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North Sumatra Province

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North Sumatra Province PROVINCE OVERVIEW INDONESIA INDUSTRIAL ESTATES DIRECTORY 2018-2019 North Sumatra Province Auto rickshaw taxi in Medan orth Sumatra is located in the northern part of Sumatera Island in Western Indonesia. The capital Basic Data is Medan, which is considered as the third largest Ncity in Indonesia. With a population of 13 million people, North Sumatra is the most populous province outside Capital: Medan Java Island. Major Cities: In developing the province, the government has set 1. Binjai : 264.687 inhabitants. itself the vision to make “the province of North Sumatra 2. Pematangsiantar : 247.411 inhabitants. competitive and prosperous”. In order to materialize 3. Padangsidempuan : 209.796 inhabitants. the vision, the province will focus in improving human 4. Tanjungbalai : 167.012 Inhabitants. resources, the quality of infrastructure, living standard, 5. Tebing Tinggi : 156.815 inhabitants. and sustainable development of its natural resources. The province is famous for its abundance of natural Size of Province: 72.981,2 km2 gas, oil, and its plantations of CPO, rubber, cocoa, tea, palm oil, coffee, cloves, and tobacco. The whole Sumatra island Population: has been determined as “the center of production and (1) Province : 13.937.797 inhabitants (2) Province Capital : 2.210.624 inhabitants processing of natural resources and the nation’s energy reserves” in the Medium Term National Development Plan Salary (2018): 2015-2019. Moreover, North Sumatra itself is being referred The provincial monthly minimum wage : as the center of rubber and palm oil by local people. USD 157,94. Plantation and agriculture are considered as imperative economic pillars of the province with 88% of the population working in the agriculture sectors. Palm oil can easily be found in this province as the Educational Attainment province has the 2nd largest plantation area for palm DIPLOMA Undergraduate Postgraduate oil in Indonesia (24% of the size of province). Moreover, 1,80% 2,96% 0,15% rubber is an important agricultural commodity of North VOCATIONAL Sumatra. Total production of rubber in Indonesia reached % 2,48 Never attending 3,15 million tons in 2016, of which 13,3% originated from school North Sumatra . Historically, North Sumatra is the second 6,11% largest producer of rubber after West Sumatra. Yet, due to the slumping global price for rubber, there has been SENIOR % Not graduated a decline in production of rubber since 2013. In order to 22,19 from Elementary develop the palm oil-based and rubber-based industry, 19,57% the central government of Indonesia has developed “Special Economic Zone Sei Mangkei” . In 2016, the central government has included Toba Junior Lake, a touristic attraction in North Sumatra, in the 19,78% Elementary National Tourism Strategy. The major objective of this 24,96% inclusion is to increase the number of incoming foreign tourists to Lake Toba to 1 million by 2019 . Since 2016 up until 2019, the government is building new touristic infrastructure as well as the revitalize the existing one through large investments of USD 1,52 billion in total. 6 NORTH SUMATRA PROVINCE ECONOMY Subsistence/common vocation The province’s GRDP reached USD 32 billion in 2015. of Population North Sumatra contributed 4,91 percent to the GDP. Generally, GRDP of North Sumatra province originates % mostly from agriculture, manufacturing, trade, hotels and 1,43 Processing Industry 89,61% restaurants, the services sector, and the transport and 3,95% Trading, Hotel and communications sector. In 2015, agriculture contributed Agriculture, Restaurant 24,97% to the GRDP and experienced growth of 5.6%. The Veterinary, % SERVICES Forestry & 5,01 manufacturing industry contributed 19,50% to GRDP, but Fishery it experienced growth of only 3,52% in the same year. Although the contribution of manufacturing industry to GRDP is quite significant, growth of the province has declined from 4,84% in 2013 to 3,52% in 2015. The export value of North Sumatra in 2015 reached USD sectors of electricity, gas and water and tourism with 7,75 billion. North Sumatra’s main export commodities a total investment of USD 263,5 million. Moreover, the were animal and vegetable oils/fats, which reached an non-metal industry received total foreign investment export value of USD 2,4 billion (39,22 percent of the total of USD 95,9 million, of which USD 40 million went into export value). The total value of imports to North Sumatra the chemical industry. In the same year, 79% or USD 159 reached USD 3,99 billion in year 2015, a decrease of million of domestic investment went into the tertiary 20,97% from 2014. Thus, in 2015 the trade surplus of North sector, particularly the sector of electricity, gas and water. Sumatra was USD 3,76 billion. In 2015, the major export In 2016, most foreign investment was received by partners for North Sumatra were the United States with the sector of electricity, gas, and water, due to the newly exports worth USD 886 million and China with exports develop project of 35,000-megawatt power plant. The worth USD 846 million. Imports of North Sumatra mostly main countries of investors for the first quarter of 2016 were raw materials worth USD 2,32 billion (58,18% of total are China, Singapore, Switzerland, and Malaysia. imports) and consumer goods worth USD 960 million (24,08%). Investment Realisation The provincial government expenditures increased from USD 578,41 million in 2014 to USD 642,95 million in 2000 the following year. In 2014, indirect expenditures such as grant expenditures reached USD 126,11 million or 29% of 1500 the total actual expenditures. While in 2015, the type of DDI expenditure that had biggest share of 26% or USD 172,6 FDI million were shared expenditures to the districts and 1000 cities. Economic Growth (2014-2016) 500 Year Description 2014 2015 2016*) (mio USD) 2011 2012 2013 2014 2015 Economic Growth of Province 4,89 4,88 5,10 DDI 188,90 375,4 312,87 314,46 184,22 National Economic Growth 5,02 4,79 5,02 FDI 645,32 887,45 550,84 21,18 134,50 *) estimated Total 834,22 1262,85 863,71 335,64 318,72 Total monthly average expenditure per capita in 2014 was USD 51.79 and then, increased to USD 57.42, of which Economic Resources expenditures for non-food consumption accounted for Commodities Outlook 46,5% of total expenditures in 2015. The largest post of expenditure for non-food were household facilities Agriculture with USD 13,4, while the major expenditure of food consumption were prepared food and beverages with Manufacturing USD 6,5. Services Sector INVESTMENT Total investment in North Sumatra fluctuated between Transportation 2012 and 2016. In 2016, total investment reached USD 1,31 billion with USD 360 million coming from domestic Tourism investors and USD 1,01 billion originated from foreign investors. Plantation In 2015, foreign investment went mostly into the 7 PROVINCE OVERVIEW INDONESIA INDUSTRIAL ESTATES DIRECTORY 2018-2019 1 3 Malacca Strait Aceh Belawan Seaport Province Kuala Namu Airport MEDAN 2 1 2 Samosir Island Capital City City Main bridge Mentawai Strait Toll road w National road Medium road Riau Nias Island Province Small road Hinako Railroad Archipelago International Airport Domestic Airport International Port Batu Archipelago Domestic Port / Harbour INDIAN West Sumatra Existing Industrial Estate OCEAN Tanahmasa Island Province Industrial Estate in Development Tanahbala Island SEAPORT EXISTING INDUSTRIAL ESTATE 2 (Belawan Port and Tanjung Balai Port). 1 Medan Industrial Area/ PT Kawasan Industri Belawan is Indonesia’s busiest port located Medan (Persero) outside of Java island. 2 Medan Star Industrial Estate / PT Tamoratama Prakarsa AIRPORT 3 Pulahan Serunai Industrial Estate /PT 10 with Kuala Namu Airport and Binaka Airport Lamhotma as the more noticeable ones. Kuala Namu airport is the second largest airport in Indonesia DEVELOPING INDUSTRIAL ESTATE after Soekarno-Hatta International Airport. 1 Special Economic Zone Sei Mangkei 2 Industrial Estate Kuala Tanjung TRAIN SYSTEM • Belawan – Medan • Binjai to Rantauprapat • Medan – Kualanamu • Big stations: Belawan, Medan, Kualanamu LAND ROAD Airport, Kisaran and Rantauprapat Road : 33.383,66km Toll Roads : N/A • Medan – Kualanamu – Tebing Tinggi toll road length reached 61,80 km. • Medan – Binjai toll road length reached 25,44 km. • Trans Sumatera Tebing Tinggi – Dumai toll road length reached 240 km (development plan). • Trans Sumatera Medan - Aceh toll road length reached 85 km (development plan). 8 NORTH SUMATRA PROVINCE Sunrise at Toba Lake, North Sumatra Kualanamu Internartional Airport in Medan, North Sumatra A winding road between tropical forests is visible from the air in Fish farming near Lake Toba North Sumatra DEVELOPMENT PLANT 4. Development of BRT (Bus Rapid Trans) Medan. 1. Expansion of Kuala Tanjung Seaport: 1 bulk terminal 5. Development of resorts, hotels and other supporting (e.g. CPO) and 1 container terminal. facilities on Nias island and Lake Toba. 2. Development of a railway system: Bandar Tinggi – 6. Development of Simalungun-Batubara-Asahan Kuala Tanjung 1825 km. Integrated Economic Zone including the development 3. Development of a railway system: Lima Puluh – Sei of the Special Economic Zone Sei Mengkei. Mengkei 5 km. 7. Development of Kuala Tanjung International Hub Port. 8. Exploration of geothermal energy at Pusuk Buhit - STRENGTH Danau Toba (150 MW potential), Dolok Merawan (225 MW potential), Sibuhuan (100 MW potential), Sibual- buali (556 MW potential) and Desa Pagaran (225 MW 1. Crude Palm Oil, rubber, and cooking oil potential). processing are some of biggest potentials to be 9. Exploration of hydro energy at Sungai Wampu explored in North Sumatra. (261 MW potential), Sungai Batang Gadis (147 MW 2. Tourism is also the spotlight in North Sumatra Potential) and Suangi Aek Sibundong (135 MW as Lake Toba has been included Indonesia’s potential). overall tourism strategy.
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