investment opportunities in east java province - indonesia · east java province has very important...

Investment Opportunities In East Java Province - Indonesia

Potentials and Attractiveness

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Here is East Java Location !

East Java

EAST JAVA PROVINCIAL GOVERNMENT

Pahlawan Street 110 Surabaya

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INDONESIA

- Distance Seoul to Surabaya ± 5.200 km

- Distance Surabaya – Jakarta ±700 km and

Surabaya – Denpasar ± 300 km

- 6 times/day flight frequencies, Seoul-Surabaya

Flight take 6-7 hours via Jakarta/Denpasar/

Singapore.

- 2 hours time difference between East Java -

Indonesia and Seoul - South Korea;

Important Point Before

Making Investment in East Java

1. East Java at Glance 2. Economic Conditions 3. Infrastructure 4. Natural Resources 5. Potentials Market 6. Investment Climate 7. Investment Growth 8. Investment Projects



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EAST JAVA AT GLANCE

Geographic : Land : 47,154 Km2 Sea : 110,000 Km2 Coastal : 1, 902 Km Island : 60 Region : 38 Capital : Surabaya

Year 2010 : Population : 37,476,011 Peoples Density : 803 peoples/km2 Growth : 0,49% p/a Poor : 5,356,300 people (14.23 %)

Central Java

Bali

Surabaya is the capital city of East Java Province East Java Province has very important role as the

main gate for distribution to Eastern Part of Indonesia i.e.: Papua, Kalimantan, Sulawesi etc.

29 Regencies and 9 Cities Land usage distribution: Agriculture: Rice field (26%) and Dry land (24%); Plantation (4 %), Forestry (26 %); Pond/Pool (2 %); Residential/Rural (12%); Others (6% ).

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East Java Macro Economic Indicators

2009 2010 2011

Smt. I Target

GRDP Growth (National)

5.01% 6.68% 7.12% 7.30%

(4.55%) (6.10%) (6.50%) (6.80%)

GRDP in US.$ 78 Billion 91 Billion 51 Billion 100 Billion

GRDP per capita in US.$ 2,700 3,140 3,500 3,700

Inflation (Y on Y) (National)

3.62%

6.96%

4.73% (4.79%)

6,5 %

ECONOMIC CONDITIONS 2



5

0

20

3,926,92

3,8 2,73 4,25 5,58

12,98

5,3 5,762,13

9,18

4,356,43 6,64

10,67 10,077,27

4,34

Tahun 2009

Tahun 2010

Year 2009 Year 2010

Jakarta : 16.20 % East Java : 14.80 % West Java : 14.30 % Central Java : 8.40 %

Ec. Growth

Smt-I 2011

7.12 %

Economic Structure & Contribution to National GDP

GDP Contribution of the Island of Java (Smt 1 Year 2011).

Agriculture

Electric, gas & Dringking water

Transportation & Communication

Mining & Extraction

Construction

Finance, Rent etc

Manufacturing Industry

Trading, Hotel & Restaurant

Other Services

st

6 EAST JAVA PROVINCIAL GOVERNMENT


Source of Statistics Year 2010

38,73 % 10,25

Billion US$ 2009 14,22

Billion US$ 2010

28,21 % 9,57

Billion US$ 12,77

Billion US$ 2009 2010

41,16 % 11,32

Billion US$ 15,98


36,83 % 9,04

Billion US$ 12,37


East Java Export

East Java Import

East Java Non Oil & Natural Gas Export

East Java Non Oil & Natural Gas Import

28% 26%

16%

7%

6% 4% 4% 4% 3% 2%

Molasses Proceccing

Crude Oil

Animal Feed

Palm Oil

Basic Chemical

Other Chemical

Wood Proceccing

Food & Drinks

Textil

Rubber Proceccing

Export

3.91 % 802

Million US$

488 Million US$

2010 2011*

7.14 % 1.12

Billion US$ 1.04

Billion US$ 2011* 2010

Export

Import

*) 1 Semester st



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Artery/Toll Road

North Route: Tuban-Lamongan-Surabaya (218 km)

Centre Route: Ngawi–Jombang–Surabaya (231 km)

South Route: Pacitan–Malang-Banyuwangi (618 km)

Train

Departure Station : 29 Station

Length of rail track : 895.750 km

Airport

International Airport : Juanda, Surabaya

Cargo capacity: 152 million tons

Domestic Airport : Abdul Rachman Shaleh, Malang

Minakjinggo, Banyuwangi

Trunojoyo, Sumenep

Seaport: International Seaport : Tanjung Perak , Surabaya (35 million TEUS power) Domestic Seaport : Tanjung Wangi- Banyuwangi , Tanjung Tembaga, Probolinggo; and 8 more. West Navigation Channel : +25 mil lenght, 100 m width, - 8,5 depth

Toll Road.pptx

Airport.pptx

Airport.pptx

Seaport.pptx

Industrial Estate

1. PIER , Pasuruan (200 Ha)

2. Ngoro Industrial Park (200 Ha)

3. Gresik Industrial Estate (30 Ha)

4. Maspion Industrial Estate (70 Ha)

5. Lamongan Integrated Shorebase

(350 Ha)

Energy

Electricity Power : + 2,100 MW Year 2011

+ 2,750 MW Year 2012

+ 3,500 MW Year 2013

Telecommunication

Excellent cable/wireless network for

international and regional communication

Water Resources

Available from Brantas River Basin &

Bengawan Solo River Basin

Gas Total Need : 1,000 mm ScFD Availability : 489 mm ScFD

Hotel & Hospital in Surabaya International standard hotels in Surabaya : 7 hotels (5 Star) 5 hotels (4 Star) 3 MICE to meeting, incentive, conference and

exhibition. International standard hospital in Surabaya :

6 hospitals



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Rice 10.5 million tonne/year

Corn 57.3 million tonne /year

Cassava 2.7 million tonne /year

Coffee 97,940 tonne /year

Sugar 385 million tonne /year

Cocoa 1,211 tonne /year

Seaweed 218,704 tonne Location : Sumenep

Tuna Fish 3,337 tonne Location : Banyuwangi, Malang, Trenggalek

Cakalang Fish 5,158 tonne Location : Trenggalek, Jember, Malang, Blitar

Kakap 1,498 tonne Location : Gresik, Sumenep, Probolinggo

Windu Shrimp 1,863 tonne Location : Sampang

Layur Fish 3,959 tonne Location : Gresik, Sumenep, Probolinggo

NATURAL RESOURCES 4



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12 million tonnes

ONYX

1.7 billion tonnes

DOLOMITE

531 million tonnes

MARBLE

Baluran forest, Banyuwangi

Majapahit, Mojokerto

Madakaripura waterfall-

Probolinggo

Bromo, Probolinggo

Plengkung, Banyuwangi

Gong Cave, Pacitan



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POTENTIALS MARKET



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Potential Market: Salt, dairy milk, livestock

Field Business Sector: Agriculture; Livestock; Marine and Fisheries; Construction; Manufacture; Trade and Services.

5

Satisfied Investment License Service

Availability of Infrastructure and its Development

Security and Pleasant Region

Availability of Land

Availability of Productive Labour

High Economic Performance

Availability of Raw Material

Government Guarantee

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East Java Government Efforts to enhance investment climate :

1. One stop License provide easy, quick and cheaper service;

2. Availability of skillful, productive and democratic labour;

3. Facilitation of land provision;

4. Maintaining sufficiency of electricity capacity.



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Labour Wage Comparation East Java, West Java & Jakarta

15 EAST JAVA PROVINCIAL GOVERNMENT


Province Minimum Wage (US.$/month)

2009 2010 2011

East Java 108 112 123

West Java 70 130 139

Jakarta 119 124 143

Land Price of Industrial Estate East Java, West Java and Jakarta

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East Java West Java and Jakarta

Indutrial Estate Price

(US.$/m2/month) Industrial Estate JADEBOTABEK

Price (US.$/m2/month)

1. SIER (occupied) 30 – 170 1. Jakarta

139 – 195

2. PIER 47 – 50 2. Depok

3. Ngoro 50 3. Bogor

4. KIG 94 – 167 4. Tanggerang

5. Maspion 77 – 111 5. Bekasi



Total Realization in 1 Semester 2011 compared to 2010 Principle licence : 58 % Realization : 43 %

2008 2009 2010 2011 (Smt I)

DDI 19.91 25.41 41.01 6.57

FDI 23.18 14.05 18.45 27.94

TOTAL 43.09 39.46 59.46 34.51

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10

20

30

40

50

60

70

Trili

un

Ru

pia

h

Investment License

2008 2009 2010 2011

Regional Invest 27.19 38.77 56.26 14.01

DDI 2.78 4.29 9.59 12.62

FDI 4.12 3.8 16.73 8.82

TOTAL 34.09 46.86 82.58 35.45

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10

20

30

40

50

60

70

80

90

Trili

un

Ru

pis

h

Realization

INVESTMENT GROWTH

st

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Interested Business Field Interested Location

Year Project Value

(USD Thousand)

Man Power

Ind (People)

Foreign (People)

1967 – 2005 1,001 34,095,691 344,753 8,659

2006 81 1,447,088 18,789 157

2007 84 851,292 18,038 9

2008 93 2,585,906 40,293 5

2009 96 1,561,787 21,528 -

2010 114 2,053,716 27,922 34

June 2011 56 3,104,418 11,594 3

Total 1,525 45,699,898 482,917 8,867

Performance of Foreign Investment 1967 – June 2011



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49%

14%

11%

7%

4%

2% 2%

2% 2%

1%

6%

Chemical & Pharmaceutical Industry

Electricity, Gas & Water

Food Industry

Metal Industries, Machinery & Electrical

construction

Textile Industry

Four Wheel Motor Vehicle Industry

Non-Metal Minerals Industry

Housing, Office & Industrial Park

Food Crops & Plantation

Others

Surabaya 9% Sidoarjo

5%

Gresik 15%

Pasuruan 6%

Mojokerto 3%

Malang 2%

Tuban 14%

Probolinggo 21%

Banyuwangi 2%

Jombang 2%

Others 21%

NO STATE INVESTMENT (US$ Billion)

PROJECT

1 England 7.39 64

2 RRC 6.21 187

3 Singapore 4.92 154

4 Australia 2.45 40

5 Japan 2.38 142

6 Saudi Arabia 1.57 3

7 South Korea 1.51 205

8 USA 1.32 53

9 Malaysia 1.03 48

10 Netherlands 0.94 58

11 Others 15.44 549

Total 45.70

1,525



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England 16%

RRC 14%

Singapore 11%

Australia 6%

Japan 5%

Saudi Arabia 4% South Korea

3%

USA 3%

Malaysia 2%

Netherlands 2%

Others 34%

South Korea Company in East Java

LICENCE NO.

PROJECT INVESTMENT VALUE MAN POWER

PRINCIPAL LICENCE (IP) 205 1.5 Billion US.$ -

FIX BUSSINESS LICENCE (IUT) 70 690.7 Million US.$ 16.706 People

Interested Bussiness

NO SECTOR FIELD OF BUSSINESS

1 Primary Chicken farms, vegetable and fruits seedling

2 Secondary Food industry, textile, plastic, wood, metal and chemical.

3 Tertiary Trade and other services

Interested location : Surabaya, Sidoarjo, Gresik and Pasuruan.



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1. Elevated Railways System Project

2. Legundi – Bunder Toll Road Project

3. Sendang Biru Port Development

4. Tanjung Tembaga Port Development

1. Industrial Estate Development

2. Terminal of Wood Processing & Raw Material

3. Hazardous Industrial Waste Treatment

Facilities

4. Integrated Garbages Treatment Site

8 INVESTMENT PROJECTS



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1. Dairy Milk Industry;

2. Cassava Flour Industry;

3. Corn flour Industry;

4. New Sugar Factory Establisment;

1. Carrier Ship Facilitation

2. Lobster Nursery

3. Shrimp Cultivation

4. Grouper Fish Cultivation

5. Seaweed Cultivation



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1. Marble Industry

2. Dolomite Mining Business

3. Salt Procesing Industry

1. Amuzement Park, Kamal Madura

2. Touris Train, Batu-Malang



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Thank you

감사

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Please

Come and Invest in East Java

http://www.bpm.jatimprov.go.id/

investment opportunities in east java province - indonesia · east java province has very important...

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