THE DEVELOPMENT OF MANUFACTURING … (Capital) Surabaya Bandung Semarang Samarinda Makassar 9,558...

THE DEVELOPMENT OF MANUFACTURING

INDUSTRIAL ESTATE IN INDONESIA

Presented by: Imam Haryono, Ph.D.

Director General for Industrial Region Development, Ministry of Industry

Presented on Indonesia Investment Seminar

ASEAN-Japan Centre – The Indonesian Embassy in Tokyo

Tokyo, March 31, 2015

“Expand Your Opportunities in Remarkable Indonesia”

TOPICS

III. INDONESIA’S ECONOMIC CONDITION

IV. INDONESIA’S MANUFACTURING INDUSTRY

V. DEVELOPMENT OF THE MANUFACTURING INDUSTRIAL

ESTATE

I. INDONESIA-JAPAN ECONOMIC RELATIONSHIP

II. REMARKABLE INDONESIA

2

VI. ENHANCE INDONESIA’S INVESTMENT CLIMATE

I. INDONESIA-JAPAN ECONOMIC RELATIONSHIP

3

1. Trade Balance Indonesia-Japan

Source: BPS, Processed by DG IIC, Ministry of Industry

Description 2009 2010 2011 2012 2013 Growth

(%) 2009-2013

Jan-Mar Change (%) 2014/2013 2013 2014

TOTAL TRADE 28.418.459,20 42.747.614,40 53.151.308,40 52.902.939,30 46.370.847,00 12,66 11.571.873,59 11.751.546,70 1,55

INDUSTRY 16.794.339,09 26.862.659,08 31.811.106,09 34.442.107,88 30.108.562,77

15,2 7.482.219,29 8.250.777,00 10,27

NON INDUSTRY 11.624.120,11 15.884.955,32 21.340.202,31 18.460.831,42 16.262.284,23

8,6 4.089.654,30 3.500.769,71 -14,40

EXPORT 18.574.730,40 25.781.813,60 33.714.696,10 30.135.107,70 27.086.258,80 9,53 6.911.878,11 6.135.922,82 -11,23

INDUSTRY 7.034.537,99 10.020.127,35 12.577.409,97 11.794.260,55 11.112.334,28

11,4 2.842.000,23 2.669.670,47 -6,06

NON INDUSTRY 11.540.192,41 15.761.686,25 21.137.286,13 18.340.847,15 15.973.924,52

8,3 4.069.877,88 3.466.252,35 -14,83

IMPORT 9.843.728,80 16.965.800,80 19.436.612,20 22.767.831,70 19.284.588,20 17,81 4.659.995,49 5.615.623,89 20,51

INDUSTRY 9.759.801,10 16.842.531,73

19.233.696,12

22.647.847,34

18.996.228,49

17,7 4.640.219,07 5.581.106,53 20,28

NON INDUSTRY 83.927,70 123.269,07 202.916,08 119.984,36 288.359,71

27,7 19.776,42 34.517,36 74,54

TRADE BALANCE 8.731.001,70 8.816.012,90 14.278.083,90 7.367.276,00 7.801.670,50 -3,97 6.281.293,80 4.791.135,10 -23,72

INDUSTRY -2.725.263,11 -6.822.404,38 -6.656.286,16 -10.853.586,79 -7.883.894,22 0 -1.798.218,84 -2.911.436,06 -61,91

NON INDUSTRY 11.456.264,81 15.638.417,28 20.934.370,06 18.220.862,79 15.685.564,72

8,1 4.050.101,46 3.431.734,99 -15,27

Value : Thousand USD

4

2. Japanese investment in Indonesia compared to some Asian countries (third quarter 2014 – USD Million)

Source: BKPM; processed by Ministry of Industry

Singapore, 4,899.5

Japan, 2,041.3 Malaysia, 983.9

South Korea, 752.0

Hong Kong (SAR), 498.9

People's Republic of

China, 328.7 Thailand, 226.6 Taiwan, 107.6

Rest of World, 11,906.6

5

3. Japanese Investment in Indonesia among Japanese Investment in South-East Asia

Source: JETRO; modified by Ministry of Industry

0

5

10

15

20

25

2005 2006 2007 2008 2009 2010 2011 2012 2013 Q32014

USD

Bill

ion

Singapore Thailand Indonesia Malaysia Philipines Vietnam

6

4. Japanese Investment in Indonesia by Sector

0.0

1.0

2.0

3.0

4.0

5.0

2010 2011 2012 2013 2014

USD

Mill

ion

s

Primary Secondary TertieryTertiary

Source: BKPM; modified by Ministry of Industry

Secondary Sector (Manufacturing Industry) is the main sector for Japanese investor 7

5. Japanese Investment in Manufacturing Industry (third quarter 2014 – USD Million)

Food Industry, 135,368.2

Textile Industry, 42,914.2

Paper and Printing Industry, 63,180.1

Chemical and Pharmaceutical

Industry, 111,875.5

Rubber and Plastic Industry,

97,704.6

Metal, Machinery &

Electronic Industry,

384,551.2

Motor Vehicles & Other

Transport Equip. Industry,

880,655.0

Other Industry, 16,537.0

8 Source: BKPM; modified by Ministry of Industry

II. REMARKABLE INDONESIA

9

1. Country Snapshot: The Biggest Archipelago

Indonesian (Bahasa Indonesia)

As well as some 7500 other regional

languanges and dialects.

The rising population share of Indonesia’s middle class (% of Pop)

37.7% 2003

56.5% 2010

Source: World Bank Source: various

Land Area 1,904,443 sq km

Sea Area 3,116,163 sq km

Total Area 5,020,606 sq km

Coastal Line 81,000 km

Population 251 Million people (4th biggest population)

Main Towns

Jakarta (Capital)

Surabaya

Bandung

Semarang

Medan

Samarinda

Makassar

9,558

2,584

2,393

1,553

2,109

791

1,339

Population (‘000)

Jakarta (Capital)

East Java

West Java

Central Java

North Sumatera

East Kalimantan

South Sulawesi

16.3

14.7

14.3

8.5

5.4

6,2

2.3

GDP Share (%)

GDP Size US$ 878.0 Bi

GDP percapita US$ 3,508

GDP/Capita (US$ ‘000)

9.9

2.3

1.7

1.5

2.3

10.0

1.6

I N D O N E S I A

Languange

10

2. Strategic Location: Gateway to ASEAN Market

New York (21 hrs) London

15hrs 30mnt

Johannesburg (14 hrs)

Dubai (8 hrs)

New Delhi (8 hrs)

Tokyo (7 hrs)

Beijing (9hrs)

Melbourne (6hrs 30mnt)

Darwin (3hrs 20mnt)

Berlin (15 hrs)

Moscow (11 hrs)

Ria De Janeiro (24hrs)

Jakarta

Singapore (1hr 42 min)

Sydney (6hrs 50mnt)

Strategic Location and Expanding Global Influence

Indonesia lies at the intersection of the Pacific Ocean, along the Malacca Straits and the

Indian Ocean. Over half of all international shipping goes through Indonesian waters.

11

3. Natural Resources: Need More Value Added (1/2)

Coal

Indonesia is a major player in the global coal market

The world’s second largest thermal coal exporting country, third largest

exporter of steaming coal

Production of around 385 million tonnnes of 2013 and 28,978 million

tonnes proved reserves of coal

Natural Gas

Around 150.7 trillion cubic feet of proven natural gas as at the end of

2012 and is the single largest holder of proven natural gas reserves in

the Asia Pacific region

Oil 7.42 billion barrels stock tank of proven oil reserves at the end of 2012

Renewable

Energy

Holds 40% of the world’s geothermal resources, equivalent to 28.6GW

of power generation potential

Others Palm oil, cocoa, and other minerals

Source: Ministry of Energy and Mineral Resources (MEMR), 2013

The country is home to a biodiversity that is only second to Brazil, just to mention a few. These resources provide tremendous investment opportunities. Moreover, development potential is far from saturated, particularly in renewable energy.

12

3. Natural Resources: Need More Value Added (2/2)

No Commodity Production Location World

Rank

1 Crude Palm Oil 21.2 million tons (2013) Sumatera, Kalimantan,

Sulawesi, Papua.

1st

2 Tin 63 thousand metric tons

(2013)

Sumatera 2nd

3 Rubber 3.1 million tons (2013) Sumatera, Kalimantan 2nd

4 Cocoa 740 thousand tons (2013) Sulawesi, Sumatera, Java,

Kalimantan, East Nusa

Tenggara

2nd

5 Copper 868 thousand metric tons

(2011)

Papua, Maluku, Nusa

Tenggara

5th

6 Nickel 189 thousand metric tons

(2011)

Sulawesi, Sumatera,

Maluku, Papua

2nd

7 Gold 105 metric tons (2011) Kalimantan, Sumatera,

Maluku, Papua

7th

Source: BKPM, FAO, US Geological Survey, 2013

13

III. INDONESIA’S ECONOMIC CONDITION

14

15

1. Indonesian Economic Indicator

NO INDICATOR 2009 2010 2011 2012 2013 2014

1 Growth of Gross Domestic Income (%)

4.63 % 6.20 % 6.46 % 6.23% 5.8% 5.1%

2 Inflation (average) 2.78 % 6.96 % 3.79 % 4.3 % 4.4% 5.1%

3 Trade balance (USD Billion) 19.68 22.11 26.06 -1.63 -4.07 -1.88

4 Foreign Exchange Reserves (USD Billion)

66.10 96.20 110.12 112.78 99.4 111.9

5 Export (US$ Billion) 116.51 157.77 203.49 190,04 182.55 176.29

6 Import (US$ Billion) 96.82 135.66 177.43 191.67 186.62 178.17

Source: Statistics Indonesia, Bank Indonesia, Ministry of Trade;

15

16

2. Indonesian Economic Indicator

327,612,51%

192,67,36%

670,125,59%

20,10,77%

172,06,57%

472,618,05%

265,410,14%

253,09,66%

244,79,35% 1. Agriculture, Livestock, Forestry and Fishery

2.Mining dan Quarrying

3. Manufacturing Industry

4. Electricity, Gas and Watersupply

5. Construction

6. Trade, Hotel and Restaurant

7. Transportation and Communication

8. Financial, Ownership and Business Services

9. Services

16

17

2014: 253 Million of

Population

2025: 320 Million of

Population

B. Potencies 3. Huge Size of Domestic Market (the growing consumption)

Domestic consumption contribute around 56.7% of economic growth

o GDP/Cap : US$ 4.700 (2014).

o Middle Class Population : ± 80 Mio 141 Mio in 2020.

o Population Growth : 1% per year

o Energy Demand Growth : 6% per year.

o Around 60 percent of the population are in the age of productive period in 2014.

o It will be increased to 70 percent of the population in 2030.

17

IDR 3,519

2015 2016

Ax2017 le is Tit

2018 2019

4. Investment Target (1/2) Investment Strategic Plan 2015-2019

trillion total investment targeted i n 2015-2019

1000

900

800

700

600

500

400

300

200

100

0

115 17.7%

% increase FDI DDI 15.9%

from 2010-2014 period (IDR 1,632.8 trillion) 15% 38.9%

14.5% 37.6%

15.1% ta rgeted i n 2015-2019 period

12.2% 36.3%

average growth 35.0% 33.8%

61.1% 62.4%

63.7% 66.2% 65.0%

63.6%averageshare FDI

2015-2019 of tota l i nves tment ta rget i n 2015-2019

36.4% averageshare DDI

2015-2019 Indonesia’s investment Target, 2015-2019

Excl. Financial Sectors and Upstream Oil and Gas, in IDR Trillion

of total l i investment target In 2015-2019

Inve

s tm

en

t Ta

rge

t (I

DR

tri

llio

n)

2015 2016 2017 2018 2019

FDI 343.7 386.4 429.0 494.7 570.0

DDI 175.8 208.4 249.8 297.8 363.0

TOTAL 519.5 594.8 678.8 792.5 933.0

18

Source: The Investment Coordinating Board of the Republic of Indonesia

4. Investment Target (2/2)

Based on Capital expenditure (IDR trillion) in2010-2014, not including financial, oil & gas sectors

2015 2016 2017 Axis Title

2018 2019

2015 2016 2017 2018 2019

Outside Java Java

Tertiary Secondary Primary

1000 1000 Total Group of Sectors Total Location 900

800

700

900 Primary Sector: 15% Secondary Sector: 54%

14.1 Java : 45% Outs i de Java : 55% 800

Terti a ry Sector: 31% 15.1 700 38.0

15.9 42.6 600

500

600 55.5

16.4 54.5 500 47.2 17.0%

53.5% 400

300

200

50.9 400

52.7 54.4 51.5%

300 62.0

57.4 200 52.8 30.4% 100

0

30.4% 49.1 31.5% 30.9% 30.6% 45.6 100

0 2015 2016 2017 2018 2019

Java 282.6 302.6 317.4 337.6 354.5

Outside Java 236.9 292.2 361.4 454.9 578.5

TOTAL 519.5 594.8 678.8 792.5 933.0

2015 2016 2017 2018 2019

Primary 88.4 97.6 107.9 119.3 131.8

Secondary 267.5 313.5 363.2 431.9 517.8

Tertiary 163.6 183.7 207.7 241.3 283.4

TOTAL 519.5 594.8 678.8 792.5 933.0

19

Source: The Investment Coordinating Board of the Republic of Indonesia

IV. INDONESIA’S MANUFACTURING INDUSTRY

20

Source: Statistics Indonesia

The current performance of national industry is encouraging; the manufacturing sector grew significantly by 6.12 % in 2013 and 5.34% in 2014, higher than the GDP growth in the last four years.

1. Growth of Manufacturing Industry

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Economic Growth 5.04 5.69 5.49 6.34 6.01 4.63 6.22 6.48 6.26 5.74 5.06

Manufacturing Sector 7.51 5.89 5.25 5.16 4.05 2.56 5.1 6.73 6.4 6.12 5.34

0

1

2

3

4

5

6

7

8

Gro

wth

(%

)

Manufacturing Sector Growth

21

2. Manufacturing Industry Growth by Sectors


Sectors 2009 2010 2011 2012 2013 2014

1 Food, Beverages, and

Tobacco 11.45 2.75 9.05 7.59 3.31 7.40

2 Textile, Leather Goods,

and Footwear 0.69 1.77 7.58 4.25 6.07 2.38

3 Wood Products and

Other Forestry Products -1.32 -3.44 0.38 -3.14 6.28 7.33

4 Paper and Printed Goods 6.43 1.65 1.46 -4.74 4.53 6.23

5 Fertilizer, Chemical and

Rubber Products 1.67 4.70 3.94 10.48 2.60 1.28

6 Cement and Non Ferrous

Materials -0.49 2.33 7.16 7.82 3.00 1.58

7 Ferrous and Steel -3.94 2.39 13.18 5.86 7.04 4.22

8 Transportation,

Machinery and

Components

-2.78 10.41 6.83 7.06 10.53 6.03

9 Other Products 3.25 3.05 1.85 -0.95 -0.54 9.32

Non Oil and Gas

Manufacturing Industry 2.56 5.10 6.73 6.40 6.12 5.34

Gross Domestic Product 4.63 6.22 6.48 6.26 5.74 5.06

22

3. Projected Growth of Manufacturing Industry Indicators

No Indicators Unit 2014 2015 2020

1 Manufacturing sector growth % 5.7 6.8 8.5

2 Share of manufacturing sector GDP toward national GDP

% 20.8 21.2 24.9

3 Share of manufacturing sector’s export % 66.5 67.3 69.8

4 Manufacturing sector workforce Million people

14.88 15.44 18.44

5 Share of Manufacturing sector employment toward total employment

% 13.7 14.1 15.7

6 Percentage of imported input goods compared to manufacturing sector GDP

% 43.5 43.1 26.9

7 Value-added produced outside Java Island % 29.0 30.0 32.0


23

OBJECTIVE OF INDUSTRIAL

DEVELOPMENT

Independent, competitive, and advanced

industry for the proseperity and welfare of

society.

The Undertaking of Governmental

Matters In Industrial Affairs

• Master Plan for National Industrial Development

• National Industrial Policy • Work Plan for National Industrial

Development

Supporting Instruments

• National Industrial Commitee

• Community Contribution

• Supervision and Control,

• Sanction

Supporting Instruments

• Licensing

• Investment in Industrial Sector

• Industrial Facility

Industrial Resources

Development

• Human Resources Development

• Natural Resources Utilization

• Development and Utilization of Industry Technology

• Development and Utilization of Creativity and Innovation

• Provision of Sources of Financing

Development of

Infrastructure

• Industrial Standardization

• Industrial Infrastructure

• National Industrial Information System

• Industrial Estate

Empowerment of Industry

• Small and Medium Industry • Green Industry

• Strategic Industry

• Increase in Domestic Products Utilization (P3DN)

• International Cooperation in Industrial Sector

Measures for Safeguard and

Salvaging of industry

• Industrial Safeguarding Measures

• The Industrial Salvaging Measures

4. Law and Regulatory Framework (Law 3/2014 on Industrial Affairs)

24

Upstream Agro Industry Basic metal industries Upstream Coal, Gas and

Mineral Processing Industry

Capital Goods Industry

Pharmaceutical,

Cosmetics and

Medical Devices

Industry

Transportatio

n Equipment

Industry

Electronics

and ICT

Industry

Pre-requisites

Supporting Industry

Core Industry

Resources

Textile and

Footwear &

Oher

Industries

Component Industry

VISION & MISION

NATIONAL INDUSTRIAL DEVELOPMENT

Supporting Industry&

accessories

Food

Processin

g Industry

Financing Infrastructure Policy & Regulation

Technology, Innovation &

Creativity Natural Resources Human Resources

Energy and

Power

Equipment

Upstream Industry

5. National Manufacturing Industry’s Structure

25

6. Priority Industries

Man

ufa

ctu

rin

g In

du

stry

Food processing industries Pharmacy, cosmetic, and medical

apparatus industries Textile, leather, footwear, and others

industries Transportation equipment industries Electronic and ICT industries Power plant equipment and machinary

industries

Agro-based upstream industries

Basic metal industries

Petrochemical and coal-based chemical

industries

Capital goods, machinery component, input goods and industry-supporting

services

26

1 Fiscal incentives Provision

2 Total Equity Participation by State

3 Domestic Industrial resilience (duty, custom, product standards)

4 Underwriting of energy supply, raw material, and other industrial resources.

5 Facilitate of land distribution and supporting infrastructure

6 Application of Green Industry

7 Arrangement of trade system setting imported product

8 Increasing of Domestic Products Utilization

9 Acceleration of Technological Transfer

10 Risk Underwriting for the utilization of Industrial Technology

11 Development and Application of Standardization also strengthening the standardization of infrastructure

12 Enhancement of the coordination between central and regional government in terms of industrial development

13 Development and Strengthening of regional resources based industry include regional core competence and provinvial favoured industry

14 Industrial Restructuring by avoiding monopolistic practices and any market distortion

15 Promotion enhancement, domination and adoption of industrial technology

16 Development of business intelligence and market feasibility

17 Enhancement of linkages among big industries and small medium industries

18 Establishment and strengthening research and development institute as well as industrial education and training

19 Development and application of standardization (Indonesian National Standards, technical specification, code of practice, green industry standards and standards of industrial estates ) also strengthening standardization of infrastructure

20 Acceleration for development of industrial region

21 Affirmative policy for small and medium industry

22 Strengthening the institutionals of

promotion of small and medium

industry

7. National Manufacturing Industry’s Development Policy

27

8. Estimated Investment Needs for Manufacturing Industry

2014

210

2015

270

2020

618

2025

1,000

2035

4,150

* Source: Ministry of Industry

28

*IDR TRILLION (1 US $ + 13.000 IDR)

V. DEVELOPMENT OF THE MANUFACTURING

INDUSTRIAL ESTATE

29

EAST INDONESIA WIDE AREA : 67,52 % POPULATION : 18,68 % N. OF INDUSTRY : 4,44 %

WEST INDONESIA WIDE AREA : 32,48 % POPULATION : 81,32 % N. OF INDUSTRY : 95,56 %

JAVA ISLAND WIDE AREA : 6,8 % POPULATION : 57,5 % N.OF INDUSTRY : 90 %

REGIONAL INEQUALITY

30

1. Regional Development In-equality Between Java and Outside Java

2. The Direction of Development Policy of Manufacturing Industrial Estates

OUTSIDE JAVA Natural resource based industrial estates (renewable and non-

renewable)

Enhance the efficiency of logistic system

Industrial estates as main driver of new economic growth centers

JAVA High technology based industrial estates

Labor-intensive industrial estates

Industrial Estates oriented to consumer goods industry

31

32

3. Development of 14 Industrial Estates Outside Java

Kuala Tanjung Industrial Estate

Landak Industrial Estate Palu Industrial Estate Teluk Bitung Industrial Estate

Buli Industrial Estate

Ketapang Industrial Estate

Batu Licin Industrial Estate

Teluk Bintuni Industrial Estate

Sei Mangkei Industrial Estate

Tanggamus Industrial Estate

Jorong Industrial Estate

Bantaeng Industrial Estate

Morowali Industrial Estate

Konawe Industrial Estate

Aluminum Industry, CPO Processing Industry

Rubber Industry, CPO CPO Processing

Industry

Rattan, Rubber, Cocoa (agro), and Smelter industries

Agro and Logistic Industries

Smelter, Ferronickel, Stainless steel and

downstream stainless steel

Alumina Industries Steel Industry

Oil& Gas, Fertilizer Industries

CPO Processing Industry

Maritime and Logistic Industries

Steel Industry, CPO Processing Industry







33

14 Industrial Estates No. Industrial Estate Name Area

(Ha) Work Force (Persons)

Anchor Industry Focus of Industry

1 Teluk Bintuni, West Papua 2,112 51,500 PT. Pupuk Indonesia Fertilizer & Petrochemical Industries

2 Buli, Halmahera Timur, North Maluku

300 10,000 PT. Feni Haltim Ferronickel Industry

3 Bitung, North Sulawesi 534 90,000 PT. Pelindo Logistic & Agro Industries 4 Konawe, South-East

Sulawesi 5,500 18,200 Jiangsu Delong Nickel

Industry Co. Ltd Ferronickel Industry

5 Morowali, Central Sulawesi 1,200 80,000 PT. Sulawesi Mining Investment

Ferronickel Industry

6 Palu, Central Sulawesi 1,500 165,000 PT. Bangun Palu Sulteng Rattan base, Agro, Multivarious Industries

7 Bantaeng, South Sulawesi 3,000 163,200 PT. Hwadi dan Bantaeng Sigma Energi

Ferronickel Industry

8 Ketapang, West Kalimantan 1,000 10,000 PT. Well Harvest Winning Alumina Refinery

Aluminum based industry

9 Landak, West Kalimantan 306 33,600 Rubber Processing Industry 10 Batulicin, Tanah Bumbu,

South Kalimantan 530 10,000 PT. Meratus Jaya Iron and

Steel Steel Industry

11 Tanggamus, Lampung 3,500 104,800 PT. Repindo Jagat Raya Maritime Industry 12 Kuala Tanjung, Batu Bara,

North Sumatera 1,000 113,200 PT. Inalum Aluminum based industry

13 Sei Mangkei, Simalungun, North Sumatera

2,002 83,300 PT. Unilever Oleo chemical Indonesia

CPO Processing Industry

14 Jorong, South Kalimantan 6,370 30,000 PT. Semeru Surya, PT Delta Prima

Steel Industry & Agro Industries

Profile 1. Onar Baru Villages, District of Sumuri, Teluk Bintuni Regency of West Papua

2. Land Areas ±2112 Ha 3. Base of Industries : Fertilizer and Petrochemical 4. Value of Investments ± Rp 31,4 Trillion 5. Managed By PT Pupuk Indonesia

Progress 1. Land Status is “APL” which means it is NOT on the status of PROTECTED FOREST and can be used for other purposes, such as for industry.

2. Metering of the land has already undertaken by BPN (National Land Agency) of West Papua Province;

3. Developing Government Regulation on stipulating indigenous people’s land right

Actions 1. Facilitating to solve indigenous people’s land rights 2. Facilitating of relocating 88 local householders 3. Facilitating to build road access to industrial estate ±

30 Km 4. Facilitating to build the Power Plant ±200 MW 5. Facilitating to build the standard water installation

±2000 L/second 6. Facilitating on assigning industrial estate

administrator 7. Facilitating to map out the detailed spatial plan

outside industrial estate.

PRODUCT

LABOR

DIRECT INDIRECT SUPPORTER

polypropylene 3.000 4.500 15.000

Urea Fertilizer 4.000 5.000 20.000

Amount 7.000 9.500 35.000

Total 51.500

3.1. Teluk Bintuni Industrial Estate

34

Profile

1. Tanjung Merah Bitung Village 2. Land Area ±534 Ha 3. Base of Industries: Coconut, Fishery and Logistics 4. Value of Investment ± Rp 2 Trillion 5. Managed By PT Sulut Membangun

Progress 1. Land Status of 92,6 Ha is Ex HGU (Business Purposed Land Right ) owned by North Sulawesi and on going process to become HPL (Land Management Right) in National State Agency (BPN).

2. On going process on the development of Toll Highway from Manado to Bitung ±43 Km provided by the Central Government

3. Providing Power Plant ±150 MW 4. Accelerating reclamation process, creating ±247

Ha of new land.

Actions 1. Land Acquisition ±100 Ha 2. Build axis road to industrial estate 5 km 3. Facilitating on preparing industrial human resources

development 4. Facilitating and coordinating infrastructures

development outside industrial estate 5. Facilitating to build the standard water installation

±1200 L/second 6. Facilitating to map out the detailed spatial plan outside

industrial estate.

3.2. Bitung Industrial Estate

Employment : 90.000

Workers

35

Profile

1. Tawaeli Sub District, City of Palu, Central Sulawesi Province.

2. Land Area ±1500 Ha 3. Base of Industries: Rattan, Seaweed, Cocoa, and

Mineral 4. Value of Investment ± Rp 12,5 T 5. Managed By PT Bangun Palu Sulteng

Progress 1. Land Status 110 Ha has already owned by Palu City Government

2. Construction development of rubber based industry factory and essential oil factory

3. The axis road to the industrial estate has already established.

4. Electrical System has already provided by Sulawesi Interconnection

Actions 1. Land Acquisition ±100 Ha 2. Build road infrastructure inside industrial estate ( about

2 Km) and industrial estate technical services office 3. Facilitating on preparing industrial human resources

development 4. Facilitating and coordinating infrastructures

development outside industrial estate 5. Facilitating to build the standard water installation

±1500 L/second 6. Facilitating to map out the detailed spatial plan outside

industrial estate.

3.3. Palu Industrial Estate

Employment :165.000

Workers

Por

t Of

Pan

tolo

an

Lo

gis

tic

Zo

ne

36

Profile

1. Bahodopi Sub District , Morowali Regency 2. Land Areas ±1200 Ha 3. Integrated Industrial Ferronickel, Stainless Steel and all the

down streaming related industries 4. Value of Investment ± Rp 49,7 Trillion 5. Managed By Tsinghang Industrial Morowali Industrial Park

Progress 1. Land Status 1200 Ha has already owned by TIMIP (the industrial estate corporation)

2. Construction development of ferronickel factory Phase I with capacity of 300.000 tons/year (progress up to 90%) and Phase II with capacity of 600.000 tons/year the ground breaking and basic construction has been established.

3. Build power plant 65x2 MW (with progress to 90%) 4. Development of sea port and air port are yet still on the

process of getting the licensing

Actions 1. Facilitating to build the standard water installation 16.500 L/second

2. Facilitating electrical transmission provision to the industrial estates

3. Build polytechnic and Metal Based Mineral Innovation Centre

4. Build 8 tower of dwelling for 1000 workers 5. Build Hospital Type C 6. Facilitating to map out the detailed spatial plan outside

industrial estate. 7. Facilitating to build sea port and air port

3.4. Indonesia Morowali Industrial Estate

Employment: 80.000

Workers

37

Profile

1. Buli Sub District, East Halmahera Residency 2. Land Area ±300 Ha 3. Integrated Industrial Ferronickel, Stainless Steel and

all the down streaming related industries 4. Value of Investment ± Rp 4,4 T 5. Managed By PT FeNi Haltim

Progress 1. Land Status 300 Ha has already owned by PT Antam Persero

2. Completion of sea port development which integrated with industrial estate

3. Several industrial estate facilities has already been built, such as: hostel, administrator office, and oxygen plant

4. Request for Tax holiday from PT FeNi Haltim is still on the discussion process in the Ministry of Finance’s fiscal team

Actions 1. Facilitating to build the standard water installation 1.000 L/second

2. Build waste treatment and landfills facilities 3. Build axis road from sea port to industrial estate for

about 1 Km and to Town site about 2 Km 4. Facilitating on developing steamed powered electricity power

plant 2x110 MW 5. Facilitating to map out the detailed spatial plan outside

industrial estate.

3.5. Halmahera Timur Industrial Estate

Employment: 10.000

Workers

38

Profile

1. Bondoiala and Kapoiala Sub District 2. Land Area ±5500 Ha 3. Integrated Industrial Ferronickel, Stainless Steel and

all the down streaming related industries 4. Value of Investment ± Rp 28,7 T 5. Managed By PT Konawe Putra Propertindo

Progress 1. Land clearing and basic construction has already been undertaken. There are an on going process on the development of several facilities such as: offices , mess , and the finishing phase of sea port .

2. Endorsement Legal Letter from the Governor of Southeast Sulawesi and Head of Konawe Residency has already been accepted

Actions 1. Facilitating on reviewing the Konawe Residency Spatial Plans and Southeast Sulawesi Spatial Plans

2. Accelerating the process for Environmental Feasibility Assessment of Industrial Estate in the Province Environmental Committee Office.

3. Facilitating Sea Port License Recommendation from the Governor

4. Facilitating to build power plant and for phase I should provide 10 MW of electricity

5. Facilitating to map out the detailed spatial plan outside industrial estate.

3.6. Konawe Industrial Estate

Employment: 18.200

Workers

39

Profile

1. Sub district Pajukukang Bantaeng Residency 2. Land Area ± 3000 Ha 3. Integrated Industrial Ferronickel, Stainless Steel and

all the down streaming related industries 4. Value of Investment ± Rp 24,4 T 5. Managed By kawasan PT Bantaeng Industrial Persada

Progress 1. Completion of the development of Industrial Estate’s Masterplan dan Strategic Plan for area of 3000 ha.

2. The ground breaking of the development of Steamed Powered Electricity Plant 2 X 300 MW has already undertaken by PT Hwadi (China-Malaysia) and PT Bantaeng Sigma Energi.

3. Land Clearing is already settled by PT Titan for Ferronickel Industry for area of 300 Ha

Actions 1. Facilitating Environmental Feasibility Assessment in Industrial Estate.

2. Facilitating to build sea port for industrial estate 3. Facilitating to build the standard water installation

for industrial estate 4. Facilitating to build a new road for traffic diversion

from the old and high jam road 5. Facilitating to map out the detailed spatial plan

outside industrial estate.

3.7. Bantaeng Industrial Estate

Employment: 163.200

Workers

40

Profile 1. Batubara Residency, North Sumatra Province

2. Land Area ±1000Ha 3. Base of Industry : Alumina 4. Value of Investment ± Rp 4,5 T 5. Anchor Industry PT Inalum

Progress 1. To accelerate the finalization process of presidential decree to form the management board of industrial estate

2. Coordinating and accelerating the infrastructures development and land provision

Actions Infrastructure Development: 1.Build railroad from Bandar Tinggi to Kuala Tanjung (22,15 km) 2.Road Systems:

Main Road (volume 97,125 m2)

Surrounding Road (volume 271,950 m2)

KAWASAN INDUSTRI TELUK BINTUNI 3.8. Kuala Tanjung Industrial Estate

(North Sumatra)

Employment:

± 113.239 Workers 41

Profile

1. Located at Simalungun Residency 2. Land Areas ±2.002 Ha 3. Base of Industries : CPO Processing 4. Value of Investment ± Rp 9,5 T 5. Anchor Industry PT Unilever Olechemical

Indonesia

Progress 1. Management Board of Special Economic Zone has already established (Presidential Decree No. 40 / 2014)

2. Innovation Centre facility for Palm Oil has already operated in the area

3. Has already have anchor industry inside the estate (PT. Unilever Oleo chemical Indonesia)

Actions 1. Build railroad from KEK Sei Mangkei to Sepur

Simpang (2,9 Km)

2. Uplifting the function of existing railroad KA

Gunung Bayu - Perlanaan (4,15 km) to meet the

industrial standard

3. Facilitating the equipment for innovation center

KAWASAN INDUSTRI BITUNG

Employment: ± 83.300 Workers

3.9. Sei Mangkei Industrial Estate

(North Sumatra)

42

Profile

1. Located at: Kota Agung Timur Sub District, Limau Sub District and Cukuh Balak Sub District of Tanggamus Residency

2. Land Areas ±3500 Ha 3. Base of Industry :Maritime 4. Value of Investment ± Rp 17,5 T 5. Anchor Industry PT Repindo Jagad Raya

Progress 1. anchor industry has already exist (PT. Repindo Jagad Raya)

Actions 1. On going intensive discussion between Tanggamus Residence Government, Pertamina, and Ministry of Industry to revoke the land restriction for industrial estate which is in accordance to National Land Agency Regulation maximum should be 400 ha. PT Repindo (the administrator of industrial estate) was requested by the stakeholder to finish the business plan of the estate.

2. Enhancing /upgrading the existing road to Maritime

Industrial Estate (Width 8m, Length 10km).

3. Land Acquisition (In 2016).

4. Build Vocational Training Center Balai Latihan Kerja .

5. Build Power Plant (In 2016).

6. Build streetlight System

7. Upgrading the development of sea port inside industrial

estate (Initiated by Ministry of Transportation).

8. Development of Steam-Powered Electricity Power Plan.

KAWASAN INDUSTRI PALU

Employment:

± 104.800 Workers

3.10. Tanggamus Industrial Estate

(Lampung)

43

3.11. Batulicin Industrial Estate

(South Kalimantan)

Employment: 10.000 Workers

Profile

1. Located at Simpang Empat Sub district and Karang Bintang Sub district of Tanah Bambu Residency

2. Land Areas 530 Ha 3. Base of Industry : Steel 4. Value of Investment : Rp 2,12 Trillion 5. Anchor Industry PT Meratus Jaya Iron and Steel

Progress 1. Has already have Master plan and Strategic Plan of industrial estate

2. Facilitating the Government of South Kalimantan to manage the industrial estate since it is owned by the South Kalimantan Government (not by private sector)

3. Facilitating the Tanah Bambu Residency Government to map out the detailed spatial plan

Actions 1. Build dock with JT: 750 m , depth :22 m

2. Build Alternative road system (about 15) km

from outer ring road

3. Develop integrated Masterplan of the city,

industrial estate, sea port, air port, trade

center, residency, and tourism area

4. Shifting land status from Protected Forest Area

to be an area dedicated for industrial estate

(On going process since 2014)

44

3.12. Ketapang Industrial Estate

(West Kalimantan)

Profiles

1. Located at South Matan Hilir Sub district , Ketapang Residency

2. Land Areas 1.000 Ha 3. Base of Industry : Alumina 4. Value of Investment: Rp 4 Trillion 5. Anchor Industry PT. Well Harvest

Winning Alumina Refinery

Progress 1. Facilitating Government of Ketapang Residency to adjust the Residency Spatial Plan

2. Facilitating anchor industry to accelerate the development of industrial estate

3. Groundbreaking will be on September 2015

Actions 1. Build sea port as an entry gate to the

estate for unloading the industrial

products

2. Enhancing/ Upgrading the province

road in the surrounding area

3. Upgrading the access road from

industrial estate to the sea port. Employment: 10.000 Workers

JALAN PROPINSI

BATAS WILAYAH PERENCANAAN

KEMENTERIAN PERINDUSTRIANDIREKTORAT JENDERAL PENGEMBANGAN PERWILAYAHAN INDUSTRI

DIREKTORAT PENGEMBANGAN FASILITASI KEINDUSTRIAN WILAYAH I

PENGEMBANGAN KAWASAN INDUSTRIKORIDOR KALIMANTAN

(NUNUKAN, PANGKALANBUN DAN KETAPANG)

MASTER PLAN

KAWASAN INDUSTRI PAGAR MENTIMUN

KABUPATEN KETAPANG

GAMBAR

KETERANGAN

SUMBER PETA

0 1.000 3.000 m

SKALA 1 : 30.000

1. Keputusan Bupati Ketapang No: 248/PEM/2013

2. Keputusan Bupati Ketapang No: 249/PEM/2013

GARIS PANTAI

2.000

LUAS KAWASAN INDUSTRI = 1.000 Ha

(IZIN LOKASI PT. KETAPANG BANGUN SARANA)

UMKM

ANEKA INDUSTRI

PERUMAHAN

SARANA OLAH RAGA

SARANA PERIBADATAN

AREA KOMERSIAL

KANTOR MANAJEMEN

PERKANTORAN

INDUSTRI SEDANG

INDUSTRI BESAR

TRADE CENTER

MEDICAL CENTER

PEMADAM KEBAKARAN

POWER STATION

FUEL STATION

IPAL

PENGELOLAAN LIMBAH KERING

TAMAN, MEDIAN, JALUR

HIJAU JALAN, BUFER, KOLAM

INDUSTRI

PERGUDANGAN

LIQUID STORAGE CENTER

PENGELOLAAN AIR BERSIH

PUSAT PENGEPAKAN

PARKIR ANGKUTAN KARYAWAN

MEDIA CENTER

CONVENTION CENTER

INFRASTRUKTUR KAWASAN

FASILITAS PENUNJANG

RUANG TERBUKA HIJAU

PENGGUNAAN LAHAN

LUAS KAWASAN INDUSTRI

JALAN DAN SALURAN

1.009,90

LUAS (Ha)

04

04

03

01

01

02

01

02

03

04

25,41

61,44

101,63

270,58

05

06

07

08

09

10

11

12

13

14

16

17

15

18

19

20

21

22

23

24

25

08

06

05

07

25

25

25

25

12

13

13

25

12

04

11

03

01

02

1009

07

08

22

23

2419

2021

18

18

14

25

25

15

17

16

14

(Keta

pang - K

endaw

angan)

Selat Karimata

Ke

Pe

lab

uh

an

Jalan P

ropinsi

5,93

10,70

12,45

42,24

10,12

7,11

11,27

15,86

17,23

22,92

2,94

1,19

3,83

21,69

2,52

2,16

13,68

2,68

6,04

3,70

217,40

117,12

UMKM

ANEKA INDUSTRI

PERUMAHAN

SARANA OLAH RAGA

SARANA PERIBADATAN

AREA KOMERSIAL

KANTOR MANAJEMEN

PERKANTORAN

INDUSTRI SEDANG

INDUSTRI BESAR

TRADE CENTER

MEDICAL CENTER

PEMADAM KEBAKARAN

POWER STATION

FUEL STATION

IPAL




INDUSTRI

PERGUDANGAN



PUSAT PENGEPAKAN


MEDIA CENTER

CONVENTION CENTER


FASILITAS PENUNJANG

RUANG TERBUKA HIJAU

PENGGUNAAN LAHAN


JALAN DAN SALURAN

1.009,90

LUAS (Ha)

01

02

03

04

25,41

61,44

101,63

270,58

05

06

07

08

09

10

11

12

13

14

16

17

15

18

19

20

21

22

23

24

25

5,93

10,70

12,45

42,24

10,12

7,11

11,27

15,86

17,23

22,92

2,94

1,19

3,83

21,69

2,52

2,16

13,68

2,68

6,04

3,70

217,40

117,12

UMKM

ANEKA INDUSTRI

PERUMAHAN

SARANA OLAH RAGA

SARANA PERIBADATAN

AREA KOMERSIAL

KANTOR MANAJEMEN

PERKANTORAN

INDUSTRI SEDANG

INDUSTRI BESAR

TRADE CENTER

MEDICAL CENTER

PEMADAM KEBAKARAN

POWER STATION

FUEL STATION

IPAL




INDUSTRI

PERGUDANGAN



PUSAT PENGEPAKAN


MEDIA CENTER

CONVENTION CENTER


FASILITAS PENUNJANG

RUANG TERBUKA HIJAU

PENGGUNAAN LAHAN


JALAN DAN SALURAN

1.009,90

LUAS (Ha)

01

02

03

04

25,41

61,44

101,63

270,58

05

06

07

08

09

10

11

12

13

14

16

17

15

18

19

20

21

22

23

24

25

5,93

10,70

12,45

42,24

10,12

7,11

11,27

15,86

17,23

22,92

2,94

1,19

3,83

21,69

2,52

2,16

13,68

2,68

6,04

3,70

217,40

117,12

45

3.13. Mandor Industrial Estate

(West Kalimantan)

KIM II

07

PUSAT PENGEPAKAN

INDUSTRI KARET

INDUSTRI KECIL MENENGAH

ANEKA INDUSTRI

PERUMAHAN

SARANA OLAH RAGA

SARANA PERIBADATAN

COMMUNITY CENTER

KANTOR MANAJEMEN

PERKANTORAN

INDUSTRI SEDANG

INDUSTRI BESAR

MEDIA CENTER

EXHIBITION CENTER

AREA KOMERSIAL

MEDICAL CENTER

PEMADAM KEBAKARAN

POWER STATION

FUEL STATION

IPAL



TAMAN

RTH/BUFFER

PEMAKAMAN

PERDAGANGAN

PUSAT INOVASI


CONVENTION CENTER

INDUSTRI

KECIL

MENENGAH

KAWASAN INDUSTRI MANDOR II

KABUPATEN LANDAK

IPAL

PENGELOLAAN

LIMBAH

KERING

PEMADAM

KEBAKARAN

KANTOR

MANAJEMEN

PUSAT

PENGEPAKAN

CONVENTION

CENTER

MEDICAL

CENTER

POWER

STATION

INOVATION

CENTER

PEMAKAMAN

FUEL

STATION

MEDIA

CENTER

EXHIBITION

CENTER

PENGELOLAAN

AIR

BERSIH

PERKANTORAN

SARANA

PERIBADATAN

COMMUNITY

CENTER

PERKANTORAN

PARKIR

ANGKUTAN

KARYAWAN

PERDAGANGAN

AREA

KOMERSIAL

PERUMAHAN

INDUSTRI

KARET

INDUSTRI

SEDANG

INDUSTRI

BESARINDUSTRI

BESAR

INDUSTRI

SEDANG

INDUSTRI

SEDANG

ANEKA

INDUSTRI

ANEKA

INDUSTRI

ANEKA

INDUSTRI

ANEKA

INDUSTRI

INDUSTRI

KARET

INDUSTRI

KARET

INDUSTRI

KECIL

MENENGAH

Profiles

1. Mandor Sub District 2. Land Areas 306 Ha 3. Base of Industry: Rubber Processing 4. Value of Investment Rp 1,22 Trillion 5. Anchor Industry PT. Cakrawala Energi

Nusantara

Progress 1. Land Area 306 Ha (Owned by Residency Government)

2. Administrator for Industrial Estate has already established

3. Coordinating the access road development from Pontianak sea port to Industrial estate

4. Coordinating the acceleration of infrastructure development inside the industrial estate, such as: Power Plan, road, telecommunication, Waste Treatment System.

Actions 1. Build axis road from industrial estate to Pontianak

Sea Port 34km.

2. Build water reservoir to manage the water from

mandor River for the purpose of industrial

activities..

4. Build tank farm for latex.

5. Build Electricity System from main road to

industrial estate (about 2 km) and build power plan

substation

6. Build Waste Treatment System

7. There are already potential investors plan to invest

in the area (PT Djarum and PT Sampoerna) Employment: 33.600 Workers

KIM I

46

3.14. Jorong Industrial Estate

(South Kalimantan)

Employment: 10.000 Workers

Profile

1. Located at Jorong of Tanah Laut Residency 2. Land Areas 6,370 Ha (including Swarangan

Pelaihari port 1 037 Ha) 3. Base of Industry : Steel & Agro Industries 4. Value of Investment : 5. Anchor Industry :

Progress 1. Facilitating the Government of South Kalimantan to manage the industrial estate since it is owned by the South Kalimantan Government (not by private sector)

2. Facilitating the Tanah Laut Residency Government to map out the detailed spatial plan

Actions 1. Facilitating to build sea port for industrial

estate

2. Develop integrated Masterplan of the city,

industrial estate, sea port, air port, trade

center, residency, and tourism area

3. Facilitating to map out the detailed spatial

plan outside industrial estate

4. Facilitating on assigning industrial estate

administrator

47

4. Development of Manufacturing Industrial Estate

Industrial Estates Standard, assures the quality of industrial Estates according to Government regulations so it gives quality certainty for industrial Estates in Indonesia

Industrial Estates Award, drives the management of industrial Estates in improving the quality of industrial Estates

Halal Industrial Estates, gives the easiness for industrial activities in searching for locations, facilities, and infrastructures which comply to halal requirements. Halal products are not associated with religion issue anymore, but hygiene, health, and quality aspects

Eco Industrial Estate, minimize negative impacts from the industrial development

Establishing industrial Estates as Objek Vital Nasional Industri (OVNI) or National Industry Vital Objects

48

VI. ENHANCE INDONESIA’S INVESTMENT CLIMATE

49

1. Significant Increase of Electricity Infrastructure in 2015-2019

Electricity Infrastructure Development in 2015-2019

Electricity Power Infrastructure

• Power Generator: Construction phase

Planning phase

Total

• Transmission

• Sub-station

7.4 GW 35.5 GW

42.9 GW

46.600 kms

105 GVA

Capital expenditure requirements: • PLN • Private Sectors Total

IDR IDR

609 Trillion 580 Trillion

IDR 1.189 Trillion

To secure 6.7% of economic growth, with 8.8% of growth in demand for electricity, and

electrification ratio target of 97.2%

(Source: Ministry of Energy and Mineral Resources, Republic of Indonesia) 50

Sumatera:

Kalimantan:

Sulawesi:

Maluku: PLN

IPP Total

: 2.79 GW (23 unit) : 5.96 GW (49 unit) : 8.75 GW (72 unit)

PLN IPP Total

: 0,92 GW (18 unit) : 0,96 GW (12 unit) : 1,87 GW (30 unit)

PLN IPP Total


PLN IPP Total

: 0,26 GW (18 unit) : 0,02 GW ( 4 unit) : 0,28 GW (22 unit)

Papua: PLN IPP Total

: 0,22 GW (19 unit) : 0,12 GW (17 unit) : 0,34 GW (36 unit) Sumatera

: Kalimantan:

Sulawesi:

Maluku: PLN

IPP Total


PLN IPP Total

: 0.88 GW (28 unit) : 0.09 GW ( 7 unit) : 0.97 GW (35 unit)

PLN IPP Total


PLN IPP Total

: 0.05 GW (5 unit) : - : 0.05 GW (5 unit)

Papua: PLN IPP Total

: 0.07 GW (8 unit) : - : 0.07 GW (8 unit)

Maluku Kalimantan Sumatera Sulawesi Papua

Java-Bali Jawa-Bali: Nusa Tenggara PLN IPP Total


Nusa Tenggara: Indonesia: PLN : 18,42 GW (232 unit) PLN

IPP Total

: 0,66 GW (16 unit) : 0,05 GW ( 9 unit) : 0,70 GW (25 unit)

Jawa-Bali: IPP : 24,51 GW (260 unit) PLN IPP Total

: 1.21 GW ( 6 unit) : 1.75 GW (12 unit) : 2.96 GW (18 unit)

Total : 42,93 GW (492 unit) Nusa Tenggara: PLN IPP Total

: 0.19 GW (15 unit) : 0.08 GW ( 6 unit) : 0.27 GW (21 unit)

Program: 35,56 GW On Going: 7,37 GW

Power Generator Sites Map of 35.5 GW and 7.4 GW Program

(Source: Ministry of Energy and Mineral Resources, Republic of Indonesia)

PLN: State-owned Electricity Company IPP: Independent Power Producers

51

Sumatera:

70 kV 150 kV 275 kV 500 kV 500 kVDC TOTAL

: 611 kms : 11.239 kms : : :

5.082 kms 1.130 kms 1.243 kms

Kalimantan: Sulawesi: 70 kV 150 kV TOTAL

Maluku: 70 kV 150 kV TOTAL

Papua: 70 kV 150 kV TOTAL

150 kV 275 kV TOTAL

: 7.703 kms : 180 kms : 7.883 kms

: 86 kms : : :

237 kms 416 kms 653 kms

: : :

304 kms 60 kms 364 kms

: 4.900 kms : 4.986 kms : 19.305 kms

Maluku Kalimantan Sumatera Sulawesi Papua

Java-Bali Nusa Tenggara

Java-Bali: 70 kV 150 kV 500 kV 500 kVDC TOTAL

: : : :

44 kms 8.431 kms 2.411 kms 300 kms

Nusa Tenggara: 70 kV 150 kV TOTAL

INDONESIA:

: 1.408 kms : 813 kms : 2.221 kms

70 kV 150 kV 275 kV 500 kV 500 kVDC TOTAL

: 2.689 kms : 11.185 kms : 33.562 kms : : :

5.262 kms 3.541 kms 1.543 kms

: 46.597 kms

Transmission Requirement Map of 35.5 GW and 7.4 GW Program

(Source: Ministry of Energy and Mineral Resources, Republic of Indonesia) 52

no

2. Connectivity to be accelerated

Miangas

Maratua Singkawang Pohuwato

Muara Te we h Tojo Una-Una Taria Engga

Ke nyam Aboy

Koroway Batu

Namniwe l

Ke rtajati

Moa

15 airports and 24 major seaports location

USD 63%

increase National budget for infrastructure, from IDR 178 T in

2014 to IDR 290 T

(USD 24.2 B) in 2015.

141billion Investment opportunities in infrastructure

offered to private

sectors, 31% of

total investment required in 2015- 2019.

Source: National Medium Term Development, Planning, 2015-2019, Bappenas, Dec 2014 & MoF, Feb 2015; prepared by The Investment Coordinating Board of the Republic of Indonesia

Development Sector in

Connectivity

Baseline

Target

2014 2019

New road

(km, total in 5 years)

1,202

2,650

New toll road

(km, total in 5 years)

807

1,000

Railway (km)

5,434

8,692

Seaport (location)

278

450

Port dwelling time (day)

6-7

3-4

Airport (location)

237

252

Flight on-time

performance (%)

75

95

Broadband coverage

(% of district)

82

100

Crossing dock (location) 210 275

Market share of urban

public transport (%)

23

32

Logistic cost to GDP (%)

24.2

19.2

53

Investors submit and obtain permits exclusively at BKPM with time certainty & online

monitoring.

FRONT OFFICE BACK OFFICE Electronic

Investment Information

& License Service

(SPIPISE)

BKPM Desk BKPM Desk

Ministry/ Institution

Desk


Desk

Online System Ministry/ Institution

Desk


Desk Investors Online System Ministry/

Institution Desk


Desk


Desk


Desk

1. Documents admission 2. Consultation

Licenses are processed

Call Centre in Indonesia 0807-100-

BKPM

Online Monitoring (Servi ce Performa nce Moni tori ng Da s hboa rd)

Source: The Investment Coordinating Board of the Republic of Indonesia 54

3. Improving of Licensing

22Ministries/institutions integrated in the investment one-stop service at BKPM

Ministry of Energy & Mineral Resources 10 licenses related to power & geothermal

Ministry of Health 9 licenses related pharmaceutical production, medical equipment

production Ministry of Environment & Forestry

35 b business licenses Ministry of Tourism

9 licenses related tourism and economy creative sectors Ministry of Industry

6 business licenses

Ministry of Communications and Information Technology

5 licenses related post management, telecommunication and broadcasting

Ministry of Agrarian and Spatial/National Land Agency

Centralization of issuing land rights licenses for foreign direct investment

Ministry of Manpower 3 b business licenses and principal licenses

Ministry of Defense Stationed Liaison Officer for consultation Ministry of Public Works & Public Housing

7 business licenses

Ministry of Trade 5 licenses Ministry of Maritime & Fishery

2 business licenses

Ministry of Agriculture 5 business licenses Ministry of Education & Culture

2 business licenses

Ministry of Finance Import duty facility for machineries,

goods, materials for production Indonesian National Police

6 business license in safeguarding business

Ministry of Transportation 7 business licenses

Supporting Institutions: Nat’l Food & Drugs Control Agency, Nat’l Crypto

Agency, Nat’l Standardization Ministry of Law & Human Rights

1 business licenses

Agency, Electricity Company

55 Source: The Investment Coordinating Board of the Republic of Indonesia

Timeline of Investment One-Stop Service (PTSP) Covering all national-level licenses by 2015(Q2) & integrating all regions by January 2017.

Launching Online

Licensing at BKPM

December 2014

January 2015

February – December 2015

2016

Regional PTSP

34 provinces 561 districts

Tryout National

PTSP (15 Jan)

Launching National

PTSP (26 Jan)

Regional PTSP 24 provinces – 120

districts

Progress • 77 liaison officers from 22 ministries/institutions are assigned for faster handling and

providing consultation. 150 permits are processed at PTSP BKPM. 1,198 business fields are served at PTSP BKPM. Online application have been available for 15 licenses from BKPM and several ministries. Licenses from other ministries/institutions will follow. Simplification of licensing process is in progress.

• • •

•


5 cases with total value IDR 14 trillion (USD 1.2billion) are solved. 94 cases with total value IDR 478 trillion (USD 39.8 billion) are under facilitation.

BKPM as a Clearing House

Coordinating with related governmental institutions authorized in licensing process and mediation between

companies and related stakeholders

Obstacle Location Sector 22 cases of land issues 26 cases of licensing at any levels 2 cases of forests land use permit 3 cases of tax holiday facilities

17 cases of regulation at technical ministries 9 cases of regional government res- ponse 6 cases of raw materials issues 7 cases of electricity issues 5 cases of PPP scheme 1 case of copyright issue

14 Wes t Java 5 Central Java 4 Ea s t Kalimanta n 9 Banten 2 East Java

3 North Sumatera 5 South Kal i ma ntan 1 Jambi 10 Jakarta 3 Central Kalimantan 1 South Suma tera 1 Lampung 2 Bali

3 North Sulawes i 7 West Papua 3 North Maluku 3 Pa pua 2 Wes t Kalimanta n

1 West Nusa Tenggara 2 Riau Islands 1 Central Sulawes i 2 Yogyakarta 3 South Sulawes i 3 Riau 1 Southeast Sulawes i 7 unlocated

8 Fi s hery 4 Planta ti on 1 Furni ture i ndus try 3 Suga r i ndus try 13 Chemical a nd pha rma ceutical

12 El ectri city, gas and wa ter suppl y 11 Infra s tructure 7 Tra ns porta tion & telecommuni ca ti on 2 Textile indus try 2 Meta l , ma chi nery & el ectroni c industry 6 Trade and repair 4 Food indus try 4 Tourism 17 Mi ni ng 2 Real es ta te, i ndus trial area and offi ces 2 Other i ndus tri es


4. Debottlenecking of Investment Realization

Investment in Indonesia is regulated by Presidential Regulation No. 39 of 2014 on List of Business Fields Closed to Investment and Business Fields Open With Conditions to Investment.

Basically, a foreign investor is able to invest for 100% FDI, as long as it goes in accordance with the provisions in Presidential Regulation No. 39 of 2014.

Tax Holiday

Tax Allowance

Tariff Waiver in Importing Machine and Raw Material for Particular Industries

58

5. Investment Incentives Provided

5.1. Tax Holiday

Pioneer industries eligible for obtaining tax

holiday include:

1. Basic metal industries

2. Refinery and basic petrochemical

industries

3. Machinery industries

4. Renewable resources industries

5. Telecommunication equipment

industries.

List of pioneering industries as intended above are specified

into list of industries which defined by Directorate General

of Industrial Development (Directorate General of Agro

Based Industry, Directorate General of Leading High

Technology Based Industry and the Directorate General of

Manufacturing Based Industry).

Who are the eligible beneficiaries??

Pioneer industries;

Minimum amount of investment: IDR

1 trillion (± US$ 110 million);

New company (established after

August 15th, 2010;

10% (ten percent) deposit of total

investment.

Requirements:

5-10 years income tax exemption

50% income tax reduction for 2 (two) years.

Incentives given:

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5.2. Tax Allowance (1/2)

This incentive is given to new investment or expansion of industries as follows :

Who are the eligible beneficiaries??

I. Particular Industries

1. Food Industry (chocolate and sugar confectionery

industry)

2. Textile Industry (manufacture of fabric for

industrial needs)

3. Coke and Refined Petroleum Products Industry

4. Chemicals and Chemical Products Industry

5. Pharmaceuticals, Medicinal Chemical and

Traditional Medicine Products Industry

6. Rubber and Plastics Products Industry

7. Basic Metal Industry

8. Fabricated Metal Products, Except Machinery and

Equipment Industry

9. Computer, Electronic and Optical Products

Industry

10. Electrical Equipment Industry

11. Machinery and Equipment Industry

12. Motor Vehicles, Trailers, and Semi trailers Industry

13. Other Transport EquipmentIndustry

14. Repair and Maintenance of Machinery and

Equipment

II. Particular Industries in Particular Regions

1. Food Industry (processing and preserving of

canned fruit and vegetables industry, margarine

industry, coconut cooking oil industry, sugar

industry, etc)

2. Textile Industry (preparation of textile fiber

industry, carpets and rugs industry, and non

woven industry)

3. Leather and Product Leather and Footwear

Industry

4. Paper and Paper Product Industry

5. Chemicals and Chemical Products Industry

6. Non Metal Mineral Goods Industry

7. Other Tranportation Eqipment Industry (only in

East Java, Kalimantan, Sulawesi, Maluku, Papua,

West and East Nusa Tenggara)

8. Repair and Maintenance of Machinery and

Equipment (only in East Java, Kalimantan,

Sulawesi, Maluku, Papua, West and East Nusa

Tenggara)

9. Treatment of waste

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5.2. Tax Allowance (2/2)

Requirements:

1. To companies established after

the enactment of PP 52/2011

(after 22nd December 2011)

Fulfill the requirements in the

Appendix I or Appendix II of

PP 52/2011

2. To companies established before

the enactment of PP 52/2011

(before 22nd December 2011)

Fulfill the requirements in the

Appendix I or Appendix II of

PP 52/2011

Minimum investment: IDR 1

trillion (± US$ 110 million);

Not yet reach commercial

production at the enactment

of PP 52/2011

Incentives Given:

1. 30% reduction on net income of investment

(distributed in 6 years).

2. Accelerated depreciation and amortization

3. Income tax of 10% or lower for dividends paid to

offshore taxpayers

4. Loss carry forward of 5-10 years depending on

following terms:

• + 1 year in a bonded industry zone

• + 1 year for employing at least 500 Indonesian

workers for five consecutive years

• + 1 year for investing at least IDR 10 billion

spending on economic and social infrastructure in

its business area

• + 1 year for spending of at least 5% of investment

within 5 years on R & D

• + 1 year for utilizing minimum 70% domestic raw

material on component in years.

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5.3. Exemption of Import Duty on Imported Machines/ Goods /Materials

This incentive is set in Minister Of Finance Regulation No. 76/2012 on Amendment to Minister Of Finance Regulation No. 176/2009 on the Exemption of Import Duty on Imported Machines, as well as Goods and Materials for the Building or Development of Industries in the Framework of Investment.

exemption of import duties.

import of machines, goods and materials for

the building or development of

industries

a. have not been produced domestically;

b. have been produced domestically but they have not met

the required specifications; or

c. have been produce domestically but their amount has

not met industrial needs

Incentives provided for the Building/Expansion of Industries:

Import duty exemption for 2 years

Import period can be extended according to the period of time for the

building/development of industries as contained in the import approval 62

Indonesian Expectation

• Encouraging Japanese companies to invest in Indonesia especially in 14 manufacturing industrial estates, especially in industries as follows :

(a) Mining processing; (b) Agro based industry; (c) Construction machineries and heavy equipment; and (d) Petroleum, gas and electric power;

• Japanese investors can build partnership with Indonesian company;

• The targeted market is not only Indonesian domestic market but also export market.

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Director General for Industrial Region Development, Ministry of Industry

Imam Haryono, Ph.D., mobile : +62 812 9991444 email : [email protected]

どうもありがとうございます

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THE DEVELOPMENT OF MANUFACTURING … (Capital) Surabaya Bandung Semarang Samarinda Makassar 9,558...

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