Executive-Summary BKPM Japan International Cooperation

BKPM
INVESTMENT COORDINATING BOARD (BKPM)

JAPAN INTERNATIONAL COOPERATION AGENCY
INVESTMENT OPPORTUNITIES STUDY

FOR EACH PROVINCE
OF
EAST, WEST, CENTRAL AND SOUTH KALIMANTAN
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,2 0
5
EXECUTIVE SUMMARY
EAST KALIMANTAN
March, 2005
PT. PACIFIC CONSULINDO INTERNATIONAL INDONESIA

(formerly PT.Mitrapacific Consulindo International)
EXECUTIVE SUMMARY for East Kalimantan
Investment Opportunities Study for Each Province of East, West, Central and South Kalimantan
BKPM JICA
LIST OF CONTENTS
Page
List of Contents .................................................................................................. i

List of Tables ...................................................................................................... iii
List of Figures ..................................................................................................... iv
1. OVERVIEW OF PROVINCIAL ECONOMY .................................................. 1

1.1 Geomorphology ..................................................................................... 1
1.2 Gross Regional Domestic Products....................................................... 1
1.3 Current Export Import ............................................................................ 2
1.4 Labor Force Situation ............................................................................ 3
1.5 Labor Wage by Sector ........................................................................... 4
1.6 Land Price in Major Kabupaten/Kota..................................................... 4
1.7 Current Investment Realization ............................................................. 5
1.8 Industries Location and Strategic Areas................................................ 7
2. CURRENT SITUATION AND FUTURE PROSPECT OF

INFRASTRUCTURE...................................................................................... 9
2.1 River....................................................................................................... 9
2.2 Road ...................................................................................................... 11
2.3 Harbor .................................................................................................... 11
2.4 Airport .................................................................................................... 12
2.5 Electricity................................................................................................ 13
2.6 Telecommunication................................................................................ 14
2.7 Water Supply ......................................................................................... 14
2.8 Industrial Estate ..................................................................................... 15
2.9 Health Service Facilities and Living Condition for Expatriate................ 15

MAJOR SECTORS........................................................................................ 17
3.1 Major Sectors Analyses ......................................................................... 17
3.1.1 Oil and Gas ................................................................................. 17
3.1.2 Mining ......................................................................................... 17
3.1.3 Manufactures .............................................................................. 17
3.1.4 Trade........................................................................................... 18
3.1.5 Agriculture................................................................................... 18
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3.1.5a Plantation ...................................................................... 18

3.1.5b Land Availability for Plantation...................................... 19
3.1.5c Forestry ......................................................................... 19
3.1.5d Fishery........................................................................... 20
3.2 Promising Commodities Analyses ......................................................... 20
3.2.1 Gas Application Products ........................................................... 20
3.2.2 Coal Mining ................................................................................. 21
3.2.3 Dockyard and Heavy Equipment Repairing Center.................... 23
3.2.4 Palm Oil Products ....................................................................... 23
3.2.5 Cacao.......................................................................................... 25
3.2.6 Industrial Timber Estate (HTI), Pulp and Paper Industry ........... 26
3.2.7 Particleboard Industry................................................................. 27
3.2.8 Shrimp (Brackish Water Aquaculture) ........................................ 28

MAJOR STRATEGIC AREAS ...................................................................... 30
4.1 Tarakan City........................................................................................... 30
4.2 Bontang City .......................................................................................... 31
4.3 Samarinda City ...................................................................................... 32
4.4 Balikpapan City...................................................................................... 33
4.5 Business Development in Strategic Areas ............................................ 33
5. CONSTRAINTS IN INVESTMENT CLIMATE............................................... 36
6. PROPOSAL OF PROSPECTIVE PROJECTS ............................................. 37

6.1 Coal Mining Project Profile .................................................................... 37
6.2 Oil Palm Plantation and CPO Processing Project Profile...................... 39
6.3 Cooking Oil Project Profile..................................................................... 41
6.4 Cacao Plantation and Beans Processing Unit Project Profile ............... 44
6.5 Industrial Timber Estate (HTI), Pulp and Paper Project Profile............. 46
6.6 Particleboard and MDF Project Profile .................................................. 48
6.7 Shrimps (Brackish Water Aquaculture) Project Profile.......................... 50
6.8 Dockyard and Heavy Equipment Repairing Center Project Profile....... 52
ATTACHMENT
Attachment 1. Government Institution for Investment Contact and
Selected Companies in East Kalimantan................................. 55
Attachment 2. List of Large Companies (Exporters) in East Kalimantan........ 58
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LIST OF TABLES
Page
Table 1-1 Total GRDP at Constant 1993 Prices by Kalimantan
Provinces, 1999-2003 (Million Rupiah) .......................................... 2
Table 1-2 Values of Export and Import 2000 2003 (unit: million
Rp.) .................................................................................................. 2
Table 1-3 Values of Non Oil and Gas Export by Sector and Its
Contribution of East Kalimantan (unit: million USD) ....................... 3
Table 2-1 Number of River Port at East Kalimantan Province, 2003 .............. 9
Table 2-2 Condition of Road in East Kalimantan ............................................ 11
Table 2-3 Number of Ship Serve Transportation Among Islands in
East Kalimantan, Year 1998-2003 .................................................. 11
Table 2-4 Facilities in Main Harbor in East Kalimantan................................... 12
Table 2-5 Flight and Passenger Volume by Airports, 2003............................. 13
Table 2-6 Cargo and Baggage Volume by Airports, 2003............................... 13
Table 2-7 Number of Ordinary Telephone Service by Type and
Kabupaten or City............................................................................ 14
Table 2-8 Industrial Estates in East Kalimantan.............................................. 15
Table 3-1 Land Area Availability for Proposed Plantation Project
Investments ..................................................................................... 19
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LIST OF FIGURES
Page
Figure 1-1 Share of GRDP by Economic Sector, East Kalimantan, 2003........ 2
Figure 1-2 General Profile of Educational Attainment in East Kalimantan ....... 4
Figure 1-3 Domestic Investment (PMDN) Realization by Sector ..................... 5
Figure 1-4 Breakdown of Domestic Investment (PMDN) in Industries
(68.75%) .......................................................................................... 6
Figure 1-5 Foreign Investment Realization by Industry .................................... 6
Figure 1-6 Breakdown of Foreign Investment (PMA) in Industries
(28.40%) .......................................................................................... 7
Figure 1-7 Map of Resources and Industrial Spreading in East
Kalimantan Province........................................................................ 8
Figure 2-1 Map of Infrastructures in East Kalimantan Province ....................... 16
Figure 3-1 Natural Gas Downstream and Application Products....................... 21
Figure 6-1 Trend of Indonesian Export Coal Price and Australia-Japan
Benchmark Coal Price .................................................................... 39
Figure 6-2 Trend of Indonesian Palm Oil (CPO) Price at Rotterdam
Market ............................................................................................. 41
Figure 6-3 Trend of Indonesian Cooking Oil Price at Rotterdam Market ......... 43
Figure 6-4 Trend of Cacao Beans Price in London and New York
Market, 1991 - 2003 ........................................................................ 46
Figure 6-5 Trend of Export Price of East Kalimantan Tiger Shrimp*
(1999 2003) .................................................................................. 52
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INVESTMENT OPPORTUNITIES STUDY

FOR
EAST KALIMANTAN
EXECUTIVE SUMMARY
I. OVERVIEW OF PROVINCIAL ECONOMY
1.1 Geomorphology
Dominant soils in East Kalimantan consist of Red Yellow Podsolik in its hilly and
mountainous areas, Alluvial soil is in most of undulating areas and Organosol Gley
humus in most of coastal lowland areas. Major development area locates in 25-100 m
altitude with most of remote upstream areas lies over 400 m above sea level.
Topography is classified into 4 classes of sloping category: 0-2% slope of wetland coastal
areas occupies 2,093,677 Ha (10,44% of total East Kalimantan), 2-15% slope of alluvial
areas occupies 2,431,802 Ha (12.14%), 15-40% slope of undulating and hilly area covers
4,476,122 Ha (22,34%) an over 40% of hilly mountainous area covers 11,037,899 Ha
(55.08%). Total land area in East Kalimantan is estimated 20,038,500 Ha.
The average rainfall is among of 1500-4500 millimeters per year. Temperature in wet
season (October January) is about 21o C and during dry season (July August) about
34o C. Humidity is about 86 % average in dry season with wind speed of 5 knots per hour.
Humidity increases to 90100% in wet season. Through these climate characteristics a
lot of crops could be possible to be grown in the area such as oil palm, cacao, banana,
and rice as well.
1.2 Gross Regional Domestic Products

GRDP growth of East Kalimantan Province compare to other Kalimantan Provinces is
considered as the largest which average increase of 4.52 % per year.
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Tabel 1-1 Total GRDP at Constant 1993 Prices by Kalimantan Provinces, 1999-2003
(Million Rupiah)
Province 1999 2000 2001 2002 2003 Avg. Annual

Growth
West Kalimantan 7,065,793 7,274,000 7,409,948 7,559,183 7,781,875 2.44%
Central Kalimantan 4,032,225 4,092,515 4,203,919 4,341,375 4,552,231 3.08%
South Kalimantan 6,157,938 6,424,665 6,665,209 6,869,600 7,256,171 4.19%
East Kalimantan 21,519,670 22,384,086 23,513,161 24,521,451 25,680,662 4.52%
Source: East Kalimantan in Figure 2003
The major sectors in East Kalimantan provided large contributions to its GRDP are Oil
and Gas, Mining and Quarry, Manufacture Industries, Agriculture (including Forestry,
Plantation and Fisheries) and Trading.
Figure 1-1 Share of GRDP by Economic Sector, East Kalimantan, 2003
Agriculture, Mining and Manufacturing

Electricity, Gas and
Livestock, Forestry Quarrying Industries
Water Supply
and Fishery 9% 8%
0%
7% Construction
2%
Trades, Hotel and
Restaurant
7%
Transportation and
Oil and Gas Financial and Communication
Services
58% Business Service 6%
2%
1%
Source: East Kalimantan in Figure 2003
Agriculture sector has a trend to share a continuous increase to the GDRP by its prime
commodities of plantation, and fisheries. Among those, the palm oil is the most promising
source for GRDP growth.
1.3 Current Export Import

Since 1998 East Kalimantan gains trade balance, with export value appears as almost 4
times than import value.
The export of oil and gas were increase in its value and become important product to
support APBD. The total export volume was declining over last few years correlated with
the drop of forest industrial product, which was the major contributor of non-oil
commodities to the province over the last decade.
Table 1-2 Values of Export and Import 2000 2003 (unit: million Rp.)
Activities 1998 1999 2000 2001 2002 2003 Growth

Average (%)
Export Total 4,403,900 5,337,380 8,513,332 8,861,352 7,747,497 9,029,138 21.01
Oil and gas 2,952,516 3,585,778 6,749,157 6,943,322 5,959,075 7,017,807 27.54
Non Oil and gas 1,451,384 1,751,602 1,764,175 1,918,030 1,788,423 2,011,331 7.71
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Activities 1998 1999 2000 2001 2002 2003 Growth

Average (%)
Import Total 1,011,304 1,135,278 1,296,451 1,780,980 1,864,525 2,219,506 23.89
Oil and gas 335,535 430,567 628,265 979,250 1,167,754 1,499,841 69.40
Non Oil and gas 675,769 704,711 668,186 801,730 696,771 719,665 1.30
Sources: East Kalimantan in Figure 2003, and GRDP of Provinces in Indonesia 1999-2002,
From 2000 to 2004, the volume of wood and forestry export of East Kalimantan is dropped
other export commodities which relatively stable are fisheries, agriculture and plantation,
while mining and chemical industry are increase in their export value. Except oil gas as
the major contributor, mining, wood and chemical industries are the most important
product in East Kalimantan.
Table 1-3 Values of Non Oil and Gas Export by Sector and Its Contribution of East
Kalimantan (unit: million USD)
Sector/products 2000 2001 2002 2003 2004* Contribution

(%) in 2003
Wood products 724.9 564.1 540.4 391.5 222.3 20.11
Mining products 632.3 923.4 1,054.4 1,058.6 351.6 54.37
Fisheries products 67.6 49.6 61.3 45.0 12.2 2.31
Agriculture & plantation 1.0 6.9 3.2 4.7 1.9 0.25
Forestry 2.8 1.7 1.3 1.2 0.5 0.07
Chemical industry 201.9 235.6 232.7 407.2 85.9 20.91
Metal products industry 8.6 66.9 16.0 31.8 14.2 1.63
Others 30.4 27.0 14.2 6.8 0.9 0.35
Total 1,607.8 1.875.3 1,923.4 1,947.0 689.4 100.00
* Up to June 2004
Source: Trade and Industrial Office of East Kalimantan, 2004.
Since major natural resources product of East Kalimantan are oriented for Export.
Downstream products will be required opportunities product for investment to keep the
resources more sustainable as other business.
The secondary industrial products from forestry, plantation, mining, and fisheries also
become important commodities in global market.
1.4 Labor Force Situation

East Kalimantan population is increased 3.3% during the period of 2000 to 2003 to
achieve a total of 2,704,851 persons. Population density of East Kalimantan was raised to
an average of 13.50 persons/km2 in 2003.
The lowest population density of Kabupatens is in Malinau with only 1.11 persons/km2 in
2003. The highest population density of Kabupatens is in Penajam Paser Utara with
36.24 persons/km2 in 2003. Penajam Paser Utara is a new kabupaten, which was
separated from Kabupaten Pasir in year 2000.
Tarakan city has the lowest population density with about 590.91 persons/km2 in 2003.
The highest population density is in Balikpapan as the gateway of the province with about
813.70 persons/km2 in 2003.
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Most of Kabupaten and cities in the northern part of East Kalimantan have less density
compare to those in the southern part. Also northern part populations engage with more
primary resources/exploitation compare more skilled industrial labor in southern part.
According to East Kalimantan statistic year 2003, the education profile of population is
presented in the following figure.
Figure 1-2 General Profile of Educational Attainment in East Kalimantan
Diploma/ Not/Never at
General and University School Not yet
Vocational Senior 5% 5% Completed
High School Primary School
24% 18%
General and
Vocational Junior Primary School
High School 28%
20%
Sources: BPS of East Kalimatan Province, 2003
This figure is indicated that major percentage of Population and Labor of indigenous
people is still dominated by low to moderate level of education.
1.5 Labor Wage by Sector

Based on Mennakertrans (Ministry of Manpower and Transmigration) circulation letter no.
B.60/Men/PHI/PJK/VII/2004 date July 16, 2004, each governor requested to prepare
provincial minimum wage. The East Kalimantan Province has issued sector minimum
wage (UMR Sectoral) per month per employee for 2005 as follows:
1. Logging and Forestry Rp. 600,000.-
2. Coal Mining Rp. 672,000.-
3. Fisheries (frozen shrimps) Rp. 636,000.-
`4. Adhesive Industry Rp. 762,000.-
5. Base Chemical Industry Rp. 732,000.-
6. Gold Mining Rp. 773,880.-
7. Oil and Gas Mining Rp. 780,000.-
8. Gas Organic Chemical Industry Rp. 689,874.-
9. Plantation (Palm Plantation) Rp. 636,000.-
Daily Wage based on working day greatly depends upon the season and place, the best
Consultants estimation is as follow:
1. Semiskilled for construction works Rp. 50,000 per day
2. Semiskilled for agriculture works Rp. 35,000 per day
3. Semiskilled for operators Rp. 45,000 per day
4. Skilled artisan (Gold/jewelry smith, etc.) Rp. 80,000 per day
1.6 Land Price in Major Kabupaten/Kota

Land price in East Kalimantan varies depending on location and function. For example,
land price in Kota Samarinda, Balikpapan and Bontang (urban area) is between Rp.
700,000.- to Rp. 3,000,000.-per square meter. In other smaller cities may range between
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Rp. 100,000.- to Rp. 1,200,000.- per square meter. Land price for agriculture is ranging
between Rp. 1,000.- to Rp. 5,000.- per square meter depend to available infrastructure,
but land price for mining is usually higher around Rp. 2,000 to Rp. 12,500.- per square
meter.
The cost of HGU processing for plantation development consist of two component which
are administrative cost: around Rp.100,000.- per hectare for legal charge and acquisition
cost which are greatly depending upon the NJOP value (land property tax).
1.7 Current Investment Realization
Domestic Investment Realization

Domestic investment realizations of non-oil business sector in East Kalimantan were
dominated by industries. While, mining exploitation holds major portion of foreign
investment realization. Mining and forestry are other leading sector appeared in domestic
investment realization. Figure 1-3 and 1-4 illustrate domestic investment realization by
sector in East Kalimantan up to December 2003.
Figure 1-3 Domestic Investment (PMDN) Realization by Sector
Other Services Electricity, Gas & Foodcrops & Plantation

6.71% Drinking Water Holticulture 3.46%
Office Building 1.70% 0.01%
Housing Estate Livestock
0.00%
0.00% 0.13% Fisheries
Transportation Trade 0.01%
0.03% 0.66%
Forestry
Hotels
3.77%
1.72%
Mining
Construction 13.01%
0.05%
Industries (*)
68.75%
Source: Regional Investment and Promotion Board (BPID) of East Kalimantan, 2004
Industries (*) as appear at 68.75% in Figure 1-3 consist of several groups of industry,
which are dominated by paper, chemistry industries and wood industries details are
shown in Figure 1-4.
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Figure 1-4. Breakdown of Domestic Investment (PMDN) in Industries (68.75%)
Metal Goods Industry Other Industries Metal Industry Food Industry

0.08% 0.00% 0.00% 0.66%
Mineral Non Metal
Industry Textile Industry
0.63% 0.00%
Chemistry Industry Wood Industry
29.31% 26.50%
Pharmacy Industry
0.00%
Paper Industry
42.81%
Overseas Investment Realization

Foreign investment realizations of non-oil business sector in East Kalimantan were
dominated first by mining and industries sectors. Figure 1-5 and 1-6 illustrate foreign
investment realization by sector in East Kalimantan up to December 2003.
Figure 1-5 Foreign Investment Realization by Industry
Electricity, Gas &

Other Services
Drinking Water
6.18%
0.00% Plantation
Transportation Foodcrops &
0.06% Hotels Holticulture 2.77%
0.00% Trade 1.31%
Construction Livestock
0.43%
0.16% 0.00% Fisheries
Housing Estate 0.00%
0.00%
Forestry
Office Building 1.41%
0.00%
Mining
Industries (*)
59.28%
28.40%
Investment in industries (*) as appear 28.40% in Figure 1-5 consist of several groups of
industry, which are dominated by chemistry mostly oil and gas downstream products and
wood industries and detail could be shown in Figure 1-6 as follows.
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Figure 1-6 Breakdown of Foreign Investment (PMA) in Industries (28.40%)
Mineral Non Metal Other Industries Food Industry

Industry 0.00% 0.92%
Wood Industry
0.00% Textile Industry
Metal Industry 14.19%
0.00%
0.00% Pharmacy Industry
0.00%
Metal Goods
Industry
Paper Industry
0.38%
0.00%
Chemistry Industry
84.52%
Investment pattern in East Kalimantan is in line with comparison of Location Quotient

Value of East Kalimantan and others Kalimantan Provinces by sectors (of GRDP). LQ
index for East Kalimantan indicates the mining and quarry, and processing industry
sectors would be the basis of economic development.
1.8 Industries Location and Strategic Areas

Natural resources in East Kalimantan are spread in many Kabupatens and cities. The
industrial areas are concentrated in several strategic Kabupaten or kota, such as:
- Samarinda : Wood processing.
- Balikpapan : Oil refinery and manufacturing industries.
- Bontang : Gas and fertilizer products processing including its
downstream industries.
- Tarakan : Wood processing and fisheries processing.
- Kutai Kartanegara : Wood processing, food industries and mining.
The growth of the industry in these areas is more or less correlated with infrastructure
and access, also with economic geo-position which means the location of this region with
external economic center such as: Java, Philipines, Serawak (Eastern Malaysia).
Infrastructures in this 5 strategic areas mentioned above are sufficient to support
industrial development particularly southern areas: Samarinda, Balikpapan, Bontang and
Kutai Kartanegara, which are supported with better road access. And also accesses to
national, regional and international market are relatively easy and opened.
These strategic areas are explained the development pattern in East Kalimantan, where
the growth centers located mostly along eastern coastal area. The growth centers in East
Kalimantan have function to absorb raw material from up stream to be processed or
stored before further carried for export or inter island market. Therefore a strong land
transportation corridor and port facilities are important to link the growth centers area.
Map of the industrial spreading in East Kalimantan is presented in the following figure.
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Figure 1-7 Map of Resources and Industrial Spreading in East Kalimantan Province
114 00'E 116 00'E 118 00'E
M A L A Y S I A Lumbis
NUNUKAN P.SEBATIK
NUNUKAN Liongbunyu
04 00'N P.NUNUKAN 04 00'N
Long Bawan Atap

FISHERIES & PLANTATION SECTORS
Mensalong
COLD STORAGES / FISHERIES P.MANDUL
PROCCESSING Tidangpale Betayau Tanahmerah
MALINAU 0 25 50 75 km
POND / BRAKISHWATER P.BUNYU
AQUACULTURE Pulausapi Pulaubunyu
Sebakung P.TARAKAN
PALM OIL PLANTATION
TARAKAN
SU L AWESI
CPO MILL DISTRIBUTION
SEA
CACAO PLANTATAION
Long Pahangai Pimping Salimbatu
TOURISM,MINING,OIL & GAS BULUNGAN
TANJUNG SELOR
S.K a Tanjung
NATURAL GAS yan
palas
NATURAL GAS FIELD Long Bia

Long Pujungan hau
S.B a
OIL REFINERLES
OILD FIELD P.DERAWAN

Long Laai
COAL MINING MALINAU Gunung Tabur
Tepian Buah
TOURISM n
ya TAJUNG REDEB
a
K
02 00'N S. 02 00'N
Long Nawan
BERAU
Muara Lasan
Talisayan
P.MENIMBORA
Pantaiharapan
Miau Baru
Ma.Karangan
Muara Wahau KUTAI TIMUR Sangkulirang Teluksumbang

Long Pahangai
Muara Marah Tanjungmanis
Rantaupulung
Batuampar
Tiong Ohang
Tabang
Ujah Bilang Muara Ancalong

KUTAI SANGATA
CENTRAL Muara Bengkal
KERTANEGARA
KALIMANTAN PROVINCE
KUTAI BARAT
Kembang Janggut
Sedulang
BONTANG
00 00
S.
Longiram Kahala
Ma
Santan
h
Tering Ma.Kaman
ak
LEGEND :
ma
D.Semayang
Melak Kota Bangun Sebulu
RIVER Penyinggahan Ma.Badak
SENDAWAR Muarapahu S.Mahakam
NATIONAL ROAD
Damai Lambing D.Jempang Ma.Muntai TENGGARONG
PROVINCIAL ROAD
Loakulu
SAMARINDA
OTHER ROAD Tanjung Loa Anggana
Isuy Muara Kedang Janan
NON STATUS ROAD Sangasanga
Resak
PLANNED ACCESS ROAD
INTERNATIONAL BOUNDARY Muarajawa
WEH
PROVINCIAL BOUNDARY A TE
UAR Sepaku Sungaiseluang
KABUPATEN BOUNDARY TO M
CAPITAL OF PROVINCE
TOWN OF KAB./KODYA
PENAJAM BALIKPAPAN
TOWN OF KECAMATAN/VILLAGE
PASIR
AIRPORT Waru
Long Kali
SEAPORT D
Muara Long Ikis
SECTOR FORESTRY Komam
HPH Kuaro
SIN
MA /
JAR UNG
HTI Batusopeng TANAHGROGOT

BANTANJ
02 00'S
SAW MILL
Pasirbelengkong
8a
TO
WOOD PROCCESING Rantaualas
CHIP INDUSTRY Kerang Tanjungaru
PULP INDUSTRY SOUTH KALIMANTAN

PROVINCE 116 00'E 118 00'E
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II. CURRENT SITUATION AND FUTURE PROSPECT OF

INFRASTRUCTURE
2.1 River
The river transports in East Kalimantan play a main role to support passengers and
goods from upstream to most of larger cities in downstream. Road infrastructures are only
available in linkage of the growth center cities in downstream or coastal areas.
The following East Kalimantan Rivers have economic value as utilized by community and
industries for transportation:
o Mahakam River links Samarinda to Melak (Kutai Barat) around 920 Km upstream via
Kutai Kartanegara,
o Kandilo River (191 km) links Tanah Grogot to upstream,
o Kedang Kepala River (319 km) connects Muara Ancalong and Muara Wahau as agro
production centers in Kabupaten Kutai Timur to Muara Kaman in Mahakam River and
continues to Samarinda.
o Kelai River (254 Km) is used to transport local products (wood, pulp and coal) from
upstream to Tanjung Redep,
o Kayan River (576 Km) connects Tanjung Selor to hinterland areas of Kabupaten
Bulungan and Kabupaten Malinau,
o Sesayap River (278 Km) can be cruised from Tarakan to Malinau at a length of 200
Km,
o Sembakung (279 Km) and Sebuku (115 km) Rivers are used to transport local
products from upstream (Kabupaten Nunukan) to Tarakan,
Table 2-1 presents the number of river port at East Kalimantan.
The river depth freqwently fluctuates, which is affected by rainy season. The average
rainy season, is lasting around about 9 months so the river transportation is reliable for
large haulage around 9 months per year and the rest, should carried over land
transportation. Larger rivers, such as Mahakam, Kelai, Kayan and Sesayap could be
sailed by ship any time from estuaries to midland.
Table 2-1 Number of River Port at East Kalimantan Province, 2003
No Kabupaten/City River/Gulf/Straits Amount Depth* Capacity Condition

(m) * (GWT)
Samarinda
1 Mahakam Hilir Mahakam river 5 7 12 20,000 2 damaged,
3 good
2 Mahakam Hulu Mahakam river 5 7 12 20,000 1 damaged,
4 good
3 Mahakam Baru Mahakam river 3 7 12 20,000 Good
4 Samarinda Mahakam river 2 7 12 20,000 Good
Seberang
Kutai Kartanegara
6 Loan Janan Mahakam river 1 7 12 20,000 Good
7 Melayu Mahakam river 1 6 10 10,000 Good
8 Tepian Pandan Mahakam river 1 6 10 10,000 Good
9 Muara Kaman Mahakam river 1 6 10 10,000 Good
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No Kabupaten/City River/Gulf/Straits Amount Depth* Capacity Condition

(m) * (GWT)
10 Muara Muntai Mahakam river 1 6 10 10,000 Good

11 Handil II Mahakam river 1 7 12 20,000 Good
12 Muara Muntai Mahakam river 1 6 10 10,000 Good
13 Sungai Meriam Mahakam river 1 7 12 20,000 Good
14 Kota Bangun Mahakam river 1 6 10 10,000 Damaged
Kutai Timur
15 Muara Ancalong Kedang Kepala river 1 36 5,000 Good
16 Muara Wahau Kedang Kepala river 1 36 5,000 Good
Kutai Barat
17 Melak Mahakam river 1 47 5,000 Good
18 Tering Mahakam river 1 47 5,000 Good
19 Long Iram Mahakam river 47 5,000
20 Long Bangun Mahakam river 1 47 5,000 Good
21 Muara Pahu Mahakam river 1 47 5,000 Good
Balikpapan
22 Kampung Baru Balikpapan gulf 1 10 40,000 Good
23 Pel. Penyeberangan Balikpapan gulf 1 8 12 20,000 Good
Somber
24 Pel. Penyeberangan Balikpapan gulf 1 8 12 20,000 Good
Kaliangau
Penajam Paser Utara
25 Penajam Balikpapan gulf 1 59 5,000 Good
26 Pel. Penyeberangan Balikpapan gulf 1 59 5,000 Good
Penajam
27 Tanah Grogot Balikpapan gulf 1 59 5,000 Good
Kota Tarakan
28 Dermaga Tengkayu Tarakan gulf 1 12 40,000 Good
29 Dermaga Perikanan Tarakan gulf 1 6 10 20,000 Good
30 Dermaga Beringin Tarakan gulf 1 6 10 20,000 Good
Bulungan
31 Tanjung Selor Kayan river 1 6 10 15,000 Good
32 Semakawir Kayan river 1 6 10 10,000 Good
33 Ancam Kayan river 1 6 10 10,000 Good
Berau
34 Pasar Lama Segah river 1 58 5,000 Damaged
35 Pasar Impres Kelay river 1 58 5,000 Good
36 Pulau Derawan Pulau Derawan 1 58 5,000 Good
37 Teluk Bayur Segah river 1 5-8 5,000 Good
38 Tanjung Redeb Berau river 1 58 15,000 Good
Malinau
39 Malinau/Pemkab Sesayap river 1 5-8 5,000 Good
Nunukan
40 Atap/Sembakung Sembakung river 1 5-8 5,000 Good
41 Pelabuhan Laut Makasar strait 1 8 15,000 Good
42 PT Yamaker Makasar strait 1 8 10,000 Good
43 Sungai Nyamuk Makasar strait 1 8 10,000 Good
Source: Land communication service, and ASDP, East Kalimantan province, 2003.
Note : * estimated
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2.2 Road
Presently, East Kalimantan road stretches a total length of 8,189.78 km, including those
built by the central government and the provincial/Kabupaten governments. The ratio of
road length to total land area is 52.53 km to 1,000 km2, which in considered as low. The
following Table 2-2 exhibits the condition of roads in East Kalimantan.
Table 2-2 Condition of Road in East Kalimantan

Pavement Type
Status Length (Km) Asphalted (Km) Aggregate (Km) Soil (Km)
National road 1,226.11 889.41 298.10 38.60
Provincial road 1,762.07 621.30 584.05 55.72
Kabupaten/City road 5,201.50 1,325.91 1,720.80 2,154.79
Total 8,189.78 2,836.62 2,602.29 2,750.11
Source: Kimpraswil Service of East Kalimantan Province, 2003.
The National road is comprehensively in good condition. While Provincial/Kabupaten

road condition is only 24 % good, 29 % moderate, 34 % damaged and 13 % heavy
damaged. Every year, local government renders efforts to construct new roads as well as
to rehabilitate old ones through fund APBD, APBN as well as foreign loan.
East Kalimantan roads are classified into three arteries, i.e.
1) South Artery: connecting South Kalimantan - Batu Aji/Kerang Dayu - Tanah
Grogot - Kuaro - Penajam - Balikpapan - Samarinda - Bontang - Sanggata - Muara
Wahau - Tanjung Redeb - Tanjung Selor.
2) Central Artery: connecting coastal growth center including Samarinda -
Tenggarong - Kota Bangun - Melak - Barong Tongkok - Central Kalimantan.
3) North Artery: connecting Samarinda - Sangatta - Muara Wahau - Berau -
Bulungan; work on the construction of this road leading to Kabupaten Malinau and
Nunukan is underway.
2.3 Harbor
Most of growth centers (cities) in East Kalimantan located in coastal area. All raw
products from hinterlands are collected in those cities for trading, further processing into
industrial products or distributing to other region. Many of those cities facilitated by harbor
for inter islands or ocean going vessels.
There are 15 public harbors in East Kalimantan, 4 of them are the largest harbors
managed by PT. Pelabuhan Indonesia IV (state-owned harbor corporation), while
provincial government manages the remaining smaller harbors. There are also special
harbors independently manage by privates and state companies for coal in Sangatta,
Bontang, and Balikpapan, for oil in Balikpapan, and for gas and fertilizer in Bontang.
Table 2-3 Number of Ship Serve Transportation Among Islands in East

Kalimantan, Year 1998-2003
Number of Ship
No. Name of Harbor
1998 1999 2000 2001 2002 2003
1 Balikpapan 2,727 2,904 3,639 4,232 2,739 4,874
2 Sarimarinda 3,699 4,599 5,205 6,146 3,258 10,492
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Number of Ship
No. Name of Harbor
1998 1999 2000 2001 2002 2003
3 Tarakan 4,426 4,040 4,107 5,207 4,589 2,994
4 Nunukan 1,786 1,592 1,488 3,720 3,343 2,593
5 Sungai Nyamuk 608 639 575 520 621 599
6 Tanjubg Selor 4,313 4,670 4,855 4,809 4,944 5,653
7 Tanjung Redeb 2,880 2,290 2,504 2.810 2,586 2,731
8 Pulau Bunyu 574 287 159 133 168 177
9 Sangkulirang 352 308 405 606 675 849
10 Sanggata 1,120 948 1,066 1,040 806 1,130
11 Lhok Tuan 758 986 915 1,052 601 1,189
12 Tanjung Laut 550 494 362 909 393 270
13 Tanjung Santan 567 723 583 640 0 423
14 Samboja 105 240 223 229 230 138
15 Tanah Grogot 899 882 980 1,224 1,178 1,592
Total 25,364 25,602 27,066 33,277 26,131 35,701
Source: Sea and Air Communication Service, East Kalimantan province, 2003
The condition of harbor facilities in gateway of East Kalimantan is expressed in Table 2-4.
Table 2-4 Facilities in Main Harbor in East Kalimantan

Facilities
Harbor name Class Quay Warehouse Open Depth Capacity
(M) (M2) storage (M) (DWT)
(M2)
Balikpapan III 420 3,170 5,678 8 - 12 40,000
(container)
Samarinda III 767 4,400 19,650 7 - 12 40,000
(container)
Tarakan IV 250 2,412 3,224 6 - 10 40,000
(container)
Nunukan IV 100 700 600 5-8 15,000
Tanjung Selor 120 - 5-8 15,000
Tanjung Redeb 148 1,000 2,262 5-8 15,000
Pulau Bunyu 105 1,680 450 5-8 15,000
Sangkulirang 41 - 16 5-8 5,000
Tanjung Laut 59 300 4,770 5-8 5,000
Tanah Grogot 70 600 3,000 5-8 5,000
Source: Sea and Air Communication Service, East Kalimantan province, PT. Pelni and CIC, 2003.
2.4 Airport
There are 70 airports/airstrips in East Kalimantan Province, which consist of:
11 regular public airports;
Sepinggan International Airport in Balikpapan is managed by PT. Angkasa Pura
(The State Company).
10 other airports managed by DG of Air Communication includes Termindung
(Samarinda), Juata (Tarakan), Nunukan, Yuvai Semaring (Long Bawan), Tanjung
Harapan (Tanjung Selor), Kalimarau (Tanjung Redeb), Long Apung, Data Dawa,
Melak and Malinau;
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5 special airports (Bontang, Sakima, Muara Badak, Tanjung Bara and Tanjung
Santan), are used for private industries mining and forestry.
54 airstrips are used for emergency or pioneer flight and are not used for regular
flight.
The main airport is Sepinggan Airport. Types of aircraft, which are allowed to land and
take off at Sepinggan and also Juata Airports, are Boeing 737, Airbus and DC 9s.
Besides the Sepinggan Airport, there are other airports that are able to handle the landing
and taking off smaller aircraft, for example Cassa 212, CN 235, Fokker 27 and DAS-7.
The Air traffic volumes of public airports in 2003 are shown in Table 2-5 and 2-6.
Table 2-5 Flight and Passenger Volume by Airports, 2003

Flight Movement Passenger
Airport
Departures Arrival Departures Arrival
1. Sepinggan Balikpapan 20,185 19,991 936,565 882,343
2. Temindung, Samarinda 2,964 2,972 38,238 41,106
3. Juata, Tarakan 3,233 3,242 120,693 115,632
4. Kalimarau, Berau 2,571 2,564 47,672 85,676
5. Nunukan 231 236 2,535 2,016
6. Tanjung Harapan, Bulungan 1,211 1,117 9,037 8,529
Total 30,395 30,122 1,154,740 1,135,302
Sources: East Kalimantan in Figure, 2003
Table 2-6 Cargo and Baggage Volume by Airports, 2003

Cargo (KG) Baggage (KG)
Airport Loaded Unloaded Loaded Unloaded
1. Sepinggan Balikpapan 7,083,035 12,051,042 6,129,595 6,695,494
2. Temindung, Samarinda 394,884 286,505 284,241 266,305
3. Juata, Tarakan 811,496 1,258,106 1,164,666 1,195,779
4. Kalimarau, Berau 114,616 172,716 301,809 308,090
5. Nunukan, 6,913 19,672 12,688 12,149
6. Tanjung Harapan, Bulungan 53,500 78,176 139,959 69,094
Total 8,464,444 13,866,217 8,032,958 8,546,911
Sources: East Kalimantan in Figure, 2003
2.5 Electricity
Power supplies of East Kalimantan are:
Most of power plants serving electricity to main/ larger cities and growth centers along
eastern coast are operated by PLN. They were mostly diesel driven generators (PLTD)
that have been operated for more than 15 to 25 year. Their total capacity was 296 MW
in 2002. Additional 60 MW of steam power plant (PLTGU) are included to make a total
of 356 MW with integrated network through 238 Km of transmission line and 6,488 Km
of medium and low-tension system.
Electricity for inland/ upstream area is mainly provided by small micro-hydro power
plants (PLTM) but sustained supply of water is retreated by excessive forest
exploration. A 200 KW micro hydro serves for Sekolog Sarat Village, Kabupaten Kutai
Barat. Solar energy is another alternative to produce much lower capacity of electricity
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for remote upstream areas. A total of 925 units solar cell have been installed between
1998-2002.
East Kalimantan province has planned additional supply by construction of a coal
power plant (PLTU) of 2 x 25 MW in 2004, 20 MW gas power plant (PLTG) in
Memanas, steam power plants (PLTGU) Cita at the capacity of 20 MW and 40 MW
and 10 MW diesel driven power plan in Kutai Kartanegara. These additional supplies
of electricity will be commenced in 2005 to 2008.
2.6 Telecommunication
In general, the need for communication facilities, including delivery and receipt of goods
and services both in urban and coastal areas in East Kalimantan has actually been met.
PT. Posindo and PT. Telkom, along with their private working partners continue to
improve postal and telecommunication services in East Kalimantan.
Presently, more than 288,386 telephone lines (SST) have been built. Of the total lines,
246,679 SST have been connected to customers, comprise of 102,919 SST in
Balikpapan, 108,744 SST in Samarinda, and 35,016 SST in Tarakan. The public
telephones conditions in several Kabupatens/cities are shown in Table 2-7.
Table 2-7 Number of Ordinary Telephone Service by Type and Kabupaten or City
No. Kabupaten/ Telephone Coin Costumer Calling Total International
Kota Stall Public Coin Card and Regional
Telephone Public Code
Telephone
1. Pasir 1,563 - 9 3 1,575 62-0543
2. Kutai Barat 162 - - - 162 62-0545
3. Kutai 28 - - - 28 62-0541
Kartanegara
4. Kutai Timur 1,498 - - - 1,498 62-0549
5. Berau 342 - 2 - 344 62-0554
6. Malinau 186 - - - 186 62-0553
7. Bulungan 133 - 7 - 140 62-0552
8. Nunukan 137 - - - 137 62-0556
9. Panajam P.U. 459 - - - 459 62-0543
10. Balikpapan 114 70 240 150 574 62-0542
11. Samarinda 44 75 102 144 365 62-0541
12. Tarakan 218 1 61 64 344 62-0551
13. Bontang 180 1 2 - 183 62-0548
Total 5,064 147 433 361 6,005 -
Source: Regional Division of State Enterprise of Telecommunication VI Kalimantan, 2003.
2.7 Water Supply

Presently, East Kalimantan has 9 city water companies (PDAM) owned by the regional
government.
In 2002, Balikpapan City built a new city water installation with a capacity of 20
liters/second. Earlier, the city also raised the capacity of Teritip city water installation to 40
liters/second from previous 20 liters/second. Manggar Reservoir will be improved to
supply more raw water to Kota Balikpapan.
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There is also a plan for drinking water resources developments in Samarinda. This will be
implemented in fiscal year 2005-2010 including Bendang/Loa Kulu stage II, with a
capacity of 200 liter/second, Harapan Baru with a capacity of 200 liter/second, Seberang
water resources with a capacity of 100 liter/second, and Segiri reservoir (Teluk Lerong
area) with a capacity of 100 liter/second.
Available raw water mainly drifted from river. In downstream water treatment is required
for domestic use due to heavy pollution. In upstream, there are indigenous peoples that
use river raw water directly for domestic use. Ground water in Balikpapan and Samarinda
is inappropriate for domestic consumption as it has mineral contents.
2.8 Industrial Estate

The Government has pushed the acceleration of regional development by providing
physical incentives to industrial development. One of the physical incentives is availability
of the industrial zone/estate. And the Government has made five industrial zones/estates
as follows:
Table 2-8 Industrial Estates in East Kalimantan

Kabupaten/
Industrial Estate Area Status Authority Orientation
City
Badak Industrial Zone Bontang 1,572 Ha. Exist PT. Badak LPG and LNG
NGL
Kaltim Industrial Bontang 2,010 Ha. Exist PT. Pupuk Ammonia
Estate Kaltim downstream
products
Kariangau Industrial Balikpapan 1,584 Ha. Land acquisition Local Manufacture
Estate and construction Government and light
industries
Maloy Agro Industry Kutai Timur 5,000 Ha. Land acquisition Local Agro industry
Zone and construction Government
Pendingin Kutai 1,000 Ha. Land acquisition Local Agriculture and
Kartanegara and construction Government food industries
Source: PT. PCII, 2004
2.9 Health Service Facilities and Living Condition for Expatriate

In Balikpapan, Samarinda and Bontang there are private hospitals with facilities
appropriate for foreigners (expatriate). Several Kabupatens provided also with adequate
general hospitals (government or private), such as Tarakan, Kutai Barat, Kutai
kartanegara, Berau, Pasir, Penajam Paser Utara, other Kabupatens have only health
centers (Puskesmas), such as Kutai Timur, Bulungan, Malinau, and Nunukan. Each
health center served by medical doctor, paramedics, midwifes and primary emergency
installations.
Schools are generally given in Indonesian and local language. International school is only
available in Balikpapan and Bontang. Food and accommodation in most of growth center
such as Tarakan, Nunukan Tanjung Redeb and Tanah Grogot are appropriate for
temporary living although it was less convenient than Balikpapan, Samarinda, and
Tenggarong.
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Figure 2-1 Map of Infrastructures in East Kalimantan Province

114 00'E 116 00'E 118 00'E
Lumbis
P.SEBATIK
NUNUKAN NUNUKAN Liongbunyu

P.NUNUKAN
04 00'N 04 00'N
0 25 50 75 km Long Bawan Atap SEBUKU RIVER

Mensalong
SEMBAKUNG RIVER
P.MANDUL
Betayau Tanahmerah
MALINAU SESAYAP RIVER
Tidangpale P.BUNYU
Pulausapi Pulaubunyu
P.TARAKAN
M A L A Y S I A Sebakung
TARAKAN
S UL A WE S I
BULUNGAN SEA
Pimping
Salimbatu
Long Pahangai TANJUNG SELOR
Tanjung
palas
KAYAN RIVER
Long Bia
Long Pujungan
a hau KELAI RIVER
S.B
P.DERAWAN
MALINAU Long Laai

Gunung Tabur
Tepian Buah
an TAJUNG REDEB
ay BERAU
K
02 00'N S. 02 00'N
Long Nawan
Muara Lasan Talisayan

P.MENIMBORA
Pantaiharapan
Ma.Karangan
Miau Baru
Muara Wahau KUTAI TIMUR Sangkulirang Teluksumbang

Long Pahangai
Long Apari Tanjungmanis
Muara Marah Rantaupulung
KUTAI
Tiong Ohang Batuampar
KERTANEGARA
Ujah Bilang Tabang
Muara Ancalong SANGATA
Muara Bengkal
S.
KEDANG KEPALA RIVER

Ma
ha
ka
KUTAI BARAT Kembang Janggut BONTANG

m
Sedulang
00 00
Longiram Kahala
Santan
Tering Ma.Kaman
CENTRAL
D.Semayang Sebulu
KALIMANTAN PROVINCE Melak Kota Bangun
SENDAWAR Muarapahu Penyinggahan
Ma.Badak MAHAKAM RIVER
S.Mahakam
LEGEND : SAMARINDA
Damai Lambing D.Jempang Ma.Muntai
TENGGARONG
RIVER Loakulu
Tanjung Loa Anggana
NATIONAL ROAD Isuy Muara Kedang Janan
Sangasanga
PROVINCIAL ROAD Resak
OTHER ROAD
Muarajawa
INTERNATIONAL BOUNDARY T EW
EH
Sepaku
ARA
T O MU Sungaiseluang
PROVINCIAL BOUNDARY
KABUPATEN BOUNDARY
CAPITAL OF PROVINCE PENAJAM BALIKPAPAN
TOWN OF KAB./KODYA PASIR Waru
TOWN OF KECAMATAN/VILLAGE Long Kali
AIRPORT Long Ikis

Muara
Komam
KENDILO RIVER
SEAPORT
SIN
MA /
G
BAN ANJUN
RIVERPORT Kuaro
JAR
Batusopeng
T
TO
TANAHGROGOT 02 00'S
CONDITION ROAD : Pasirbelengkong

Rantaualas
GOOD
Tanjungaru
MODERATE Kerang
DAMAGE 118 00'E
116 00'E
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III. CURRENT SITUATION AND FUTURE PROSPECT OF

MAJOR SECTORS
GRDP of East Kalimantan in 2003 points out that the 5 main sectors of East Kalimantan
economic structure are Oil and Gas, Mining, Manufactures, Trade, and Agriculture
(include Forestry, Plantation and Fisheries). These 5 sectors have contributed to more
than 87% of GRDP and absorbing employment at 71.27% of the existing labor force.
Some major sub-sectors of these five sectors are predicted still to be important in East
Kalimantan Province economy at least in next decade.
3.1 Major Sectors Analyses
3.1.1 Oil and Gas

The secondary industries of petroleum and natural gas including its chemical derivate
industries become the largest contributors to the provincial GRDP. Among the leading
industries are Pertamina Balikpapan, PT. Badak NGL and PT. Pupuk Kaltim which all
locates the growth area of Balikpapan and Bontang. This oil and gas sector contributes to
more than 56% of GRDP, and absorbing employment less than 4% of existing labor force
in 2003. The industries are including technology intensive, which requires skilled and
professional worker mostly from outside East Kalimantan.
There are also growing others potential commodities as downstream products of natural
gas, which are feasible for investment. The high demand of fertilizer has created an
opportunity for the company to extend its production capacity and investment. Marine
Paint and wooden adhesive are also prospective commodities derived from natural gas
downstream products, which can be promoted for investment.
3.1.2 Mining
This sector contributed around 9.4% to the GRDP and approximately absorbed 4 %
employment of existing labor force in 2003.
East Kalimantan has large potential of mining resources, some of them have been
exploited (coal) and other potential resources are in exploration stage to measure the
deposit or still indicate its hypothetical figure.
Coal is the major mining potential in East Kalimantan, which recently become precious
energy commodities to replace the high price of oil in global market. Other mineral
potential (nickel and iron) were indicated as potential but no technical exploitation been
made and its economic value are unclear.
Quartz and limestone are basic national use for other industries, which significantly
available in East Kalimantan province but competitiveness with other province and
distance to the costumer become major constraint for a suitable economic value.
3.1.3 Manufactures
Manufacture Sector contributed 8 % of GRDP of East Kalimantan, absorbing employment
about 13.25% of its labor force in 2003. Existing manufacturing companies are
established in major growth center, such as Samarinda, Balikpapan and Bontang. One of
the industries of this sector is metal industry, which produces accessories kit and spare
parts (generally for offshore oil exploitation).
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In general, developments of East Kalimantan have been divided into (two) regions: First
is south region with growth center in Balikpapan, Samarinda, Bontang mostly occupied
with manufacture and agriculture industries and The second is north region with growth
center in Tarakan mainly produces mining and forestry industry. One of the differences
between 2 regions is road infrastructure. In the south region, inland roads connect among
major cities, as well as river transport and sea. Meanwhile, the north region transportation
depends completely to river and coastal transportation, as land transportation condition is
marginal.
Since northern region of East Kalimantan are largely utilize coastal and river
transportation to support construction or mining operation in the area. Dockyard and
Heavy Equipment Repairing Center is suggested as promoting tertiary industry for
investment.
3.1.4 Trade
Trade including hotel and restaurant also provided significant economic growth. This
sector contributes more than 6% of GRDP, while absorbing employment more than 19%
of existing labor force in 2003. Development of this sector is correlated with general
economic condition and industrial development intensity of East Kalimantan. There is no
specific commodity or industry to be proposed for this sector, as most the activities
closely related with growing industries of agriculture, manufacture, forestry and mining.
3.1.5 Agriculture
This sector contributes to more than 6% of GRDP, and absorbing employment more than
36% of existing labor force in 2003. This sector consists 5 sub sectors: Agriculture sub
sector, Plantation, Forestry, Fishery and Livestock. At present, major contribution of
agriculture sub sectors to GRDP are forestry, plantation and fisheries. The main
commodities of those major sub-sectors are pulp, oil palm, cacao, shrimp, etc. These
major sub-sectors have been developed since the latest decade. For instance, oil palm
plantation have been developed by involving smallholder in plasma-nucleus scheme
(PIR) or operated by private enterprises, or state own plantation companies (PTP) in
Kutai Kartanegara, Kutai Barat, Pasir, Penajam, Berau, Bulungan, and Nunukan.
3.1.5a Plantation
Demand for crude palm oil is expected to grow in coming years and reach 40.5 million
Tons by the year 2010 (Oil World, 1996). While, the world production is estimated to be
38,273 million tones in 2010. This means that more supplies are required for world
consumption. This high demand for palm oil has created an opportunity for the company
to extend its production capacity and new investment.
Indicated from National figure, the extension and growth of oil palm plantation areas in
East and West Kalimantan is larger than that of Sumatra provinces. Major oil palm
production is still oriented to traditional CPO, while cooking oil, as a simple downstream
industry has not been significantly developed in East Kalimantan. Potential of large
volume plantation for raw CPO in the future in East Kalimantan is one of the
considerations that investment opportunity in cooking oil is promising.
The second potential plantation crop in East Kalimantan is cacao with a total plantation
area of 33,800 Ha in 2003. This plantation crop dominantly covered the suitable areas in
Kabupaten Nunukan, Kutai Timur and Berau. From the coverage area, East Kalimantan
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was ranks as the fifth largest cacao production in national scale with 3% growth of area
plantation (2002) and reached 21,900 Ton production in 2003.
3.1.5b Land Availability for Plantation

Base on the geomorphologic condition (includes soil and topography) and allocated land
use, the area provided for plantation development as delineated by local government are
presented in the following table.
Table 3-1 Land Area Availability for Proposed Plantation Project Investments
Kabupaten/City Area Available
Pasir 40,000
Kutai Kartanegara 260,000
Berau 210,000
Total 510,000
Source: East Kalimantan in Figure 2003, Plantation Office of East Kalimantan and
calculated by Consultant.
Currently the remaining allocation for large-scale private plantation (PBS) is 2,500,000
Ha. The area become idle land and requested by Provincial Government to revoke from
146 companies who are not (zero) performed to develop plantation over the last 5 years.
From the total land allocation for palm oil and other crop plantation (PBS-Private Large
Scale Plantation) of 3,146,000 Ha, it was indicated that only 315,800 Ha plantation were
operated, 378,000 Ha turned into HGU and others 302,000 Ha are in the process of
business permit.
3.1.5c Forestry
Previously about 38 companies were produced plywood, particle block board, moldings,
sawn timber, flooring, etc. and exported the wood products to Europe, Asia Pacific, North
America, Middle East and Australia. Recently about 30% of these companies are suffered
from turmoil in its production due to a shortage of raw materials; this unsustainable
resources condition is resulting from bad management excessive logging and high growth
of illegal logging practice after decentralization period.
Though, in future, products from non-natural wood resources, like particleboard and MDF
have a good prospect to be developed. Plywood products, which produced based on log
as raw material, were decreased year by year in quantity due to decreasing of log supply
from natural forest resources. The particleboard in Indonesia is associated with plywood
product more as by product industries to utilize the waste from wood or plywood
processing. With the slump of plywood, particleboard industries also suffered, although
an independent particleboard industry could consume waste material or other wood
source from HTI product and ex-plantation trees (rubber), or other non-log materials from
natural forest, which are more sustainable. Particleboard industries are a technical
solution to surviving the wood industry over the low sustainability of natural forest
resources.
East Kalimantan has a pulp and paper industry located in Tanjung Redeb Kabupaten
Berau. The industry has been effectively supported by HTI in the north region of East
Kalimantan, Kabupaten Berau and Kutai Timur, along with new HTI development in
Kabupaten Bulungan, Malinau as well as Nunukan. Pulp industry requires large
investment particularly after mo more re-forestation fund were provide by government
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mainly for HTI to supporting sustainable raw materials. Both pulp and paper are the
promising commodities for East Kalimantan. Paper products are mainly absorbed by
domestic consumption, but these kinds of commodity are possible to develop within
smaller investment scale.
3.1.5d Fishery
The estimated sustainable potency of pelagic fish in East Kalimantan is around 15,148
Ton/year. This is lower than West Kalimantan but the estimated demersal fish, 83,000
Ton/year, which is considered as the highest among Kalimantan provinces. Sustainable
potency of shrimp (penaeid) is estimated as 6,200 Ton/year, which has surpassed by the
operation of 11,500 units of shrimp gillnet recently. Although fishery commodities in terms
of varieties and production from catching of East Kalimantan is better than other
Kalimantan provinces, the competitiveness is weaker compare to North Sulawesi,
Maluku, Papua, and East Nusa Tenggara for higher value of Tuna and Skipjack.
Shrimp and grouper cultivated in brackish water and marine aquaculture respectively are
other promising commodities, which are suitable to be cultivated in a good coastal
environment of East Kalimantan beside to maintain the sustainable of shrimp and
demersal fish resources. Also these commodities are highly demanded for export market.
3.2 Promising Commodities Analyses

According to major sectors analyses above, 11 proposed prospective commodities/
industries were pointed out. Current and future situation of commodities/industries, which
proposed as prospective for investment in East Kalimantan, could be summarized in the
following presentation.
3.2.1 Gas Application Products

No. Point of Brief Description
View
1. Natural As main raw material, natural gas resources are still sustained at reserve
Resources/Raw capacity of 47.82 TSCF (Trillion Standard Cubic Feet) in this area. East
Material Kalimantan has the second largest natural gas resources in Indonesia after
Natuna Island. This ensures the industry lifetime for more than 60 years.
2 Infrastructure Roads in relatively good along network between Balikpapan, Samarinda, and
Kutai Kartanegara and Bontang and the road capacity could accommodate
vehicles at least 20 Ton, while the access road from Bontang to Sangatta
(Kutai Timur) up to Berau district is currently damaged. In Sangatta and
Berau, sea transportations are effectively used, for good and passenger
transportation.
3. Labor The existence of higher technological industries in East Kalimantan has

Requirement contributed to the higher standard of labor skill and labor wages comparing to
other Kalimantan provinces. There are 2 cities as the center of intensive
technological industries in East Kalimantan, especially in oil and gas sector
(Balikpapan and Bontang).
4 Supporting PT. Pupuk Kaltim as national prime fertilizer industry, developed industrial
Industries/ estate, which covered area more than 2,000 Ha for other industries correlating
Business with natural gas.
PT. Pupuk Kaltim industrial zone has completes facilities for future industrial
development. The facilities are harbors, electricity power plant, good access
roads to Bontang city, Balikpapan and Samarinda.
Several suppliers and supporting industries include equipment rental are
available at Bontang, Balikpapan and Samarinda, such as PT. Trakindo, PT.
United Tractors, etc.
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View
5 Market a. Refinery products supplies around 30% of Indonesia eastern consumption.
b. In 2003, LNG production of 44,497,991 m3 (44,467,102 m3 exported with
386 times of shipment), and LPG production of 1,545,682 m3 (1,504,039
m3 exported with 20 times of shipment). There are increasing world
demand as oil prices sharing.
c. Ammonia production of 1,496,323 Tons (320,599 Tons exported), Urea
production of 2,688,845 Tons in bulk and bag (647,564 Tons were
exported to Asia Pacific Countries in bulk in 2003).
d. Other downstream or application products of Natural Gas: melamine, urea,
methylamine products, ammonium nitrate products, adhesive and resin
are allotted for exports and domestic consumptions.
6 Performance of Natural gas downstream products and application are prominent commodities
Opportunities for national and export markets. There are large opportunities to develop
industries in Bontang related with downstream product or application product
of national gas, such as Acrylonitrile, Paint Resin, Caprolactam, Synthetic
Fiber, etc.
From many potential commodities as downstream of natural gas, there are 2
commodities, which are indicated as feasible for investment. Marine Paint and
wood adhesive are two of the prospective commodities related with natural
gas downstream products, demanding by National or Export market.
While wood adhesive, especially urea formaldehyde are important for plywood
and particleboard industries including, MDF and OSB. As mentioned earlier, in
future, products of waste wood panel such as particleboard, MDF and OSB
have good prospect as it uses non-natural forest raw materials, which have a
better sustainable resources.
Figure 3-1 Natural Gas Downstream and Application Products

Feedstock Intermediate Downstream Application
Fertilizer (Nitrogen Source)

Urea Melamine for Melamine Ware
Adhesive for Wood Industry
Explosive Materials for Mining Industry

Ammonium Nitrate Fertilizer (Nitrogen Source)
Natural Ammonia
gas Synthetic Fiber (Nylon) for Textile
Acrylonitrile Paint Resin
Surfaces Coating
Synthetic Fiber for Carpet Industry

Caprolactam Textile and Tires
Fertilizer (Nitrogen Source)

Methylamine Melamine for Melamine Ware
Adhesive for Wood Industry
3.2.2 Coal Mining

View
1. Natural Total deposits of East Kalimantan coal in 48 PKP2B companies areas are about
Resources / 12,590.60 millions Tons, and estimated as possible reserves which can be
Raw Material mined about 4,510.76 millions Tons.
There are two kabupatens have potential coal to be promoted such as
Kabupaten Pasir has predicable quantity is more than 700 millions Tons with
CV: 4,762 - 6,734 cal/g and Kabupaten Malinau has predicable quantity is
more than 300 millions Tons with CV: 5,500 - 7,200 cal/g.
2 Infrastructure Transportation
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View
The better mode of transportation for coal is river. From mining location in
Malinau to coal terminal in Tarakan and Makassar Strait are directly connected
through Sesayap big river. And also from mining location in Pasir to coal
terminal in Balikpapan and Makassar Strait are directly connected through
Kendilo big river.
Coal Terminal
For coal mining exploitation in Kabupaten Malinau, there is a coal terminal at
Tarakan City in an island (Sadau Island) with maximum vessel/barge cap
(DWT) about 10,000 40,000 Tons while other coal terminal is planned to
develop in Tarakan Island.
Near kabupaten Pasir, Balikpapan has coal terminal with large capacity of
vessel. Its terminal also used to collect coal from several regions such as Kutai
Kartanegara, Penajam Paser Utara and Kutai Barat. Balikpapan coal terminal
has maximum vessel capacity 60,000 75,000 DWT with terminal area about
13 Ha and located in Kariangau Industrial Estate.
3. Labor Coal mining in East Kalimantan has been active for more than 20 years and
Requirement stills more development progressing until present. Coal mining is common
integral business, absorbing a large proportion of the labor force in East
Kalimantan. There are available labor forces for coal industry. More than 7,000
people are currently engaged in this sector.
4 Supporting Heavy equipment for mining requirement of Kabupaten Pasir and Malinau will
Industries / be directly supported from Balikpapan and Tarakan, respectively. Several
Business suppliers of heavy equipment are available in both cities, such as PT.
Trakindo, PT. United Tractors, etc.
5 Market Generally, Indonesia coal markets of 2003 have increase from 2002, not only
for export but also for domestic consumption. Domestic consumption has been
increased from 29,257,002.59 Tons in 2002 to 30,657,939.80 Tons in 2003,
while export has been increased from 73,536,353.21 Tons in 2002 to
85,261,047.15 Tons in 2003. Significant increases in domestic consumption
are for power plant and pulp industries, while consumptions for others also
significantly increase. For export market, the amount of exports to Hong
Kong, India, Italy, Switzerland and USA also increased significantly.
East Kalimantan has been contributed to domestic markets for about 29.12%
(2002) and 31.98% (2003) and to export markets for about 61.70% (2002)
and 58.99% (2003).
Because of China policy is stopped export of coal. China coal costumer will
look for new coal resource. However large coal amount also requested by
Philippines which shorter hauling distance is from East Kalimantan.
6 Performance of Coal is still proposed commodity from this sector for investment. Those
existing Coal because coal mining has been important and precious industry of East
Kalimantan as national leading coal producer. Also, coal has been high market
demand in domestic and export, and there is terminated for several company
which location still possess significant deposits and some with high quality coal
(Anthracite).
7 Environment General issues arisen from mining are environmental issues. Mining has
Constraint character whose activities cause environmental damages. Therefore,
management and rehabilitation of environment are more concerned both
presently and after mining exploitation.
Environment management for general mining include coal should follow
Ministry Decision of energy and mining No. 389.K/008/M.PE/1995 about
Preparation Technical Guideline for Environment Management Effort (UKL) and
Environment Monitoring Effort (UPL) for activity of general mining, oil and gas
including electricity and energy development.
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3.2.3 Dockyard and Heavy Equipment Repairing Center

No. Point of View Brief Description
1. Potentiality In south region of East Kalimantan, Balikpapan has dockyard and heavy
equipment repairing center, which play important roles in supporting river and
sea transportation and Agriculture and Forestry industries. On the other hand,
north region of East Kalimantan covering Kabupaten Nunukan, Malinau,
Tarakan, Bulungan, Berau, and Kutai Timur does not possess dockyard and
heavy equipment repairing center. In those northern regions, those are rich in
natural resources and have industries of forestry, fisheries, mining, etc. and
transportations of river and sea, which need support by special dockyard and
heavy equipment repairing center.
2. Infrastructure As mentioned before, in generally developments of East Kalimantan have been

taking place in 2 (two) regions: south region with growth center in
Balikpapan, Samarinda, Bontang and north region with growth center in
Tarakan. One of the differences of 2 regions mentioned above is road
infrastructure. In the south region, inland roads connect among cities, as well
as river transport and sea. Meanwhile, the north region depends on not inland
roads but seas and river transportation as means of transportation.
3. Labor Manufacturing industry needs skilled labor. Tarakan needs supports labor for
Requirement development its industry from other regions, such as Samarinda, Balikpapan
and also from Java especially Surabaya. PT. PAL in Surabaya is a biggest of
dockyard industry in Indonesia has long experience in docking and repairing
center of heavy equipment.
4. Market In north region of East Kalimantan, there are 6 city/kabupatens as growth

centre Tarakan, Nunukan, Bulungan, Malinau, Berau, and Kutai Timur. Each
kabupatens/city has some companies/factories and seaports/river ports, which
need supports for heavy equipment and ship maintenance through special
dockyard and heavy equipment repairing center. The companies are about 35
of forestry companies, 8 of plantation, 18 of fishery and 20 of mining
companies, with medium to high scale of business.
The north region has average number around 50% of East Kalimantan ships
traffic total number and more than 4% annual growth. The number ships
traffic in the north region has the same with south region of East Kalimantan.
While south region already has 2 dockyard and heavy equipment-repairing
center in Balikpapan, north region until now has no. Those indicate that the
north region needs support in maintenance of ship through special dockyard
and heavy equipment repairing center.
5. Performance Local government of Tarakan city and also seaport authority (PT. Pelni) in
Tarakan are very enthusiastic to propose and support the investment of this
industry, because this industry will be very important for Tarakan development
as a service city. Facilities in Tarakan city will be completed with development
of this industry, which have been continually developed by government.
3.2.4 Palm Oil Products (Oil Palm Plantation and CPO Processing, and Cooking Oil
Industry)
1. Natural Oil palm is the largest coverage of plantation crops in East Kalimantan and
Resources/Raw first potential commodity of plantation; in 2003 the oil palm plantation
Material predominantly covers suitable dry land area in kabupaten Pasir (56,224.00
Ha) and in Kutai Kartanegara district (20,048.00 Ha). The total oil palm
plantation area is 158,786 (2003) with production of 791,063 Tons (about
160,000 Tons CPO), which is smaller than those in West Kalimantan and
Central Kalimantan. But when comparing with West Kalimantan, the average
annual growth of palm oil area in East Kalimantan is significantly high (more
than 8% against to 3%, in year 1999 to 2003).
Estimated area for oil palm plantation is about 300,000 Ha in only 2
kabupatens. Kabupaten Pasir has estimated available space area 40,000 Ha
and 260,000 Ha has estimated in Kutai kartanegara (see Table 3-1).
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2. Infrastructure CPO Bulky Harbor
There are 4 harbors for palm oil loading and unloading: 1 harbor at Tabang
(Kutai Kartanegara), 1 at Penajam, 1 at Pasir, and 1 at Sangkulirang (Kutai
Timur).
Warehousing/Storage Tank
In harbor area and transaction area there is no leasing storage tank for CPO,
almost all companies built their own storage tank for their own CPO.
Inland transportation
Land that are suitable for oil palm is located at Kabupatens of Kutai
Kartanegara, Kutai Timur, Pasir, Penajam Paser Utara, and Nunukan. While
Suitable areas, which available for oil palm are located at Kabupaten Pasir and
Kutai Kartanegara. In these Kabupatens of Pasir and Kutai Kartanegara,
inland transportation is in good condition. Especially the access road of
Balikpapan Samarinda Kutai Kartanegara and Bontang has very good
condition. This access road connects to South Kalimantan through Pasir, with
lower condition.
3. Labor Labor requirement per hectare of oil palm is accordingly with the age of oil
Requirement palm. For plantation preparation (Yr-0) it needs 72 man-days / Ha and in the
first year crop needs 43 man-days then in the fourth year up to the 25th year
needs steadily 33 man-days per hectare. This labor requirement pattern is
suitable to the low-density population area such as East Kalimantan. Roughly
oil palm plantation needs only 2 man-months per hectare.
Fortunately the Kabupaten Kutai kartanegara and Kabupaten Pasir have
transmigration settlement. This could be the labor source for oil palm
development of these kabupaten.
4. Supporting Seedling
Industries/ The Seedling centers that have reputable sources of oil palm planting material
Business in Indonesia are as follow:
1. Oil palm planting material of Dolok Sinumbuh
2. Oil palm planting material of Lame
3. Oil palm planting material of Yangambi
4. Oil palm planting material of Bah Jambi
5. Oil palm planting material of Marihat
6. Oil palm planting material of Avros
All centers are located in North Sumatra Province.
Chemical Fertilizer and Insecticide Kiosk
Almost all kabupaten of East Kalimantan Province have chemical fertilizer and
insecticide kiosk at Kecamatan level
Other
Custom clearance for export products will be directly serviced in Balikpapan or
Samarinda.
5. Market Demand for crude palm oil is expected to grow in coming years and reach
40.5 million tones by the year 2010 (Oil World). While the world production is
38,273 million tones in 2010. Of this production projection Indonesia
production is at level 46.43% of world production. Most of the demand for
palm oil will continue to come from within Indonesia itself, China, India,
Pakistan, and Malaysia.
Palm oil producers are expected to increase their share in the vegetable oil
market because:
(a) Oil Palm trees produce a much higher yield per hectare than any other
seed oil and
(b) Palm oil can usually be produced more cheaply than other vegetable
oils.
Total export is increasing steadily since 1999 up to 2003 to India,
Netherlands, China, Malaysia, Singapore, and others from 3,298,986 Tons to
6,379,997 Tons. India and Netherlands are the main importer countries of
Indonesian CPO. Since 2002 Malaysia, CPO producer, also import from
Indonesia in significant amount almost 6 times than 2001 its import. This is
because of Malaysia switch to CPO downstream industry from cooking oil
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producer become oleo chemical producer. This could give opportunity for
Indonesia to fulfill the cooking oil demand through enlargement the existing
cooking oil processing and establish the new cooking oil plant in East
Kalimantan area.
Cooking oil is reported that export volume of Indonesia increased with around
21.69% of average growth rate during 19962003. The largest importing
countries are India, China, Netherlands, Singapore, Turkey, USA and Yemen.
World consumption of vegetable oils on 1998 to 2003 has been increased by
fluctuated growth. Palm oil and palm kernel oil have biggest growth of more
than 9% annually, while soybean oil growth by 6% annually, others just
growth under 3% annually.
Furthermore, the new cooking oil producers in East Kalimantan can meet high
domestic demand, especially in east region of Indonesia where currently there
is no plant for oil production.
6. Performance of Data indicate the existing oil palm plantation point outs that is during the
existing Oil Palm economic crisis plantation is declining and some of existing plantation is
slowdown its activities and in extremely way they withdrawal or sold the
plantation. But after crisis, Being attracted by global consumer prices and
demand, a number of oil palm plantations have been developed in Indonesia,
especially in Sumatera and Kalimantan. Accordingly, the production of CPO in
Indonesia for export market and national consumption has increased.
3.2.5 Cacao
View
1. Natural This plantation crop dominantly covered the suitable areas in Kabupaten
Resources/Raw Nunukan, Kutai Timur and Berau. From the planting area point of view East
Material Kalimantan was the fifth largest cacao production in national scale with 3%
growth of area plantation (2002) and its production reached 21,900 Ton in
2003.
Referring to Table 3-1 as mentioned before, estimated area for cacao
plantation is about 210,000 Ha in Kabupaten Berau. This estimated area is a
large area for development cacao plantation. Comparing with total planted
area of cacao plantation that is 32,277.50 Ha (in 2003), this area has 6 times
larger.
2 Infrastructure Bulky Harbor

There is no specific harbor for cacao bean production in all over the province.
The highest cacao beans production was in year 2003 in Nunukan, that is only
about 13,500 tons. They dont need any special harbor. Harbors for cacao
beans loading and unloading are public harbors, as ones in Nunukan, Tarakan
and Berau.
Warehousing
Storage of Tarakan harbor has area of 1,700 m2 and 3,224 to 3,400 m2 of
open storage, and second line 4,000 m2. Nunukan harbor has area of storage
about 700 m2, and about 600 m2 of open storage. Tanjung Redeb harbor in
Berau has area of storage about 1,000 m2, and about 2,262 m2 of open
storage.
Transportation
Berau has sufficient harbor to support development of plantation and
processing unit. The harbor also could be supplied cacao beans or fruits from
Kabupaten Nunukan and Kutai Timur as producers of cacao fruits to cacao
beans processing unit in Berau. Cacaos from these areas are more easily
transported by water transportation because inland transportations in these
areas are insufficient and damaged.
Export of cacao beans product should be through Tarakan or Balikpapan or
through Surabaya harbors. The custom clearance for export administration
etc. is not available yet in Tanjung Redeb harbor.
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View
3 Labor Labor requirement for cacao processing unit and also for general processing
Requirement industries similarly require the higher skilled labors. For this reason, Tarakan is
the most appropriate among the northern region of East Kalimantan
comparing to others and could support supply labors to other region, such as
Berau, Nunukan, Malinau, etc.
Labor requirement per Ha of cacao is accorded 2 times compared with oil palm
plantation. This labor requirement pattern is suitable for the low-density
population areas such as East Kalimantan. Average oil palm plantation needs
minimum 4 man-months per Ha.
4 Supporting Seedling
Industries/ Cacao seeds good quality could be found as follow:
Business 1. PT. PP. London Sumatera Indonesia, Medan
2. PTP Nusantara II Tanjung Morawa, Medan
3. PT. Hasfarm Niaga Nusantara, Jakarta Selatan
4. PTP. Nusantara, Surabaya
5. PTP Nusantara VIII, Bandung
6. PTP Nusantara IV, Bah Jambi-Pematang Siantar, Sumatera Utara
7. PT. Inang Sari, Padang Mardani, Lubuk Basung Sumatera Barat
8. Puslit. Kopi dan Kakao Indonesia, Jember
9. PT. Perkebunan Glenmore, Jember
10. PTP Nusantara VII, Bdr. Lampung
11. PT. Adijaya Mulia, Jakarta Pusat
12. PT. Tribakti Sarimas
insecticide kiosk at Kecamatan level.
5 Market Cacao production is prominent in national scale, and the majority of the
products are oriented to export market. More than 85% of Indonesian cacao
products are exported and less than 15% of it is for domestic consumption.
Domestic consumption is also supplied by imports but with less volume
(approximately a half of national/domestic supply). Cacao beans accounted
about 80% of the countrys total export of 0.5 million tones in 2003, cacao
butter about 9%, cacao powder about 9.5% and about 2% in pasta product.
Major importing countries are USA and Singapore and Malaysia: beans
products are mainly exported to USA and Singapore and Malaysia, butter
products are exported to USA and Netherlands and powdered products are
primarily exported to USA and Spain.
One of the advantages of Indonesia in term of cacao world market at present
is a decrease in production of many cacao producing counties such as Brasilia
and Ivory Coast due to impacts of virus attack (through fly fruit).
6 Performance of The quality of Indonesian cacao remains still low, since farmers are not fully
existing Cacao aware of the standards regarding cultivation and or fermentation. Other
constraint of Indonesian cacao is a lack of planting and harvesting techniques,
resulting bad performances of cacao beans production.
It is hoped that both quality and production methods of cacao beans are
improved. USA as a leading exporter of Indonesias cacao products has a
program to improve the quality of cacao beans produced by smallholders
plantation. The first phase of this program will be completed by September
2005 with donation of 6 million USD.
3.2.6 Industrial Timber Estate (HTI), Pulp and Paper Industry

View
1. Natural Comparing to other provinces of Kalimantan, at earlier stage East Kalimantan
Resources/Raw developed HTI as raw material production for pulp industry since before crisis
Material economic, making East Kalimantan as a leader of national pulp industry in the
future. The areas of HTI in East Kalimantan reach around 950,000 Ha in total.
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View
They are located in Bulungan, Berau and Kutai Kartanegara. Moreover, there
are about 0.5 million Ha ex-HPH area in all East Kalimantan and 3 million Ha
as critical lands include karsts, which could be planted by industrial timbers
(Forestry Office of East Kalimantan - Forest Development Department, 2004).
2. Infrastructure Mostly of Mahakam River are suitable for transferring raw material product to
downstream. Such as Kutai Barat, Kutai Kartanegara, etc.
The most recommendable area for HTI development by Forestry Office of East
Kalimantan is ex-HPH area in kabupaten Kutai Kartanegara in between
Samarinda Bontang link route of road. This route of road is in good condition
with high capacity of loading more than 20 Tons and can direct access with
pulp and paper plant for easy hauling.
3. Labor Referring to labor requirement per Ha of oil palm is accorded with the age of
Requirement plants, HTI labor requirement per Ha is also accorded with the age of plants.
Comparing to those of palm oil, HTI needs lower labor requirement. For
planting preparation (Yr-0) it needs maximum 72 man-days/Ha, in the first
year crops it needs maximum 33 man-day, and then in the fourth year up to
the harvest year it needs steadily less than 10 man-days per Ha. This labor
requirement pattern is suitable to the low-density population such as East
Kalimantan. On average, HTI planting needs maximum only 2 man-months
per Ha.
4 Supporting Seedling
Industries/ Seedling center that have reputable source of HTI in forestry service.
Business
insecticide kiosk at Kecamatan level.
5 Market Pulp and paper: pulp will be an emerging commodity in East Kalimantan and
around 250,000 Ha of HTI are ready for harvest. Pulp is a strong export
demand commodity including its downstream products such as industrial
paper and cultured paper.
- Plywood industries are dwindling due to a shortage of raw materials and also
they are not considering to be expanded in the future.
- The other products such as sawn timber and woodworking also are declining
for the same reasons
Indonesian pulp did start slowly before 1990, before HTI planting were ready
for yield. In 1993 production achieved only 1.7 millions Ton/annum, however
it rose more than double to 3.7 million ton in 1999. The crisis which made
value of Rupiah sink, has made pulp and paper industry more competitive on
the export market.
6 Performance of Data indicate the existing HTI plantation is still in development. Forestry Office
existing of East Kalimantan; Forest Development Department has been recommended
Plantations that still area for development 1 plant of Pulp and Paper industry in south
region of East Kalimantan. This plant is recommended in downstream region of
Kabupaten Kutai Kartanegara (Kecamatan Sanga-Sanga). Very large
development areas of HTI will support this plant for about 550,000 Ha.
3.2.7 Particleboard Industry

1. Natural Particleboard industry converts almost all of raw material (95% - 100%) into
Resources/Raw end product. This is counted as very efficient if compared to plywood (55%),
Material sawn timber (50%), woodworking (35%) and furniture (25-30%). It can also
utilize residues of wood processing plants (ply wood, sawn timber, furniture,
etc.) as well as utilize wood from planted trees like rubber.
Under current land use situation, East Kalimantan still has a big potentiality
for improvement of particleboard industry as it still has a large area of forest
and also large area of old rubber trees as an alternative of raw material.
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2. Infrastructure Section of Mahakam river from Samarinda city to sea is suitable for big ships
and usually used for wood products, coal, palm oil, container, etc. a long of
year.
3. Labor Wood production in East Kalimantan was established more than 30 years
Requirement ago, and since then it has been developed to the present. In East
Kalimantan, there is integrated business sector and labor force in wood
production, there are at least 38 wood industries with more than 35.000
employees, except sawmills, spreading in the region.
4. Market Based on data from FAO, world particleboard production shown an increase in
recent years. The production in year 2003 before is about 152 million tons or
increased 33% from year 1998.
The general trend is increase as in year 2003; the consumption is about
151,786 or about 39% from it in 1998.
The major producer of particle board is 2003 is USA with share about 18% to
the total production, followed by Germany, China and Canada with each share
about 11%, 10% and 10% respectively. However, most those countries also
have high consumption of particleboard, which meant they are also potential
market for particleboard product.
6 Performance of The number of particle board/MDF mills in Indonesia increased from 19

existing factories in 1994 to 36 particleboard in year 2003. The production capacity
Plantations also increased from 1.2 million M3 to the production capacity of 1.7 million M3
in 2003.
The biggest production capacity is of PT. Daya Besar Agung Corp. in East
Kalimantan, followed PT. Rimba Partikel Indonesian in Central Java as the
second biggest and PT. Kartika Kapuas Sari in West Kalimantan as third
biggest.
3.2.8 Shrimp (Brackish Water Aquaculture)

View
1. Natural Total potential area for brackish water in East Kalimantan is about 112,450
Resources/Raw Ha, so remain for about 56,408.30 Ha of area is can opened for ponds,
Material Remain of 56,408.3 are located majority in Bulungan for about 15,000 Ha,
Nunukan 13,000 Ha, Berau 9,000 Ha, and Kutai Timur, Penajam and Pasir
each about 5,000 Ha.
2 Infrastructure Government has established the facilities for fishery development such as
Laboratory of Fishery Products Quality Test and Control (LPPMHP) located in
Samarinda and Tarakan cities.
The road to the several brackish water aquaculture areas from Bulungan and
Berau capital city is relatively good. It is passable by motorbike and four-
wheel vehicle. In the other locations, river and sea transportation are used as
common conductive mode to transport aqua-cultural products to capital cities
and processing plants in Tarakan.
3 Labor For brackish water aquaculture needs professional staff in water quality
Requirement management, fish biologist, fish quality control specialist in HACCP (Hazard
Analysis Control Critical Points), a procedure to control the food industry
products that applied almost over the world especially in USA, UK, Europe, and
Japan as well. This trained professional should be hired from Java or other
islands. Also the quality control and packaging professional staff as well should
be hired from outside while for labor could fish farmers of the area.
4 Supporting Shrimp Fry and Milkfish Fry

Industries/ Shrimp fry is bought from East Java and South Sulawesi, because shrimp fry
Business from hatchery at East Kalimantan is insufficient to supply the local needs (only
15%).
Ice Factory
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View
At present the ice factory is available in East Kalimantan especially near from
fishpond and fishing port. As usually cold storage has an ice machine, and has
a ice quality standard should be followed. While ice factory is usually no used
standard fishery processing.
Cold Storage
In East Kalimant, there are 16 cold storages located in 9 factories of Tarakan,
1 factory of Berau, 4 factories of Kutai Kartanegara (surrounding Samarinda),
and 2 factories of Balikpapan. Capacity of each cold storage is from 3 to 5
Tons per day.
5 Market Japan is the main market of Indonesian shrimp (60%), USA (16.5%), and
European Community countries (11.6%) and the rest to minor market of Asia.
The frozen shrimp export to US market is about 20,187 ton of US total import
462,152 ton. Since the US suspends its embargo of shrimp import from
Indonesia on 03 January 2004, the US market is open again for Indonesian
shrimp. At present Indonesian has possibility to sale its shrimp to US and
European countries.
In period of 1996 2000 the value of European import the frozen shrimp from
Indonesia is growth at average 44.62% annually, while the volume grow at
42.33% (Eurostat Data).
6 Performance of Individual farmers cultivate majority of existing shrimp farms in East

existing Kalimantan. The total shrimp farmers of East Kalimantan is 7,412, and of this
Plantations 1,007 farmers are located in Kabupaten Bulungan, 2,875 in Kutai Kartanegara
and 1,520 in Kabupaten Pasir
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IV. CURRENT SITUATION AND FUTURE PROSPECT OF MAJOR

STRATEGIC AREAS
In general, East Kalimantan has two development zones with different development
intensity:
Northern development zone: it covers extensive development area in Tarakan, Malinau,
Bulungan, Nunukan and Berau. This northern area accommodates extensive
development in agriculture and plantation (Palm oil and Cacao), fisheries (shrimp),
forestry (HTI), mining (Coal).
These prime commodities are transferred to coastal cities for further process into
secondary products or export through available ports, storage, and Distribution
facilities. Tarakan is the major growth center including other secondary centers;
Tanjung Redeb, Tanjung Selor, Nunukan, Malinau and Sangkulirang.
Southern development zone: it covers the coastal cities of Balikpapan, Samarinda, and
Bontang as primary gateway growth centers, and other secondary gateways
including Tanah Grogot, Penajam, Melak and Tenggarong. Sanggata although
has large coal storage and port, its economic development exclusively influence
by coal mining.
These growth center areas have functioning as central processing, industries and
services. Compare with growth center in northern area, Balikpapan, Samarinda and
Bontang have better competitiveness of infrastructure condition, supporting industries and
availability of skilled labor.
The Major strategic areas in East Kalimantan are Tarakan, Bontang, samarinda and
Balikpapan.
4.1 Tarakan City

The leading sector of Tarakan is service. Tarakan is an island, with a land area of 250.8
km2. Tarakan has a potential to be the gate for hinterlands (4 kabupatens):
Kabupaten Bulungan
Kabupaten Malinau
Kabupaten Berau
Kabupaten Nunukan
The prominent resources in these kabupatens are mining, plantation, and fisheries.
Tarakan becomes a service city and transit for hinterlands. The existing Infrastructure
facilities are relatively sufficient to support Tarakan as a service city (airport, harbor, inter
islands transportation, etc.).
Tarakan has a strategic geo-position, which gains a better access to regional market
(East Malaysia, Brunei, Philippines, etc.) for competitive commodities of coal, palm oil,
cacao, and shrimp. Potential commodities within Tarakan strategic coverage area are
include:
1) Marine aquaculture of grouper and corral fish is proposed to develop, especially in
Kabupaten Berau.
2) Brackish water aquaculture of semi-intensive shrimp culture in Kabupaten
Bulungan.
3) Cacao plantation development and beans processing unit is proposed in
Kabupaten Berau. The beans processing unit is intended to cover a potential
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plantation area of total 24,000 Ha with a production more than 19,500 Tons in
Nunukan, Kutai Timur and Berau.
4) Dockyard and heavy equipment maintenance center are proposed to develop in
Tarakan,
5) Coal mining, some of which have significant higher grade bitumen, is proposed to
develop in Kabupaten Malinau.
Tarakan only has 14 big processing industries, which consist of 9 cold storages (fisheries
sector) and 5 wood industries (forestry sector). Besides these, it has 1 exporter of coal
(mining sector) and more than 700 smallholder industries. The raw materials for these 14
processing industries are generally supplied from hinterlands.
Actually, Tarakan has resources such as oil and gas also coal. Oil production has
average 2,300 barrel per day for support Bunyu refinery, and gas of 23 MSCF (Million
Standard Cubic Feet) per day. There are other mining potential in Tarakan which deposit
are still at hypothetical level and need further confirmation of its economic value.
4.2 Bontang City

Bontang has 49,757 Ha in area with 14,780 Ha (29.70 %) land and 34,977 Ha (70.30 %)
sea, which has a 24.4 km long beach. Bontang has natural gas resources as the largest
in East Kalimantan.
Bontang is a strategic area to facilitate the proposed potential commodities mainly in
downstream natural gas industries. The area is promising for investor to produce
secondary sector such as paint, glue, melamine, fertilizer, etc. Presently Kota Bontang
has facility for LNG, coal and fertilizer development since each sector has own harbor
facility.
Bontang city is an industrial city with big potential resource of LNG. This potential
resource has become leading for LNG based industries. Where its main raw material
(natural gas deposit) on 2001 was estimated about 47.820 TSCF (Trillion Standard Cubic
Feet). This reserve volume ensures the companys sustainability in operation and
development for more than 60 years.
With large amount of LNG resources, Bontang has good prospect as an industrial city
particularly in many kind industries related with natural gas. Currently, there are 2
separated industrial zones, managed and owned by PT. Badak NGL (since 1974) as LNG
producer and PT. Pupuk Kaltim (since 1977) as fertilizer producer. The industries created
multiplier effect in development of other economic activities, such as trade and service,
also make Bontang growing faster.
PT. Pupuk Kaltim industrial zone is named Kaltim Industrial Estate (KIE) managed by PT.
Kaltim Industrial Estate, a subsidiary of PT. Pupuk Kaltim. This industrial area are
recommended for various size of chemical industries particularly those which related to
natural gas or fertilizer, such as: Ammonium Nitrate, Nitric Acid, Acrylonitile, Caprolactam,
Methyl Amine, etc. This potential is a promising opportunity for investors.
However, Bontang land area is very limited and has less than 5,248 Ha for development
of other sectors. Land area of Bontang is categorized as follow:
Land Utilities Area % By Total

Land
Kutai National Park 5,950 Ha 40.26
PT. Badak NGL industrial zone 1,572 Ha 10.63
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Land Utilities Area % By Total

Land
PT. Pupuk Kaltim industrial zone 2,010 Ha 13.60
Development area include 5,248 Ha 35.51
government offices, infrastructures,
human settlements, etc.
Source: Bappeda of Bontang, 2004
4.3 Samarinda City

Leading sectors in Samarinda are service, trade and processing industry. Samarinda city
covers the area of 71,800 Ha. As a capital city of East Kalimantan province, Samarinda
City is an important gate for all Kabupatens/cities, also as business orientation, especially
for the high potential resources areas, such as:
Kabupaten Kutai Kartanegara
Kabupaten Kutai Timur
Kabupaten Kutai Barat.
The prominent resources of the region are forestry, mining and plantation.
As a city of service, trade and processing industry, Samarinda is provided with facilities
and infrastructures for supporting these sectoral industries. Samarinda is a strategic area
in facilitating the proposed potential commodities of forestry, and plantation leading
sector:
1) Potential HTI of more than 550,000 Ha in Kabupaten Kutai Timur, Kutai Kartanegara,
Pasir, etc. for pulp processing product.
2) Sustainable wood industry such as block board and particleboard is promising to
development in Samarinda.
Samarinda is the biggest city in East Kalimantan and plays important roles in East
Kalimantan development. Besides government role, Samarinda plays an important role
as collector and distribution center of primary product from hinterland and consumption
commodities from outside islands. Economic goods from the surroundings of Samarinda
are woods, coal, cacao, pepper, etc. On the other hand, consumption goods such as
sugar, wheat, and others are transported from outside of Kalimantan, e.g. from Java and
Sulawesi
Based on the Use of Land Regulation of 2001, the utilization of land in Samarinda city is
as follows:
Buildings and yards 21,199 Ha, heavy forests 1,375 Ha, light/smallholder forest 1,709 Ha,
smallholder plantations 5,201 Ha, farm and plantations 10,357 Ha, rice fields 12,920 Ha,
grass fields 55 Ha, swamps 497 Ha, pond & embankment 74 Ha, dry land 14,872 Ha and
others 3,554 Ha.
Samarinda is not rich in natural resources. But Samarinda has facilities for processing
industries. Plywood manufacture is among processing industries in operation. The raw
materials for these processing industries are not originated from Samarinda but generally
supplied from hinterlands, And also in mining sector, coal from Kabupaten Kutai
Kartanegara is carried out via Mahakam river to Samarinda, and then to offshore loading.
The important and strategic economic and development function of Samarinda is as a
general gate of East Kalimantan and a service city for potential hinterlands areas
(Kabupaten Kutai Kartanegara, Kutai Barat and Kutai Timur).
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4.4 Balikpapan City

Kota Balikpapan is a southern gateway of East Kalimantan Province. Leading sector of
Balikpapan is oil and downstream industry. Balikpapan City has 50,330 Ha in area.
Mining is the largest contribution sector for the non-oil and gas export group in
Balikpapan, which supports other industry to develop.
With its sufficient infrastructures and facilities and as important gate of East Kalimantan,
Balikpapan has stimulate the development of other industries, mainly in related oil and
gas sector.
Balikpapan also facilitates the economic development in hinterland areas by absorbing
their raw product for processing or trading to other islands or countries. Hinterland
kabupaten influences by Balikpapan economy are:
Kabupaten Pasir
Kabupaten Penajam Paser Utara
Kabupaten Kutai Barat
This region has competitive resources for plantation development and has a facility
Karianggau Industrial Estate.
Balikpapan is a strategic area to facilitate leading industrial product and commodities of:
1) Palm oil plantation and crude palm oil (CPO) product from potential plantation of more
than 50,000 Ha in Kabupaten Pasir, more than 20,000 Ha in Kutai kartanegara, more
than 15,000 Ha in Penajam, etc.
2) Downstream product of CPO: cooking oil (margarine) and shortening as proposed its
processing industry in Balikpapan.
Balikpapan is an industrial city with rich potential resources and big industries of oil. This
potential leads others to oil based industries. The main raw material is available; oil
deposits of East Kalimantan transported to Balikpapan refinery amount more than 1.18
billion barrels in 2001. At the same time oil deposits in Indonesia has a total amount of
about 40.91 billion barrels. Balikpapan refinery supplies about 30% of national fuel need
in east Indonesia.
Other advantage of Balikpapan is the position as a main gateway from and to East
Kalimantan. Balikpapan is expected to play an important role in distributing primary
products from hinterland regions e.g. Kabupaten Kutai Barat, Kabupaten Kutai
Kartanegara, Kabupaten Pasir, and Kabupaten Penajam Paser Utara. The leading
economic products from the surrounding of Balikpapan are woods, oil palm, coal, rubber,
cacao, coffee, etc.
4.5 Business Development in Strategic Areas

Strategic Recommended Existing Infrastructures and Facilities
Area Business
Kota Service, trade and Land Transportation
Samarinda processing industry such Samarinda has good accessibility inland transportation to
as Wood industries, northern (Bontang), to western (Tenggarong/Kutai
warehousing, forwarding, Kartanegara) and to southern (Balikpapan).
shipping, etc.
Harbor
Samarinda harbor is 3rd class type of harbor, which managed
by PT. (Persero) Pelabuhan Indonesia (Pelindo), and open to
foreign and general trade.
Facilities
Samarinda has lots of hotels, and other accommodations, and
banks. In 2003, there are 38 hotels (3 as star hotel) with
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Area Business
more than 3,000 rooms, 14 public banks and 1 local
governments bank and 1 Regional Office of Indonesia Bank
Central, 8 general hospitals, and many car rentals (including
non-metered taxies).
Kota Oil and the downstream Land Transportation

Balikpapan industry, service, trade Balikpapan has good accessibility inland transportation to
and processing industry northern part (Samarinda, Tenggarong and Bontang).
such as Palm Oil
Industries, and Seaport
downstream product of Seaport Semayang in Balikpapan is categorized as a class 3
CPO as like cooking oil, harbor, which is managed by PT. (Persero) Pelabuhan
margarine, etc. Indonesia (Pelindo), and open to foreign and general trade.
Airport
Balikpapan has an airport (Sepinggan International Airport),
which is managed by PT. Angkasa Pura, is the second busiest
airport in Indonesia after Soekarno-Hatta International Airport
in Jakarta. It serves local routes, like to Tarakan, domestic
routes to Jakarta, Semarang, Surabaya, Makasar, and other
cities, and international routes to Singapore. In the Hajj
season, there are direct flights from Sepinggan to Saudi
Arabia.
Facilities
The banks operating in Balikpapan are Bank Indonesia, Bank
Mandiri, BNI, BCA, BRI, BII, Bank Danamon, Amro Bank, Bank
Muamalat, Bank Permata, and Bank Economy. Insurance
companies operating in Balikpapan are numerous. Up to 2002,
there were 21 insurance companies.
As a gateway to Kalimantan, a transit city, and a tourist
destination, Balikpapan has adequate accommodation
facilities. Official data show that in 2002 there were 40 hotels,
including 10 star hotels. Grand Senyiur is the only five-star
hotel in Balikpapan. Overall, the hotels in Balikpapan have
1,960 rooms, consisting of 1,051 rooms in star hotels and 909
rooms in non-star hotel.
Balikpapan has 1 public hospital, 2 military hospitals, besides
1 public maternity clinic and 1 private maternity clinic.
Overall, the hospitals and clinic have 687 beds and 1,053
medical workers. Other health facilities are 25 public health
service center, 15 private and military clinics, 3 national
dispensaries, 46 private dispensaries, 1 pharmaceutical
wholesaler, and 9 medical laboratories.
Bontang LNG producing, industries Land Transportation

based on LNG (Ammonia), Bontang has good accessibility inland transportation to
and downstream product southern part (Samarinda, Tenggarong and Bontang).
of ammonia as like
Fertilizer, Synthetic Fiber, HarborThere are two kinds of harbor, such as harbors in each
Textile, Tires, Melamine industrial zone and public harbor.
and Adhesive, etc. PT. Pupuk Kaltim built 4 harbors; 3 harbors for fertilizer with
capacities of 6,000 DWT 20,000 DWT and 40,000 DWT, and 1
harbor for ammonia with a capacity of 40,000 DWT. The
harbors can anchor 7 vessels at the same time, giving these
harbors a combined shipping capacity of about 4 million tons
of fertilizer and 2 million tons of ammonia per year. While,
ICD (Indonesian Card Datum) is 12 meters, ships of up to
100,000 DWT can pass the sea line of PT. Pupuk Kaltim quays.
PT. Badak NGL built 3 loading piers that have the ability to
handle 3 shipments at the same time. Up to December 2002
from 1977, Badak NGL plant had made 4,713 shipment LNG
and 277 shipment LPG by about 55,000 tons per shipment of
LNG and about 45,000 tons per shipment of LPG. In 2002,
from the piers, there were 357 shipments of LNG and 20
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Area Business
shipments of LPG.
Facilities
Bontang have many hotels, other accommodations, and bank.
In 2002, there are 18 hotels (one as star hotel) with 425
rooms, 5 public banks, 1 local governments bank, 5 general
hospitals, and many car rentals (including non-metered).
Bontang Lestari is new town of Bontang is still under
construction, which city government will be centered and
managed become safety and complete facilities. Bontang
Industrial is international scale required sufficient supporting
various city facilities.
Tarakan Service and processing Seaport

industry such as wood Port of Tarakan (Malundung Port) manages by PT. (Persero)
industry, cold storage, Pelabuhan Indonesia (Pelindo) IV Tarakan is open to foreign
Dockyard and heavy vessels and is a port of general trade status.
equipment maintenance,
etc. Airport
Airport in Tarakan (Juwata Airport) as the northern gate of
East Kalimantan is managed by UPT. Ditjen Perhubungan
Udara (Directorate of Air Transportation, Ministry of
Communication).
This airport serves small plane flight, Boeing 737 plane flight
and also medium plane flight as Fokker. Boeing 737 planes fly
daily regular flights from Jakarta via Balikpapan (Sepinggan
Airport) by Mandala Air Service (in one flight) and Merpati (in
2 different flights; Jakarta Balikpapan, and Balikpapan -
Tarakan), and two weekly international flights by Malaysian
Air Service to Tawau-Malaysia. Capacity of this Boeing 737
plane is 148 passengers.
Facilities
Tarakan have many hotels, other kinds of accommodation,
and bank. In 2004, there are 28 hotels (4 as star hotels) with
a total of 486 rooms, 4 public banks and 1 local governments
bank, 5 markets/shopping centers, 2 general hospitals, and
many car rentals. Available taxies are without any automatic
fare meter (argo).
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V. CONSTRAINTS IN INVESTMENT CLIMATE
(1) In case of road construction, the area faces with the problems of soft soil. On the
other hand, since there is no road that directly connects plantation sites and the
main roads, the investors should construct their own access road and drainage
system. The water transportation has been restricted in dry season since rainfall
influences water depth and mileage.
(2) Sediments to Samarinda river port. The sediments will excessive by the application
open mining of coal Kabupaten Kutai Kartanegara, and Kutai Barat. Therefore the
Samarinda river port needs to be dredging annually to meet the to big ship
navigation requirements. The beginning of 2005 the dredging and river widening
works will be implemented continue; this is financing by Government budget.
(3) The new prospected area such as Kabupatens of Malinau, Nunukan, Kutai Barat
and Kutai Timur does not well equipped with facilities of star hotel, limited
commercial banks, warehousing, etc.
(4) A total area of 4,525,479 Ha has been utilized for community plant estate (199,700
Ha), fisheries (56,350 Ha), and agriculture (168,864 Ha). While, the area with a
license for plantation estate is about 3,146,070 Ha, which belongs to 188
companies. Therefore, the remaining area is about 1.1 millions Ha for settlement,
industry, and etc.
Currently, the total area of plantation (palm oil, rubber, etc.) is 138,881 Ha (only
4.41% of permitted plantation land area 3,146,070 Ha). Therefore the available area
for further investment in plantation is 3,007,189 Ha or more than 95.59%. The fact
that 26.42 % conversion forestland have been converted into plantation land
awarded to investors are still idle. This indicates that the realization of plantation
scheme is still under limit of available land. So, to maximize the utilization of
allocated but idle land area of 3,007,189 Ha should be activated or taken over by
other potential investments
(5) Kabupaten Governments provide no special incentives for investment; they follow
the guideline and investment incentive that given by BKPM.
(6) Excessive effort to collect revenue from tax and retribution become their target,
which make a further high economy cost and low competitiveness of the region to
attract investment.
(7) Plantation Business Permit limits the size of plantation scheme at 20,000 Ha for
each company in one province, or 100,000 Ha per company in all provinces of
Indonesia. Business permits for pulp and paper plant are issued by the Ministry of
Trade and Industry while the business permits for timber estate (HTI) are issued by
the Ministry of Forestry; thus, a new investors, prior to submitting his proposal, has
to study the coordination among related agencies.
(8) The main problem of labor is deference in productivity. At some place the
productivity of migrant labor is higher than the local counterpart, but to hire the
migrant labor especially from outside could create jealous problem.
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VI. PROPOSAL OF PROSPECTIVE PROJECTS
Analysis as presented in Chapter 3 with some consideration on Chapter 1, 2 also Chapter

4 and constraint in Chapter 5 point outs the commodities proposed that could be
recommended for investors to establish the business in East Kalimantan. There are 11
commodities and industries, which identified in Chapter 3 as the prospective
commodity/industry that suitable to be proposed for investment.
Some of the prospective commodities/industries above will be presented in this chapter
as project profile, these are:
1) Coal Mining, 2) Oil palm Plantation and CPO Processing, 3) Industry of Cooking Oil,
Margarine and Shortening, 4) Cacao Plantation, 5) Industrial Timber Estate (HTI), Pulp
and Paper Industry, 6) Particle Board Industry, 7) Shrimp (Brackish water aquaculture),
and 8) Dockyard and Heavy Equipment Repairing Center.
Each proposed project generally will present in the following order:
1) General Overview, 2) Competitiveness, 3) Market Opportunity, 4) Potential Location, 5)
Infrastructure and Business Support Facilities, 6) Project Component, and 7) Business
Scale
6.1 Coal Mining Project Profile

1 Project Name Coal Mining
2 General View Coal is a demanding energy alternative to replace a high increasing price of
petroleum. Coal is categorized into 4 major products, which are:
1. Lignite: as lowest calorie of coal and highest water content (2000-3000
kcal/kg and 30-45%).
2. Sub-bitumen coal: produce 5000-6000 kcal/kg and with 10-25% water
content.
3. Bitumen coal: has 7000-8000 kcal/kg with 6-10% water content.
4. Anthracite: is the high calorie of coal, with 7000-8000 kcal/kg and only 1-
3% of water content.
In East Kalimantan, there are 48 mining operator companies in East
Kalimantan consist of 7 companies under generation-I contract, 7 from
generation-II contract, and 34 from generation-III contract. From total 48
companies, only 9 mining companies were operated including other 5
companies under mining authorization to produce a total more than 60
millions Ton in year 2003.
3 Competitiveness Indonesia is included in countries of major products of coal, with hypothetic

deposit at end of 1997 reach a number of 36.6 billions Ton and in 2004
increase to about 50 billions Ton, while, East Kalimantan has hypothetic
deposit of coal more than 17 billions Ton.
In 2003, from the total national product (114,278,195 Tons), East Kalimantan
contributed more than 52% (60,168,384 Tons). Total deposits of East
Kalimantan coal in 48 PKP2B companies areas are about 12,590.60 millions
Ton, and in other resource areas estimated as possible reserves which can be
mined about 4,510.76 millions Ton. This other areas are opportunity for
investment.
4 Market World trade of coal has been becoming significantly changed because of China
Opportunities reducing their export to support their own industries. Moreover, China also
imported coal to save guard their energy reserve. Besides, world demand of
coal has been continuously increase, for example Philippine country is still
require more than 10 millions Ton per year and several ASEAN countries, such
as Malaysia and Thailand are still needed more volume of coal. Presently,
Indonesia is exported coal to South Korea, Japan, Taiwan, and will be added
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new costumers from ex China coal importer.
The limited of coal in the world trade is another opportunity for Indonesia coal
to be explored more intensively. Coal resources in Indonesia are still
sustained at more than 50 billions Ton, for at least 50 years exploitation.
Indonesian coal price in the end 2004 has been increased to more than USD
30 (per Ton FOB 6,700 cal/g). On 2005, Indonesian coal price are estimated
to be increase to USD 35.
Indonesian coal price has been decreased gradually from highest price on
1990 of USD 47.75 to the lowest price on 2003 of USD 28.63. But, this price
still better than Australia-Japan Benchmark Coal Price. In general Indonesian
Coal prices is above the average price of coal supplied through Australia, and
Japan markets, as presented in Figure 6-1.
5 Proposed There are at least 2 kabupatens, kabupaten Pasir and kabupaten Malinau that
Location have potentials for coal mining investment. Both areas: Kabupaten Pasir has
predicated quantity more than 700 millions tons with CV: 4,762 - 6,734 cal/g
and Kabupaten Malinau has predicated quantity more than 300 millions tons
with CV: 5,500 - 7,200 cal/g.
and Business The best transportation mode for coal is river. From mining location in Malinau
Support to Tarakan coal terminal in Makassar Strait are ablees for barge carrier
Facilities through Sesayap river. And also from mining location in Pasir to coal terminal
in Balikpapan and Makassar Strait are directly connected by Kendilo big river.
Coal Terminal
Tarakan has coal terminal capacity up to 10.000 40.000 DWT, as other
terminal is prepared to built in the Tarakan island. Balikpapan has coal
terminal with 60.000 75.000 DWT capacity located in Kariangau.
Heavy Equipment
Heavy equipment supply and maintenance are easily supported from
Balikpapan and Tarakan. Several heavy equipment supplier and rental are
available in Balikpapan and Tarakan, such as PT. Trakindo, PT. United
Tractors, etc.
Other
Custom clearance for export mining product from Kabupaten Pasir and
Malinau will be directly served in Balikpapan and Tarakan, respectively.
7 Project The main cost factors arises in many mining business application and its
Components exploitation are indicated to be occurred in the following components:
Permit Application : PKP2B license, mining location permit, HGU,
and IUT (Exploitation permit) including
environment impact analysis.
Land : Land price of coal mining has a various
fluctuated depend on infrastructure availability
and location which ranging around Rp. 2,000 to
Rp. 12,500.- per meter square.
Building/Factory : Coal mining is not needed special factory
building for produce coal. Building needs for
office or transportation/equipment warehouse
and maintenance activities (workshop). In
some mining location areas offices and housing
for workers are needed.
Equipment/Machine and
Transport/Vehicle : Mining equipments/machines, tractors, trucks,
workers vehicles, etc., particularly related to
import duties for equipment and tools, which
are not available in Local market.
Labor : Standard labor wage for coal mining based on
Provincial Minimum Wage (UMR Provincial) of
East Kalimantan is Rp. 672,000 per month.
UMR is the minimum salary for lowest position
in job or function or settle. So the salary for a
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higher position or function should be more.
Electricity : Since electricity are not available in remote
areas, power supply units (generators) are
needed with sufficient number and capacity.
Clean Water : Clean water is needed for washing process.
Deep well pump is required in some mining
location with sufficient number and capacity.
Abstraction from river raw material in large
amount requires permit from Local
Government.
8 Proposed Coal mining activities need intensive capital, for exploitation technology and
Business Scale market based investment. Not limited to long-term exploitation activities,
significant cost will also be required for environmental management including
land rehabilitation or reclamation over ex mining areas.
Figure 6-1 Trend of Indonesian Export Coal Price and Australia-Japan Benchmark Coal Price
Price (USD per Ton FOB 6,700
45.00
Coal price in end 2004
Estimated coal price in 2005
40.00
35.00
cal/g)
30.00
25.00
Australia-Japan Benchmark Coal Prize Indonesia Export Coal Prize
20.00
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
19
19
19
19
19
19
19
19
19
19
20
20
20
20
20
20
Year
Source: Kaltim Prima Coal, 2004 Barlow Jonker, 2004
6.2 Oil palm Plantation and CPO Processing Project Profile

1 Project Name Oil palm plantation and Crude Palm Oil (CPO) processing Unit
2 General View The fruit is reddish, about the size of a large plum and grows in large
bunches. A bunch of fruits can weight between 10 to 40 kilograms each.
Each fruit contains a single seed (the palm kernel) surrounded by a soft oily
pulp. Oil is extracted from both the pulp of the fruit (palm oil, an edible oil)
and the kernel (palm kernel oil, used mainly for soap manufacture).
For every 100 kilograms of fruit bunches, you typically extract 22 kilograms of
palm oil and 1.6 kilograms of palm kernel oil.
3 Competitiveness From 1999 to 2003, East kalimantan productions of oil palm grew average
more than 22.52% per year, and the areas of oil palm plantation grew
average 8.29% per year.
Remain estimation of land area available for proposing plantation is about
510,000 Ha. Based on the study, those areas could be proposed for oil palm
plantation about 300,000 Ha.
An effort of government that plant estate license should be reviewed and
proposed to be terminated by Governor of East Kalimantan province, based
on letter No. 521/6115/Proda.2.1/Ek, dated 26 September 2003, about there
are 146 companies with total area of about 2.5 million Ha (minimum about
1.36 millions on slope 2-15%), if effectively work will be give more
opportunities for the new potential investors or for expansion planted area of
existing companies. With this effort hoped that oil palm plantation will be
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grow in 2004 to 2005 and so on.
4 Market Demand for crude palm oil is expected to grow in coming years and reach
Opportunities 40.5 million tones by the year 2010 (Oil World, 1996). While, the world
production is estimated amount of 38,273 million tones in 2010. This means
that the demand exceeds supply in this market. This high demand for palm oil
has created an opportunity for the company to extend its production capacity
and investment
2010 projection indicates that Indonesia will become as the leading palm oil
producing countries. Its caused Indonesia has available area for develop
plantation.
The CPO price decreasing in year of 1998 up to 2001 as presented in Figure
6-2 could be because of oversupply of CPO that have planted in 1996 are in
ripening or harvesting stage so the production going up. Also some countries
like Malaysia, Puerto Rico, PNG supply the market. While the CPO price
fluctuation between 2001 and 2004 is still in normal market competition.
5 Proposed At present estimated the most available and suitable remain areas for oil
Location palm plantation is about 300,000 Ha in only 2 kabupatens. Kabupaten Pasir
has estimated available area 40,000 Ha and 260,000 Ha has estimated in
Kutai kartanegara.
6 Infrastructure CPO Bulky Harbor

and Business All over the province, there are 4 harbors for palm oil loading and unloading:
Support Facilities 1 harbor at Tabang (Kutai Kartanegara), 1 at Penajam, 1 at Pasir, and 1 at
Sangkulirang (Kutai Timur).
Warehousing
In harbor areas and transaction areas there is no leasing warehousing for
CPO; almost all companies built their own warehouse for their CPO.
Semayang public harbor in Balikpapan and Samarinda public harbor have
sufficient storages to be utilized for CPO export.
Heavy Equipment
Several suppliers of heavy equipment are available at Balikpapan and
Samarinda, such as PT. Trakindo, PT. United Tractors, etc.
Other
Custom clearance for export products from Kabupaten Pasir and Kutai
Kartanegara will be directly serviced in Balikpapan and Samarinda,
respectively.
7 Project The main cost factors arises in many plantation business application and
Components operation are indicated in the following issues:
- Permit : Cost to provide plantation location permit, HGU, and
IUT.
- Land : Land price for plantation are largely un uniform
depend location and available infrastructure which
ranging about Rp. 1,000 to Rp. 5,000.- per meter
square.
- Building/Factory : The cost for building of the factory will be base to
international prices of Balikpapan prices, since major
component of the Factory are made or produced in
Jakarta or imported. Building cost for office and
housing can use local base prices (kabupaten).
- Equipment/Machine : Factory equipments for CPO processing including
laboratory are base to the import prices.
Consideration should be made to the import duties
applied to the correlated equipment.
- Transport/Vehicle : Local (Kabupaten) prices implemented to regular
vehicles which were produced in Indonesia. For
imported vehicles, imported prices should be use
including the import duties.
- Labor : Standard wage plantation labor is based on Provincial
Minimum Wage (UMR Provincial) of East Kalimantan,
that is Rp. 636,000 per month. Average oil palm
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plantation needs only two man-months per Ha.
- Raw Material : Seed, should be supported from out of Kalimantan or
import, with import prices or domestic prices. While,
fertilizers mostly are available at local (Kabupaten)
market, and can be purchased at local prices.
- Electricity : No available supply provided by state electricity
company. Each investor should prepare their own
independent power supply.
- Clean Water : Clean water should treated from available raw water,
either form river abstraction or ground. No clean
water facilities provided by government in most of
remote areas.
8 Proposed Oil palm plantation and CPO mills activities are needed intensive capital,
Business Scale technology and market based investment. Oil palm plantation requires large
area to provide sustainable fresh fruit bunch for CPO production; land possible
additional area may needed for future expansion. Followed to available
regulation, there is impossible to build processing CPO without provides
sustainable plantation. Thus investment in CPO and Palm oil plantation is
include as capital-intensive project.
Figure 6-2 Trend of Indonesian Palm Oil (CPO) Price at Rotterdam Market
700
665
600
550
Price USD/Ton
500
447 440
400 407
336
300 283
200
100
0
1997 1998 1999 2001 2002 2003 2004
Year
Source: Joint Marketing Office, PTP Nusantara (Persero), Jakarta
6.3 Cooking Oil Project Profile

1 Project Name Cooking Oil Industry
2 General View Cooking oil is the downstream product of CPO, the other downstream area is
also chemical which appears in trade name as Ester and Amino, etc. This Ole-
Chemical product requires higher technology for processing.
3 Competitiveness As CPO downstream product, cooking oil absorbs around 70% of CPO raw
material. The other remaining is further processed for soap (11%), margarine
(10%) and oleo chemical (9%). Being attracted by global consumer prices, a
number of palm oil plantations have been developed in Kalimantan, especially
in West Kalimantan, Central Kalimantan and East Kalimantan.
In national scale, the extension level of oil palm plantation in East and West
Kalimantan is larger than that of Sumatra provinces. But, industry of cooking
oil as simple downstream industry has not been developed yet in East
Kalimantan. While, 2 units have been established in West Kalimantan, one of
which is owned by state plantation company.
Future large number of raw CPO production and strong cooking oil market
demand are the considerations for cooking oil investment opportunity, which
is promising. Moreover, development of oil palm plantations in Kalimantan,
particularly East Kalimantan will give a better competitiveness. Every year
planted oil palm area and production of fruit branches were increasing.
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4 Market The largest importing countries are India, China, Netherlands, Singapore,
Opportunities Turkey, USA and Yemen. In 1996, the total export volume was only 690
thousands Ton, while in 2003, the total export volume was increase to 2,727
thousands Ton.
Domestic consumption of cooking oil has been increasing, which may result
from population increase and also an increase of consumption per capita. A
slight decline occurred in 1998 due to limitation of national cooking oil stock,
casing higher prices in retail market. Domestic consumption per capita is
estimated to reach 8.43 kg in 2003 from only 6.01 kg in year 2000 and
projected up from 2003 domestic consumption per capita will be increase.
Furthermore, the new cooking oil producers in East Kalimantan can meet high
domestic demand, especially in east region of Indonesia where currently
there is no plant for cooking oil production.
According to Malaysian Oil Palm Statistic 2003, world consumption of cooking
oil is also increased by average more than 9% between 1998-2003.
5 Proposed Kariangau is oriented for manufacturing and light industries (it available
Location potential space for 28 big companies and 79 small medium enterprise).
and Business As a gateway to East Kalimantan, Balikpapan is a transit city to other cities or
Support Facilities kabupatens in East Kalimantan, also to neighboring provinces, like
Banjarmasin in South Kalimantan. The access road of Balikpapan
Samarinda Kutai Kartanegara and Bontang has very good condition. This
access road connects to South Kalimantan through Pasir, with lower
condition.
Harbor/Seaport,
First, Seaport Semayang in Balikpapan is categorized as a class 1 harbor,
which is managed by PT. (Persero) Pelabuhan Indonesia (Pelindo), and open
to foreign and general trade. The activities of port include local inters lair and
ocean going. The storage/warehouse facilities of port are still limited.
Second, Kariangau harbor has the depth of 12 m and can be served ocean
going with capacity ship about 35,000 DWT. It will be implemented middle
2005 through allocated budget APBN 2005 with amount of US$ 92 million.
Airport,
Balikpapan has an airport (Sepinggan International Airport), which is
managed by PT. Angkasa Pura, is the one of busiest airports in Indonesia
after Soekarno-Hatta International Airport in Jakarta. It serves local routes,
like to Tarakan, domestic routes to Jakarta, Semarang, Surabaya, Makasar,
and other cities, and international routes to Singapore. In the Hajj season,
there are direct flights from Sepinggan to Saudi Arabia.
Heavy Equipment
Heavy equipment will be directly supported from Balikpapan or Samarinda.
Several suppliers of heavy equipment are available at Balikpapan and
Samarinda, such as PT. Trackindo, PT. United Tractors, etc.
Incentives
Incentive will be provided by local government, if the investors allocate its
industries in Kariangau Industrial Estate for certain commodities related to oil
and gas, palm oil, cacao, rubber, shrimp, food beverages and handicraft. The
incentive applies to the reduction of retribution for local permit and building
permit.
Other
Custom clearance for export products will be directly serviced in Balikpapan
or Samarinda.
7 Project For cooking oil industry, consideration is to be made to several cost

Components components related to project development operation. The main cost factor
are explain in the following list:
Permit : Cost related of location permit, HGU, IMB and IUT.
Land : Land prices for cooking oil industry are not
uniform depend to available infrastructure and
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accessibility. Land prices in KIK (Kariangau
Industrial Estate) range about Rp. 300,000 to Rp.
500,000 per meter-square (year 2003).
Building/Factory : Building cost are refer to Jakarta prices and import
prices for factories which uses imported material.
Local cost is use as reference for standard building
construction as offices, houses, etc.
Equipment/Machine : Factory equipments for cooking oil processing
including the CPO clearness, CPO saturated fat
rate, steam, distillation, product control small
laboratory, and packaging installation, etc. are
base to the import prices. Consideration should be
made to the import duties applied to the
correlated equipment.
Transport/Vehicle : Local (Kabupaten) prices implemented to regular
Labor : Labor wage for cooking oil industry in Balikpapan
is Rp. 732,000 per month.
- Electricity and Clean Water : Both are provided in the industrial Estate
independent supply by investor is not
required.
8 Proposed Considering to existing production of CPO and development of oil palm

Business Scale plantation in East Kalimantan, the project include as medium scale
investment, with maximum capacity about 50,000 Tons a year. In 2003, East
Kalimantan was produce more than 150,000 Tons of CPO. Generally, all
cooking oil factories in Indonesia are in scale of business under 100,000 Tons
a year.
Cooking oil industry requires semi-intensive capital, moderate to advance
technology and intensive market based investment. Based on Indonesia
Cooking Oil Production 1996 2003 as mention before, export quantity was 2
times comparing to domestic consumption. In last 5 years the proposed
project for East Kalimantan is considered as medium to high investment scale
business.
Figure 6-3 Trend of Indonesian Cooking Oil Price at Rotterdam Market
700
600 618
Price (USD/Ton)
500 472
445
400 384 397
300
200
100
0
1998 1999 2001 2002 2003
Year
Source: Joint Marketing Office, PTP Nusantara (Persero), Jakarta
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6.4 Cacao Plantation and Beans Processing Unit Project Profile

1 Project Name Cacao Plantation and Cacao Beans Processing Unit
2 General View Raw material is cacao beans produced by cacao plantation. East Kalimantan
produce 21,900 ton of bean (2003) from 32,278 Ha plantations as the fifth
largest product of Indonesian provinces.
Three basic type of cocoa which are criolo, a basic South American plant
which very sensitive to disease and pest, Forastero is a more resistant as
ordinary cacao, and Trinitario is a hybrid, which has better performance.
Forastero is the dominant cacao planted in Indonesia.
Development of Central government policy in cacao development is focusing
to rehabilitate cacao plantation (mostly smallholders) and technical
assistance to smallholder. Also facilitation is provided for cacao processing
product.
3 Competitiveness Indonesian product of cacao beans are increasing in the last decade by
average 9.5% per year from 270,000 ton in 1994 to 510,000 ton in 2001
yielded by expanding cacao plantation of 574,000 Ha in 1994 to 668,000 Ha
in 2001. While on 2003, the area of cacao plantation increases to 722,000
Ha whits its production of beans more than 550,000 Tons.
The strong point of Indonesian cacao processing industry are indicated as:
Large number of area potential for cacao plantation by soil suitability and
climate (particularly East Kalimantan).
Indonesian cacao is recognized as a good delicious type compare to other
country.
Adequate supply of cacao bean as main raw material for cacao processing
industry. Raw cacao bean for industry is not as high requirement
standard as cacao bean for export.
Short of world supply correlated with decreasing of major cacao
production from South America, Malaysia and Thailand due to witches
broom disease which may take longer period to recover.
4 Market Based on the London Cocoa Terminal Market and on the New York Coffee,
Opportunities Sugar and Cocoa Exchange, price of cacao beans was fluctuated: from 1991
to 1998 was increase significantly about 6% a year, while up to 1998 to
2000 was in the lowest price (in the periode 1991 t0 2003). After 2000,
price of cacao beans was jump to the highest price in 2002 to more than
100%.
All cacao bean producers therefore exported most of their production
leaving domestic industry without supply. Major importers of Indonesian
cacao are USA, Singapore and Malaysia for non-fermented product and
Europe for fermented product.
5 Proposed Location Referring to Land Availability, estimated area for cacao plantation is about
210,000 Ha in Kabupaten Berau. This estimated area is a large land for
development cacao plantation. In 2003, planted areas of cacao in Berau
were covered areas about 6,295 Ha.
6 Infrastructure and Bulky Harbor

Business Support There is no specific harbor for required cacao raw or processing production.
Facilities Public harbor for loading and unloading cacao production is available in
Nunukan, Tarakan, and Berau. Berau has sufficient harbor to support
development of plantation and processing unit.
Warehousing
Warehouse and open storages are available in Tarakan port as the largest
facilities in the region, also in Nunukan and Tanjung Redeb (Berau). Tanjung
Redeb is sub regional harbor, which has better facilities compare to
Nunukan.
Transportation
Cacaos from these areas are more easily to be transported by water/river
because inland transportations are insufficient and heavily damaged in some
section.
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Seedling
East Kalimantan and other provinces in Kalimantan have not cacao seedling
production center. Cacao seeds for plantation development in the area
should be offered from other provinces, such as North Sumatera (Medan),
Lampung and East Java (Jember). The seed production centers as appear in
the previous table are has capability to distribute the seedling for national
consumption including some to neighbored countries.
Almost all Kabupaten of East Kalimantan Province provides chemical
fertilizer and insecticide kiosk at Kecamatan level. The prices are higher for
large plantation purposes and lower price only applies to small holders.
Other
Export of cacao beans product should be through Tarakan or Balikpapan or
through Surabaya harbors. The custom clearance for export administration
etc. is not available yet in Tanjung Redeb harbor.
7 Project For cacao plantation and processing unit of cacao beans, several
Components components of the project and also as main factors of cost should be
prepared. The main components/factors are:
Permit : Cost to provide plantation location permit, HGU,
IMB and IUT.
Land : Land price for plantation are largely un-uniform
depend location and available infrastructure which
square.
Building/Factory : The cost for building the beans processing factory
will be base to international price of Balikpapan or
Tarakan prices, since major component of the
factory are made or produced in Jakarta or
imported. Building cost for office and housing can
use local base prices (Kabupaten).
vehicle which were produced in Indonesia. For
imported vehicles, imported prices should be used
Labor : Standard wage for plantation labor based on
Provincial Minimum Wage (UMR Provincial) of East
Kalimantan is Rp. 636,000 per month. Average oil
palm plantation needs minimum 4 man-months per
Ha.
Raw Material : Seed, should be supported from out of Kalimantan,
with domestic prices.
While, fertilizers mostly are available at local
(Kabupaten) market, and can be purchased at local
prices.
Electricity : No available supply provided by state electricity
Clean Water : Clean water should treated from available raw
water, either form river abstraction or ground. No
clean water facilities provided by government in
most of remote areas.
8 Proposed Considering to the land availability in Kabupaten Berau, approximate a

Business Scale cacao plantation area of 5,000 Ha with estimated production after harvest
3,500-5,000 ton per year are proposed for development with potential to
extent to maximum 10,000 Ha.
Although only 60 % of production capacity are covered by processing cacao
industries the future market particularly cacao powder indicate a significant
growth. A processing industry to produce cacao powder and pasta will
promise to develop in Tanjung Redeb, with capacity about 3,000 to 4,000
ton/year.
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Figure 6-4 Trend of Cacao Beans Price in London and New York Market, 1991 - 2003
1600
1400 1369.17
1256.28
1177.06 1236.46
Price (USD/Ton)
1200
1000 973.86 945.23 1002.98
872.36 833.45 855.17
800 780.52 800.04
672.76
600
400
200
0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Year
Source: ICCO 2004
6.5 Industrial Timber Estate (HTI), Pulp and Paper Project Profile
1 Project Name Industrial Timber Estate (HTI), Pulp and Paper Industry
2 General View - Most of the pulp producers in Indonesia use wood or waste wood as raw
material instead of fiber plants such as Rosella, keraf, ketabon. Used paper
is also utilized as basic material for newsprint.
- Pulp is the basic material for paper industry. There are 3 kinds of paper
product, industrial paper (uses for sack Kraft, corrugated, board, wrapping
paper, etc), culture paper (uses for writing and printing paper) and other
paper (cigarettes paper, tissues, security paper, etc.). Newsprint paper is
made not from expensive pulp used paper.
3 Competitiveness Indonesian pulp industry started before 1990, before HTI planting were ready
for taking harvest. Although In 1993 annual production achieved only 1.7-
million tons, it was doubled reaching 3.7 million tons in 1999 and 6,6 million
tons in 2003 The crisis that depreciated Indonesian Rupiah, has made pulp
and paper industry more competitive in the export market.
Local government has allocated area in downstream of Kabupaten Kutai
Kartanegara (Kecamatan Sanga-Sanga) for pulp industry. Large development
areas of HTI about 550,000 Ha will support raw material for this plant.
4 Market In 2002 the Indonesia production capacity of pulp industry reached a total
Opportunities figure of 4.9 million Tons compare to year 2000 output production 4.6
millions. This Indicates that maximum capacity utilization (92%) is achieved.
This national production was performed by 2 long fiber pulp producers in
Aceh and Sumatera and by more than 11 short fiber pulp industries. The high
capacity utilization of pulp and paper industry will encourage further
investment in these industries.
The price declined from US$ 863 per ton in 1995 to US$ 350 per ton in the
early 2001, and again increased to US$ 460 per ton in 2003. Although prices
in foreign currency have declined, Indonesian pulp has still obtained benefits
due to depreciation of Indonesian Rupiah.
Similar to pulp production, paper industry in Indonesia has significant rate of
production increase, reaching 7.3 million Tons in year 2003 with a high
capacity utilization rate of 82% from a total of 8.6 million ton per year
performed dominantly by around 20 paper industries. There exist
approximate 75 paper producers, 63 of which operate under PMDN, 9 operate
by PMA and the other 3 are owned by the state. Most of them are located in
Java, 11 facilities in Sumatera and 2 producers from Kalimantan. It is
reported that about 15% of these companies use their self-own pulp
products.
The national paper consumption year 2003 is diversified into 76% industrial
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paper, 20% culture paper and 4% as other paper product. The demand for
domestic consumption is considerably equal with export market.
Indonesia pulp and paper industry still has opportunities to grow due to
abundance supplies of basic materials and large number of HTI ready for
harvest in the future. Geo-position of Kalimantan is another advantages
particularly its proximity to Asian country as dominant consumer.
5 Proposed The most recommendable locations for development HTI by Forestry Office of
Location East Kalimantan are the ex-HPH areas along Samarinda Bontang access
road. The area is approximately estimated more than 20,000 Ha. The other
locations are ex-HPH areas in all East Kalimantan areas, which approximately
are covered, more than 500,000 Ha. Moreover, there are about 3 millions Ha
as critical lands include karsts which could be planted by industrial timbers.
Local government has allocated area in downstream of Kabupaten Kutai
Kartanegara (Kecamatan Sanga-Sanga) for pulp industry.
and Business The most recommendable areas for HTI are located in a long road between
Support Facilities SamarindaBontang link route. This route of road is in good condition with
high capacity of loading more than 20 Tons and can direct access to pulp and
paper plant.
Mostly of Mahakam River are suitable for transferring raw material product
from upstream area of Kutai Kartanegara and Kutai Barat to downstream.
Harbor
There are 2 big public harbors that can be supporting for pulp and paper
industry in Kutai Kartanegara: Samarinda and Balikpapan harbors.
Other
Custom clearance for export products from Kabupaten Kutai Kartanegara will
be directly serviced in Balikpapan or Samarinda.
7 Project For HTI and Pulp and Paper industry, several components of the project and
Components also as main factors of cost should be prepared. The main
components/factors are:
Permit : Cost to provide Location Permit, HGU, IMB and IUT.
Land : Land price for pulp industry are largely un uniform
depend location and available infrastructures which
square. While, HTI compensation fee is Rp.
100,000/Ha.
Building/Factory : The cost for building the factory will be base to
international prices of Balikpapan prices, since
major component of the Factory are made or
produced in Jakarta or imported. Building cost for
office and housing can use local base prices
(kabupaten).
Equipment/Machine : Factory equipments for pulp processing including
Transport/Vehicle : Local (kabupaten) prices implemented to regular
Labor : Standard wage for industry (including pulp
processing) based on Provincial Minimum Wage
(UMR Provincial) of East Kalimantan is Rp. 732,000
per month. While, wage for HTI labor is Rp.
600,000 per month. The average, HTI planting
needs maximum 2 man-months per Ha.
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8 Proposed Pulp and paper industry is needed intensive capital, technology and market
Business Scale based investment. As there are no more government subsidize through
reforestation fund development of HTI (Pulp based Timber Estate) is require
large capital investment.
For comparing, an existing pulp and paper industry in East Kalimantan has
production capacity about 525,000 Tons/year. This industry has cover HTI
areas more than 200,000 Ha, with more than 1,800 workers. While, proposed
a plant pulp and paper industry in Kutai Kartanegara will be cover more than
500,000 Ha areas of HTI. If those HTI areas are effective produce raw
material for pulp, the pulp and paper industry that proposed to be built in
there, should be in the high scale of business.
6.6 Particleboard and MDF Project Profile

1 Project Name Particleboard and MDF (Medium Density Fiberboard) industry
2 General View Wood industry now facing facts as a sunset industry after become prominent
the last 3 decades. Currently it is problem to get raw material of wood and
major industries has to reduce supply to become 40% of capacity due to
limitation wood sources from logging.
Particleboard is an efficient industry, which can consumes almost 100% of
raw wood even waste wood. This industry also could use other sources from
non-timber resources (waste plantation, old rubber trees, etc.). Other wood
industries, which are less efficient, has large waste ratio: plywood (55%),
sawn timber (50%), woodworking (35%) and furniture (25-30%).
The particleboard can be produced with many types of surface and thickness,
for furnitures, houses, as well as office consumptions.
3 Competitiveness Particleboard is not included in any list of negative investment for PMA, PMDN
or non-facility. The government will help this investment because their
industry is environment friendly. Import commodity is still charged with an
import tax of 5% and PPN 10%.
Budget and labor productivity, infrastructure and industrial infrastructure
(transportation) are main indicators, which show weak competitiveness of
Central Kalimantan and West Kalimantan when comparing with Sumatera.
While, East Kalimantan has had strong competitiveness due to availability
chemical industry and resin in Bontang.
4 Market Considering the global economic condition, world consumption of particle

Opportunities board shown a fluctuation and has a decrease in 2001 for about 1.2% from
the previous years. However, the general trends is increase as in year 2003
the consumption is about 151,786 or about 39% from it in 1998.
The major producer of particle board is 2003 is USA with share about 18% to
the total production, followed by Germany, China and Canada with each share
about 11%, 10% and 10% respectively. However, most those countries also
have high consumption of particleboard, which meant they are also potential
market for particleboard product.
In period of 2001-2003, relatively good export development of Indonesian
particleboard was indicated (about 9.12% increasing). There were
fluctuations, because of monetary crisis in 1997/1998.
Domestic as well as export demand in particleboard industry is relatively flat
and coherent with settlement development and office. Even-though product
performance is relatively low increasing due to shortage of raw material
(there is a relationship with the declination of plywood production), but the
market demand is still significantly prospecting, therefore particleboard
industry prospective is still positive or promising.
Moreover, particle board products, which based on non-log as raw material
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such as waste of logging activities (branches of tree which estimated quantity
is more than 30% of quantity of logs production), industrial timber estate
(HTI) and ex-plantation trees (rubber), have prospective to be develop
considering large area and high growth of HTI and plantation development.
Therefore raw material from non-natural forest log is more sustainable to be
developed in the future. And also those products industries are in line with
environment safety programs as supporting for one of existing world issues.
5 Proposed Samarinda city has been a long experience of wood products industries. More
Location than 10 big wood industries were established in Samarinda city for more than
10 years. With good infrastructure and access with other region in East
Kalimantan and with other provinces and other countries, Samarinda is one of
the best locations for wood industry in East Kalimantan.
and Business Samarinda has good access of roads to Balikpapan as well as to Bontang link
Support Facilities route. This route of road is in good condition with high capacity of loading
more than 20 Tons and can direct access to particleboard products.
Mahakam river from Samarinda city to sea is suitable for big ships and usually
used for wood products, coal, palm oil, container, etc. a long of year.
Harbor
Samarinda has sufficient public harbors that can be supporting for wood
industry including particleboard. Samarinda harbor is also usually used for
export activities. Samarinda harbor is 3rd class type of harbor, which managed
by PT. (Persero) Pelabuhan Indonesia (Pelindo), and open to foreign and
general trade.
Other
Custom clearance for export products will be directly serviced in Samarinda.
7 Project For particleboard industry, several components of the project and also as
Components main factors of cost should be prepared. The main components/factors are:
Permit : Cost for obtaining location permit, HGU, IMB and
IUT.
Land : Land price are very un-uniform depend location and
available infrastructure which ranging about
Rp.500,000.- to Rp.3,000,000.- per meter square.
Building/Factory : The cost for building of the factory will be base to
international prices of Samarinda or Balikpapan
prices, since major component of the Factory are
made or produced in Jakarta or imported. Building
cost for office and housing can use local base prices
(city).
Equipment/Machine : Factory equipments for CPO processing including
Transport/Vehicle : Local (city) prices implemented to regular vehicles
which were produced in Indonesia. For imported
vehicles, imported prices should be use including
the import duties.
Labor : Standard wage for industry labor (including
particleboard) based on Provincial Minimum Wage
(UMR Provincial) of East Kalimantan is Rp. 732,000
per month.
Raw Material : Waste of logging activities (branches of tree;
estimated quantity is more than 30% of quantity of
logs production), industrial timber estate (HTI) and
ex-plantation trees (rubber, etc.), and wood glues,
are available at local (kabupatens/cities) market.
Electricity : May not sufficient available supply provided by
state electricity company. Each investor should
prepare their own independent power supply.
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water, either form river abstraction or ground. May
not sufficient available supply provided by state
clean water company.
8 Proposed Particleboard industry is needed intensive capital, technology and market

Business Scale based investment although it still lower than plywood industries. Particleboard
also another products, such as Pulp, CPO, cacao, and shrimp, etc. have
relatively high international market demand. This proposed project could be
implemented with medium to high scale of business investment.
6.7 Shrimp (Brackish Water Aquaculture) Project Profile

1 Project Name Shrimp (Brackish water aquaculture)
2 General View Having long coastal areas, still large opportunities also available for marine
or brackish aquaculture in most of undisturbed coastal site in Indonesia for
fish, shrimp, crustacean, seaweed, etc.
Eat Kalimantan particularly in the northern side Kabupaten Bulungan and
Berau have better condition of coastal areas indicated by minimum
destruction of mangrove and corral reef.
The area also supplies by fresh water from rivers, which relatively low
polluted. This source will be potential for brackish water aquaculture
(shrimp, seaweed).
3 Competitiveness The brackish water aquaculture were growing in East Kalimantan to an

amount of 56,041 Ha, which are intensively occupies the southern and mid
part coastal area. The pond areas are increased at average 36% per year
since 1999. The remaining potential area are located in northern coastal
within Kabupaten Bulungan (15,100 Ha), Kabupaten Nunukan (14,250 Ha)
and Kabupaten Berau (8,900 Ha).
East Kalimantan province has significant growth of shrimp pond production
from 1999-2003. Tiger shrimp is the dominant commodity with significant
production growth extent 29% annually and increased value reach 56%
annually.
4 Market Japan and USA Market:

Opportunities According to Ministry of Marine Affairs and Fisheries, countries with high
demand volume of Indonesian shrimp are Japan (60%), USA (16.5%),
European Community countries (11.6%), and the rest absorb by other minor
consume of Asia. US have suspended its embargo of shrimp from Indonesia
since January 2004, which means the US market has been open for
Indonesian shrimp. While still in restrict the other six countries of Thailand,
China, India, Vietnam, Ecuador, and Brazil consume. This situation implies
that theses six countries also has a potentials to enter the Japanese shrimp
market and also penetrate the domestic shrimp market of Indonesia with
lower prices. This can negatively affect Indonesian shrimp farmers.
European Community Countries:
In the period of 1996 2000, the import value of European frozen shrimp
from Indonesia grew at annual average rate of 44.62%, while the volume
grew at the rate of 42.33% (Eurostat Data). Based on 2001 data, the
competitor countries of Indonesian frozen shrimp are Argentine (10.21%
market share), India (6.23%), and Bangladesh (6.06%). Unfortunately, in
September 2001, European community applies the tight control to
Indonesian frozen shrimp because there are cases about chloramfenicol
content in some of Indonesia product. Since then, every sample of
Indonesian frozen shrimp to be exported is inspected by the agencies
representing European community countries.
General situation:
Shrimp, especially tiger shrimp is a high demand commodity particularly in
Japan and USA, which requires quality assurance for food safety to any
PT. PCII - 50 -
BKPM JICA

shrimp, which imported to their countries.
Production of Indonesian shrimp was increased with 7.23% of average
annually growth, from 1999 2002.
5 Proposed Location According to site plan condition, Kabupaten Bulungan, Nunukan and Berau
have potential areas to develop shrimp brackish water aquaculture with
estimated total area about 15,100 Ha, 14,250 Ha and 8,900 Ha respectively.
6 Infrastructure and Laboratorium

Business Support Government has established the facilities for fishery development such as
Facilities Laboratory of Fishery Products Quality Test and Control (LPPMHP) located in
Samarinda and Tarakan cities. Main facilities consist of microbiology and
chemical laboratories. This agency caw prepare in depth suitability
assessment to the proposed shrimp location.
Shrimp Fry / Fingerling
There are 12 units of Shrimp hatcheries for cultivation of shrimp fry in East
Kalimantan: 2 in Balikpapan, 1 in Kutai Kartanegara, 1 in Berau, and 8 in
Tarakan. Production of shrimp fry from these 12 hatcheries and local catch
was about 9 billion in 2003. This production of shrimp fry from hatcheries in
East Kalimantan is not adequate to feed the demand, which was accounting
for only 15% of the total East Kalimantan needs.
The rest of 85% of the total needs, shrimp fry supplies are covered from
other hatcheries in Lampung, East Java and South Sulawesi.
Ice Factory
Shrimp processing is cold chain processing. Ice factories are required for
post harvest stage starting from the harvest process to end customers or to
the next process in cold storage processing unit (from receiving activity to
freezing). At present the available ice factory in East Kalimantan is in
Samarinda and Tarakan.
Cold Storage
In East Kalimant, there are 16 cold storages located in 9 factories of
Tarakan, 1 factory of Berau, 4 factories of Kutai Kartanegara (surrounding
Samarinda), and 2 factories of Balikpapan. Capacity of each cold storage is
from 3 to 5 Tons per day.
Transportation
The roads to the several brackish water aquaculture areas from capital cities
of kabupatens are relatively good. It is passable by motorbike and four-
wheel vehicle. In the other locations, river and sea transportation could be
used as common transportation mode for aqua-cultural products to capital
cities and processing plants in Tarakan.
Harbor
Each of those kabupatens has harbor. Facilities conditions of Bulungan
harbor, Berau harbor and Nunukan harbor are sufficient to support
aquaculture products.
Other
Custom clearance for export products will be directly serviced in Tarakan.
7 Project The main cost factors arises in many fisheries business application and
Components operation are indicated in the following issues:
Permit : Cost for obtaining location permit, HGU, IMB and
IUT.
Land : Land price are very un-uniform depend location
and available infrastructure which ranging about
Rp. 2,000.- to Rp. 5,000.- per meter square.
Equipment/Machine : Equipments/machine for shrimp culture such as
paddlewheel aerators, water control laboratory,
etc. are base to the import prices. Consideration
should be made to the import duties applied to the
correlated equipment.
vehicles, which were produced in Indonesia. For
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Labor : Standard wage for fishery sector labor based on
Kalimantan is Rp. 636,000 per month.
Raw Material : Shrimp fry, feed, pond water treatment such as
CaCO3, etc. mostly available at local (kabupaten)
market.
8 Proposed Business Considering to the sustainability of production and hazard environment

Scale impact from waste of feed, etc., which usually occurred in intensive
technique, the semi intensive technique scheme is proposed to apply in this
project. With the available areas in Bulungan, Nunukan and Berau about
15,100 Ha, 14,250 Ha and 8,900 Ha respectively, involving smallholder
through plasma nucleus system could implement this business in medium to
high scale of business.
Figure 6-5 Trend of Export Price of East Kalimantan Tiger Shrimp* (1999 2003)
70,000
65,666
60,000
Price (Rp./Kg)
50,000 49,363
40,000 39,598
30,000 30,439
23,627
20,000
10,000
0
1999 2000 2001 2002 2003
Year
Source: Fishery and Marine Service of East Kalimantan Province, 2004.

* In all size of shrimp which exported.
6.8 Dockyard and Heavy Equipment Repairing Center Project Profile

1 Project Name Dockyard and Heavy Equipment Maintenance Center
2 General View South region covered most of Mahakam watershed of higher density areas
with appropriate river and land transportation mode to have raw material for
processing industry in downstream Balikpapan, Samarinda and Bontang.
North region has less effective road infrastructure and low-density population,
major transportation mode are river and coastal, which has larger hauling
capacity related to its dominant primary resources based products.
3 Competitiveness In the northern regions, which natural resources many large compactors are
working for mining plantation and forestry and utilize heavy equipment.
Around 81 explorations project are continuing to work for the next 20 year,
which potential to increase in the future.
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BKPM JICA

There extensive development and high activities of shipping even in the
future years, the northern region ship traffic is around 50% of East
Kalimantan total number of ships traffic, and has more than 4% annual
growth. The number of ships traffic in the northern region is the same with
southern region of East kalimantan. While southern region already has 2
dockyards and heavy equipment-repairing center in Balikpapan, there are
inadequate facilities in northern region.
4 Market In north region of East Kalimantan, there are 6 city/kabupatens: Tarakan,

Opportunities Nunukan, Bulungan, Malinau, Berau, and Kutai Timur. Each kabupatens/city
has some companies/factories and seaports/river ports, which need supports
for heavy equipment and ship maintenance through special dockyard and
heavy equipment repairing center.
5 Proposed Among kabupaten/kota at north region of East Kalimantan, a strategic

Location location for Dockyard and Heavy Equipment Repairing Center is Tarakan.
and Business In the south region, inland roads connect among cities, as well as river
Support transport and sea. Meanwhile, the north region depends on not inland roads
Facilities but seas and river transportation as means of transportation.
Harbor
Port of Tarakan (Malundung Port) is managed by PT. (Persero) Pelabuhan
Indonesia (Pelindo) IV. Tarakan is open to foreign vessels and is a port of
general trade status.
Airport
Airport in Tarakan (Juwata Airport) as the northern gate of East Kalimantan is
managed by UPT. Ditjen Perhubungan Udara (Directorate of Air
Transportation, Ministry of Communication).
This airport serves small plane flight, Boeing 737 plane flight and also
medium plane flight as Fokker.
Other
Custom clearance for import/export activity will be directly serviced in
Tarakan or Balikpapan or Samarinda.
7 Project For dockyard and heavy equipment repairing center activities, several
Components components of the project look like main factors of cost should be prepared.
The main components/factors are:
Permit : Costs for obtaining location permit, HGU, IMB and
IUT.
Land : Land price fluctuates, depending on land strategy
and availability of infrastructures, between Rp.
75,000 and Rp. 300,000.- per square meter.
Building/Factory : The cost for building the factory will be based on
international prices or Balikpapan prices, since major
components of the factory are made or produced in
Jakarta or imported. Building cost for office and
housing can adopt local (Kabupaten) base prices.
Equipment/Machine : Factory equipments are based on the import prices.
imposed on the correlated equipment.
Transport/Vehicle : Local (city) prices are implemented to regular
vehicles (boat, etc.) which are produced in
Indonesia. For imported vehicles, imported prices
should be adopted and should include the import
duties.
Labor : Standard wage for general industries labor based on
Kalimantan is Rp. 732,000 per month.
Electricity : May not be sufficiently supplied by state electricity
company. Each investor should prepare his own
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Clean Water : Clean water should be obtained by treatment of
available raw water, either form river abstraction or
ground. There may not be a sufficient supply by state
clean water company.
8 Proposed Dockyard and heavy equipment repairing center activities need intensive
Business Scale capital and technology based investment. Based on market opportunities as
explained before, this proposed project should be done with medium to high
scale of business.
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BKPM JICA
ATTACHMENT

Selected Companies in East Kalimantan
Name of
Address Location Contact Person
Institution/Company
BKPM (Investment Jl. Gatot Subroto No.60, JAKARTA Director of Overseas
Coordinating Board) Phone 62-21-5252008, Promotion
Fax. 62-21-5254945
BPID (Regional Investment Jl. Basuki Rahmat No.56 SAMARINDA Head of BPID,
and Promotion Board) of Phone 62-541-743235, Head of Investment
East Kalimantan Province 743487 Fax. 62-541- Development of BPID
736446
Regional Development Jl. Kesuma Bangsa, Phone SAMARINDA Chief of BAPPEDA
Planning Board 62-541-742985
(BAPPEDA)
Economic Bureau, East Jl. Gajah Mada No. I/26, SAMARINDA Head of Bureau
Kalimantan Province Phone 62-541-733333
Sekwilda
Energy Commission and Jl. MT. Haryono, Phone SAMARINDA Head of Commission
Mineral Resources 62-541-736993
Sea and Fisheries Jl. Kesuma Bangsa No, 1, SAMARINDA Head of Commission
Commission Phone 62-541-743506
Industrial, Trading, and Jl. Basuki Rahmat No.55, SAMARINDA Head of Commission
Cooperation Commission Phone 62-541-742482,
Fax. 62-541-742495
Forest Commission Jl. Kesuma Bangsa, Phone SAMARINDA Head of Commission,
62-541-741803 Head of Forest
Management of
Commission
Farm (Plantation) Jl. M. T. Haryono, Phone SAMARINDA Head of Commission
Commission 62-541-748660
Agriculture Commission Jl. Basuki Rahmat No. 6, SAMARINDA Head of Commission
Phone 62-541-741676
Culture Commission and Jl. Jend. Sudirman No. 22, SAMARINDA Head of Commission
Tourism Phone 62-541-736850
National Land Commission Jl. M. Yamin No. 14, Phone SAMARINDA Chief of BPN
(BPN) 62-541-752920
Regional Environment Jl. Kesuma Bangsa, Phone SAMARINDA Chief of BAPEDALDA
Influence Control Board 62-541-745490, 738992
(BAPEDALDA)
Sea and Air Transportation Jl. MT. Haryono, Phone SAMARINDA Head of Commission
Service 62-541-743506
Land and ASDP Jl. Kesuma Bangsa, Phone SAMARINDA Head of Commission
Transportation 62-541-742091
Commission
Indonesian Bank (BI) Jl. Gajah Mada I, Phone SAMARINDA Regional Head
62-541-741022
Kanwil IX, Customs Jl. Niaga Timur, Phone 62- SAMARINDA Head of Office
541-741283, 743353
Name of
Address Location Contact Person Products
Institution/Company
PT. Balikpapan Forest Jl. RE. MartadinataRT. BALIKPAPAN Han Eung Kyo Plywood
Industries, Ltd 39, Phone 62-542-24811
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BKPM JICA
Name of
Institution/Company
PT. Daya Besar Agung Bukuan, Palaran BALIKPAPAN Lilik Sutisna Plywood
Corp. Samarinda Seberang,
Phone 0541-37616 &
37838
PT. ITCI Kartika Utama Jl. Jenderal Sudirman BALIKPAPAN Ir. Deddy Kusmulayadi Plywood
No. 24, PO. Box 132,
Phone 62-542-735027
PT. Intracawood Jl. Yos Sudarso RT.III TARAKAN Ir. Mulai Adijaya, MM Plywood
Manufacturing No. 36-37, Phone 62- Block Board
551- 22908-22909- Paper overland
22910
plywood
Wood working
products
PT. Kalimanis Plywood Jl. Lumba-Lumba Log SAMARINDA Gatot Suryono Plywood
Industries Pond Selili PO. Box Direct Print
1004, Phone 62-541- Fancy Panel
240701-240702
Spliced veneer
Color tone
Fancy plywood
Molding
PT. Kalhold Utama Jl. Lumba-Lumba Log SAMARINDA Gatot Suryono Plywood
Pond Selili PO. Box
1004, Phone 62-541-
240701-240702
PT. Sangkuliarang Bhakti Jl. Jenderal Sudirman SAMARINDA Lay Firman Plywood
No. 33, Phone 62-541- Sawn Timber
742345, 737356, 737357
Molding
PT. Sumalindo Lestari Jl. Loa Janan Ilir SAMARINDA Ir. Djojo Boentoro Plywood
Jaya Tbk Sengkotek, Phone 62- Paper Overlay
541-261256, 261277 Film Face
Block Board
PT. Nityasa Mandiri Desa TJ. Harapan Kec. KUTAI Erwin afrian Medium density
Sebulu kab. Kutai. KARTANEGA Fiber board
Phone 62-541-206391, RA (MDF)
261277
Primagraha Building
LT.4 Jl. Gedung
Kesenian Kav.3-7
Jakarta Pusat
PT. Kiani Kertas Desa Makayang Kec. BERAU Sudaryanto Bleached
Sambaliung Kab. Berau. Harwood Pulp
Phone 62-21-7986025-
7975172
PT. DSM Kaltim Malamine Jl. Mampang Prapatan BONTANG Drs. Harry Poernomo Melamine
100, Jakarta
Jl. Kawasan Industri
Bontang, Phone 62-548-
41018
PT. Pupuk Kalimantan Komplek PT. Pupuk BONTANG Haryanto Ammonia
Timur Kaltim Persero Bontang, Urea
Phone 62-548-212023
PT. Kaltim Jl. Taman Budaya Ilir J-1 BONTANG Ekasinto Kasih Hexamethyline
Hexamindowiratama No. 5 Jakarta tetramine
Jl. Kawasan Industry (CH2)6N6
Pt. Kaltim Ambikawiratama Jl. Taman Budaya Ilir J-1 BONTANG Ekasinto Kasih Ammonium
No. 5 Jakarta Bicarbonate
Jl. Kawasan Industry (NH4HCO3)
PT. PCII - 56 -
BKPM JICA
Name of
Institution/Company
PT. Kaltim Sahid Jl. Kawasan Industri BONTANG Soda Ash &
Baritosodakimia Bontang, Phone 62-548- Ammonium
41297-41298 (NH4HCO3)
PT. Kaltim Methanol Jl. Kawasan Industri BONTANG Methanol
Industry Bontang, Phone 62-548-
PT. Kaltim Lemindo Jl. Kawasan Industri BONTANG MDF Resin &
Kimiatama Bontang, Phone 62-548- Plywood Resin
PT. Badak NGL Jl. Kawasan Industri BONTANG LNG
PT. BHP kendilo Coal Jl. Jend. Sudirman No. BALIKPAPAN Paul H. Schipke Coal
Indonesia 37, Phone 62-542-35300
PT. Berau Coal Graha Irama Jl. HR. BERAU Ir. Jeffrey Mulyono Lati coal and
Rasuna Said Blok X-1 binungan coal
Kav 01-02 Jakarta,
Phone 62-21-5261216
PT. Indominco mandiri Ventura Building, 3 th KUTAI TIMUR Frans Yusup Steam Coal
floor, Jl. R.A. Kartini No.
28 Jkt. Phone 62-21-
7504395
PT. Kideco Jaya Agung Batu Kajang Kec.Batu PASIR HA. Myung Sik Coal
Sopang Kab. Pasir,
Phone 62-543-22522
PT. Kaltim Prima Coal Sangata-75387 Kec. KUTAI TIMUR Mochammad Chairul Coal
Sangata Kab. Kutai,
Phone 62-549-521800
PT. Kitadin Ventura Building, 3 th KUTAI Frans Yusup Steam Coal
floor, Jl. R.A. Kartini No. KARTANEGA
26 Jkt. Phone 62-21- RA
7404390, 62-541-
201307
PT. Tanito Harum Jl. Batu Bara KUTAI Mr. BS. Wydianto Steam Coal
Tenggarong, Phone 62- KARTANEGA
541-42848, 32252 RA
PT. Misaja Mitra S. Mariam Jl. Mahakam Sei. KUTAI Aminoellah Said Frozen shrimp
Mariam, Kec. Anggana, KARTANEGA
Kab. Kutai, Phone 62- RA
541-37039
PT. Malindo Kencana Jl. Jos Sudarso 57, TARAKAN AP. Nainggolan, SE. Frozen shrimp:
Utama Tarakan, Phone 62-551- - Shell On,
21082
- Raw Peeled,
- Cooked Peeled
PT. Sumber Kalimantan Pasar Beringin No. 94 A, TARAKAN Albert Purwanti/ Drs. Quick Frozen
Abadi Tarakan Tengah, Phone Chandra Arkian Fresh Shrimp
62-551-21063-51101-
22924
PT. Samarinda Cendana Jl. Remaja No. 64 Phone SAMARINDA Barnawie Bakrie Fresh Frozen
Cold storage & Ind 62-541-43519, 32478 Prawns/Shrimp
Arus Mahakam, PT. Jl. P. Suriansyah No. 16, SAMARINDA Moch Sinsyah Rattan
Phone 62-541-734373, Flooring
748206
PT. Kuda Mas Jl. Merdeka 18, SAMARINDA Yusuf Agar wood
Samarinda
Phone 62-541-738115
Source: East Kalimantan Government, BPID (Regional Investment and Promotion Board) of East
Kalimantan Province, East Kalimantan exporters directory, provincial office of the industry trade
and cooperatives of East Kalimantan of Indonesia, 2003.
PT. PCII - 57 -
BKPM JICA
Attachment 2. List of Large Companies (Exporters) in East Kalimantan
Capacity product or
No. Location Name of Company Goods description Countries destination
export
Wood Working
3
1 BLP PT. Balikpapan Forest Plywood Arab Saudi, Japan, 278,500 M /year
Industries, Ltd Korea, Belgian,
England, Netherlands,
France.
3
2 BLP PT. Dwima Manunggal 1. Plywood USA, Europe, Taiwan, 67,932 M /year
3
Raksa Wood Industries 2. Black board Korea, Japan. 11,475 M /year
3
3 BLP PT. Daya Besar Agung Plywood USA, Japan, Hong 1,500 M /year
Corp. Kong, Mexico
4 SMD PT. Gany Mulia 1. Plywood USA, Singapore, 2,271 Cu. M/Moon
Sejahetera Industrie 2. Molding Europe, Japan, Korea 421 Cu. M/Moon
3
5 BLP PT. ITCI Kartika Utama Plywood Hong Kong, USA, 120,430 M /year
Japan, Korea, China
3
6 TRK PT. Intracawood 1. Plywood Japan, USA, Europe, 111,623 M /year
3
Manufacturing 2. Block Board Hong Kong, Taiwan, 18,096 M /year
3. Paper overland plywood Egypt, Korea 3
2,550 M /year
3
4. Wood working products 7,038 M /year
3
7 BLP PT. Inne Dongwha Plywood Japan, Europe, UEA, 20,900 M /year
Development Co. Ltd. Korea
8 SMD PT. Meranti Sakti Indah 1. Plywood Japan and Taiwan 2,700,000 pc /year
Plywood 2. Lumber core 120,000 pc /year
3. Sawn Timber 6,000 pc /year
9 SMD PT. Kalimanis Plywood 1. Plywood USA, Europe, 4,427 Cu. M/Moon
Industries 2. Direct Print Australia, Korea, 579 Cu. M/Moon
3. Fancy Panel China, Japan, Hong 1,583 Cu. M/Moon
4. Spliced veneer Kong, Middle East, 20 Cu. M/Moon
5. Color tone India, Malaysia, United 579 Cu. M/Moon
Kingdom, Singapore.
6. Fancy plywood 40 Cu. M/Moon
7. Molding 801 Cu. M/Moon
3/
10 SMD PT. Kalhold Utama Plywood Australian, Europe, 4,630 M Moon
Soviet, Korea, Japan,
USA, Middle east
3
11 SMD PT. Kayu Lapis Asli 1. Plywood Belgium, Japan, 237,663,235 M /year
3
Murni 2. Block Board Denmark, Taiwan, 2,040,976 M /year
3. Laminated Thailand, Australian, 3
299,684 M /year
4. Molding England, Canada, Italy 3
245,747 M /year
3
5. Paper Overlay 22,381,558 M /year
12 SMD PT. Kayan River Indah 1. Plywood Japan, Taiwan 4,200,000 pc/year
3
Plywood 2. Molding 32,400 M /year
3
13 SMD PT. Melapi Timber 1. Plywood Taiwan, Japan 4,000 M /year
3
2. Block Board 1,500 M /year
3
3. Molding 1,200 M /year
3
4. Flooring 1,000 M /year
3
14 SMD PT. Putera Bungalun Plywood Hong Kong, USA, 2,500 M /year
Wood Industri Taiwan, Korea
3
15 SMD PT. Segara Timber Co. 1. Plywood Japan, USA, China, 87,500 M /year
3
Ltd. 2. Block Board Hong Kong, Taiwan, 15,200 M /year
3. Sawn Timber Germany, Netherlands. 3
24,000 M /year
3
3
16 SMD PT. Sangkuliarang 1. Plywood Netherlands, USA, 4,750 M /Moon
3
Bhakti 2. Sawn Timber Japan, Korea, Canada, 350 M /Moon
3. Molding China 3
100 M /Moon
3
17 SMD PT. Sumalindo Lestari 1. Plywood Japan, EEC, USA, 45,031 M /year
3
Jaya Tbk 2. Paper Overlay Korea, Hong Kong. 6,796 M /year
3
3. Film Face 17,445 M /year
3
18 SMD Pt. Santi Murni Plywood Plywood USA, Middle East, 3,252 Cu. M/Moon
Australians, United
Kingdom, Japan,
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BKPM JICA
Capacity product or
export
Korea
3
19 SMD PT. Wana Rimba 1. Plywood Japan, Korea, UEA, 50,047,861 M /year
3
Kencana 2. Block Board Hong Kong, Singapore, 4,430.692 M /year
Australians
3
20 SMD PT. Tirta Mahakam 1. Plywood Japan, China, Taiwan, 102,840 M /year
3
Plywood Industry 2. Block Board Korea, USA. 8.40 M /year
3
3. Sawn Timber 50,975 M /year
3
3
5. Furniture Components 15,000 M /year
3
6. Fancy Coating 20,000 M /year
3
3
21 SMD PT. Tunggal Yudi 1. Plywood Hong Kong, USA, 198,420 M /year
3
Sawmill Plywood 2. Block Board Japan, Korea, China, 26,653 M /year
3. Molding Europe, Middle East, 3
8,977 M /year
Taiwan, Australians.
3
22 SMD PT. Facific Bontang Plywood France, USA, Korea 3,500 M /year
Raya
3
23 SMD PT. Meratus Kalimantan Plywood Germany, USA, Japan 5,000 M /year
Timber
3
24 KUKAR PT. Kayu Alam Perkasa 1. Plywood Japan, China, Taiwan, 9,000 M /Moon
3
Raya 2. Block Board Hong Kong. 200 M /Moon
3
3. Polyester Plywood 600 M /Moon
3
25 TRK PT. Idec Abadi Wood Plywood Taiwan, China, Japan 7,500 M /year
Industries
3
26 SMD PT. East Borneo Permai Plywood Hong Kong, USA, 2,500 M /year
Plywood Japan
Molding
3
1 BLP CV. Diana Bhakti 1. Molding/Dowel Korea, Belgium, 2,880 M /year
3
2. Door Jamb/ Window Frame Germany, Netherlands, 2,880 M /year
3
3. Finger Joint/ Laminating 1,440 M /year
3
4. Kiln Dry (KD) 9,000 M /year
3
2 SMD PT. Kalindo Pasific 1. Door Frame Korea, Netherlands, 160 M /year
3
2. Door Jamb Belgium. 3,600 M /year
3
3. Window Frame 1,200 M /year
3
4. Finger Jointed 1,440 M /year
3
5. Laminated 1,800 M /year
3
3 SMD PT. Meratus Kalilmantan 1. Molding Europe, USA, Japan, 800 M /year
Timber Korea
3
4 SMD CV. Oceanias timber 1. Mixed meranti lam board, Korea, Germany, 5,000 M /year
3
Product door jamb, casing England, USA, 900 M /year
2. Red meranti laminated Netherlands, 3
1,000 M /year
scantling Australians, china 3
700 M /year
st
3. 1 quality machined dark 3
100 M /year
red meranti kiln dried
4. White meranti 3 piles finger
joint/laminating
5. Keruing flat from blank
3
5 SMD PT. Pasific Bontang 1. Sawn Timber, Molding Japan, USA, Europe, 1,500 M /year
Jaya Korea
3
6 SMD PT. Samarinda Pratama Timber Molding England, Italy, 43,300 M /year
Gemilang Enterprise Germany, Netherlands,
Australians, USA,
Korea, Japan, China
3
7 SMD PT. Samtraco 1. Laminated Boards Germany, Netherlands, 18,000 M /year
(Samarinda Trading 2. Finger joint laminated Belgium, France, Italy,
Corporation) board England, Saudi Arabic,
3. Window board, housing Emirate-Arab, Korea,
components Philippine.
4. Decorative molding,
broomstick
5. Door, chair, garden, gate.
3
8 SMD PT. Surya Kaltim 1. Door Jamb/Door component Korea, Japan, 750 M /year
PT. PCII - 59 -
BKPM JICA
Capacity product or
export
Indonesia 2. Laminating Block Profile Germany, Netherlands,
3. Molding/decorative molding Italy, USA
4. Window frame/ window
component
5. Finger joint
3
9 SMD PT. Sumber Daya Karya 1. Sawmill USA, Japan, Korea 24,000 M /year
3
3
10 BLP PT. Trisakti Utama Indah Molding Japan, Korea, Taiwan, 6,000 M /year
USA, Singapore
3
11 SMD PT. Megah Mulia Molding China 2,400 M /year
3
12 SMD PT. Cakrawala Molding China 4,800 M /year
Kordasakti
Medium Density Fiber board
3
1 KUKAR PT. Nityasa Mandiri Medium density Fiber board England, France, 100,000 M /year
(MDF) Netherlands, Germany,
Belgium, UEA, Qatar,
Saudi Arabia,
Jordanian, Bahrain,
China, Taiwan, Korea,
India, Philippine, Hong
Kong, USA, Canada,
Australians.
Bleached Pulp
1 BRU PT. Kiani Kertas Bleached Harwood Pulp France, Japan, 1,500 ADMT/Day
England, Germany,
Belgium, Korea, Italy,
China, Australians,
India
Chemical Base
1 BTG PT. DSM Kaltim Melamine Thailand, Japan, 50,000 Ton/year
Malamine Malaysia, Australians
Urea and Ammonia
1 BTG PT. Pupuk Kalimantan 1. Ammonia Malaysia, Australians, 1,4419,000 Ton/year
Timur 2. Urea Taiwan, Thailand, 1,839,750 Ton/year
Vietnam, Belgium,
Korea, Singapore,
Philippine
2 BTG PT. Kaltim Pasific Ammonia USA, Hong Kong, 660,000 Ton/year
Amoniak Japan 85 % ekspor
Hexamine
1 BTG PT. Kaltim Hexamethyline tetramine Russian, China, UEA 3,000 Ton/year
Hexamindowiratama (CH2)6N6
Chemical
1 BTG Pt. Kaltim Ammonium Bicarbonate Taiwan, China, Korea 10,000 Ton/year
Ambikawiratama (NH4HCO3)
Soda Ash
1 BTG PT. Kaltim Sahid Soda Ash & Ammonium Taiwan, China, Korea 300,000 Ton/year
Baritosodakimia (NH4HCO3)
Methanol
1 BTG PT. Kaltim Methanol Methanol Japan, China, Korea 660,000 Ton/year
Industry
Resin
1 BTG PT. Kaltim Lemindo MDF Resin & Plywood Resin Japan, China, Korea 18,000 ton/year
Kimiatama
Liquid Natural Gas (LNG)
3
1 BTG PT. Badak NGL LNG Taiwan, China, Korea 21,64 million M /year
Coal mining
1 BLP PT. BHP kendilo Coal Coal Japan, Taiwan 1,000,000 Ton/year
Indonesia
2 MLU PT. Baradinamika Muda Coal Japan, Taiwan 300,000 MT/year
Sukses
PT. PCII - 60 -
BKPM JICA
Capacity product or
export
3 BRU PT. Berau Coal Lati coal and binungan coal Chile, Japan, Korea, 1,800,000 Ton/ year
Taiwan, Thailand
4 KUKAR PT. Bukit Baiduri Baiduri Caol India, Japan, Denmark, 4,000,000 MT/year
Enterprice Coal Taiwan, Thailand
5 KUKAR PT. Fajar Bumi Sakti Coal Japan, Taiwan 500,000 MT/year
6 KUTIM PT. Indominco mandiri Steam Coal Philippine, Japan, 3,500,000 MT/year
Denmark, Taiwan,
Thailand
7 PSR PT. Kideco Jaya Agung Coal Hong Kong, Japan, 5,000,000 MT/year
Philippine, India, Chile,
Taiwan
8 KUTIM PT. Kaltim Prima Coal Coal Malaysia, Japan, 15,000,000 MT/year
Netherlands, USA,
Taiwan, Korea, Brazil,
Chile, France, Hong
Kong
9 KUKAR PT. Kitadin Stream Coal Hong Kong, India, 1,200,000 MT/year
Japan, Taiwan,
Malaysia
10 KUKAR PT. Tanito Harum Steam Coal Thailand, India, Japan, 1,807,000,000
Taiwan, Malaysia, MT/year
China
11 PT. Multi Harapan Coal Japan 973,000,000 MT/year
Utama
12 PT. Gunung Bayan Coal Japan 2,602,000,000
Pratama Coal MT/year
13 PT. Indexim Coalindo Coal
14 Kartika Selabumi Mining Coal
15 Mandiri Inti Perkasa Coal
16 Nusa Minera Utama Coal
17 PT. Sinar Benua Prima Coal
18 PT. Trubaindo Coal Coal
Mining
19 PT. Anugerah Jatimulya Coal
20 PT. Batubara Selaras Coal
Sapta
21 PT. Bharinto Ekatama Coal
22 PT. Bumi Laksana Coal
Perkasa
23 PT. Bumi Panen Sukses Coal
24 PT. Bumi Sukses Coal
Mandiri
25 PT. Dayalapan Coal
26 PT. Delma Mining Coal
Corporation
27 PT. Dharma Puspita Coal
Mining
28 PT. Dhamar Coal
Tejokencono
29 PT. Firman Ketauan Coal
Perkasa
30 PT. Insani Bara Perkasa Coal
31 PT. Interex Sacra Raya Coal
32 PT. Kurnia Sarana Coal
Lestari
33 PT. Lahai Coal Coal
34 Pt. Lanna Harita Coal Japan 945,000,000 MT/year
Indonesia
35 PT. Mahakam Sumber Coal
Jaya
PT. PCII - 61 -
BKPM JICA
Capacity product or
export
36 PT. Maruwai Coal Coal
37 PT. Pari Coal Coal
38 PT. Perkasa Inakerta Coal
39 PT. Pesona Khatulistiwa Coal
Nusantara
40 PT. Ratah Coal Coal
41 PT. Salamindo Pahala Coal
42 PT. Santan Batubara Coal
43 PT. Singlurus Pratama Coal
44 PT. Salaminndo Coal
Coalindo
45 PT. Tambang Damai Coal
46 PT. Taraco Mining Coal
47 PT. Teguh Sinar Abadi Coal
48 PT. Tempayang Coal
Cemerlang
49 PT. Timah Batubara Coal
Utama
50 PT. Wadungmas Coal
Tambang Mulia
51 PT. Wirakaneo Coalindo Coal
52 PT. Whiratama Bina Coal
Perkasa
53 PT. Anugerah Bara Coal
Kaltim
Food and Baverage
1 BLP Kalimantan Raya Megah Live sea worm Japan 750 Ton/year
Fishery
2 KUKAR PT. Misaja Mitra S. Frozen shrimp Japan 620 Ton/year
Mariam
3 TRK PT. Malindo Kencana Frozen shrimp: Japan, Hong Kong, 700 Ton/year
Utama - Shell On, Belgium
- Raw Peeled,
- Cooked Peeled
4 TRK PT. Nelayan Abadi Frozen Shrimp Belgium, England, 480 Ton/year
Kalimantan Jaya Japan, Hong Kong,
USA.
5 BLP PT. Sumber Kalimantan Quick Frozen Fresh Shrimp Hong Kong, Japan, 700 Ton/year
Abadi Europe
6 KUKAR PT. Samarinda Cendana Fresh Frozen Prawns/Shrimp Hong Kong, Japan, 1,200 Ton/year
Cold storage & Ind USA, Singapore
7 TRK PT. Sumber Kalimantan Quick Frozen fresh Shrimps Japan, Hong Kong, 1,200 ton/year
Abadi Europe
8 BLP CV. Ihda Gahary Japan, Hong Kong,
Europe, Singapore
9 TRK PT. Mustika Minanusa Frozen/Fresh Shrimp Japan, Hong Kong
Aurora
10 TRK PT.Sabindo Raya Frozen Shrimp Japan 150 Ton/year
Gemilang I
11 TRK PT. Misaja Mitra, Frozen Shrimp Japan 460 Ton/year
Tarakan
12 BLP PT. Manggar Bina Frozen Shrimp Japan 370 Ton/year
Persada BPP
13 BRU PT. Mina Nusantara Frozen Shrimp Japan 280 Ton/year
Ikatama, Berau
14 TRK PT. Tunas Nelayan Frozen Shrimp Japan 850 Ton/year
Mandiri
15 KUKAR PT. Syam Surya Mandiri Frozen Shrimp Japan 700 Ton/year
16 KUKAR PT. Aromah Nelayan Frozen Shrimp Japan 820 Ton/year
Mandiri
PT. PCII - 62 -
BKPM JICA
Capacity product or
export
17 TRK PT. Bonanza Frozen Shrimp Japan 250 To/ year

Gemilang II
Live Crabs
1 BLP CV. Rickyndo Utama Live Crabs Singapore 5,400 Ton/year
Birds Nest
1 SMD CV. Sumber Bumi Birds Nest/ Black Birds Nest Singapore, Hong Kong 1,250 Ton/year
Agribusiness
1 KUKAR Yayasan 1. Ginger (Zingiher USA, Europe, 77,240 Ton/year
Pengembangan Tunas offiancanale rose) Australians 20,000 Ton/year
Nusantara, Perwakilan 2. Saffron (Curcuma domestic. 138 Ton/year
Kabupaten Kutai Val) 17,500 Ton/year
3. Nanas (Ananas comesus.L)
4. Rice (Oriza sativa)
2 SMD CV. Bintang Mas Prima 1. White Paper USA, Europe, 77,240 Ton/year
Jaya 2. Black Paper Singapore, Japan 20,000 ton/year
Candy/soap/Talc/Shampoo
1 TRK Harapan Extra Prima.UD 1. Candy Malaysia
2. Soap/Talc/Shampoo
Rattan/Flooring
1 SMD Arus Mahakam, PT. 1. Rattan Malaysia, China,
2. Flooring Singapore
Agar Wood
1 SMD PT. Kuda Mas Agar wood Singapore 822,000 Kg/year
Source: East Kalimantan Exporters Directory, Provincial Office of The Industry, Trade and Cooperatives of
East Kalimantan, 2003.
SMD=Samarinda, BLP=Balikpapan, TRK=Tarakan, KUKAR=Kutai Kartanegara, BRU=Berau,
KUTIM=Kutai Timur, PSR=Pasir, MLU=Malinau, BTG=Bontang.
PT. PCII - 63 -
BKPM JICA
ATTACHMENT

Selected Companies in East Kalimantan
Name of
Address Location Contact Person
Institution/Company
BKPM (Investment Jl. Gatot Subroto No.60, JAKARTA Director of Overseas
Coordinating Board) Phone 62-21-5252008, Promotion
Fax. 62-21-5254945
BPID (Regional Investment Jl. Basuki Rahmat No.56 SAMARINDA Head of BPID,
and Promotion Board) of Phone 62-541-743235, Head of Investment
East Kalimantan Province 743487 Fax. 62-541- Development of BPID
736446
Regional Development Jl. Kesuma Bangsa, Phone SAMARINDA Chief of BAPPEDA
Planning Board 62-541-742985
(BAPPEDA)
Economic Bureau, East Jl. Gajah Mada No. I/26, SAMARINDA Head of Bureau
Kalimantan Province Phone 62-541-733333
Sekwilda
Energy Commission and Jl. MT. Haryono, Phone SAMARINDA Head of Commission
Mineral Resources 62-541-736993
Sea and Fisheries Jl. Kesuma Bangsa No, 1, SAMARINDA Head of Commission
Commission Phone 62-541-743506
Industrial, Trading, and Jl. Basuki Rahmat No.55, SAMARINDA Head of Commission
Cooperation Commission Phone 62-541-742482,
Fax. 62-541-742495
Forest Commission Jl. Kesuma Bangsa, Phone SAMARINDA Head of Commission,
62-541-741803 Head of Forest
Management of
Commission
Farm (Plantation) Jl. M. T. Haryono, Phone SAMARINDA Head of Commission
Commission 62-541-748660
Agriculture Commission Jl. Basuki Rahmat No. 6, SAMARINDA Head of Commission
Phone 62-541-741676
Culture Commission and Jl. Jend. Sudirman No. 22, SAMARINDA Head of Commission
Tourism Phone 62-541-736850
National Land Commission Jl. M. Yamin No. 14, Phone SAMARINDA Chief of BPN
(BPN) 62-541-752920
Regional Environment Jl. Kesuma Bangsa, Phone SAMARINDA Chief of BAPEDALDA
Influence Control Board 62-541-745490, 738992
(BAPEDALDA)
Sea and Air Transportation Jl. MT. Haryono, Phone SAMARINDA Head of Commission
Service 62-541-743506
Land and ASDP Jl. Kesuma Bangsa, Phone SAMARINDA Head of Commission
Transportation 62-541-742091
Commission
Indonesian Bank (BI) Jl. Gajah Mada I, Phone SAMARINDA Regional Head
62-541-741022
Kanwil IX, Customs Jl. Niaga Timur, Phone 62- SAMARINDA Head of Office
541-741283, 743353
Name of
Institution/Company
PT. Balikpapan Forest Jl. RE. MartadinataRT. BALIKPAPAN Han Eung Kyo Plywood
Industries, Ltd 39, Phone 62-542-24811
PT. PCII Attachment 1 - 1

BKPM JICA
Name of
Institution/Company
PT. Daya Besar Agung Bukuan, Palaran BALIKPAPAN Lilik Sutisna Plywood
Corp. Samarinda Seberang,
Phone 0541-37616 &
37838
PT. ITCI Kartika Utama Jl. Jenderal Sudirman BALIKPAPAN Ir. Deddy Kusmulayadi Plywood
No. 24, PO. Box 132,
Phone 62-542-735027
PT. Intracawood Jl. Yos Sudarso RT.III TARAKAN Ir. Mulai Adijaya, MM Plywood
Manufacturing No. 36-37, Phone 62- Block Board
551- 22908-22909- Paper overland
22910
plywood
Wood working
products
PT. Kalimanis Plywood Jl. Lumba-Lumba Log SAMARINDA Gatot Suryono Plywood
Industries Pond Selili PO. Box Direct Print
1004, Phone 62-541- Fancy Panel
240701-240702
Spliced veneer
Color tone
Fancy plywood
Molding
PT. Kalhold Utama Jl. Lumba-Lumba Log SAMARINDA Gatot Suryono Plywood
Pond Selili PO. Box
1004, Phone 62-541-
240701-240702
PT. Sangkuliarang Bhakti Jl. Jenderal Sudirman SAMARINDA Lay Firman Plywood
No. 33, Phone 62-541- Sawn Timber
742345, 737356, 737357
Molding
PT. Sumalindo Lestari Jl. Loa Janan Ilir SAMARINDA Ir. Djojo Boentoro Plywood
Jaya Tbk Sengkotek, Phone 62- Paper Overlay
541-261256, 261277 Film Face
Block Board
PT. Nityasa Mandiri Desa TJ. Harapan Kec. KUTAI Erwin afrian Medium density
Sebulu kab. Kutai. KARTANEGA Fiber board
Phone 62-541-206391, RA (MDF)
261277
Primagraha Building
LT.4 Jl. Gedung
Kesenian Kav.3-7
Jakarta Pusat
PT. Kiani Kertas Desa Makayang Kec. BERAU Sudaryanto Bleached
Sambaliung Kab. Berau. Harwood Pulp
Phone 62-21-7986025-
7975172
PT. DSM Kaltim Malamine Jl. Mampang Prapatan BONTANG Drs. Harry Poernomo Melamine
100, Jakarta
Jl. Kawasan Industri
41018
PT. Pupuk Kalimantan Komplek PT. Pupuk BONTANG Haryanto Ammonia
Timur Kaltim Persero Bontang, Urea
Phone 62-548-212023
PT. Kaltim Jl. Taman Budaya Ilir J-1 BONTANG Ekasinto Kasih Hexamethyline
Hexamindowiratama No. 5 Jakarta tetramine
Jl. Kawasan Industry (CH2)6N6
Pt. Kaltim Ambikawiratama Jl. Taman Budaya Ilir J-1 BONTANG Ekasinto Kasih Ammonium
No. 5 Jakarta Bicarbonate
Jl. Kawasan Industry (NH4HCO3)

BKPM JICA
Name of
Institution/Company
PT. Kaltim Sahid Jl. Kawasan Industri BONTANG Soda Ash &
Baritosodakimia Bontang, Phone 62-548- Ammonium
41297-41298 (NH4HCO3)
PT. Kaltim Methanol Jl. Kawasan Industri BONTANG Methanol
Industry Bontang, Phone 62-548-
PT. Kaltim Lemindo Jl. Kawasan Industri BONTANG MDF Resin &
Kimiatama Bontang, Phone 62-548- Plywood Resin
PT. Badak NGL Jl. Kawasan Industri BONTANG LNG
PT. BHP kendilo Coal Jl. Jend. Sudirman No. BALIKPAPAN Paul H. Schipke Coal
Indonesia 37, Phone 62-542-35300
PT. Berau Coal Graha Irama Jl. HR. BERAU Ir. Jeffrey Mulyono Lati coal and
Rasuna Said Blok X-1 binungan coal
Kav 01-02 Jakarta,
Phone 62-21-5261216
PT. Indominco mandiri Ventura Building, 3 th KUTAI TIMUR Frans Yusup Steam Coal
floor, Jl. R.A. Kartini No.
28 Jkt. Phone 62-21-
7504395
PT. Kideco Jaya Agung Batu Kajang Kec.Batu PASIR HA. Myung Sik Coal
Sopang Kab. Pasir,
Phone 62-543-22522
PT. Kaltim Prima Coal Sangata-75387 Kec. KUTAI TIMUR Mochammad Chairul Coal
Sangata Kab. Kutai,
Phone 62-549-521800
PT. Kitadin Ventura Building, 3 th KUTAI Frans Yusup Steam Coal
floor, Jl. R.A. Kartini No. KARTANEGA
26 Jkt. Phone 62-21- RA
7404390, 62-541-
201307
PT. Tanito Harum Jl. Batu Bara KUTAI Mr. BS. Wydianto Steam Coal
Tenggarong, Phone 62- KARTANEGA
541-42848, 32252 RA
PT. Misaja Mitra S. Mariam Jl. Mahakam Sei. KUTAI Aminoellah Said Frozen shrimp
Mariam, Kec. Anggana, KARTANEGA
Kab. Kutai, Phone 62- RA
541-37039
PT. Malindo Kencana Jl. Jos Sudarso 57, TARAKAN AP. Nainggolan, SE. Frozen shrimp:
Utama Tarakan, Phone 62-551- - Shell On,
21082
- Raw Peeled,
- Cooked Peeled
PT. Sumber Kalimantan Pasar Beringin No. 94 A, TARAKAN Albert Purwanti/ Drs. Quick Frozen
Abadi Tarakan Tengah, Phone Chandra Arkian Fresh Shrimp
62-551-21063-51101-
22924
PT. Samarinda Cendana Jl. Remaja No. 64 Phone SAMARINDA Barnawie Bakrie Fresh Frozen
Cold storage & Ind 62-541-43519, 32478 Prawns/Shrimp
Arus Mahakam, PT. Jl. P. Suriansyah No. 16, SAMARINDA Moch Sinsyah Rattan
Phone 62-541-734373, Flooring
748206
PT. Kuda Mas Jl. Merdeka 18, SAMARINDA Yusuf Agar wood
Samarinda
Phone 62-541-738115
Source: East Kalimantan Government, BPID (Regional Investment and Promotion Board) of East
Kalimantan Province, East Kalimantan exporters directory, provincial office of the industry trade
and cooperatives of East Kalimantan of Indonesia, 2003.

BKPM JICA
Attachment 2. List of Large Companies (Exporters) in East Kalimantan
Capacity product or
export
Wood Working
3
1 BLP PT. Balikpapan Forest Plywood Arab Saudi, Japan, 278,500 M /year
Industries, Ltd Korea, Belgian,
England, Netherlands,
France.
3
2 BLP PT. Dwima Manunggal 1. Plywood USA, Europe, Taiwan, 67,932 M /year
3
Raksa Wood Industries 2. Black board Korea, Japan. 11,475 M /year
3
3 BLP PT. Daya Besar Agung Plywood USA, Japan, Hong 1,500 M /year
Corp. Kong, Mexico
4 SMD PT. Gany Mulia 1. Plywood USA, Singapore, 2,271 Cu. M/Moon
Sejahetera Industrie 2. Molding Europe, Japan, Korea 421 Cu. M/Moon
3
5 BLP PT. ITCI Kartika Utama Plywood Hong Kong, USA, 120,430 M /year
Japan, Korea, China
3
6 TRK PT. Intracawood 1. Plywood Japan, USA, Europe, 111,623 M /year
3
Manufacturing 2. Block Board Hong Kong, Taiwan, 18,096 M /year
3. Paper overland plywood Egypt, Korea 3
2,550 M /year
3
4. Wood working products 7,038 M /year
3
7 BLP PT. Inne Dongwha Plywood Japan, Europe, UEA, 20,900 M /year
Development Co. Ltd. Korea
8 SMD PT. Meranti Sakti Indah 1. Plywood Japan and Taiwan 2,700,000 pc /year
Plywood 2. Lumber core 120,000 pc /year
3. Sawn Timber 6,000 pc /year
9 SMD PT. Kalimanis Plywood 1. Plywood USA, Europe, 4,427 Cu. M/Moon
Industries 2. Direct Print Australia, Korea, 579 Cu. M/Moon
3. Fancy Panel China, Japan, Hong 1,583 Cu. M/Moon
4. Spliced veneer Kong, Middle East, 20 Cu. M/Moon
5. Color tone India, Malaysia, United 579 Cu. M/Moon
Kingdom, Singapore.
6. Fancy plywood 40 Cu. M/Moon
7. Molding 801 Cu. M/Moon
3/
10 SMD PT. Kalhold Utama Plywood Australian, Europe, 4,630 M Moon
Soviet, Korea, Japan,
USA, Middle east
3
11 SMD PT. Kayu Lapis Asli 1. Plywood Belgium, Japan, 237,663,235 M /year
3
Murni 2. Block Board Denmark, Taiwan, 2,040,976 M /year
3. Laminated Thailand, Australian, 3
299,684 M /year
4. Molding England, Canada, Italy 3
245,747 M /year
3
5. Paper Overlay 22,381,558 M /year
12 SMD PT. Kayan River Indah 1. Plywood Japan, Taiwan 4,200,000 pc/year
3
Plywood 2. Molding 32,400 M /year
3
13 SMD PT. Melapi Timber 1. Plywood Taiwan, Japan 4,000 M /year
3
3
3
3
14 SMD PT. Putera Bungalun Plywood Hong Kong, USA, 2,500 M /year
Wood Industri Taiwan, Korea
3
15 SMD PT. Segara Timber Co. 1. Plywood Japan, USA, China, 87,500 M /year
3
Ltd. 2. Block Board Hong Kong, Taiwan, 15,200 M /year
3. Sawn Timber Germany, Netherlands. 3
24,000 M /year
3
3
16 SMD PT. Sangkuliarang 1. Plywood Netherlands, USA, 4,750 M /Moon
3
Bhakti 2. Sawn Timber Japan, Korea, Canada, 350 M /Moon
3. Molding China 3
100 M /Moon
3
17 SMD PT. Sumalindo Lestari 1. Plywood Japan, EEC, USA, 45,031 M /year
3
Jaya Tbk 2. Paper Overlay Korea, Hong Kong. 6,796 M /year
3
3. Film Face 17,445 M /year
3
18 SMD Pt. Santi Murni Plywood Plywood USA, Middle East, 3,252 Cu. M/Moon
Australians, United
Kingdom, Japan,

BKPM JICA
Capacity product or
export
Korea
3
19 SMD PT. Wana Rimba 1. Plywood Japan, Korea, UEA, 50,047,861 M /year
3
Kencana 2. Block Board Hong Kong, Singapore, 4,430.692 M /year
Australians
3
20 SMD PT. Tirta Mahakam 1. Plywood Japan, China, Taiwan, 102,840 M /year
3
Plywood Industry 2. Block Board Korea, USA. 8.40 M /year
3
3. Sawn Timber 50,975 M /year
3
3
5. Furniture Components 15,000 M /year
3
6. Fancy Coating 20,000 M /year
3
3
21 SMD PT. Tunggal Yudi 1. Plywood Hong Kong, USA, 198,420 M /year
3
Sawmill Plywood 2. Block Board Japan, Korea, China, 26,653 M /year
3. Molding Europe, Middle East, 3
8,977 M /year
Taiwan, Australians.
3
22 SMD PT. Facific Bontang Plywood France, USA, Korea 3,500 M /year
Raya
3
23 SMD PT. Meratus Kalimantan Plywood Germany, USA, Japan 5,000 M /year
Timber
3
24 KUKAR PT. Kayu Alam Perkasa 1. Plywood Japan, China, Taiwan, 9,000 M /Moon
3
Raya 2. Block Board Hong Kong. 200 M /Moon
3
3. Polyester Plywood 600 M /Moon
3
25 TRK PT. Idec Abadi Wood Plywood Taiwan, China, Japan 7,500 M /year
Industries
3
26 SMD PT. East Borneo Permai Plywood Hong Kong, USA, 2,500 M /year
Plywood Japan
Molding
3
1 BLP CV. Diana Bhakti 1. Molding/Dowel Korea, Belgium, 2,880 M /year
3
2. Door Jamb/ Window Frame Germany, Netherlands, 2,880 M /year
3
3. Finger Joint/ Laminating 1,440 M /year
3
4. Kiln Dry (KD) 9,000 M /year
3
2 SMD PT. Kalindo Pasific 1. Door Frame Korea, Netherlands, 160 M /year
3
2. Door Jamb Belgium. 3,600 M /year
3
3. Window Frame 1,200 M /year
3
4. Finger Jointed 1,440 M /year
3
5. Laminated 1,800 M /year
3
3 SMD PT. Meratus Kalilmantan 1. Molding Europe, USA, Japan, 800 M /year
Timber Korea
3
4 SMD CV. Oceanias timber 1. Mixed meranti lam board, Korea, Germany, 5,000 M /year
3
Product door jamb, casing England, USA, 900 M /year
2. Red meranti laminated Netherlands, 3
1,000 M /year
scantling Australians, china 3
700 M /year
st
3. 1 quality machined dark 3
100 M /year
red meranti kiln dried
4. White meranti 3 piles finger
joint/laminating
5. Keruing flat from blank
3
5 SMD PT. Pasific Bontang 1. Sawn Timber, Molding Japan, USA, Europe, 1,500 M /year
Jaya Korea
3
6 SMD PT. Samarinda Pratama Timber Molding England, Italy, 43,300 M /year
Gemilang Enterprise Germany, Netherlands,
Australians, USA,
Korea, Japan, China
3
7 SMD PT. Samtraco 1. Laminated Boards Germany, Netherlands, 18,000 M /year
(Samarinda Trading 2. Finger joint laminated Belgium, France, Italy,
Corporation) board England, Saudi Arabic,
3. Window board, housing Emirate-Arab, Korea,
components Philippine.
4. Decorative molding,
broomstick
5. Door, chair, garden, gate.
3
8 SMD PT. Surya Kaltim 1. Door Jamb/Door component Korea, Japan, 750 M /year

BKPM JICA
Capacity product or
export
Indonesia 2. Laminating Block Profile Germany, Netherlands,
3. Molding/decorative molding Italy, USA
4. Window frame/ window
component
5. Finger joint
3
9 SMD PT. Sumber Daya Karya 1. Sawmill USA, Japan, Korea 24,000 M /year
3
3
10 BLP PT. Trisakti Utama Indah Molding Japan, Korea, Taiwan, 6,000 M /year
USA, Singapore
3
11 SMD PT. Megah Mulia Molding China 2,400 M /year
3
12 SMD PT. Cakrawala Molding China 4,800 M /year
Kordasakti
Medium Density Fiber board
3
1 KUKAR PT. Nityasa Mandiri Medium density Fiber board England, France, 100,000 M /year
(MDF) Netherlands, Germany,
Belgium, UEA, Qatar,
Saudi Arabia,
Jordanian, Bahrain,
China, Taiwan, Korea,
India, Philippine, Hong
Kong, USA, Canada,
Australians.
Bleached Pulp
1 BRU PT. Kiani Kertas Bleached Harwood Pulp France, Japan, 1,500 ADMT/Day
England, Germany,
Belgium, Korea, Italy,
China, Australians,
India
Chemical Base
1 BTG PT. DSM Kaltim Melamine Thailand, Japan, 50,000 Ton/year
Malamine Malaysia, Australians
Urea and Ammonia
1 BTG PT. Pupuk Kalimantan 1. Ammonia Malaysia, Australians, 1,4419,000 Ton/year
Timur 2. Urea Taiwan, Thailand, 1,839,750 Ton/year
Vietnam, Belgium,
Korea, Singapore,
Philippine
2 BTG PT. Kaltim Pasific Ammonia USA, Hong Kong, 660,000 Ton/year
Amoniak Japan 85 % ekspor
Hexamine
1 BTG PT. Kaltim Hexamethyline tetramine Russian, China, UEA 3,000 Ton/year
Hexamindowiratama (CH2)6N6
Chemical
1 BTG Pt. Kaltim Ammonium Bicarbonate Taiwan, China, Korea 10,000 Ton/year
Ambikawiratama (NH4HCO3)
Soda Ash
1 BTG PT. Kaltim Sahid Soda Ash & Ammonium Taiwan, China, Korea 300,000 Ton/year
Baritosodakimia (NH4HCO3)
Methanol
1 BTG PT. Kaltim Methanol Methanol Japan, China, Korea 660,000 Ton/year
Industry
Resin
1 BTG PT. Kaltim Lemindo MDF Resin & Plywood Resin Japan, China, Korea 18,000 ton/year
Kimiatama
Liquid Natural Gas (LNG)
3
1 BTG PT. Badak NGL LNG Taiwan, China, Korea 21,64 million M /year
Coal mining
1 BLP PT. BHP kendilo Coal Coal Japan, Taiwan 1,000,000 Ton/year
Indonesia
2 MLU PT. Baradinamika Muda Coal Japan, Taiwan 300,000 MT/year
Sukses

BKPM JICA
Capacity product or
export
3 BRU PT. Berau Coal Lati coal and binungan coal Chile, Japan, Korea, 1,800,000 Ton/ year
Taiwan, Thailand
4 KUKAR PT. Bukit Baiduri Baiduri Caol India, Japan, Denmark, 4,000,000 MT/year
Enterprice Coal Taiwan, Thailand
5 KUKAR PT. Fajar Bumi Sakti Coal Japan, Taiwan 500,000 MT/year
6 KUTIM PT. Indominco mandiri Steam Coal Philippine, Japan, 3,500,000 MT/year
Denmark, Taiwan,
Thailand
7 PSR PT. Kideco Jaya Agung Coal Hong Kong, Japan, 5,000,000 MT/year
Philippine, India, Chile,
Taiwan
8 KUTIM PT. Kaltim Prima Coal Coal Malaysia, Japan, 15,000,000 MT/year
Netherlands, USA,
Taiwan, Korea, Brazil,
Chile, France, Hong
Kong
9 KUKAR PT. Kitadin Stream Coal Hong Kong, India, 1,200,000 MT/year
Japan, Taiwan,
Malaysia
10 KUKAR PT. Tanito Harum Steam Coal Thailand, India, Japan, 1,807,000,000
Taiwan, Malaysia, MT/year
China
11 PT. Multi Harapan Coal Japan 973,000,000 MT/year
Utama
12 PT. Gunung Bayan Coal Japan 2,602,000,000
Pratama Coal MT/year
13 PT. Indexim Coalindo Coal
14 Kartika Selabumi Mining Coal
15 Mandiri Inti Perkasa Coal
16 Nusa Minera Utama Coal
17 PT. Sinar Benua Prima Coal
18 PT. Trubaindo Coal Coal
Mining
19 PT. Anugerah Jatimulya Coal
20 PT. Batubara Selaras Coal
Sapta
21 PT. Bharinto Ekatama Coal
22 PT. Bumi Laksana Coal
Perkasa
23 PT. Bumi Panen Sukses Coal
24 PT. Bumi Sukses Coal
Mandiri
25 PT. Dayalapan Coal
26 PT. Delma Mining Coal
Corporation
27 PT. Dharma Puspita Coal
Mining
28 PT. Dhamar Coal
Tejokencono
29 PT. Firman Ketauan Coal
Perkasa
30 PT. Insani Bara Perkasa Coal
31 PT. Interex Sacra Raya Coal
32 PT. Kurnia Sarana Coal
Lestari
33 PT. Lahai Coal Coal
34 Pt. Lanna Harita Coal Japan 945,000,000 MT/year
Indonesia
35 PT. Mahakam Sumber Coal
Jaya

BKPM JICA
Capacity product or
export
36 PT. Maruwai Coal Coal
37 PT. Pari Coal Coal
38 PT. Perkasa Inakerta Coal
39 PT. Pesona Khatulistiwa Coal
Nusantara
40 PT. Ratah Coal Coal
41 PT. Salamindo Pahala Coal
42 PT. Santan Batubara Coal
43 PT. Singlurus Pratama Coal
44 PT. Salaminndo Coal
Coalindo
45 PT. Tambang Damai Coal
46 PT. Taraco Mining Coal
47 PT. Teguh Sinar Abadi Coal
48 PT. Tempayang Coal
Cemerlang
49 PT. Timah Batubara Coal
Utama
50 PT. Wadungmas Coal
Tambang Mulia
51 PT. Wirakaneo Coalindo Coal
52 PT. Whiratama Bina Coal
Perkasa
53 PT. Anugerah Bara Coal
Kaltim
Food and Baverage
1 BLP Kalimantan Raya Megah Live sea worm Japan 750 Ton/year
Fishery
2 KUKAR PT. Misaja Mitra S. Frozen shrimp Japan 620 Ton/year
Mariam
3 TRK PT. Malindo Kencana Frozen shrimp: Japan, Hong Kong, 700 Ton/year
Utama - Shell On, Belgium
- Raw Peeled,
- Cooked Peeled
4 TRK PT. Nelayan Abadi Frozen Shrimp Belgium, England, 480 Ton/year
Kalimantan Jaya Japan, Hong Kong,
USA.
5 BLP PT. Sumber Kalimantan Quick Frozen Fresh Shrimp Hong Kong, Japan, 700 Ton/year
Abadi Europe
6 KUKAR PT. Samarinda Cendana Fresh Frozen Prawns/Shrimp Hong Kong, Japan, 1,200 Ton/year
Cold storage & Ind USA, Singapore
7 TRK PT. Sumber Kalimantan Quick Frozen fresh Shrimps Japan, Hong Kong, 1,200 ton/year
Abadi Europe
8 BLP CV. Ihda Gahary Japan, Hong Kong,
Europe, Singapore
9 TRK PT. Mustika Minanusa Frozen/Fresh Shrimp Japan, Hong Kong
Aurora
Gemilang I
11 TRK PT. Misaja Mitra, Frozen Shrimp Japan 460 Ton/year
Tarakan
12 BLP PT. Manggar Bina Frozen Shrimp Japan 370 Ton/year
Persada BPP
13 BRU PT. Mina Nusantara Frozen Shrimp Japan 280 Ton/year
Ikatama, Berau
14 TRK PT. Tunas Nelayan Frozen Shrimp Japan 850 Ton/year
Mandiri
15 KUKAR PT. Syam Surya Mandiri Frozen Shrimp Japan 700 Ton/year
16 KUKAR PT. Aromah Nelayan Frozen Shrimp Japan 820 Ton/year
Mandiri

BKPM JICA
Capacity product or
export
17 TRK PT. Bonanza Frozen Shrimp Japan 250 To/ year

Gemilang II
Live Crabs
1 BLP CV. Rickyndo Utama Live Crabs Singapore 5,400 Ton/year
Birds Nest
1 SMD CV. Sumber Bumi Birds Nest/ Black Birds Nest Singapore, Hong Kong 1,250 Ton/year
Agribusiness
1 KUKAR Yayasan 1. Ginger (Zingiher USA, Europe, 77,240 Ton/year
Pengembangan Tunas offiancanale rose) Australians 20,000 Ton/year
Nusantara, Perwakilan 2. Saffron (Curcuma domestic. 138 Ton/year
Kabupaten Kutai Val) 17,500 Ton/year
3. Nanas (Ananas comesus.L)
4. Rice (Oriza sativa)
2 SMD CV. Bintang Mas Prima 1. White Paper USA, Europe, 77,240 Ton/year
Jaya 2. Black Paper Singapore, Japan 20,000 ton/year
Candy/soap/Talc/Shampoo
1 TRK Harapan Extra Prima.UD 1. Candy Malaysia
2. Soap/Talc/Shampoo
Rattan/Flooring
1 SMD Arus Mahakam, PT. 1. Rattan Malaysia, China,
2. Flooring Singapore
Agar Wood
1 SMD PT. Kuda Mas Agar wood Singapore 822,000 Kg/year
Source: East Kalimantan Exporters Directory, Provincial Office of The Industry, Trade and Cooperatives of
East Kalimantan, 2003.
SMD=Samarinda, BLP=Balikpapan, TRK=Tarakan, KUKAR=Kutai Kartanegara, BRU=Berau,
KUTIM=Kutai Timur, PSR=Pasir, MLU=Malinau, BTG=Bontang.

Executive-Summary BKPM Japan International Cooperation

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Executive-Summary BKPM Japan International Cooperation

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BKPM

INVESTMENT COORDINATING BOARD (BKPM)

INVESTMENT OPPORTUNITIES STUDY

PT. PACIFIC CONSULINDO INTERNATIONAL INDONESIA

List of Contents .................................................................................................. i

1. OVERVIEW OF PROVINCIAL ECONOMY .................................................. 1

2. CURRENT SITUATION AND FUTURE PROSPECT OF

3. CURRENT SITUATION AND FUTURE PROSPECT OF

3.1.5a Plantation ...................................................................... 18

4. CURRENT SITUATION AND FUTURE PROSPECT OF

5. CONSTRAINTS IN INVESTMENT CLIMATE............................................... 36

6. PROPOSAL OF PROSPECTIVE PROJECTS ............................................. 37

INVESTMENT OPPORTUNITIES STUDY

I. OVERVIEW OF PROVINCIAL ECONOMY

1.2 Gross Regional Domestic Products

PT. PCII -1-

Province 1999 2000 2001 2002 2003 Avg. Annual

West Kalimantan 7,065,793 7,274,000 7,409,948 7,559,183 7,781,875 2.44%

Central Kalimantan 4,032,225 4,092,515 4,203,919 4,341,375 4,552,231 3.08%

South Kalimantan 6,157,938 6,424,665 6,665,209 6,869,600 7,256,171 4.19%

East Kalimantan 21,519,670 22,384,086 23,513,161 24,521,451 25,680,662 4.52%

Source: East Kalimantan in Figure 2003

Figure 1-1 Share of GRDP by Economic Sector, East Kalimantan, 2003

Agriculture, Mining and Manufacturing

Source: East Kalimantan in Figure 2003

1.3 Current Export Import

Activities 1998 1999 2000 2001 2002 2003 Growth

Export Total 4,403,900 5,337,380 8,513,332 8,861,352 7,747,497 9,029,138 21.01

PT. PCII -2-

Activities 1998 1999 2000 2001 2002 2003 Growth

Import Total 1,011,304 1,135,278 1,296,451 1,780,980 1,864,525 2,219,506 23.89

Sector/products 2000 2001 2002 2003 2004* Contribution

1.4 Labor Force Situation

PT. PCII -3-

Figure 1-2 General Profile of Educational Attainment in East Kalimantan

Sources: BPS of East Kalimatan Province, 2003

1.5 Labor Wage by Sector

1.6 Land Price in Major Kabupaten/Kota

PT. PCII -4-

1.7 Current Investment Realization

Domestic Investment Realization

Figure 1-3 Domestic Investment (PMDN) Realization by Sector

Other Services Electricity, Gas & Foodcrops & Plantation

PT. PCII -5-

Figure 1-4. Breakdown of Domestic Investment (PMDN) in Industries (68.75%)

Metal Goods Industry Other Industries Metal Industry Food Industry

Overseas Investment Realization

Figure 1-5 Foreign Investment Realization by Industry

Electricity, Gas &

PT. PCII -6-

Figure 1-6 Breakdown of Foreign Investment (PMA) in Industries (28.40%)

Mineral Non Metal Other Industries Food Industry

Investment pattern in East Kalimantan is in line with comparison of Location Quotient

1.8 Industries Location and Strategic Areas

PT. PCII -7-

114 00'E 116 00'E 118 00'E

Long Bawan Atap

NATURAL GAS FIELD Long Bia

OILD FIELD P.DERAWAN

Muara Wahau KUTAI TIMUR Sangkulirang Teluksumbang

Ujah Bilang Muara Ancalong

HTI Batusopeng TANAHGROGOT