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Special Economic Zone Bitung The Center of Fishery and Logistics in East Indonesia OVERVIEW INDONESIA National GDP Growth Projection INDONESIA is primed for economic take off. With debt to GDP ratio is at low 27%. The IMF forecasts the economy will expand to US$1.5 trillion by end-2015, while McKinsey expects Indonesia to become the world’s 7th-largest economy by 2030. In 2013 The ADB and The World Bank project Indonesia’s economic growth to increase from 6.3% to 6.5, the largest in Southeast Asia. The IMF also projects Indonesia will be at the top 3 fastest economic growths among G20 countries. International Credit Ratings: Indonesia Shares Investment Grade May 2013 BB+/STABLE July 2013 BBB-/STABLE Source: IMF OVERVIEW SEZ BITUNG SEZ Bitung has the status of Special Economic Zone (SEZ) for fishery, coconut industry, and logistic support in East Indonesia which was newly launched by the Government of Indonesia in 2014. It has benefits for investors in terms of fiscal and non-fiscal incentives. Sam Ratulangi KDY. Bitung Donowudu Manado Bitung With the total area of 534 ha, SEZ Bitung is located in Tanjung Merah Bitung Village, North Sulawesi Province. SEZ Bitung is managed by the provincial government of North Sulawesi. SEZ Bitung area is designed by the Government as the centre of fishery, distribution, & logistic in Sulawesi Economic Corridor. Kema SEZ Bitung Regency Sea Port Country Road Airport Road Plan Provincial Capital INVESTMENT OPPORTUNITIES IN SEZ BITUNG Investment Options A. Fishery Processing Industry • Fresh Fish Processing • Canning B. Processing Industry of Plantation and Industrial Plants • Vegetable Oil • Coco-Chemical C. Logistics • Packaging • Inspection Services • Container • Warehousing Land Use Plan SEZ Bitung Area Green Open Space Zone Reserved Zone Non-Industrial Facilities Zone Supporting Facilities Zone Public Facilities Zone Pollutive Industrial Zone Industrial Zone Facilities Zone Closed Warehousing Zone Waste Treatment Zone Fish Port Zone Container Terminal Zone Power Plant Zone Housing Zone Road WHY INVEST IN SEZ BITUNG? 1 Best Location 2 Potential Natural Resources • Located near Sea Port of Bitung with an average depth of more than 22 - 30 meters which soon will be established as an international hub port. • Located near Indonesian Archipelagic Sea Lanes (ALKI 3) which is passed by container ships and large capacity tanker from Eastern Australia and East Asia. • It has Strategic Access to BIMP-EAGA, AIDA, East and Pacific Asia, and Sam Ratulangi Airport • With the total production amounting to 145,059 tons or costs around 850.49 billion rupiah, North Sulawesi province is the third biggest area that export fishery products in Indonesia. • Indonesia has the biggest area for coconut plantation in the world with the total export of 7,405 Million tons. 3 Investment Incentives Fiscal Facilities No. Non-Fiscal Facilities Incentives Treat in SEZ 1. Income Tax Allowance Will be given for the business entity and individual who run business in SEZ Bitung. 2. Value-Added Tax (VAT) & Luxury Sales Tax Exempted for taxable goods. 3. Import Duties Postponement for import goods to SEZ Bitung. 4. Excise Exempted for raw direct materials and supporting materials for production purposes. 5. Import Income Tax Not Levied 6. Tax Agency Incentives Not Levied 7. Property Tax Reduction in compliance to the provision of law and regulation. 4 Supporting Regional Infrastructure No. Incentives Treat in SEZ 1. Employment • Permission to hire foreign workers who have position as directors or managers. • Within the SEZ will be established: 1. Wage council; 2. Trade/Labor Unions to create effective communication and harmonious industrial relation; 3. Tripartite cooperation institution. 2. Immigration Easiness for foreign business people. 3. Land • Easiness to obtain land rights and land acquisition; • Granted land rights for those who already have land. 4. Security SEZ Bitung will be a vital object (according to Indonesian police’s policy) 5. Local Government Supports • Tax and local retribution reductions • Commitment for SEZ administration's operation. Road Development of Manado – Bitung Toll Road and the upgrading of National Highway Water Supply Development plan of water treatment plant, transmission & distribution water pipeline, and Multipurpose Reservoir Kuwil Sawangan in Minahasa Utara Sea Port The expansion of Bitung Port and International Hub Port Bitung Designation Electricity Electricity Capacity Upgrading and development of Main Substation and transmission & distribution network Airport Sam Ratulangi Aiport Runway Extention Investment Commitment PT. Mapalus Makawanua Charcoal Industry PT. Brandtwood International The company has established a factory in the zone. The company has established a factory in the zone. Indonesia Investment Coordinating Board (BKPM) Jl. Gatot Subroto No. 44, Jakarta 12190, PO. Box 3186, Indonesia Phone: +6221 5292 1334; 5292 1304 Fax: +6221 5264 211; 5253 866 Website: www.bkpm.go.id Email: [email protected] PT. Pelindo IV The company has signed an MoU with the mayor of Bitung to invest around in logistic sector. Pemerintah Provinsi Sulawesi Utara Jl. 17 Agustus No. 69 Manado, Indonesia Phone: +62431 865559; 865437 Fax: +62431 865919 Website: www.sulutprov.go.id Email: [email protected] invest in remarkable