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
V
IN
T
S
E
M
T
N
E
P
O
P
T
R
O
U
IT
N
IE
S
S
D
U
T
Y
T
E
,W
S
F
,C
T
O
E
R
T
N
A
R
H
C
L
O
R
P
D
N
A
V
C
IN
U
O
S
T
F
O
K
H
E
IM
L
A
T
N
A
E
T
S
A
K
L
A
IM
A
A
T
N
N
M
C
R
A
H
,2
0
5
A
N
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
i
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
PT.PCII
ii
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
PT.PCII
iii
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
PT.PCII
iv
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.
PT. PCII
-1-
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
PT. PCII
-2-
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
-3-
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
-4-
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.
PT. PCII
-5-
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.
PT. PCII
-6-
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.
PT. PCII
-7-
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
-9-
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
- 10 -
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
- 11 -
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;
ƒ Sepinggan International Airport in Balikpapan is managed by PT. Angkasa Pura
(The State Company).
ƒ 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
- 12 -
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
PT. PCII
- 13 -
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
- 14 -
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
- 15 -
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
- 17 -
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
PT. PCII
- 18 -
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
PT. PCII
- 19 -
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.
PT. PCII
- 20 -
EXECUTIVE SUMMARY for East Kalimantan
Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM – JICA
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
PT. PCII
Infrastructure
Transportation
- 21 -
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.
PT. PCII
- 22 -
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).
PT. PCII
- 23 -
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
PT. PCII
- 24 -
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.
PT. PCII
- 25 -
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.
PT. PCII
- 26 -
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
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.
PT. PCII
- 27 -
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
PT. PCII
- 28 -
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).
6
PT. PCII
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
- 29 -
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
PT. PCII
- 30 -
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
PT. PCII
- 31 -
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).
PT. PCII
- 32 -
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
PT. PCII
- 33 -
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
PT. PCII
- 34 -
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).
PT. PCII
- 35 -
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.
PT. PCII
- 36 -
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.
4
PT. PCII
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
- 37 -
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
- 38 -
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
- 39 -
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
- 40 -
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
- 41 -
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
- 42 -
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
- 43 -
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
- 44 -
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
- 45 -
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
- 46 -
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.
- 47 -
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
- 48 -
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.
- 49 -
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
- 50 -
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
- 51 -
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.
- 52 -
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.
- 53 -
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.
- 54 -
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
- 55 -
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
- 56 -
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
- 57 -
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
- 58 -
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