PROVINCE OVERVIEW

INDONESIA INDUSTRIAL ESTATES DIRECTORY 2018-2019

East Province Baitul Mutaqqin Mosque in

he province is located in the eastern part of Kalimantan and is directly adjacent to East Malaysia. Basic Data The province is the third largest province in T(129.066,64 km²) after and . Yet, Capital: Samarinda due to its small population of 3,5 million, the province has fourth lowest population density in the country. Due to Major Cities: the number of rivers in the province, boats are considered • Kartanegara : 717.789 inhabitants a main mean of transportation. • : 615.574 inhabitants The vision of the provincial government is to • Kutai Timur : 320.115 inhabitants “establish a prosperous with equal • Paser : 262.301 inhabitants wealth distribution by focusing on the agroindustry and environment-friendly energy”. To materialize this vision, Size of Province: 129.066,64 km² the provincial government will focus its development efforts on increasing the quality of human resources, Population: natural resources and renewable energy, infrastructure (1) Province : 3.501.232 inhabitants and to introduce service-oriented good corporate (2) Province Capital : 828.303 inhabitants governance, and environment protection measures. This province has a considerably abundance of wood Salary (2018): and mineral resources. In 2014, the forest area in East The provincial monthly minimum wage : Kalimantan was approximately 8,2 million hectares. The USD 188,39. province is the second largest producer of wood-logs, after Central Kalimantan. In 2015, the realized production volume of this type of wood reached 1,5 million cubic meters, which represented 25,96% of the total production Educational Attainment Undergraduate in Indonesia . DIPLOMA Postgraduate 3,78% % In order to maximize the potential of wood and crude 2,31% 0,28 palm, the government has initiated the development VOCATIONAL % Never attending of Special Economic Zone, namely Maloy Batuta Trans 2,72 school Kalimantan, in 2014. The zone is expected to boost the 5,85% creation of added-value industrialization of various commodities in the region. It is expected to be able to SENIOR operate in 2018. 22,80% Not graduated Furthermore, the province is among the top three from Elementary producers of oil, gas and coal in the country. The province 19,70% has 28% of the country’s total reserves of coal. 6,6 million hectares of its areas have been allocated for mining. The Junior coal mining industry has shown positive growth every 17,69% Elementary year since 2004, and by 2014, the total production of coal 24,87% reached 234,6 million tons, an increase of 2,37% compared to the year 2013. In early 2017 its proven crude oil reserves were approximately 131 MBTU (Million British Thermal Unit), while gas reserves were 3,8 Tcf (trillion cubic feet) .

14 EAST KALIMANTAN PROVINCE

ECONOMY Subsistence/common vocation East Kalimantan’s GRDP in 2015 reached USD 37,18 of Population billion and its contribution to national GDP was 4,31%. The economy of East Kalimantan shrunk for 3 years in a % MINING row mainly due to the decline of global commodity prices, 3,41 especially oil, gas, and coal. The largest contributions 87,73% 1,33% PROCESSING INDUSTRY to GRDP in 2015 came from the sectors of mining (44%), manufacturing (20%), construction (8%) and agriculture Agriculture, % Trading, Hotel and Veterinary, 3,21 Restaurant (7,5%). The mining sector itself contributed more than 40% Forestry & % to the economy of East Kalimantan and more than 90% Fishery 4,32 SERVICES of their commodities are exported to foreign countries as a raw commodities. Exports of East Kalimantan decreased from USD 23,3 billion in 2014 to USD 16,4 billion in the following year. Trade of East Kalimantan was dominated by natural INVESTMENT resources such as oil, coal and gas, which contributed In 2016, the main recipients of foreign investment 65,24 percent to the total value of exports. In 2014, the were the sectors of coal mining with total investments value of total imports of East Kalimantan reached USD of USD 442 million, palm oil plantations with USD 374 8,31 billion and decreased to USD 5,50 billion in the million and crude palm oil processing with USD 95 following year. However, there was still a trade surplus million. In the same year, the largest receiving sectors of of USD 10,9 billion in 2015. In the last few years, East domestic investment were palm oil plantations with total Kalimantan has not only been an exporter of oil and gas investments of USD 164 million, crude palm oil processing but also an importer of the same products. In 2015, the with USD 137 million and mining with USD 55 million. value of imports of oil and gas contributed as much as 75% to the total value of imports. Investment Realisation 3500 DDI FDI 3000

2500

2000

1500

Economic Growth (2014-2016) 1000

Year 500 Description 2014 2015 2016*) (mio USD) 2012 2013 2014 2015 2016 Economic Growth of Province 1,57 -1,28 -0,38 DDI 436,24 1.187,70 952,50 711,90 510 National Economic Growth 5,01 4,88 5,02 FDI 2.014,10 1.335,40 2.145,70 2.381,40 1.139,60 *) estimated Total 2.450,34 2.523,10 3.098,20 3.093,30 1.649,60 The provincial government’s actual expenditures increased from USD 1,84 billion in 2014 to USD 2,24 billion in the following year. Indirect expenditures, such as Economic Resources personnel expenditures, increased from USD 450 million in 2014 to USD 779 million, while direct expenditures Commodities Outlook increased from USD 1,24 billion to USD 1,46 billion over Mining the same period. Within indirect expenditures, personnel expenditures had the largest share with USD 573 million, Chemical while for direct expenditures capital expenditures had the largest share with USD 883 million. Forestry The total average expenditure per capita increased from USD 84,1 in 2014 to USD 88,4 in 2015, of which non- Palm Oil food expenditures contributed 53,98%. The largest post of non-food expenditures originated from housing Oil & Gas and household facilities with USD 29,3, while the major expenditure for food went to prepared food and Tourism beverages with USD 11,55.

15 PROVINCE OVERVIEW

INDONESIA INDUSTRIAL ESTATES DIRECTORY 2018-2019

MALAYSIA Kalimarau Airport Province Sea

3

West Kalimantan 1 Province

Capital City City 1 Main bridge 1 Toll road National road Samarinda Baru Medium road Airport Samarinda Seaport Small road SAMARINDA Railroad Central Kalimantan Province 2 International Airport Semayang Seaport SAM Sulaiman Airport Domestic Airport

International Port Strait Domestic Port / Harbour Existing Industrial Estate Industrial Estate in Development Province

EXISTING INDUSTRIAL ESTATE

1 Kaltim Industrial Estate 2 Kariangau Industrial Zone 3 Muara Wahau Industrial Park

DEVELOPING INDUSTRIAL ESTATE

1 Special Economic Zone Maloy Batuta Trans Kalimantan (MBTK) Sultan Aji Muhammad Sulaiman Airport

LAND ROAD AIRPORT

1.493,68 km of state roads, 1.596,38 km of 12 with Sultan Aji Muhammad Sulaiman provincial road, 9.005,18 km of district roads. Sepinggan Airport (International Aiport), Samarinda Baru, Kalimarau Airport, Paser SEAPORT Airport, and Temindung Airport as the more 15 (Bunyu Port, Sungai Nyamuk Port, Tanjung noticeable ones. Selor Port, Suaren Jetty Port, Kuala Semboja Port, Port, Talisayan Port, Santan TRAIN SYSTEM Port, Loak Tuan Port, Semayang Port, Nunukan N/A Port, Port, Sangkulirang Port, Samarinda Port, dan Tana Grogot Port)

16 EAST KALIMANTAN PROVINCE

View of Samarinda City Liquid Gas Distribution Center in Bontang, East Kalimantan

Tugboat pulling heavy loaded barge of coal cruising Mahakam River in Samarinda, Indonesia

DEVELOPMENT PLAN • Construction of Bontang Refinery with a production • Development of Maloy International port, the first capacity of at least 235.000 barrels of fuel/day. CPO port in Indonesia with a daily CPO handling • Development of Toll road between Balikpapan and capacity of 2.000 tons. Samarinda (99,35km). • Revitalization of Juwata Airport.

STRENGTH CONTACT 1. The province has large plantations and forest resources located in area with total size of 12,63 million hectares. 2. The province is rich in plants with high economic Badan Perijinan dan Penanaman Modal Daerah value commodities such as resin, aloes, nests Provinsi Kalimantan Timur and rattan. Jl. Basuki Rachmat No. 56 3. The province has mineral resources, including Samarinda 75125, Indonesia gold, iron, lead and zinc, limestone, and Telp : +62 (541) 743235 gypsum. Fax : +62 (541) 736446 4. The province has great potential for fishing. e-mail 1 : [email protected] 5. To enhance the development of relevant e-mail 2 : [email protected] industries, the province has developed 8 Website: www.dpmptsp.kaltimprov.go.id special economic zones. Bidang Promosi Penanaman Modal Jl. Basuki Rachmat No. 56 Samarinda 75125, Indonesia Fax : +62 (541) 736446

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