POTENTIAL, OPPORTUNITY & INVESTMENT POLICY IN EAST KALIMANTAN PROVINCE MAP OF INDONESIA MAP OF KALIMANTAN Nunukan Tana Tidung MalinauTarakan Tanjung Selor Tanjung Redeb Sengata Sendawar Bontang Tenggarong Samarinda Balikpapan Penajam Tanah Grogot MAP OF EAST KALIMANTAN 1. NUNUKAN 2. MALINAU 3. KUTAI BARAT 4. BULUNGAN 5. BERAU 6. KUTAI TIMUR 7. KUTAI KARTANEGARA 8. Penajam PASER UTARA 9. PASIR 10. TANA TIDUNG Nunukan Tana Tidung Tarakan Malinau Tanjung Selor Tanjung Redeb Sengata Bontang Sendawar Tenggarong Samarinda Penajam Tanah Grogot 1. 2. 3. 4. BALIKPAPAN SAMARINDA BONTANG TARAKAN DISTRICTS VILLAGES Number of Population Density : 136 : 1.410 : 3.690.520 people (2011) : 18,88 people/km2 Balikpapan Consist of : - Land : 19.695.876 Ha - Sea (limit 4-12 Mil): 2.102.721 Ha East Kalimantan ‘s Economic Condition Indicator 2005 2006 2007 2008 2009 2010 2011 2012 180,29 199,59 212,10 315,22 285,59 321,90 390,63 419,10 80,96 93,81 128,12 91,56 104,45 121,27 143,94 2,99 2,82 1,23 4,82 2,32 5,10 4,08 3,98 Without Oil & Gas 5,84 7,54 9,56 6,13 6,36 11,78 12,03 11,31 Per Capita 24,10 Income (IDR Million) 25,90 28,32 36,69 32,10 35,07 41,35 44,93 5,60 6,35 7,28 4,83 GRDP (IDR Trillion) With Oil & Gas Without Oil & Gas 67,44 Economic Growth With Oil & Gas Inflation Rate Poverty Rate 8,53 7,86 7,66 6,77 6,68 Unemployment Rate 11,11 10,83 10,10 9,84 8,90 889.654 955.000 1.002.000 1.084.000 1.177.000 Minimum Regional Wage 600.000 701.640 795.000 (IDR) Note : Minimum Regional Wage for 2013 has been defined of IDR 1.762.073 FORESTRY Potentials area for Timber Estate (HTI) at the present time: 1,200,000 ha, with total production of 204.989.756 m3 (2011) INVESTMENT OPPORTUNITY : ITEMS LOCATION / REGENCY Timber Berau, Bulungan, Nunukan, Estate Malinau, Kutai Kartanegara and (pulp and East Kutai. paper, medium density fibre board) Timber estate’s products such as pulp, paper, and medium density fibre (MDF) board were distributed to domestic market and exported to China, Japan, Singapore, and some European countries. OIL PALM PLANTATION There are 49 CPO factories that operated in East Kalimantan With total capacity of 2.360 tons fresh fruit bunches/hour Total Permitted Area Realization : 3,8 million ha : 975.612,11 ha CPO Potential Downstream Products: 400 Harga adde d v alue (%) CPO 350 Cooking Oil Glycerin 300 Margarine 250 Metil ester 200 Fatty alcohol Surfactant 150 340 400 500 500 650 900 1600 added value (%) 18 47 47 91 165 371 100 50 0 Cooking Glycerin Margarine Metil ester Fatty Surfactant Oil alcohol COAL MINING Coal Reserve in Regencies/cities (status 2012) NO 1 2 3 4 5 6 7 8 9 10 Location SAMARINDA KUTAI KARTANEGARA PANAJAM PASER UTARA PASER KUTAI BARAT KUTAI TIMUR BERAU BULUNGAN NUNUKAN MALINAU total Reserve (Ton) 275.010.550 2.000.040.517 307.793 745.163.040 204.287.116 4.231.946.705 395.332.484 576.336.224 30.482.845 54.550.800 8.513.150.281 There are 1.377 mining companies that operated in East Kalimantan, with total area more than 4,4 million hectares. Potential downstream product; Coal to Liquid (CTL) East Kalimantan has a huge amount of low calorie coal that can be developed as CTL. CTL is a new variant of alternative fuel, especially for transport and industrial needs. AGRICULTURE Potential downstream product; Elephant Cassava (manihot esculenta ?) Elephant cassava can be developed into tapioca fluor and ethanol. Production in 2011 reached of 91.858 ton, from total area of 5.214 hectares. Investor can use “nucleus-plasma” model, where local farmer can be participate actively. Potential market : Korea, Japan, and China ITEMS LOCATION / REGENCY Cassava East Kutai, West Kutai, & Kutai Kartanegra Paddy Paser, PPU, Nunukan, Malinau, East Kutai, Kutai Kartanegara, Berau Soybean Kutai Kartanegara Fruits PPU, Kutai Kartanegara, Samarinda Vegetables Kutai Kartanegara, Samarinda FISHERY AND MARINE BASE Potentials : → Brackish Fish Farming : 91,380 Ha → General Waters (river, lake and swamp) : 2.77 Million Ha → Sea : 98 million sq. km and Coastline : 1,185 Km INVESTMENT OPPORTUNITY : ITEMS LOCATION / REGENCY Shrimp, Crab and Lobster Kutai Kartanegara, Balikpapan, Bulungan, Tarakan. Marine Cultivations (seaweed) East Kutai and Bontang Fish (snapper, red snapper, tuna, shark, abalone, grouper) Balikpapan, Bontang, Berau, Nunukan and Tarakan. Investment Policy in East Kalimantan • Regulation of Head Of Indonesia Investment Coordinating Board of no. 5/2013 on Guidelines and Procedures of Investment ‘s Permit and non Permit Application • Tax Holiday 5 priority sectors; basic metal, oil refinery/basic organic chemical from natural gas/oil, industrial machinery, renewable resources industry, and telecommunication equipment industry. Minimum investment ; IDR 1 trillion, with minimum deposit 10% in Indonesian Banks. Tax holiday for 5-10 years • Tax Allowance Nett income reduction up to 30% from total investment, defined for 6 years (5% per year) Loss compentation extended from 5 years up to 10 years. • One Stop Service for Investment Permittance Application in Province and 14 Regencies/cities Regional Investment & Permittance Board of East Kalimantan Jl. Basuki Rahmat no. 56, Samarinda 75117 Ph. +62 541-743235, Fax. +62 541-736446 http:// www.bppmd.kaltimprov.go.id