Maloy Industrial Estate and International Port

Maloy International Port and Industrial Estate (also known as Kawasan Industri dan Pelabuhan Internasional Maloy/ KIPI Maloy) is located on Kaliorang dan Sangkulirang District, East Kutai Regency with total area of 5.305 hectares. KIPI Maloy has been planned to be a centre of oil palm based industry, oleochemical industry, and its derivatives.

The first phase of development or KIPI Maloy 1 will take place on 1.000 hectares area with total estimated investment value about IDR 2,6 trillion. KIPI Maloy 1 is divided into 6 (six) industrial zones and also furnished with integrated supporting facilities such as palm oil refineries that connected to CPO (Crude Palm Oil) outlet international port by piping system.

In 2030, KIPI Maloy will be developed as an international centre of oleochemical based industries, including upstream/primary industries and downstream/secondary and tertiary industries.

Its strategic positiion in Indonesian Sea Line (ALKI) II leads this industrial estate to have special advantages to become Indonesian sea toll and country hub for trade and traffic in the middle of archipelago, especially

between Kalimantan and Sulawesi island.

Therefore, with the development of international port and industrial estate in Maloy, this area expectedly will have plenty roles in national and international trade that connects traffic from North and East of Indonesia. In other side, this area will

TO CHINA & JAPAN

TO AUSTRALIA & PACIFIC

KIPI Maloy Geological Position

significantly reduce the transport cost and also dependency to our recent country hub in Singapore.

KIPI Maloy is also surrounded by many oil palm and coal mining companies in Berau and East Kutai Regency. This two regencies are the main contributor to East Kalimantan’s total production of coal and oil palm commodities. They contribute more than 45% of total production of coal and CPO in East Kalimantan.

Geological Condition in Maloy is mainly covered by podzolic, latosol, and litosol soil. It has tropical climate with average temperature between 24 to 32oC and humidity level is about 85 to 87 %. Main vegetation is dominated by mangrove, especially spreaded along Kaliorang Coastline.

3D perspective of Maloy Port and Industrial Estate

Cluster Area (hectares)

Study & Planning

Infrastructure Development

IndustrialDevelopment

KIPI Maloy 5.305 Ha 2009 – 2012 2011 – 2014 2013 – 2033

Trans Kalimantan Economic Zone 21.195 Ha 2012 – 2013 2013 – 2015 2014 – 2054

Batuta Chemical Industrial Park 1.000 Ha 2012 – 2013 2013 – 2015 2014 – 2024

Maloy Batuta Trans Kalimantan Economic Zone’s Clustering Scheme

KIPI Maloy is a part of Maloy Batuta Trans Kalimantan Economic Zone (MBTKEZ). The designated special economic Zone in East Kalimantan. This SEZ is divided into 3 main clusters with specific commodites such as oleochemical based industry, mineral, and chemical industry.

The position and clustering zone of MBTKEZ is shown on the graphic below.

Planned Industrial Lots in KIPI Maloy

Planned Industrial Zoning in KIPI Maloy

The zoning of industrial lot area in KIPI Maloy has been estimated with minimum land requirement. The main lots were divided into ; oleochemical lots, food based lots, non food based lots, and other industries. The table below describes more detail about lot classifying and zoning in KIPI Maloy.

No Industry Capacity % CPO Use

Estimated area

(hectares) Lot

1 Basic Oleochemical a. Fatty Acid

2.300.000 tons/year

40% 10 2 lots x 5 Ha b. Fatty Alcohol 10 2 lots x 5 Ha c. Purified Glycerine 10 2 lots x 5 Ha

d. Lain-lain 16 5 lots x 3 Ha 2 Biodiesel 2.300.000

tons/year 40% 46 10 lots

3 Food Based a. Cooking Oil 290.000

tons/year 5% 9 2 lots x 5 Ha b. Margarinee & Shortening c. CPO

290.000 tons/year 5%

5

8 lots x 5 Ha

d. Pal mega 5 e. Palm Frying Shortening 5 f. Palm Ghee 5 g. Beta carotene 5 h. others 15

4 Treatment Products a. Surfactant

580.000 tons/year 10%

5

6 lot x 3 Ha

b. Detergent 3 c. Sop 3 d. cosmetic 3 e. others 6

5 Oil Palm Side Products a. Briquette

600 tons 6 1 lot x 5 Ha

b. active carbon 2 lot x 0,5 Ha c. fodder

1400 tons 6

2 lot x 3 Ha

d. compost (atau 4 lot x

0,5 Ha) e. Particle Board

2300 ton 7

1 lot x 3 Ha e. Moulded Particle Board 4 lot x 0,5 Ha f. Plywood 2 lot x 0,5 Ha g. Fibre 2 lot x 0,5 Ha

6 Other industries a. machinery - 3 1 lot x 3 Ha b. packing plant -

2 4 lot x 0,5 Ha

b. banana 1,5 3 lot x 0,5 Ha c. others 1,5 3 lot x 0,5 Ha

188 Ha

Time Working Cost

1st year

Land Acquisition IDR 58,687,500,000.00 Land Surveying IDR 391,250,000.00 Land Clearing Phase 1 IDR 292,500,000,000.00

Total cost IDR 351,578,750,000.00

2nd year Land Clearing Phase 2 IDR 292,500,000,000.00 Primary Road IDR 330,500,000,000.00

Total cost IDR 623,000,000,000.00

3rd year

Main Gate IDR 15,000,000,000.00 Secondary Street IDR 165,200,000,000.00 Environmental street IDR 69,200,000,000.00 Office IDR 30,000,000,000.00 Power Plant Transmission IDR 258,600,000,000.00

Total cost IDR 538,000,000,000.00

4th year

Water Treatment Plant IDR 110,340,000,000.00 Security Centre IDR 18,000,000,000.00 Fire Station IDR 45,000,000,000.00 Fire System IDR 50,500,000,000.00 Gas Line IDR 363,000,000,000.00 Sewage Treatment Plant IDR 37,405,000,000.00

Total cost IDR 624,245,000,000.00

5th year

Integrated Waste disposal IDR 20,300,000,000.00 Telecommunication IDR 24,145,000,000.00 Mosque IDR 3,600,000,000.00 Public service/Retail IDR 294,600,000,000.00 Hospital IDR 80,000,000,000.00 Green Area IDR 89,488,000,000.00

KIPI Maloy 1; Facilities and Funding

KIPI Maloy 1 has total allocated development area of 1.000 hectares. In KIPI Maloy 1, the Government plans to build an international port with 15 meters of sea depth. This port can be berthed by huge ship with total mass up to 100.000 DWT.

From those area, Land Use Plan are divided to industrial estate, CPO international port, access road, mangrove and green areas. For industrial estate itself, there are 587,18 hectares that has been allocated.

For KIPI Maloy I, total cost for its development phase is about IDR 2,6 trillion. The phase itself will be conducted in 5 development plans that will take one year duration each other.

Planned Facilities

Estimated Cost

3D perspective of KIPI Maloy

KIPI Maloy 1 : Existing Condition

The Goverment also build some facilities to support industrial estate activities and in other way to make it more attractive to private investment. Below are some facilities that have been built or still in construction phase;

Access Road and Intra-Industrial Estate Road

A rigid pavement access road is still being constructed. At present, total length of this road has reached 17 kilometers. While for intra industrial estate road, the Government has conducted land clearing, path loss, and geometrical adjustment.

Access road

Intra industrial estate road

International Port (Sea Side)

Some public and social facilities have been built in 115,38 hectares area such as; mosque, administrastion office, workshop, fire station office, security center, and Environmental road

Facilities in Maloy Port and Industrial Estate

Water treatment plant and Raw Water System Water treatment installation is built with capacity of 200 liters/second. Potential capacity from Sekerat water system is 500 liters/second. KIPI Maloy location is 20 kilometers away from the system.

Advance development plan: 1. Maloy International CPO Port 2. 12 CPO refineries with capacity 36.000 tons 3. Water pipe network with 23 kilometers length 4. SPAM Maloy 5. Finishing access road construction 6. Techno Park and University 7. Regulation Support: § Coal for power plant, § Mineral processing and smelter, § Mining company to support power plant

KIPI Maloy 1 : PT. Indonesia Plantation Synergy

Success Story

KIPI Maloy has a unique and special potential that attract both domestic and foreign investors.

At this time, some companies especially oil palm plantations have been operated nearby KIPI Maloy area. Some of those, also integrated with KIPI Maloy and built some supporting infrastructures.

One of company that now been operating in KIPI Maloy area is PT. Indonesia Plantation Synergy (PT. IPS). PT. IPS has some integrated infrastructure with KIPI Maloy. They have planned some facilities for their commercial purposes and industrial estate operational, with total invesment value of US$ 97 million.

The facilities that have been built by PT. IPS during their first development phase such as; Oil Palm Factory with capacity 60 tons ffb/hours, palm kernel factory with capacity 100-300 tons/day, CPO refinery with capacity 8.000 tons, organic fertilizer factory, and also bio gas power plant 3 megawatt capacity, office buildings, housing, sport and leisure, 45 hectares dam, and special purposed port.

In the next phase, PT. IPS will build CPO refinery mill (2.000 tons/day), Oil Palm factory (120 tons/hours), biogas power plant (11 megawatt), organic fertilizer packing plant, oil core factory (500 tons/day), refineries (40.000 tons), feritilizer mixing plant, biodiesel factory, briquette and spitting plant, with total investment up to US$ 208 million.

KIPI Maloy 1 International Port

KIPI Maloy 1 International Port

Maloy Port is expected to be international class port in East Kutai Regency. With its strategic area that bordered directly to Makassar strait and located on Indonesian Sea Line (ALKI II), Maloy Port is also granted with an adequate sea level that can be berthed by huge mass ship. Nearby the harbour, the sea depth is measured between 15 to 18 meters. So that, this location is very potential to be developed as CPO (crude palm oil) outlet, new metropolitan, and downstream industry center.

The port itself is planned with total area of 115,38 hectares, that will be furnished with administration office and refinery zones. Office zone will be developed on 10,00 hectares area such as: port office, fire station buiilding, CPO terminal, CPO workshop, mosque, public facilities, CPO equipment warehouse, CPO terminal parkzone, CPO terminal access road, and green area.

Land Use Plan

Zone 1: Current Existing Maloy Port, this port is still operating but only can be berthed by low mass ship (under 5.000 DWT). This port needs some improvement in the near future.

Zone 2: The planned location of CPO international port. Sea side area has been built in 2013. In 2014, the government had build 200 meters length causeway. Piling for harbour and trestle has been planted (still 200 meters length).

Zone 3: cargo and container port

Zone 4: the planned location of coal port and terminal that connected with Miang Besar Island.

Zone 5: the current port for fishery activities in Bual-Bual

Development Plan Estimated Cost

} CPO Terminal

IDR 400 billion (allocated IDR 32 billion)

} Container Terminal

ü Phase 1 : IDR 682 billion ü Phase 2 : IDR 572 billion ü Phase 3 : IDR 580 billion ü Phase 4 : IDR 338 billlion

Oil Palm Potential

Preparing Maloy as international outlet of CPO based product also being supported by the availability of oil palm plantation areas, especially which operated in East Kutai and Berau Regency.

Until 2014, there are 58 factories as CPO’s supplier, that can produce about 2.880 tons ffb/hour. Total area of oil palm’s plantation in East Kalimantan is approximately about 1.020.413 hectares with total production of CPO that reached 1.925.614,4 tons. Especially in East Kutai and Berau regency, there are 17 CPO factories in East Kutai that can produce 2.700.000 ton of fresh fruit bunches and 594.000 ton of CPO. While in Berau, 6 CPO factories have produced 1.215.000 ton of fresh fruit bunches and 267.300 ton of CPO.

The goverment has planned to develop the plantation area in East Kalimantan up to 2 million hectares in 2018.

Oil Palm Production in Berau, 2014 Oil Palm Production in East Kutai, 2014

Oil Palm Production in East Kalimantan

Coal Mining Potential

Current electricity capacity with 6 network systems is 467,19 MW, but it still not reach all the remote and hinter areas yet. Electrificacy ratio in 2014 reached 70,31% while Regional Mid-term development Plan has planned the ratio will be on 80% in 2018.

The development of industrial estate also need elctricity supply in huge number. Therefore, this will be a good opprtunity to invest.

East Kalimantan is well-known as one of the biggest coal resources in Indonesia. Until 2014 there are 252.976.092,31 tons that produced by coal factories in East Kalimantan. Especially in East Kutai and Berau regency, the closest area to KIPI Maloy.

Coal Production in East Kalimantan, East Kutai, and Berau