PRESENTATION OFTHE HEAD OF REGIONAL INVESTMENT AND PERMITTANCE BOARD OF EAST KALIMANTAN

POTENTIAL, OPPORTUNITY & INVESTMENT POLICY IN EAST KALIMANTAN PROVINCE

MAP OF INDONESIA MAP OF KALIMANTAN MAP OF EAST KALIMANTAN

Samarinda

BalikpapanPenajamTanah Grogot

SendawarTenggarong

BontangSengata

Tanjung Redeb

Tanjung SelorTarakanMalinauTana TidungNunukan

Samarinda

BalikpapanPenajam

Tanah Grogot

Sendawar

Tenggarong

Bontang

Sengata

Tanjung Redeb

Tanjung Selor

TarakanMalinauTana Tidung

Nunukan

Total Area : 21.798.598 Ha

Consist of :- Land : 19.695.876 Ha- Sea (limit 4-12 Mil): 2.102.721 Ha

1. BALIKPAPAN2. SAMARINDA3. BONTANG 4. TARAKAN DISTRICTS : 136 VILLAGES : 1.410

1. NUNUKAN 2. MALINAU 3. KUTAI BARAT 4. BULUNGAN 5. BERAU 6. KUTAI TIMUR 7. KUTAI KARTANEGARA 8. Penajam PASER UTARA 9. PASIR 10. TANA TIDUNG

Number of Population : 3.690.520 people (2011)Density : 18,88 people/km2

East Kalimantan ‘s Economic ConditionIndicator 2005 2006 2007 2008 2009 2010 2011 2012

GRDP (IDR Trillion)

With Oil & Gas 180,29 199,59 212,10 315,22 285,59 321,90 390,63 419,10

Without Oil & Gas 67,44 80,96 93,81 128,12 91,56 104,45 121,27 143,94

Economic Growth

With Oil & Gas 2,99 2,82 1,23 4,82 2,32 5,10 4,08 3,98

Without Oil & Gas 5,84 7,54 9,56 6,13 6,36 11,78 12,03 11,31

Per Capita Income (IDR Million) 24,10 25,90 28,32 36,69 32,10 35,07 41,35 44,93

Inflation Rate 5,60 6,35 7,28 4,83

Poverty Rate 8,53 7,86 7,66 6,77 6,68

Unemployment Rate 11,11 10,83 10,10 9,84 8,90

Minimum Regional Wage (IDR)

600.000 701.640 795.000 889.654 955.000 1.002.000 1.084.000 1.177.000

Note : Minimum Regional Wage for 2013 has been defined of IDR 1.762.073

INVESTMENT OPPORTUNITY :

ITEMS LOCATION / REGENCY

Timber Estate (pulp and paper, medium density fibre board)

Berau, Bulungan, Nunukan, Malinau, Kutai Kartanegara and East Kutai.

FORESTRY

Potentials area for Timber Estate (HTI)at the present time: 1,200,000 ha, with total production of 204.989.756 m3 (2011)

Timber estate’s products such as pulp, paper, and medium density fibre (MDF) board were distributed to domestic market and exported to China, Japan, Singapore, and some European countries.

OIL PALM PLANTATION

There are 49 CPO factories that operated in East KalimantanWith total capacity of 2.360 tons fresh fruit bunches/hour

Total Permitted Area : 3,8 million haRealization : 975.612,11 ha

CPO Potential Downstream Products:Harga added value (%)

CPO 340Cooking Oil 400 18Glycerin 500 47Margarine 500 47Metil ester 650 91Fatty alcohol 900 165Surfactant 1600 371

050

100150200250300350400

CookingOil

Glycerin Margarine Metil ester Fattyalcohol

Surfactant

adde

d va

lue

(%)

COAL MINING

NO Location Reserve (Ton)

1 SAMARINDA 275.010.5502 KUTAI KARTANEGARA 2.000.040.5173 PANAJAM PASER UTARA 307.7934 PASER 745.163.0405 KUTAI BARAT 204.287.1166 KUTAI TIMUR 4.231.946.7057 BERAU 395.332.4848 BULUNGAN 576.336.2249 NUNUKAN 30.482.845

10 MALINAU 54.550.800 total 8.513.150.281

Coal Reserve in Regencies/cities (status 2012)

There are 1.377 mining companies that operated in East Kalimantan, with total area more than 4,4 million hectares.

Potential downstream product;Coal to Liquid (CTL)

East Kalimantan has a huge amount of low calorie coal that can be developed as CTL. CTL is a new variant of alternative fuel, especially for transport and industrial needs.

AGRICULTURE

ITEMS LOCATION / REGENCY

Cassava East Kutai, West Kutai, & Kutai Kartanegra

Paddy Paser, PPU, Nunukan, Malinau, East Kutai, Kutai Kartanegara, Berau

Soybean Kutai Kartanegara

Fruits PPU, Kutai Kartanegara, Samarinda

Vegetables Kutai Kartanegara, Samarinda

Potential downstream product;Elephant Cassava (manihot esculenta ?)

Elephant cassava can be developed into tapioca fluor and ethanol. Production in 2011 reached of 91.858 ton, from total area of 5.214 hectares.

Investor can use “nucleus-plasma” model, where local farmer can be participate actively.

Potential market : Korea, Japan, and China

INVESTMENT OPPORTUNITY :ITEMS LOCATION / REGENCY

Shrimp, Crab and Lobster Kutai Kartanegara, Balikpapan, Bulungan, Tarakan.

Marine Cultivations (seaweed) East Kutai and Bontang

Fish (snapper, red snapper, tuna, shark, abalone, grouper)

Balikpapan, Bontang, Berau, Nunukan and Tarakan.

FISHERY AND MARINE BASE

Potentials :→ Brackish Fish Farming : 91,380 Ha→ General Waters (river, lake and swamp) : 2.77 Million Ha→ Sea : 98 million sq. km and Coastline : 1,185 Km

Investment Policy in East Kalimantan• Regulation of Head Of Indonesia Investment Coordinating Board of no.

5/2013 on Guidelines and Procedures of Investment ‘s Permit and non Permit Application

• Tax Holiday 5 priority sectors; basic metal, oil refinery/basic organic chemical from

natural gas/oil, industrial machinery, renewable resources industry, and telecommunication equipment industry.

Minimum investment ; IDR 1 trillion, with minimum deposit 10% in Indonesian Banks.

Tax holiday for 5-10 years • Tax Allowance

Nett income reduction up to 30% from total investment, defined for 6 years (5% per year)

Loss compentation extended from 5 years up to 10 years.• One Stop Service for Investment Permittance Application in Province and 14

Regencies/cities

Regional Investment & Permittance Board of East KalimantanJl. Basuki Rahmat no. 56, Samarinda 75117Ph. +62 541-743235, Fax. +62 541-736446http:// www.bppmd.kaltimprov.go.id