Presented by :

WEST ’S SECRETARY OF PROVINCE , July 14th 2018

1 OUTLINE

GENERAL DESCRIPTION OF

INTERNATIONAL TRADE PERFORMANCE IN WEST KALIMANTAN

THE SUPPORT INFRASTRUCTURES FOR INTERNATIONAL TRADING IN WEST KALIMANTAN

2 GENERAL DESCRIPTION OF WEST KALIMANTAN

3 Area1 147.307 Km2 WEST KALIMANTAN IN 2017 Population2 5.364.964 Number of Regency / City 12 Regencies / 2 cities Number of Districts 174 Districts Village / sub-village 1.977 villages/ 99 sub-villages Number of Island3 217 Islands Gross Regional Domestic Rp. 177,47 Trilion/ Rp. Product GRDP (the current 124,29 Trilion price) / (basic price 2010) Rp. 35,98 jt (2.689,29 GRDP per Capita / National USD)/ Rp. 51,89 jt GRDP per Capita (Rp/USD) (3.876,8 USD) Regional economic growth / 5,17 % / 5,07% National growth Regional Poverty Rate / Kalimantan 7,86% / 10,64% Barat National Rate Population under the poverty 388.810 people line. Regional Unemployment Rate / 4,36 % / 5,50% National Rate Unemployment** 105.061 people Human Development Index 66,26 / 70,18 (HDI) / National HDI 1 Ministry Of Internal Affairs’ Regulation Number 56 Year 2015 Source: Central Agency of Statistics, West Kalimantan Regional Office,2018 2 West Kalimantan Office of Demography and Civic Registration, 2017 3 West Kalimantan Provincial Secretariat, Bureau of Regional Governance 2008 4 West Kalimantan Border Arrangement

A

3

B 4 2

1 5 CROSS-BORDER ACCESS ROADS 1. Entikong (Tanjung– Border), length ± STRATEGIC VALUES : A PARALLEL ROAD CONNECTING 5 (FIVE) REGENCIES 100,70 km ALONG THE BORDER AREA (A  B). 2. Nanga Badau (Putussibau–Sarawak Border), length • Temajok - Aruk - Jagoi Babang - Entikong - Jasa - Nanga Badau – Putussibau – East Kalimantan Border. ± 168,90 km 3. Aruk (Sambas – Sarawak Border) length ± 88,06 km 4. Jagoi Babang (Bengkayang – Sarawak Border) length ± 105,66 km 5 5. Jasa (Sintang – Sarawak Border) length ± 206,25 km5 PROGRESS OF CROSS-BORDER INFRASTRUCTURE ARRANGEMENT IN WEST KALIMANTAN

1) THE FIRST PHASE OF BORDER CROSSINGS ARRANGEMENT IN ENTIKONG (SANGGAU), BADAU (KAPUAS HULU) AND ARUK (SAMBAS) HAS BEEN COMPLETED IN 2017, AND ALL OF THEM HAVE BEEN INAUGURATED BY THE PRESIDENT OF THE REPUBLIC OF .

2) THE SECOND PHASE OF BORDER CROSSINGS ARRANGEMENT AND CONSTRUCTION OF EXPORT-IMPORT FREIGHT TERMINAL IN ENTIKONG, BADAU AND ARUK WERE STARTED IN 2017 AND WILL FINISH IN 2019. 3) BORDER CROSSINGS IN JAGOI BABANG (BENGKAYANG) AND JASA, (SINTANG) WILL INITATE THEIR OPERATION IN 2019.

6 7 8 9 10 11 12 INTERNATIONAL TRADE PERFORMANCE IN WEST KALIMANTAN

13 MAIN EXPORT COMMODITIES OF WEST KALIMANTAN IN 2017 Alumina. Export value : $ 323 Million (37.2 %) Substituting the role of Rubber, Wood and Bauxite. 1 In the last 3 years, its export value has increased 802% annually. The success of National Derivation Policy of Mining Commodities. Hot Issue: The Effect of Bauxite Export Relaxation Policy in 2017 towards West Kalimantan Alumina Exports. BIG INDUSTRY

Crumb Rubber. Export value : $ 2013 Million (23.4%) West Kalimantan’s Main Export Product. Its trend of value and volume have declined since 5 2 years ago. The development of its derivative industries has been very slow. Based on the buyers’ request (especially from CHINA), it is gradually shifting to mixed rubber. BIG INDUSTRY 14 Plywood Thickness < 6 mm. Export value : USD 101 Million (11.7 %). 3 Number 1 export products in the 2000s. Decreasing value and volume: 8 percent per year in 2013–17. A ‘Sunset Industry’ due to raw material problems. BIG INDUSTRY

Bauxite. Export value: USD 66 Million (7.6 %) The second main commodity of Kalimantan exports. In 2013, it was almost equal to the export 4 value of crumb rubber. Exports are banned in 2015 - 2016 The export relaxation policy begun in 2017. CPO. Export value : USD 41 Million (4.7%) 3% of West Kalimantan CPO Potential in 2017 (2.3 Million tons) were exported. It is projected to reach 4 Million Tons in 2020. 5 Main export canal: PLBN Badau - Kab. Kapuas Hulu Needs the support of goods in transit to reach more competitive price & acceleration of derivative industry development (there is only one CPO derivative industry in Pontianak). SUCCESS OF THE MINISTRY OF TRADE BIG INDUSTRY 15 OTHER COMMODITIES WITH SIGNIFICANT INCREASE OF EXPORT VALUE MIXED RUBBER (Natural & Synthetic Rubber) Ranked 6th by export value in 2017 Average 301% annual increase of export value since 2015 Primary market: China COCONUT Ranked 7th by export value in 2017 Annual 333% increase of export value since 2015 Primary markets: PRC & South Korea Its supply for domestic industries has to be taken care of with a proper policy formulation. Coconut Flour Areca nuts, Ranked 12th ; Desicated Ranked 11th in Trend ↑ 14.9% Coconut 2017 since 2015) & Positive trend: 37% Coconut Oil annually since (Ranked 19th; 2013. trend ↑ 605% per year since 2015)

16 PHILIPINA THE INCREASING IMPORTANCE OF LAUT SULAWESI BANDA PROVINSIACEH NAD PROVINSI PROPINSI MEDANPROVINSI KALTIM GORONTALO PROVINSI SUMUT PROVINSI PROVINSIMALUKU UTARA KALBAR SULUT PEKAN BARU PROVINSI PONTIANAK PROVINSI KALTENGBALIKPAPAN FOREIGN TRADE THROUGH KEPRI PROVINSI PALANGKARAYA RIAU PADANG PROVINSI PROVINSI PROVINSI PROVINSI JAMBI SULTENG PROVINSI SUMBAR BANJARKALSEL MALUKU PROVINSI PROVINSI PROVINSI PAPUAJAYAPURA PALEMBANGJAMBI MASIN SULSEL SULTRA BENGKULUPROVINSI TIMIKA SUMSEL PROVINSI LAND BORDERS IN WEST KALIMANTAN PROVINSI BENGKULUBd.LAMPUNG PROVINSI PROVINSI PROVINSI DKI JAYASMGJATENG JATIM LAMPUNG PROVINSI SERANG PROVINSI PROPINSI BALI BANDUNG YKA SURABAYA NTB BANTEN PROVINSIPROVINSI DENPASAR JABAR D.I.Y LAUT ARAFURA PROPINSI TIMOR NTTLOROSAE

Tanjung

• Borderline lenth: ± 966 Km • 5 Regencies, 14 sub districts (line I) and 29 sub districts (line 2) *) There are 50 + hiking trails 55 Villages in West Kalimantan with 32 Villages in Sarawak 17 THE SUPPORT INFRASTRUCTURES FOR INTERNATIONAL TRADING IN WEST KALIMANTAN

18 INFRASTRUCTURES TO SUPPORT INVESTMENT AND EXPORT PERFORMANCE

The Newly Renovated Trans-Kalimantan Tayan Bridge Supadio Airport Road

Border Crossings in Aruk, Entikong and Badau; each equipped with an Export-Import Freight Terminal 19 NATIONAL ROAD RELOCATION PLAN for the DEVELOPMTHE CONSTRUCTION OF KIJING PORT DEVELOPMENT & OPERATION OF KIJING PORT TERMINAL

STRATEGIC VALUE: A DERIVATIVES INDUSTRIAL CENTER LOCATED IN ALKI 1

: Land Port Allotment 1.350 Ha (SK Bupati No 70 Tahun 2012) : Port Area Plan 200 Ha SEZ Area 1.150 Ha (Phase I) Kijing Port (PT PPI)

SEZ Area 5.000 Ha National Road To Be Relocated (± 4.5 km) Problems PROGRESS EXPECTED SOLUTIONS

Port Area 200 Ha Awaiting for the A completed Port Master Plan: Diversion of a national construction of Kijing Pontianak Port Master Plan has been road runs through port Port to initiate. published (RIP Pontianak by the Minister area. of Transpotation No. KP 787 Year 2016 on 6th Desember 2016

Rencana lokasi The president has issued a Presidential pembangunan Pelabuhan Internasional Kijing Regulation for the Acceleration of Kijing

N Port Development and Operation. 20 The Connectivity Plan of KIJING Deep-water Port

Hinterland Network

Road

21 THE DEVELOPMENT OF KETAPANG PRIORITIZED INDUSTRIAL ZONE

land information STRATEGIC VALUE: Land reserves To support Bauxite (which the area has a lot in reserve) derivatives Location permit Sertificated production. HGB

Problems Progress Solution  The condition of access road Basic permits of an  Improving the access road from Ketapang into the area industrial zone as required status into State Road (Ketapang-Pesaguan- for land acquisition, land (Ketapang-Pesaguan- Kendawangan) is inadequate. information, environmental Kendawangan) and It has been proposed as a permit, permission to improvement of its condition. state road. specify the location of  Addition of Industrial Zone  PT. Ketapang Bangun Sarana special terminal, Location Permit in accordance and PT.Borneo Alumindo development permit and with completed Detailed Prima are not yet integrated special terminal operation Engineering Design. as one industrial zone have been acquired. management entity. KETAPANG SMELTER CONSTRUCTION

STRATEGIC VALUE: Its industrial activity is very strategic both at regional and national level either from its industry type, its investment value, its absorbance of direct and indirect labor and export value.

Problem Progress Solution

Currently, PT. WHW-  Phase I of the It should be AR company has not construction has proposed as one of become a national been completed Indonesia National vital object. This and has started to Vital Objects. status will ensure a export alumina. safe and comfortable  Currently in the business second phase of environment for the development (to company. reach production capacity of 1 million tons / year) PT.WHW –AR (Well HarvestWinning Alumina Refinery ) DEVELOPMENT OF MANDOR INDUSTRIAL ZONE STRATEGIC VALUE: A Center of Rubber-derivative Industries, with rubber as one of West Kalimantan Main Commodities Problems Progress Solution Building Use  Location: The Mandor Industrial Zone Government Permit of has been established by the Landak support in Location I : Mandor Regent Decision Letter number accelerating the 91,9 Ha wide: Industrial Zone 530/18.E/HK-2011 on 8th February HPL process of 81 Ha :APL has not been 2011. Area: ± 352,64 Ha Mandor Industrial 3 Ha: CA MANDOR completed.  The details are as follows : Zone, financing 1. Location I 99,01 Ha wide, located the construction Access and in Kayu Ara village of access roads, axis roads are 2. Location II 253,63 Ha wide, and financing the unavailable. located in Mandor Village. construction of  Progress until 2016: clean water Needs clean 1. Masterplan, Strategic Plan, and processing water prelimary studies completed in 2013. facilities. processing  In 2015 facilities. 1. Completion of Detailed Engineering Design, Detailed Spatial Plan and Innovation Review Center 2. Clearing of 10 ha land. (2 hectare of the land is intended for the construction of Mandor Industrial Zone office complex, including the management office which to be

completed in 2016) LOCATION II : 253,6 Ha wide (whole APL) SEMPARUK INDUSTRIAL ZONE

STRATEGIC VALUES: Located next to Sintete National Port. Closely located to ferry dock construction built by The Ministry of Transportation. Located next to a primary National Road heading to Aruk Border Crossing.

Raw Water Storage Pool/ Embung (2 x 0,4 Constructed Pier (Part of Sea Toll Ha), funds for Construction) Government development of the through Ministry of Transportation 2007 Ministry Budget (2 Years Budget 2015 and 2016)

Extortion of Pel Sintete access road Internal Road compaction (2,674 m x 20 m) (714 m x 10 m), development fund development fund Province of Ministry Budget Regional Budget 2007 2007

Compaction of entrance (1,650 m x 15 m) Semparuk Industrial Zone Information development fund regional Center budget 206 Waste Water Treatment (± 300 m2), Development fund regional Development Fund of Province Budget budget 2007 Problems Progress Solution - The condition of the • Land acquisition of approximately 36.1 Ha plus 17 Ha area. Attract funds to area’s access roads • Sambas Regent's Letter Number 582/400 / BPMPPT-2/2013 dated 27 improve the area’s into the area and axis November 2013 Regarding Semparuk Industrial Zone (KIS) Management access roads and axis roads inside the area Permit within 200 Ha area (has been extended) roads. need to be improved. • The State Electric Company built a substation in Semparuk Industrial Building raw water - No clean water Zone in 2018 processing facilities. processing facilities. • Available water source. TAYAN INDUSTRIAL ZONE

Problems Progress Solution - Industrial Zone • Tayan as a Provincial Strategic Area has been included in West Kalimantan Assignment of PT Management Regional Spatial Plan & regarded as a Central Industrial Growth Area in Perkebunan Nusantara 13 as its Institution is unclear. the National Master Plan of Industrial Development. management - Road access into the • Area proposed for Land-use Rights: 103.6 ha wide institution by the area. • Infrastructure: CPO Storage Tanks and Docks Ministry of State- - the land-use rights. • The best candidate as its management institution / operator: PT. Owned Enterprises, Perkebunan Nusantara 13 (high commitment) clearance of land-use rights (BPN) & • Industrial Zone Strategic Plans (2013), Master Plan (2013), Infrastructure constructing an Review of Tayan Strategic Zone (2014) access into the area. The Construction of Parallel Border Road

The construction of Parallel Border through Entikong – Serimbu - Suti Semarang - Sanggau Ledo

Problem: no preliminary studies (FS, DED, Environmental & Land impact analysis) yet. Solution: conducting required preliminary studies for the corridor.

27 ENTIKONG RAILWAY DEVELOPMENT PLAN TO KIJING PORT

ENTIKONG RAILWAY DEVELOPMENT PLAN THE RAILWAY TRACK SPANS FROM ENTIKONG () TO KIJING PORT (MEMPAWAH REGENCY)

28 STATE RAILWAY TRACKS PLAN IN KALIMANTAN

CROSS-BORDER CORRIDOR : 1. Supadio Airport- Pontianak-Mempawah- -Sambas state borders-. HIGH PRIORITY

Sumber : Review Masterplan Pulau Kalimantan THE PROGRESS OF RAILWAY DEVELOPMENT IN WEST KALIMANTAN

1. Pontianak – Singkawang – Sambas State Border Railway construction progress: - The Feasibility Study for Track Assignment completed; funded by 2015 State Budget. - 2016 State Budget financed the Detailed Engineering Design (DED) for Phase I (Supadio Airport – Pontianak – Mempawah). - The State Budget to finance the Detailed Engineering Design (DED) for Phase II (Mempawah – Singkawang – Sambas State Border) was proposed in 2017. - Land Acquisition is expected to start in 2018 and 2019 - Physical construction is expected to start in 2020 2. Pontianak – Sanggau Railway track construction progress: - The Feasibility Study for Track Assignment completed; funded by 2016 State Budget. - The State Budget to finance the Detailed Engineering Design (DED) was/is being proposed in 2017 and 2018. 3. Sanggau - Tayan – Nanga Tayap – Pangkalan Bun Railway construction progress: - The Feasibility Study for Track Assignment completed; funded by 2016 State Budget. - The State Budget to finance the Detailed Engineering Design (DED) was/is being proposed in 2017 and 2018. 31