THE DEVELOPMENT OF MANUFACTURING

INDUSTRIAL ESTATE IN INDONESIA

Presented by: Imam Haryono, Ph.D.
Director General for Industrial Region Development, Ministry of Industry

“Expand Your Opportunities in Remarkable Indonesia”

Presented on Indonesia Investment Seminar

ASEAN-Japan Centre – The Indonesian Embassy in Tokyo

Tokyo, March 31, 2015

 TOPICS
I. INDONESIA-JAPAN ECONOMIC RELATIONSHIP

II. REMARKABLE INDONESIA

III. INDONESIA’S ECONOMIC CONDITION

IV. INDONESIA’S MANUFACTURING INDUSTRY

V. DEVELOPMENT OF THE MANUFACTURING INDUSTRIAL

ESTATE

VI. ENHANCE INDONESIA’S INVESTMENT CLIMATE

2
I. INDONESIA-JAPAN ECONOMIC RELATIONSHIP

3
 1. Trade Balance Indonesia-Japan
Value : Thousand USD
Growth Jan-Mar Change (%)
Description 2009 2010 2011 2012 2013 (%) 2009-
2013 2014 2014/2013
2013
TOTAL TRADE 28.418.459,20 42.747.614,40 53.151.308,40 52.902.939,30 46.370.847,00 12,66 11.571.873,59 11.751.546,70 1,55

INDUSTRY 16.794.339,09 26.862.659,08 31.811.106,09 34.442.107,88 30.108.562,77 15,2 7.482.219,29 8.250.777,00 10,27

NON INDUSTRY 11.624.120,11 15.884.955,32 21.340.202,31 18.460.831,42 16.262.284,23 8,6 4.089.654,30 3.500.769,71 -14,40
EXPORT 18.574.730,40 25.781.813,60 33.714.696,10 30.135.107,70 27.086.258,80 9,53 6.911.878,11 6.135.922,82 -11,23

INDUSTRY 7.034.537,99 10.020.127,35 12.577.409,97 11.794.260,55 11.112.334,28 11,4 2.842.000,23 2.669.670,47 -6,06

NON INDUSTRY 11.540.192,41 15.761.686,25 21.137.286,13 18.340.847,15 15.973.924,52 8,3 4.069.877,88 3.466.252,35 -14,83
IMPORT 9.843.728,80 16.965.800,80 19.436.612,20 22.767.831,70 19.284.588,20 17,81 4.659.995,49 5.615.623,89 20,51

INDUSTRY 9.759.801,10 16.842.531,73 19.233.696,12 22.647.847,34 18.996.228,49 17,7 4.640.219,07 5.581.106,53 20,28

NON INDUSTRY 83.927,70 123.269,07 202.916,08 119.984,36 288.359,71 27,7 19.776,42 34.517,36 74,54
TRADE BALANCE 8.731.001,70 8.816.012,90 14.278.083,90 7.367.276,00 7.801.670,50 -3,97 6.281.293,80 4.791.135,10 -23,72
INDUSTRY -2.725.263,11 -6.822.404,38 -6.656.286,16 -10.853.586,79 -7.883.894,22 0 -1.798.218,84 -2.911.436,06 -61,91

NON INDUSTRY 11.456.264,81 15.638.417,28 20.934.370,06 18.220.862,79 15.685.564,72 8,1 4.050.101,46 3.431.734,99 -15,27

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

4
 2. Japanese investment in Indonesia
compared to some Asian countries
(third quarter 2014 – USD Million)

Singapore,
4,899.5

Rest of World,
11,906.6 Japan, 2,041.3 Malaysia,
983.9
South Korea,
752.0
Hong Kong
(SAR), 498.9
People's
Republic of
Taiwan, 107.6 Thailand, 226.6 China, 328.7
Source: BKPM; processed by Ministry of Industry 5
 3. Japanese Investment in Indonesia among
Japanese Investment in South-East Asia
25

20

15
USD Billion

10

0
2005 2006 2007 2008 2009 2010 2011 2012 2013 Q3
2014
Singapore Thailand Indonesia Malaysia Philipines Vietnam

Source: JETRO; modified by Ministry of Industry 6

 4. Japanese Investment in Indonesia by Sector

5.0

4.0

3.0
USD Millions

2.0

1.0

0.0
2010 2011 2012 2013 2014
Primary Secondary Tertiery
Tertiary
Source: BKPM; modified by Ministry of Industry

Secondary Sector (Manufacturing Industry) is the main sector for Japanese investor
7
5. Japanese Investment in Manufacturing Industry
(third quarter 2014 – USD Million)

Other Industry, Food Industry, Paper and Textile

16,537.0 135,368.2 Printing Industry,
Industry, 42,914.2
63,180.1

Chemical and
Motor Vehicles Pharmaceutical
& Other Industry,
Transport Equip. Metal, 111,875.5
Industry, Rubber and
Machinery &
880,655.0 Plastic Industry,
Electronic
97,704.6
Industry,
384,551.2

Source: BKPM; modified by Ministry of Industry 8

II. REMARKABLE INDONESIA

9
1. Country Snapshot: The Biggest Archipelago
INDONESIA
GDP Size US$ 878.0 Bi Land Area 1,904,443 sq km

GDP percapita US$ 3,508 Sea Area 3,116,163 sq km

Total Area 5,020,606 sq km

Coastal Line 81,000 km

Population 251 Million people (4th biggest population)

Main Towns Population GDP Share GDP/Capita

(‘000) (%) (US$ ‘000)
Jakarta (Capital) 9,558 Jakarta (Capital) 16.3 9.9
Surabaya 2,584 East Java 14.7 2.3
Bandung 2,393 West Java 14.3 1.7
Semarang 1,553 Central Java 8.5 1.5
Medan 2,109 North Sumatera 5.4 2.3 The rising population share of Indonesia’s middle class (% of Pop)
Samarinda 791 East Kalimantan 6,2 10.0
Makassar 1,339 South Sulawesi 2.3 1.6
2003 2010
Languange Indonesian (Bahasa Indonesia)
As well as some 7500 other regional
37.7% 56.5%
languanges and dialects.
Source: World Bank
Source: various

10
2. Strategic Location: Gateway to ASEAN Market

Moscow (11 hrs)

London Berlin (15 hrs) Tokyo (7 hrs)

New York (21 hrs) 15hrs 30mnt
Beijing (9hrs)
Dubai (8 hrs)
New Delhi (8 hrs)
Singapore (1hr 42 min)

Jakarta
Ria De Janeiro (24hrs) Darwin (3hrs 20mnt)
Johannesburg (14 hrs)
Sydney (6hrs 50mnt)

Melbourne (6hrs 30mnt)

Strategic Location and Expanding Global Influence

Indonesia lies at the intersection of the Pacific Ocean, along the Malacca Straits and the
Indian Ocean. Over half of all international shipping goes through Indonesian waters.

11
3. Natural Resources: Need More Value Added (1/2)
 Indonesia is a major player in the global coal market
 The world’s second largest thermal coal exporting country, third largest
Coal exporter of steaming coal
 Production of around 385 million tonnnes of 2013 and 28,978 million
tonnes proved reserves of coal

 Around 150.7 trillion cubic feet of proven natural gas as at the end of
Natural Gas 2012 and is the single largest holder of proven natural gas reserves in
the Asia Pacific region

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

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

Energy of power generation potential

Others
 Palm oil, cocoa, and other minerals

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

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

12
3. Natural Resources: Need More Value Added (2/2)

World
No Commodity Production Location
Rank
1 Crude Palm Oil 21.2 million tons (2013) Sumatera, Kalimantan, 1st
Sulawesi, Papua.
2 Tin 63 thousand metric tons Sumatera 2nd
(2013)
3 Rubber 3.1 million tons (2013) Sumatera, Kalimantan 2nd

4 Cocoa 740 thousand tons (2013) Sulawesi, Sumatera, Java, 2nd

Kalimantan, East Nusa
Tenggara
5 Copper 868 thousand metric tons Papua, Maluku, Nusa 5th
(2011) Tenggara
6 Nickel 189 thousand metric tons Sulawesi, Sumatera, 2nd
(2011) Maluku, Papua
7 Gold 105 metric tons (2011) Kalimantan, Sumatera, 7th
Maluku, Papua

Source: BKPM, FAO, US Geological Survey, 2013

13
III. INDONESIA’S ECONOMIC CONDITION

14
1. Indonesian Economic Indicator

NO INDICATOR 2009 2010 2011 2012 2013 2014

Growth of Gross Domestic

1 4.63 % 6.20 % 6.46 % 6.23% 5.8% 5.1%
Income (%)

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

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

Foreign Exchange Reserves

4 66.10 96.20 110.12 112.78 99.4 111.9
(USD Billion)

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

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

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

15
15
2. Indonesian Economic Indicator

253,0 244,7
265,4 9,66% 9,35% 1. Agriculture, Livestock, Forestry and Fishery
472,6 10,14%
327,6 2.Mining dan Quarrying
18,05%
12,51%
3. Manufacturing Industry
192,6
172,0 7,36% 4. Electricity, Gas and Watersupply
6,57%
5. Construction

670,1 6. Trade, Hotel and Restaurant

25,59%
7. Transportation and Communication
20,1
0,77% 8. Financial, Ownership and Business Services

9. Services

16
16
3.B.Huge Size of Domestic Market
Potencies
(the growing consumption)
Domestic consumption contribute around 56.7% of economic growth
2014:
253 Million of
Population

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

o Middle Class Population : ± 80 Mio
 141 Mio in 2020.
2025:
o Population Growth : 1% per year 320 Million of
o Energy Demand Growth : 6% per Population
year.
o Around 60 percent of the population
are in the age of productive period in
2014.
o It will be increased to 70 percent of
the population in 2030. 17
17
4. Investment Target (1/2)
Investment Strategic Plan 2015-2019
IDR 3,519 trillion total investment
targeted
i n 2015-2019

100  17.7%
0
900
800
FDI DDI

 15%
 15.9%
115 % increase from 2010-2014 period
Inves tment Target (IDR trillion)

38.9% (IDR 1,632.8 trillion)

 14.5%
700 37.6%

15.1%
 12.2% 36.3%
600
500
35.0% average growth
33.8% ta rgeted i n 2015-2019 period
400 61.1%
62.4%
300 63.7%
66.2% 65.0%
200
100
0
FDI
2015
2015

343.7
2016
2016

386.4
2017
Ax2017 le
is Tit429.0
2018
2018

494.7
2019
2019

570.0
FDI
2015-2019 63.6 %averageshare
of tota l i nves tment ta rget
i n 2015-2019
DDI 175.8 208.4 249.8 297.8 363.0
TOTAL 519.5 594.8 678.8 792.5 933.0

Indonesia’s investment Target, 2015-2019

Excl. Financial Sectors and Upstream Oil and Gas,
DDI
2015-2019 36.4 % averageshare
of total l i investment target
in IDR Trillion In 2015-2019

Source: The Investment Coordinating Board of the Republic of Indonesia

18
4. Investment Target (2/2)
Based on Capital expenditure (IDR trillion) in2010-2014, not including financial, oil & gas sectors

Tertiary Secondary Primary 1000 Outside Java Java

1000

900
Total Group of Sectors 900 Total Location
Primary Sector: 15% 14.1 Java : 45%
800 Secondary Sector: 54% 800 Outs i de Java : 55%
700 Terti a ry Sector: 31% 15.1
700 38.0

600 15.9 42.6

600
55.5
16.4
500
17.0% 54.5 500 47.2
53.5%
400 50.9
400
52.7 54.4
300 51.5%
300 62.0
200
57.4
200 52.8
30.4%
100 31.5% 30.9% 30.6%
30.4% 49.1
45.6
100
0
2015
2015 2016
2016 2017
2017 2018
2018 2019
2019 0
Axis Title
2015
2015 2016
2016 2017
2017 2018
2018 2019
2019
Primary 88.4 97.6 107.9 119.3 131.8
Java 282.6 302.6 317.4 337.6 354.5
Secondary 267.5 313.5 363.2 431.9 517.8
Outside Java 236.9 292.2 361.4 454.9 578.5
Tertiary 163.6 183.7 207.7 241.3 283.4
TOTAL 519.5 594.8 678.8 792.5 933.0
TOTAL 519.5 594.8 678.8 792.5 933.0

Source: The Investment Coordinating Board of the Republic of Indonesia

19
IV. INDONESIA’S MANUFACTURING INDUSTRY

20
1. Growth of Manufacturing Industry

Manufacturing Sector Growth

8

5
Growth (%)

0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Economic Growth 5.04 5.69 5.49 6.34 6.01 4.63 6.22 6.48 6.26 5.74 5.06
Manufacturing Sector 7.51 5.89 5.25 5.16 4.05 2.56 5.1 6.73 6.4 6.12 5.34

Source: Statistics Indonesia

 The current performance of national industry is encouraging; the manufacturing

sector grew significantly by 6.12 % in 2013 and 5.34% in 2014, higher than the
GDP growth in the last four years.

21
2. Manufacturing Industry Growth by Sectors
Sectors 2009 2010 2011 2012 2013 2014
1 Food, Beverages, and
Tobacco 11.45 2.75 9.05 7.59 3.31 7.40

2 Textile, Leather Goods,

and Footwear 0.69 1.77 7.58 4.25 6.07 2.38

3 Wood Products and

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

4 Paper and Printed Goods 6.43 1.65 1.46 -4.74 4.53 6.23
5 Fertilizer, Chemical and
Rubber Products 1.67 4.70 3.94 10.48 2.60 1.28

6 Cement and Non Ferrous

Materials -0.49 2.33 7.16 7.82 3.00 1.58

7 Ferrous and Steel -3.94 2.39 13.18 5.86 7.04 4.22

8 Transportation,
Machinery and -2.78 10.41 6.83 7.06 10.53 6.03
Components
9 Other Products 3.25 3.05 1.85 -0.95 -0.54 9.32
Non Oil and Gas
Manufacturing Industry 2.56 5.10 6.73 6.40 6.12 5.34

Gross Domestic Product 4.63 6.22 6.48 6.26 5.74 5.06

Source: Statistics Indonesia

22
3. Projected Growth of Manufacturing Industry Indicators

No Indicators Unit 2014 2015 2020

1 Manufacturing sector growth % 5.7 6.8 8.5

Share of manufacturing sector GDP toward

2 % 20.8 21.2 24.9
national GDP

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

Million
4 Manufacturing sector workforce 14.88 15.44 18.44
people

Share of Manufacturing sector

5 % 13.7 14.1 15.7
employment toward total employment

Percentage of imported input goods

6 % 43.5 43.1 26.9
compared to manufacturing sector GDP

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

Source: Statistics Indonesia

23
 4. Law and Regulatory Framework (Law 3/2014 on Industrial Affairs)
OBJECTIVE OF INDUSTRIAL
DEVELOPMENT
Independent, competitive, and advanced
industry for the proseperity and welfare of
society. Supporting
Supporting Instruments Instruments
The Undertaking of Governmental
Matters In Industrial Affairs • National Industrial
• Licensing Commitee
• Investment in Industrial • Master Plan for National Industrial • Community Contribution
Sector Development
• Supervision and Control,
• Industrial Facility • National Industrial Policy
• Sanction
• Work Plan for National Industrial
Development

Empowerment of Measures for Safeguard

Industrial Resources Development of and
Development Infrastructure Industry
Salvaging of industry

• Industrial Standardization • Small and Medium Industry

• Human Resources Development • Industrial Safeguarding
• Natural Resources Utilization • Green Industry
• Development and Utilization of
• Industrial Infrastructure
• Strategic Industry
Measures
Industry Technology • National Industrial Information • The Industrial
• Increase in Domestic Products
• Development and Utilization of System
Creativity and Innovation Utilization (P3DN) Salvaging Measures
• Provision of Sources of Financing
• Industrial Estate • International Cooperation in
Industrial Sector

24
5. National Manufacturing Industry’s Structure

VISION & MISION

NATIONAL INDUSTRIAL DEVELOPMENT

Core Industry

Pharmaceutical, Textile and Energy and

Food Transportatio Electronics
Cosmetics and Footwear & Power
Processin n Equipment and ICT
g Industry Medical Devices Oher Equipment
Industry Industry
Industry Industries

Supporting Industry

Supporting Industry&
Capital Goods Industry Component Industry
accessories

Upstream Industry

Upstream Coal, Gas and

Upstream Agro Industry Basic metal industries
Mineral Processing Industry

Resources

Natural Resources Human Resources Technology, Innovation &

Creativity
Pre-requisites

Infrastructure Policy & Regulation Financing

25
6. Priority Industries

 Food processing industries

 Pharmacy, cosmetic, and medical
Manufacturing Industry apparatus industries
 Textile, leather, footwear, and others
industries
 Transportation equipment industries
 Electronic and ICT industries
 Power plant equipment and machinary
industries

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

 Agro-based upstream industries

 Basic metal industries
 Petrochemical and coal-based chemical
industries

26
7. National Manufacturing Industry’s Development Policy

1 Fiscal incentives Provision 9 Acceleration of Technological Transfer 16 Development of business intelligence

and market feasibility
10 Risk Underwriting for the utilization of
Industrial Technology 17 Enhancement of linkages among big
2 Total Equity Participation by
industries and small medium industries
State
11 Development and Application of 18 Establishment and strengthening
3 Domestic Industrial resilience Standardization also strengthening the research and development institute as
(duty, custom, product standardization of infrastructure well as industrial education and training
standards)
12 Enhancement of the coordination 19 Development and application of
4 Underwriting of energy supply, between central and regional standardization (Indonesian National
raw material, and other government in terms of industrial Standards, technical specification, code
industrial resources. development of practice, green industry standards and
5 Facilitate of land distribution and 13 Development and Strengthening of standards of industrial estates ) also
supporting infrastructure regional resources based industry strengthening standardization of
include regional core competence and infrastructure
6 Application of Green Industry
provinvial favoured industry 20 Acceleration for development of
14 Industrial Restructuring by avoiding industrial region
7 Arrangement of trade system
setting imported product monopolistic practices and any market 21 Affirmative policy for small and medium
distortion industry
8 Increasing of Domestic Products
Utilization 15 Promotion enhancement, domination 22 Strengthening the institutionals of
and adoption of industrial technology
promotion of small and medium
industry

27
8. Estimated Investment Needs for Manufacturing Industry

2035
2025 4,150
2020
1,000
618
2015
270
2014
*IDR TRILLION
210 (1 US $ + 13.000 IDR)

* Source: Ministry of Industry

28
V. DEVELOPMENT OF THE MANUFACTURING
INDUSTRIAL ESTATE

29
1. Regional Development In-equality Between Java and Outside Java

WEST INDONESIA EAST INDONESIA

WIDE AREA : 32,48 % WIDE AREA : 67,52 %
 POPULATION : 81,32 %  POPULATION : 18,68 %
 N. OF INDUSTRY : 95,56 % N. OF INDUSTRY : 4,44 %

JAVA ISLAND REGIONAL

WIDE AREA : 6,8 %
 POPULATION : 57,5 % INEQUALITY
 N.OF INDUSTRY : 90 %
30
2. The Direction of Development Policy of Manufacturing
Industrial Estates

OUTSIDE JAVA
 Natural resource based industrial estates (renewable and non-
renewable)
 Enhance the efficiency of logistic system
 Industrial estates as main driver of new economic growth centers

JAVA
 High technology based industrial estates
 Labor-intensive industrial estates
 Industrial Estates oriented to consumer goods industry

31
3. Development of 14 Industrial Estates Outside Java

Landak Industrial Estate Palu Industrial Estate Teluk Bitung

Kuala Tanjung Buli Industrial Estate
Industrial Estate
Industrial Estate Rubber Industry, CPO Rattan, Rubber, Cocoa (agro), Agro and Logistic Smelter, Ferronickel,
Aluminum Industry, CPO CPO Processing and Smelter industries Stainless steel and
Industries
Processing Industry Industry downstream stainless steel
Batu Licin Industrial
Ketapang Industrial
Estate
Estate Teluk Bintuni
Steel Industry Industrial Estate
Alumina Industries Oil& Gas, Fertilizer
Industries

Sei Mangkei Industrial

Estate
CPO Processing Industry
Morowali Industrial
Tanggamus Industrial
Estate
Estate
Smelter, Ferronickel,
Maritime and Logistic Stainless steel and
Industries downstream stainless steel

Jorong Bantaeng Konawe

Industrial Estate Industrial Estate Industrial Estate
Smelter, Ferronickel, Smelter, Ferronickel,
Steel Industry, CPO
Stainless steel and Stainless steel and
Processing Industry downstream stainless steel downstream stainless steel

32
 14 Industrial Estates
No. Industrial Estate Name Area Work Force Anchor Industry Focus of Industry
(Ha) (Persons)
1 Teluk Bintuni, West Papua 2,112 51,500 PT. Pupuk Indonesia Fertilizer & Petrochemical Industries

2 Buli, Halmahera Timur, 300 10,000 PT. Feni Haltim Ferronickel Industry
North Maluku
3 Bitung, North Sulawesi 534 90,000 PT. Pelindo Logistic & Agro Industries
4 Konawe, South-East 5,500 18,200 Jiangsu Delong Nickel Ferronickel Industry
Sulawesi Industry Co. Ltd
5 Morowali, Central Sulawesi 1,200 80,000 PT. Sulawesi Mining Ferronickel Industry
Investment
6 Palu, Central Sulawesi 1,500 165,000 PT. Bangun Palu Sulteng Rattan base, Agro, Multivarious
Industries
7 Bantaeng, South Sulawesi 3,000 163,200 PT. Hwadi dan Bantaeng Ferronickel Industry
Sigma Energi
8 Ketapang, West Kalimantan 1,000 10,000 PT. Well Harvest Winning Aluminum based industry
Alumina Refinery
9 Landak, West Kalimantan 306 33,600 Rubber Processing Industry
10 Batulicin, Tanah Bumbu, 530 10,000 PT. Meratus Jaya Iron and Steel Industry
South Kalimantan Steel
11 Tanggamus, Lampung 3,500 104,800 PT. Repindo Jagat Raya Maritime Industry
12 Kuala Tanjung, Batu Bara, 1,000 113,200 PT. Inalum Aluminum based industry
North Sumatera
13 Sei Mangkei, Simalungun, 2,002 83,300 PT. Unilever Oleo chemical CPO Processing Industry
North Sumatera Indonesia
14 Jorong, South Kalimantan 6,370 30,000 PT. Semeru Surya, PT Delta Steel Industry & Agro Industries
Prima 33
 3.1. Teluk Bintuni Industrial Estate
Profile 1. Onar Baru Villages, District of Sumuri, Teluk Bintuni
Regency of West Papua
2. Land Areas ±2112 Ha
3. Base of Industries : Fertilizer and Petrochemical
4. Value of Investments ± Rp 31,4 Trillion
5. Managed By PT Pupuk Indonesia
Progress 1. Land Status is “APL” which means it is NOT on the
status of PROTECTED FOREST and can be used for
other purposes, such as for industry.
2. Metering of the land has already undertaken by BPN
(National Land Agency) of West Papua Province;
3. Developing Government Regulation on stipulating
indigenous people’s land right
Actions 1. Facilitating to solve indigenous people’s land rights
2. Facilitating of relocating 88 local householders
3. Facilitating to build road access to industrial estate ±
LABOR
PRODUCT 30 Km
DIRECT INDIRECT SUPPORTER
4. Facilitating to build the Power Plant ±200 MW
5. Facilitating to build the standard water installation
polypropylene 3.000 4.500 15.000
±2000 L/second
Urea Fertilizer 4.000 5.000 20.000 6. Facilitating on assigning industrial estate
administrator
Amount 7.000 9.500 35.000
7. Facilitating to map out the detailed spatial plan
Total 51.500 outside industrial estate. 34
 3.2. Bitung Industrial Estate
Profile 1. Tanjung Merah Bitung Village
2. Land Area ±534 Ha
3. Base of Industries: Coconut, Fishery and Logistics
4. Value of Investment ± Rp 2 Trillion
5. Managed By PT Sulut Membangun
Progress 1. Land Status of 92,6 Ha is Ex HGU (Business
Purposed Land Right ) owned by North Sulawesi
and on going process to become HPL (Land
Management Right) in National State Agency
(BPN).
2. On going process on the development of Toll
Highway from Manado to Bitung ±43 Km
provided by the Central Government
3. Providing Power Plant ±150 MW
4. Accelerating reclamation process, creating ±247
Ha of new land.
Actions 1. Land Acquisition ±100 Ha
2. Build axis road to industrial estate 5 km
3. Facilitating on preparing industrial human resources
development
4. Facilitating and coordinating infrastructures
Employment : 90.000 development outside industrial estate
5. Facilitating to build the standard water installation
Workers ±1200 L/second
6. Facilitating to map out the detailed spatial plan outside
industrial estate. 35
 3.3. Palu Industrial Estate
Profile 1. Tawaeli Sub District, City of Palu, Central Sulawesi
Province.
2. Land Area ±1500 Ha
3. Base of Industries: Rattan, Seaweed, Cocoa, and
Mineral
4. Value of Investment ± Rp 12,5 T
5. Managed By PT Bangun Palu Sulteng
Progress 1. Land Status 110 Ha has already owned by Palu
City Government
2. Construction development of rubber based
industry factory and essential oil factory
3. The axis road to the industrial estate has already
established.
4. Electrical System has already provided by
Por
t Of
Pan
Lo
Sulawesi Interconnection
gis
tolo tic
an Zo
ne
Actions 1. Land Acquisition ±100 Ha
2. Build road infrastructure inside industrial estate ( about
2 Km) and industrial estate technical services office
3. Facilitating on preparing industrial human resources
development
4. Facilitating and coordinating infrastructures
development outside industrial estate
Employment :165.000 5. Facilitating to build the standard water installation
Workers ±1500 L/second
6. Facilitating to map out the detailed spatial plan outside
industrial estate. 36
 3.4. Indonesia Morowali Industrial Estate
Profile 1. Bahodopi Sub District , Morowali Regency
2. Land Areas ±1200 Ha
3. Integrated Industrial Ferronickel, Stainless Steel and all the
down streaming related industries
4. Value of Investment ± Rp 49,7 Trillion
5. Managed By Tsinghang Industrial Morowali Industrial Park

Progress 1. Land Status 1200 Ha has already owned by TIMIP (the

industrial estate corporation)
2. Construction development of ferronickel factory Phase I
with capacity of 300.000 tons/year (progress up to 90%) and
Phase II with capacity of 600.000 tons/year the ground
breaking and basic construction has been established.
3. Build power plant 65x2 MW (with progress to 90%)
4. Development of sea port and air port are yet still on the
process of getting the licensing

Actions 1. Facilitating to build the standard water installation

16.500 L/second
2. Facilitating electrical transmission provision to the industrial
estates
3. Build polytechnic and Metal Based Mineral Innovation
Centre
4. Build 8 tower of dwelling for 1000 workers
Employment: 80.000 5. Build Hospital Type C
Workers 6. Facilitating to map out the detailed spatial plan outside
industrial estate.
7. Facilitating to build sea port and air port 37
 3.5. Halmahera Timur Industrial Estate

Profile 1. Buli Sub District, East Halmahera Residency

2. Land Area ±300 Ha
3. Integrated Industrial Ferronickel, Stainless Steel and
all the down streaming related industries
4. Value of Investment ± Rp 4,4 T
5. Managed By PT FeNi Haltim

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

Persero
2. Completion of sea port development which
integrated with industrial estate
3. Several industrial estate facilities has already been
built, such as: hostel, administrator office, and
oxygen plant
4. Request for Tax holiday from PT FeNi Haltim is still on
the discussion process in the Ministry of Finance’s
fiscal team
Actions 1. Facilitating to build the standard water installation
1.000 L/second
2. Build waste treatment and landfills facilities
3. Build axis road from sea port to industrial estate for
about 1 Km and to Town site about 2 Km
4. Facilitating on developing steamed powered electricity power
Employment: 10.000 plant 2x110 MW
Workers 5. Facilitating to map out the detailed spatial plan outside
industrial estate.

38
 3.6. Konawe Industrial Estate
Profile 1. Bondoiala and Kapoiala Sub District
2. Land Area ±5500 Ha
3. Integrated Industrial Ferronickel, Stainless Steel and
all the down streaming related industries
4. Value of Investment ± Rp 28,7 T
5. Managed By PT Konawe Putra Propertindo

Progress 1. Land clearing and basic construction has already been

undertaken. There are an on going process on the
development of several facilities such as: offices ,
mess , and the finishing phase of sea port .
2. Endorsement Legal Letter from the Governor of
Southeast Sulawesi and Head of Konawe Residency
has already been accepted
Actions 1. Facilitating on reviewing the Konawe Residency
Spatial Plans and Southeast Sulawesi Spatial Plans
2. Accelerating the process for Environmental Feasibility
Assessment of Industrial Estate in the Province
Environmental Committee Office.
3. Facilitating Sea Port License Recommendation from
the Governor
4. Facilitating to build power plant and for phase I should
provide 10 MW of electricity
Employment: 18.200 5. Facilitating to map out the detailed spatial plan
Workers outside industrial estate.

39
 3.7. Bantaeng Industrial Estate
Profile 1. Sub district Pajukukang Bantaeng Residency
2. Land Area ± 3000 Ha
3. Integrated Industrial Ferronickel, Stainless Steel and
all the down streaming related industries
4. Value of Investment ± Rp 24,4 T
5. Managed By kawasan PT Bantaeng Industrial Persada

Progress 1. Completion of the development of Industrial Estate’s

Masterplan dan Strategic Plan for area of 3000 ha.
2. The ground breaking of the development of Steamed
Powered Electricity Plant 2 X 300 MW has already
undertaken by PT Hwadi (China-Malaysia) and PT
Bantaeng Sigma Energi.
3. Land Clearing is already settled by PT Titan for
Ferronickel Industry for area of 300 Ha
Actions 1. Facilitating Environmental Feasibility Assessment in
Industrial Estate.
2. Facilitating to build sea port for industrial estate
3. Facilitating to build the standard water installation
for industrial estate
4. Facilitating to build a new road for traffic diversion
Employment: 163.200 from the old and high jam road
5. Facilitating to map out the detailed spatial plan
Workers outside industrial estate.

40
 3.8. Kuala Tanjung
KAWASAN INDUSTRIIndustrial Estate
TELUK BINTUNI
(North Sumatra)

Profile 1. Batubara Residency, North Sumatra

Province
2. Land Area ±1000Ha
3. Base of Industry : Alumina
4. Value of Investment ± Rp 4,5 T
5. Anchor Industry PT Inalum
Progress 1. To accelerate the finalization process of
presidential decree to form the
management board of industrial estate
2. Coordinating and accelerating the
infrastructures development and land
provision
Actions Infrastructure Development:
1.Build railroad from Bandar Tinggi to Kuala
Tanjung (22,15 km)
2.Road Systems:
Main Road (volume 97,125 m2)
Surrounding Road (volume 271,950 m2)

Employment:
± 113.239 Workers 41
 3.9. Sei Mangkei Industrial Estate
KAWASAN INDUSTRI BITUNG
(North Sumatra)
Profile 1. Located at Simalungun Residency
2. Land Areas ±2.002 Ha
3. Base of Industries : CPO Processing
4. Value of Investment ± Rp 9,5 T
5. Anchor Industry PT Unilever Olechemical
Indonesia

Progress 1. Management Board of Special Economic Zone

has already established (Presidential Decree
No. 40 / 2014)
2. Innovation Centre facility for Palm Oil has
already operated in the area
3. Has already have anchor industry inside the
estate (PT. Unilever Oleo chemical Indonesia)

Actions 1. Build railroad from KEK Sei Mangkei to Sepur

Simpang (2,9 Km)
2. Uplifting the function of existing railroad KA
Gunung Bayu - Perlanaan (4,15 km) to meet the
industrial standard
3. Facilitating the equipment for innovation center

Employment: ± 83.300 Workers

42
 3.10. Tanggamus
KAWASANIndustrial
INDUSTRI Estate
PALU
(Lampung)
Profile 1. Located at: Kota Agung Timur Sub District, Limau
Sub District and Cukuh Balak Sub District of
Tanggamus Residency
2. Land Areas ±3500 Ha
3. Base of Industry :Maritime
4. Value of Investment ± Rp 17,5 T
5. Anchor Industry PT Repindo Jagad Raya

Progress 1. anchor industry has already exist (PT. Repindo

Jagad Raya)
Actions 1. On going intensive discussion between Tanggamus
Residence Government, Pertamina, and Ministry of
Industry to revoke the land restriction for industrial estate
which is in accordance to National Land Agency Regulation
maximum should be 400 ha. PT Repindo (the administrator
of industrial estate) was requested by the stakeholder to
finish the business plan of the estate.
2. Enhancing /upgrading the existing road to Maritime
Industrial Estate (Width 8m, Length 10km).
3. Land Acquisition (In 2016).
4. Build Vocational Training Center Balai Latihan Kerja .
5. Build Power Plant (In 2016).
6. Build streetlight System
7. Upgrading the development of sea port inside industrial
estate (Initiated by Ministry of Transportation).
Employment: 8. Development of Steam-Powered Electricity Power Plan.
± 104.800 Workers
43
 3.11. Batulicin Industrial Estate
(South Kalimantan)
Profile 1. Located at Simpang Empat Sub district and
Karang Bintang Sub district of Tanah Bambu
Residency
2. Land Areas 530 Ha
3. Base of Industry : Steel
4. Value of Investment : Rp 2,12 Trillion
5. Anchor Industry PT Meratus Jaya Iron and Steel
Progress 1. Has already have Master plan and Strategic
Plan of industrial estate
2. Facilitating the Government of South
Kalimantan to manage the industrial estate
since it is owned by the South Kalimantan
Government (not by private sector)
3. Facilitating the Tanah Bambu Residency
Government to map out the detailed spatial
plan
Actions 1. Build dock with JT: 750 m , depth :22 m
2. Build Alternative road system (about 15) km
from outer ring road
3. Develop integrated Masterplan of the city,
industrial estate, sea port, air port, trade
center, residency, and tourism area
4. Shifting land status from Protected Forest Area
to be an area dedicated for industrial estate
(On going process since 2014)
Employment: 10.000 Workers
44
 3.12. Ketapang Industrial Estate
(West Kalimantan)
Profiles 1. Located at South Matan Hilir Sub
district , Ketapang Residency
2. Land Areas 1.000 Ha
3. Base of Industry : Alumina
4. Value of Investment: Rp 4 Trillion
5. Anchor Industry PT. Well Harvest
Winning Alumina Refinery
PENGGUNAAN LAHAN LUAS (Ha)
INDUSTRI

1. Facilitating Government of Ketapang

25,41
Progress
01 UMKM

Ke Pelabuhan
02 ANEKA INDUSTRI 61,44
13 KEMENTERIAN PERINDUSTRIAN
03 INDUSTRI SEDANG 101,63 DIREKTORAT JENDERAL PENGEMBANGAN PERWILAYAHAN INDUSTRI
04

Residency to adjust the Residency

12 04 INDUSTRI BESAR 270,58 DIREKTORAT PENGEMBANGAN FASILITASI KEINDUSTRIAN WILAYAH I

INFRASTRUKTUR KAWASAN PENGEMBANGAN KAWASAN INDUSTRI

Ja

KORIDOR KALIMANTAN
la

05 PEMADAM KEBAKARAN 5,93

n

(NUNUKAN, PANGKALANBUN DAN KETAPANG)

Spatial Plan
Pr

06 POWER STATION 10,70

op

LUAS (Ha)
in

PENGGUNAAN LAHAN 07 FUEL STATION 12,45 GAMBAR

si
(K

INDUSTRI 08 PERGUDANGAN 42,24 MASTER PLAN

e
tap

2. Facilitating anchor industry to

KAWASAN INDUSTRI PAGAR MENTIMUN
01 UMKM 04 25,4108 09 LIQUID STORAGE CENTER 10,12 KABUPATEN KETAPANG
an
g-

02 ANEKA INDUSTRI 61,44 10 PUSAT PENGEPAKAN 7,11 KETERANGAN

Ke

03 INDUSTRI SEDANG 101,63 11 PENGELOLAAN AIR BERSIH 11,27 BATAS WILAYAH PERENCANAAN
nd

JALAN PROPINSI

accelerate the development of

aw

04 INDUSTRI BESAR 270,58

06 12 PENGELOLAAN LIMBAH KERING 15,86 GARIS PANTAI
an

INFRASTRUKTUR KAWASAN 13 IPAL 17,23

ga

PENGGUNAAN LAHAN LUAS (Ha)

n)

05 PEMADAM KEBAKARAN 25
5,93 FASILITAS PENUNJANG INDUSTRI

industrial estate
03
01 UMKM 25,41
06 POWER STATION 10,70 14 PERUMAHAN 22,92 02 ANEKA INDUSTRI 61,44
02 15 2,94 03 INDUSTRI SEDANG 101,63
07 FUEL STATION 12,45 25 SARANA OLAH RAGA
04 INDUSTRI BESAR 270,58
1,19
3. Groundbreaking will be on
08 PERGUDANGAN 42,24 16 PARKIR ANGKUTAN KARYAWAN INFRASTRUKTUR KAWASAN
05 PEMADAM KEBAKARAN 5,93
01
17 SARANA PERIBADATAN 3,83
09 LIQUID
Selat STORAGE CENTER
Karimata 10,12 25 05
06 POWER STATION 10,70
18 AREA KOMERSIAL 21,69 07 FUEL STATION 12,45
10 PUSAT PENGEPAKAN 7,11 07 08 PERGUDANGAN 42,24

11
12
PENGELOLAAN AIR BERSIH
PENGELOLAAN LIMBAH KERING
11,27
15,86
01 25

21
19 23 KANTOR MANAJEMEN
20 22 MEDIA CENTER
21
20 24PERKANTORAN
2,52
2,16
13,68
09
10
11
12
LIQUID STORAGE CENTER
PUSAT PENGEPAKAN
PENGELOLAAN AIR BERSIH
PENGELOLAAN LIMBAH KERING
September 2015
10,12
7,11
11,27
15,86
13 IPAL 17,23 19 17,23
18 22 17 CENTER
TRADE 2,68
13 IPAL
25 FASILITAS PENUNJANG
FASILITAS PENUNJANG 15
16
6,04 22,92
23 CONVENTION
25 CENTER 14 PERUMAHAN
22,92
Actions
14 PERUMAHAN 14 15 SARANA OLAH RAGA 2,94

15
16
SARANA OLAH RAGA
PARKIR ANGKUTAN KARYAWAN
2,94
1,19
24
18
RUANG TERBUKA
25
14MEDICAL
HIJAU
08
TAMAN,
CENTER

09 MEDIAN,
10 JALUR
3,70

217,40
16
17
18
19
PARKIR ANGKUTAN KARYAWAN
SARANA PERIBADATAN
AREA KOMERSIAL
KANTOR MANAJEMEN
1. 1,19
3,83
21,69
2,52
Build sea port as an entry gate to the
17 SARANA PERIBADATAN 3,83 25 20 MEDIA CENTER 2,16
HIJAU JALAN, BUFER, KOLAM
18
19
AREA KOMERSIAL
KANTOR MANAJEMEN
21,69
2,52
01
JALAN DAN SALURAN
07

LUAS KAWASAN
03 INDUSTRI
117,12
1.009,90
21
22
23
24
PERKANTORAN
TRADE CENTER
CONVENTION CENTER
MEDICAL CENTER
13,68
2,68
6,04
3,70
estate for unloading the industrial
RUANG TERBUKA HIJAU
20 MEDIA CENTER 2,16
02
products
TAMAN, MEDIAN, JALUR 217,40
25
21 PERKANTORAN 13,68 11 HIJAU JALAN, BUFER, KOLAM
JALAN DAN SALURAN 117,12
22 TRADE CENTER 2,68 LUAS KAWASAN INDUSTRI 1.009,90
04
23 CONVENTION CENTER 6,04
24 MEDICAL CENTER
RUANG TERBUKA HIJAU
3,70

12
LUAS KAWASAN INDUSTRI = 1.000 Ha
(IZIN LOKASI PT. KETAPANG BANGUN SARANA)

SKALA 1 : 30.000
2. Enhancing/ Upgrading the province
TAMAN, MEDIAN, JALUR 217,40
13

road in the surrounding area

25 0 1.000 2.000 3.000 m
HIJAU JALAN, BUFER, KOLAM
SUMBER PETA
JALAN DAN SALURAN 117,12 1. Keputusan Bupati Ketapang No: 248/PEM/2013

LUAS KAWASAN INDUSTRI 1.009,90 2. Keputusan Bupati Ketapang No: 249/PEM/2013

3. Upgrading the access road from

industrial estate to the sea port.
Employment: 10.000 Workers
45
 3.13. Mandor Industrial Estate
(West Kalimantan)
Profiles 1. Mandor Sub District
2. Land Areas 306 Ha
3. Base of Industry: Rubber Processing
4. Value of Investment Rp 1,22 Trillion
KIM 5. Anchor Industry PT. Cakrawala Energi
KIM I Nusantara
II
POWER
STATION PENGELOLAAN
AIR
BERSIH

MEDIA
CENTER

INOVATION
CENTER
KANTOR
MANAJEMEN

PERKANTORAN
EXHIBITION
CENTER PERKANTORAN

Progress 1. Land Area 306 Ha (Owned by Residency

FUEL
STATION
AREA
KOMERSIAL

CONVENTION
CENTER
PARKIR PERDAGANGAN
ANGKUTAN

Government)
KARYAWAN

MEDICAL
CENTER SARANA
PERIBADATAN

PERUMAHAN

COMMUNITY
CENTER

PUSAT
PENGEPAKAN
07
PEMAKAMAN
2. Administrator for Industrial Estate has already
INDUSTRI
KECIL
MENENGAH
INDUSTRI
KECIL
MENENGAH
established
3. Coordinating the access road development from
Pontianak sea port to Industrial estate
4. Coordinating the acceleration of infrastructure
INDUSTRI
KARET

INDUSTRI
KARET

INDUSTRI
KARET

development inside the industrial estate, such as:

Power Plan, road, telecommunication, Waste
Treatment System.
ANEKA
INDUSTRI

ANEKA
INDUSTRI

ANEKA

Actions
INDUSTRI

ANEKA
INDUSTRI

PEMADAM
KEBAKARAN
1. Build axis road from industrial estate to Pontianak
INDUSTRI
SEDANG
Sea Port 34km.
INDUSTRI
SEDANG
2. Build water reservoir to manage the water from
INDUSTRI
SEDANG mandor River for the purpose of industrial
INDUSTRI KARET
INDUSTRI KECIL MENENGAH
activities..
ANEKA INDUSTRI

4. Build tank farm for latex.

INDUSTRI SEDANG
INDUSTRI BESAR
PERUMAHAN
INDUSTRI
PARKIR ANGKUTAN KARYAWAN
INDUSTRI
BESAR
BESAR
SARANA OLAH RAGA
SARANA PERIBADATAN

5. Build Electricity System from main road to

COMMUNITY CENTER
KANTOR MANAJEMEN
PERKANTORAN
PUSAT INOVASI
MEDIA CENTER
CONVENTION CENTER

industrial estate (about 2 km) and build power plan

EXHIBITION CENTER
AREA KOMERSIAL
PERDAGANGAN
MEDICAL CENTER
PENGELOLAAN PEMADAM KEBAKARAN
LIMBAH
KERING
IPAL
POWER STATION
FUEL STATION
PENGELOLAAN AIR BERSIH
IPAL
PENGELOLAAN LIMBAH KERING
PUSAT PENGEPAKAN
substation
KAWASAN INDUSTRI MANDOR II TAMAN
PEMAKAMAN

KABUPATEN LANDAK RTH/BUFFER

6. Build Waste Treatment System

Employment: 33.600 Workers 7. There are already potential investors plan to invest
in the area (PT Djarum and PT Sampoerna)
46
 3.14. Jorong Industrial Estate
(South Kalimantan)
Profile 1. Located at Jorong of Tanah Laut Residency
2. Land Areas 6,370 Ha (including Swarangan
Pelaihari port 1 037 Ha)
3. Base of Industry : Steel & Agro Industries
4. Value of Investment :
5. Anchor Industry :

Progress 1. Facilitating the Government of South

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

2. Facilitating the Tanah Laut Residency

Government to map out the detailed spatial
plan

Actions 1. Facilitating to build sea port for industrial

estate
2. Develop integrated Masterplan of the city,
industrial estate, sea port, air port, trade
center, residency, and tourism area
3. Facilitating to map out the detailed spatial
plan outside industrial estate
4. Facilitating on assigning industrial estate
administrator
Employment: 10.000 Workers
47
4. Development of Manufacturing Industrial Estate

Industrial Estates Standard, assures the quality of industrial

Estates according to Government regulations so it gives quality
certainty for industrial Estates in Indonesia

Industrial Estates Award, drives the management of

industrial Estates in improving the quality of industrial
Estates

Establishing industrial Estates as Objek Vital Nasional

Industri (OVNI) or National Industry Vital Objects

Halal Industrial Estates, gives the easiness for industrial

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

Eco Industrial Estate, minimize negative impacts from the

industrial development

48
VI. ENHANCE INDONESIA’S INVESTMENT CLIMATE

49
1. Significant Increase of Electricity Infrastructure in 2015-2019
Electricity Infrastructure Development in 2015-2019

Electricity Power Infrastructure

• Power Generator:
 Construction phase 7.4 GW
 Planning phase 35.5 GW
Total 42.9 GW
• Transmission 46.600 kms
• Sub-station 105 GVA

Capital expenditure requirements:

• PLN IDR 609 Trillion
• Private Sectors IDR 580 Trillion
Total IDR 1.189 Trillion

To secure 6.7% of economic growth, with 8.8% of growth in demand for electricity, and
electrification ratio target of 97.2%

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

Power Generator Sites Map of 35.5 GW and 7.4 GW Program

Sumatera Kalimantan Sulawesi Maluku

:PLN : 2.79 GW (23 unit) :
PLN : 0,92 GW (18 unit) :
PLN : 2,02 GW (28 unit) :
PLN : 0,26 GW (18 unit) Papua:
IPP : 5.96 GW (49 unit) IPP : 0,96 GW (12 unit) IPP : 0,68 GW (40 unit) IPP : 0,02 GW ( 4 unit) PLN : 0,22 GW (19 unit)
Total : 8.75 GW (72 unit) Total : 1,87 GW (30 unit) Total : 2,70 GW (68 unit) Total : 0,28 GW (22 unit) IPP : 0,12 GW (17 unit)
Sumatera Kalimantan Sulawesi Maluku Total : 0,34 GW (36 unit)
:
PLN : 1.43 GW (14 unit) :
PLN : 0.88 GW (28 unit) :
PLN : 0.33 GW (15 unit) :
PLN : 0.05 GW (5 unit)
IPP : 1.14 GW (18 unit) IPP : 0.09 GW ( 7 unit) Papua:
IPP : 0.14 GW (10 unit) IPP : -
Total : 2.57 GW (32 unit) Total : 0.97 GW (35 unit) PLN : 0.07 GW (8 unit)
Total : 0.47 GW (25 unit) Total : 0.05 GW (5 unit)
IPP : -
Total : 0.07 GW (8 unit)

Kalimantan Maluku
Sumatera
Sulawesi Papua

Jawa-Bali:
Java-Bali
Nusa Tenggara
PLN : 7,38 GW (19 unit)
IPP : 13,53 GW (76 unit) Nusa Tenggara:
Total : 20,91 GW (95 unit) PLN : 0,66 GW (16 unit)
Indonesia:
IPP : 0,05 GW ( 9 unit) PLN : 18,42 GW (232 unit)
Jawa-Bali:
Total : 0,70 GW (25 unit) IPP : 24,51 GW (260 unit)
PLN : 1.21 GW ( 6 unit)
IPP : 1.75 GW (12 unit) Nusa Tenggara: Total : 42,93 GW (492 unit)
Total : 2.96 GW (18 unit) PLN : 0.19 GW (15 unit)
IPP : 0.08 GW ( 6 unit) Program: 35,56 GW
Total : 0.27 GW (21 unit) On Going: 7,37 GW
PLN: State-owned Electricity Company
IPP: Independent Power Producers
(Source: Ministry of Energy and Mineral Resources, Republic of Indonesia) 51
Transmission Requirement Map of 35.5 GW and 7.4 GW Program
Sumatera:
70 kV : 611 kms
150 kV : 11.239 kms
275 kV : 5.082 kms Kalimantan: Sulawesi: Maluku: Papua:
500 kV : 1.130 kms 150 kV : 7.703 kms 70 kV : 86 kms 70 kV : 237 kms 70 kV : 304 kms
500 kVDC : 1.243 kms 275 kV : 180 kms 150 kV : 4.900 kms 150 kV : 416 kms 150 kV : 60 kms
TOTAL : 19.305 kms TOTAL : 7.883 kms TOTAL : 4.986 kms TOTAL : 653 kms TOTAL : 364 kms

Kalimantan Maluku
Sumatera
Sulawesi Papua

Java-Bali
Nusa Tenggara
Java-Bali:
70 kV : 44 kms
150 kV : 8.431 kms
500 kV : 2.411 kms Nusa Tenggara:
70 kV : 1.408 kms INDONESIA
500 kVDC : 300 kms
150 kV : 813 kms : kV
70 : 2.689 kms
TOTAL : 11.185 kms
TOTAL : 2.221 kms 150 kV : 33.562 kms
275 kV : 5.262 kms
500 kV : 3.541 kms
500 kVDC : 1.543 kms
TOTAL : 46.597 kms

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

2. Connectivity to be accelerated
Development Sector in Baseline Target
Connectivity 2014 2019

Miangas New road

1,202 2,650
(km, total in 5 years)
Maratua
Singkawang Pohuwato New toll road
Muara Te we 807 1,000
h Tojo Una-Una
(km, total in 5 years)
Enggano Taria

Namniwe l Ke nyam Railway (km) 5,434 8,692

Aboy
Ke rtajati Koroway
Batu
Seaport (location) 278 450
Moa
Port dwelling time (day) 6-7 3-4
15 airports and 24 major seaports Airport (location) 237 252
location
Flight on-time
USD performance (%) 75 95

63% 141billion
Investment
Broadband coverage
(% of district)
82 100
opportunities
increase in infrastructure Crossing dock (location) 210 275
offered to private
National budget Market share of urban
for infrastructure, sectors, 31% of 23 32
from IDR 178 T in total investment public transport (%)
2014 to IDR 290 T required in 2015-
2019. Logistic cost to GDP (%) 24.2 19.2
(USD 24.2 B) in 2015.
Source: National Medium Term Development, Planning, 2015-2019, Bappenas, Dec 2014 & MoF, Feb 2015;
prepared by The Investment Coordinating Board of the Republic of Indonesia 53
3. Improving of Licensing
Investors submit and obtain permits exclusively at BKPM with time certainty & online
monitoring.

FRONT OFFICE BACK OFFICE

Electronic
Investment
BKPM Desk BKPM Desk Information
& License
Service
Ministry/ Ministry/
(SPIPISE)
Institution Institution
Desk Desk
Online System
Ministry/ Ministry/
Institution Institution
Investors Desk Desk
Ministry/ Ministry/ Online System
Institution Institution
Desk Desk
Ministry/ Ministry/
Institution Institution
Desk Desk
1. Documents admission Licenses are
2. Consultation processed

Call Centre in
Indonesia Online Monitoring (Servi ce Performa nce Moni tori ng Da s hboa rd)
0807-100-
BKPM

Source: The Investment Coordinating Board of the Republic of Indonesia

54
22Ministries/institutions integrated in the investment one-stop service at BKPM
Ministry of Energy & Mineral Resources Ministry of Health
10 licenses related to power & geothermal 9 licenses related pharmaceutical
production, medical equipment
production
Ministry of Environment & Forestry
35 b business licenses
Ministry of Tourism
9 licenses related tourism and
Ministry of Industry economy creative sectors
6 business licenses
Ministry of Communications and Information
Ministry of Agrarian and Spatial/National Technology
Land Agency 5 licenses related post management,
Centralization of issuing land rights licenses telecommunication and broadcasting
for foreign direct investment
Ministry of Manpower
3 b business licenses and principal licenses
Ministry of Defense
Stationed Liaison Officer for consultation
Ministry of Public Works & Public Housing
7 business licenses
Ministry of Trade
5 licenses Ministry of Maritime & Fishery
2 business licenses
Ministry of Agriculture
5 business licenses Ministry of Education & Culture
2 business licenses
Ministry of Finance
Import duty facility for machineries, Indonesian National Police
goods, materials for production 6 business license in safeguarding business

Ministry of Transportation Supporting Institutions: Nat’l Food &

7 business licenses Drugs Control Agency, Nat’l Crypto
Agency, Nat’l Standardization
Agency, Electricity Company
Ministry of Law & Human Rights
1 business licenses
Source: The Investment Coordinating Board of the Republic of Indonesia 55
 Timeline of Investment One-Stop Service (PTSP)
Covering all national-level licenses by 2015(Q2) & integrating all regions by January 2017.

Launching
Online
Licensing
at BKPM

December January
February – December 2016
2014 2015
2015

Tryout Regional
Launching Regional PTSP PTSP
National
National 24 provinces – 120 34 provinces
PTSP
PTSP (26 Jan) districts 561 districts
(15 Jan)

Progress
• 77 liaison officers from 22 ministries/institutions are assigned for faster handling and
providing consultation.
• 150 permits are processed at PTSP BKPM.
• 1,198 business fields are served at PTSP BKPM.
• Online application have been available for 15 licenses from BKPM and several ministries.
Licenses from other ministries/institutions will follow.
• Simplification of licensing process is in progress.
Source: The Investment Coordinating Board of the Republic of Indonesia
56
4. Debottlenecking of Investment Realization
5 cases with total value IDR 14 trillion (USD 1.2billion) are solved.
94 cases with total value IDR 478 trillion (USD 39.8 billion) are under facilitation.

BKPM as a Clearing House

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

Obstacle Location Sector

22 cases of land issues 14 Wes t Java 3 North Sulawes i 8 Fi s hery
26 cases of licensing at any levels 5 Central Java 7 West Papua 4 Planta ti on
2 cases of forests land use permit 4 Ea s t Kalimanta n 3 North Maluku 1 Furni ture i ndus try
3 cases of tax holiday facilities 9 Banten 3 Pa pua 3 Suga r i ndus try
17 cases of regulation at technical 2 East Java 2 Wes t Kalimanta n 13 Chemical a nd pha rma ceutical
ministries 3 North Sumatera 1 West Nusa Tenggara 12 El ectri city, gas and wa ter suppl y
9 cases of regional government res- 5 South Kal ima ntan 2 Riau Islands 11 Infra s tructure
ponse 1 Jambi 1 Central Sulawes i 7 Tra ns porta tion & telecommuni ca ti on
6 cases of raw materials issues 10 Jakarta 2 Yogyakarta 2 Textile indus try
7 cases of electricity issues 3 Central Kalimantan 3 South Sulawes i 2 Meta l , ma chi nery & el ectroni c industry
5 cases of PPP scheme 1 South Suma tera 3 Riau 6 Trade and repair
1 case of copyright issue 1 Lampung 1 Southeast Sulawes i 4 Food indus try
2 Bali 7 unlocated 4 Tourism
17 Mi ni ng
2 Real es ta te, i ndus trial area and offi ces
2 Other i ndus tri es

Source: The Investment Coordinating Board of the Republic of Indonesia

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5. Investment Incentives Provided
 Investment in Indonesia is regulated by Presidential Regulation No. 39 of 2014 on List
of Business Fields Closed to Investment and Business Fields Open With Conditions to
Investment.
 Basically, a foreign investor is able to invest for 100% FDI, as long as it goes in
accordance with the provisions in Presidential Regulation No. 39 of 2014.

Tax Holiday

Tax Allowance

Tariff Waiver in Importing Machine and

Raw Material for Particular Industries

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5.1. Tax Holiday
Who are the eligible beneficiaries?? Requirements:
 Pioneer industries;
Pioneer industries eligible for obtaining tax
holiday include:  Minimum amount of investment: IDR
1. Basic metal industries 1 trillion (± US$ 110 million);
2. Refinery and basic petrochemical
 New company (established after
industries
August 15th, 2010;
3. Machinery industries
4. Renewable resources industries  10% (ten percent) deposit of total
5. Telecommunication equipment investment.
industries.

List of pioneering industries as intended above are specified

into list of industries which defined by Directorate General
of Industrial Development (Directorate General of Agro
Based Industry, Directorate General of Leading High
Technology Based Industry and the Directorate General of
Manufacturing Based Industry).

Incentives given:
 5-10 years income tax exemption
 50% income tax reduction for 2 (two) years.

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5.2. Tax Allowance (1/2)
Who are the eligible beneficiaries??
This incentive is given to new investment or expansion of industries as follows :
I. Particular Industries II. Particular Industries in Particular Regions
1. Food Industry (chocolate and sugar confectionery 1. Food Industry (processing and preserving of
industry) canned fruit and vegetables industry, margarine
2. Textile Industry (manufacture of fabric for industry, coconut cooking oil industry, sugar
industrial needs) industry, etc)
3. Coke and Refined Petroleum Products Industry 2. Textile Industry (preparation of textile fiber
4. Chemicals and Chemical Products Industry industry, carpets and rugs industry, and non
5. Pharmaceuticals, Medicinal Chemical and woven industry)
Traditional Medicine Products Industry 3. Leather and Product Leather and Footwear
6. Rubber and Plastics Products Industry Industry
7. Basic Metal Industry 4. Paper and Paper Product Industry
8. Fabricated Metal Products, Except Machinery and 5. Chemicals and Chemical Products Industry
Equipment Industry 6. Non Metal Mineral Goods Industry
9. Computer, Electronic and Optical Products 7. Other Tranportation Eqipment Industry (only in
Industry East Java, Kalimantan, Sulawesi, Maluku, Papua,
10. Electrical Equipment Industry West and East Nusa Tenggara)
11. Machinery and Equipment Industry 8. Repair and Maintenance of Machinery and
12. Motor Vehicles, Trailers, and Semi trailers Industry Equipment (only in East Java, Kalimantan,
13. Other Transport EquipmentIndustry Sulawesi, Maluku, Papua, West and East Nusa
14. Repair and Maintenance of Machinery and Tenggara)
Equipment 9. Treatment of waste

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5.2. Tax Allowance (2/2)
Requirements: Incentives Given:
1. To companies established after 1. 30% reduction on net income of investment
the enactment of PP 52/2011 (distributed in 6 years).
(after 22nd December 2011) 2. Accelerated depreciation and amortization
 Fulfill the requirements in the
Appendix I or Appendix II of 3. Income tax of 10% or lower for dividends paid to
PP 52/2011 offshore taxpayers
4. Loss carry forward of 5-10 years depending on
2. To companies established before following terms:
the enactment of PP 52/2011
• + 1 year in a bonded industry zone
(before 22nd December 2011)
 Fulfill the requirements in the
• + 1 year for employing at least 500 Indonesian
Appendix I or Appendix II of workers for five consecutive years
PP 52/2011 • + 1 year for investing at least IDR 10 billion
 Minimum investment: IDR 1 spending on economic and social infrastructure in
trillion (± US$ 110 million); its business area
 Not yet reach commercial • + 1 year for spending of at least 5% of investment
production at the enactment within 5 years on R & D
of PP 52/2011 • + 1 year for utilizing minimum 70% domestic raw
material on component in years.

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

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

import of
machines, goods
and materials for exemption of
the building or import duties.
development of
industries

a. have not been produced domestically;

b. have been produced domestically but they have not met
the required specifications; or
c. have been produce domestically but their amount has
not met industrial needs

Incentives provided for the Building/Expansion of Industries:

 Import duty exemption for 2 years
 Import period can be extended according to the period of time for the
building/development of industries as contained in the import approval
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 Indonesian Expectation

• Encouraging Japanese companies to invest in Indonesia

especially in 14 manufacturing industrial estates, especially
in industries as follows :
(a) Mining processing;
(b) Agro based industry;
(c) Construction machineries and heavy equipment; and
(d) Petroleum, gas and electric power;
• Japanese investors can build partnership with Indonesian
company;
• The targeted market is not only Indonesian domestic market
but also export market.

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どうもありがとうございます
Director General for Industrial Region Development, Ministry of Industry
Imam Haryono, Ph.D., mobile : +62 812 9991444
email : imam_haryono_dr@yahoo.com

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