BKPM
INVESTMENT COORDINATING BOARD (BKPM) JAPAN INTERNATIONAL COOPERATION AGENCY
INVESTMENT OPPORTUNITIES STUDY FOR EACH PROVINCE OF EAST, WEST, CENTRAL AND SOUTH KALIMANTAN
S A E
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EXECUTIVE SUMMARY EAST KALIMANTAN
March, 2005
PT. PACIFIC CONSULINDO INTERNATIONAL INDONESIA (formerly PT.Mitrapacific Consulindo International)
EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
LIST OF CONTENTS Page
List of Contents ..................................................................................................
i
List of Tables ...................................................................................................... iii List of Figures ..................................................................................................... iv 1. OVERVIEW OF PROVINCIAL ECONOMY .................................................. 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8
1
Geomorphology ..................................................................................... Gross Regional Domestic Products....................................................... Current Export Import ............................................................................ Labor Force Situation ............................................................................ Labor Wage by Sector ........................................................................... Land Price in Major Kabupaten/Kota..................................................... Current Investment Realization ............................................................. Industries Location and Strategic Areas................................................
1 1 2 3 4 4 5 7
2. CURRENT SITUATION AND FUTURE PROSPECT OF INFRASTRUCTURE......................................................................................
9
2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9
River....................................................................................................... Road ...................................................................................................... Harbor .................................................................................................... Airport .................................................................................................... Electricity................................................................................................ Telecommunication................................................................................ Water Supply ......................................................................................... Industrial Estate ..................................................................................... Health Service Facilities and Living Condition for Expatriate................
9 11 11 12 13 14 14 15 15
3. CURRENT SITUATION AND FUTURE PROSPECT OF MAJOR SECTORS........................................................................................ 17 3.1 Major Sectors Analyses ......................................................................... 3.1.1 Oil and Gas ................................................................................. 3.1.2 Mining ......................................................................................... 3.1.3 Manufactures .............................................................................. 3.1.4 Trade........................................................................................... 3.1.5 Agriculture................................................................................... PT.PCII
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17 17 17 17 18 18
EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
3.1.5a 3.1.5b 3.1.5c 3.1.5d
Plantation ...................................................................... Land Availability for Plantation...................................... Forestry ......................................................................... Fishery...........................................................................
18 19 19 20
3.2 Promising Commodities Analyses ......................................................... 3.2.1 Gas Application Products ........................................................... 3.2.2 Coal Mining ................................................................................. 3.2.3 Dockyard and Heavy Equipment Repairing Center.................... 3.2.4 Palm Oil Products ....................................................................... 3.2.5 Cacao.......................................................................................... 3.2.6 Industrial Timber Estate (HTI), Pulp and Paper Industry ........... 3.2.7 Particleboard Industry................................................................. 3.2.8 Shrimp (Brackish Water Aquaculture) ........................................
20 20 21 23 23 25 26 27 28
4. CURRENT SITUATION AND FUTURE PROSPECT OF MAJOR STRATEGIC AREAS ...................................................................... 30 4.1 4.2 4.3 4.4 4.5
Tarakan City........................................................................................... Bontang City .......................................................................................... Samarinda City ...................................................................................... Balikpapan City...................................................................................... Business Development in Strategic Areas ............................................
30 31 32 33 33
5. CONSTRAINTS IN INVESTMENT CLIMATE............................................... 36 6. PROPOSAL OF PROSPECTIVE PROJECTS ............................................. 37 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8
Coal Mining Project Profile .................................................................... Oil Palm Plantation and CPO Processing Project Profile...................... Cooking Oil Project Profile..................................................................... Cacao Plantation and Beans Processing Unit Project Profile ............... Industrial Timber Estate (HTI), Pulp and Paper Project Profile............. Particleboard and MDF Project Profile .................................................. Shrimps (Brackish Water Aquaculture) Project Profile.......................... Dockyard and Heavy Equipment Repairing Center Project Profile.......
37 39 41 44 46 48 50 52
ATTACHMENT Attachment 1.
Government Institution for Investment Contact and Selected Companies in East Kalimantan................................. 55
Attachment 2.
List of Large Companies (Exporters) in East Kalimantan........ 58
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
LIST OF TABLES Page
Table 1-1
Total GRDP at Constant 1993 Prices by Kalimantan Provinces, 1999-2003 (Million Rupiah) ..........................................
2
Values of Export and Import 2000 – 2003 (unit: million Rp.) ..................................................................................................
2
Values of Non Oil and Gas Export by Sector and Its Contribution of East Kalimantan (unit: million USD) .......................
3
Table 2-1
Number of River Port at East Kalimantan Province, 2003 ..............
9
Table 2-2
Condition of Road in East Kalimantan ............................................ 11
Table 2-3
Number of Ship Serve Transportation Among Islands in East Kalimantan, Year 1998-2003 .................................................. 11
Table 2-4
Facilities in Main Harbor in East Kalimantan................................... 12
Table 2-5
Flight and Passenger Volume by Airports, 2003............................. 13
Table 2-6
Cargo and Baggage Volume by Airports, 2003............................... 13
Table 2-7
Number of Ordinary Telephone Service by Type and Kabupaten or City............................................................................ 14
Table 2-8
Industrial Estates in East Kalimantan.............................................. 15
Table 3-1
Land Area Availability for Proposed Plantation Project Investments ..................................................................................... 19
Table 1-2 Table 1-3
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
LIST OF FIGURES Page
Figure 1-1
Share of GRDP by Economic Sector, East Kalimantan, 2003........
2
Figure 1-2
General Profile of Educational Attainment in East Kalimantan .......
4
Figure 1-3
Domestic Investment (PMDN) Realization by Sector .....................
5
Figure 1-4
Breakdown of Domestic Investment (PMDN) in Industries (68.75%) ..........................................................................................
6
Figure 1-5
Foreign Investment Realization by Industry ....................................
6
Figure 1-6
Breakdown of Foreign Investment (PMA) in Industries (28.40%) ..........................................................................................
7
Map of Resources and Industrial Spreading in East Kalimantan Province........................................................................
8
Figure 1-7 Figure 2-1
Map of Infrastructures in East Kalimantan Province ....................... 16
Figure 3-1
Natural Gas Downstream and Application Products....................... 21
Figure 6-1
Trend of Indonesian Export Coal Price and Australia-Japan Benchmark Coal Price .................................................................... 39
Figure 6-2
Trend of Indonesian Palm Oil (CPO) Price at Rotterdam Market ............................................................................................. 41
Figure 6-3
Trend of Indonesian Cooking Oil Price at Rotterdam Market ......... 43
Figure 6-4
Trend of Cacao Beans Price in London and New York Market, 1991 - 2003 ........................................................................ 46
Figure 6-5
Trend of Export Price of East Kalimantan Tiger Shrimp* (1999 – 2003) .................................................................................. 52
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
INVESTMENT OPPORTUNITIES STUDY FOR
EAST KALIMANTAN
EXECUTIVE SUMMARY
I.
OVERVIEW OF PROVINCIAL ECONOMY
1.1 Geomorphology Dominant soils in East Kalimantan consist of Red Yellow Podsolik in its hilly and mountainous areas, Alluvial soil is in most of undulating areas and Organosol Gley humus in most of coastal lowland areas. Major development area locates in 25-100 m altitude with most of remote upstream areas lies over 400 m above sea level. Topography is classified into 4 classes of sloping category: 0-2% slope of wetland coastal areas occupies 2,093,677 Ha (10,44% of total East Kalimantan), 2-15% slope of alluvial areas occupies 2,431,802 Ha (12.14%), 15-40% slope of undulating and hilly area covers 4,476,122 Ha (22,34%) an over 40% of hilly mountainous area covers 11,037,899 Ha (55.08%). Total land area in East Kalimantan is estimated 20,038,500 Ha. The average rainfall is among of 1500-4500 millimeters per year. Temperature in wet season (October – January) is about 21o C and during dry season (July – August) about 34o C. Humidity is about 86 % average in dry season with wind speed of 5 knots per hour. Humidity increases to 90–100% in wet season. Through these climate characteristics a lot of crops could be possible to be grown in the area such as oil palm, cacao, banana, and rice as well. 1.2 Gross Regional Domestic Products GRDP growth of East Kalimantan Province compare to other Kalimantan Provinces is considered as the largest which average increase of 4.52 % per year.
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
Tabel 1-1 Total GRDP at Constant 1993 Prices by Kalimantan Provinces, 1999-2003 (Million Rupiah) Province
1999
2000
2001
2002
Avg. Annual Growth
2003
West Kalimantan
7,065,793
7,274,000
7,409,948
7,559,183
7,781,875
2.44%
Central Kalimantan
4,032,225
4,092,515
4,203,919
4,341,375
4,552,231
3.08%
South Kalimantan East Kalimantan
6,157,938
6,424,665
6,665,209
6,869,600
7,256,171
4.19%
21,519,670
22,384,086
23,513,161
24,521,451
25,680,662
4.52%
Source: East Kalimantan in Figure 2003
The major sectors in East Kalimantan provided large contributions to its GRDP are Oil and Gas, Mining and Quarry, Manufacture Industries, Agriculture (including Forestry, Plantation and Fisheries) and Trading. Figure 1-1 Share of GRDP by Economic Sector, East Kalimantan, 2003 Agriculture, Livestock, Forestry and Fishery 7%
Manufacturing Industries 8%
Mining and Quarrying 9%
Electricity, Gas and Water Supply 0% Construction 2% Trades, Hotel and Restaurant 7%
Oil and Gas 58%
Financial and Business Service 1%
Services 2%
Transportation and Communication 6%
Source: East Kalimantan in Figure 2003
Agriculture sector has a trend to share a continuous increase to the GDRP by its prime commodities of plantation, and fisheries. Among those, the palm oil is the most promising source for GRDP growth. 1.3 Current Export Import Since 1998 East Kalimantan gains trade balance, with export value appears as almost 4 times than import value. The export of oil and gas were increase in its value and become important product to support APBD. The total export volume was declining over last few years correlated with the drop of forest industrial product, which was the major contributor of non-oil commodities to the province over the last decade. Table 1-2 Values of Export and Import 2000 – 2003 (unit: million Rp.) Activities
Growth Average (%)
1998
1999
2000
2001
2002
2003
Export Total
4,403,900
5,337,380
8,513,332
8,861,352
7,747,497
9,029,138
21.01
Oil and gas
2,952,516
3,585,778
6,749,157
6,943,322
5,959,075
7,017,807
27.54
Non Oil and gas
1,451,384
1,751,602
1,764,175
1,918,030
1,788,423
2,011,331
7.71
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
Activities
Growth Average (%)
1998
1999
2000
2001
2002
2003
Import Total
1,011,304
1,135,278
1,296,451
1,780,980
1,864,525
2,219,506
23.89
Oil and gas
335,535
430,567
628,265
979,250
1,167,754
1,499,841
69.40
Non Oil and gas
675,769
704,711
668,186
801,730
696,771
719,665
1.30
Sources: East Kalimantan in Figure 2003, and GRDP of Provinces in Indonesia 1999-2002,
From 2000 to 2004, the volume of wood and forestry export of East Kalimantan is dropped other export commodities which relatively stable are fisheries, agriculture and plantation, while mining and chemical industry are increase in their export value. Except oil gas as the major contributor, mining, wood and chemical industries are the most important product in East Kalimantan. Table 1-3 Values of Non Oil and Gas Export by Sector and Its Contribution of East Kalimantan (unit: million USD) Sector/products
2000
2001
2002
2003
2004*
Contribution (%) in 2003
Wood products
724.9
564.1
540.4
391.5
222.3
20.11
Mining products
632.3
923.4
1,054.4
1,058.6
351.6
54.37
67.6
49.6
61.3
45.0
12.2
2.31
1.0
6.9
3.2
4.7
1.9
0.25
Fisheries products Agriculture & plantation Forestry Chemical industry Metal products industry Others Total
2.8
1.7
1.3
1.2
0.5
0.07
201.9
235.6
232.7
407.2
85.9
20.91
8.6
66.9
16.0
31.8
14.2
1.63
30.4
27.0
14.2
6.8
0.9
0.35
1,607.8
1.875.3
1,923.4
1,947.0
689.4
100.00
* Up to June 2004 Source: Trade and Industrial Office of East Kalimantan, 2004.
Since major natural resources product of East Kalimantan are oriented for Export. Downstream products will be required opportunities product for investment to keep the resources more sustainable as other business. The secondary industrial products from forestry, plantation, mining, and fisheries also become important commodities in global market. 1.4 Labor Force Situation East Kalimantan population is increased 3.3% during the period of 2000 to 2003 to achieve a total of 2,704,851 persons. Population density of East Kalimantan was raised to an average of 13.50 persons/km2 in 2003. The lowest population density of Kabupatens is in Malinau with only 1.11 persons/km2 in 2003. The highest population density of Kabupatens is in Penajam Paser Utara with 36.24 persons/km2 in 2003. Penajam Paser Utara is a new kabupaten, which was separated from Kabupaten Pasir in year 2000. Tarakan city has the lowest population density with about 590.91 persons/km2 in 2003. The highest population density is in Balikpapan as the gateway of the province with about 813.70 persons/km2 in 2003.
PT. PCII
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
Most of Kabupaten and cities in the northern part of East Kalimantan have less density compare to those in the southern part. Also northern part populations engage with more primary resources/exploitation compare more skilled industrial labor in southern part. According to East Kalimantan statistic year 2003, the education profile of population is presented in the following figure. Figure 1-2 General Profile of Educational Attainment in East Kalimantan
General and Vocational Senior High School 24%
Not/Never at School 5%
Diploma/ University 5%
General and Vocational Junior High School 20%
Not yet Completed Primary School 18%
Primary School 28%
Sources: BPS of East Kalimatan Province, 2003
This figure is indicated that major percentage of Population and Labor of indigenous people is still dominated by low to moderate level of education. 1.5 Labor Wage by Sector Based on Mennakertrans (Ministry of Manpower and Transmigration) circulation letter no. B.60/Men/PHI/PJK/VII/2004 date July 16, 2004, each governor requested to prepare provincial minimum wage. The East Kalimantan Province has issued sector minimum wage (UMR Sectoral) per month per employee for 2005 as follows: 1. 2. 3. `4. 5. 6. 7. 8. 9.
Logging and Forestry Coal Mining Fisheries (frozen shrimps) Adhesive Industry Base Chemical Industry Gold Mining Oil and Gas Mining Gas Organic Chemical Industry Plantation (Palm Plantation)
Rp. 600,000.Rp. 672,000.Rp. 636,000.Rp. 762,000.Rp. 732,000.Rp. 773,880.Rp. 780,000.Rp. 689,874.Rp. 636,000.-
Daily Wage based on working day greatly depends upon the season and place, the best Consultant’s estimation is as follow: 1. 2. 3. 4.
Semiskilled for construction works Semiskilled for agriculture works Semiskilled for operators Skilled artisan (Gold/jewelry smith, etc.)
Rp. 50,000 per day Rp. 35,000 per day Rp. 45,000 per day Rp. 80,000 per day
1.6 Land Price in Major Kabupaten/Kota Land price in East Kalimantan varies depending on location and function. For example, land price in Kota Samarinda, Balikpapan and Bontang (urban area) is between Rp. 700,000.- to Rp. 3,000,000.-per square meter. In other smaller cities may range between
PT. PCII
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
Rp. 100,000.- to Rp. 1,200,000.- per square meter. Land price for agriculture is ranging between Rp. 1,000.- to Rp. 5,000.- per square meter depend to available infrastructure, but land price for mining is usually higher around Rp. 2,000 to Rp. 12,500.- per square meter. The cost of HGU processing for plantation development consist of two component which are administrative cost: around Rp.100,000.- per hectare for legal charge and acquisition cost which are greatly depending upon the NJOP value (land property tax). 1.7 Current Investment Realization Domestic Investment Realization Domestic investment realizations of non-oil business sector in East Kalimantan were dominated by industries. While, mining exploitation holds major portion of foreign investment realization. Mining and forestry are other leading sector appeared in domestic investment realization. Figure 1-3 and 1-4 illustrate domestic investment realization by sector in East Kalimantan up to December 2003. Figure 1-3 Domestic Investment (PMDN) Realization by Sector
Office Building 0.00% Transportation 0.03% Hotels 1.72%
Other Services 6.71% Housing Estate 0.00%
Electricity, Gas & Foodcrops & Holticulture Drinking Water 0.01% 1.70% Trade 0.66%
Plantation 3.46% Livestock 0.13%
Fisheries 0.01% Forestry 3.77% Mining 13.01%
Construction 0.05%
Industries (*) 68.75% Source: Regional Investment and Promotion Board (BPID) of East Kalimantan, 2004
Industries (*) as appear at 68.75% in Figure 1-3 consist of several groups of industry, which are dominated by paper, chemistry industries and wood industries details are shown in Figure 1-4.
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
Figure 1-4. Breakdown of Domestic Investment (PMDN) in Industries (68.75%) Metal Goods Industry 0.08% Mineral Non Metal Industry 0.63%
Other Industries 0.00%
Metal Industry 0.00%
Food Industry 0.66% Textile Industry 0.00%
Chemistry Industry 29.31%
Wood Industry 26.50%
Pharmacy Industry 0.00% Paper Industry 42.81% Source: Regional Investment and Promotion Board (BPID) of East Kalimantan, 2004
Overseas Investment Realization Foreign investment realizations of non-oil business sector in East Kalimantan were dominated first by mining and industries sectors. Figure 1-5 and 1-6 illustrate foreign investment realization by sector in East Kalimantan up to December 2003. Figure 1-5 Foreign Investment Realization by Industry Other Services 6.18% Transportation 0.06%
Housing Estate 0.00%
Construction 0.16%
Hotels 0.00%
Electricity, Gas & Drinking Water 0.00% Foodcrops & Holticulture Trade 1.31% 0.43%
Plantation 2.77% Livestock 0.00%
Fisheries 0.00%
Forestry 1.41%
Office Building 0.00%
Mining 59.28%
Industries (*) 28.40%
Source: Regional Investment and Promotion Board (BPID) of East Kalimantan, 2004
Investment in industries (*) as appear 28.40% in Figure 1-5 consist of several groups of industry, which are dominated by chemistry mostly oil and gas downstream products and wood industries and detail could be shown in Figure 1-6 as follows.
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
Figure 1-6 Breakdown of Foreign Investment (PMA) in Industries (28.40%) Mineral Non Metal Industry 0.00% Metal Industry 0.00%
Other Industries Food Industry 0.92% 0.00% Textile Industry 0.00%
Wood Industry 14.19% Pharmacy Industry 0.00%
Metal Goods Industry 0.38%
Paper Industry 0.00%
Chemistry Industry 84.52% Source: Regional Investment and Promotion Board (BPID) of East Kalimantan, 2004
Investment pattern in East Kalimantan is in line with comparison of Location Quotient Value of East Kalimantan and others Kalimantan Provinces by sectors (of GRDP). LQ index for East Kalimantan indicates the mining and quarry, and processing industry sectors would be the basis of economic development. 1.8 Industries Location and Strategic Areas Natural resources in East Kalimantan are spread in many Kabupatens and cities. The industrial areas are concentrated in several strategic Kabupaten or kota, such as: - Samarinda - Balikpapan - Bontang
: : :
- Tarakan - Kutai Kartanegara
: :
Wood processing. Oil refinery and manufacturing industries. Gas and fertilizer products processing downstream industries. Wood processing and fisheries processing. Wood processing, food industries and mining.
including
its
The growth of the industry in these areas is more or less correlated with infrastructure and access, also with economic geo-position which means the location of this region with external economic center such as: Java, Philipines, Serawak (Eastern Malaysia). Infrastructures in this 5 strategic areas mentioned above are sufficient to support industrial development particularly southern areas: Samarinda, Balikpapan, Bontang and Kutai Kartanegara, which are supported with better road access. And also accesses to national, regional and international market are relatively easy and opened. These strategic areas are explained the development pattern in East Kalimantan, where the growth centers located mostly along eastern coastal area. The growth centers in East Kalimantan have function to absorb raw material from up stream to be processed or stored before further carried for export or inter island market. Therefore a strong land transportation corridor and port facilities are important to link the growth centers area. Map of the industrial spreading in East Kalimantan is presented in the following figure.
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EXECUTIVE SUMMARY for East Kalimantan
Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
Figure 1-7 Map of Resources and Industrial Spreading in East Kalimantan Province 114 00'E
118 00'E
116 00'E
M A L A Y S I A
Lumbis
NUNUKAN
P.SEBATIK
NUNUKAN
P.NUNUKAN
04 00'N Long Bawan
Liongbunyu 04 00'N
Atap
FISHERIES & PLANTATION SECTORS Mensalong
COLD STORAGES / FISHERIES PROCCESSING
P.MANDUL Tidangpale
Betayau
Tanahmerah
MALINAU
POND / BRAKISHWATER AQUACULTURE
Pulausapi Sebakung
PALM OIL PLANTATION
0
25
50
75 km
P.BUNYU Pulaubunyu P.TARAKAN
SU L AWESI SEA
TARAKAN
CPO MILL DISTRIBUTION CACAO PLANTATAION Long Pahangai
Salimbatu
Pimping
BULUNGAN
TOURISM,MINING,OIL & GAS
S.K a
NATURAL GAS NATURAL GAS FIELD
Long Pujungan
S.B a
OIL REFINERLES
yan
TANJUNG SELOR Tanjung palas
Long Bia
hau
OILD FIELD
P.DERAWAN
COAL MINING
Long Laai
MALINAU
TOURISM K S.
02 00'N
a
ya
Gunung Tabur
Tepian Buah
n
TAJUNG REDEB 02 00'N
Long Nawan
BERAU Muara Lasan
Talisayan P.MENIMBORA
Pantaiharapan Miau Baru
Ma.Karangan
KUTAI TIMUR
Muara Wahau
Sangkulirang
Long Pahangai Muara Marah
Teluksumbang
Tanjungmanis
Rantaupulung
Batuampar
Tiong Ohang Tabang Ujah Bilang
Muara Ancalong
KUTAI KERTANEGARA
CENTRAL KALIMANTAN PROVINCE
KUTAI BARAT
SANGATA
Muara Bengkal
Kembang Janggut Sedulang
Longiram
NATIONAL ROAD PROVINCIAL ROAD
Melak Lambing
OTHER ROAD NON STATUS ROAD
Kota Bangun
Sebulu S.Mahakam
Resak
INTERNATIONAL BOUNDARY KABUPATEN BOUNDARY
Penyinggahan
D.Jempang Ma.Muntai TENGGARONG Loakulu Tanjung Loa Muara Kedang Isuy Janan
PLANNED ACCESS ROAD PROVINCIAL BOUNDARY
D.Semayang
SENDAWAR Muarapahu Damai
00
Santan
Ma.Kaman
m
RIVER
UAR TO M
BONTANG
Kahala
a ak
Tering
LEGEND :
h Ma S.
00
Ma.Badak
SAMARINDA Anggana Sangasanga
Muarajawa
WEH A TE
Sepaku
Sungaiseluang
CAPITAL OF PROVINCE TOWN OF KAB./KODYA
PENAJAM
TOWN OF KECAMATAN/VILLAGE
PASIR
AIRPORT
Long Kali
SEAPORT
SAW MILL
8a
WOOD PROCCESING
Batusopeng
PT. PCII
TANAHGROGOT 02 00'S
Rantaualas
Pasirbelengkong Kerang
CHIP INDUSTRY PULP INDUSTRY
Long Ikis
Kuaro TO BANTANJ JAR UNG MA / SIN
HTI
Waru
D Muara Komam
SECTOR FORESTRY HPH
BALIKPAPAN
SOUTH KALIMANTAN PROVINCE
116 00'E
Tanjungaru 118 00'E
EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
II. CURRENT SITUATION AND FUTURE PROSPECT OF INFRASTRUCTURE 2.1 River The river transports in East Kalimantan play a main role to support passengers and goods from upstream to most of larger cities in downstream. Road infrastructures are only available in linkage of the growth center cities in downstream or coastal areas. The following East Kalimantan Rivers have economic value as utilized by community and industries for transportation: o Mahakam River links Samarinda to Melak (Kutai Barat) around 920 Km upstream via Kutai Kartanegara, o Kandilo River (191 km) links Tanah Grogot to upstream, o Kedang Kepala River (319 km) connects Muara Ancalong and Muara Wahau as agro production centers in Kabupaten Kutai Timur to Muara Kaman in Mahakam River and continues to Samarinda. o
Kelai River (254 Km) is used to transport local products (wood, pulp and coal) from upstream to Tanjung Redep,
o Kayan River (576 Km) connects Tanjung Selor to hinterland areas of Kabupaten Bulungan and Kabupaten Malinau, o Sesayap River (278 Km) can be cruised from Tarakan to Malinau at a length of 200 Km, o
Sembakung (279 Km) and Sebuku (115 km) Rivers are used to transport local products from upstream (Kabupaten Nunukan) to Tarakan,
Table 2-1 presents the number of river port at East Kalimantan. The river depth freqwently fluctuates, which is affected by rainy season. The average rainy season, is lasting around about 9 months so the river transportation is reliable for large haulage around 9 months per year and the rest, should carried over land transportation. Larger rivers, such as Mahakam, Kelai, Kayan and Sesayap could be sailed by ship any time from estuaries to midland. Table 2-1 Number of River Port at East Kalimantan Province, 2003 No
Kabupaten/City
River/Gulf/Straits
Amount
Depth* (m)
Capacity * (GWT)
Condition
Samarinda 1
Mahakam Hilir
Mahakam river
5
7 – 12
20,000
2
Mahakam Hulu
Mahakam river
5
7 – 12
20,000
3
Mahakam Baru
Mahakam river
3
7 – 12
20,000
2 damaged, 3 good 1 damaged, 4 good Good
4
Samarinda Seberang
Mahakam river
2
7 – 12
20,000
Good
Kutai Kartanegara 6
Loan Janan
Mahakam river
7
Melayu
Mahakam river
1 1
7 – 12 6 – 10
20,000 10,000
Good Good
8
Tepian Pandan
Mahakam river
1
6 – 10
10,000
Good
9
Muara Kaman
Mahakam river
1
6 – 10
10,000
Good
PT. PCII
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No
Kabupaten/City
River/Gulf/Straits
Amount
Depth* (m)
Capacity * (GWT)
Condition
10
Muara Muntai
Mahakam river
1
6 – 10
10,000
Good
11
Handil II
Mahakam river
1
7 – 12
20,000
Good
12
Muara Muntai
Mahakam river
1
6 – 10
10,000
Good
13
Sungai Meriam
Mahakam river
1
7 – 12
20,000
Good
14
Kota Bangun
Mahakam river
1
6 – 10
10,000
Damaged
Kutai Timur 15 Muara Ancalong 16 Muara Wahau Kutai Barat
Kedang Kepala river Kedang Kepala river
1 1
3–6 3–6
5,000 5,000
Good Good
17
Melak
Mahakam river
1
4–7
5,000
Good
18
Tering
Mahakam river
1
4–7
5,000
Good
19
Long Iram
Mahakam river
4–7
20
Long Bangun
Mahakam river
1
4–7
5,000 5,000
Good
21
Muara Pahu
Mahakam river
1
4–7
5,000
Good
Balikpapan 22
Kampung Baru
Balikpapan gulf
1
Pel. Penyeberangan Somber
Balikpapan gulf
1
10 8 – 12
40,000
23
20,000
Good Good
24
Pel. Penyeberangan Kaliangau
Balikpapan gulf
1
8 – 12
20,000
Good
Balikpapan gulf Balikpapan gulf
1 1
5–9
5,000
Good
5–9
5,000
Good
Balikpapan gulf
1
5–9
5,000
Good
Penajam Paser Utara 25
Penajam
26
Pel. Penyeberangan Penajam
27
Tanah Grogot
Kota Tarakan 28
Dermaga Tengkayu
Tarakan gulf
1
12
40,000
Good
29
Dermaga Perikanan
Tarakan gulf
1
6 – 10
20,000
Good
30
Dermaga Beringin
Tarakan gulf
1
6 – 10
20,000
Good
Bulungan 31
Tanjung Selor
Kayan river
1
6 – 10
15,000
Good
32
Semakawir
Kayan river
1
6 – 10
10,000
Good
33
Ancam
Kayan river
1
6 – 10
10,000
Good
Berau 34
Pasar Lama
Segah river
1
5–8
5,000
Damaged
35
Pasar Impres
Kelay river
1
5–8
5,000
Good
36
Pulau Derawan
Pulau Derawan
1
5–8
5,000
Good
5-8
5,000
Good
37
Teluk Bayur
Segah river
1
38
Tanjung Redeb
Berau river
1
5–8
15,000
Good
Sesayap river
1
5-8
5,000
Good
Malinau 39
Malinau/Pemkab
Nunukan 40
Atap/Sembakung
Sembakung river
1
5-8
5,000
Good
41
Pelabuhan Laut
1
8
15,000
Good
42
PT Yamaker
Makasar strait Makasar strait
1
8
10,000
Good
Sungai Nyamuk
Makasar strait
1
8
10,000
Good
43
Source: Land communication service, and ASDP, East Kalimantan province, 2003. Note : * estimated
PT. PCII
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
2.2 Road Presently, East Kalimantan road stretches a total length of 8,189.78 km, including those built by the central government and the provincial/Kabupaten governments. The ratio of road length to total land area is 52.53 km to 1,000 km2, which in considered as low. The following Table 2-2 exhibits the condition of roads in East Kalimantan. Table 2-2 Condition of Road in East Kalimantan Pavement Type Status
Length (Km)
Asphalted (Km)
Aggregate (Km)
Soil (Km)
National road Provincial road Kabupaten/City road
1,226.11 1,762.07 5,201.50
889.41 621.30 1,325.91
298.10 584.05 1,720.80
38.60 55.72 2,154.79
Total
8,189.78
2,836.62
2,602.29
2,750.11
Source: Kimpraswil Service of East Kalimantan Province, 2003.
The National road is comprehensively in good condition. While Provincial/Kabupaten road condition is only 24 % good, 29 % moderate, 34 % damaged and 13 % heavy damaged. Every year, local government renders efforts to construct new roads as well as to rehabilitate old ones through fund APBD, APBN as well as foreign loan. East Kalimantan roads are classified into three arteries, i.e. 1) South Artery: connecting South Kalimantan - Batu Aji/Kerang Dayu - Tanah Grogot - Kuaro - Penajam - Balikpapan - Samarinda - Bontang - Sanggata - Muara Wahau - Tanjung Redeb - Tanjung Selor. 2) Central Artery: connecting coastal growth center including Samarinda Tenggarong - Kota Bangun - Melak - Barong Tongkok - Central Kalimantan. 3) North Artery: connecting Samarinda - Sangatta - Muara Wahau - Berau Bulungan; work on the construction of this road leading to Kabupaten Malinau and Nunukan is underway. 2.3 Harbor Most of growth centers (cities) in East Kalimantan located in coastal area. All raw products from hinterlands are collected in those cities for trading, further processing into industrial products or distributing to other region. Many of those cities facilitated by harbor for inter islands or ocean going vessels. There are 15 public harbors in East Kalimantan, 4 of them are the largest harbors managed by PT. Pelabuhan Indonesia IV (state-owned harbor corporation), while provincial government manages the remaining smaller harbors. There are also special harbors independently manage by privates and state companies for coal in Sangatta, Bontang, and Balikpapan, for oil in Balikpapan, and for gas and fertilizer in Bontang. Table 2-3 Number of Ship Serve Transportation Among Islands in East Kalimantan, Year 1998-2003 No. 1 2
PT. PCII
Name of Harbor Balikpapan Sarimarinda
Number of Ship 1998 2,727 3,699
1999 2,904 4,599
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2000 3,639 5,205
2001 4,232 6,146
2002 2,739 3,258
2003 4,874 10,492
EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Name of Harbor
3 4 5 6 7 8 9 10 11 12 13 14 15
Tarakan Nunukan Sungai Nyamuk Tanjubg Selor Tanjung Redeb Pulau Bunyu Sangkulirang Sanggata Lhok Tuan Tanjung Laut Tanjung Santan Samboja Tanah Grogot Total
Number of Ship 1998
1999
2000
2001
2002
2003
4,426 1,786 608 4,313 2,880 574 352 1,120 758 550 567 105 899
4,040 1,592 639 4,670 2,290 287 308 948 986 494 723 240 882
4,107 1,488 575 4,855 2,504 159 405 1,066 915 362 583 223 980
5,207 3,720 520 4,809 2.810 133 606 1,040 1,052 909 640 229 1,224
4,589 3,343 621 4,944 2,586 168 675 806 601 393 0 230 1,178
2,994 2,593 599 5,653 2,731 177 849 1,130 1,189 270 423 138 1,592
25,364
25,602
27,066
33,277
26,131
35,701
Source: Sea and Air Communication Service, East Kalimantan province, 2003
The condition of harbor facilities in gateway of East Kalimantan is expressed in Table 2-4. Table 2-4 Facilities in Main Harbor in East Kalimantan Facilities Harbor name
Class
Quay (M)
Warehouse (M2)
Open storage (M2)
Depth
Capacity
(M)
(DWT)
Balikpapan (container)
III
420
3,170
5,678
8 - 12
40,000
Samarinda (container)
III
767
4,400
19,650
7 - 12
40,000
Tarakan (container)
IV
250
2,412
3,224
6 - 10
40,000
Nunukan
IV
100
700
600
5-8
15,000
Tanjung Selor
120
-
5-8
15,000
Tanjung Redeb
148
1,000
2,262
5-8
15,000
Pulau Bunyu
105
1,680
450
5-8
15,000
Sangkulirang
41
-
16
5-8
5,000
Tanjung Laut
59
300
4,770
5-8
5,000
Tanah Grogot
70
600
3,000
5-8
5,000
Source: Sea and Air Communication Service, East Kalimantan province, PT. Pelni and CIC, 2003.
2.4 Airport There are 70 airports/airstrips in East Kalimantan Province, which consist of: • 11 regular public airports; Sepinggan International Airport in Balikpapan is managed by PT. Angkasa Pura (The State Company). 10 other airports managed by DG of Air Communication includes Termindung (Samarinda), Juata (Tarakan), Nunukan, Yuvai Semaring (Long Bawan), Tanjung Harapan (Tanjung Selor), Kalimarau (Tanjung Redeb), Long Apung, Data Dawa, Melak and Malinau;
PT. PCII
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
• •
5 special airports (Bontang, Sakima, Muara Badak, Tanjung Bara and Tanjung Santan), are used for private industries mining and forestry. 54 airstrips are used for emergency or pioneer flight and are not used for regular flight.
The main airport is Sepinggan Airport. Types of aircraft, which are allowed to land and take off at Sepinggan and also Juata Airports, are Boeing 737, Airbus and DC 9s. Besides the Sepinggan Airport, there are other airports that are able to handle the landing and taking off smaller aircraft, for example Cassa 212, CN 235, Fokker 27 and DAS-7. The Air traffic volumes of public airports in 2003 are shown in Table 2-5 and 2-6. Table 2-5 Flight and Passenger Volume by Airports, 2003 Flight Movement Airport
Passenger
Departures
Arrival
Departures
Arrival
1. Sepinggan Balikpapan
20,185
19,991
936,565
882,343
2. Temindung, Samarinda
2,964
2,972
38,238
41,106
3. Juata, Tarakan
3,233
3,242
120,693
115,632
4. Kalimarau, Berau
2,571
2,564
47,672
85,676
231
236
2,535
2,016
6. Tanjung Harapan, Bulungan
1,211
1,117
9,037
8,529
Total
30,395
30,122
1,154,740
1,135,302
5. Nunukan
Sources: East Kalimantan in Figure, 2003
Table 2-6 Cargo and Baggage Volume by Airports, 2003 Airport
Cargo (KG) Loaded Unloaded
Baggage (KG) Loaded Unloaded
1. Sepinggan Balikpapan
7,083,035
12,051,042
6,129,595
2. Temindung, Samarinda
394,884
286,505
284,241
6,695,494 266,305
3. Juata, Tarakan
811,496
1,258,106
1,164,666
1,195,779
4. Kalimarau, Berau
114,616
172,716
301,809
308,090
5. Nunukan,
6,913
19,672
12,688
12,149
6. Tanjung Harapan, Bulungan
53,500
78,176
139,959
69,094
8,464,444
13,866,217
8,032,958
8,546,911
Total
Sources: East Kalimantan in Figure, 2003
2.5 Electricity Power supplies of East Kalimantan are: ¾ Most of power plants serving electricity to main/ larger cities and growth centers along eastern coast are operated by PLN. They were mostly diesel driven generators (PLTD) that have been operated for more than 15 to 25 year. Their total capacity was 296 MW in 2002. Additional 60 MW of steam power plant (PLTGU) are included to make a total of 356 MW with integrated network through 238 Km of transmission line and 6,488 Km of medium and low-tension system. ¾ Electricity for inland/ upstream area is mainly provided by small micro-hydro power plants (PLTM) but sustained supply of water is retreated by excessive forest exploration. A 200 KW micro hydro serves for Sekolog Sarat Village, Kabupaten Kutai Barat. Solar energy is another alternative to produce much lower capacity of electricity
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
for remote upstream areas. A total of 925 units solar cell have been installed between 1998-2002. ¾ East Kalimantan province has planned additional supply by construction of a coal power plant (PLTU) of 2 x 25 MW in 2004, 20 MW gas power plant (PLTG) in Memanas, steam power plants (PLTGU) Cita at the capacity of 20 MW and 40 MW and 10 MW diesel driven power plan in Kutai Kartanegara. These additional supplies of electricity will be commenced in 2005 to 2008. 2.6 Telecommunication In general, the need for communication facilities, including delivery and receipt of goods and services both in urban and coastal areas in East Kalimantan has actually been met. PT. Posindo and PT. Telkom, along with their private working partners continue to improve postal and telecommunication services in East Kalimantan. Presently, more than 288,386 telephone lines (SST) have been built. Of the total lines, 246,679 SST have been connected to customers, comprise of 102,919 SST in Balikpapan, 108,744 SST in Samarinda, and 35,016 SST in Tarakan. The public telephones conditions in several Kabupatens/cities are shown in Table 2-7. Table 2-7 No.
Number of Ordinary Telephone Service by Type and Kabupaten or City
Kabupaten/ Kota
Telephone Stall
Coin Public Telephone
Costumer Coin Public Telephone
Calling Card
Total
International and Regional Code
1,563
-
9
3
1,575
62-0543
162
-
-
-
162
62-0545
28
-
-
-
28
62-0541
1,498
-
-
-
1,498
62-0549
1.
Pasir
2.
Kutai Barat
3.
Kutai Kartanegara
4.
Kutai Timur
5.
Berau
342
-
2
-
344
62-0554
6.
Malinau
186
-
-
-
186
62-0553
7.
Bulungan
133
-
7
-
140
62-0552
8.
Nunukan
137
-
-
-
137
62-0556
9.
Panajam P.U.
459
-
-
-
459
62-0543
10.
Balikpapan
114
70
240
150
574
62-0542
11.
Samarinda
44
75
102
144
365
62-0541
12.
Tarakan
218
1
61
64
344
62-0551
13.
Bontang
180
1
2
-
183
62-0548
5,064
147
433
361
6,005
Total
-
Source: Regional Division of State Enterprise of Telecommunication VI Kalimantan, 2003.
2.7 Water Supply Presently, East Kalimantan has 9 city water companies (PDAM) owned by the regional government. In 2002, Balikpapan City built a new city water installation with a capacity of 20 liters/second. Earlier, the city also raised the capacity of Teritip city water installation to 40 liters/second from previous 20 liters/second. Manggar Reservoir will be improved to supply more raw water to Kota Balikpapan.
PT. PCII
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
There is also a plan for drinking water resources developments in Samarinda. This will be implemented in fiscal year 2005-2010 including Bendang/Loa Kulu stage II, with a capacity of 200 liter/second, Harapan Baru with a capacity of 200 liter/second, Seberang water resources with a capacity of 100 liter/second, and Segiri reservoir (Teluk Lerong area) with a capacity of 100 liter/second. Available raw water mainly drifted from river. In downstream water treatment is required for domestic use due to heavy pollution. In upstream, there are indigenous peoples that use river raw water directly for domestic use. Ground water in Balikpapan and Samarinda is inappropriate for domestic consumption as it has mineral contents. 2.8 Industrial Estate The Government has pushed the acceleration of regional development by providing physical incentives to industrial development. One of the physical incentives is availability of the industrial zone/estate. And the Government has made five industrial zones/estates as follows: Table 2-8 Industrial Estates in East Kalimantan Industrial Estate
Kabupaten/ City
Area
Status
Authority
Orientation
Badak Industrial Zone
Bontang
1,572 Ha.
Exist
PT. Badak NGL
LPG and LNG
Kaltim Industrial Estate
Bontang
2,010 Ha.
Exist
PT. Pupuk Kaltim
Ammonia downstream products
Kariangau Industrial Estate
Balikpapan
1,584 Ha.
Land acquisition and construction
Local Government
Manufacture and light industries
Maloy Agro Industry Zone
Kutai Timur
5,000 Ha.
Land acquisition and construction
Local Government
Agro industry
Pendingin
Kutai Kartanegara
1,000 Ha.
Land acquisition and construction
Local Government
Agriculture and food industries
Source: PT. PCII, 2004
2.9 Health Service Facilities and Living Condition for Expatriate In Balikpapan, Samarinda and Bontang there are private hospitals with facilities appropriate for foreigners (expatriate). Several Kabupatens provided also with adequate general hospitals (government or private), such as Tarakan, Kutai Barat, Kutai kartanegara, Berau, Pasir, Penajam Paser Utara, other Kabupatens have only health centers (Puskesmas), such as Kutai Timur, Bulungan, Malinau, and Nunukan. Each health center served by medical doctor, paramedics, midwifes and primary emergency installations. Schools are generally given in Indonesian and local language. International school is only available in Balikpapan and Bontang. Food and accommodation in most of growth center such as Tarakan, Nunukan Tanjung Redeb and Tanah Grogot are appropriate for temporary living although it was less convenient than Balikpapan, Samarinda, and Tenggarong.
PT. PCII
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EXECUTIVE SUMMARY for East Kalimantan
Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
Figure 2-1 Map of Infrastructures in East Kalimantan Province 114 00'E
118 00'E
116 00'E
Lumbis
P.SEBATIK
NUNUKAN
Liongbunyu
NUNUKAN P.NUNUKAN
04 00'N 0
25
50
75 km
Long Bawan
04 00'N
SEBUKU RIVER SEMBAKUNG RIVER
Atap Mensalong P.MANDUL
Betayau
MALINAU
Tanahmerah
Tidangpale
SESAYAP RIVER
P.BUNYU
Pulausapi
Pulaubunyu
M A L A Y S I A
P.TARAKAN
Sebakung
TARAKAN
S UL A WE S I SEA
BULUNGAN Pimping
Salimbatu
TANJUNG SELOR
Long Pahangai
Tanjung palas
KAYAN RIVER
Long Bia
Long Pujungan a S.B
hau
KELAI RIVER P.DERAWAN
MALINAU K S.
02 00'N
ay
Gunung Tabur
Long Laai Tepian Buah
an
TAJUNG REDEB
BERAU
02 00'N
Long Nawan
Talisayan
Muara Lasan
P.MENIMBORA
Pantaiharapan
Ma.Karangan Miau Baru Muara Wahau
Sangkulirang
KUTAI TIMUR
Long Pahangai Long Apari
Muara Marah
KUTAI KERTANEGARA
Tiong Ohang
Rantaupulung
Teluksumbang
Tanjungmanis
Batuampar Tabang
Ujah Bilang
SANGATA
Muara Ancalong Muara Bengkal m ka ha Ma S.
KEDANG KEPALA RIVER
KUTAI BARAT 00
Kembang Janggut Kahala
Longiram
Ma.Kaman D.Semayang
Melak
Penyinggahan
SENDAWAR Muarapahu
LEGEND :
Damai
Lambing
D.Jempang Ma.Muntai
RIVER
Kota Bangun
Sebulu
S.Mahakam
TENGGARONG
MAHAKAM RIVER
Ma.Badak
SAMARINDA
Loakulu Tanjung Isuy
NATIONAL ROAD PROVINCIAL ROAD
Anggana
Loa Janan
Muara Kedang
Sangasanga
Resak
OTHER ROAD
Muarajawa
INTERNATIONAL BOUNDARY PROVINCIAL BOUNDARY
00
Santan
Tering
CENTRAL KALIMANTAN PROVINCE
BONTANG
Sedulang
T
ARA O MU
T EW
EH
Sepaku
Sungaiseluang
KABUPATEN BOUNDARY CAPITAL OF PROVINCE
PENAJAM
TOWN OF KAB./KODYA
Long Kali
TOWN OF KECAMATAN/VILLAGE
RIVERPORT
CONDITION ROAD : GOOD
TO T BAN ANJUN JAR G MA / SIN
AIRPORT SEAPORT
Muara Komam
PT. PCII
Long Ikis
KENDILO RIVER
Kuaro Batusopeng
TANAHGROGOT Rantaualas
116 00'E
02 00'S
Pasirbelengkong
Kerang
MODERATE DAMAGE
BALIKPAPAN
Waru
PASIR
Tanjungaru 118 00'E
EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
III. CURRENT SITUATION AND FUTURE PROSPECT OF MAJOR SECTORS GRDP of East Kalimantan in 2003 points out that the 5 main sectors of East Kalimantan economic structure are Oil and Gas, Mining, Manufactures, Trade, and Agriculture (include Forestry, Plantation and Fisheries). These 5 sectors have contributed to more than 87% of GRDP and absorbing employment at 71.27% of the existing labor force. Some major sub-sectors of these five sectors are predicted still to be important in East Kalimantan Province economy at least in next decade. 3.1 Major Sectors Analyses 3.1.1 Oil and Gas The secondary industries of petroleum and natural gas including its chemical derivate industries become the largest contributors to the provincial GRDP. Among the leading industries are Pertamina Balikpapan, PT. Badak NGL and PT. Pupuk Kaltim which all locates the growth area of Balikpapan and Bontang. This oil and gas sector contributes to more than 56% of GRDP, and absorbing employment less than 4% of existing labor force in 2003. The industries are including technology intensive, which requires skilled and professional worker mostly from outside East Kalimantan. There are also growing others potential commodities as downstream products of natural gas, which are feasible for investment. The high demand of fertilizer has created an opportunity for the company to extend its production capacity and investment. Marine Paint and wooden adhesive are also prospective commodities derived from natural gas downstream products, which can be promoted for investment. 3.1.2 Mining This sector contributed around 9.4% to the GRDP and approximately absorbed 4 % employment of existing labor force in 2003. East Kalimantan has large potential of mining resources, some of them have been exploited (coal) and other potential resources are in exploration stage to measure the deposit or still indicate its hypothetical figure. Coal is the major mining potential in East Kalimantan, which recently become precious energy commodities to replace the high price of oil in global market. Other mineral potential (nickel and iron) were indicated as potential but no technical exploitation been made and its economic value are unclear. Quartz and limestone are basic national use for other industries, which significantly available in East Kalimantan province but competitiveness with other province and distance to the costumer become major constraint for a suitable economic value. 3.1.3 Manufactures Manufacture Sector contributed 8 % of GRDP of East Kalimantan, absorbing employment about 13.25% of its labor force in 2003. Existing manufacturing companies are established in major growth center, such as Samarinda, Balikpapan and Bontang. One of the industries of this sector is metal industry, which produces accessories kit and spare parts (generally for offshore oil exploitation).
PT. PCII
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
In general, developments of East Kalimantan have been divided into (two) regions: First is south region with growth center in Balikpapan, Samarinda, Bontang mostly occupied with manufacture and agriculture industries and The second is north region with growth center in Tarakan mainly produces mining and forestry industry. One of the differences between 2 regions is road infrastructure. In the south region, inland roads connect among major cities, as well as river transport and sea. Meanwhile, the north region transportation depends completely to river and coastal transportation, as land transportation condition is marginal. Since northern region of East Kalimantan are largely utilize coastal and river transportation to support construction or mining operation in the area. Dockyard and Heavy Equipment Repairing Center is suggested as promoting tertiary industry for investment. 3.1.4 Trade Trade including hotel and restaurant also provided significant economic growth. This sector contributes more than 6% of GRDP, while absorbing employment more than 19% of existing labor force in 2003. Development of this sector is correlated with general economic condition and industrial development intensity of East Kalimantan. There is no specific commodity or industry to be proposed for this sector, as most the activities closely related with growing industries of agriculture, manufacture, forestry and mining. 3.1.5 Agriculture This sector contributes to more than 6% of GRDP, and absorbing employment more than 36% of existing labor force in 2003. This sector consists 5 sub sectors: Agriculture sub sector, Plantation, Forestry, Fishery and Livestock. At present, major contribution of agriculture sub sectors to GRDP are forestry, plantation and fisheries. The main commodities of those major sub-sectors are pulp, oil palm, cacao, shrimp, etc. These major sub-sectors have been developed since the latest decade. For instance, oil palm plantation have been developed by involving smallholder in plasma-nucleus scheme (PIR) or operated by private enterprises, or state own plantation companies (PTP) in Kutai Kartanegara, Kutai Barat, Pasir, Penajam, Berau, Bulungan, and Nunukan. 3.1.5a Plantation Demand for crude palm oil is expected to grow in coming years and reach 40.5 million Tons by the year 2010 (Oil World, 1996). While, the world production is estimated to be 38,273 million tones in 2010. This means that more supplies are required for world consumption. This high demand for palm oil has created an opportunity for the company to extend its production capacity and new investment. Indicated from National figure, the extension and growth of oil palm plantation areas in East and West Kalimantan is larger than that of Sumatra provinces. Major oil palm production is still oriented to traditional CPO, while cooking oil, as a simple downstream industry has not been significantly developed in East Kalimantan. Potential of large volume plantation for raw CPO in the future in East Kalimantan is one of the considerations that investment opportunity in cooking oil is promising. The second potential plantation crop in East Kalimantan is cacao with a total plantation area of 33,800 Ha in 2003. This plantation crop dominantly covered the suitable areas in Kabupaten Nunukan, Kutai Timur and Berau. From the coverage area, East Kalimantan
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
was ranks as the fifth largest cacao production in national scale with 3% growth of area plantation (2002) and reached 21,900 Ton production in 2003. 3.1.5b Land Availability for Plantation Base on the geomorphologic condition (includes soil and topography) and allocated land use, the area provided for plantation development as delineated by local government are presented in the following table. Table 3-1 Land Area Availability for Proposed Plantation Project Investments Kabupaten/City Pasir
Area Available 40,000
Kutai Kartanegara
260,000
Berau
210,000 Total
510,000
Source: East Kalimantan in Figure 2003, Plantation Office of East Kalimantan and calculated by Consultant.
Currently the remaining allocation for large-scale private plantation (PBS) is 2,500,000 Ha. The area become idle land and requested by Provincial Government to revoke from 146 companies who are not (zero) performed to develop plantation over the last 5 years. From the total land allocation for palm oil and other crop plantation (PBS-Private Large Scale Plantation) of 3,146,000 Ha, it was indicated that only 315,800 Ha plantation were operated, 378,000 Ha turned into HGU and others 302,000 Ha are in the process of business permit. 3.1.5c Forestry Previously about 38 companies were produced plywood, particle block board, moldings, sawn timber, flooring, etc. and exported the wood products to Europe, Asia Pacific, North America, Middle East and Australia. Recently about 30% of these companies are suffered from turmoil in its production due to a shortage of raw materials; this unsustainable resources condition is resulting from bad management excessive logging and high growth of illegal logging practice after decentralization period. Though, in future, products from non-natural wood resources, like particleboard and MDF have a good prospect to be developed. Plywood products, which produced based on log as raw material, were decreased year by year in quantity due to decreasing of log supply from natural forest resources. The particleboard in Indonesia is associated with plywood product more as by product industries to utilize the waste from wood or plywood processing. With the slump of plywood, particleboard industries also suffered, although an independent particleboard industry could consume waste material or other wood source from HTI product and ex-plantation trees (rubber), or other non-log materials from natural forest, which are more sustainable. Particleboard industries are a technical solution to surviving the wood industry over the low sustainability of natural forest resources. East Kalimantan has a pulp and paper industry located in Tanjung Redeb Kabupaten Berau. The industry has been effectively supported by HTI in the north region of East Kalimantan, Kabupaten Berau and Kutai Timur, along with new HTI development in Kabupaten Bulungan, Malinau as well as Nunukan. Pulp industry requires large investment particularly after mo more re-forestation fund were provide by government
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
mainly for HTI to supporting sustainable raw materials. Both pulp and paper are the promising commodities for East Kalimantan. Paper products are mainly absorbed by domestic consumption, but these kinds of commodity are possible to develop within smaller investment scale. 3.1.5d Fishery The estimated sustainable potency of pelagic fish in East Kalimantan is around 15,148 Ton/year. This is lower than West Kalimantan but the estimated demersal fish, 83,000 Ton/year, which is considered as the highest among Kalimantan provinces. Sustainable potency of shrimp (penaeid) is estimated as 6,200 Ton/year, which has surpassed by the operation of 11,500 units of shrimp gillnet recently. Although fishery commodities in terms of varieties and production from catching of East Kalimantan is better than other Kalimantan provinces, the competitiveness is weaker compare to North Sulawesi, Maluku, Papua, and East Nusa Tenggara for higher value of Tuna and Skipjack. Shrimp and grouper cultivated in brackish water and marine aquaculture respectively are other promising commodities, which are suitable to be cultivated in a good coastal environment of East Kalimantan beside to maintain the sustainable of shrimp and demersal fish resources. Also these commodities are highly demanded for export market. 3.2 Promising Commodities Analyses According to major sectors analyses above, 11 proposed prospective commodities/ industries were pointed out. Current and future situation of commodities/industries, which proposed as prospective for investment in East Kalimantan, could be summarized in the following presentation. 3.2.1 Gas Application Products No.
Point of View
Brief Description
1.
Natural Resources/Raw Material
As main raw material, natural gas resources are still sustained at reserve capacity of 47.82 TSCF (Trillion Standard Cubic Feet) in this area. East Kalimantan has the second largest natural gas resources in Indonesia after Natuna Island. This ensures the industry lifetime for more than 60 years.
2
Infrastructure
Roads in relatively good along network between Balikpapan, Samarinda, and Kutai Kartanegara and Bontang and the road capacity could accommodate vehicles at least 20 Ton, while the access road from Bontang to Sangatta (Kutai Timur) up to Berau district is currently damaged. In Sangatta and Berau, sea transportations are effectively used, for good and passenger transportation.
3.
Labor Requirement
The existence of higher technological industries in East Kalimantan has contributed to the higher standard of labor skill and labor wages comparing to other Kalimantan provinces. There are 2 cities as the center of intensive technological industries in East Kalimantan, especially in oil and gas sector (Balikpapan and Bontang).
4
Supporting Industries/ Business
PT. Pupuk Kaltim as national prime fertilizer industry, developed industrial estate, which covered area more than 2,000 Ha for other industries correlating with natural gas. PT. Pupuk Kaltim industrial zone has completes facilities for future industrial development. The facilities are harbors, electricity power plant, good access roads to Bontang city, Balikpapan and Samarinda. Several suppliers and supporting industries include equipment rental are available at Bontang, Balikpapan and Samarinda, such as PT. Trakindo, PT. United Tractors, etc.
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No.
Point of View
5
Market
6
Performance of Opportunities
Brief Description a.
Refinery products supplies around 30% of Indonesia eastern consumption.
b.
In 2003, LNG production of 44,497,991 m3 (44,467,102 m3 exported with 386 times of shipment), and LPG production of 1,545,682 m3 (1,504,039 m3 exported with 20 times of shipment). There are increasing world demand as oil prices sharing.
c.
Ammonia production of 1,496,323 Tons (320,599 Tons exported), Urea production of 2,688,845 Tons in bulk and bag (647,564 Tons were exported to Asia Pacific Countries in bulk in 2003).
d.
Other downstream or application products of Natural Gas: melamine, urea, methylamine products, ammonium nitrate products, adhesive and resin are allotted for exports and domestic consumptions.
Natural gas downstream products and application are prominent commodities for national and export markets. There are large opportunities to develop industries in Bontang related with downstream product or application product of national gas, such as Acrylonitrile, Paint Resin, Caprolactam, Synthetic Fiber, etc. From many potential commodities as downstream of natural gas, there are 2 commodities, which are indicated as feasible for investment. Marine Paint and wood adhesive are two of the prospective commodities related with natural gas downstream products, demanding by National or Export market. While wood adhesive, especially urea formaldehyde are important for plywood and particleboard industries including, MDF and OSB. As mentioned earlier, in future, products of ‘waste wood panel’ such as particleboard, MDF and OSB have good prospect as it uses non-natural forest raw materials, which have a better sustainable resources.
Figure 3-1 Natural Gas Downstream and Application Products Feedstock
Intermediate
Downstream Urea
Ammonium Nitrate
Natural gas
Ammonia
Application • Fertilizer (Nitrogen Source) • Melamine for Melamine Ware • Adhesive for Wood Industry • Explosive Materials for Mining Industry • Fertilizer (Nitrogen Source)
Acrylonitrile
• Synthetic Fiber (Nylon) for Textile • Paint Resin • Surfaces Coating
Caprolactam
• Synthetic Fiber for Carpet Industry • Textile and Tires
Methylamine
• Fertilizer (Nitrogen Source) • Melamine for Melamine Ware • Adhesive for Wood Industry
3.2.2 Coal Mining No. 1.
Point of View Natural Resources / Raw Material
Brief Description Total deposits of East Kalimantan coal in 48 PKP2B companies areas are about 12,590.60 millions Tons, and estimated as possible reserves which can be mined about 4,510.76 millions Tons. There are two kabupatens have potential coal to be promoted such as Kabupaten Pasir has predicable quantity is more than 700 millions Tons with CV: 4,762 - 6,734 cal/g and Kabupaten Malinau has predicable quantity is more than 300 millions Tons with CV: 5,500 - 7,200 cal/g.
2
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Point of View
Brief Description The better mode of transportation for coal is river. From mining location in Malinau to coal terminal in Tarakan and Makassar Strait are directly connected through Sesayap big river. And also from mining location in Pasir to coal terminal in Balikpapan and Makassar Strait are directly connected through Kendilo big river. Coal Terminal For coal mining exploitation in Kabupaten Malinau, there is a coal terminal at Tarakan City in an island (Sadau Island) with maximum vessel/barge cap (DWT) about 10,000 – 40,000 Tons while other coal terminal is planned to develop in Tarakan Island. Near kabupaten Pasir, Balikpapan has coal terminal with large capacity of vessel. Its terminal also used to collect coal from several regions such as Kutai Kartanegara, Penajam Paser Utara and Kutai Barat. Balikpapan coal terminal has maximum vessel capacity 60,000 – 75,000 DWT with terminal area about 13 Ha and located in Kariangau Industrial Estate.
3.
Labor Requirement
Coal mining in East Kalimantan has been active for more than 20 years and stills more development progressing until present. Coal mining is common integral business, absorbing a large proportion of the labor force in East Kalimantan. There are available labor forces for coal industry. More than 7,000 people are currently engaged in this sector.
4
Supporting Industries / Business
Heavy equipment for mining requirement of Kabupaten Pasir and Malinau will be directly supported from Balikpapan and Tarakan, respectively. Several suppliers of heavy equipment are available in both cities, such as PT. Trakindo, PT. United Tractors, etc.
5
Market
Generally, Indonesia coal markets of 2003 have increase from 2002, not only for export but also for domestic consumption. Domestic consumption has been increased from 29,257,002.59 Tons in 2002 to 30,657,939.80 Tons in 2003, while export has been increased from 73,536,353.21 Tons in 2002 to 85,261,047.15 Tons in 2003. Significant increases in domestic consumption are for power plant and pulp industries, while consumptions for others also significantly increase. For export market, the amount of exports to Hong Kong, India, Italy, Switzerland and USA also increased significantly. East Kalimantan has been contributed to domestic markets for about 29.12% (2002) and 31.98% (2003) and to export markets for about 61.70% (2002) and 58.99% (2003). Because of China policy is stopped export of coal. China coal costumer will look for new coal resource. However large coal amount also requested by Philippines which shorter hauling distance is from East Kalimantan.
6
Performance of existing Coal
Coal is still proposed commodity from this sector for investment. Those because coal mining has been important and precious industry of East Kalimantan as national leading coal producer. Also, coal has been high market demand in domestic and export, and there is terminated for several company which location still possess significant deposits and some with high quality coal (Anthracite).
7
Environment Constraint
General issues arisen from mining are environmental issues. Mining has character whose activities cause environmental damages. Therefore, management and rehabilitation of environment are more concerned both presently and after mining exploitation. Environment management for general mining include coal should follow Ministry Decision of energy and mining No. 389.K/008/M.PE/1995 about Preparation Technical Guideline for Environment Management Effort (UKL) and Environment Monitoring Effort (UPL) for activity of general mining, oil and gas including electricity and energy development.
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
3.2.3 Dockyard and Heavy Equipment Repairing Center No.
Point of View
1.
Brief Description
Potentiality
In south region of East Kalimantan, Balikpapan has dockyard and heavy equipment repairing center, which play important roles in supporting river and sea transportation and Agriculture and Forestry industries. On the other hand, north region of East Kalimantan covering Kabupaten Nunukan, Malinau, Tarakan, Bulungan, Berau, and Kutai Timur does not possess dockyard and heavy equipment repairing center. In those northern regions, those are rich in natural resources and have industries of forestry, fisheries, mining, etc. and transportations of river and sea, which need support by special dockyard and heavy equipment repairing center.
2.
Infrastructure
As mentioned before, in generally developments of East Kalimantan have been taking place in 2 (two) regions: south region with growth center in Balikpapan, Samarinda, Bontang and north region with growth center in Tarakan. One of the differences of 2 regions mentioned above is road infrastructure. In the south region, inland roads connect among cities, as well as river transport and sea. Meanwhile, the north region depends on not inland roads but seas and river transportation as means of transportation.
3.
Labor Requirement
Manufacturing industry needs skilled labor. Tarakan needs supports labor for development its industry from other regions, such as Samarinda, Balikpapan and also from Java especially Surabaya. PT. PAL in Surabaya is a biggest of dockyard industry in Indonesia has long experience in docking and repairing center of heavy equipment.
4.
Market
In north region of East Kalimantan, there are 6 city/kabupatens as growth centre Tarakan, Nunukan, Bulungan, Malinau, Berau, and Kutai Timur. Each kabupatens/city has some companies/factories and seaports/river ports, which need supports for heavy equipment and ship maintenance through special dockyard and heavy equipment repairing center. The companies are about 35 of forestry companies, 8 of plantation, 18 of fishery and 20 of mining companies, with medium to high scale of business. The north region has average number around 50% of East Kalimantan ships traffic total number and more than 4% annual growth. The number ships traffic in the north region has the same with south region of East Kalimantan. While south region already has 2 dockyard and heavy equipment-repairing center in Balikpapan, north region until now has no. Those indicate that the north region needs support in maintenance of ship through special dockyard and heavy equipment repairing center.
5.
Performance
Local government of Tarakan city and also seaport authority (PT. Pelni) in Tarakan are very enthusiastic to propose and support the investment of this industry, because this industry will be very important for Tarakan development as a service city. Facilities in Tarakan city will be completed with development of this industry, which have been continually developed by government.
3.2.4 Palm Oil Products (Oil Palm Plantation and CPO Processing, and Cooking Oil Industry) No.
Point of View
1.
Natural Resources/Raw Material
Brief Description Oil palm is the largest coverage of plantation crops in East Kalimantan and first potential commodity of plantation; in 2003 the oil palm plantation predominantly covers suitable dry land area in kabupaten Pasir (56,224.00 Ha) and in Kutai Kartanegara district (20,048.00 Ha). The total oil palm plantation area is 158,786 (2003) with production of 791,063 Tons (about 160,000 Tons CPO), which is smaller than those in West Kalimantan and Central Kalimantan. But when comparing with West Kalimantan, the average annual growth of palm oil area in East Kalimantan is significantly high (more than 8% against to 3%, in year 1999 to 2003). Estimated area for oil palm plantation is about 300,000 Ha in only 2 kabupatens. Kabupaten Pasir has estimated available space area 40,000 Ha and 260,000 Ha has estimated in Kutai kartanegara (see Table 3-1).
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Point of View
2.
Infrastructure
Brief Description CPO Bulky Harbor There are 4 harbors for palm oil loading and unloading: 1 harbor at Tabang (Kutai Kartanegara), 1 at Penajam, 1 at Pasir, and 1 at Sangkulirang (Kutai Timur). Warehousing/Storage Tank In harbor area and transaction area there is no leasing storage tank for CPO, almost all companies built their own storage tank for their own CPO. Inland transportation Land that are suitable for oil palm is located at Kabupatens of Kutai Kartanegara, Kutai Timur, Pasir, Penajam Paser Utara, and Nunukan. While Suitable areas, which available for oil palm are located at Kabupaten Pasir and Kutai Kartanegara. In these Kabupatens of Pasir and Kutai Kartanegara, inland transportation is in good condition. Especially the access road of Balikpapan – Samarinda – Kutai Kartanegara and Bontang has very good condition. This access road connects to South Kalimantan through Pasir, with lower condition.
3.
Labor Requirement
Labor requirement per hectare of oil palm is accordingly with the age of oil palm. For plantation preparation (Yr-0) it needs 72 man-days / Ha and in the first year crop needs 43 man-days then in the fourth year up to the 25th year needs steadily 33 man-days per hectare. This labor requirement pattern is suitable to the low-density population area such as East Kalimantan. Roughly oil palm plantation needs only 2 man-months per hectare. Fortunately the Kabupaten Kutai kartanegara and Kabupaten Pasir have transmigration settlement. This could be the labor source for oil palm development of these kabupaten.
4.
Supporting Industries/ Business
Seedling The Seedling centers that have reputable sources of oil palm planting material in Indonesia are as follow: 1. Oil palm planting material of Dolok Sinumbuh 2. Oil palm planting material of Lame 3. Oil palm planting material of Yangambi 4. Oil palm planting material of Bah Jambi 5. Oil palm planting material of Marihat 6. Oil palm planting material of Avros All centers are located in North Sumatra Province. Chemical Fertilizer and Insecticide Kiosk Almost all kabupaten of East Kalimantan Province have chemical fertilizer and insecticide kiosk at Kecamatan level Other Custom clearance for export products will be directly serviced in Balikpapan or Samarinda.
5.
Market
Demand for crude palm oil is expected to grow in coming years and reach 40.5 million tones by the year 2010 (Oil World). While the world production is 38,273 million tones in 2010. Of this production projection Indonesia production is at level 46.43% of world production. Most of the demand for palm oil will continue to come from within Indonesia itself, China, India, Pakistan, and Malaysia. Palm oil producers are expected to increase their share in the vegetable oil market because: (a) Oil Palm trees produce a much higher yield per hectare than any other seed oil and (b) Palm oil can usually be produced more cheaply than other vegetable oils. Total export is increasing steadily since 1999 up to 2003 to India, Netherlands, China, Malaysia, Singapore, and others from 3,298,986 Tons to 6,379,997 Tons. India and Netherlands are the main importer countries of Indonesian CPO. Since 2002 Malaysia, CPO producer, also import from Indonesia in significant amount almost 6 times than 2001 its import. This is because of Malaysia switch to CPO downstream industry from cooking oil
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Point of View
Brief Description producer become oleo chemical producer. This could give opportunity for Indonesia to fulfill the cooking oil demand through enlargement the existing cooking oil processing and establish the new cooking oil plant in East Kalimantan area. Cooking oil is reported that export volume of Indonesia increased with around 21.69% of average growth rate during 1996–2003. The largest importing countries are India, China, Netherlands, Singapore, Turkey, USA and Yemen. World consumption of vegetable oils on 1998 to 2003 has been increased by fluctuated growth. Palm oil and palm kernel oil have biggest growth of more than 9% annually, while soybean oil growth by 6% annually, others just growth under 3% annually. Furthermore, the new cooking oil producers in East Kalimantan can meet high domestic demand, especially in east region of Indonesia where currently there is no plant for oil production.
6.
Performance of existing Oil Palm
Data indicate the existing oil palm plantation point outs that is during the economic crisis plantation is declining and some of existing plantation is slowdown its activities and in extremely way they withdrawal or sold the plantation. But after crisis, Being attracted by global consumer prices and demand, a number of oil palm plantations have been developed in Indonesia, especially in Sumatera and Kalimantan. Accordingly, the production of CPO in Indonesia for export market and national consumption has increased.
3.2.5 Cacao No.
Point of View
Brief Description
1.
Natural Resources/Raw Material
This plantation crop dominantly covered the suitable areas in Kabupaten Nunukan, Kutai Timur and Berau. From the planting area point of view East Kalimantan was the fifth largest cacao production in national scale with 3% growth of area plantation (2002) and its production reached 21,900 Ton in 2003. Referring to Table 3-1 as mentioned before, estimated area for cacao plantation is about 210,000 Ha in Kabupaten Berau. This estimated area is a large area for development cacao plantation. Comparing with total planted area of cacao plantation that is 32,277.50 Ha (in 2003), this area has 6 times larger.
2
Infrastructure
Bulky Harbor There is no specific harbor for cacao bean production in all over the province. The highest cacao beans production was in year 2003 in Nunukan, that is only about 13,500 tons. They don’t need any special harbor. Harbors for cacao beans loading and unloading are public harbors, as ones in Nunukan, Tarakan and Berau. Warehousing Storage of Tarakan harbor has area of 1,700 m2 and 3,224 to 3,400 m2 of open storage, and second line 4,000 m2. Nunukan harbor has area of storage about 700 m2, and about 600 m2 of open storage. Tanjung Redeb harbor in Berau has area of storage about 1,000 m2, and about 2,262 m2 of open storage. Transportation Berau has sufficient harbor to support development of plantation and processing unit. The harbor also could be supplied cacao beans or fruits from Kabupaten Nunukan and Kutai Timur as producers of cacao fruits to cacao beans processing unit in Berau. Cacaos from these areas are more easily transported by water transportation because inland transportations in these areas are insufficient and damaged. Export of cacao beans product should be through Tarakan or Balikpapan or through Surabaya harbors. The custom clearance for export administration etc. is not available yet in Tanjung Redeb harbor.
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No. 3
Point of View Labor Requirement
Brief Description Labor requirement for cacao processing unit and also for general processing industries similarly require the higher skilled labors. For this reason, Tarakan is the most appropriate among the northern region of East Kalimantan comparing to others and could support supply labors to other region, such as Berau, Nunukan, Malinau, etc. Labor requirement per Ha of cacao is accorded 2 times compared with oil palm plantation. This labor requirement pattern is suitable for the low-density population areas such as East Kalimantan. Average oil palm plantation needs minimum 4 man-months per Ha.
4
Supporting Industries/ Business
Seedling Cacao seeds good quality could be found as follow: 1. PT. PP. London Sumatera Indonesia, Medan 2. PTP Nusantara II Tanjung Morawa, Medan 3. PT. Hasfarm Niaga Nusantara, Jakarta Selatan 4. PTP. Nusantara, Surabaya 5. PTP Nusantara VIII, Bandung 6. PTP Nusantara IV, Bah Jambi-Pematang Siantar, Sumatera Utara 7. PT. Inang Sari, Padang Mardani, Lubuk Basung Sumatera Barat 8. Puslit. Kopi dan Kakao Indonesia, Jember 9. PT. Perkebunan Glenmore, Jember 10. PTP Nusantara VII, Bdr. Lampung 11. PT. Adijaya Mulia, Jakarta Pusat 12. PT. Tribakti Sarimas Chemical Fertilizer and Insecticide Kiosk Almost all kabupaten of East Kalimantan Province have chemical fertilizer and insecticide kiosk at Kecamatan level.
5
Market
Cacao production is prominent in national scale, and the majority of the products are oriented to export market. More than 85% of Indonesian cacao products are exported and less than 15% of it is for domestic consumption. Domestic consumption is also supplied by imports but with less volume (approximately a half of national/domestic supply). Cacao beans accounted about 80% of the country’s total export of 0.5 million tones in 2003, cacao butter about 9%, cacao powder about 9.5% and about 2% in pasta product. Major importing countries are USA and Singapore and Malaysia: beans products are mainly exported to USA and Singapore and Malaysia, butter products are exported to USA and Netherlands and powdered products are primarily exported to USA and Spain. One of the advantages of Indonesia in term of cacao world market at present is a decrease in production of many cacao producing counties such as Brasilia and Ivory Coast due to impacts of virus attack (through fly fruit).
6
Performance of existing Cacao
The quality of Indonesian cacao remains still low, since farmers are not fully aware of the standards regarding cultivation and or fermentation. Other constraint of Indonesian cacao is a lack of planting and harvesting techniques, resulting bad performances of cacao beans production. It is hoped that both quality and production methods of cacao beans are improved. USA as a leading exporter of Indonesia’s cacao products has a program to improve the quality of cacao beans produced by smallholders’ plantation. The first phase of this program will be completed by September 2005 with donation of 6 million USD.
3.2.6 Industrial Timber Estate (HTI), Pulp and Paper Industry No.
Point of View
Brief Description
1.
Natural Resources/Raw Material
Comparing to other provinces of Kalimantan, at earlier stage East Kalimantan developed HTI as raw material production for pulp industry since before crisis economic, making East Kalimantan as a leader of national pulp industry in the future. The areas of HTI in East Kalimantan reach around 950,000 Ha in total.
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
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No.
Point of View
Brief Description They are located in Bulungan, Berau and Kutai Kartanegara. Moreover, there are about 0.5 million Ha ex-HPH area in all East Kalimantan and 3 million Ha as critical lands include karsts, which could be planted by industrial timbers (Forestry Office of East Kalimantan - Forest Development Department, 2004).
2.
Infrastructure
Mostly of Mahakam River are suitable for transferring raw material product to downstream. Such as Kutai Barat, Kutai Kartanegara, etc. The most recommendable area for HTI development by Forestry Office of East Kalimantan is ex-HPH area in kabupaten Kutai Kartanegara in between Samarinda– Bontang link route of road. This route of road is in good condition with high capacity of loading more than 20 Tons and can direct access with pulp and paper plant for easy hauling.
3.
Labor Requirement
Referring to labor requirement per Ha of oil palm is accorded with the age of plants, HTI labor requirement per Ha is also accorded with the age of plants. Comparing to those of palm oil, HTI needs lower labor requirement. For planting preparation (Yr-0) it needs maximum 72 man-days/Ha, in the first year crops it needs maximum 33 man-day, and then in the fourth year up to the harvest year it needs steadily less than 10 man-days per Ha. This labor requirement pattern is suitable to the low-density population such as East Kalimantan. On average, HTI planting needs maximum only 2 man-months per Ha.
4
Supporting Industries/ Business
Seedling Seedling center that have reputable source of HTI in forestry service. Chemical Fertilizer and Insecticide Kiosk Almost all kabupaten of East Kalimantan Province have chemical fertilizer and insecticide kiosk at Kecamatan level.
5
Market
Pulp and paper: pulp will be an emerging commodity in East Kalimantan and around 250,000 Ha of HTI are ready for harvest. Pulp is a strong export demand commodity including its downstream products such as industrial paper and cultured paper. - Plywood industries are dwindling due to a shortage of raw materials and also they are not considering to be expanded in the future. - The other products such as sawn timber and woodworking also are declining for the same reasons Indonesian pulp did start slowly before 1990, before HTI planting were ready for yield. In 1993 production achieved only 1.7 millions Ton/annum, however it rose more than double to 3.7 million ton in 1999. The crisis which made value of Rupiah sink, has made pulp and paper industry more competitive on the export market.
6
Performance of existing Plantations
Data indicate the existing HTI plantation is still in development. Forestry Office of East Kalimantan; Forest Development Department has been recommended that still area for development 1 plant of Pulp and Paper industry in south region of East Kalimantan. This plant is recommended in downstream region of Kabupaten Kutai Kartanegara (Kecamatan Sanga-Sanga). Very large development areas of HTI will support this plant for about 550,000 Ha.
3.2.7 Particleboard Industry No. 1.
Point of View Natural Resources/Raw Material
Brief Description Particleboard industry converts almost all of raw material (95% - 100%) into end product. This is counted as very efficient if compared to plywood (55%), sawn timber (50%), woodworking (35%) and furniture (25-30%). It can also utilize residues of wood processing plants (ply wood, sawn timber, furniture, etc.) as well as utilize wood from planted trees like rubber. Under current land use situation, East Kalimantan still has a big potentiality for improvement of particleboard industry as it still has a large area of forest and also large area of old rubber trees as an alternative of raw material.
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Point of View
Brief Description
2.
Infrastructure
Section of Mahakam river from Samarinda city to sea is suitable for big ships and usually used for wood products, coal, palm oil, container, etc. a long of year.
3.
Labor Requirement
Wood production in East Kalimantan was established more than 30 years ago, and since then it has been developed to the present. In East Kalimantan, there is integrated business sector and labor force in wood production, there are at least 38 wood industries with more than 35.000 employees, except sawmills, spreading in the region.
4.
Market
Based on data from FAO, world particleboard production shown an increase in recent years. The production in year 2003 before is about 152 million tons or increased 33% from year 1998. The general trend is increase as in year 2003; the consumption is about 151,786 or about 39% from it in 1998. The major producer of particle board is 2003 is USA with share about 18% to the total production, followed by Germany, China and Canada with each share about 11%, 10% and 10% respectively. However, most those countries also have high consumption of particleboard, which meant they are also potential market for particleboard product.
6
Performance of existing Plantations
The number of particle board/MDF mills in Indonesia increased from 19 factories in 1994 to 36 particleboard in year 2003. The production capacity also increased from 1.2 million M3 to the production capacity of 1.7 million M3 in 2003. The biggest production capacity is of PT. Daya Besar Agung Corp. in East Kalimantan, followed PT. Rimba Partikel Indonesian in Central Java as the second biggest and PT. Kartika Kapuas Sari in West Kalimantan as third biggest.
3.2.8 Shrimp (Brackish Water Aquaculture) No.
Point of View
Brief Description
1.
Natural Resources/Raw Material
Total potential area for brackish water in East Kalimantan is about 112,450 Ha, so remain for about 56,408.30 Ha of area is can opened for ponds, Remain of 56,408.3 are located majority in Bulungan for about 15,000 Ha, Nunukan 13,000 Ha, Berau 9,000 Ha, and Kutai Timur, Penajam and Pasir each about 5,000 Ha.
2
Infrastructure
Government has established the facilities for fishery development such as Laboratory of Fishery Products Quality Test and Control (LPPMHP) located in Samarinda and Tarakan cities. The road to the several brackish water aquaculture areas from Bulungan and Berau capital city is relatively good. It is passable by motorbike and fourwheel vehicle. In the other locations, river and sea transportation are used as common conductive mode to transport aqua-cultural products to capital cities and processing plants in Tarakan.
3
Labor Requirement
For brackish water aquaculture needs professional staff in water quality management, fish biologist, fish quality control specialist in HACCP (Hazard Analysis Control Critical Points), a procedure to control the food industry products that applied almost over the world especially in USA, UK, Europe, and Japan as well. This trained professional should be hired from Java or other islands. Also the quality control and packaging professional staff as well should be hired from outside while for labor could fish farmers of the area.
4
Supporting Industries/ Business
Shrimp Fry and Milkfish Fry Shrimp fry is bought from East Java and South Sulawesi, because shrimp fry from hatchery at East Kalimantan is insufficient to supply the local needs (only 15%). Ice Factory
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Point of View
Brief Description At present the ice factory is available in East Kalimantan especially near from fishpond and fishing port. As usually cold storage has an ice machine, and has a ice quality standard should be followed. While ice factory is usually no used standard fishery processing. Cold Storage In East Kalimant, there are 16 cold storages located in 9 factories of Tarakan, 1 factory of Berau, 4 factories of Kutai Kartanegara (surrounding Samarinda), and 2 factories of Balikpapan. Capacity of each cold storage is from 3 to 5 Tons per day.
5
Market
Japan is the main market of Indonesian shrimp (60%), USA (16.5%), and European Community countries (11.6%) and the rest to minor market of Asia. The frozen shrimp export to US market is about 20,187 ton of US total import 462,152 ton. Since the US suspends its embargo of shrimp import from Indonesia on 03 January 2004, the US market is open again for Indonesian shrimp. At present Indonesian has possibility to sale its shrimp to US and European countries. In period of 1996 – 2000 the value of European import the frozen shrimp from Indonesia is growth at average 44.62% annually, while the volume grow at 42.33% (Eurostat Data).
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Performance of existing Plantations
Individual farmers cultivate majority of existing shrimp farms in East Kalimantan. The total shrimp farmers of East Kalimantan is 7,412, and of this 1,007 farmers are located in Kabupaten Bulungan, 2,875 in Kutai Kartanegara and 1,520 in Kabupaten Pasir
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
IV. CURRENT SITUATION AND FUTURE PROSPECT OF MAJOR STRATEGIC AREAS In general, East Kalimantan has two development zones with different development intensity: Northern development zone: it covers extensive development area in Tarakan, Malinau, Bulungan, Nunukan and Berau. This northern area accommodates extensive development in agriculture and plantation (Palm oil and Cacao), fisheries (shrimp), forestry (HTI), mining (Coal). These prime commodities are transferred to coastal cities for further process into secondary products or export through available ports, storage, and Distribution facilities. Tarakan is the major growth center including other secondary centers; Tanjung Redeb, Tanjung Selor, Nunukan, Malinau and Sangkulirang. Southern development zone: it covers the coastal cities of Balikpapan, Samarinda, and Bontang as primary gateway growth centers, and other secondary gateways including Tanah Grogot, Penajam, Melak and Tenggarong. Sanggata although has large coal storage and port, its economic development exclusively influence by coal mining. These growth center areas have functioning as central processing, industries and services. Compare with growth center in northern area, Balikpapan, Samarinda and Bontang have better competitiveness of infrastructure condition, supporting industries and availability of skilled labor. The Major strategic areas in East Kalimantan are Tarakan, Bontang, samarinda and Balikpapan. 4.1 Tarakan City The leading sector of Tarakan is service. Tarakan is an island, with a land area of 250.8 km2. Tarakan has a potential to be the gate for hinterlands (4 kabupatens): • Kabupaten Bulungan • Kabupaten Malinau • Kabupaten Berau • Kabupaten Nunukan The prominent resources in these kabupatens are mining, plantation, and fisheries. Tarakan becomes a service city and transit for hinterlands. The existing Infrastructure facilities are relatively sufficient to support Tarakan as a service city (airport, harbor, inter islands transportation, etc.). Tarakan has a strategic geo-position, which gains a better access to regional market (East Malaysia, Brunei, Philippines, etc.) for competitive commodities of coal, palm oil, cacao, and shrimp. Potential commodities within Tarakan strategic coverage area are include: 1) Marine aquaculture of grouper and corral fish is proposed to develop, especially in Kabupaten Berau. 2) Brackish water aquaculture of semi-intensive shrimp culture in Kabupaten Bulungan. 3) Cacao plantation development and beans processing unit is proposed in Kabupaten Berau. The beans processing unit is intended to cover a potential
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
plantation area of total 24,000 Ha with a production more than 19,500 Tons in Nunukan, Kutai Timur and Berau. 4) Dockyard and heavy equipment maintenance center are proposed to develop in Tarakan, 5) Coal mining, some of which have significant higher grade bitumen, is proposed to develop in Kabupaten Malinau. Tarakan only has 14 big processing industries, which consist of 9 cold storages (fisheries sector) and 5 wood industries (forestry sector). Besides these, it has 1 exporter of coal (mining sector) and more than 700 smallholder industries. The raw materials for these 14 processing industries are generally supplied from hinterlands. Actually, Tarakan has resources such as oil and gas also coal. Oil production has average 2,300 barrel per day for support Bunyu refinery, and gas of 23 MSCF (Million Standard Cubic Feet) per day. There are other mining potential in Tarakan which deposit are still at hypothetical level and need further confirmation of its economic value. 4.2 Bontang City Bontang has 49,757 Ha in area with 14,780 Ha (29.70 %) land and 34,977 Ha (70.30 %) sea, which has a 24.4 km long beach. Bontang has natural gas resources as the largest in East Kalimantan. Bontang is a strategic area to facilitate the proposed potential commodities mainly in downstream natural gas industries. The area is promising for investor to produce secondary sector such as paint, glue, melamine, fertilizer, etc. Presently Kota Bontang has facility for LNG, coal and fertilizer development since each sector has own harbor facility. Bontang city is an industrial city with big potential resource of LNG. This potential resource has become leading for LNG based industries. Where its main raw material (natural gas deposit) on 2001 was estimated about 47.820 TSCF (Trillion Standard Cubic Feet). This reserve volume ensures the company’s sustainability in operation and development for more than 60 years. With large amount of LNG resources, Bontang has good prospect as an industrial city particularly in many kind industries related with natural gas. Currently, there are 2 separated industrial zones, managed and owned by PT. Badak NGL (since 1974) as LNG producer and PT. Pupuk Kaltim (since 1977) as fertilizer producer. The industries created multiplier effect in development of other economic activities, such as trade and service, also make Bontang growing faster. PT. Pupuk Kaltim industrial zone is named Kaltim Industrial Estate (KIE) managed by PT. Kaltim Industrial Estate, a subsidiary of PT. Pupuk Kaltim. This industrial area are recommended for various size of chemical industries particularly those which related to natural gas or fertilizer, such as: Ammonium Nitrate, Nitric Acid, Acrylonitile, Caprolactam, Methyl Amine, etc. This potential is a promising opportunity for investors. However, Bontang land area is very limited and has less than 5,248 Ha for development of other sectors. Land area of Bontang is categorized as follow: Area
% By Total Land
Kutai National Park
5,950 Ha
40.26
PT. Badak NGL industrial zone
1,572 Ha
10.63
Land Utilities
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
Area
% By Total Land
PT. Pupuk Kaltim industrial zone
2,010 Ha
13.60
Development area include government offices, infrastructures, human settlements, etc.
5,248 Ha
35.51
Land Utilities
Source: Bappeda of Bontang, 2004
4.3 Samarinda City Leading sectors in Samarinda are service, trade and processing industry. Samarinda city covers the area of 71,800 Ha. As a capital city of East Kalimantan province, Samarinda City is an important gate for all Kabupatens/cities, also as business orientation, especially for the high potential resources areas, such as: • • •
Kabupaten Kutai Kartanegara Kabupaten Kutai Timur Kabupaten Kutai Barat.
The prominent resources of the region are forestry, mining and plantation. As a city of service, trade and processing industry, Samarinda is provided with facilities and infrastructures for supporting these sectoral industries. Samarinda is a strategic area in facilitating the proposed potential commodities of forestry, and plantation leading sector: 1) Potential HTI of more than 550,000 Ha in Kabupaten Kutai Timur, Kutai Kartanegara, Pasir, etc. for pulp processing product. 2) Sustainable wood industry such as block board and particleboard is promising to development in Samarinda. Samarinda is the biggest city in East Kalimantan and plays important roles in East Kalimantan development. Besides government role, Samarinda plays an important role as collector and distribution center of primary product from hinterland and consumption commodities from outside islands. Economic goods from the surroundings of Samarinda are woods, coal, cacao, pepper, etc. On the other hand, consumption goods such as sugar, wheat, and others are transported from outside of Kalimantan, e.g. from Java and Sulawesi Based on the Use of Land Regulation of 2001, the utilization of land in Samarinda city is as follows: Buildings and yards 21,199 Ha, heavy forests 1,375 Ha, light/smallholder forest 1,709 Ha, smallholder plantations 5,201 Ha, farm and plantations 10,357 Ha, rice fields 12,920 Ha, grass fields 55 Ha, swamps 497 Ha, pond & embankment 74 Ha, dry land 14,872 Ha and others 3,554 Ha. Samarinda is not rich in natural resources. But Samarinda has facilities for processing industries. Plywood manufacture is among processing industries in operation. The raw materials for these processing industries are not originated from Samarinda but generally supplied from hinterlands, And also in mining sector, coal from Kabupaten Kutai Kartanegara is carried out via Mahakam river to Samarinda, and then to offshore loading. The important and strategic economic and development function of Samarinda is as a general gate of East Kalimantan and a service city for potential hinterlands areas (Kabupaten Kutai Kartanegara, Kutai Barat and Kutai Timur).
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
4.4 Balikpapan City Kota Balikpapan is a southern gateway of East Kalimantan Province. Leading sector of Balikpapan is oil and downstream industry. Balikpapan City has 50,330 Ha in area. Mining is the largest contribution sector for the non-oil and gas export group in Balikpapan, which supports other industry to develop. With its sufficient infrastructures and facilities and as important gate of East Kalimantan, Balikpapan has stimulate the development of other industries, mainly in related oil and gas sector. Balikpapan also facilitates the economic development in hinterland areas by absorbing their raw product for processing or trading to other islands or countries. Hinterland kabupaten influences by Balikpapan economy are: • Kabupaten Pasir • Kabupaten Penajam Paser Utara • Kabupaten Kutai Barat This region has competitive resources for plantation development and has a facility Karianggau Industrial Estate. Balikpapan is a strategic area to facilitate leading industrial product and commodities of: 1) Palm oil plantation and crude palm oil (CPO) product from potential plantation of more than 50,000 Ha in Kabupaten Pasir, more than 20,000 Ha in Kutai kartanegara, more than 15,000 Ha in Penajam, etc. 2) Downstream product of CPO: cooking oil (margarine) and shortening as proposed its processing industry in Balikpapan. Balikpapan is an industrial city with rich potential resources and big industries of oil. This potential leads others to oil based industries. The main raw material is available; oil deposits of East Kalimantan transported to Balikpapan refinery amount more than 1.18 billion barrels in 2001. At the same time oil deposits in Indonesia has a total amount of about 40.91 billion barrels. Balikpapan refinery supplies about 30% of national fuel need in east Indonesia. Other advantage of Balikpapan is the position as a main gateway from and to East Kalimantan. Balikpapan is expected to play an important role in distributing primary products from hinterland regions e.g. Kabupaten Kutai Barat, Kabupaten Kutai Kartanegara, Kabupaten Pasir, and Kabupaten Penajam Paser Utara. The leading economic products from the surrounding of Balikpapan are woods, oil palm, coal, rubber, cacao, coffee, etc. 4.5 Business Development in Strategic Areas Strategic Area Kota Samarinda
Recommended Business Service, trade and processing industry such as Wood industries, warehousing, forwarding, shipping, etc.
Existing Infrastructures and Facilities Land Transportation Samarinda has good accessibility inland transportation to northern (Bontang), to western (Tenggarong/Kutai Kartanegara) and to southern (Balikpapan). Harbor Samarinda harbor is 3rd class type of harbor, which managed by PT. (Persero) Pelabuhan Indonesia (Pelindo), and open to foreign and general trade. Facilities Samarinda has lots of hotels, and other accommodations, and banks. In 2003, there are 38 hotels (3 as star hotel) with
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
Strategic Area
Recommended Business
Existing Infrastructures and Facilities more than 3,000 rooms, 14 public banks and 1 local government’s bank and 1 Regional Office of Indonesia Bank Central, 8 general hospitals, and many car rentals (including non-metered taxies).
Kota Balikpapan
Oil and the downstream industry, service, trade and processing industry such as Palm Oil Industries, and downstream product of CPO as like cooking oil, margarine, etc.
Land Transportation Balikpapan has good accessibility inland transportation to northern part (Samarinda, Tenggarong and Bontang). Seaport Seaport Semayang in Balikpapan is categorized as a class 3 harbor, which is managed by PT. (Persero) Pelabuhan Indonesia (Pelindo), and open to foreign and general trade. Airport Balikpapan has an airport (Sepinggan International Airport), which is managed by PT. Angkasa Pura, is the second busiest airport in Indonesia after Soekarno-Hatta International Airport in Jakarta. It serves local routes, like to Tarakan, domestic routes to Jakarta, Semarang, Surabaya, Makasar, and other cities, and international routes to Singapore. In the Hajj season, there are direct flights from Sepinggan to Saudi Arabia. Facilities The banks operating in Balikpapan are Bank Indonesia, Bank Mandiri, BNI, BCA, BRI, BII, Bank Danamon, Amro Bank, Bank Muamalat, Bank Permata, and Bank Economy. Insurance companies operating in Balikpapan are numerous. Up to 2002, there were 21 insurance companies. As a gateway to Kalimantan, a transit city, and a tourist destination, Balikpapan has adequate accommodation facilities. Official data show that in 2002 there were 40 hotels, including 10 star hotels. Grand Senyiur is the only five-star hotel in Balikpapan. Overall, the hotels in Balikpapan have 1,960 rooms, consisting of 1,051 rooms in star hotels and 909 rooms in non-star hotel. Balikpapan has 1 public hospital, 2 military hospitals, besides 1 public maternity clinic and 1 private maternity clinic. Overall, the hospitals and clinic have 687 beds and 1,053 medical workers. Other health facilities are 25 public health service center, 15 private and military clinics, 3 national dispensaries, 46 private dispensaries, 1 pharmaceutical wholesaler, and 9 medical laboratories.
Bontang
LNG producing, industries based on LNG (Ammonia), and downstream product of ammonia as like Fertilizer, Synthetic Fiber, Textile, Tires, Melamine and Adhesive, etc.
Land Transportation Bontang has good accessibility inland transportation southern part (Samarinda, Tenggarong and Bontang).
to
HarborThere are two kinds of harbor, such as harbors in each industrial zone and public harbor. PT. Pupuk Kaltim built 4 harbors; 3 harbors for fertilizer with capacities of 6,000 DWT 20,000 DWT and 40,000 DWT, and 1 harbor for ammonia with a capacity of 40,000 DWT. The harbors can anchor 7 vessels at the same time, giving these harbors a combined shipping capacity of about 4 million tons of fertilizer and 2 million tons of ammonia per year. While, ICD (Indonesian Card Datum) is 12 meters, ships of up to 100,000 DWT can pass the sea line of PT. Pupuk Kaltim quays. PT. Badak NGL built 3 loading piers that have the ability to handle 3 shipments at the same time. Up to December 2002 from 1977, Badak NGL plant had made 4,713 shipment LNG and 277 shipment LPG by about 55,000 tons per shipment of LNG and about 45,000 tons per shipment of LPG. In 2002, from the piers, there were 357 shipments of LNG and 20
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
Strategic Area
Recommended Business
Existing Infrastructures and Facilities shipments of LPG. Facilities Bontang have many hotels, other accommodations, and bank. In 2002, there are 18 hotels (one as star hotel) with 425 rooms, 5 public banks, 1 local government’s bank, 5 general hospitals, and many car rentals (including non-metered). “Bontang Lestari” is new town of Bontang is still under construction, which city government will be centered and managed become safety and complete facilities. Bontang Industrial is international scale required sufficient supporting various city facilities.
Tarakan
Service and processing industry such as wood industry, cold storage, Dockyard and heavy equipment maintenance, etc.
Seaport Port of Tarakan (Malundung Port) manages by PT. (Persero) Pelabuhan Indonesia (Pelindo) IV Tarakan is open to foreign vessels and is a port of general trade status. Airport Airport in Tarakan (Juwata Airport) as the northern gate of East Kalimantan is managed by UPT. Ditjen Perhubungan Udara (Directorate of Air Transportation, Ministry of Communication). This airport serves small plane flight, Boeing 737 plane flight and also medium plane flight as Fokker. Boeing 737 planes fly daily regular flights from Jakarta via Balikpapan (Sepinggan Airport) by Mandala Air Service (in one flight) and Merpati (in 2 different flights; Jakarta – Balikpapan, and Balikpapan Tarakan), and two weekly international flights by Malaysian Air Service to Tawau-Malaysia. Capacity of this Boeing 737 plane is 148 passengers. Facilities Tarakan have many hotels, other kinds of accommodation, and bank. In 2004, there are 28 hotels (4 as star hotels) with a total of 486 rooms, 4 public banks and 1 local government’s bank, 5 markets/shopping centers, 2 general hospitals, and many car rentals. Available taxies are without any automatic fare meter (argo).
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
V. CONSTRAINTS IN INVESTMENT CLIMATE (1)
In case of road construction, the area faces with the problems of soft soil. On the other hand, since there is no road that directly connects plantation sites and the main roads, the investors should construct their own access road and drainage system. The water transportation has been restricted in dry season since rainfall influences water depth and mileage.
(2)
Sediments to Samarinda river port. The sediments will excessive by the application open mining of coal Kabupaten Kutai Kartanegara, and Kutai Barat. Therefore the Samarinda river port needs to be dredging annually to meet the to big ship navigation requirements. The beginning of 2005 the dredging and river widening works will be implemented continue; this is financing by Government budget.
(3)
The new prospected area such as Kabupatens of Malinau, Nunukan, Kutai Barat and Kutai Timur does not well equipped with facilities of star hotel, limited commercial banks, warehousing, etc.
(4)
A total area of 4,525,479 Ha has been utilized for community plant estate (199,700 Ha), fisheries (56,350 Ha), and agriculture (168,864 Ha). While, the area with a license for plantation estate is about 3,146,070 Ha, which belongs to 188 companies. Therefore, the remaining area is about 1.1 millions Ha for settlement, industry, and etc. Currently, the total area of plantation (palm oil, rubber, etc.) is 138,881 Ha (only 4.41% of permitted plantation land area 3,146,070 Ha). Therefore the available area for further investment in plantation is 3,007,189 Ha or more than 95.59%. The fact that 26.42 % conversion forestland have been converted into plantation land awarded to investors are still idle. This indicates that the realization of plantation scheme is still under limit of available land. So, to maximize the utilization of allocated but idle land area of 3,007,189 Ha should be activated or taken over by other potential investments
(5)
Kabupaten Governments provide no special incentives for investment; they follow the guideline and investment incentive that given by BKPM.
(6)
Excessive effort to collect revenue from tax and retribution become their target, which make a further high economy cost and low competitiveness of the region to attract investment.
(7)
Plantation Business Permit limits the size of plantation scheme at 20,000 Ha for each company in one province, or 100,000 Ha per company in all provinces of Indonesia. Business permits for pulp and paper plant are issued by the Ministry of Trade and Industry while the business permits for timber estate (HTI) are issued by the Ministry of Forestry; thus, a new investors, prior to submitting his proposal, has to study the coordination among related agencies.
(8)
The main problem of labor is deference in productivity. At some place the productivity of migrant labor is higher than the local counterpart, but to hire the migrant labor especially from outside could create jealous problem.
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
VI. PROPOSAL OF PROSPECTIVE PROJECTS Analysis as presented in Chapter 3 with some consideration on Chapter 1, 2 also Chapter 4 and constraint in Chapter 5 point outs the commodities proposed that could be recommended for investors to establish the business in East Kalimantan. There are 11 commodities and industries, which identified in Chapter 3 as the prospective commodity/industry that suitable to be proposed for investment. Some of the prospective commodities/industries above will be presented in this chapter as project profile, these are: 1) Coal Mining, 2) Oil palm Plantation and CPO Processing, 3) Industry of Cooking Oil, Margarine and Shortening, 4) Cacao Plantation, 5) Industrial Timber Estate (HTI), Pulp and Paper Industry, 6) Particle Board Industry, 7) Shrimp (Brackish water aquaculture), and 8) Dockyard and Heavy Equipment Repairing Center. Each proposed project generally will present in the following order: 1) General Overview, 2) Competitiveness, 3) Market Opportunity, 4) Potential Location, 5) Infrastructure and Business Support Facilities, 6) Project Component, and 7) Business Scale 6.1 Coal Mining Project Profile No. 1 2
Point of View
Brief Description
Project Name
Coal Mining
General View
Coal is a demanding energy alternative to replace a high increasing price of petroleum. Coal is categorized into 4 major products, which are: 1. Lignite: as lowest calorie of coal and highest water content (2000-3000 kcal/kg and 30-45%). 2. Sub-bitumen coal: produce 5000-6000 kcal/kg and with 10-25% water content. 3. Bitumen coal: has 7000-8000 kcal/kg with 6-10% water content. 4. Anthracite: is the high calorie of coal, with 7000-8000 kcal/kg and only 13% of water content. In East Kalimantan, there are 48 mining operator companies in East Kalimantan consist of 7 companies under generation-I contract, 7 from generation-II contract, and 34 from generation-III contract. From total 48 companies, only 9 mining companies were operated including other 5 companies under mining authorization to produce a total more than 60 millions Ton in year 2003.
3
Competitiveness
Indonesia is included in countries of major products of coal, with hypothetic deposit at end of 1997 reach a number of 36.6 billions Ton and in 2004 increase to about 50 billions Ton, while, East Kalimantan has hypothetic deposit of coal more than 17 billions Ton. In 2003, from the total national product (114,278,195 Tons), East Kalimantan contributed more than 52% (60,168,384 Tons). Total deposits of East Kalimantan coal in 48 PKP2B companies areas are about 12,590.60 millions Ton, and in other resource areas estimated as possible reserves which can be mined about 4,510.76 millions Ton. This other areas are opportunity for investment.
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Market Opportunities
World trade of coal has been becoming significantly changed because of China reducing their export to support their own industries. Moreover, China also imported coal to save guard their energy reserve. Besides, world demand of coal has been continuously increase, for example Philippine country is still require more than 10 millions Ton per year and several ASEAN countries, such as Malaysia and Thailand are still needed more volume of coal. Presently, Indonesia is exported coal to South Korea, Japan, Taiwan, and will be added
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Point of View
Brief Description new costumers from ex China coal importer. The limited of coal in the world trade is another opportunity for Indonesia coal to be explored more intensively. Coal resources in Indonesia are still sustained at more than 50 billions Ton, for at least 50 years exploitation. Indonesian coal price in the end 2004 has been increased to more than USD 30 (per Ton FOB 6,700 cal/g). On 2005, Indonesian coal price are estimated to be increase to USD 35. Indonesian coal price has been decreased gradually from highest price on 1990 of USD 47.75 to the lowest price on 2003 of USD 28.63. But, this price still better than Australia-Japan Benchmark Coal Price. In general Indonesian Coal prices is above the average price of coal supplied through Australia, and Japan markets, as presented in Figure 6-1.
5
Proposed Location
There are at least 2 kabupatens, kabupaten Pasir and kabupaten Malinau that have potentials for coal mining investment. Both areas: Kabupaten Pasir has predicated quantity more than 700 millions tons with CV: 4,762 - 6,734 cal/g and Kabupaten Malinau has predicated quantity more than 300 millions tons with CV: 5,500 - 7,200 cal/g.
6
Infrastructure and Business Support Facilities
Transportation The best transportation mode for coal is river. From mining location in Malinau to Tarakan coal terminal in Makassar Strait are ablees for barge carrier through Sesayap river. And also from mining location in Pasir to coal terminal in Balikpapan and Makassar Strait are directly connected by Kendilo big river. Coal Terminal Tarakan has coal terminal capacity up to 10.000 – 40.000 DWT, as other terminal is prepared to built in the Tarakan island. Balikpapan has coal terminal with 60.000 – 75.000 DWT capacity located in Kariangau. Heavy Equipment Heavy equipment supply and maintenance are easily supported from Balikpapan and Tarakan. Several heavy equipment supplier and rental are available in Balikpapan and Tarakan, such as PT. Trakindo, PT. United Tractors, etc. Other Custom clearance for export mining product from Kabupaten Pasir and Malinau will be directly served in Balikpapan and Tarakan, respectively.
7
Project Components
The main cost factors arises in many mining business application and its exploitation are indicated to be occurred in the following components: •
Permit Application
: PKP2B license, mining location permit, HGU, and IUT (Exploitation permit) including environment impact analysis.
•
Land
: Land price of coal mining has a various fluctuated depend on infrastructure availability and location which ranging around Rp. 2,000 to Rp. 12,500.- per meter square.
•
Building/Factory
: Coal mining is not needed special factory building for produce coal. Building needs for office or transportation/equipment warehouse and maintenance activities (workshop). In some mining location areas offices and housing for workers are needed.
•
Equipment/Machine and
•
PT. PCII
Transport/Vehicle
: Mining equipments/machines, tractors, trucks, workers vehicles, etc., particularly related to import duties for equipment and tools, which are not available in Local market.
Labor
: Standard labor wage for coal mining based on Provincial Minimum Wage (UMR Provincial) of East Kalimantan is Rp. 672,000 per month. UMR is the minimum salary for lowest position in job or function or settle. So the salary for a
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Point of View
Brief Description higher position or function should be more. Electricity
: Since electricity are not available in remote areas, power supply units (generators) are needed with sufficient number and capacity.
• Clean Water
: Clean water is needed for washing process. Deep well pump is required in some mining location with sufficient number and capacity. Abstraction from river raw material in large amount requires permit from Local Government.
•
8
Proposed Business Scale
Coal mining activities need intensive capital, for exploitation technology and market based investment. Not limited to long-term exploitation activities, significant cost will also be required for environmental management including land rehabilitation or reclamation over ex mining areas.
45.00 Coal price in end 2004 Estimated coal price in 2005
40.00 35.00 30.00 25.00 Australia-Japan Benchmark Coal Prize
Indonesia Export Coal Prize
94 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 19
19
19
19
19
19
92 93
20.00 90 91
Price (USD per Ton FOB 6,700 cal/g)
Figure 6-1 Trend of Indonesian Export Coal Price and Australia-Japan Benchmark Coal Price
Year Source: Kaltim Prima Coal, 2004 Barlow Jonker, 2004
6.2 Oil palm Plantation and CPO Processing Project Profile No.
Point of View
Brief Description
1
Project Name
Oil palm plantation and Crude Palm Oil (CPO) processing Unit
2
General View
The fruit is reddish, about the size of a large plum and grows in large bunches. A bunch of fruits can weight between 10 to 40 kilograms each. Each fruit contains a single seed (the palm kernel) surrounded by a soft oily pulp. Oil is extracted from both the pulp of the fruit (palm oil, an edible oil) and the kernel (palm kernel oil, used mainly for soap manufacture). For every 100 kilograms of fruit bunches, you typically extract 22 kilograms of palm oil and 1.6 kilograms of palm kernel oil.
3
Competitiveness
From 1999 to 2003, East kalimantan productions of oil palm grew average more than 22.52% per year, and the areas of oil palm plantation grew average 8.29% per year. Remain estimation of land area available for proposing plantation is about 510,000 Ha. Based on the study, those areas could be proposed for oil palm plantation about 300,000 Ha. An effort of government that plant estate license should be reviewed and proposed to be terminated by Governor of East Kalimantan province, based on letter No. 521/6115/Proda.2.1/Ek, dated 26 September 2003, about there are 146 companies with total area of about 2.5 million Ha (minimum about 1.36 millions on slope 2-15%), if effectively work will be give more opportunities for the new potential investors or for expansion planted area of existing companies. With this effort hoped that oil palm plantation will be
PT. PCII
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Point of View
Brief Description grow in 2004 to 2005 and so on.
4
Market Opportunities
Demand for crude palm oil is expected to grow in coming years and reach 40.5 million tones by the year 2010 (Oil World, 1996). While, the world production is estimated amount of 38,273 million tones in 2010. This means that the demand exceeds supply in this market. This high demand for palm oil has created an opportunity for the company to extend its production capacity and investment 2010 projection indicates that Indonesia will become as the leading palm oil producing countries. Its caused Indonesia has available area for develop plantation. The CPO price decreasing in year of 1998 up to 2001 as presented in Figure 6-2 could be because of oversupply of CPO that have planted in 1996 are in ripening or harvesting stage so the production going up. Also some countries like Malaysia, Puerto Rico, PNG supply the market. While the CPO price fluctuation between 2001 and 2004 is still in normal market competition.
5
Proposed Location
At present estimated the most available and suitable remain areas for oil palm plantation is about 300,000 Ha in only 2 kabupatens. Kabupaten Pasir has estimated available area 40,000 Ha and 260,000 Ha has estimated in Kutai kartanegara.
6
Infrastructure and Business Support Facilities
CPO Bulky Harbor All over the province, there are 4 harbors for palm oil loading and unloading: 1 harbor at Tabang (Kutai Kartanegara), 1 at Penajam, 1 at Pasir, and 1 at Sangkulirang (Kutai Timur). Warehousing In harbor areas and transaction areas there is no leasing warehousing for CPO; almost all companies built their own warehouse for their CPO. Semayang public harbor in Balikpapan and Samarinda public harbor have sufficient storages to be utilized for CPO export. Heavy Equipment Several suppliers of heavy equipment are available at Balikpapan and Samarinda, such as PT. Trakindo, PT. United Tractors, etc. Other Custom clearance for export products from Kabupaten Pasir and Kutai Kartanegara will be directly serviced in Balikpapan and Samarinda, respectively.
7
Project Components
The main cost factors arises in many plantation business application and operation are indicated in the following issues: - Permit
: Cost to provide plantation location permit, HGU, and IUT.
- Land
: Land price for plantation are largely un uniform depend location and available infrastructure which ranging about Rp. 1,000 to Rp. 5,000.- per meter square.
- Building/Factory
: The cost for building of the factory will be base to international prices of Balikpapan prices, since major component of the Factory are made or produced in Jakarta or imported. Building cost for office and housing can use local base prices (kabupaten).
- Equipment/Machine : Factory equipments for CPO processing including laboratory are base to the import prices. Consideration should be made to the import duties applied to the correlated equipment.
PT. PCII
- Transport/Vehicle
: Local (Kabupaten) prices implemented to regular vehicles which were produced in Indonesia. For imported vehicles, imported prices should be use including the import duties.
- Labor
: Standard wage plantation labor is based on Provincial Minimum Wage (UMR Provincial) of East Kalimantan, that is Rp. 636,000 per month. Average oil palm
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Point of View
Brief Description plantation needs only two man-months per Ha.
8
Proposed Business Scale
- Raw Material
: Seed, should be supported from out of Kalimantan or import, with import prices or domestic prices. While, fertilizers mostly are available at local (Kabupaten) market, and can be purchased at local prices.
- Electricity
: No available supply provided by state electricity company. Each investor should prepare their own independent power supply.
- Clean Water
: Clean water should treated from available raw water, either form river abstraction or ground. No clean water facilities provided by government in most of remote areas.
Oil palm plantation and CPO mills activities are needed intensive capital, technology and market based investment. Oil palm plantation requires large area to provide sustainable fresh fruit bunch for CPO production; land possible additional area may needed for future expansion. Followed to available regulation, there is impossible to build processing CPO without provides sustainable plantation. Thus investment in CPO and Palm oil plantation is include as capital-intensive project.
Price USD/Ton
Figure 6-2 Trend of Indonesian Palm Oil (CPO) Price at Rotterdam Market 700 600 500 400 300 200 100 0
665 550 447
440 283
1997
1998
1999
2001
407
336
2002
2003
2004
Year Source: Joint Marketing Office, PTP Nusantara (Persero), Jakarta
6.3 Cooking Oil Project Profile No.
Point of View
Brief Description
1
Project Name
Cooking Oil Industry
2
General View
Cooking oil is the downstream product of CPO, the other downstream area is also chemical which appears in trade name as Ester and Amino, etc. This OleChemical product requires higher technology for processing.
3
Competitiveness
As CPO downstream product, cooking oil absorbs around 70% of CPO raw material. The other remaining is further processed for soap (11%), margarine (10%) and oleo chemical (9%). Being attracted by global consumer prices, a number of palm oil plantations have been developed in Kalimantan, especially in West Kalimantan, Central Kalimantan and East Kalimantan. In national scale, the extension level of oil palm plantation in East and West Kalimantan is larger than that of Sumatra provinces. But, industry of cooking oil as simple downstream industry has not been developed yet in East Kalimantan. While, 2 units have been established in West Kalimantan, one of which is owned by state plantation company. Future large number of raw CPO production and strong cooking oil market demand are the considerations for cooking oil investment opportunity, which is promising. Moreover, development of oil palm plantations in Kalimantan, particularly East Kalimantan will give a better competitiveness. Every year planted oil palm area and production of fruit branches were increasing.
PT. PCII
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No. 4
Point of View Market Opportunities
Brief Description The largest importing countries are India, China, Netherlands, Singapore, Turkey, USA and Yemen. In 1996, the total export volume was only 690 thousands Ton, while in 2003, the total export volume was increase to 2,727 thousands Ton. Domestic consumption of cooking oil has been increasing, which may result from population increase and also an increase of consumption per capita. A slight decline occurred in 1998 due to limitation of national cooking oil stock, casing higher prices in retail market. Domestic consumption per capita is estimated to reach 8.43 kg in 2003 from only 6.01 kg in year 2000 and projected up from 2003 domestic consumption per capita will be increase. Furthermore, the new cooking oil producers in East Kalimantan can meet high domestic demand, especially in east region of Indonesia where currently there is no plant for cooking oil production. According to Malaysian Oil Palm Statistic 2003, world consumption of cooking oil is also increased by average more than 9% between 1998-2003.
5
Proposed Location
Kariangau is oriented for manufacturing and light industries (it available potential space for 28 big companies and 79 small medium enterprise).
6
Infrastructure and Business Support Facilities
Transportation As a gateway to East Kalimantan, Balikpapan is a transit city to other cities or kabupatens in East Kalimantan, also to neighboring provinces, like Banjarmasin in South Kalimantan. The access road of Balikpapan – Samarinda – Kutai Kartanegara and Bontang has very good condition. This access road connects to South Kalimantan through Pasir, with lower condition. Harbor/Seaport, First, Seaport Semayang in Balikpapan is categorized as a class 1 harbor, which is managed by PT. (Persero) Pelabuhan Indonesia (Pelindo), and open to foreign and general trade. The activities of port include local inters lair and ocean going. The storage/warehouse facilities of port are still limited. Second, Kariangau harbor has the depth of 12 m and can be served ocean going with capacity ship about 35,000 DWT. It will be implemented middle 2005 through allocated budget APBN 2005 with amount of US$ 92 million. Airport, Balikpapan has an airport (Sepinggan International Airport), which is managed by PT. Angkasa Pura, is the one of busiest airports in Indonesia after Soekarno-Hatta International Airport in Jakarta. It serves local routes, like to Tarakan, domestic routes to Jakarta, Semarang, Surabaya, Makasar, and other cities, and international routes to Singapore. In the Hajj season, there are direct flights from Sepinggan to Saudi Arabia. Heavy Equipment Heavy equipment will be directly supported from Balikpapan or Samarinda. Several suppliers of heavy equipment are available at Balikpapan and Samarinda, such as PT. Trackindo, PT. United Tractors, etc. Incentives Incentive will be provided by local government, if the investors allocate its industries in Kariangau Industrial Estate for certain commodities related to oil and gas, palm oil, cacao, rubber, shrimp, food beverages and handicraft. The incentive applies to the reduction of retribution for local permit and building permit. Other Custom clearance for export products will be directly serviced in Balikpapan or Samarinda.
7
Project Components
PT. PCII
For cooking oil industry, consideration is to be made to several cost components related to project development operation. The main cost factor are explain in the following list: •
Permit
:
Cost related of location permit, HGU, IMB and IUT.
•
Land
:
Land prices for cooking oil industry are not uniform depend to available infrastructure and
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Point of View
Brief Description accessibility. Land prices in KIK (Kariangau Industrial Estate) range about Rp. 300,000 to Rp. 500,000 per meter-square (year 2003). •
Building/Factory
:
Building cost are refer to Jakarta prices and import prices for factories which uses imported material. Local cost is use as reference for standard building construction as offices, houses, etc.
•
Equipment/Machine
:
Factory equipments for cooking oil processing including the CPO clearness, CPO saturated fat rate, steam, distillation, product control small laboratory, and packaging installation, etc. are base to the import prices. Consideration should be made to the import duties applied to the correlated equipment.
•
Transport/Vehicle
:
Local (Kabupaten) prices implemented to regular vehicles which were produced in Indonesia. For imported vehicles, imported prices should be use including the import duties.
•
Labor
:
Labor wage for cooking oil industry in Balikpapan is Rp. 732,000 per month.
- Electricity and Clean Water : Both are provided in the industrial Estate independent supply by investor is not required. 8
Proposed Business Scale
Considering to existing production of CPO and development of oil palm plantation in East Kalimantan, the project include as medium scale investment, with maximum capacity about 50,000 Tons a year. In 2003, East Kalimantan was produce more than 150,000 Tons of CPO. Generally, all cooking oil factories in Indonesia are in scale of business under 100,000 Tons a year. Cooking oil industry requires semi-intensive capital, moderate to advance technology and intensive market based investment. Based on Indonesia Cooking Oil Production 1996 – 2003 as mention before, export quantity was 2 times comparing to domestic consumption. In last 5 years the proposed project for East Kalimantan is considered as medium to high investment scale business.
Figure 6-3 Trend of Indonesian Cooking Oil Price at Rotterdam Market
Price (USD/Ton)
700 618
600 500 400
445
472 397
384
300 200 100 0 1998
1999
2001
2002
2003
Year Source: Joint Marketing Office, PTP Nusantara (Persero), Jakarta
PT. PCII
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
6.4 Cacao Plantation and Beans Processing Unit Project Profile No.
Point of View
Brief Description
1
Project Name
Cacao Plantation and Cacao Beans Processing Unit
2
General View
Raw material is cacao beans produced by cacao plantation. East Kalimantan produce 21,900 ton of bean (2003) from 32,278 Ha plantations as the fifth largest product of Indonesian provinces. Three basic type of cocoa which are criolo, a basic South American plant which very sensitive to disease and pest, Forastero is a more resistant as ordinary cacao, and Trinitario is a hybrid, which has better performance. Forastero is the dominant cacao planted in Indonesia. Development of Central government policy in cacao development is focusing to rehabilitate cacao plantation (mostly smallholders) and technical assistance to smallholder. Also facilitation is provided for cacao processing product.
3
Competitiveness
Indonesian product of cacao beans are increasing in the last decade by average 9.5% per year from 270,000 ton in 1994 to 510,000 ton in 2001 yielded by expanding cacao plantation of 574,000 Ha in 1994 to 668,000 Ha in 2001. While on 2003, the area of cacao plantation increases to 722,000 Ha whits its production of beans more than 550,000 Tons. The strong point of Indonesian cacao processing industry are indicated as:
4
Market Opportunities
•
Large number of area potential for cacao plantation by soil suitability and climate (particularly East Kalimantan).
•
Indonesian cacao is recognized as a good delicious type compare to other country.
•
Adequate supply of cacao bean as main raw material for cacao processing industry. Raw cacao bean for industry is not as high requirement standard as cacao bean for export.
•
Short of world supply correlated with decreasing of major cacao production from South America, Malaysia and Thailand due to ‘witches broom disease’ which may take longer period to recover.
Based on the London Cocoa Terminal Market and on the New York Coffee, Sugar and Cocoa Exchange, price of cacao beans was fluctuated: from 1991 to 1998 was increase significantly about 6% a year, while up to 1998 to 2000 was in the lowest price (in the periode 1991 t0 2003). After 2000, price of cacao beans was jump to the highest price in 2002 to more than 100%. All cacao bean producers therefore exported most of their production leaving domestic industry without supply. Major importers of Indonesian cacao are USA, Singapore and Malaysia for non-fermented product and Europe for fermented product.
5
Proposed Location
Referring to Land Availability, estimated area for cacao plantation is about 210,000 Ha in Kabupaten Berau. This estimated area is a large land for development cacao plantation. In 2003, planted areas of cacao in Berau were covered areas about 6,295 Ha.
6
Infrastructure and Business Support Facilities
Bulky Harbor There is no specific harbor for required cacao raw or processing production. Public harbor for loading and unloading cacao production is available in Nunukan, Tarakan, and Berau. Berau has sufficient harbor to support development of plantation and processing unit. Warehousing Warehouse and open storages are available in Tarakan port as the largest facilities in the region, also in Nunukan and Tanjung Redeb (Berau). Tanjung Redeb is sub regional harbor, which has better facilities compare to Nunukan. Transportation Cacaos from these areas are more easily to be transported by water/river because inland transportations are insufficient and heavily damaged in some section.
PT. PCII
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Point of View
Brief Description Seedling East Kalimantan and other provinces in Kalimantan have not cacao seedling production center. Cacao seeds for plantation development in the area should be offered from other provinces, such as North Sumatera (Medan), Lampung and East Java (Jember). The seed production centers as appear in the previous table are has capability to distribute the seedling for national consumption including some to neighbored countries. Chemical Fertilizer and Insecticide Kiosk Almost all Kabupaten of East Kalimantan Province provides chemical fertilizer and insecticide kiosk at Kecamatan level. The prices are higher for large plantation purposes and lower price only applies to small holders. Other Export of cacao beans product should be through Tarakan or Balikpapan or through Surabaya harbors. The custom clearance for export administration etc. is not available yet in Tanjung Redeb harbor.
7
Project Components
For cacao plantation and processing unit of cacao beans, several components of the project and also as main factors of cost should be prepared. The main components/factors are: •
Permit
: Cost to provide plantation location permit, HGU, IMB and IUT.
•
Land
: Land price for plantation are largely un-uniform depend location and available infrastructure which ranging about Rp. 1,000 to Rp. 5,000.- per meter square.
•
Building/Factory
: The cost for building the beans processing factory will be base to international price of Balikpapan or Tarakan prices, since major component of the factory are made or produced in Jakarta or imported. Building cost for office and housing can use local base prices (Kabupaten).
•
Transport/Vehicle
: Local (Kabupaten) prices implemented to regular vehicle which were produced in Indonesia. For imported vehicles, imported prices should be used including the import duties.
•
Labor
: Standard wage for plantation labor based on Provincial Minimum Wage (UMR Provincial) of East Kalimantan is Rp. 636,000 per month. Average oil palm plantation needs minimum 4 man-months per Ha.
•
Raw Material
: Seed, should be supported from out of Kalimantan, with domestic prices. While, fertilizers mostly are available at local (Kabupaten) market, and can be purchased at local prices.
Electricity
: No available supply provided by state electricity company. Each investor should prepare their own independent power supply.
• Clean Water
: Clean water should treated from available raw water, either form river abstraction or ground. No clean water facilities provided by government in most of remote areas.
•
8
Proposed Business Scale
Considering to the land availability in Kabupaten Berau, approximate a cacao plantation area of 5,000 Ha with estimated production after harvest 3,500-5,000 ton per year are proposed for development with potential to extent to maximum 10,000 Ha. Although only 60 % of production capacity are covered by processing cacao industries the future market particularly cacao powder indicate a significant growth. A processing industry to produce cacao powder and pasta will promise to develop in Tanjung Redeb, with capacity about 3,000 to 4,000 ton/year.
PT. PCII
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
Figure 6-4 Trend of Cacao Beans Price in London and New York Market, 1991 - 2003 1600
Price (USD/Ton)
1400 1000 800
1369.17 1256.28
1177.06 1236.46
1200 872.36
973.86 945.23 1002.98
855.17
833.45
780.52 800.04
672.76
600 400 200 0 1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
Year Source: ICCO 2004
6.5 Industrial Timber Estate (HTI), Pulp and Paper Project Profile No.
Point of View
Brief Description
1
Project Name
Industrial Timber Estate (HTI), Pulp and Paper Industry
2
General View
-
Most of the pulp producers in Indonesia use wood or waste wood as raw material instead of fiber plants such as Rosella, keraf, ketabon. Used paper is also utilized as basic material for newsprint.
-
Pulp is the basic material for paper industry. There are 3 kinds of paper product, industrial paper (uses for sack Kraft, corrugated, board, wrapping paper, etc), culture paper (uses for writing and printing paper) and other paper (cigarettes paper, tissues, security paper, etc.). Newsprint paper is made not from expensive pulp used paper.
3
Competitiveness
Indonesian pulp industry started before 1990, before HTI planting were ready for taking harvest. Although In 1993 annual production achieved only 1.7million tons, it was doubled reaching 3.7 million tons in 1999 and 6,6 million tons in 2003 The crisis that depreciated Indonesian Rupiah, has made pulp and paper industry more competitive in the export market. Local government has allocated area in downstream of Kabupaten Kutai Kartanegara (Kecamatan Sanga-Sanga) for pulp industry. Large development areas of HTI about 550,000 Ha will support raw material for this plant.
4
Market Opportunities
In 2002 the Indonesia production capacity of pulp industry reached a total figure of 4.9 million Tons compare to year 2000 output production 4.6 millions. This Indicates that maximum capacity utilization (92%) is achieved. This national production was performed by 2 long fiber pulp producers in Aceh and Sumatera and by more than 11 short fiber pulp industries. The high capacity utilization of pulp and paper industry will encourage further investment in these industries. The price declined from US$ 863 per ton in 1995 to US$ 350 per ton in the early 2001, and again increased to US$ 460 per ton in 2003. Although prices in foreign currency have declined, Indonesian pulp has still obtained benefits due to depreciation of Indonesian Rupiah. Similar to pulp production, paper industry in Indonesia has significant rate of production increase, reaching 7.3 million Tons in year 2003 with a high capacity utilization rate of 82% from a total of 8.6 million ton per year performed dominantly by around 20 paper industries. There exist approximate 75 paper producers, 63 of which operate under PMDN, 9 operate by PMA and the other 3 are owned by the state. Most of them are located in Java, 11 facilities in Sumatera and 2 producers from Kalimantan. It is reported that about 15% of these companies use their self-own pulp products. The national paper consumption year 2003 is diversified into 76% industrial
PT. PCII
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Point of View
Brief Description paper, 20% culture paper and 4% as other paper product. The demand for domestic consumption is considerably equal with export market. Indonesia pulp and paper industry still has opportunities to grow due to abundance supplies of basic materials and large number of HTI ready for harvest in the future. Geo-position of Kalimantan is another advantages particularly its proximity to Asian country as dominant consumer.
5
Proposed Location
The most recommendable locations for development HTI by Forestry Office of East Kalimantan are the ex-HPH areas along Samarinda – Bontang access road. The area is approximately estimated more than 20,000 Ha. The other locations are ex-HPH areas in all East Kalimantan areas, which approximately are covered, more than 500,000 Ha. Moreover, there are about 3 millions Ha as critical lands include karsts which could be planted by industrial timbers. Local government has allocated area in downstream of Kabupaten Kutai Kartanegara (Kecamatan Sanga-Sanga) for pulp industry.
6
Infrastructure and Business Support Facilities
Transportation The most recommendable areas for HTI are located in a long road between Samarinda–Bontang link route. This route of road is in good condition with high capacity of loading more than 20 Tons and can direct access to pulp and paper plant. Mostly of Mahakam River are suitable for transferring raw material product from upstream area of Kutai Kartanegara and Kutai Barat to downstream. Harbor There are 2 big public harbors that can be supporting for pulp and paper industry in Kutai Kartanegara: Samarinda and Balikpapan harbors. Other Custom clearance for export products from Kabupaten Kutai Kartanegara will be directly serviced in Balikpapan or Samarinda.
7
Project Components
PT. PCII
For HTI and Pulp and Paper industry, several components of the project and also as main factors of cost should be prepared. The main components/factors are: •
Permit
: Cost to provide Location Permit, HGU, IMB and IUT.
•
Land
: Land price for pulp industry are largely un uniform depend location and available infrastructures which ranging about Rp. 10,000 to Rp. 50,000.- per meter square. While, HTI compensation fee is Rp. 100,000/Ha.
•
Building/Factory
: The cost for building the factory will be base to international prices of Balikpapan prices, since major component of the Factory are made or produced in Jakarta or imported. Building cost for office and housing can use local base prices (kabupaten).
•
Equipment/Machine : Factory equipments for laboratory are base Consideration should be applied to the correlated
•
Transport/Vehicle
: Local (kabupaten) prices implemented to regular vehicles which were produced in Indonesia. For imported vehicles, imported prices should be use including the import duties.
•
Labor
: Standard wage for industry (including pulp processing) based on Provincial Minimum Wage (UMR Provincial) of East Kalimantan is Rp. 732,000 per month. While, wage for HTI labor is Rp. 600,000 per month. The average, HTI planting needs maximum 2 man-months per Ha.
•
Electricity
: No available supply provided by state electricity company. Each investor should prepare their own independent power supply.
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pulp processing including to the import prices. made to the import duties equipment.
EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Point of View
Brief Description •
8
Proposed Business Scale
Clean Water
: Clean water should treated from available raw water, either form river abstraction or ground. No clean water facilities provided by government in most of remote areas.
Pulp and paper industry is needed intensive capital, technology and market based investment. As there are no more government subsidize through reforestation fund development of HTI (Pulp based Timber Estate) is require large capital investment. For comparing, an existing pulp and paper industry in East Kalimantan has production capacity about 525,000 Tons/year. This industry has cover HTI areas more than 200,000 Ha, with more than 1,800 workers. While, proposed a plant pulp and paper industry in Kutai Kartanegara will be cover more than 500,000 Ha areas of HTI. If those HTI areas are effective produce raw material for pulp, the pulp and paper industry that proposed to be built in there, should be in the high scale of business.
6.6 Particleboard and MDF Project Profile No.
Point of View
Brief Description
1
Project Name
Particleboard and MDF (Medium Density Fiberboard) industry
2
General View
Wood industry now facing facts as a sunset industry after become prominent the last 3 decades. Currently it is problem to get raw material of wood and major industries has to reduce supply to become 40% of capacity due to limitation wood sources from logging. Particleboard is an efficient industry, which can consumes almost 100% of raw wood even waste wood. This industry also could use other sources from non-timber resources (waste plantation, old rubber trees, etc.). Other wood industries, which are less efficient, has large waste ratio: plywood (55%), sawn timber (50%), woodworking (35%) and furniture (25-30%). The particleboard can be produced with many types of surface and thickness, for furniture’s, houses, as well as office consumptions.
3
Competitiveness
Particleboard is not included in any list of negative investment for PMA, PMDN or non-facility. The government will help this investment because their industry is environment friendly. Import commodity is still charged with an import tax of 5% and PPN 10%. Budget and labor productivity, infrastructure and industrial infrastructure (transportation) are main indicators, which show weak competitiveness of Central Kalimantan and West Kalimantan when comparing with Sumatera. While, East Kalimantan has had strong competitiveness due to availability chemical industry and resin in Bontang.
4
Market Opportunities
Considering the global economic condition, world consumption of particle board shown a fluctuation and has a decrease in 2001 for about 1.2% from the previous years. However, the general trends is increase as in year 2003 the consumption is about 151,786 or about 39% from it in 1998. The major producer of particle board is 2003 is USA with share about 18% to the total production, followed by Germany, China and Canada with each share about 11%, 10% and 10% respectively. However, most those countries also have high consumption of particleboard, which meant they are also potential market for particleboard product. In period of 2001-2003, relatively good export development of Indonesian particleboard was indicated (about 9.12% increasing). There were fluctuations, because of monetary crisis in 1997/1998. Domestic as well as export demand in particleboard industry is relatively flat and coherent with settlement development and office. Even-though product performance is relatively low increasing due to shortage of raw material (there is a relationship with the declination of plywood production), but the market demand is still significantly prospecting, therefore particleboard industry prospective is still positive or promising. Moreover, particle board products, which based on non-log as raw material
PT. PCII
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Point of View
Brief Description such as waste of logging activities (branches of tree which estimated quantity is more than 30% of quantity of logs production), industrial timber estate (HTI) and ex-plantation trees (rubber), have prospective to be develop considering large area and high growth of HTI and plantation development. Therefore raw material from non-natural forest log is more sustainable to be developed in the future. And also those products industries are in line with environment safety programs as supporting for one of existing world issues.
5
Proposed Location
Samarinda city has been a long experience of wood products industries. More than 10 big wood industries were established in Samarinda city for more than 10 years. With good infrastructure and access with other region in East Kalimantan and with other provinces and other countries, Samarinda is one of the best locations for wood industry in East Kalimantan.
6
Infrastructure and Business Support Facilities
Transportation Samarinda has good access of roads to Balikpapan as well as to Bontang link route. This route of road is in good condition with high capacity of loading more than 20 Tons and can direct access to particleboard products. Mahakam river from Samarinda city to sea is suitable for big ships and usually used for wood products, coal, palm oil, container, etc. a long of year. Harbor Samarinda has sufficient public harbors that can be supporting for wood industry including particleboard. Samarinda harbor is also usually used for export activities. Samarinda harbor is 3rd class type of harbor, which managed by PT. (Persero) Pelabuhan Indonesia (Pelindo), and open to foreign and general trade. Other Custom clearance for export products will be directly serviced in Samarinda.
7
Project Components
PT. PCII
For particleboard industry, several components of the project and also as main factors of cost should be prepared. The main components/factors are: •
Permit
: Cost for obtaining location permit, HGU, IMB and IUT.
•
Land
: Land price are very un-uniform depend location and available infrastructure which ranging about Rp.500,000.- to Rp.3,000,000.- per meter square.
•
Building/Factory
: The cost for building of the factory will be base to international prices of Samarinda or Balikpapan prices, since major component of the Factory are made or produced in Jakarta or imported. Building cost for office and housing can use local base prices (city).
•
Equipment/Machine : Factory equipments for laboratory are base Consideration should be applied to the correlated
•
Transport/Vehicle
: Local (city) prices implemented to regular vehicles which were produced in Indonesia. For imported vehicles, imported prices should be use including the import duties.
•
Labor
: Standard wage for industry labor (including particleboard) based on Provincial Minimum Wage (UMR Provincial) of East Kalimantan is Rp. 732,000 per month.
•
Raw Material
: Waste of logging activities (branches of tree; estimated quantity is more than 30% of quantity of logs production), industrial timber estate (HTI) and ex-plantation trees (rubber, etc.), and wood glues, are available at local (kabupatens/cities) market.
•
Electricity
: May not sufficient available supply provided by state electricity company. Each investor should prepare their own independent power supply.
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CPO processing including to the import prices. made to the import duties equipment.
EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Point of View
Brief Description •
8
Proposed Business Scale
Clean Water
: Clean water should treated from available raw water, either form river abstraction or ground. May not sufficient available supply provided by state clean water company.
Particleboard industry is needed intensive capital, technology and market based investment although it still lower than plywood industries. Particleboard also another products, such as Pulp, CPO, cacao, and shrimp, etc. have relatively high international market demand. This proposed project could be implemented with medium to high scale of business investment.
6.7 Shrimp (Brackish Water Aquaculture) Project Profile No.
Point of View
Brief Description
1
Project Name
Shrimp (Brackish water aquaculture)
2
General View
Having long coastal areas, still large opportunities also available for marine or brackish aquaculture in most of undisturbed coastal site in Indonesia for fish, shrimp, crustacean, seaweed, etc. Eat Kalimantan particularly in the northern side Kabupaten Bulungan and Berau have better condition of coastal areas indicated by minimum destruction of mangrove and corral reef. The area also supplies by fresh water from rivers, which relatively low polluted. This source will be potential for brackish water aquaculture (shrimp, seaweed).
3
Competitiveness
The brackish water aquaculture were growing in East Kalimantan to an amount of 56,041 Ha, which are intensively occupies the southern and mid part coastal area. The pond areas are increased at average 36% per year since 1999. The remaining potential area are located in northern coastal within Kabupaten Bulungan (15,100 Ha), Kabupaten Nunukan (14,250 Ha) and Kabupaten Berau (8,900 Ha). East Kalimantan province has significant growth of shrimp pond production from 1999-2003. Tiger shrimp is the dominant commodity with significant production growth extent 29% annually and increased value reach 56% annually.
4
Market Opportunities
Japan and USA Market: According to Ministry of Marine Affairs and Fisheries, countries with high demand volume of Indonesian shrimp are Japan (60%), USA (16.5%), European Community countries (11.6%), and the rest absorb by other minor consume of Asia. US have suspended its embargo of shrimp from Indonesia since January 2004, which means the US market has been open for Indonesian shrimp. While still in restrict the other six countries of Thailand, China, India, Vietnam, Ecuador, and Brazil consume. This situation implies that theses six countries also has a potentials to enter the Japanese shrimp market and also penetrate the domestic shrimp market of Indonesia with lower prices. This can negatively affect Indonesian shrimp farmers. European Community Countries: In the period of 1996 – 2000, the import value of European frozen shrimp from Indonesia grew at annual average rate of 44.62%, while the volume grew at the rate of 42.33% (Eurostat Data). Based on 2001 data, the competitor countries of Indonesian frozen shrimp are Argentine (10.21% market share), India (6.23%), and Bangladesh (6.06%). Unfortunately, in September 2001, European community applies the tight control to Indonesian frozen shrimp because there are cases about chloramfenicol content in some of Indonesia product. Since then, every sample of Indonesian frozen shrimp to be exported is inspected by the agencies representing European community countries. General situation: Shrimp, especially tiger shrimp is a high demand commodity particularly in Japan and USA, which requires quality assurance for food safety to any
PT. PCII
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Point of View
Brief Description shrimp, which imported to their countries. Production of Indonesian shrimp was increased with 7.23% of average annually growth, from 1999 – 2002.
5
Proposed Location
According to site plan condition, Kabupaten Bulungan, Nunukan and Berau have potential areas to develop shrimp brackish water aquaculture with estimated total area about 15,100 Ha, 14,250 Ha and 8,900 Ha respectively.
6
Infrastructure and Business Support Facilities
Laboratorium Government has established the facilities for fishery development such as Laboratory of Fishery Products Quality Test and Control (LPPMHP) located in Samarinda and Tarakan cities. Main facilities consist of microbiology and chemical laboratories. This agency caw prepare in depth suitability assessment to the proposed shrimp location. Shrimp Fry / Fingerling There are 12 units of Shrimp hatcheries for cultivation of shrimp fry in East Kalimantan: 2 in Balikpapan, 1 in Kutai Kartanegara, 1 in Berau, and 8 in Tarakan. Production of shrimp fry from these 12 hatcheries and local catch was about 9 billion in 2003. This production of shrimp fry from hatcheries in East Kalimantan is not adequate to feed the demand, which was accounting for only 15% of the total East Kalimantan needs. The rest of 85% of the total needs, shrimp fry supplies are covered from other hatcheries in Lampung, East Java and South Sulawesi. Ice Factory Shrimp processing is cold chain processing. Ice factories are required for post harvest stage starting from the harvest process to end customers or to the next process in cold storage processing unit (from receiving activity to freezing). At present the available ice factory in East Kalimantan is in Samarinda and Tarakan. Cold Storage In East Kalimant, there are 16 cold storages located in 9 factories of Tarakan, 1 factory of Berau, 4 factories of Kutai Kartanegara (surrounding Samarinda), and 2 factories of Balikpapan. Capacity of each cold storage is from 3 to 5 Tons per day. Transportation The roads to the several brackish water aquaculture areas from capital cities of kabupatens are relatively good. It is passable by motorbike and fourwheel vehicle. In the other locations, river and sea transportation could be used as common transportation mode for aqua-cultural products to capital cities and processing plants in Tarakan. Harbor Each of those kabupatens has harbor. Facilities conditions of Bulungan harbor, Berau harbor and Nunukan harbor are sufficient to support aquaculture products. Other Custom clearance for export products will be directly serviced in Tarakan.
7
Project Components
PT. PCII
The main cost factors arises in many fisheries business application and operation are indicated in the following issues: •
Permit
: Cost for obtaining location permit, HGU, IMB and IUT.
•
Land
: Land price are very un-uniform depend location and available infrastructure which ranging about Rp. 2,000.- to Rp. 5,000.- per meter square.
•
Equipment/Machine
: Equipments/machine for shrimp culture such as paddlewheel aerators, water control laboratory, etc. are base to the import prices. Consideration should be made to the import duties applied to the correlated equipment.
•
Transport/Vehicle
: Local (Kabupaten) prices implemented to regular vehicles, which were produced in Indonesia. For
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Point of View
Brief Description imported vehicles, imported prices should be use including the import duties.
8
Proposed Business Scale
•
Labor
: Standard wage for fishery sector labor based on Provincial Minimum Wage (UMR Provincial) of East Kalimantan is Rp. 636,000 per month.
•
Raw Material
: Shrimp fry, feed, pond water treatment such as CaCO3, etc. mostly available at local (kabupaten) market.
•
Electricity
: No available supply provided by state electricity company. Each investor should prepare their own independent power supply.
• Clean Water
: Clean water should treated from available raw water, either form river abstraction or ground. No clean water facilities provided by government in most of remote areas.
Considering to the sustainability of production and hazard environment impact from waste of feed, etc., which usually occurred in intensive technique, the semi intensive technique scheme is proposed to apply in this project. With the available areas in Bulungan, Nunukan and Berau about 15,100 Ha, 14,250 Ha and 8,900 Ha respectively, involving smallholder through plasma nucleus system could implement this business in medium to high scale of business.
Figure 6-5 Trend of Export Price of East Kalimantan Tiger Shrimp* (1999 – 2003) 70,000
65,666
Price (Rp./Kg)
60,000 50,000
49,363
40,000 30,000
39,598 30,439 23,627
20,000 10,000 0 1999
2000
2001
2002
2003
Year
Source: Fishery and Marine Service of East Kalimantan Province, 2004. * In all size of shrimp which exported.
6.8 Dockyard and Heavy Equipment Repairing Center Project Profile No.
Point of View
Brief Description
1
Project Name
Dockyard and Heavy Equipment Maintenance Center
2
General View
South region covered most of Mahakam watershed of higher density areas with appropriate river and land transportation mode to have raw material for processing industry in downstream Balikpapan, Samarinda and Bontang. North region has less effective road infrastructure and low-density population, major transportation mode are river and coastal, which has larger hauling capacity related to its dominant primary resources based products.
3
PT. PCII
Competitiveness
In the northern regions, which natural resources many large compactors are working for mining plantation and forestry and utilize heavy equipment. Around 81 explorations project are continuing to work for the next 20 year, which potential to increase in the future.
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Point of View
Brief Description There extensive development and high activities of shipping even in the future years, the northern region ship traffic is around 50% of East Kalimantan total number of ships traffic, and has more than 4% annual growth. The number of ships traffic in the northern region is the same with southern region of East kalimantan. While southern region already has 2 dockyards and heavy equipment-repairing center in Balikpapan, there are inadequate facilities in northern region.
4
Market Opportunities
In north region of East Kalimantan, there are 6 city/kabupatens: Tarakan, Nunukan, Bulungan, Malinau, Berau, and Kutai Timur. Each kabupatens/city has some companies/factories and seaports/river ports, which need supports for heavy equipment and ship maintenance through special dockyard and heavy equipment repairing center.
5
Proposed Location
Among kabupaten/kota at north region of East Kalimantan, a strategic location for Dockyard and Heavy Equipment Repairing Center is Tarakan.
6
Infrastructure and Business Support Facilities
Transportation In the south region, inland roads connect among cities, as well as river transport and sea. Meanwhile, the north region depends on not inland roads but seas and river transportation as means of transportation. Harbor Port of Tarakan (Malundung Port) is managed by PT. (Persero) Pelabuhan Indonesia (Pelindo) IV. Tarakan is open to foreign vessels and is a port of general trade status. Airport Airport in Tarakan (Juwata Airport) as the northern gate of East Kalimantan is managed by UPT. Ditjen Perhubungan Udara (Directorate of Air Transportation, Ministry of Communication). This airport serves small plane flight, Boeing 737 plane flight and also medium plane flight as Fokker. Other Custom clearance for import/export activity will be directly serviced in Tarakan or Balikpapan or Samarinda.
7
PT. PCII
Project Components
For dockyard and heavy equipment repairing center activities, several components of the project look like main factors of cost should be prepared. The main components/factors are: •
Permit
: Costs for obtaining location permit, HGU, IMB and IUT.
•
Land
: Land price fluctuates, depending on land strategy and availability of infrastructures, between Rp. 75,000 and Rp. 300,000.- per square meter.
•
Building/Factory
: The cost for building the factory will be based on international prices or Balikpapan prices, since major components of the factory are made or produced in Jakarta or imported. Building cost for office and housing can adopt local (Kabupaten) base prices.
•
Equipment/Machine : Factory equipments are based on the import prices. Consideration should be made to the import duties imposed on the correlated equipment.
•
Transport/Vehicle
: Local (city) prices are implemented to regular vehicles (boat, etc.) which are produced in Indonesia. For imported vehicles, imported prices should be adopted and should include the import duties.
•
Labor
: Standard wage for general industries labor based on Provincial Minimum Wage (UMR Provincial) of East Kalimantan is Rp. 732,000 per month.
•
Electricity
: May not be sufficiently supplied by state electricity company. Each investor should prepare his own independent power supply.
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Point of View
Brief Description •
8
PT. PCII
Proposed Business Scale
Clean Water
: Clean water should be obtained by treatment of available raw water, either form river abstraction or ground. There may not be a sufficient supply by state clean water company.
Dockyard and heavy equipment repairing center activities need intensive capital and technology based investment. Based on market opportunities as explained before, this proposed project should be done with medium to high scale of business.
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
ATTACHMENT Attachment 1. Government Institution for Investment Contact and Selected Companies in East Kalimantan Name of Institution/Company
Address
Location
Contact Person
BKPM (Investment Coordinating Board)
Jl. Gatot Subroto No.60, Phone 62-21-5252008, Fax. 62-21-5254945
JAKARTA
Director of Overseas Promotion
BPID (Regional Investment and Promotion Board) of East Kalimantan Province
Jl. Basuki Rahmat No.56 Phone 62-541-743235, 743487 Fax. 62-541736446
SAMARINDA
Head of BPID, Head of Investment Development of BPID
Regional Development Planning Board (BAPPEDA)
Jl. Kesuma Bangsa, Phone 62-541-742985
SAMARINDA
Chief of BAPPEDA
Economic Bureau, East Kalimantan Province Sekwilda
Jl. Gajah Mada No. I/26, Phone 62-541-733333
SAMARINDA
Head of Bureau
Energy Commission and Mineral Resources
Jl. MT. Haryono, Phone 62-541-736993
SAMARINDA
Head of Commission
Sea and Fisheries Commission
Jl. Kesuma Bangsa No, 1, Phone 62-541-743506
SAMARINDA
Head of Commission
Industrial, Trading, and Cooperation Commission
Jl. Basuki Rahmat No.55, Phone 62-541-742482, Fax. 62-541-742495
SAMARINDA
Head of Commission
Forest Commission
Jl. Kesuma Bangsa, Phone 62-541-741803
SAMARINDA
Head of Commission,
Farm (Plantation) Commission
Jl. M. T. Haryono, Phone 62-541-748660
SAMARINDA
Head of Commission
Agriculture Commission
Jl. Basuki Rahmat No. 6, Phone 62-541-741676
SAMARINDA
Head of Commission
Culture Commission and Tourism
Jl. Jend. Sudirman No. 22, Phone 62-541-736850
SAMARINDA
Head of Commission
National Land Commission (BPN)
Jl. M. Yamin No. 14, Phone 62-541-752920
SAMARINDA
Chief of BPN
Regional Environment Influence Control Board (BAPEDALDA)
Jl. Kesuma Bangsa, Phone 62-541-745490, 738992
SAMARINDA
Chief of BAPEDALDA
Sea and Air Transportation Service
Jl. MT. Haryono, Phone 62-541-743506
SAMARINDA
Head of Commission
Land and ASDP Transportation Commission
Jl. Kesuma Bangsa, Phone 62-541-742091
SAMARINDA
Head of Commission
Indonesian Bank (BI)
Jl. Gajah Mada I, Phone 62-541-741022
SAMARINDA
Regional Head
Kanwil IX, Customs
Jl. Niaga Timur, Phone 62541-741283, 743353
SAMARINDA
Head of Office
Name of Institution/Company PT. Balikpapan Forest Industries, Ltd
PT. PCII
Head of Forest Management of Commission
Address
Location
Jl. RE. MartadinataRT. 39, Phone 62-542-24811
BALIKPAPAN
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Contact Person Han Eung Kyo
Products Plywood
EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
Name of Institution/Company
Address
Location
Contact Person
Products
PT. Daya Besar Agung Corp.
Bukuan, Palaran Samarinda Seberang, Phone 0541-37616 & 37838
BALIKPAPAN
Lilik Sutisna
Plywood
PT. ITCI Kartika Utama
Jl. Jenderal Sudirman No. 24, PO. Box 132, Phone 62-542-735027
BALIKPAPAN
Ir. Deddy Kusmulayadi
Plywood
PT. Intracawood Manufacturing
Jl. Yos Sudarso RT.III No. 36-37, Phone 62551- 22908-2290922910
TARAKAN
Ir. Mulai Adijaya, MM
Plywood Block Board Paper overland plywood Wood working products
PT. Kalimanis Plywood Industries
Jl. Lumba-Lumba Log Pond Selili PO. Box 1004, Phone 62-541240701-240702
SAMARINDA
Gatot Suryono
Plywood Direct Print Fancy Panel Spliced veneer Color tone Fancy plywood Molding
PT. Kalhold Utama
Jl. Lumba-Lumba Log Pond Selili PO. Box 1004, Phone 62-541240701-240702
SAMARINDA
Gatot Suryono
Plywood
PT. Sangkuliarang Bhakti
Jl. Jenderal Sudirman No. 33, Phone 62-541742345, 737356, 737357
SAMARINDA
Lay Firman
Plywood Sawn Timber Molding
PT. Sumalindo Lestari Jaya Tbk
Jl. Loa Janan Ilir Sengkotek, Phone 62541-261256, 261277
SAMARINDA
Ir. Djojo Boentoro
Plywood Paper Overlay Film Face Block Board
PT. Nityasa Mandiri
Desa TJ. Harapan Kec. Sebulu kab. Kutai. Phone 62-541-206391, 261277 Primagraha Building LT.4 Jl. Gedung Kesenian Kav.3-7 Jakarta Pusat
KUTAI KARTANEGA RA
Erwin afrian
Medium density Fiber board (MDF)
PT. Kiani Kertas
Desa Makayang Kec. Sambaliung Kab. Berau. Phone 62-21-79860257975172
BERAU
Sudaryanto
Bleached Harwood Pulp
PT. DSM Kaltim Malamine
Jl. Mampang Prapatan 100, Jakarta Jl. Kawasan Industri Bontang, Phone 62-54841018
BONTANG
Drs. Harry Poernomo
Melamine
PT. Pupuk Kalimantan Timur
Komplek PT. Pupuk Kaltim Persero Bontang, Phone 62-548-212023
BONTANG
Haryanto
Ammonia Urea
PT. Kaltim Hexamindowiratama
Jl. Taman Budaya Ilir J-1 No. 5 Jakarta Jl. Kawasan Industry Bontang, Phone 62-548-
BONTANG
Ekasinto Kasih
Hexamethyline tetramine (CH2)6N6
Pt. Kaltim Ambikawiratama
Jl. Taman Budaya Ilir J-1 No. 5 Jakarta Jl. Kawasan Industry Bontang, Phone 62-548-
BONTANG
Ekasinto Kasih
Ammonium Bicarbonate (NH4HCO3)
PT. PCII
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
Name of Institution/Company
Address
Location
Contact Person
Products
PT. Kaltim Sahid Baritosodakimia
Jl. Kawasan Industri Bontang, Phone 62-54841297-41298
BONTANG
Soda Ash & Ammonium (NH4HCO3)
PT. Kaltim Methanol Industry
Jl. Kawasan Industri Bontang, Phone 62-548-
BONTANG
Methanol
PT. Kaltim Lemindo Kimiatama
Jl. Kawasan Industri Bontang, Phone 62-548-
BONTANG
MDF Resin & Plywood Resin
PT. Badak NGL
Jl. Kawasan Industri Bontang, Phone 62-548-
BONTANG
LNG
PT. BHP kendilo Coal Indonesia
Jl. Jend. Sudirman No. 37, Phone 62-542-35300
BALIKPAPAN
PT. Berau Coal
Graha Irama Jl. HR. Rasuna Said Blok X-1 Kav 01-02 Jakarta, Phone 62-21-5261216
PT. Indominco mandiri
Ventura Building, 3 th floor, Jl. R.A. Kartini No. 28 Jkt. Phone 62-217504395
PT. Kideco Jaya Agung
Batu Kajang Kec.Batu Sopang Kab. Pasir, Phone 62-543-22522
PASIR
PT. Kaltim Prima Coal
Sangata-75387 Kec. Sangata Kab. Kutai, Phone 62-549-521800
PT. Kitadin
Paul H. Schipke
Coal
Ir. Jeffrey Mulyono
Lati coal and binungan coal
Frans Yusup
Steam Coal
HA. Myung Sik
Coal
KUTAI TIMUR
Mochammad Chairul
Coal
Ventura Building, 3 th floor, Jl. R.A. Kartini No. 26 Jkt. Phone 62-217404390, 62-541201307
KUTAI KARTANEGA RA
Frans Yusup
Steam Coal
PT. Tanito Harum
Jl. Batu Bara Tenggarong, Phone 62541-42848, 32252
KUTAI KARTANEGA RA
Mr. BS. Wydianto
Steam Coal
PT. Misaja Mitra S. Mariam
Jl. Mahakam Sei. Mariam, Kec. Anggana, Kab. Kutai, Phone 62541-37039
KUTAI KARTANEGA RA
Aminoellah Said
Frozen shrimp
PT. Malindo Kencana Utama
Jl. Jos Sudarso 57, Tarakan, Phone 62-55121082
TARAKAN
AP. Nainggolan, SE.
Frozen shrimp: - Shell On, - Raw Peeled, - Cooked Peeled
PT. Sumber Kalimantan Abadi
Pasar Beringin No. 94 A, Tarakan Tengah, Phone 62-551-21063-5110122924
TARAKAN
Albert Purwanti/ Drs. Chandra Arkian
Quick Frozen Fresh Shrimp
PT. Samarinda Cendana Cold storage & Ind
Jl. Remaja No. 64 Phone 62-541-43519, 32478
SAMARINDA
Barnawie Bakrie
Fresh Frozen Prawns/Shrimp
Arus Mahakam, PT.
Jl. P. Suriansyah No. 16, Phone 62-541-734373, 748206
SAMARINDA
Moch Sinsyah
Rattan Flooring
PT. Kuda Mas
Jl. Merdeka 18, Samarinda Phone 62-541-738115
SAMARINDA
Yusuf
Agar wood
BERAU
KUTAI TIMUR
Source: East Kalimantan Government, BPID (Regional Investment and Promotion Board) of East Kalimantan Province, East Kalimantan exporters directory, provincial office of the industry trade and cooperatives of East Kalimantan of Indonesia, 2003.
PT. PCII
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EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
Attachment 2. No.
Location
Wood Working 1 BLP
List of Large Companies (Exporters) in East Kalimantan
Name of Company PT. Balikpapan Forest Industries, Ltd
Plywood
1. Plywood 2. Black board Plywood
2
BLP
PT. Dwima Manunggal Raksa Wood Industries
3
BLP
4
SMD
PT. Daya Besar Agung Corp. PT. Gany Mulia Sejahetera Industrie
5
BLP
PT. ITCI Kartika Utama
6
TRK
PT. Intracawood Manufacturing
7
BLP
8
SMD
PT. Inne Dongwha Development Co. Ltd. PT. Meranti Sakti Indah Plywood
9
SMD
PT. Kalimanis Plywood Industries
10
SMD
PT. Kalhold Utama
11
SMD
PT. Kayu Lapis Asli Murni
12
SMD
PT. Kayan River Indah Plywood
13
SMD
PT. Melapi Timber
14
SMD
15
SMD
PT. Putera Bungalun Wood Industri PT. Segara Timber Co. Ltd.
16
SMD
PT. Sangkuliarang Bhakti
17
SMD
PT. Sumalindo Lestari Jaya Tbk
18
SMD
Pt. Santi Murni Plywood
PT. PCII
Goods description
1. Plywood 2. Molding Plywood 1. Plywood 2. Block Board 3. Paper overland plywood 4. Wood working products Plywood 1. Plywood 2. Lumber core 3. Sawn Timber 1. Plywood 2. Direct Print 3. Fancy Panel 4. Spliced veneer 5. Color tone 6. Fancy plywood 7. Molding Plywood
1. Plywood 2. Block Board 3. Laminated 4. Molding 5. Paper Overlay 1. Plywood 2. Molding 1. Plywood 2. Block Board 3. Molding 4. Flooring Plywood 1. Plywood 2. Block Board 3. Sawn Timber 4. Molding 1. Plywood 2. Sawn Timber 3. Molding 1. Plywood 2. Paper Overlay 3. Film Face 4. Block Board Plywood
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Countries destination Arab Saudi, Japan, Korea, Belgian, England, Netherlands, France. USA, Europe, Taiwan, Korea, Japan. USA, Japan, Hong Kong, Mexico USA, Singapore, Europe, Japan, Korea Hong Kong, USA, Japan, Korea, China Japan, USA, Europe, Hong Kong, Taiwan, Egypt, Korea Japan, Europe, UEA, Korea Japan and Taiwan
USA, Europe, Australia, Korea, China, Japan, Hong Kong, Middle East, India, Malaysia, United Kingdom, Singapore. Australian, Europe, Soviet, Korea, Japan, USA, Middle east Belgium, Japan, Denmark, Taiwan, Thailand, Australian, England, Canada, Italy Japan, Taiwan Taiwan, Japan
Hong Kong, USA, Taiwan, Korea Japan, USA, China, Hong Kong, Taiwan, Germany, Netherlands. Netherlands, USA, Japan, Korea, Canada, China Japan, EEC, USA, Korea, Hong Kong.
USA, Middle East, Australians, United Kingdom, Japan,
Capacity product or export 3
278,500 M /year
3
67,932 M /year 3 11,475 M /year 3 1,500 M /year 2,271 Cu. M/Moon 421 Cu. M/Moon 3 120,430 M /year 3
111,623 M /year 3 18,096 M /year 3 2,550 M /year 3 7,038 M /year 3 20,900 M /year 2,700,000 pc /year 120,000 pc /year 6,000 pc /year 4,427 Cu. M/Moon 579 Cu. M/Moon 1,583 Cu. M/Moon 20 Cu. M/Moon 579 Cu. M/Moon 40 Cu. M/Moon 801 Cu. M/Moon 3/ 4,630 M Moon 3
237,663,235 M /year 3 2,040,976 M /year 3 299,684 M /year 3 245,747 M /year 3 22,381,558 M /year 4,200,000 pc/year 3 32,400 M /year 3 4,000 M /year 3 1,500 M /year 3 1,200 M /year 3 1,000 M /year 3 2,500 M /year 3
87,500 M /year 3 15,200 M /year 3 24,000 M /year 3 7,500 M /year 3 4,750 M /Moon 3 350 M /Moon 3 100 M /Moon 3 45,031 M /year 3 6,796 M /year 3 17,445 M /year 3 11,431 M /year 3,252 Cu. M/Moon
EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Location
19
SMD
PT. Wana Rimba Kencana
1. Plywood 2. Block Board
20
SMD
PT. Tirta Mahakam Plywood Industry
21
SMD
PT. Tunggal Yudi Sawmill Plywood
1. 2. 3. 4. 5. 6. 7. 1. 2. 3.
22
SMD
23
SMD
24
KUKAR
PT. Facific Bontang Raya PT. Meratus Kalimantan Timber PT. Kayu Alam Perkasa Raya
25
TRK
26
SMD
Molding 1 BLP
Name of Company
PT. Idec Abadi Wood Industries PT. East Borneo Permai Plywood CV. Diana Bhakti
2
SMD
PT. Kalindo Pasific
3
SMD
4
SMD
PT. Meratus Kalilmantan Timber CV. Oceanias timber Product
5
SMD
6
SMD
7
SMD
PT. Samtraco (Samarinda Trading Corporation)
8
SMD
PT. Surya Kaltim
PT. PCII
PT. Pasific Bontang Jaya PT. Samarinda Pratama Gemilang Enterprise
Goods description
Plywood Block Board Sawn Timber Molding Furniture Components Fancy Coating Flooring Plywood Block Board Molding
Countries destination Korea Japan, Korea, UEA, Hong Kong, Singapore, Australians Japan, China, Taiwan, Korea, USA.
Capacity product or export 3
50,047,861 M /year 3 4,430.692 M /year 3
102,840 M /year 3 8.40 M /year 3 50,975 M /year 3 15,000 M /year 3 15,000 M /year 3 20,000 M /year 3 48,000 M /year 3 198,420 M /year 3 26,653 M /year 3 8,977 M /year
Plywood
Hong Kong, USA, Japan, Korea, China, Europe, Middle East, Taiwan, Australians. France, USA, Korea
Plywood
Germany, USA, Japan
5,000 M /year
1. Plywood 2. Block Board 3. Polyester Plywood Plywood
Japan, China, Taiwan, Hong Kong.
9,000 M /Moon 3 200 M /Moon 3 600 M /Moon 3 7,500 M /year
Taiwan, China, Japan
3
3,500 M /year 3
3
3
Plywood
Hong Kong, USA, Japan
2,500 M /year
1. 2. 3. 4. 1. 2. 3. 4. 5. 1.
Korea, Belgium, Germany, Netherlands,
2,880 M /year 3 2,880 M /year 3 1,440 M /year 3 9,000 M /year 3 160 M /year 3 3,600 M /year 3 1,200 M /year 3 1,440 M /year 3 1,800 M /year 3 800 M /year
Molding/Dowel Door Jamb/ Window Frame Finger Joint/ Laminating Kiln Dry (KD) Door Frame Door Jamb Window Frame Finger Jointed Laminated Molding
1. Mixed meranti lam board, door jamb, casing 2. Red meranti laminated scantling st 3. 1 quality machined dark red meranti kiln dried 4. White meranti 3 piles finger joint/laminating 5. Keruing flat from blank 1. Sawn Timber, Molding Timber Molding
1. Laminated Boards 2. Finger joint laminated board 3. Window board, housing components 4. Decorative molding, broomstick 5. Door, chair, garden, gate. 1. Door Jamb/Door component
- 59 -
Korea, Netherlands, Belgium.
Europe, USA, Japan, Korea Korea, Germany, England, USA, Netherlands, Australians, china
Japan, USA, Europe, Korea England, Italy, Germany, Netherlands, Australians, USA, Korea, Japan, China Germany, Netherlands, Belgium, France, Italy, England, Saudi Arabic, Emirate-Arab, Korea, Philippine.
Korea, Japan,
3
3
5,000 M /year 3 900 M /year 3 1,000 M /year 3 700 M /year 3 100 M /year
3
1,500 M /year 3
43,300 M /year
3
± 18,000 M /year
3
± 750 M /year
EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Location
Name of Company Indonesia
9
SMD
PT. Sumber Daya Karya
10
BLP
PT. Trisakti Utama Indah
11 12
SMD SMD
PT. Megah Mulia PT. Cakrawala Kordasakti Medium Density Fiber board 1 KUKAR PT. Nityasa Mandiri
Bleached Pulp 1 BRU
PT. Kiani Kertas
Chemical Base 1 BTG
PT. DSM Kaltim Malamine Urea and Ammonia 1 BTG PT. Pupuk Kalimantan Timur
2
BTG
Hexamine 1 BTG Chemical 1 BTG Soda Ash 1 BTG Methanol 1 BTG Resin 1
BTG
Countries destination
2. Laminating Block Profile 3. Molding/decorative molding 4. Window frame/ window component 5. Finger joint 1. Sawmill 2. Molding Molding
Germany, Netherlands, Italy, USA
Molding Molding
USA, Japan, Korea Japan, Korea, Taiwan, USA, Singapore China China
Capacity product or export
3
24,000 M /year 3 6,000 M /year 3 6,000 M /year 3
2,400 M /year 3 4,800 M /year
3
100,000 M /year
Medium density Fiber board (MDF)
England, France, Netherlands, Germany, Belgium, UEA, Qatar, Saudi Arabia, Jordanian, Bahrain, China, Taiwan, Korea, India, Philippine, Hong Kong, USA, Canada, Australians.
Bleached Harwood Pulp
France, Japan, England, Germany, Belgium, Korea, Italy, China, Australians, India
1,500 ADMT/Day
Melamine
Thailand, Japan, Malaysia, Australians
50,000 Ton/year
1. Ammonia 2. Urea
Malaysia, Australians, Taiwan, Thailand, Vietnam, Belgium, Korea, Singapore, Philippine USA, Hong Kong, Japan
1,4419,000 Ton/year 1,839,750 Ton/year
PT. Kaltim Pasific Amoniak
Ammonia
PT. Kaltim Hexamindowiratama
Hexamethyline tetramine (CH2)6N6
Russian, China, UEA
3,000 Ton/year
Pt. Kaltim Ambikawiratama
Ammonium Bicarbonate (NH4HCO3)
Taiwan, China, Korea
10,000 Ton/year
PT. Kaltim Sahid Baritosodakimia
Soda Ash & Ammonium (NH4HCO3)
Taiwan, China, Korea
300,000 Ton/year
PT. Kaltim Methanol Industry
Methanol
Japan, China, Korea
660,000 Ton/year
MDF Resin & Plywood Resin
Japan, China, Korea
18,000 ton/year
LNG
Taiwan, China, Korea
Coal
Japan, Taiwan
1,000,000 Ton/year
Coal
Japan, Taiwan
300,000 MT/year
PT. Kaltim Lemindo Kimiatama Liquid Natural Gas (LNG) 1 BTG PT. Badak NGL Coal mining 1 BLP PT. BHP kendilo Coal Indonesia 2 MLU PT. Baradinamika Muda Sukses
PT. PCII
Goods description
- 60 -
660,000 Ton/year 85 % ekspor
3
21,64 million M /year
EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Location
3
BRU
4
KUKAR
5 6
Name of Company
Goods description
Countries destination
Capacity product or export 1,800,000 Ton/ year
PT. Berau Coal
Lati coal and binungan coal Baiduri Caol
KUKAR KUTIM
PT. Bukit Baiduri Enterprice Coal PT. Fajar Bumi Sakti PT. Indominco mandiri
Coal Steam Coal
7
PSR
PT. Kideco Jaya Agung
Coal
8
KUTIM
PT. Kaltim Prima Coal
Coal
9
KUKAR
PT. Kitadin
Stream Coal
10
KUKAR
PT. Tanito Harum
Steam Coal
PT. Multi Harapan Utama PT. Gunung Bayan Pratama Coal PT. Indexim Coalindo Kartika Selabumi Mining Mandiri Inti Perkasa Nusa Minera Utama PT. Sinar Benua Prima PT. Trubaindo Coal Mining PT. Anugerah Jatimulya PT. Batubara Selaras Sapta PT. Bharinto Ekatama PT. Bumi Laksana Perkasa PT. Bumi Panen Sukses PT. Bumi Sukses Mandiri PT. Dayalapan PT. Delma Mining Corporation PT. Dharma Puspita Mining PT. Dhamar Tejokencono PT. Firman Ketauan Perkasa PT. Insani Bara Perkasa PT. Interex Sacra Raya PT. Kurnia Sarana Lestari PT. Lahai Coal Pt. Lanna Harita Indonesia PT. Mahakam Sumber Jaya
Coal
Chile, Japan, Korea, Taiwan, Thailand India, Japan, Denmark, Taiwan, Thailand Japan, Taiwan Philippine, Japan, Denmark, Taiwan, Thailand Hong Kong, Japan, Philippine, India, Chile, Taiwan Malaysia, Japan, Netherlands, USA, Taiwan, Korea, Brazil, Chile, France, Hong Kong Hong Kong, India, Japan, Taiwan, Malaysia Thailand, India, Japan, Taiwan, Malaysia, China Japan
Coal
Japan
2,602,000,000 MT/year
Japan
945,000,000 MT/year
11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35
PT. PCII
4,000,000 MT/year 500,000 MT/year 3,500,000 MT/year
5,000,000 MT/year
15,000,000 MT/year
1,200,000 MT/year
1,807,000,000 MT/year 973,000,000 MT/year
Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal
- 61 -
EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Location
Name of Company
36 37 38 39
PT. Maruwai Coal PT. Pari Coal PT. Perkasa Inakerta PT. Pesona Khatulistiwa Nusantara 40 PT. Ratah Coal 41 PT. Salamindo Pahala 42 PT. Santan Batubara 43 PT. Singlurus Pratama 44 PT. Salaminndo Coalindo 45 PT. Tambang Damai 46 PT. Taraco Mining 47 PT. Teguh Sinar Abadi 48 PT. Tempayang Cemerlang 49 PT. Timah Batubara Utama 50 PT. Wadungmas Tambang Mulia 51 PT. Wirakaneo Coalindo 52 PT. Whiratama Bina Perkasa 53 PT. Anugerah Bara Kaltim Food and Baverage 1 BLP Kalimantan Raya Megah Fishery 2 KUKAR PT. Misaja Mitra S. Mariam 3 TRK PT. Malindo Kencana Utama
Goods description
Countries destination
Capacity product or export
Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal
Live sea worm
Japan
750 Ton/year
Frozen shrimp
Japan
620 Ton/year
Frozen shrimp: - Shell On, - Raw Peeled, - Cooked Peeled Frozen Shrimp
Japan, Hong Kong, Belgium
700 Ton/year
480 Ton/year
4
TRK
PT. Nelayan Abadi Kalimantan Jaya
5
BLP
Quick Frozen Fresh Shrimp
6
KUKAR
7
TRK
8
BLP
PT. Sumber Kalimantan Abadi PT. Samarinda Cendana Cold storage & Ind PT. Sumber Kalimantan Abadi CV. Ihda Gahary
9
TRK
Frozen/Fresh Shrimp
10
TRK
Frozen Shrimp
Japan
150 Ton/year
11
TRK
Frozen Shrimp
Japan
460 Ton/year
12
BLP
Frozen Shrimp
Japan
370 Ton/year
13
BRU
Frozen Shrimp
Japan
280 Ton/year
14
TRK
Frozen Shrimp
Japan
850 Ton/year
15 16
KUKAR KUKAR
PT. Mustika Minanusa Aurora PT.Sabindo Raya Gemilang I PT. Misaja Mitra, Tarakan PT. Manggar Bina Persada BPP PT. Mina Nusantara Ikatama, Berau PT. Tunas Nelayan Mandiri PT. Syam Surya Mandiri PT. Aromah Nelayan Mandiri
Belgium, England, Japan, Hong Kong, USA. Hong Kong, Japan, Europe Hong Kong, Japan, USA, Singapore Japan, Hong Kong, Europe Japan, Hong Kong, Europe, Singapore Japan, Hong Kong
Frozen Shrimp Frozen Shrimp
Japan Japan
700 Ton/year 820 Ton/year
PT. PCII
Fresh Frozen Prawns/Shrimp Quick Frozen fresh Shrimps
- 62 -
700 Ton/year 1,200 Ton/year 1,200 ton/year
EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Location
17
TRK
PT. Bonanza
Frozen Shrimp
Japan
Capacity product or export 250 To/ year
18
TRK
PT.Sabindo Raya Gemilang II
Frozen Shrimp
Japan
450 Ton/year
CV. Rickyndo Utama
Live Crabs
Singapore
5,400 Ton/year
CV. Sumber Bumi
Bird’s Nest/ Black Bird’s Nest
Singapore, Hong Kong
1,250 Ton/year
Yayasan Pengembangan Tunas Nusantara, Perwakilan Kabupaten Kutai
1. Ginger (Zingiher offiancanale rose) 2. Saffron (Curcuma domestic. Val) 3. Nanas (Ananas comesus.L) 4. Rice (Oriza sativa) 1. White Paper 2. Black Paper
USA, Europe, Australians
77,240 Ton/year 20,000 Ton/year 138 Ton/year 17,500 Ton/year
USA, Europe, Singapore, Japan
77,240 Ton/year 20,000 ton/year
1. Candy 2. Soap/Talc/Shampoo
Malaysia
Live Crabs 1 BLP Bird’s Nest 1 SMD Agribusiness 1 KUKAR
2
SMD
Name of Company
CV. Bintang Mas Prima Jaya
Candy/soap/Talc/Shampoo 1 TRK Harapan Extra Prima.UD
Goods description
Countries destination
Rattan/Flooring 1 SMD
Arus Mahakam, PT.
1. Rattan 2. Flooring
Malaysia, China, Singapore
Agar Wood 1 SMD
PT. Kuda Mas
Agar wood
Singapore
822,000 Kg/year
Source: East Kalimantan Exporters Directory, Provincial Office of The Industry, Trade and Cooperatives of East Kalimantan, 2003. SMD=Samarinda, BLP=Balikpapan, TRK=Tarakan, KUKAR=Kutai Kartanegara, BRU=Berau, KUTIM=Kutai Timur, PSR=Pasir, MLU=Malinau, BTG=Bontang.
PT. PCII
- 63 -
EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
ATTACHMENT Attachment 1. Government Institution for Investment Contact and Selected Companies in East Kalimantan Name of Institution/Company
Address
Location
Contact Person
BKPM (Investment Coordinating Board)
Jl. Gatot Subroto No.60, Phone 62-21-5252008, Fax. 62-21-5254945
JAKARTA
Director of Overseas Promotion
BPID (Regional Investment and Promotion Board) of East Kalimantan Province
Jl. Basuki Rahmat No.56 Phone 62-541-743235, 743487 Fax. 62-541736446
SAMARINDA
Head of BPID, Head of Investment Development of BPID
Regional Development Planning Board (BAPPEDA)
Jl. Kesuma Bangsa, Phone 62-541-742985
SAMARINDA
Chief of BAPPEDA
Economic Bureau, East Kalimantan Province Sekwilda
Jl. Gajah Mada No. I/26, Phone 62-541-733333
SAMARINDA
Head of Bureau
Energy Commission and Mineral Resources
Jl. MT. Haryono, Phone 62-541-736993
SAMARINDA
Head of Commission
Sea and Fisheries Commission
Jl. Kesuma Bangsa No, 1, Phone 62-541-743506
SAMARINDA
Head of Commission
Industrial, Trading, and Cooperation Commission
Jl. Basuki Rahmat No.55, Phone 62-541-742482, Fax. 62-541-742495
SAMARINDA
Head of Commission
Forest Commission
Jl. Kesuma Bangsa, Phone 62-541-741803
SAMARINDA
Head of Commission,
Farm (Plantation) Commission
Jl. M. T. Haryono, Phone 62-541-748660
SAMARINDA
Head of Commission
Agriculture Commission
Jl. Basuki Rahmat No. 6, Phone 62-541-741676
SAMARINDA
Head of Commission
Culture Commission and Tourism
Jl. Jend. Sudirman No. 22, Phone 62-541-736850
SAMARINDA
Head of Commission
National Land Commission (BPN)
Jl. M. Yamin No. 14, Phone 62-541-752920
SAMARINDA
Chief of BPN
Regional Environment Influence Control Board (BAPEDALDA)
Jl. Kesuma Bangsa, Phone 62-541-745490, 738992
SAMARINDA
Chief of BAPEDALDA
Sea and Air Transportation Service
Jl. MT. Haryono, Phone 62-541-743506
SAMARINDA
Head of Commission
Land and ASDP Transportation Commission
Jl. Kesuma Bangsa, Phone 62-541-742091
SAMARINDA
Head of Commission
Indonesian Bank (BI)
Jl. Gajah Mada I, Phone 62-541-741022
SAMARINDA
Regional Head
Kanwil IX, Customs
Jl. Niaga Timur, Phone 62541-741283, 743353
SAMARINDA
Head of Office
Name of Institution/Company PT. Balikpapan Forest Industries, Ltd
PT. PCII
Head of Forest Management of Commission
Address
Location
Jl. RE. MartadinataRT. 39, Phone 62-542-24811
BALIKPAPAN
Attachment 1 - 1
Contact Person Han Eung Kyo
Products Plywood
EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
Name of Institution/Company
Address
Location
Contact Person
Products
PT. Daya Besar Agung Corp.
Bukuan, Palaran Samarinda Seberang, Phone 0541-37616 & 37838
BALIKPAPAN
Lilik Sutisna
Plywood
PT. ITCI Kartika Utama
Jl. Jenderal Sudirman No. 24, PO. Box 132, Phone 62-542-735027
BALIKPAPAN
Ir. Deddy Kusmulayadi
Plywood
PT. Intracawood Manufacturing
Jl. Yos Sudarso RT.III No. 36-37, Phone 62551- 22908-2290922910
TARAKAN
Ir. Mulai Adijaya, MM
Plywood Block Board Paper overland plywood Wood working products
PT. Kalimanis Plywood Industries
Jl. Lumba-Lumba Log Pond Selili PO. Box 1004, Phone 62-541240701-240702
SAMARINDA
Gatot Suryono
Plywood Direct Print Fancy Panel Spliced veneer Color tone Fancy plywood Molding
PT. Kalhold Utama
Jl. Lumba-Lumba Log Pond Selili PO. Box 1004, Phone 62-541240701-240702
SAMARINDA
Gatot Suryono
Plywood
PT. Sangkuliarang Bhakti
Jl. Jenderal Sudirman No. 33, Phone 62-541742345, 737356, 737357
SAMARINDA
Lay Firman
Plywood Sawn Timber Molding
PT. Sumalindo Lestari Jaya Tbk
Jl. Loa Janan Ilir Sengkotek, Phone 62541-261256, 261277
SAMARINDA
Ir. Djojo Boentoro
Plywood Paper Overlay Film Face Block Board
PT. Nityasa Mandiri
Desa TJ. Harapan Kec. Sebulu kab. Kutai. Phone 62-541-206391, 261277 Primagraha Building LT.4 Jl. Gedung Kesenian Kav.3-7 Jakarta Pusat
KUTAI KARTANEGA RA
Erwin afrian
Medium density Fiber board (MDF)
PT. Kiani Kertas
Desa Makayang Kec. Sambaliung Kab. Berau. Phone 62-21-79860257975172
BERAU
Sudaryanto
Bleached Harwood Pulp
PT. DSM Kaltim Malamine
Jl. Mampang Prapatan 100, Jakarta Jl. Kawasan Industri Bontang, Phone 62-54841018
BONTANG
Drs. Harry Poernomo
Melamine
PT. Pupuk Kalimantan Timur
Komplek PT. Pupuk Kaltim Persero Bontang, Phone 62-548-212023
BONTANG
Haryanto
Ammonia Urea
PT. Kaltim Hexamindowiratama
Jl. Taman Budaya Ilir J-1 No. 5 Jakarta Jl. Kawasan Industry Bontang, Phone 62-548-
BONTANG
Ekasinto Kasih
Hexamethyline tetramine (CH2)6N6
Pt. Kaltim Ambikawiratama
Jl. Taman Budaya Ilir J-1 No. 5 Jakarta Jl. Kawasan Industry Bontang, Phone 62-548-
BONTANG
Ekasinto Kasih
Ammonium Bicarbonate (NH4HCO3)
PT. PCII
Attachment 1 - 2
EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
Name of Institution/Company
Address
Location
Contact Person
Products
PT. Kaltim Sahid Baritosodakimia
Jl. Kawasan Industri Bontang, Phone 62-54841297-41298
BONTANG
Soda Ash & Ammonium (NH4HCO3)
PT. Kaltim Methanol Industry
Jl. Kawasan Industri Bontang, Phone 62-548-
BONTANG
Methanol
PT. Kaltim Lemindo Kimiatama
Jl. Kawasan Industri Bontang, Phone 62-548-
BONTANG
MDF Resin & Plywood Resin
PT. Badak NGL
Jl. Kawasan Industri Bontang, Phone 62-548-
BONTANG
LNG
PT. BHP kendilo Coal Indonesia
Jl. Jend. Sudirman No. 37, Phone 62-542-35300
BALIKPAPAN
PT. Berau Coal
Graha Irama Jl. HR. Rasuna Said Blok X-1 Kav 01-02 Jakarta, Phone 62-21-5261216
PT. Indominco mandiri
Ventura Building, 3 th floor, Jl. R.A. Kartini No. 28 Jkt. Phone 62-217504395
PT. Kideco Jaya Agung
Batu Kajang Kec.Batu Sopang Kab. Pasir, Phone 62-543-22522
PASIR
PT. Kaltim Prima Coal
Sangata-75387 Kec. Sangata Kab. Kutai, Phone 62-549-521800
PT. Kitadin
Paul H. Schipke
Coal
Ir. Jeffrey Mulyono
Lati coal and binungan coal
Frans Yusup
Steam Coal
HA. Myung Sik
Coal
KUTAI TIMUR
Mochammad Chairul
Coal
Ventura Building, 3 th floor, Jl. R.A. Kartini No. 26 Jkt. Phone 62-217404390, 62-541201307
KUTAI KARTANEGA RA
Frans Yusup
Steam Coal
PT. Tanito Harum
Jl. Batu Bara Tenggarong, Phone 62541-42848, 32252
KUTAI KARTANEGA RA
Mr. BS. Wydianto
Steam Coal
PT. Misaja Mitra S. Mariam
Jl. Mahakam Sei. Mariam, Kec. Anggana, Kab. Kutai, Phone 62541-37039
KUTAI KARTANEGA RA
Aminoellah Said
Frozen shrimp
PT. Malindo Kencana Utama
Jl. Jos Sudarso 57, Tarakan, Phone 62-55121082
TARAKAN
AP. Nainggolan, SE.
Frozen shrimp: - Shell On, - Raw Peeled, - Cooked Peeled
PT. Sumber Kalimantan Abadi
Pasar Beringin No. 94 A, Tarakan Tengah, Phone 62-551-21063-5110122924
TARAKAN
Albert Purwanti/ Drs. Chandra Arkian
Quick Frozen Fresh Shrimp
PT. Samarinda Cendana Cold storage & Ind
Jl. Remaja No. 64 Phone 62-541-43519, 32478
SAMARINDA
Barnawie Bakrie
Fresh Frozen Prawns/Shrimp
Arus Mahakam, PT.
Jl. P. Suriansyah No. 16, Phone 62-541-734373, 748206
SAMARINDA
Moch Sinsyah
Rattan Flooring
PT. Kuda Mas
Jl. Merdeka 18, Samarinda Phone 62-541-738115
SAMARINDA
Yusuf
Agar wood
BERAU
KUTAI TIMUR
Source: East Kalimantan Government, BPID (Regional Investment and Promotion Board) of East Kalimantan Province, East Kalimantan exporters directory, provincial office of the industry trade and cooperatives of East Kalimantan of Indonesia, 2003.
PT. PCII
Attachment 1 - 3
EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
Attachment 2. No.
Location
Wood Working 1 BLP
List of Large Companies (Exporters) in East Kalimantan
Name of Company PT. Balikpapan Forest Industries, Ltd
Plywood
1. Plywood 2. Black board Plywood
2
BLP
PT. Dwima Manunggal Raksa Wood Industries
3
BLP
4
SMD
PT. Daya Besar Agung Corp. PT. Gany Mulia Sejahetera Industrie
5
BLP
PT. ITCI Kartika Utama
6
TRK
PT. Intracawood Manufacturing
7
BLP
8
SMD
PT. Inne Dongwha Development Co. Ltd. PT. Meranti Sakti Indah Plywood
9
SMD
PT. Kalimanis Plywood Industries
10
SMD
PT. Kalhold Utama
11
SMD
PT. Kayu Lapis Asli Murni
12
SMD
PT. Kayan River Indah Plywood
13
SMD
PT. Melapi Timber
14
SMD
15
SMD
PT. Putera Bungalun Wood Industri PT. Segara Timber Co. Ltd.
16
SMD
PT. Sangkuliarang Bhakti
17
SMD
PT. Sumalindo Lestari Jaya Tbk
18
SMD
Pt. Santi Murni Plywood
PT. PCII
Goods description
1. Plywood 2. Molding Plywood 1. Plywood 2. Block Board 3. Paper overland plywood 4. Wood working products Plywood 1. Plywood 2. Lumber core 3. Sawn Timber 1. Plywood 2. Direct Print 3. Fancy Panel 4. Spliced veneer 5. Color tone 6. Fancy plywood 7. Molding Plywood
1. Plywood 2. Block Board 3. Laminated 4. Molding 5. Paper Overlay 1. Plywood 2. Molding 1. Plywood 2. Block Board 3. Molding 4. Flooring Plywood 1. Plywood 2. Block Board 3. Sawn Timber 4. Molding 1. Plywood 2. Sawn Timber 3. Molding 1. Plywood 2. Paper Overlay 3. Film Face 4. Block Board Plywood
Attachment 2 - 1
Countries destination Arab Saudi, Japan, Korea, Belgian, England, Netherlands, France. USA, Europe, Taiwan, Korea, Japan. USA, Japan, Hong Kong, Mexico USA, Singapore, Europe, Japan, Korea Hong Kong, USA, Japan, Korea, China Japan, USA, Europe, Hong Kong, Taiwan, Egypt, Korea Japan, Europe, UEA, Korea Japan and Taiwan
USA, Europe, Australia, Korea, China, Japan, Hong Kong, Middle East, India, Malaysia, United Kingdom, Singapore. Australian, Europe, Soviet, Korea, Japan, USA, Middle east Belgium, Japan, Denmark, Taiwan, Thailand, Australian, England, Canada, Italy Japan, Taiwan Taiwan, Japan
Hong Kong, USA, Taiwan, Korea Japan, USA, China, Hong Kong, Taiwan, Germany, Netherlands. Netherlands, USA, Japan, Korea, Canada, China Japan, EEC, USA, Korea, Hong Kong.
USA, Middle East, Australians, United Kingdom, Japan,
Capacity product or export 3
278,500 M /year
3
67,932 M /year 3 11,475 M /year 3 1,500 M /year 2,271 Cu. M/Moon 421 Cu. M/Moon 3 120,430 M /year 3
111,623 M /year 3 18,096 M /year 3 2,550 M /year 3 7,038 M /year 3 20,900 M /year 2,700,000 pc /year 120,000 pc /year 6,000 pc /year 4,427 Cu. M/Moon 579 Cu. M/Moon 1,583 Cu. M/Moon 20 Cu. M/Moon 579 Cu. M/Moon 40 Cu. M/Moon 801 Cu. M/Moon 3/ 4,630 M Moon 3
237,663,235 M /year 3 2,040,976 M /year 3 299,684 M /year 3 245,747 M /year 3 22,381,558 M /year 4,200,000 pc/year 3 32,400 M /year 3 4,000 M /year 3 1,500 M /year 3 1,200 M /year 3 1,000 M /year 3 2,500 M /year 3
87,500 M /year 3 15,200 M /year 3 24,000 M /year 3 7,500 M /year 3 4,750 M /Moon 3 350 M /Moon 3 100 M /Moon 3 45,031 M /year 3 6,796 M /year 3 17,445 M /year 3 11,431 M /year 3,252 Cu. M/Moon
EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Location
19
SMD
PT. Wana Rimba Kencana
1. Plywood 2. Block Board
20
SMD
PT. Tirta Mahakam Plywood Industry
21
SMD
PT. Tunggal Yudi Sawmill Plywood
1. 2. 3. 4. 5. 6. 7. 1. 2. 3.
22
SMD
23
SMD
24
KUKAR
PT. Facific Bontang Raya PT. Meratus Kalimantan Timber PT. Kayu Alam Perkasa Raya
25
TRK
26
SMD
Molding 1 BLP
Name of Company
PT. Idec Abadi Wood Industries PT. East Borneo Permai Plywood CV. Diana Bhakti
2
SMD
PT. Kalindo Pasific
3
SMD
4
SMD
PT. Meratus Kalilmantan Timber CV. Oceanias timber Product
5
SMD
6
SMD
7
SMD
PT. Samtraco (Samarinda Trading Corporation)
8
SMD
PT. Surya Kaltim
PT. PCII
PT. Pasific Bontang Jaya PT. Samarinda Pratama Gemilang Enterprise
Goods description
Plywood Block Board Sawn Timber Molding Furniture Components Fancy Coating Flooring Plywood Block Board Molding
Countries destination Korea Japan, Korea, UEA, Hong Kong, Singapore, Australians Japan, China, Taiwan, Korea, USA.
Capacity product or export 3
50,047,861 M /year 3 4,430.692 M /year 3
102,840 M /year 3 8.40 M /year 3 50,975 M /year 3 15,000 M /year 3 15,000 M /year 3 20,000 M /year 3 48,000 M /year 3 198,420 M /year 3 26,653 M /year 3 8,977 M /year
Plywood
Hong Kong, USA, Japan, Korea, China, Europe, Middle East, Taiwan, Australians. France, USA, Korea
Plywood
Germany, USA, Japan
5,000 M /year
1. Plywood 2. Block Board 3. Polyester Plywood Plywood
Japan, China, Taiwan, Hong Kong.
9,000 M /Moon 3 200 M /Moon 3 600 M /Moon 3 7,500 M /year
Taiwan, China, Japan
3
3,500 M /year 3
3
3
Plywood
Hong Kong, USA, Japan
2,500 M /year
1. 2. 3. 4. 1. 2. 3. 4. 5. 1.
Korea, Belgium, Germany, Netherlands,
2,880 M /year 3 2,880 M /year 3 1,440 M /year 3 9,000 M /year 3 160 M /year 3 3,600 M /year 3 1,200 M /year 3 1,440 M /year 3 1,800 M /year 3 800 M /year
Molding/Dowel Door Jamb/ Window Frame Finger Joint/ Laminating Kiln Dry (KD) Door Frame Door Jamb Window Frame Finger Jointed Laminated Molding
1. Mixed meranti lam board, door jamb, casing 2. Red meranti laminated scantling st 3. 1 quality machined dark red meranti kiln dried 4. White meranti 3 piles finger joint/laminating 5. Keruing flat from blank 1. Sawn Timber, Molding Timber Molding
1. Laminated Boards 2. Finger joint laminated board 3. Window board, housing components 4. Decorative molding, broomstick 5. Door, chair, garden, gate. 1. Door Jamb/Door component
Attachment 2 - 2
Korea, Netherlands, Belgium.
Europe, USA, Japan, Korea Korea, Germany, England, USA, Netherlands, Australians, china
Japan, USA, Europe, Korea England, Italy, Germany, Netherlands, Australians, USA, Korea, Japan, China Germany, Netherlands, Belgium, France, Italy, England, Saudi Arabic, Emirate-Arab, Korea, Philippine.
Korea, Japan,
3
3
5,000 M /year 3 900 M /year 3 1,000 M /year 3 700 M /year 3 100 M /year
3
1,500 M /year 3
43,300 M /year
3
± 18,000 M /year
3
± 750 M /year
EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Location
Name of Company Indonesia
9
SMD
PT. Sumber Daya Karya
10
BLP
PT. Trisakti Utama Indah
11 12
SMD SMD
PT. Megah Mulia PT. Cakrawala Kordasakti Medium Density Fiber board 1 KUKAR PT. Nityasa Mandiri
Bleached Pulp 1 BRU
PT. Kiani Kertas
Chemical Base 1 BTG
PT. DSM Kaltim Malamine Urea and Ammonia 1 BTG PT. Pupuk Kalimantan Timur
2
BTG
Hexamine 1 BTG Chemical 1 BTG Soda Ash 1 BTG Methanol 1 BTG Resin 1
BTG
Countries destination
2. Laminating Block Profile 3. Molding/decorative molding 4. Window frame/ window component 5. Finger joint 1. Sawmill 2. Molding Molding
Germany, Netherlands, Italy, USA
Molding Molding
USA, Japan, Korea Japan, Korea, Taiwan, USA, Singapore China China
Capacity product or export
3
24,000 M /year 3 6,000 M /year 3 6,000 M /year 3
2,400 M /year 3 4,800 M /year
3
100,000 M /year
Medium density Fiber board (MDF)
England, France, Netherlands, Germany, Belgium, UEA, Qatar, Saudi Arabia, Jordanian, Bahrain, China, Taiwan, Korea, India, Philippine, Hong Kong, USA, Canada, Australians.
Bleached Harwood Pulp
France, Japan, England, Germany, Belgium, Korea, Italy, China, Australians, India
1,500 ADMT/Day
Melamine
Thailand, Japan, Malaysia, Australians
50,000 Ton/year
1. Ammonia 2. Urea
Malaysia, Australians, Taiwan, Thailand, Vietnam, Belgium, Korea, Singapore, Philippine USA, Hong Kong, Japan
1,4419,000 Ton/year 1,839,750 Ton/year
PT. Kaltim Pasific Amoniak
Ammonia
PT. Kaltim Hexamindowiratama
Hexamethyline tetramine (CH2)6N6
Russian, China, UEA
3,000 Ton/year
Pt. Kaltim Ambikawiratama
Ammonium Bicarbonate (NH4HCO3)
Taiwan, China, Korea
10,000 Ton/year
PT. Kaltim Sahid Baritosodakimia
Soda Ash & Ammonium (NH4HCO3)
Taiwan, China, Korea
300,000 Ton/year
PT. Kaltim Methanol Industry
Methanol
Japan, China, Korea
660,000 Ton/year
MDF Resin & Plywood Resin
Japan, China, Korea
18,000 ton/year
LNG
Taiwan, China, Korea
Coal
Japan, Taiwan
1,000,000 Ton/year
Coal
Japan, Taiwan
300,000 MT/year
PT. Kaltim Lemindo Kimiatama Liquid Natural Gas (LNG) 1 BTG PT. Badak NGL Coal mining 1 BLP PT. BHP kendilo Coal Indonesia 2 MLU PT. Baradinamika Muda Sukses
PT. PCII
Goods description
Attachment 2 - 3
660,000 Ton/year 85 % ekspor
3
21,64 million M /year
EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Location
3
BRU
4
KUKAR
5 6
Name of Company
Goods description
Countries destination
Capacity product or export 1,800,000 Ton/ year
PT. Berau Coal
Lati coal and binungan coal Baiduri Caol
KUKAR KUTIM
PT. Bukit Baiduri Enterprice Coal PT. Fajar Bumi Sakti PT. Indominco mandiri
Coal Steam Coal
7
PSR
PT. Kideco Jaya Agung
Coal
8
KUTIM
PT. Kaltim Prima Coal
Coal
9
KUKAR
PT. Kitadin
Stream Coal
10
KUKAR
PT. Tanito Harum
Steam Coal
PT. Multi Harapan Utama PT. Gunung Bayan Pratama Coal PT. Indexim Coalindo Kartika Selabumi Mining Mandiri Inti Perkasa Nusa Minera Utama PT. Sinar Benua Prima PT. Trubaindo Coal Mining PT. Anugerah Jatimulya PT. Batubara Selaras Sapta PT. Bharinto Ekatama PT. Bumi Laksana Perkasa PT. Bumi Panen Sukses PT. Bumi Sukses Mandiri PT. Dayalapan PT. Delma Mining Corporation PT. Dharma Puspita Mining PT. Dhamar Tejokencono PT. Firman Ketauan Perkasa PT. Insani Bara Perkasa PT. Interex Sacra Raya PT. Kurnia Sarana Lestari PT. Lahai Coal Pt. Lanna Harita Indonesia PT. Mahakam Sumber Jaya
Coal
Chile, Japan, Korea, Taiwan, Thailand India, Japan, Denmark, Taiwan, Thailand Japan, Taiwan Philippine, Japan, Denmark, Taiwan, Thailand Hong Kong, Japan, Philippine, India, Chile, Taiwan Malaysia, Japan, Netherlands, USA, Taiwan, Korea, Brazil, Chile, France, Hong Kong Hong Kong, India, Japan, Taiwan, Malaysia Thailand, India, Japan, Taiwan, Malaysia, China Japan
Coal
Japan
2,602,000,000 MT/year
Japan
945,000,000 MT/year
11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35
PT. PCII
4,000,000 MT/year 500,000 MT/year 3,500,000 MT/year
5,000,000 MT/year
15,000,000 MT/year
1,200,000 MT/year
1,807,000,000 MT/year 973,000,000 MT/year
Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal
Attachment 2 - 4
EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Location
Name of Company
36 37 38 39
PT. Maruwai Coal PT. Pari Coal PT. Perkasa Inakerta PT. Pesona Khatulistiwa Nusantara 40 PT. Ratah Coal 41 PT. Salamindo Pahala 42 PT. Santan Batubara 43 PT. Singlurus Pratama 44 PT. Salaminndo Coalindo 45 PT. Tambang Damai 46 PT. Taraco Mining 47 PT. Teguh Sinar Abadi 48 PT. Tempayang Cemerlang 49 PT. Timah Batubara Utama 50 PT. Wadungmas Tambang Mulia 51 PT. Wirakaneo Coalindo 52 PT. Whiratama Bina Perkasa 53 PT. Anugerah Bara Kaltim Food and Baverage 1 BLP Kalimantan Raya Megah Fishery 2 KUKAR PT. Misaja Mitra S. Mariam 3 TRK PT. Malindo Kencana Utama
Goods description
Countries destination
Capacity product or export
Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal
Live sea worm
Japan
750 Ton/year
Frozen shrimp
Japan
620 Ton/year
Frozen shrimp: - Shell On, - Raw Peeled, - Cooked Peeled Frozen Shrimp
Japan, Hong Kong, Belgium
700 Ton/year
480 Ton/year
4
TRK
PT. Nelayan Abadi Kalimantan Jaya
5
BLP
Quick Frozen Fresh Shrimp
6
KUKAR
7
TRK
8
BLP
PT. Sumber Kalimantan Abadi PT. Samarinda Cendana Cold storage & Ind PT. Sumber Kalimantan Abadi CV. Ihda Gahary
9
TRK
Frozen/Fresh Shrimp
10
TRK
Frozen Shrimp
Japan
150 Ton/year
11
TRK
Frozen Shrimp
Japan
460 Ton/year
12
BLP
Frozen Shrimp
Japan
370 Ton/year
13
BRU
Frozen Shrimp
Japan
280 Ton/year
14
TRK
Frozen Shrimp
Japan
850 Ton/year
15 16
KUKAR KUKAR
PT. Mustika Minanusa Aurora PT.Sabindo Raya Gemilang I PT. Misaja Mitra, Tarakan PT. Manggar Bina Persada BPP PT. Mina Nusantara Ikatama, Berau PT. Tunas Nelayan Mandiri PT. Syam Surya Mandiri PT. Aromah Nelayan Mandiri
Belgium, England, Japan, Hong Kong, USA. Hong Kong, Japan, Europe Hong Kong, Japan, USA, Singapore Japan, Hong Kong, Europe Japan, Hong Kong, Europe, Singapore Japan, Hong Kong
Frozen Shrimp Frozen Shrimp
Japan Japan
700 Ton/year 820 Ton/year
PT. PCII
Fresh Frozen Prawns/Shrimp Quick Frozen fresh Shrimps
Attachment 2 - 5
700 Ton/year 1,200 Ton/year 1,200 ton/year
EXECUTIVE SUMMARY for East Kalimantan Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
No.
Location
17
TRK
PT. Bonanza
Frozen Shrimp
Japan
Capacity product or export 250 To/ year
18
TRK
PT.Sabindo Raya Gemilang II
Frozen Shrimp
Japan
450 Ton/year
CV. Rickyndo Utama
Live Crabs
Singapore
5,400 Ton/year
CV. Sumber Bumi
Bird’s Nest/ Black Bird’s Nest
Singapore, Hong Kong
1,250 Ton/year
Yayasan Pengembangan Tunas Nusantara, Perwakilan Kabupaten Kutai
1. Ginger (Zingiher offiancanale rose) 2. Saffron (Curcuma domestic. Val) 3. Nanas (Ananas comesus.L) 4. Rice (Oriza sativa) 1. White Paper 2. Black Paper
USA, Europe, Australians
77,240 Ton/year 20,000 Ton/year 138 Ton/year 17,500 Ton/year
USA, Europe, Singapore, Japan
77,240 Ton/year 20,000 ton/year
1. Candy 2. Soap/Talc/Shampoo
Malaysia
Live Crabs 1 BLP Bird’s Nest 1 SMD Agribusiness 1 KUKAR
2
SMD
Name of Company
CV. Bintang Mas Prima Jaya
Candy/soap/Talc/Shampoo 1 TRK Harapan Extra Prima.UD
Goods description
Countries destination
Rattan/Flooring 1 SMD
Arus Mahakam, PT.
1. Rattan 2. Flooring
Malaysia, China, Singapore
Agar Wood 1 SMD
PT. Kuda Mas
Agar wood
Singapore
822,000 Kg/year
Source: East Kalimantan Exporters Directory, Provincial Office of The Industry, Trade and Cooperatives of East Kalimantan, 2003. SMD=Samarinda, BLP=Balikpapan, TRK=Tarakan, KUKAR=Kutai Kartanegara, BRU=Berau, KUTIM=Kutai Timur, PSR=Pasir, MLU=Malinau, BTG=Bontang.
PT. PCII
Attachment 2 - 6
