INDONESIA MARINE AND FISHERIES

BUSINESS AND INVESTMENT

OPPORTUNITIES

MINISTRY OF MARINE AFFAIRS AND FISHERIES

REPUBLIC OF INDONESIA

Jakarta, 21 February 2017

INVESTMENT REALIZATION Maritime Sector Investment in Indonesia

per Subsector, (Jan- Sept 2016)

Capture FisheriesValue : Rp. 7,4 billion• Project : 3• Labour Absorbtion : 350 person• Main Location : South East Sulawesi, North Sulawesi• Origin Investor : Indonesia, Thailand, Filiphina

AquacultureValue : Rp. 512 billion• Project : 13• Labour absorbtion : 1.533 person• Main Location : Bali, West Kalimantan, Banten, NTB, NTT, Bali,

East Java, Lampung, DI Yogyakarta, Maluku• Origin Investor : Indonesia, Malaysia, R.R Tiongkok, Hongkong,

Jepang, British Virgin Islands, Singapura, Australia

Fish Processing IndustryValue : Rp. 2,29 Triliyun• Project : 57• Labour absorbtion : • Main Location : South Sulawesi, East Java, Lampung, West Nusa

Tenggara, Banten, Central Java, South Kalimantan, West Java, Central Java, South Sulawesi, Jakarta, Aceh, North Sulawesi, Morth Sumatera, South Sumatera, Lampung

• Origin Investor : Indonesia, R.R Tiongkok, Taiwan, British Virgin Island, South Korea, Singapura, Malaysia, Filipina, Jepang

Ship Yard Industry (2015)Value : Rp. 325 billion• Project : 76• Labour absorbtion : 1.561 people• Main Location : Riau Island, Bangka Belitung Island, East Java• Origin Investor : Singapore, Indonesia, RRT

Source : The Investment Coordinating Board of the Republic of Indonesia

Source : The Investment Coordinating Board of the Republic of Indonesia

Source : The Investment Coordinating Board of the Republic of Indonesia

6

11 FISHERIES MANAGEMENT AREAS

REPUBLIC OF INDONESIA

Source: Minister Regulation No.18/2014 concerning FMA-RI

7

CAPTURE FISHINGS OPPORTUNITY (TON)

8

FISHING OPPORTUNITIES IN INDONESIA

9

FISHING OPPORTUNITIES IN INDONESIA

10

FISHING OPPORTUNITIES IN INDONESIABY FISHERIES MANAGEMENT AREA

11

FISHING OPPORTUNITIES IN INDONESIABY PROVINCES (GT)

13

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2012 2013 2014 2015 2016

Thousand ton

EKSPOR IMPOR

-

1

1

2

2

3

3

4

4

5

2012 2013 2014 2015 2016

US$ Billion

EKSPOR IMPOR

% of Growth

2012-2016 2015-2016

Export -3.09 0.34

Import -7.48 -9.10

% of Growth

2012-2016 2015-2016

Export 2.19 4.96

Import -2.77 5.67

Balance 2.90 4.88

Source: BPS, 2016

Trends of Fishery Export and Import

*

* Termasuk UK

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

Indonesia Thailand Vietnam Philippines

Source: International Trade Center, 2016

US$ Thousand

Indonesian Fishery Balance of Trade (#1 among ASEAN Countries in 2015)

15

MARINE AND FISHERIES INVESTMENT POLICY

• Surveillance of marine and fishery resources;• Fish Quarantine, Quality control, food safety and bio

safety

• Marine spatial, conservation and bio diversity• Business Sustainability• Marine and fishery products competitiveness

• Human Resouces scaling up• Innovation in technology

SOVEREIGNTY

SUSTAINABILITY

PROSPERITY

SEA IS OUR FUTURE

BANGSATo achieve sovereign, independent, and sustainable management of marine and fisheries resources for the people’s prosperity

GOVERNMENT VISION : SEA IS OUR FUTURE

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…

Combating IUUF

…

Regulatory Reforms

…

Investment and

financial inclusion

…

Research &

HRD

integration

Orientation for Fisheries GDP

Growth

…

Stages for Fisheries Reform

Kementerian Kelautan dan Perikanan Republik Indonesia

Jl. Medan Merdeka Timur No. 16, Jakarta 10041 | www.kkp.go.id

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NATIONAL FISHERIES INDUSTRY ACCELERATION PROGRAMM(Perpres 3/2017)

Sustainable

Aquaculture

Fisheries Product Processing Industry

Sustainable

Fishing

ACCELERATION TO DEVELOP NATIONAL FISHERIES INDUSTRY

(INPRES 7 / 2016)

Regulation,

Institutional &

Financing

Zoning and Region Development

PROGRAM AND ACTION PLAN OF NATIONAL FISHERIES INDUSTRY

Sustainable

Fishing

Sustainable

Aquaculture

Fisheries

Product

Processing

Industry

• Revitalize national shipyard and increase local fishing vessel industries’

capacity

• Law enforcement and license transparency to prevent IUU Fishing

• Complementary facilities and infrastructure in Fishing Port

• Provide energy needs for domestic fishing vessels

• Skills training and fishermen certification

• Reduce feed cost in aquaculture production component

• Complementary facilities and infrastructure for increasing fishpond production

• Building business relation with small medium scale farmer

• Skills training and farmer certification

• Acces of electricity and cold chain for raw material supply of fisheries industry

• Ease access of transportation, export and import

• Ease access of skilled labor

• Facilitate of tax and import tariff and export

• Standardize business and fish processing industry

• Optimalize warehouse receipt system for fisheries product and seaweed

• Acceleration Roadmap of National Seaweed Industry

• Increasing access and domestic fish consumption

• Increase and expansion of foreign market

• Diversification and improvement of marine and fisheries product quality

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Zoning and

Region

Development

Regulation,

Institutional &

Financial

inclusion

• Transparency of location license & management license in coastal

area and small islands

• Acceleration of national marine spatial planning to support

sustainablility of fisheries industry

• Location determination and prepare facilities and infrastructure in

Integrated Fisheries Industry (SKPT) as National Strategic Project

• Harmonize Fisheries Law with Shipping Law associated with

integration of port management, port authority, license, certification of

crew, berthing port freighter, and addition of special port in eastern part

of Indonesia as a hub

• Financial support and capital access Acceleration of the procurement of

goods and service, additional capital investment for fisheries state-own

enterprises and dan expansion finance access non-National Budget

(APBN) for business (BLU, KUR, Bank Credit)

• Improvement of data & information through One Data

• Increase group’s status into a Cooperative

• Minimize security risk of fisheries industry in the outermost island

Zoning and

Region

Development

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PROGRAM AND ACTION PLAN OF NATIONAL FISHERIES INDUSTRY

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INTEGRATED MARINE AND FISHERIES ZONE

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Build new industry base on outer island to develop the export gateway

Location plan in 12 SKPT 2017 & sea toll roadmap 2017

12 location for

SKPT 2017

1. Natuna

2. Saumlaki

3. Merauke

4. Mentawai

5. Nunukan

6. Talaud

7. Morotai

8. Biak Numfor

9. Mimika

10. Rote Ndao

11. Sumba Timur

12. Sabang

Sumber:

- Rute Tol Laut: Kementerian

Perhubungan, 2016

- SKPT 2017: KKP, 2016

Integrated Marine and Fisheries Zone

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Modernize 5 Existing Fishing Ports

• Place for fish auction

• Ice flake machine

• Integrated Cold Storage capasity 500 ton

• Refregator vehacle with 6 tire

• Landing Center and shelter

• Place for fish auction I dan II

• Modern Fish Market (for retail ang wholesaler)

• High grade fish market

• Ice flake machine

• Refregator vehacle with 6 tire

PPS Nizam ZachmanMuara Baru, Jakarta

• Place for fish auction

• Ice flake machine

• Refrigator vehacle with 4 tire

PPP Sendang Biru Malang, Jawa Timur

• Place for fish auction

• Ice flake machine

• Integrated Cold Storage kapasitas 500 ton

• Refrigator vehacle with 6 tire

PPN PengambenganJembrana, Bali

Jayanti Cianjur

PPS Bitung, Bitung Sulawesi Utara

1

2

3

4

5• Port

• Ice flake machine

MMAF Priority Program in Capture Fisheries

Fishing Vessel Fishing Gear 4 location SKPT

1.080 Unit 2.990 UnitNanuta, Saumlaki,

Merauke, Nunukan

Insurance

5.000 Unit7 Fishing PortMuara Baru, Bitung, Jembrana, Sendang Biru,

Jayanti, Pangandaran/Cikidang, dan Untia

PRIORITY PROGRAM

DG OF CAPTURE

FISHERIES

2017

Certain types of activities are fully or partially restricted when it comes toFDI. Key areas relevant to the fisheries sector are detailed below

Presidential Regulation 44 /2016: Foreign Direct Investment

Require Partnership with local :

1. Rearing of Fish

2. Hatchery of Fish

3. Processing of Fishery Products

4. Manufacture of wooden ships

5. Manufacture of device and fittings of wooden ships for marine tourism and fishing

CLOSED to FDI

1. Capture Fisheries

2. Fishing of species listed in Convention on International Trade in Endangered Species of Wild Fauna and Flora)

3. Salvage of Sunken Ship Treasure

4. Sea Sand Quarrying

Subject to haverecommendation from

the Minister of Forestry and Environment

Coral/Ornamental Coral Culture

Businesses which are not regulated in Presidential Regulation 44 /2016 are open for Foreign Capital Investment, for example Cold Storage

28

Imp

ort

du

ty e

xem

pti

on

Tax

allo

wan

ce 3

Tax

ho

liday

Investment Incentives

Tax allowance

Tax holiday

Import duty

exemption

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TAX ALLOWANCE

Government Regulation

No.18/2015

Total net income reduction by 30% of the investment, that

are charged respectively 5% per year in the 6 years

period

Accelerated depreciation

and amortisation)

Imposition of income tax on dividends which paid to foreign tax subject of 10% (ten percent), or a lower rate according to the avoidance of double

taxation agreement

Compensation losses longer than 5 (five)

years

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Criteria and/or conditions of income tax facilities for investment

As per Decree of the Minister of Marine Affairs and Fisheries No. 17/PERMEN-KP/2015

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TAX HOLIDAY/TAX EXEMPTION (PMK No.159/PMK.010/2015)

New Investor

Pioneer industries (incl. fish processing industry)

Must Invest at least IDR 1 Trillion (USD 71 Milion)

Deposit 10% of Investment plan

Indonesian legal Entity after August 15, 2011

CRITERIA :

Granted of at least 10% to the 100%Granted for 5-15 years

up to 20 years considered if strategic value of certain industry

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IMPORT DUTY FACILITY

Ministry of Finance Regulation No.176/PMK.011/2009

Exemption from import duty on the import of machines, goods & materials for production for a

period of 2 years.

Import duty exemption is granted for 2 years based on the installed machine capacity for production purpose and

available for 1 year extension.

If the company uses at least 30% local machineries, import duty exemption is available for additional product for 4

years.

Source : Investment Coordinating Board of the Republic of Indonesia

THANK YOU

MINISTRY OF MARINE AFFAIRS AND FISHERIES

REPUBLIC OF INDONESIA