the development of manufacturing industrial estate in indonesia
Transcription
the development of manufacturing industrial estate in indonesia
THE DEVELOPMENT OF MANUFACTURING INDUSTRIAL ESTATE IN INDONESIA Presented by: Imam Haryono, Ph.D. Director General for Industrial Region Development, Ministry of Industry “Expand Your Opportunities in Remarkable Indonesia” Presented on Indonesia Investment Seminar ASEAN-Japan Centre – The Indonesian Embassy in Tokyo Tokyo, March 31, 2015 TOPICS I. II. INDONESIA-JAPAN ECONOMIC RELATIONSHIP REMARKABLE INDONESIA III. INDONESIA’S ECONOMIC CONDITION IV. INDONESIA’S MANUFACTURING INDUSTRY V. DEVELOPMENT OF THE MANUFACTURING INDUSTRIAL ESTATE VI. ENHANCE INDONESIA’S INVESTMENT CLIMATE 2 I. INDONESIA-JAPAN ECONOMIC RELATIONSHIP 3 1. Trade Balance Indonesia-Japan Value : Thousand USD Description 2009 2010 2011 2012 2013 Growth (%) 20092013 Jan-Mar 2013 2014 Change (%) 2014/2013 TOTAL TRADE 28.418.459,20 42.747.614,40 53.151.308,40 52.902.939,30 46.370.847,00 12,66 11.571.873,59 11.751.546,70 1,55 INDUSTRY 16.794.339,09 26.862.659,08 31.811.106,09 34.442.107,88 30.108.562,77 15,2 7.482.219,29 8.250.777,00 10,27 NON INDUSTRY 11.624.120,11 15.884.955,32 21.340.202,31 18.460.831,42 16.262.284,23 8,6 4.089.654,30 3.500.769,71 -14,40 EXPORT 18.574.730,40 25.781.813,60 33.714.696,10 30.135.107,70 27.086.258,80 9,53 6.911.878,11 6.135.922,82 -11,23 7.034.537,99 10.020.127,35 12.577.409,97 11.794.260,55 11.112.334,28 11,4 2.842.000,23 2.669.670,47 -6,06 11.540.192,41 15.761.686,25 21.137.286,13 18.340.847,15 15.973.924,52 8,3 4.069.877,88 3.466.252,35 -14,83 IMPORT 9.843.728,80 16.965.800,80 19.436.612,20 22.767.831,70 19.284.588,20 17,81 4.659.995,49 5.615.623,89 20,51 INDUSTRY 9.759.801,10 16.842.531,73 19.233.696,12 22.647.847,34 18.996.228,49 17,7 4.640.219,07 5.581.106,53 20,28 27,7 34.517,36 74,54 INDUSTRY NON INDUSTRY NON INDUSTRY 83.927,70 123.269,07 202.916,08 119.984,36 288.359,71 19.776,42 TRADE BALANCE 8.731.001,70 8.816.012,90 14.278.083,90 7.367.276,00 7.801.670,50 -3,97 6.281.293,80 4.791.135,10 -23,72 INDUSTRY -2.725.263,11 -6.822.404,38 -6.656.286,16 -10.853.586,79 -7.883.894,22 0 -1.798.218,84 -2.911.436,06 -61,91 NON INDUSTRY 11.456.264,81 15.638.417,28 20.934.370,06 18.220.862,79 15.685.564,72 8,1 4.050.101,46 3.431.734,99 -15,27 Source: BPS, Processed by DG IIC, Ministry of Industry 4 2. Japanese investment in Indonesia compared to some Asian countries (third quarter 2014 – USD Million) Singapore, 4,899.5 Rest of World, 11,906.6 Taiwan, 107.6 Source: BKPM; processed by Ministry of Industry Japan, 2,041.3 Malaysia, 983.9 South Korea, 752.0 Hong Kong (SAR), 498.9 People's Republic of Thailand, 226.6 China, 328.7 5 3. Japanese Investment in Indonesia among Japanese Investment in South-East Asia 25 USD Billion 20 15 10 5 0 2005 2006 2007 2008 Singapore Thailand 2009 2010 2011 2012 2013 Indonesia Malaysia Philipines Q3 2014 Vietnam Source: JETRO; modified by Ministry of Industry 6 4. Japanese Investment in Indonesia by Sector 5.0 USD Millions 4.0 3.0 2.0 1.0 0.0 2010 2011 2012 Primary Secondary 2013 2014 Tertiery Tertiary Source: BKPM; modified by Ministry of Industry Secondary Sector (Manufacturing Industry) is the main sector for Japanese investor 7 5. Japanese Investment in Manufacturing Industry (third quarter 2014 – USD Million) Other Industry, 16,537.0 Motor Vehicles & Other Transport Equip. Industry, 880,655.0 Food Industry, Paper and Textile 135,368.2 Printing Industry, Industry, 42,914.2 63,180.1 Metal, Machinery & Electronic Industry, 384,551.2 Chemical and Pharmaceutical Industry, 111,875.5 Rubber and Plastic Industry, 97,704.6 Source: BKPM; modified by Ministry of Industry 8 II. REMARKABLE INDONESIA 9 1. Country Snapshot: The Biggest Archipelago INDONESIA GDP Size US$ 878.0 Bi GDP percapita US$ 3,508 Population Land Area 1,904,443 sq km Sea Area 3,116,163 sq km Total Area 5,020,606 sq km Coastal Line 81,000 km 251 Million people (4th biggest population) Main Towns Population Jakarta (Capital) Surabaya Bandung Semarang Medan Samarinda Makassar (‘000) 9,558 2,584 2,393 1,553 2,109 791 1,339 GDP Share GDP/Capita Jakarta (Capital) East Java West Java Central Java North Sumatera East Kalimantan South Sulawesi (%) 16.3 14.7 14.3 8.5 5.4 6,2 2.3 (US$ ‘000) 9.9 2.3 1.7 1.5 2.3 10.0 1.6 Languange Indonesian (Bahasa Indonesia) As well as some 7500 other regional languanges and dialects. Source: various The rising population share of Indonesia’s middle class (% of Pop) 2003 2010 37.7% 56.5% Source: World Bank 10 2. Strategic Location: Gateway to ASEAN Market Moscow (11 hrs) New York (21 hrs) London Berlin (15 hrs) 15hrs 30mnt Tokyo (7 hrs) Dubai (8 hrs) Beijing (9hrs) New Delhi (8 hrs) Singapore (1hr 42 min) Jakarta Ria De Janeiro (24hrs) Johannesburg (14 hrs) Darwin (3hrs 20mnt) Sydney (6hrs 50mnt) Melbourne (6hrs 30mnt) Strategic Location and Expanding Global Influence Indonesia lies at the intersection of the Pacific Ocean, along the Malacca Straits and the Indian Ocean. Over half of all international shipping goes through Indonesian waters. 11 3. Natural Resources: Need More Value Added (1/2) Coal Natural Gas Oil Renewable Energy Others Indonesia is a major player in the global coal market The world’s second largest thermal coal exporting country, third largest exporter of steaming coal Production of around 385 million tonnnes of 2013 and 28,978 million tonnes proved reserves of coal Around 150.7 trillion cubic feet of proven natural gas as at the end of 2012 and is the single largest holder of proven natural gas reserves in the Asia Pacific region 7.42 billion barrels stock tank of proven oil reserves at the end of 2012 Holds 40% of the world’s geothermal resources, equivalent to 28.6GW of power generation potential Palm oil, cocoa, and other minerals Source: Ministry of Energy and Mineral Resources (MEMR), 2013 The country is home to a biodiversity that is only second to Brazil, just to mention a few. These resources provide tremendous investment opportunities. Moreover, development potential is far from saturated, particularly in renewable energy. 12 3. Natural Resources: Need More Value Added (2/2) World Rank No Commodity Production Location 1 Crude Palm Oil 21.2 million tons (2013) Sumatera, Kalimantan, Sulawesi, Papua. 1st 2 Tin 63 thousand metric tons (2013) Sumatera 2nd 3 Rubber 3.1 million tons (2013) Sumatera, Kalimantan 2nd 4 Cocoa 740 thousand tons (2013) Sulawesi, Sumatera, Java, Kalimantan, East Nusa Tenggara 2nd 5 Copper 868 thousand metric tons (2011) Papua, Maluku, Nusa Tenggara 5th 6 Nickel 189 thousand metric tons (2011) Sulawesi, Sumatera, Maluku, Papua 2nd 7 Gold 105 metric tons (2011) Kalimantan, Sumatera, Maluku, Papua 7th Source: BKPM, FAO, US Geological Survey, 2013 13 III. INDONESIA’S ECONOMIC CONDITION 14 1. Indonesian Economic Indicator NO INDICATOR 2009 2010 2011 2012 2013 2014 1 Growth of Gross Domestic Income (%) 4.63 % 6.20 % 6.46 % 6.23% 5.8% 5.1% 2 Inflation (average) 2.78 % 6.96 % 3.79 % 4.3 % 4.4% 5.1% 3 Trade balance (USD Billion) 19.68 22.11 26.06 -1.63 -4.07 -1.88 4 Foreign Exchange Reserves (USD Billion) 66.10 96.20 110.12 112.78 99.4 111.9 5 Export (US$ Billion) 116.51 157.77 203.49 190,04 182.55 176.29 6 Import (US$ Billion) 96.82 135.66 177.43 191.67 186.62 178.17 Source: Statistics Indonesia, Bank Indonesia, Ministry of Trade; 15 15 2. Indonesian Economic Indicator 253,0 244,7 265,4 9,66% 9,35% 10,14% 472,6 18,05% 1. Agriculture, Livestock, Forestry and Fishery 327,6 12,51% 2.Mining dan Quarrying 3. Manufacturing Industry 192,6 7,36% 172,0 6,57% 4. Electricity, Gas and Watersupply 5. Construction 670,1 25,59% 20,1 0,77% 6. Trade, Hotel and Restaurant 7. Transportation and Communication 8. Financial, Ownership and Business Services 9. Services 16 16 Potencies 3.B.Huge Size of Domestic Market (the growing consumption) Domestic consumption contribute around 56.7% of economic growth 2014: 253 Million of Population o GDP/Cap : US$ 4.700 (2014). o Middle Class Population : ± 80 Mio 141 Mio in 2020. o Population Growth : 1% per year o Energy Demand Growth : 6% per year. o Around 60 percent of the population are in the age of productive period in 2014. o It will be increased to 70 percent of the population in 2030. 2025: 320 Million of Population 17 17 4. Investment Target (1/2) Investment Strategic Plan 2015-2019 IDR 3,519 trillion total investment targeted i n 2015-2019 100 0 FDI 17.7% DDI 15.9% 800 700 600 500 400 300 Inves tment Target (IDR trillion) 900 200 15% 14.5% 12.2% 38.9% 37.6% 36.3% 35.0% 33.8% 61.1% 115 % increase from 2010-2014 period (IDR 1,632.8 trillion) 15.1% average growth ta rgeted i n 2015-2019 period 62.4% 66.2% 65.0% 2015 2015 2016 2016 63.7% 100 0 2017 2018 2018 2019 2019 494.7 570.0 Ax2017 le FDI 343.7 386.4 is Tit429.0 DDI 175.8 208.4 249.8 297.8 363.0 TOTAL 519.5 594.8 678.8 792.5 933.0 Indonesia’s investment Target, 2015-2019 Excl. Financial Sectors and Upstream Oil and Gas, in IDR Trillion FDI 2015-2019 DDI 2015-2019 63.6 %averageshare 36.4 % averageshare of tota l i nves tment ta rget i n 2015-2019 of total l i investment target In 2015-2019 Source: The Investment Coordinating Board of the Republic of Indonesia 18 4. Investment Target (2/2) Based on Capital expenditure (IDR trillion) in2010-2014, not including financial, oil & gas sectors Tertiary 1000 900 800 700 Secondary Total Group of Sectors Primary Sector: 15% Secondary Sector: 54% Terti a ry Sector: 31% 15.1 900 Total Location 800 Java : 45% Outs i de Java : 55% 700 55.5 16.4 500 42.6 600 47.2 53.5% 400 51.5% 400 52.7 50.9 54.4 300 62.0 200 100 31.5% 30.9% 30.6% 2015 2015 2016 2016 2017 2017 Axis Title Primary 88.4 97.6 Secondary 267.5 Tertiary TOTAL 30.4% 30.4% 200 100 0 2018 2018 2019 2019 107.9 119.3 131.8 313.5 363.2 431.9 517.8 163.6 183.7 207.7 241.3 283.4 519.5 594.8 678.8 792.5 933.0 Java 38.0 500 54.5 17.0% Outside Java 1000 14.1 15.9 600 300 Primary 52.8 45.6 57.4 49.1 0 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 282.6 302.6 317.4 337.6 354.5 Outside Java 236.9 292.2 361.4 454.9 578.5 TOTAL 519.5 594.8 678.8 792.5 933.0 Java Source: The Investment Coordinating Board of the Republic of Indonesia 19 IV. INDONESIA’S MANUFACTURING INDUSTRY 20 1. Growth of Manufacturing Industry Manufacturing Sector Growth 8 7 6 Growth (%) 5 4 3 2 1 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Economic Growth 5.04 5.69 5.49 6.34 6.01 4.63 6.22 6.48 6.26 5.74 5.06 Manufacturing Sector 7.51 5.89 5.25 5.16 4.05 2.56 5.1 6.73 6.4 6.12 5.34 Source: Statistics Indonesia The current performance of national industry is encouraging; the manufacturing sector grew significantly by 6.12 % in 2013 and 5.34% in 2014, higher than the GDP growth in the last four years. 21 2. Manufacturing Industry Growth by Sectors Sectors 2009 2010 2011 2012 2013 2014 1 Food, Beverages, and Tobacco 11.45 2.75 9.05 7.59 3.31 7.40 2 Textile, Leather Goods, and Footwear 0.69 1.77 7.58 4.25 6.07 2.38 3 Wood Products and Other Forestry Products -1.32 -3.44 0.38 -3.14 6.28 7.33 4 Paper and Printed Goods 6.43 1.65 1.46 -4.74 4.53 6.23 5 Fertilizer, Chemical and Rubber Products 1.67 4.70 3.94 10.48 2.60 1.28 6 Cement and Non Ferrous Materials -0.49 2.33 7.16 7.82 3.00 1.58 7 Ferrous and Steel -3.94 2.39 13.18 5.86 7.04 4.22 8 Transportation, Machinery and Components Other Products -2.78 10.41 6.83 7.06 10.53 6.03 3.25 3.05 1.85 -0.95 -0.54 9.32 Non Oil and Gas Manufacturing Industry 2.56 5.10 6.73 6.40 6.12 5.34 Gross Domestic Product 4.63 6.22 6.48 6.26 5.74 5.06 9 Source: Statistics Indonesia 22 3. Projected Growth of Manufacturing Industry Indicators No Indicators Unit 2014 2015 2020 1 Manufacturing sector growth % 5.7 6.8 8.5 2 Share of manufacturing sector GDP toward national GDP % 20.8 21.2 24.9 3 Share of manufacturing sector’s export % 66.5 67.3 69.8 4 Manufacturing sector workforce Million people 14.88 15.44 18.44 5 Share of Manufacturing sector employment toward total employment % 13.7 14.1 15.7 6 Percentage of imported input goods compared to manufacturing sector GDP % 43.5 43.1 26.9 7 Value-added produced outside Java Island % 29.0 30.0 32.0 Source: Statistics Indonesia 23 4. Law and Regulatory Framework (Law 3/2014 on Industrial Affairs) OBJECTIVE OF INDUSTRIAL DEVELOPMENT Independent, competitive, and advanced industry for the proseperity and welfare of society. Supporting Instruments • Licensing • Investment in Industrial Sector • Industrial Facility Industrial Resources Development • Human Resources Development • Natural Resources Utilization • Development and Utilization of Industry Technology • Development and Utilization of Creativity and Innovation • Provision of Sources of Financing The Undertaking of Governmental Matters In Industrial Affairs • Master Plan for National Industrial Development • National Industrial Policy • Work Plan for National Industrial Development Empowerment of Industry Development of Infrastructure • Industrial Standardization • Industrial Infrastructure • National Industrial Information System • Industrial Estate • • • • Small and Medium Industry Green Industry Strategic Industry Increase in Domestic Products Utilization (P3DN) • International Cooperation in Industrial Sector Supporting Instruments • National Industrial Commitee • Community Contribution • Supervision and Control, • Sanction Measures for Safeguard and Salvaging of industry • Industrial Safeguarding Measures • The Industrial Salvaging Measures 24 5. National Manufacturing Industry’s Structure VISION & MISION NATIONAL INDUSTRIAL DEVELOPMENT Core Industry Food Processin g Industry Pharmaceutical, Cosmetics and Medical Devices Industry Textile and Footwear & Oher Industries Transportatio n Equipment Industry Electronics and ICT Industry Energy and Power Equipment Supporting Industry Capital Goods Industry Component Industry Supporting Industry& accessories Upstream Industry Upstream Agro Industry Basic metal industries Upstream Coal, Gas and Mineral Processing Industry Resources Natural Resources Human Resources Technology, Innovation & Creativity Pre-requisites Infrastructure Policy & Regulation Financing 25 Manufacturing Industry 6. Priority Industries Food processing industries Pharmacy, cosmetic, and medical apparatus industries Textile, leather, footwear, and others industries Transportation equipment industries Electronic and ICT industries Power plant equipment and machinary industries Capital goods, machinery component, input goods and industry-supporting services Agro-based upstream industries Basic metal industries Petrochemical and coal-based chemical industries 26 7. National Manufacturing Industry’s Development Policy 1 Fiscal incentives Provision 2 Total Equity Participation by State 3 Domestic Industrial resilience (duty, custom, product standards) 4 Underwriting of energy supply, raw material, and other industrial resources. 5 Facilitate of land distribution and supporting infrastructure 6 Application of Green Industry 7 8 Arrangement of trade system setting imported product Increasing of Domestic Products Utilization 9 Acceleration of Technological Transfer 16 10 Risk Underwriting for the utilization of Industrial Technology Development of business intelligence and market feasibility 17 Enhancement of linkages among big industries and small medium industries 11 Development and Application of Standardization also strengthening the standardization of infrastructure 18 Establishment and strengthening research and development institute as well as industrial education and training 12 Enhancement of the coordination between central and regional government in terms of industrial development 19 13 Development and Strengthening of regional resources based industry include regional core competence and provinvial favoured industry Development and application of standardization (Indonesian National Standards, technical specification, code of practice, green industry standards and standards of industrial estates ) also strengthening standardization of infrastructure 20 Industrial Restructuring by avoiding monopolistic practices and any market distortion Acceleration for development of industrial region 21 Affirmative policy for small and medium industry Promotion enhancement, domination and adoption of industrial technology 22 Strengthening the institutionals of promotion of small and medium industry 14 15 27 8. Estimated Investment Needs for Manufacturing Industry 2035 2020 2015 2014 210 618 2025 4,150 1,000 270 *IDR TRILLION (1 US $ + 13.000 IDR) * Source: Ministry of Industry 28 V. DEVELOPMENT OF THE MANUFACTURING INDUSTRIAL ESTATE 29 1. Regional Development In-equality Between Java and Outside Java WEST INDONESIA WIDE AREA : 32,48 % POPULATION : 81,32 % N. OF INDUSTRY : 95,56 % JAVA ISLAND WIDE AREA : POPULATION : N.OF INDUSTRY : 6,8 % 57,5 % 90 % EAST INDONESIA WIDE AREA : 67,52 % POPULATION : 18,68 % N. OF INDUSTRY : 4,44 % REGIONAL INEQUALITY 30 2. The Direction of Development Policy of Manufacturing Industrial Estates OUTSIDE JAVA Natural resource based industrial estates (renewable and nonrenewable) Enhance the efficiency of logistic system Industrial estates as main driver of new economic growth centers JAVA High technology based industrial estates Labor-intensive industrial estates Industrial Estates oriented to consumer goods industry 31 3. Development of 14 Industrial Estates Outside Java Kuala Tanjung Industrial Estate Aluminum Industry, CPO Processing Industry Landak Industrial Estate Palu Industrial Estate Rubber Industry, CPO CPO Processing Industry Rattan, Rubber, Cocoa (agro), and Smelter industries Ketapang Industrial Estate Batu Licin Industrial Estate Steel Industry Alumina Industries Teluk Bitung Industrial Estate Agro and Logistic Industries Buli Industrial Estate Smelter, Ferronickel, Stainless steel and downstream stainless steel Teluk Bintuni Industrial Estate Oil& Gas, Fertilizer Industries Sei Mangkei Industrial Estate CPO Processing Industry Morowali Industrial Estate Tanggamus Industrial Estate Maritime and Logistic Industries Smelter, Ferronickel, Stainless steel and downstream stainless steel Jorong Industrial Estate Steel Industry, CPO Processing Industry Bantaeng Industrial Estate Smelter, Ferronickel, Stainless steel and downstream stainless steel Konawe Industrial Estate Smelter, Ferronickel, Stainless steel and downstream stainless steel 32 14 Industrial Estates No. Industrial Estate Name 1 Teluk Bintuni, West Papua Area Work Force Anchor Industry (Ha) (Persons) 2,112 51,500 PT. Pupuk Indonesia 2 Buli, Halmahera Timur, 300 North Maluku 3 Bitung, North Sulawesi 534 4 Konawe, South-East 5,500 Sulawesi 5 Morowali, Central Sulawesi 1,200 6 Palu, Central Sulawesi 1,500 7 Bantaeng, South Sulawesi 3,000 8 Ketapang, West Kalimantan 1,000 9 Landak, West Kalimantan 10 Batulicin, Tanah Bumbu, South Kalimantan 11 Tanggamus, Lampung 12 Kuala Tanjung, Batu Bara, North Sumatera 13 Sei Mangkei, Simalungun, North Sumatera 14 Jorong, South Kalimantan 306 530 3,500 1,000 2,002 6,370 10,000 PT. Feni Haltim 90,000 PT. Pelindo 18,200 Jiangsu Delong Nickel Industry Co. Ltd 80,000 PT. Sulawesi Mining Investment 165,000 PT. Bangun Palu Sulteng 163,200 PT. Hwadi dan Bantaeng Sigma Energi 10,000 PT. Well Harvest Winning Alumina Refinery 33,600 10,000 PT. Meratus Jaya Iron and Steel 104,800 PT. Repindo Jagat Raya 113,200 PT. Inalum 83,300 PT. Unilever Oleo chemical Indonesia 30,000 PT. Semeru Surya, PT Delta Prima Focus of Industry Fertilizer & Petrochemical Industries Ferronickel Industry Logistic & Agro Industries Ferronickel Industry Ferronickel Industry Rattan base, Agro, Multivarious Industries Ferronickel Industry Aluminum based industry Rubber Processing Industry Steel Industry Maritime Industry Aluminum based industry CPO Processing Industry Steel Industry & Agro Industries 33 3.1. Teluk Bintuni Industrial Estate LABOR PRODUCT DIRECT INDIRECT SUPPORTER polypropylene 3.000 4.500 15.000 Urea Fertilizer 4.000 5.000 20.000 7.000 9.500 35.000 Amount Total 51.500 Profile 1. Onar Baru Villages, District of Sumuri, Teluk Bintuni Regency of West Papua 2. Land Areas ±2112 Ha 3. Base of Industries : Fertilizer and Petrochemical 4. Value of Investments ± Rp 31,4 Trillion 5. Managed By PT Pupuk Indonesia Progress 1. Land Status is “APL” which means it is NOT on the status of PROTECTED FOREST and can be used for other purposes, such as for industry. 2. Metering of the land has already undertaken by BPN (National Land Agency) of West Papua Province; 3. Developing Government Regulation on stipulating indigenous people’s land right Actions 1. Facilitating to solve indigenous people’s land rights 2. Facilitating of relocating 88 local householders 3. Facilitating to build road access to industrial estate ± 30 Km 4. Facilitating to build the Power Plant ±200 MW 5. Facilitating to build the standard water installation ±2000 L/second 6. Facilitating on assigning industrial estate administrator 7. Facilitating to map out the detailed spatial plan outside industrial estate. 34 3.2. Bitung Industrial Estate Profile 1. Tanjung Merah Bitung Village 2. 3. 4. 5. Progress 1. Land Status of 92,6 Ha is Ex HGU (Business Purposed Land Right ) owned by North Sulawesi and on going process to become HPL (Land Management Right) in National State Agency (BPN). 2. On going process on the development of Toll Highway from Manado to Bitung ±43 Km provided by the Central Government 3. Providing Power Plant ±150 MW 4. Accelerating reclamation process, creating ±247 Ha of new land. Actions 1. 2. 3. 4. Employment : 90.000 Workers Land Area ±534 Ha Base of Industries: Coconut, Fishery and Logistics Value of Investment ± Rp 2 Trillion Managed By PT Sulut Membangun 5. 6. Land Acquisition ±100 Ha Build axis road to industrial estate 5 km Facilitating on preparing industrial human resources development Facilitating and coordinating infrastructures development outside industrial estate Facilitating to build the standard water installation ±1200 L/second Facilitating to map out the detailed spatial plan outside 35 industrial estate. 3.3. Palu Industrial Estate Profile 1. 2. 3. 4. 5. Por t Of Pan tolo an Lo gis tic Zo ne Progress 1. Land Status 110 Ha has already owned by Palu City Government 2. Construction development of rubber based industry factory and essential oil factory 3. The axis road to the industrial estate has already established. 4. Electrical System has already provided by Sulawesi Interconnection Actions 1. 2. 3. 4. Employment :165.000 Workers Tawaeli Sub District, City of Palu, Central Sulawesi Province. Land Area ±1500 Ha Base of Industries: Rattan, Seaweed, Cocoa, and Mineral Value of Investment ± Rp 12,5 T Managed By PT Bangun Palu Sulteng 5. 6. Land Acquisition ±100 Ha Build road infrastructure inside industrial estate ( about 2 Km) and industrial estate technical services office Facilitating on preparing industrial human resources development Facilitating and coordinating infrastructures development outside industrial estate Facilitating to build the standard water installation ±1500 L/second Facilitating to map out the detailed spatial plan outside industrial estate. 36 3.4. Indonesia Morowali Industrial Estate Profile 1. 2. 3. 4. 5. Progress 1. 2. 3. 4. Actions 1. 2. 3. Employment: 80.000 Workers 4. 5. 6. 7. Bahodopi Sub District , Morowali Regency Land Areas ±1200 Ha Integrated Industrial Ferronickel, Stainless Steel and all the down streaming related industries Value of Investment ± Rp 49,7 Trillion Managed By Tsinghang Industrial Morowali Industrial Park Land Status 1200 Ha has already owned by TIMIP (the industrial estate corporation) Construction development of ferronickel factory Phase I with capacity of 300.000 tons/year (progress up to 90%) and Phase II with capacity of 600.000 tons/year the ground breaking and basic construction has been established. Build power plant 65x2 MW (with progress to 90%) Development of sea port and air port are yet still on the process of getting the licensing Facilitating to build the standard water installation 16.500 L/second Facilitating electrical transmission provision to the industrial estates Build polytechnic and Metal Based Mineral Innovation Centre Build 8 tower of dwelling for 1000 workers Build Hospital Type C Facilitating to map out the detailed spatial plan outside industrial estate. Facilitating to build sea port and air port 37 3.5. Halmahera Timur Industrial Estate Profile 1. 2. 3. 4. 5. Progress 1. 2. 3. 4. Actions 1. 2. 3. Employment: 10.000 Workers 4. 5. Buli Sub District, East Halmahera Residency Land Area ±300 Ha Integrated Industrial Ferronickel, Stainless Steel and all the down streaming related industries Value of Investment ± Rp 4,4 T Managed By PT FeNi Haltim Land Status 300 Ha has already owned by PT Antam Persero Completion of sea port development which integrated with industrial estate Several industrial estate facilities has already been built, such as: hostel, administrator office, and oxygen plant Request for Tax holiday from PT FeNi Haltim is still on the discussion process in the Ministry of Finance’s fiscal team Facilitating to build the standard water installation 1.000 L/second Build waste treatment and landfills facilities Build axis road from sea port to industrial estate for about 1 Km and to Town site about 2 Km Facilitating on developing steamed powered electricity power plant 2x110 MW Facilitating to map out the detailed spatial plan outside industrial estate. 38 3.6. Konawe Industrial Estate Profile 1. 2. 3. 4. 5. Progress 1. 2. Actions 1. 2. 3. 4. Employment: 18.200 Workers 5. Bondoiala and Kapoiala Sub District Land Area ±5500 Ha Integrated Industrial Ferronickel, Stainless Steel and all the down streaming related industries Value of Investment ± Rp 28,7 T Managed By PT Konawe Putra Propertindo Land clearing and basic construction has already been undertaken. There are an on going process on the development of several facilities such as: offices , mess , and the finishing phase of sea port . Endorsement Legal Letter from the Governor of Southeast Sulawesi and Head of Konawe Residency has already been accepted Facilitating on reviewing the Konawe Residency Spatial Plans and Southeast Sulawesi Spatial Plans Accelerating the process for Environmental Feasibility Assessment of Industrial Estate in the Province Environmental Committee Office. Facilitating Sea Port License Recommendation from the Governor Facilitating to build power plant and for phase I should provide 10 MW of electricity Facilitating to map out the detailed spatial plan outside industrial estate. 39 3.7. Bantaeng Industrial Estate Profile 1. 2. 3. 4. 5. Progress 1. 2. 3. Actions 1. 2. 3. 4. Employment: 163.200 Workers 5. Sub district Pajukukang Bantaeng Residency Land Area ± 3000 Ha Integrated Industrial Ferronickel, Stainless Steel and all the down streaming related industries Value of Investment ± Rp 24,4 T Managed By kawasan PT Bantaeng Industrial Persada Completion of the development of Industrial Estate’s Masterplan dan Strategic Plan for area of 3000 ha. The ground breaking of the development of Steamed Powered Electricity Plant 2 X 300 MW has already undertaken by PT Hwadi (China-Malaysia) and PT Bantaeng Sigma Energi. Land Clearing is already settled by PT Titan for Ferronickel Industry for area of 300 Ha Facilitating Environmental Feasibility Assessment in Industrial Estate. Facilitating to build sea port for industrial estate Facilitating to build the standard water installation for industrial estate Facilitating to build a new road for traffic diversion from the old and high jam road Facilitating to map out the detailed spatial plan outside industrial estate. 40 3.8. Kuala Tanjung Estate KAWASAN INDUSTRIIndustrial TELUK BINTUNI (North Sumatra) Profile Employment: ± 113.239 Workers 1. Batubara Residency, North Sumatra Province 2. Land Area ±1000Ha 3. Base of Industry : Alumina 4. Value of Investment ± Rp 4,5 T 5. Anchor Industry PT Inalum Progress 1. To accelerate the finalization process of presidential decree to form the management board of industrial estate 2. Coordinating and accelerating the infrastructures development and land provision Actions Infrastructure Development: 1.Build railroad from Bandar Tinggi to Kuala Tanjung (22,15 km) 2.Road Systems: Main Road (volume 97,125 m2) Surrounding Road (volume 271,950 m2) 41 3.9. Sei Mangkei Industrial Estate KAWASAN INDUSTRI BITUNG (North Sumatra) Profile 1. 2. 3. 4. 5. Progress 1. Management Board of Special Economic Zone has already established (Presidential Decree No. 40 / 2014) 2. Innovation Centre facility for Palm Oil has already operated in the area 3. Has already have anchor industry inside the estate (PT. Unilever Oleo chemical Indonesia) Actions 1. 2. 3. Located at Simalungun Residency Land Areas ±2.002 Ha Base of Industries : CPO Processing Value of Investment ± Rp 9,5 T Anchor Industry PT Unilever Olechemical Indonesia Build railroad from KEK Sei Mangkei to Sepur Simpang (2,9 Km) Uplifting the function of existing railroad KA Gunung Bayu - Perlanaan (4,15 km) to meet the industrial standard Facilitating the equipment for innovation center Employment: ± 83.300 Workers 42 3.10. Tanggamus KAWASANIndustrial INDUSTRI Estate PALU (Lampung) Profile 1. 2. 3. 4. 5. Progress Actions Employment: ± 104.800 Workers Located at: Kota Agung Timur Sub District, Limau Sub District and Cukuh Balak Sub District of Tanggamus Residency Land Areas ±3500 Ha Base of Industry :Maritime Value of Investment ± Rp 17,5 T Anchor Industry PT Repindo Jagad Raya 1. anchor industry has already exist (PT. Repindo Jagad Raya) 1. On going intensive discussion between Tanggamus Residence Government, Pertamina, and Ministry of Industry to revoke the land restriction for industrial estate which is in accordance to National Land Agency Regulation maximum should be 400 ha. PT Repindo (the administrator of industrial estate) was requested by the stakeholder to finish the business plan of the estate. 2. Enhancing /upgrading the existing road to Maritime Industrial Estate (Width 8m, Length 10km). 3. Land Acquisition (In 2016). 4. Build Vocational Training Center Balai Latihan Kerja . 5. Build Power Plant (In 2016). 6. Build streetlight System 7. Upgrading the development of sea port inside industrial estate (Initiated by Ministry of Transportation). 8. Development of Steam-Powered Electricity Power Plan. 43 3.11. Batulicin Industrial Estate (South Kalimantan) Employment: 10.000 Workers Profile 1. Located at Simpang Empat Sub district and Karang Bintang Sub district of Tanah Bambu Residency 2. Land Areas 530 Ha 3. Base of Industry : Steel 4. Value of Investment : Rp 2,12 Trillion 5. Anchor Industry PT Meratus Jaya Iron and Steel Progress 1. Has already have Master plan and Strategic Plan of industrial estate 2. Facilitating the Government of South Kalimantan to manage the industrial estate since it is owned by the South Kalimantan Government (not by private sector) 3. Facilitating the Tanah Bambu Residency Government to map out the detailed spatial plan Actions 1. Build dock with JT: 750 m , depth :22 m 2. Build Alternative road system (about 15) km from outer ring road 3. Develop integrated Masterplan of the city, industrial estate, sea port, air port, trade center, residency, and tourism area 4. Shifting land status from Protected Forest Area to be an area dedicated for industrial estate (On going process since 2014) 44 3.12. Ketapang Industrial Estate (West Kalimantan) Profiles 1. Located at South Matan Hilir Sub district , Ketapang Residency 2. Land Areas 1.000 Ha 3. Base of Industry : Alumina 4. Value of Investment: Rp 4 Trillion 5. Anchor Industry PT. Well Harvest Winning Alumina Refinery Progress 1. Facilitating Government of Ketapang Residency to adjust the Residency Spatial Plan 2. Facilitating anchor industry to accelerate the development of industrial estate 3. Groundbreaking will be on September 2015 LUAS (Ha) PENGGUNAAN LAHAN INDUSTRI Ke Pelabuhan 01 13 04 12 Ja n la Pr op in si tap 04 an UMKM e (K 01 02 ANEKA INDUSTRI 61,44 03 INDUSTRI SEDANG 101,63 04 INDUSTRI BESAR 270,58 INFRASTRUKTUR KAWASAN LUAS (Ha) PENGGUNAAN LAHAN INDUSTRI 25,41 UMKM 5,93 KEMENTERIAN PERINDUSTRIAN DIREKTORAT JENDERAL PENGEMBANGAN PERWILAYAHAN INDUSTRI DIREKTORAT PENGEMBANGAN FASILITASI KEINDUSTRIAN WILAYAH I PENGEMBANGAN KAWASAN INDUSTRI KORIDOR KALIMANTAN 05 PEMADAM KEBAKARAN 06 POWER STATION 10,70 07 FUEL STATION 12,45 GAMBAR 08 42,24 MASTER PLAN KAWASAN INDUSTRI PAGAR MENTIMUN KABUPATEN KETAPANG 25,4108 09 PERGUDANGAN LIQUID STORAGE CENTER 10,12 (NUNUKAN, PANGKALANBUN DAN KETAPANG) g- ANEKA INDUSTRI 61,44 10 PUSAT PENGEPAKAN INDUSTRI SEDANG 101,63 11 PENGELOLAAN AIR BERSIH 11,27 BATAS WILAYAH PERENCANAAN INDUSTRI BESAR 270,58 06 12 PENGELOLAAN LIMBAH KERING 15,86 GARIS PANTAI 13 IPAL 17,23 Ke 02 03 04 nd aw an ga INFRASTRUKTUR KAWASAN n) FASILITAS PENUNJANG 25 5,93 05 PEMADAM KEBAKARAN 06 POWER STATION 10,70 07 FUEL STATION 12,45 25 PERGUDANGAN 42,24 08 09 LIQUID STORAGE CENTER Selat Karimata 03 10,12 PUSAT PENGEPAKAN 11 PENGELOLAAN AIR BERSIH 11,27 12 PENGELOLAAN LIMBAH KERING 15,86 13 IPAL 17,23 FASILITAS PENUNJANG 22,92 14 PERUMAHAN 15 SARANA OLAH RAGA 2,94 16 PARKIR ANGKUTAN KARYAWAN 1,19 17 SARANA PERIBADATAN 3,83 21,69 18 AREA KOMERSIAL 19 KANTOR MANAJEMEN 2,52 20 MEDIA CENTER 2,16 21 PERKANTORAN 13,68 22 TRADE CENTER 2,68 23 CONVENTION CENTER 6,04 24 MEDICAL CENTER 3,70 02 25 7,11 10 05 07 01 25 25 JALAN DAN SALURAN LUAS KAWASAN INDUSTRI KETERANGAN JALAN PROPINSI LUAS (Ha) PENGGUNAAN LAHAN INDUSTRI 22,92 14 PERUMAHAN 15 SARANA OLAH RAGA 16 PARKIR ANGKUTAN KARYAWAN 01 17 SARANA PERIBADATAN 18 AREA KOMERSIAL 2,94 1,19 25,41 01 UMKM 02 ANEKA INDUSTRI 03 INDUSTRI SEDANG 04 INDUSTRI BESAR 61,44 101,63 270,58 INFRASTRUKTUR KAWASAN 3,83 05 PEMADAM KEBAKARAN 06 POWER STATION 21,69 07 FUEL STATION 08 5,93 10,70 12,45 42,24 19 23 KANTOR MANAJEMEN 20 22 MEDIA CENTER 09 PERGUDANGAN LIQUID STORAGE CENTER 2,16 10 PUSAT PENGEPAKAN 24PERKANTORAN 11 PENGELOLAAN AIR BERSIH 13,68 12 PENGELOLAAN LIMBAH KERING 17 CENTER TRADE 2,68 13 IPAL 21 21 18 22 20 19 25 23 24 2,52 15 16 CONVENTION CENTER 25 6,04 14 14MEDICAL CENTER 3,70 18 RUANG TERBUKA HIJAU 25 08 25 217,40 TAMAN, 10 JALUR 09 MEDIAN, HIJAU JALAN, BUFER, KOLAM 01 07 LUAS KAWASAN 03 INDUSTRI 117,12 1.009,90 Employment: 10.000 Workers 7,11 17,23 FASILITAS PENUNJANG 14 22,92 PERUMAHAN Actions 2,94 15 SARANA OLAH RAGA 16 PARKIR ANGKUTAN KARYAWAN 17 SARANA PERIBADATAN 18 AREA KOMERSIAL 19 KANTOR MANAJEMEN 2,52 20 MEDIA CENTER 2,16 21 PERKANTORAN 13,68 1. 1,19 3,83 21,69 117,12 22 TRADE CENTER 2,68 23 CONVENTION CENTER 6,04 24 MEDICAL CENTER 3,70 RUANG TERBUKA HIJAU 02 11 25 TAMAN, MEDIAN, JALUR HIJAU JALAN, BUFER, KOLAM 217,40 117,12 JALAN DAN SALURAN 04 1.009,90 LUAS KAWASAN INDUSTRI 2. LUAS KAWASAN INDUSTRI = 1.000 Ha (IZIN LOKASI PT. KETAPANG BANGUN SARANA) 12 217,40 10,12 11,27 15,86 1.009,90 JALAN DAN SALURAN RUANG TERBUKA HIJAU TAMAN, MEDIAN, JALUR HIJAU JALAN, BUFER, KOLAM 7,11 13 SKALA 1 : 30.000 0 1.000 2.000 3.000 m SUMBER PETA 1. Keputusan Bupati Ketapang No: 248/PEM/2013 2. Keputusan Bupati Ketapang No: 249/PEM/2013 3. Build sea port as an entry gate to the estate for unloading the industrial products Enhancing/ Upgrading the province road in the surrounding area Upgrading the access road from industrial estate to the sea port. 45 3.13. Mandor Industrial Estate (West Kalimantan) KIM I Profiles 1. 2. 3. 4. 5. Progress 1. Land Area 306 Ha (Owned by Residency Government) 2. Administrator for Industrial Estate has already established 3. Coordinating the access road development from Pontianak sea port to Industrial estate 4. Coordinating the acceleration of infrastructure development inside the industrial estate, such as: Power Plan, road, telecommunication, Waste Treatment System. Actions 1. Build axis road from industrial estate to Pontianak KIM II POWER STATION PENGELOLAAN AIR BERSIH MEDIA CENTER INOVATION CENTER KANTOR MANAJEMEN Mandor Sub District Land Areas 306 Ha Base of Industry: Rubber Processing Value of Investment Rp 1,22 Trillion Anchor Industry PT. Cakrawala Energi Nusantara PERKANTORAN EXHIBITION CENTER PERKANTORAN FUEL STATION AREA KOMERSIAL CONVENTION CENTER PARKIR ANGKUTAN KARYAWAN MEDICAL CENTER PERDAGANGAN SARANA PERIBADATAN PERUMAHAN COMMUNITY CENTER PUSAT PENGEPAKAN 07 PEMAKAMAN INDUSTRI KECIL MENENGAH INDUSTRI KECIL MENENGAH INDUSTRI KARET INDUSTRI KARET INDUSTRI KARET ANEKA INDUSTRI ANEKA INDUSTRI ANEKA INDUSTRI ANEKA INDUSTRI PEMADAM KEBAKARAN INDUSTRI SEDANG INDUSTRI SEDANG INDUSTRI SEDANG INDUSTRI KARET INDUSTRI KECIL MENENGAH ANEKA INDUSTRI INDUSTRI SEDANG INDUSTRI BESAR PERUMAHAN INDUSTRI BESAR PARKIR ANGKUTAN KARYAWAN INDUSTRI BESAR SARANA OLAH RAGA SARANA PERIBADATAN COMMUNITY CENTER KANTOR MANAJEMEN PERKANTORAN PUSAT INOVASI MEDIA CENTER CONVENTION CENTER EXHIBITION CENTER AREA KOMERSIAL PERDAGANGAN MEDICAL CENTER IPAL PENGELOLAAN LIMBAH KERING PEMADAM KEBAKARAN POWER STATION FUEL STATION PENGELOLAAN AIR BERSIH IPAL PENGELOLAAN LIMBAH KERING PUSAT PENGEPAKAN KAWASAN INDUSTRI MANDOR II KABUPATEN LANDAK Employment: 33.600 Workers TAMAN PEMAKAMAN RTH/BUFFER Sea Port 34km. 2. Build water reservoir to manage the water from mandor River for the purpose of industrial activities.. 4. Build tank farm for latex. 5. Build Electricity System from main road to industrial estate (about 2 km) and build power plan substation 6. Build Waste Treatment System 7. There are already potential investors plan to invest in the area (PT Djarum and PT Sampoerna) 46 3.14. Jorong Industrial Estate (South Kalimantan) Profile 1. Located at Jorong of Tanah Laut Residency 2. Land Areas 6,370 Ha (including Swarangan Pelaihari port 1 037 Ha) 3. Base of Industry : Steel & Agro Industries 4. Value of Investment : 5. Anchor Industry : Progress 1. Facilitating the Government of South Kalimantan to manage the industrial estate since it is owned by the South Kalimantan Government (not by private sector) 2. Facilitating the Tanah Laut Residency Government to map out the detailed spatial plan Actions Employment: 10.000 Workers 1. Facilitating to build sea port for industrial estate 2. Develop integrated Masterplan of the city, industrial estate, sea port, air port, trade center, residency, and tourism area 3. Facilitating to map out the detailed spatial plan outside industrial estate 4. Facilitating on assigning industrial estate administrator 47 4. Development of Manufacturing Industrial Estate Industrial Estates Standard, assures the quality of industrial Estates according to Government regulations so it gives quality certainty for industrial Estates in Indonesia Industrial Estates Award, drives the management of industrial Estates in improving the quality of industrial Estates Establishing industrial Estates as Objek Vital Nasional Industri (OVNI) or National Industry Vital Objects Halal Industrial Estates, gives the easiness for industrial activities in searching for locations, facilities, and infrastructures which comply to halal requirements. Halal products are not associated with religion issue anymore, but hygiene, health, and quality aspects Eco Industrial Estate, minimize negative impacts from the industrial development 48 VI. ENHANCE INDONESIA’S INVESTMENT CLIMATE 49 1. Significant Increase of Electricity Infrastructure in 2015-2019 Electricity Infrastructure Development in 2015-2019 Electricity Power Infrastructure • Power Generator: Construction phase 7.4 GW Planning phase 35.5 GW Total 42.9 GW • Transmission • Sub-station 46.600 kms 105 GVA Capital expenditure requirements: • PLN • Private Sectors Total IDR 609 Trillion IDR 580 Trillion IDR 1.189 Trillion To secure 6.7% of economic growth, with 8.8% of growth in demand for electricity, and electrification ratio target of 97.2% (Source: Ministry of Energy and Mineral Resources, Republic of Indonesia) 50 Power Generator Sites Map of 35.5 GW and 7.4 GW Program Sumatera :PLN : 2.79 GW (23 unit) IPP : 5.96 GW (49 unit) Total : 8.75 GW (72 unit) Sumatera : PLN : 1.43 GW (14 unit) IPP : 1.14 GW (18 unit) Total : 2.57 GW (32 unit) Kalimantan : PLN : 0,92 GW (18 unit) IPP : 0,96 GW (12 unit) Total : 1,87 GW (30 unit) Kalimantan : PLN : 0.88 GW (28 unit) IPP : 0.09 GW ( 7 unit) Total : 0.97 GW (35 unit) Sulawesi : PLN : 2,02 GW (28 unit) IPP : 0,68 GW (40 unit) Total : 2,70 GW (68 unit) Maluku : PLN : 0,26 GW (18 unit) IPP : 0,02 GW ( 4 unit) Total : 0,28 GW (22 unit) Sulawesi : PLN : 0.33 GW (15 unit) IPP : 0.14 GW (10 unit) Total : 0.47 GW (25 unit) Maluku : PLN : 0.05 GW (5 unit) IPP : Total : 0.05 GW (5 unit) Papua: PLN : 0.07 GW (8 unit) IPP : Total : 0.07 GW (8 unit) Maluku Kalimantan Sumatera Papua: PLN : 0,22 GW (19 unit) IPP : 0,12 GW (17 unit) Total : 0,34 GW (36 unit) Sulawesi Jawa-Bali: PLN : 7,38 GW (19 unit) IPP : 13,53 GW (76 unit) Total : 20,91 GW (95 unit) Jawa-Bali: PLN : 1.21 GW ( 6 unit) IPP : 1.75 GW (12 unit) Total : 2.96 GW (18 unit) Java-Bali Papua Nusa Tenggara Nusa Tenggara: PLN : 0,66 GW (16 unit) IPP : 0,05 GW ( 9 unit) Total : 0,70 GW (25 unit) Nusa Tenggara: PLN : 0.19 GW (15 unit) IPP : 0.08 GW ( 6 unit) Total : 0.27 GW (21 unit) Indonesia: PLN : 18,42 GW (232 unit) IPP : 24,51 GW (260 unit) Total : 42,93 GW (492 unit) Program: 35,56 GW On Going: 7,37 GW PLN: State-owned Electricity Company IPP: Independent Power Producers (Source: Ministry of Energy and Mineral Resources, Republic of Indonesia) 51 Transmission Requirement Map of 35.5 GW and 7.4 GW Program Sumatera: : 611 kms 70 kV : 11.239 kms 150 kV : 5.082 kms 275 kV : 1.130 kms 500 kV 500 kVDC : 1.243 kms : 19.305 kms TOTAL Kalimantan: 150 kV : 7.703 kms 275 kV : 180 kms TOTAL : 7.883 kms Sulawesi: 70 kV : 86 kms 150 kV : 4.900 kms : 4.986 kms TOTAL Sulawesi Java-Bali Java-Bali: 70 kV 150 kV 500 kV 500 kVDC TOTAL : 44 kms : 8.431 kms : 2.411 kms : 300 kms : 11.185 kms : 237 kms : 416 kms : 653 kms Papua: 70 kV 150 kV TOTAL : 304 kms : 60 kms : 364 kms Maluku Kalimantan Sumatera Maluku: 70 kV 150 kV TOTAL Papua Nusa Tenggara Nusa Tenggara: 70 kV : 1.408 kms 150 kV : 813 kms TOTAL : 2.221 kms INDONESIA : kV 70 : 2.689 kms 150 kV : 33.562 kms 275 kV : 5.262 kms 500 kV : 3.541 kms 500 kVDC : 1.543 kms TOTAL : 46.597 kms (Source: Ministry of Energy and Mineral Resources, Republic of Indonesia) 52 2. Connectivity to be accelerated Development Sector in Connectivity Miangas Baseline Target 2014 2019 New road (km, total in 5 years) 1,202 2,650 New toll road (km, total in 5 years) 807 1,000 5,434 8,692 Maratua Singkawang Muara Te we h Enggano Pohuwato Tojo Una-Una Taria Namniwe l Ke rtajati Moa 15 airports and 24 major seaports location 63% increase National budget for infrastructure, from IDR 178 T in 2014 to IDR 290 T (USD 24.2 B) in 2015. USD 141billion Investment opportunities in infrastructure offered to private sectors, 31% of total investment required in 20152019. Ke nyam Aboy Railway (km) Koroway Batu Seaport (location) 278 450 Port dwelling time (day) 6-7 3-4 Airport (location) 237 252 Flight on-time performance (%) 75 95 Broadband coverage (% of district) 82 100 210 275 23 32 24.2 19.2 Crossing dock (location) Market share of urban public transport (%) Logistic cost to GDP (%) Source: National Medium Term Development, Planning, 2015-2019, Bappenas, Dec 2014 & MoF, Feb 2015; prepared by The Investment Coordinating Board of the Republic of Indonesia 53 3. Improving of Licensing Investors submit and obtain permits exclusively at BKPM with time certainty & online monitoring. Investors FRONT OFFICE BACK OFFICE BKPM Desk BKPM Desk Ministry/ Institution Desk Ministry/ Institution Desk Ministry/ Institution Desk Ministry/ Institution Desk Ministry/ Institution Desk Ministry/ Institution Desk Ministry/ Institution Desk Ministry/ Institution Desk 1. Documents admission 2. Consultation Call Centre in Indonesia 0807-100BKPM Electronic Investment Information & License Service (SPIPISE) Online System Online System Licenses are processed Online Monitoring (Servi ce Performa nce Moni tori ng Da s hboa rd) Source: The Investment Coordinating Board of the Republic of Indonesia 54 22Ministries/institutions integrated in the investment one-stop service at BKPM Ministry of Energy & Mineral Resources 10 licenses related to power & geothermal Ministry of Environment & Forestry 35 b business licenses Ministry of Industry 6 business licenses Ministry of Agrarian and Spatial/National Land Agency Centralization of issuing land rights licenses for foreign direct investment Ministry of Defense Stationed Liaison Officer for consultation Ministry of Trade 5 licenses Ministry of Agriculture 5 business licenses Ministry of Health 9 licenses related pharmaceutical production, medical equipment production Ministry of Tourism 9 licenses related tourism and economy creative sectors Ministry of Communications and Information Technology 5 licenses related post management, telecommunication and broadcasting Ministry of Manpower 3 b business licenses and principal licenses Ministry of Public Works & Public Housing 7 business licenses Ministry of Maritime & Fishery 2 business licenses Ministry of Education & Culture 2 business licenses Ministry of Finance Import duty facility for machineries, goods, materials for production Ministry of Transportation 7 business licenses Ministry of Law & Human Rights 1 business licenses Indonesian National Police 6 business license in safeguarding business Supporting Institutions: Nat’l Food & Drugs Control Agency, Nat’l Crypto Agency, Nat’l Standardization Agency, Electricity Company Source: The Investment Coordinating Board of the Republic of Indonesia 55 Timeline of Investment One-Stop Service (PTSP) Covering all national-level licenses by 2015(Q2) & integrating all regions by January 2017. Launching Online Licensing at BKPM December 2014 January 2015 Tryout National PTSP (15 Jan) Launching National PTSP (26 Jan) February – December 2015 Regional PTSP 24 provinces – 120 districts 2016 Regional PTSP 34 provinces 561 districts Progress • 77 liaison officers from 22 ministries/institutions are assigned for faster handling and providing consultation. • 150 permits are processed at PTSP BKPM. • 1,198 business fields are served at PTSP BKPM. • Online application have been available for 15 licenses from BKPM and several ministries. Licenses from other ministries/institutions will follow. • Simplification of licensing process is in progress. Source: The Investment Coordinating Board of the Republic of Indonesia 56 4. Debottlenecking of Investment Realization 5 cases with total value IDR 14 trillion (USD 1.2billion) are solved. 94 cases with total value IDR 478 trillion (USD 39.8 billion) are under facilitation. BKPM as a Clearing House Coordinating with related governmental institutions authorized in licensing process and mediation between companies and related stakeholders Obstacle 22 cases of land issues 26 cases of licensing at any levels 2 cases of forests land use permit 3 cases of tax holiday facilities 17 cases of regulation at technical ministries 9 cases of regional government response 6 cases of raw materials issues 7 cases of electricity issues 5 cases of PPP scheme 1 case of copyright issue Location 14 Wes t Java 5 Central Java 4 Ea s t Kalimanta n 9 Banten 2 East Java 3 North Sumatera 5 South Kal ima ntan 1 Jambi 10 Jakarta 3 Central Kalimantan 1 South Suma tera 1 Lampung 2 Bali 3 North Sulawes i 7 West Papua 3 North Maluku 3 Pa pua 2 Wes t Kalimanta n 1 West Nusa Tenggara 2 Riau Islands 1 Central Sulawes i 2 Yogyakarta 3 South Sulawes i 3 Riau 1 Southeast Sulawes i 7 unlocated Sector 8 Fi s hery 4 Planta ti on 1 Furni ture i ndus try 3 Suga r i ndus try 13 Chemical a nd pha rma ceutical 12 El ectri city, gas and wa ter suppl y 11 Infra s tructure 7 Tra ns porta tion & telecommuni ca ti on 2 Textile indus try 2 Meta l , ma chi nery & el ectroni c industry 6 Trade and repair 4 Food indus try 4 Tourism 17 Mi ni ng 2 Real es ta te, i ndus trial area and offi ces 2 Other i ndus tri es Source: The Investment Coordinating Board of the Republic of Indonesia 57 5. Investment Incentives Provided Investment in Indonesia is regulated by Presidential Regulation No. 39 of 2014 on List of Business Fields Closed to Investment and Business Fields Open With Conditions to Investment. Basically, a foreign investor is able to invest for 100% FDI, as long as it goes in accordance with the provisions in Presidential Regulation No. 39 of 2014. Tax Holiday Tax Allowance Tariff Waiver in Importing Machine and Raw Material for Particular Industries 58 5.1. Tax Holiday Who are the eligible beneficiaries?? Pioneer industries eligible for obtaining tax holiday include: 1. Basic metal industries 2. Refinery and basic petrochemical industries 3. Machinery industries 4. Renewable resources industries 5. Telecommunication equipment industries. Requirements: Pioneer industries; Minimum amount of investment: IDR 1 trillion (± US$ 110 million); New company (established after August 15th, 2010; 10% (ten percent) deposit of total investment. List of pioneering industries as intended above are specified into list of industries which defined by Directorate General of Industrial Development (Directorate General of Agro Based Industry, Directorate General of Leading High Technology Based Industry and the Directorate General of Manufacturing Based Industry). Incentives given: 5-10 years income tax exemption 50% income tax reduction for 2 (two) years. 59 5.2. Tax Allowance (1/2) Who are the eligible beneficiaries?? This incentive is given to new investment or expansion of industries as follows : I. Particular Industries II. Particular Industries in Particular Regions 1. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Food Industry (chocolate and sugar confectionery industry) Textile Industry (manufacture of fabric for industrial needs) Coke and Refined Petroleum Products Industry Chemicals and Chemical Products Industry Pharmaceuticals, Medicinal Chemical and Traditional Medicine Products Industry Rubber and Plastics Products Industry Basic Metal Industry Fabricated Metal Products, Except Machinery and Equipment Industry Computer, Electronic and Optical Products Industry Electrical Equipment Industry Machinery and Equipment Industry Motor Vehicles, Trailers, and Semi trailers Industry Other Transport EquipmentIndustry Repair and Maintenance of Machinery and Equipment 2. 3. 4. 5. 6. 7. 8. 9. Food Industry (processing and preserving of canned fruit and vegetables industry, margarine industry, coconut cooking oil industry, sugar industry, etc) Textile Industry (preparation of textile fiber industry, carpets and rugs industry, and non woven industry) Leather and Product Leather and Footwear Industry Paper and Paper Product Industry Chemicals and Chemical Products Industry Non Metal Mineral Goods Industry Other Tranportation Eqipment Industry (only in East Java, Kalimantan, Sulawesi, Maluku, Papua, West and East Nusa Tenggara) Repair and Maintenance of Machinery and Equipment (only in East Java, Kalimantan, Sulawesi, Maluku, Papua, West and East Nusa Tenggara) Treatment of waste 60 5.2. Tax Allowance (2/2) Requirements: Incentives Given: 1. 1. 30% reduction on net (distributed in 6 years). 2. Accelerated depreciation and amortization 3. Income tax of 10% or lower for dividends paid to offshore taxpayers 4. Loss carry forward of 5-10 years depending on following terms: • + 1 year in a bonded industry zone • + 1 year for employing at least 500 Indonesian workers for five consecutive years • + 1 year for investing at least IDR 10 billion spending on economic and social infrastructure in its business area • + 1 year for spending of at least 5% of investment within 5 years on R & D • + 1 year for utilizing minimum 70% domestic raw material on component in years. 2. To companies established after the enactment of PP 52/2011 (after 22nd December 2011) Fulfill the requirements in the Appendix I or Appendix II of PP 52/2011 To companies established before the enactment of PP 52/2011 (before 22nd December 2011) Fulfill the requirements in the Appendix I or Appendix II of PP 52/2011 Minimum investment: IDR 1 trillion (± US$ 110 million); Not yet reach commercial production at the enactment of PP 52/2011 income of investment 61 5.3. Exemption of Import Duty on Imported Machines/ Goods /Materials This incentive is set in Minister Of Finance Regulation No. 76/2012 on Amendment to Minister Of Finance Regulation No. 176/2009 on the Exemption of Import Duty on Imported Machines, as well as Goods and Materials for the Building or Development of Industries in the Framework of Investment. import of machines, goods and materials for the building or development of industries exemption of import duties. a. have not been produced domestically; b. have been produced domestically but they have not met the required specifications; or c. have been produce domestically but their amount has not met industrial needs Incentives provided for the Building/Expansion of Industries: Import duty exemption for 2 years Import period can be extended according to the period of time for the building/development of industries as contained in the import approval 62 Indonesian Expectation • Encouraging Japanese companies to invest in Indonesia especially in 14 manufacturing industrial estates, especially in industries as follows : (a) Mining processing; (b) Agro based industry; (c) Construction machineries and heavy equipment; and (d) Petroleum, gas and electric power; • Japanese investors can build partnership with Indonesian company; • The targeted market is not only Indonesian domestic market but also export market. 63 どうもありがとうございます Director General for Industrial Region Development, Ministry of Industry Imam Haryono, Ph.D., mobile : +62 812 9991444 email : [email protected] 64
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