblingan no. 99 Denpasar Telephone : 0361-288044 Fax : 0361-288150 e-Mail : Contact Person : Cahya Adiguna, Yuliana Kanaya, Agustu, Wirati Business Field : Producer/ Exporter/ Trader

8

Export Market : MEE, AS, Singapore, Rusia, Chile Company Name : PT. Matrisae Collectindo Address : Jl. Nyang-Nyang Sari no. 5 Tuban Telephone : 0361-755884 Fax : 0361-756103 e-Mail : Contact Person : I Made Setiawan Business Field : Exporter

9

Export Market : USA, Europe, Japan

Company Name : PT. Mitra Garment Indoraya Address : Jl. Imam Bonjol Telephone : 0361-485450 Fax : 0361-484020 e-Mail : Contact Person : Ratnawati, SE Business Field : Producer/ Exporter

10

Export Market : Europe, USA, Asia, Australia Company Name : CV. Nino Address : Jl. Tunjung Bang, no. 5 KElurahan Kesiman Telephone : 0361-463531, 463534 Fax : 0361-43653, 463533 e-Mail : Contact Person : Is Junaidi Business Field : Garment

11

Export Market : USA, Japan, EU

6. Silver Jewelry

Company Name : PT. Bali Langit Biru Address : Jl. By Pass Ngurah Rai 925 DPS Telephone : 0361-724265, 724266, 729007 Fax : 0361-726154 e-Mail : Contact Person : Gwie Peter Winarso Business Field : Producer Silver Jewelry

1

Export Market : Europe, USA



Company Name : CV. Brama Address : Jl. Gunung Sari no. 72 Denpasar Telephone : 0361-484151 Fax : 0361-484259 e-Mail : Contact Person : Made Bramadita Business Field : Producer Exportir kerajinan perak

2

Export Market : EU Company Name : PT. Devine Indonesia Address : Dsn. Tanggahan TAlang Jiwa, Demulih, Bangli Telephone : 0361-7426164 e-Mail : Contact Person : Ibu Made Oko Martini Business Field : Producer/ Exporter kerjinan perak

3

Export Market : Swiss Company Name : PT. Kapit Mas Address : Jl. Kebo Iwa no. 10 Pd. Sambian Denpasar Telephone : 0361-7440692 Fax : 0361-425762 Contact Person : Hetty Simatupang Business Field : Exporter kerajinan perak

4

Export Market : USA, Australia, New Zealand, Europe

Company Name : CV. Led Studio Address : Jl. Simpang Nakula 9x Legian Kaja Kuta Telephone : 0361-757702 Fax : 0361-757701 Contact Person : Elva Kurniawan Business Field : Producer/ Exporter kerajinan perak

5

Export Market : USA dan Europe

Company Name : PT. Karya Tangan Indah Address : Br. Baturning Mambal, Abiansemal Badung Telephone : 0361-411241, 810987 Fax : 0361-813666, 815217 Contact Person : Sri Winarsih Business Field : Producer/ Exporter kerajinan perak

6

Export Market : USA, Thailand, Hongkong Company Name : UD. Romo Address : Jl. Raya Celuk no. 42 Sukawati Gianyar Telephone : 0361-298024 Fax : 0361-298024 Contact Person : I Kadek Mustika Business Field : Producer/ Exporter kerajinan perak

7

Export Market : USA, Swiss, Germany, England Company Name : Sun Suka Usaha Niaga Address : Br. Cemenggoan Celuk SUkawati Gianyar Telephone : 0361-298692 Fax : 0361-298692 e-Mail : Contact Person : I Nyoman Suka Business Field : Producer/ Exporter kerajinan perak

8

Export Market : USA, EU



Company Name : CV. Sidharta Address : Br. Legian Kaja Kuta Bali Telephone : 0361-754017 Fax : 0361-755904 e-Mail : Contact Person : Christika Dewi, SE Business Field : Producer/ Exporter kerajinan perak

9

Export Market : USA, EU Company Name : CV. Spiral Dance Address : Jl. Raya Seminyak Gang Keraton no. 1 Telephone : 0361-814992 Fax : 0361-814992 e-Mail : Contact Person : Ayu Business Field : Producer/ Exporter/ Trader kerajinan perak

10

Export Market : USA Company Name : CV. Ubud Corner Address : Jl. WR. Supratman Gg. Candra Metu no. 2 Tohpati Telephone : 0361-461510, 461511 Fax : 0361-461512 e-Mail : Contact Person : Ketut Sudiarsana Business Field : Producer/ Exporter kerajinan perak

11

Export Market : Germany



Appendix 2. List of Contact in Governement

Name Position Office House Komang Rai Sudjaka, SH MH

Kadis Tenaga Kerja Prop. Bali

Jl. Kemenuh No. 8 Telp. 223963, 224517, 225596

Jl. Tukad Yeh Aya IV AA/7 Denpasar Telp. 231738

Drs. I Gusti Ngurah Sutedja Kadis Perindustrian dan Perdagangan

Jln. Raya Puputan Telp. 265159, 223096 Fax. 223095

Jl. Tukad Yeh Unda I Barat Dps Telp. 224448

Drs. Gede Nurjaya, MM Kadis Pariwisata Prop. Bali

Jln. S. Parman Telp. 222387 Fax. 226313

Jl. Jaya Giri I No. 2 Dps Telp. 239881

Ir. IB. Bagus Wisnawa Manuaba

Kadis Perikanan dan Kelautan Prop. Bali

Jl. Pattimura, 77 Denpasar Telp. 223648, 227926 Fax. 223562

Jl. Srikarya No. 4, Dps. Telp. 240329

Ida Bagus Raka Kadis Peternakan Prop. Bali

Jln. Angsoka No. 14 Telp. 225368, 229733, 225398

Jl. Bay Pass Ngurah Rai 70 B Dps Telp. 247741

Ir. Made Sulendra Kadis Kehutanan Prop. Bali

Jln. Raya Puputan Telp. 235679, 237039 Fax. 224740 Telp. 244245

Drs. Putu Ardana Kadis Perhubungan Prop. Bali

Jln. Kapten Cok Agung Tresna Telp. 227730 Fax. 222436

Jln. Nangka Gg. Ratnasari Telp. 227489

Ir. I Wa yan Badra Wisnaya Kadis Perkebunan Prop. Bali

Jln. D.I Panjaitan, No. 7 Telp. 227810, 225859 Fax. 227810

Perumahan Taman Mahayu Sempidi Telp. 423182

Ir. Dewa Nyoman Suarta Kadis Pertanian Prop. Bali

Jln. Supratman No. 71 Telp. 228716, 227819, 241202 Fax. 223201, 231967

Jln. Supratman 71A

Ir. Ni Wayan Sudji Ka. Bapedalda Prop. Bali

Jln. Hayam Wuruk Telp. 244070, 223462 Fax. 244070, 235402

Jln. Terompong I/No. 1 Telp. 234169

Drs.I Made Kandiyuana Ka. BKPMD Prop. Bali

Jln. D.I Panjaitan No. 5 Telp. 229593 Fax. 237991

Jln. Tukad Balian Gang X/1Renon Kaja Denpasar Telp. 238116

Drs. I Gusti Ngurah Gede Ka. Badan Informasi & Telematika Daerah Prop. Bali

Jln. Melati 23 Telp. 222811 Jln. Gunung Sari, No. 24 Telp. 432110

Drs. Ketut Canang, M.Si Ka. BPMD Prop. Bali Jln. Menuh No.1 Denpasar Telp. 224537 Fax. 234876 Jln. Jayagiri VIII/10 Dps

Investment Opportunities Study for Bali · PDF fileInvestment Opportunities Study for Bali...

Documents

Transcript of Investment Opportunities Study for Bali · PDF fileInvestment Opportunities Study for Bali...