PROVINCE OVERVIEW

INDONESIA INDUSTRIAL ESTATES DIRECTORY 2018-2019

Jambi Province Gentala Arasy Pedestrian Bridge in the center of CIty

ambi is located in the eastern part of Central facing the Malacca Strait and the . Its Basic Data strategic location gives the province a direct access Jto Singapore and Malaysia via the Malacca strait. The province is bordered by in the north, South Sumatera Capital: Jambi City in the south, and in the west and Bangka Belitung in the east. Administratively, the province Major Cities: is divided into nine regencies and two municipalities with : 87.132 inhabitants Jambi city as its capital. The province’s vision is to realize an orderly, pleasant, Size of Province: 50.160,05 km2 tenacious, fair and prosperous Jambi by 2021 by improving good governance, human resources, and competitiveness Population: through economic empowerment of the community. The (1) Province : 3.317.034 inhabitants provincial government is also improving the accessibility (2) Province Capital : 576.067 inhabitants and quality of its public infrastructure as well as sustainable energy and natural resources management. Salary (2018): Jambi has abundant natural resources. Its fertile The provincial monthly minimum wage : land is very suitable for agriculture and plantations of, USD 166,20 e.g. rubber (annual production of 240.150 tons), palm oil (898.240 tons), coconut (119.340 tons of virgin coconut oil), as well as cinnamon (69.650 tons), and tea (5.600 tons). To develop this sector further, the government is setting up an agriculture technology park for palm oil and Educational Attainment cattle in Tanjung Jabung Timur. Moreover, the province’s DIPLOMA Undergraduate Postgraduate potential in the energy sector is also tremendous. Jambi’s 1,96% 2,72% 0,15% oil deposit is 450 MSTB, the gas deposit 13,7 BSCF, while VOCATIONAL coal deposit is 1,5 billion tons. Its hydro power potential is % 1,56 Never attending 420 MW and its geothermal potential is 594 MW. school Moreover, fishery output in Jambi could reach 114.036 7,59% tons annually. Particularly, the mangrove areas in east part of the province have great economic potential as SENIOR they functioned as nursery and spawning ground for 16,67% Not graduated from Elementary fishes, prawns and other sea organisms. For example, % as ’s second biggest producer of Pangasius 21,40 Junior fish after , Jambi produced 51.718 tons in 17,83% 2013 . To feed the growing fish farming industry’s demand and lower production cost, the provincial government supports innovation in the use of seaweed as substitutes Elementary % for fish pellets. 30,12

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ECONOMY Subsistence/common vocation With economic growth of 7,35%, Jambi had the highest of Population growth in Sumatera in 2014. However, the growth plunged to 4,21% in the following year, which is below the national level in 2015. In 2015, GRDP of Jambi was USD 11.48 billion as it accounted for 1,33% of national GDP. 92,30% % Trading, Hotel and 3,67 Restaurant The province is highly dependent on the primary sector Agriculture, with agribusiness and mining with total contribution of Veterinary, % SERVICES 50% to the GRDP in 2015. Therefore, changes in these Forestry & 4,03 sectors is significantly reflected in the province’s overall Fishery growth. With the exception of corn, agricultural output decreased in 2015. As Jambi’s agricultural products are mostly exported in raw form, the sector’s revenue is prone to the volatility of the international market and currency INVESTMENT fluctuations. Meanwhile, the manufacturing sector In 2016, total investment decreased slightly compared contributed about 11% to GRDP in 2015. The number of to the previous year. In this year the largest investments large and medium-sized manufacturing companies in by foreign investors were made in the chemical (22% of Jambi declined from 104 in 2012 to 98 in 2014. However FDI) and food (48,5%) industries and in the wood (54,7% in 2015 it increased again to 106 companies. More than of DDI) and food (21,7%) industries by the domestic half of these companies are engaging in food industry investment. including CPO production . Between 2012 and 2016, the top three receiving sectors Jambi’s exports in 2015 amounted to USD 2,63 billion, of foreign direct investment were agriculture (44% of total declined from USD 3,98 billion in 2014. These exports FDI between 2012 and 2016), mining (13%), and retail and were dominated by rubber (SIR) (USD 365 million export reparation (13%), while the top three receiving sectors of value) and pulp (USD 139 million). The main export domestic direct investment were pulp and paper (30 % destinations were Singapore, Thailand, and Malaysia. of total DDI between 2012 and 2016), the wood industry Imports to Jambi decreased from USD 196,8 million in (24%), and agriculture (11%). 2014 to USD 109 million in 2015 with Singapore, Thailand, and China as the main trading partners. Machinery and Investment Realisation transport equipment, along with basic chemical products 4000 accounted for most imports . 3500

3000 DDI FDI 2500

2000

1500

1000 Kayu Aro tea plantation in Kerinci, Jambi 500 Economic Growth of Jambi (2014-2016) (mio USD) 2012 2013 2014 2015 2016 DDI 1445,7 2799,6 907,9 3540,2 3884,4 Year Description FDI 156,3 34,3 0 51,4 107,7 61 2014 2015 2016*) Total 1.602,00 2.833,91 959,39 3.647,97 3.945,47 Economic Growth of Province 4,82 4,44 4,31 National Economic Growth 5,01 4,79 5,02 Economic Resources *) estimated Commodities Outlook

Expenditures of the provincial government grew since Agriculture 2011. In 2015 indirect expenditures were as high as USD 130,5 million and direct expenditure as USD 123,2 million. Food Crops & Plantation Total realized government expenditure was USD 237,4 million in 2014 before increasing to USD 258,4 million in Wood 2015. In 2015 average monthly expenditures per capita Pulp & Paper were USD 62,27 (IDR 840.696), of which around 51% were expenditures for food and the remaining 49% for non- Oil & Coal food consumption.

19 PROVINCE OVERVIEW

INDONESIA INDUSTRIAL ESTATES DIRECTORY 2018-2019

Berhala Strait Riau Province Kualatungkal Seaport

1

West Sumatera Province

Batanghari River Capital City Muarabungo Jambi Port City Airport Sultan Thaha Airport Main bridge JAMBI Toll road National road Medium road Small road Railroad International Airport Domestic Airport

International Port South Domestic Port / Harbour Sumatera Province Existing Industrial Estate Industrial Estate in Development Bengkulu Province OCEAN

EXISTING INDUSTRIAL ESTATE

N/A

DEVELOPING INDUSTRIAL ESTATE

1 Jambi Agro Industrial Park

LAND ROAD Roads : 2447,4 km. Toll Roads : development plan Sultan Thaha airport to build Trans Sumatera Toll Road connecting Tempino, Mendalo, Sungai, Duren, Sengeti and Riau SEAPORT 3 seaports (Talang Duku Port, Kuala Tungkal Port, Muaro Sabak Port)

AIRPORT 3 (Sultan Thaha Airport, Muara Bungo Airport, and Depati Parbo Airport)

TRAIN SYSTEM Currently, Trans Sumatera Railsystem is being Ferry departs from Kuaka Tungkal seaport developed which will pass through Jambi for 200km.

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Aerial view of Kuala Tungkal city

Water Front CIty bridge in Kuala Tungkal Fresh arabica coffee bean from Kerinci

INVESTMENT POTENTIALS 1. Construction of railways betwenn Jambi, Kertapati 9. Construction of a steam power plant of 600MW. and . 10. Construction of a mobile power plant - Gas power 2. Construction of railways between , Muara, plant of 100MW in Sumbagteng (Tanjung Jabung Lembu, Teluk, Kuantan and Muaro. Timur). 3. Construction of railways between Taluk Kuantan, 11. Construction of a steam and gas power plant of Rengat and Kuala Enok. 100MW in Jambi Peaker. 4. Development of Sultan Thaha Airport. 12. Construction of a steam power plant in Tebo 5. Development of Muaro Bungo Airport. (2x200MW). 6. Extension of runway and development of Depati 13. Construction of Hydro Power Plant Merangin-5 Parbo Airport. 23,9MW. 7. Development of Ujung Jabung Seaport. 14. Development of Mendahara Seaport. 8. Development of Kuala Tungkal Seaport. 15. Construction of flood-control infrastructure in Batanghari. STRENGTH

1. Jambi is strategically located in close proximity to Singapore and Malaysia. CONTACT 2. Jambi has abundant natural mineral resources such as oil and coal. 3. There is a strong agriculture and plantation Provincial Government of Jambi sector, especially in palm oil, rubber (SIR). Jl. Jenderal A. Yani No. 1 4. The pulp and paper industry is well established Phone : +62 (741) 66269 in the province. E-mail : [email protected] 5. Jambi province is one of the safest area in Website: www.portal.jambiprov.go.id Indonesia.

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