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S I N E I I S R T E R H Y IS O F F D M N AR S A INE AFFAIR

INVESTMENT OPPORTUNITIES AT INTEGRATED MARINE AND FISHERIES CENTER

MINISTRY OF MARINE AFFAIRS AND FISHERIES OF REPUBLIC OF

INVESTMENT OPPORTUNITIES AT INTEGRATED MARINE AND FISHERIES CENTER BIAK

MINISTRY OF MARINE AFFAIRS AND FISHERIES OF REPUBLIC OF INDONESIA TABLE OF CONTENT

PREFACE 1 INTEGRATED MARINE AND FISHERIES CENTER 2 PROFILE OF BIAK 4 MARINE AND FISHERIES POTENTIAL IN BIAK NUMFOR 6 INTEGRATED MARINE AND FISHERIES CENTER OF BIAK 8 SKPT BIAK DEVELOPMENT ROADMAP 10 WHY INVEST IN SKPT BIAK 12 INVESTMENT OPPORTUNITIES 14 FISHERIES BUSINESS SUPPORTERS 16 iv GOVERNMENT’S SUPPORT 18 SKPT BIAK MANAGEMENT SYSTEM 20 CONTACT 22

MINISTRY OF MARINE AFFAIRS AND FISHERIES OF REPUBLIC OF INDONESIA PREFACE

ne of the problems faced by Indonesia is uneven Biak city area, more precisely the Fish Landing Base (PPI) of regional development. This is particularly true Fandoi in is very suitable to be used in the eastern territory, which is barely touched as the core zone of SKPT activities. This is supported by the Oby the national development programs. Under availability of several facilities such as dock, management the vision of “Building from the Outskirts” President Joko office, quarantine office, warehouse, fish market, Fish Widodo wants to strengthen regional economy, so as to Landing Site, Integrated Cold Storage, Ice Flake Machine, explore the potential and advantages of the regions. This tap water installations, electricity and telecommunication will eventually create new economic growth centers in the networks, potential fish resources as well as support and country. commitment from the local government. As one of the efforts to realize this vision, the government With the presence of infrastructure and facilities, the high through the Ministry of Maritime Affairs and Fisheries (KKP) potential of marine and fisheries commodities, as well as built 20 Integrated Marine and Fisheries Centers (SKPT) in support from the government, SKPT has high potential to various regions in Indonesia. The government expects the grow and become a viable investment site. The government 1 SKPT to serve as an economic driver in the region which is provides opportunities for businesses to invest in SKPT Biak. based on the maritime and fisheries sector. In addition, this This pocket book is expected to provide initial information proves that Indonesia as a maritime country is no longer for investors who want to do business in the maritime and turning its back on the sea. fisheries sector in Biak. Biak is one of the SKPT sites prepared by the government. Jakarta, October 2018 Biak was chosen because this region is located in the national strategic area and has superior commodities in the maritime and fisheries sector. With the presence of SKPT, the superior fishery resource potential in Biak Numfor Regency, such as tuna, skipjack tuna, narrow-barred spanish mackarel, and grouper is likely to grow. INTEGRATED MARINE AND FISHERIES CENTER Ministry of Marine Affairs and Fisheries has launched Integrated Marine and Fisheries Center (SKPT) in small islands and border areas since 2015. SKPT is a regional-based, integrated upstream and downstream marine and fisheries center.

2 Facility and infrastruc- Institutional ture construction & development development SKPT Concept Marine and fisheries Sustainable marine business development and fisheries resources management

MINISTRY OF MARINE AFFAIRS AND FISHERIES OF REPUBLIC OF INDONESIA SKPT DISTRIBUTION Based on Decree of Minister of MAF No. 51/2016

Sebatik, North Kalimantan Natuna, South Buton, Tahuna, Riau Islands Southeast Sulawesi North Sulawesi Anambas Islands, Riau Islands Talaud, , Sabang Municipal, North Sulawesi North Mollucas Aceh Biak, Sarmi, Simeulue, Papua Aceh Mimika, Mentawai, Papua West Sumatra Tual, Enggano Island, Mollucas Bengkulu Merauke, East Sumba, Papua East Nusa Tenggara Rote Ndao, Moa, Saumlaki, East Nusa Tenggara Mollucas Mollucas 3

DEVELOPMENT SECTOR SKPT GOALS

Sea Space Fisheries business system Aquaculture Local economic and the Management development people’s income growth

Competitiveness Capture Fulfillment of fish Improving the welfare of Improvement Fisheries consumption for food security fisheries business players PROFILE OF BIAK NUMFOR REGENCY Biak Numfor Regency GENERAL DESCRIPTION comprises of two large Area North islands, namely Biak and Boundary and Pacific Ocean Numfor, and 42 small East islands located in the north Pacific Ocean of Papua. Thanks to its West strategic position which Manokwari South Regency Yapen Strait 4 directly borders the Pacific Ocean, Biak Numfor has the potential to become a trade hub in the eastern territory U of Indonesia. B T Has 19 Total area S districts 2,269.84 Km2

MINISTRY OF MARINE AFFAIRS AND FISHERIES OF REPUBLIC OF INDONESIA Distance from Jakarta to Biak Population Flight schedule: 141,801 people 1 2 (66% are working- a day from a day via age population) Jakarta Male 73,228 people 1 Female a day via Makassar Km2 3,278 68,573 people BASIC FACILITIES AND INFRASTRUCTURE Electricity Network Biak Numfor’s Economy 21 MW 56 MW Continue to Grow 6 a week from 5 Installed (Target (trillion IDR) 3.50 Power in 2018) 3.36 Jakarta 3.16 Frans Kaisiepo 3 Hospitals 3.00 Airport 2.80 Fishermen Vessel Within range Clean Water of Telkomsel Tap Water 6,019 6,694 Network Ground households units Water Biak Port Fish capture device 5 National 5,321 Banks 6 Hotels 2012 2013 2014 2015 2016 Source: Central Bureau of Statistics units MARINE AND FISHERIES POTENTIAL IN BIAK NUMFOR Marine and fisheries sector is the largest contributor to the economy of Biak Numfor Regency. The regency has abundant fisheries resources because it is located in the RI 717 Fisheries Management Area 6 (WPP) which consists of Cendrawasih Bay and Pacific Ocean. In addition, there is an extensive area for aquaculture in the region.

MARKETING Live lobster, Octopus, Fancy fish, Trevally, Live Tuna loin and Mangrove Fresh Baby frozen lobster Halfbeak, Tuna, Red Snapper, Kerapu Fresh Skipjack Crab Rabbitfish Tuna Frozen Skipjack White Snapper, Tuna Tuna Sandfish Jakarta, Denpasar, Surabaya Makassar, Makassar, Makassar Denpasar Jakarta, Jakarta Jakarta Surabaya Surabaya Surabaya, Denpasar

MINISTRY OF MARINE AFFAIRS AND FISHERIES OF REPUBLIC OF INDONESIA CAPTURE FISHERIES AQUACULTURE PRODUCTION ZONE PRODUCTION ZONE o West Biak o Yendidori o North Biak o Yendidori o Aimando o Warsa o Warsa o West Biak o Islands o East Biak o Biak Kota o East Numfor around Biak o Padaido o East Biak o West Numfor o East Numfor o West Numfor Total water area Sustainable production Total aquaculture Production Potential potential area 2 o Seaweed 18,442 Km Ha 603,688 2,381,408 1,2 tonnes/year tonnes/year 7 o Grouper, rabbitfish, Utilization lobster, sea 336,618 cucumber sandfish, tonnes/year (56%) mangrove crab 2,2 tonnes/year Leading commodities Komoditas unggulan

Pelagic Demersal Coral fish Shells/Sandfish Seaweed

Grouper Pearl Oyster INTEGRATED MARINE AND FISHERIES CENTER OF BIAK The government has appointed Fandoi Fish Landing Base (PPI) area as a site for Integrated Marine and Fisheries Center (SKPT) of Biak. The location is quite strategic as it has road access and complete infrastructure support. 8

EASE OF ACCESS

2 Km from the 1.1 Km from city center of Biak Biak Port

3 Km from Frans 0.5 Km Km from Kaisiepo Airport Pertamina Fuel Depot

MINISTRY OF MARINE AFFAIRS AND FISHERIES OF REPUBLIC OF INDONESIA PPI FANDOI AREA • Located in Fandoi Village, • Facilities: Biak Kota District Dock Tap Water Network Total Warehouse Electricity Network area 7,5 Ha 9 Management Fuel Office Station

Telecommunication Fish Market Network

Ice Flake Fish Landing Machine Site

Integrated Cold Quarantine Storage (ICS) Office of 200 tonnes THE DEVELOPMENT OF FISHERIES SKPT BIAK AREA & EXPORT GATEWAY

DEVELOPMENT Biak Fisheries ROADMAP Industrial Estate The government has prepared a roadmap for the o Coordination with the Provincial Government and the Regency development of Integrated Marine and Fisheries 2017 Center (SKPT) of Biak. SKPT Biak is expected to Government of Biak o  become an integrated fisheries area by 2025 Marine and Fisheries Business & which will serve as an export gateway for fisheries Investment Promotion 10 products in the eastern territory of Indonesia. o Provision of basic 2018 infrastructure (electricity, water, road, port, and offices) o Open up private investment o Relocation part of fisheries industries from Surabaya, Bitung, Jakarta, 2019 Makassar o Inter-SKPT and fisheries industrial estates connectivity throughout Indonesia The development of Biak 2025 Fisheries Industrial Estate

MINISTRY OF MARINE AFFAIRS AND FISHERIES OF REPUBLIC OF INDONESIA CAPTURE FISHERIES Government’s Investment o Procurement of 3 GT vessel o Fish Landing Base (PPI) o Dock construction Export Gateway Private investment of fisheries o Procurement of vessel &fish capture device

AQUACULTURE o Coordination on regulation 2017 Government’s Investment with relevant ministries o Provision of seed, food and medicines for Tilapia o The development of seaweed farming Private Investment o Export port o Seaweed farming, oyster, Floating Net Cage (KJA) o Loading and warehouse areas 11 o Area security assurance 2018 o Marine and Fisheries Business & PROCESSCING INDUSTRY Investment Promotion AND MARKETING Government’s Investment o Direct export to , China, o Integrated Cold Storage (ICS) of 200 tonnes Korea, Taiwan, Hong Kong, o Provision of ice flake Singapore, and the Philippines o Cold chain facility (cool box, chest freezer, 2019 refrigerator vehicle) o Regulation on export facility o Tuna loin mini plant o The provision of business area for o Fandoi and Bosnik Fish Markets the private sector Private Investment o Cold Storage of 500 tonnes Export Gateway from Biak to potential o Ice factory countries for fisheries products 2025 o Fish and seaweed processing o Freezing, canning industries, etc THE ADVANTAGES OF SKPT BIAK WHY INVEST IN • High fish resource potential SKPT BIAK 603,688 tonnes/year Biak Numfor Regency lies at a strategic position Pemanfaatan as it directly borders the Pacific Ocean. In 336.618 addition to having high marine and fisheries tonnes/year (56%) potential, Biak Numfor is planned to become an export gateway for products from the • Set to become an industrial estate eastern territory of Indonesia, especially to the and export gateway from the eastern Pacific countries. territory of Indonesia 12 • Marketing access is wide open Export: China, Japan, the Philippines, Korea, Taiwan, Hong Kong, Palau Domestic: Bitung, Makasar, Surabaya, Jakarta, Bali • Near fisheries raw material source • Strategic location in the city center

MINISTRY OF MARINE AFFAIRS AND FISHERIES OF REPUBLIC OF INDONESIA BUSINESS & INVESTMENT OPPORTUNITIES • Capture Fisheries • Aquaculture

Pelagic Demersal Coral reef Grouper White Snapper Seaweed

• Processing & Marketing • Sea Tourism - Live fish storage East (Biak I.) - Integrated Cold Storage (ICS) Sagara Bonik Indah Beach, - Ice factory North (Biak I.) Saruri Beach, Marraw Korem Beach, Wari Beach, Beach, Anggaduber 13 U Miosrurbu Beach Beach, Bahari Beach B T South (Biak I.) Samber Beach, S Adoki Beach, Yendidori Beach South (Biak I.) Padaido I. Pantai Samber, Padaido Atas Marine Park Pantai Adoki, Pantai Yendidori INVESTMENT POTENTIAL BUSINESS SECTOR OPPORTUNITIES • 5 GT Vessel Remarks: The development of Integrated Marine and Investment 497.35 million IDR Fisheries Center (SKPT) of Biak opens up a Production Cost number of investment opportunities. From (160 days) 76 million IDR the financial aspect, these business sectors are a viable investment. In addition to high RoI: Return on profit, its payback period is relatively short. Investment (per annum) 31.8% 14 IRR (per annum) 24.6%

Payback Period 2 years 1 month

MINISTRY OF MARINE AFFAIRS AND FISHERIES OF REPUBLIC OF INDONESIA • Fish Freezing • Live Fish Storage • Grouper Culture 25 billion IDR 2.30 billion IDR 849.55 million IDR

74.50 billion IDR 17.79 billion IDR 1.62 billion IDR

12.7% 112.7% 38.2% 15 80.2% 96.5% 26.4%

6 years 7 months 1 year 2 months 2 years 1 month FISHERIES BUSINESS SUPPORTERS Fisheries business in SKPT Biak is supported by a number of facilities such as logistics, shipping, airline, banks, telecommunication operators and the working unit of the Ministry of Marine Affairs and Fisheries.

SHIPPING & LOGISTICS SERVICES

Shipping Line Shipping Airline

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PT. Salam Pacific Pelni Indonesia Line

PT. Pelayaran PT ASDP Garuda Indonesia Tempura Emas Tbk

PT. Cargonesia Ministry of Transport Sriwijaya Utama Trans (Pioneer Vessels)

MINISTRY OF MARINE AFFAIRS AND FISHERIES OF REPUBLIC OF INDONESIA OTHER SUPPORTING FACILITIES

Bank BPD Bank BRI

Directorate General of Customs 17 Bank BTN Bank Mandiri Bank Papua

Fish Quarantine Marine and Fisheries Resource Working Area Monitoring Station GOVERNMENT’S SUPPORT The government has introduced a number of policy packages to boost investment, including in the marine and fisheries sector. These policy packages are among others, business permit application facility and fiscal incentives

FISCAL INCENTIVES Tax Allowance (GR No.18/2015)

18 Import Duty (FMR No.76/PMK.011/2012) 30% of investment value.

Import duty exemption Include 143 of up to 4 years: business segments Requirements: User of locally produced machineries (min. of 30%) investment value export-oriented Industry producing goods job creation &services. local content level the project site is located outside Java

MINISTRY OF MARINE AFFAIRS AND FISHERIES OF REPUBLIC OF INDONESIA Construction Direct Investment Facility (Decree of Head of BKPM No.41/2018)

Construction can be commenced Available in 47 19 prior to obtaining a permit industrial estates

EASE OF BUSINESS Online integrated licensing system

Go to oss.go.id INVESTMENT OPERATION COOPERATION SCHEME

Operation Cooperation (KSO) • Jointly use assets/ business right Investor • The term of expiry of the KSO is based on the Asset owner term of cooperation not the BEP

20 SKPT BIAK MANAGEMENT SYSTEM

One of the cooperation schemes applicable in the SKPT Biak is Operation Cooperation (KSO) through jointly using assets. The term of expiry of the KSO is based on the term of cooperation not the rate of return.

MINISTRY OF MARINE AFFAIRS AND FISHERIES OF REPUBLIC OF INDONESIA BUSINESS EXPENSES

Land Water Waste processing lease government’s rate government’s rate

Fuel Electricity Telecommunication government’s rate government’s rate government’s rate

2 KSO TYPES

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KSO with a separate legal entity KSO without establishing a Cooperation between the owner separate legal entity: of assets and investor through 1. Each party asserts control establishing a business entity/ over KSO operations/assets alliance (jointly controlled) 2. Or, the implementation of KSO by one of the parties CONTACT Investment activities in Biak Numfor Regency is a lot easier now thanks to the presence of One-Stop Integrated Service and Investment Office (DPM-PTSP).

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Investor BKPM & DPM-PTSP

applying for permit

MINISTRY OF MARINE AFFAIRS AND FISHERIES OF REPUBLIC OF INDONESIA ONE-STOP INTEGRATED SERVICE AND INVESTMENT OFFICE OF BIAK NUMFOR REGENCY Jl. Ahmad Yani No 29, Kabupaten Biak Numfor, Papua Telp +62981-21264 Fax +62981-24067

ONE-STOP INTEGRATED SERVICE OF MINISTRY OF 23 MARINE AFFAIRS AND FISHERIES Ministry of Marine Affairs and Fisheries Office Gedung Mina Bahari IV, Lantai 1 Jalan Medan Merdeka Timur No. 16 - Jakarta Pusat 10110 Telp. (021) 3519070 EXT. 2826 Email: [email protected] Homepage: www.ptsp.kkp.go.id

Head of Fisheries Office of Biak Numfor Regency Head of Integrated Marine Affairs and Fisheries (Effendi Igirisa 08124840529) Center of Biak Development Team (Jhony Haryono 08128585595)

25 M

S I N E I I S R 26 T E R H Y IS O F F D M N AR S A INE AFFAIR

DIRECTORATE GENERAL OF PRODUCT COMPETITIVENESS

Gedung Mina Bahari 3 Lt. 12 Jl. Medan Merdeka Timur No.16, Jakarta 10110

MINISTRY OF MARINE AFFAIRS AND FISHERIES OF REPUBLIC OF INDONESIA