PROVINCE OVERVIEW

INDONESIA INDUSTRIAL ESTATES DIRECTORY 2018-2019

North

Province Beautiful beach of Derawan orth Kalimantan is located in the northern part of Kalimantan Island. The capital city is . Basic Data borders the Malaysian states of NSabah to the north and to the west, and the Capital: Tanjung Selor Indonesian province of to the south. North Kalimantan is the newest province of , Major Cities: created on the 25th of October 2012. Administratively, • : 239.973 inhabitants North Kalimantan province has five districts and one • Malinau : 226.322 inhabitants city. Its population of 738.163 is spread over an area of • Bulongan : 140.567 inhabitants 75.467,70 km2. • Nunukan : 62.460 inhabitants In developing the province, the government has • Tana Tidung : 22.841 inhabitants set the vision to ”harmonize in Pluralism to achieve an 2 independent, safe, peaceful, clean and proud North Size of Province: 72.567.49 km Kalimantan by 2020“. This vision is to be achieved by reducing poverty and unemployment, increasing economic Population: competitiveness of the agroindustry, tourism, and (1) Province : 738.163 inhabitants sustainable mining and by enhancing North Kalimantan’s (2015) human resources quality to become smarter, nobler, more (2) Province Capital : 42.231 (2012) skillful, and highly competitive. Moreover, the government Salary (2018): wants to develop the province’s infrastructure to enhance The provincial monthly minimum wage : interregional connectivity within Indonesia and with USD 189,62. neighboring countries. The dominant economic sectors of North Kalimantan are mining, agriculture, construction, and the processing industry. In mining, North Kalimantan has many products Educational Attainment such as, crude oil, natural gas, , and gold, while for Never attending agriculture, the products produced in North Kalimantan DIPLOMA school % are rice, corn, soy, and livestock. Furthermore, the 11 3% construction market reached a value of USD 559,33 million in 2015. In total, there were 1.386 small, medium and large construction companies employing 13.231 workers in 2015. Not graduated Moreover, the processing industry, particularly the food from Elementary and beverages, wood, paper, and non-metal industries, SENIOR 17% plays a prominent role in the province’s economy. 28% However, as formal statistics between North Kalimantan and East Kalimantan have not been completely separated, the discussion on North Kalimantan in this Elementary introduction still uses some of the information about Junior 25% East Kalimantan. 16%

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ECONOMY Subsistence/common vocation In 2015, GRDP of North Kalimantan was USD 4,65 billion of Population with the largest contribution coming from the mining Finance, Leasing % (28,05% of GRDP), agriculture (17,61%) and construction and Services 2 Company % (12,02%). The province contributed 0,54% to the national 35 GRDP in 2015. Agriculture, International trade of North Kalimantan is Veterinary, Forestry % & Fishery comparatively small. In 2014, total exports reached USD 23 services % 25,8 million, while imports reached USD 8,47 million 4 MINING % % leaving a trade surplus of USD 17,33 million. Top export 20 4 PROCESSING INDUSTRY Trading, destinations were Japan (USD 5,7 million), China (USD 3,3 % Electricity, Gas and Hotel and 1 Clean Water million) and South Korea (USD 3,9 million). Most imports Restaurant Transportation % % came from Asia (USD 3,5 million), Europe (USD 2,3 million), and Communication 5 6 MINING and Africa (USD 1,9 million). The province’s main exported commodities were liquid natural gas (USD 7,5 million), bituminous coal (USD 5,1 million), other types of coal Foreign investment fluctuated between 2012 and 2016 (USD 3,9 million), crude oil (USD 1,01 million), falling to its lowest value in 2013 and reaching its highest CPO derivatives (USD 1,06 million) and lignite (USD 0,95 value in 2015. In 2015, the agriculture sector received million). Furthermore, the main imported commodities 52,8% or USD 84,9 million of foreign investment followed were crude petroleum oil (USD 5 million), other diesel by the food industry sector with USD 51,6 million of foreign fuel (USD 964.298), automotive (USD 340.283), investment. The absolute value of North Kalimantan’s motor fuels (USD 280.418). foreign direct investment in 2015 was USD 230,9 million and USD 160,8 million in 2016. Domestic investment increased from USD 7,5 million in 2012 to USD 247,8 million in 2016, of which the food industry received 30,4% or USD 75,4 million, followed by the agriculture (25%) and mining sector (16%). Investment Realisation 500 Economic Growth (2014-2016) 400 DDI Year FDI Description 300 2014 2015 2016*)

Economic Growth of Province N/A N/A 4,27% 200 National Economic Growth 5,01 4,88 5,02 *) estimated 100 Actual expenditures of the government of North Kalimantan decreased from USD 62,5 million in 2013 to USD (mio USD) 2012 2013 2014 2015 2016 57,8 million in 2014. In 2014, indirect expenditures such as personal costs, grants and funds for regencies and cities DDI 7,50 17,10 47,60 68,30 247,80 accounted for 72% of the overall actual expenditures, FDI 91,90 61,20 108,30 230,90 160,80 while the remaining 28% fell on direct expenditures. Total 99,40 78,30 155,90 299,20 408,60 In 2014, average expenditure per capita per month in North Kalimantan has been USD 74,59, an increase of USD 12,57 since 2012. Of these total expenditures 51,60 % were Economic Resources spent on food consumption and 48,40 % on non-food Commodities Outlook consumption. As for food consumption, expenditures for prepared food and drink products had the largest share Agriculture in expenditures (20,53% of food consumption), while for non-food consumption, expenditures for housing (52,18% Food Industry of non-food consumption) were highest. Mining INVESTMENT Over the period from 2012 to 2016, most investments Construction in North Kalimantan went into the mining (28,05% of total investment), agriculture (17,61%), and construction Oil & Gas (12,02%) sectors.

19 PROVINCE OVERVIEW

INDONESIA INDUSTRIAL ESTATES DIRECTORY 2018-2019

BRUNEI DARUSSALAM Tunon Taka Seaport

Sebatik Seaport

Nunukan Airport

MALAYSIA Juwata Airport Malundung Seaport Capital City Sea City Tanjung Harapan Airport Main bridge TANJUNGSELOR 1 Toll road National road 2 1 Medium road Small road Railroad International Airport Domestic Airport International Port Domestic Port / Harbour Existing Industrial Estate East Kalimantan Industrial Estate in Development Province

EXISTING INDUSTRIAL ESTATE

1 Delma Mandiri Industrial Park

DEVELOPING INDUSTRIAL ESTATE

1 Mangkupadi Industrial Estate 2 Tanah Kuning Industrial Estate

LAND ROAD

4.739 km (2014) Juwata International Airport in Tarakan

SEAPORT

6 (Malundung Port, Nunukan Port, Tarakan Port, Pesawan Port, Tunon Taka Port, Sebatik Port)

AIRPORT

7 with Juwata International Airport in Tarakan, Nunukan International Airport in Nunukan, and Tanjung Harapan International Airport in Tanjung Selor the more noticeable ones.

TRAIN SYSTEM

N/A Tanker anchored in sea port Tarakan, Indonesia

20 NORTH KALIMANTAN PROVINCE

Delta river in forrest in North Kalimantan

Loading and unloading activities on the Tengkayu seaport, Underwater photo of diver and green sea turtle in Derawan Tarakan

DEVELOPMENT PLAN • Construction of Long Sempajong Dam. • Development of Nunukan Seaport. • Development of . • Development of Tarakan Seaport. • Development of a green city concept for the • Development of a gas power plant of 15MW in provincial capital. Tanjung Selor. • Development of Tanjung Selor Ringroad. • Development of a gas power plant of 2x10 MW in • Development of Tanah Kuning Industrial Estate & Nunukan. International Port. • Development of a hydro power plant of 1000 MW in • Development of Tanjung Harapan Airport. Besahan. • Development of Juwata Airport. • Development of a hydro power plant of 1000 MW in • Development of Maratua Airport. Sempanjang.

STRENGTH

1. The province has a lot of potential in the agroindustry for example in rice, cassava, soy, and corn. CONTACT 2. The province has a lot of potential in mining of for example gold, silver and coal. 3. The province has great potential in the food North Kalimantan Provincial Office processing industry. Jalan. Kol. H. Soetadji 4. The province has the second biggest GDP per Tanjung Selor capita in Kalimantan Island. North Kalimantan 5. The province has a strategic location, especially Phone : +62 (552) 22454 for national defense. E-mail : Website : www.kaltaraprov.go.id

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