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INVESTMENT ENVIRONMENT IN CENTRAL JAVA INDONESIA

Central Java Board of Investment

INDONESIA

Tokyo, 22nd August 2014

Central Java – The Right Place to Invest

Central Java Overview

• Land Area of 3,25 Ha

(1,7% of Indonesia); 30,47% wetland,

69,53% non wetland

• Consist of 29

regencies, 6 cities

• Provincial Capital :

Semarang

Indonesia

Central Java • Located between 3

major provinces; East

Java, West Java, and

Yogyakarta

• Distance from Jakarta

(Capital City) : 544 Km

(45 minute flight)

• Distance from

Singapore : (2 hour

flight)

Why Central Java

• Economic

Growth : 5,2 %

(Qw II 2014)

• Total GDP : IDR.

174.34 trilion

(QW II 2014)

• Inflation : 5,03 %

(yoy QW II 2014)

• Population : 34,67

million people

(2013)

• Labor Force : 17,72

million people

(February 2014)

• Minimum Wage in

2014 ranges from

IDR. 910.000 to

1.423.500

Central Java - The right place to invest

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2011 2012 2013

Manufacture 33.3 32.8 32.2

Trade, Hotels and Restaurant 19.1 20.3 20.8

Agriculture 19.7 18.8 19.3

Services 10.6 10.7 10.4

0

5

10

15

20

25

30

35 P

erce

nta

ge

DOMINANT SECTOR FOR GDP (%)

MACRO ECONOMIC

INVESTMENT REALIZATION (Rp. trillion)

0,987 0,793

1,6591,358 1,49

2,572,825

4,861

1,633

0,859

0

1

2

3

4

5

6

2009 2010 2011 2012 2013

FDI

DDI

YEAR

VA

LU

E (

Rp

. T

rilli

on

)

6

NO COUNTRIES PROJECTS

1. South Korea 69

2. Japan 25

3. Singapore 21

4. Netherlands

19

5. Germany 16

NO COUNTRIES PROJECTS

6. US 16

7. Taiwan 16

8. England 13

9. Australia 10

10. France 9

FDI BY COUNTRY OF ORIGIN

*Data Source: Central Java Board of Investment (Qw II 2014)

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No Regency/City Project Labour

1 Semarang City 16 6.161

2 Semarang Regency 5 5.513

3 Demak Regency 4 1.256

4 Jepara Regency 3 183

5 Kendal Regency 3 110

No Regency/City Project Labour

1 Salatiga City 18 115

2 Brebes Regency 7 58

3 Semarang City 5 2.446

4 Karanganyar Regency 3 1.624

5 Semarang Regency 2 550

FDI DDI

INVESTMENT REALIZATION BY

LOCATION

*Data Source: Central Java Board of Investment (Qw II 2014)

Indonesia

Central Java

Cultural & Tourism Good Living Leisure & Relax

Amenities

The right place to invest

KARIMUN JAWA

H I N D I A O C E A N INTERNATIONAL AIRPORT

INTERNATIONAL HARBOUR

LOCAL AIRPORT

DOMESTIC HARBOUR

RAILWAY STATION

BUS STATION

TOURISM DESTINATION

TOLL ROAD

TOLLROAD : SMG - SOLO

TOLL ROAD : KANCI - PEJAGAN

SOUTH TRACK

RAILWAYS

NORTH TRACK

RAILWAYS

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SUPPORTING SYSTEM FOR INVESTMENT

CHANNEL

-10 M

CONTAINER

TERMINAL

BASIN

-10 M

BASIN

-7 M

BASIN

-9 M

BASIN

-6 M

SAMUDERA

WHARF

NUSANTARA

WHARF

EX PLTU

WHARF

BASIN

-6 M CPO WHARF

By Port – Import / Export

Port of Tanjung Emas

TANJUNG EMAS HARBOR PLAN PROGRAM 2031

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AHMAD YANI AIRPORT DEVELOPMENT PLAN

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274 Universities, 20 Polytechnic, 1.189 Vocational High

Schools, Training Center (Working Training Center, Human

Resource Training Center)

CENTRAL JAVA AS VOCATIONAL PROVINCE

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http://bpmd.jatengprov.go.id/

BPMD JATENG 2014

•OSS of Central Java Province •OSS of 35 Regencies/Cities • Task Force • Information Service • Website :

http://bpmd.jatengprov.go.id/

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License Services in Central Java OSS

- LICENSE : 81 ITEMS

- RECOMMENDATION : 30 ITEMS

GOLF COURSE

• BSB, Candi, Gombel, Manyaran Indah Golf Course in Semarang

• Adi Sumarmo Golf Course Solo

• Tidar Golf Course Magelang

• Pertamina Golf Course Cilacap

TOURISM DESTINATION

BANKING 48 Banks, 10 Foreign Banks (HSBC, DBS, Citibank,

Rabo Bank, CIMB, Standard Chartered, UOB, ANZ, Commonwealth, BII Maybank)

106 Star Hotels

1.090 Small Hotels

Most of them are located at:

Semarang, Surakarta, Magelang,

Tegal, Pekalongan, Purwokerto.

HOTELS

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INDUSTRIAL ESTATE DEVELOPMENT PLAN : KENDAL, SEMARANG REGENCY, DEMAK, GROBOGAN, BOYOLALI

1. TUGU WIJAYAKUSUMA 2. CANDI INDUSTRIAL ESTATE 3. BUKIT SEMARANG BARU 4. TERBOYO 5. LIK BUGANGAN BARU 6. EPZ. LAMICITRA 7. CILACAP INDUSTRIAL ESTATE

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Kendal Industrial Park

Conceptual Master plan

• Total Development: 2,700 Hectares

• Mixed use development: encompassing mainly industrial use, as well as residential & commercial

• Water-front land: facing northern coast of Central Java

Phase 1 (860 Hectares)

Commercial &

Residential

Industrial Land Plots

Ready-built

Factories

Proposed Power

Plant

Waste-water

Treatment Plant

On-site Port

1. Foreign Investor Association : China, Korea, Taiwan, Japan, Singapore, Malaysia, Australia, Queensland.

2. Business Association: Chamber of Commerce, Asmindo, HIPMI, IWAPI, MIBC

3. Labor Association : SPSI, FSPSI.

4. Association in Agriculture Sector: HKTI, APTRI, GAPPERINDO, AEKI, APTI,APSPI.

5. Association in Tourism Sector : ASITA, PHRI

6. Minimum Wage (2014): IDR. 910,000–

IDR. 1,423,500 (JPY. 8,053- 12,597)

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NO LOCATION (IDR)

1 Semarang City 1.423.500

2 Demak Reg. 1.280.000

3 Kendal Reg. 1.206.000

4 Semarang Reg. 1.208.200

5 Salatiga city 1.170.000

6 Grobogan Reg. 935.000

7 Blora Reg. 1.009.000

8 Kudus Reg. 1.150.000

9 Jepara Reg. 1.000.000

10 Pati Reg. 1.013.027

11 Rembang Reg. 985.000

12 Boyolali Reg. 1.116.000

13 Surakarta 1.145.000

14 Sukoharjo Reg. 1.150.000

15 Sragen Reg. 960.000

16 Karanganyar Reg. 1.060.000

17 Wonogiri Reg. 954.000

NO LOCATION (IDR)

18 Klaten Reg. 1.026.600

19 Magelang City 1.037.000

20 Magelang Reg. 1.152.000

21 Purworejo Reg. 910.000

22 Temanggung Reg. 1.050.000

23 Wonosobo Reg. 990.000

24 Kebumen Reg. 975.000

25 Banyumas Reg. 1.000.000

26 Cilacap Reg. 950.000 – 1.125.000

27 Banjarnegara Reg. 920.000

28 Purbalingga Reg. 1.023.000

29 Batang Reg. 1.146.000

30 Pekalongan City 1.165.000

31 Pekalongan Reg. 1.145.000

32 Pemalang Reg. 1.066.000

33 Tegal City 1.044.000

34 Tegal Reg. 1.000.000

35 Brebes Reg. 1.000.000

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MINUMUM WAGE RATE, 2014

BPMD PROV. JATENG

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Agriculture Infrastructure Manufacture Tourism Property Energy and

Mining

INVESTMENT

OPPORTUNITIES

Central Java- The Right Place to Invest

AGRICULTURE No. Project Investment Value IRR

1 Seaweed Cultivation and Processing in Brebes Regency

22.215.000.000

2 Karangpucung Integrated Speech Ranch in Cilacap Regency

12.365.713.000 19,80%

3 Cultivation of Seaweed in Jepara Regency 5.240.000.000

4 Development of Folk Pine Potency in Pekalongan Regency

3.648.200.000 27 %

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MANUFACTURE

No. Project Investment Value IRR

1 Construction of Particle Board Processing in Jepara Regency

28.408.300.000 21,37%

2 Construction of Fodder Industry in Demak Regency

11.000.000.000 20,45%

3 Construction of Waste Processing Industry to be Organic Fertilizer in Kudus Regency

9.016.410.000 25,00%

4 Fish Based Food Manufacturing in Tegal Municipal 12.014.346.000 44,92%

5 Development of Integrated Coconut Processing Industry in Cilacap Regency

11.000.000.000 31,00%

6 Construction of Mung Bean Milk Industry in Demak Regency

9.500.000.000 25,15%

7 Packaged Drinking Water Development in Pekalongan Regency

5.048.700.000

8 Construction of Fodder Industry in Blora Regency 50.000.000.000

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INFRASTRUCTURE No. Project Investment Value IRR

1 Technological Village in Jepara Regency 247.908.016.000 23,05%

2 Solid Waste Final Disposal and Treatment Facility – Putri Cempo Mojosongo – Surakarta

200.000.000.000

4 Development of Semarang Barat Water Supply (PPP)

824.000.000.000

5 Development of Tlogomili Water Supply System in Kendal Regency

314.492.000.000

6 Development of Kalijambe Industrial Zone in Sragen Regency

7 Construction of Industrial Estate in Brebes Regency

8 Construction of Industrial Estate in Tegal Regency 75.000.000.000

9 Construction of Tengaran Industrial Estate in Semarang Regency

266.000.000.000

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ENERGY AND MINING

No. Project Investment Value IRR

1 Construction of Precipitated Calcium Carbonate (PCC) in Rembang Regency

10.491.503.000 31,84%

2 Construction of Hydrate Lime Plant in Rembang Regency

125.690.000.000 22,91%

3 Telomoyo Geothermal Power Plant in Semarang Regency

3.240.000.000.000

4 Mini Hydro Power Plant in Pekalongan Regency

149.970.000.000

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TOURISM No. Project Investment Value IRR

1 Development of Karimunjawa Resort in Jepara Regency

31.000.000.000

2 Development of Morosari Tourism in Demak Regency

20.000.000.000 21,16%

3 Salatiga Education and Recreation Park 68.534.300.000 18,87%

4 Development of Integrated Coffee Plantation Tourism Area in Pati Regency

7.721.500.000 19,00%

5 Development of Colo Tourism Object in Kudus Regency

10.927.080.000 19,00%

6 Construction of Senjoyo Tourism Area in Semarang Regency

35.000.000.000 20.67%

7 Development of Tlatar Tourism Object in Boyolali Regency

20.000.000.000 22,24%

8 Development of Alam Indah Beach Tourism in Tegal Municiplaity

67.587.600.000 22, 70%

9 Pengembangan Agrowisata Borobudur di Kab. magelang

4.000.000.000

10 Development of Manganti Beach in Kebumen Regency

136.200.000.000

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TOURISM

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No. Project Investment Value IRR

11 Development of Widarapayung Beach in Cilacap Regency

16.200.000.000 19,00%

12 Development of Sigandu Beach Tourism Object Batang Regency

181.847.000.000 21,20%

13 Development of Widuri Beach in Pemalang Regency 23.000.000.000 21,10%

14 Development of Kledung Rest area in Temanggung Regency

12.500.000.000 18,00%

15 Development of Pringsurat Rest area in Temanggung Regency

102.000.000.000

16 Development of Wonosari Zoo Park in Semarang City 100.000.000.000

17 Development of Gunungpati and Mijen Agrotourism in Semarang City

16.167.409.000

18 Development of Rawa Bendungan Tourism Object in Cilacap Regency

25.000.000.000 28,44%

19 Construction of Rest Area in Kendal Regency 15.000.000.000

PROPERTY No. Project Investment Value IRR

1 Construction of Fruit, Fancy fish and Souvenir Market in Pekalongan Municipality

61.674.000.000 18,80%

2 Construction of Textile and Electronic Trading Service Centre in Kartasura, Sukoharjo Regency

89.946.750.000 28,00%

3 Construction of Dieng Convention Hotel in Wonosobo Regency

12.099.585.000 24,00%

4 Construction of Sky Tower Solo Technopark in Surakarta

137.262.000.000

5 Revitalization of Johar Market in Semarang Municipality

300.000.000.000

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Central Java The right place to invest

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