#1SEZ MBT K MBTK special economic zone MALOY BATUTA TRANS KALIMANTAN EAST BORNEO PROVINCE#2A Glance of Indonesia ■ Abundant Natural Resources Consists of 70% sea (potential marine sector) ☐ rich in reserves of natural and mineral resources Geographical Advantages for Trading Gateway to worldwide trading Strategic location between two oceans 270 million of population (2020) Asean Economic Community (AEC) Gateway to AEC market Competitive labour supply and quality ■ ■ fitch ratings Investor grade country 2020 by#3Indonesia SEZ 18 SEZs and its Primary Activities 1. Arun Lhokseumawe North Aceh & Lhokseumawe, Aceh (Government Regulation No. 05/2017 - February 2017) Operating in December 2018 Primary Activities: - Energy Industry Petrochemical and other chemical Industry -Palm Oil Industry - Logging Industry - Logistic 2. Sei Mangkel SEZ Simalungun, North Sumatera (Government Regulation No. 29/2012- February 2012) Operating in January 2015 Primary Activities: - Palm oil Industry Rubber Industry - Tourism - Logistic 3. Batam Aero Technic SEZ Batam, Riau Islands (Government Regulation No. 67/2021- June 2021) Primary Activities: - MRO Industry (Maintenance, Repair, Overhaul) 4. Nongsa SEZ Batam, Kepulauan Riau (Government Regulation No. 68/2021- June 2021) Primary Activities: -IT-digital - Tourism 5. Galang Batang SEZ Bintan, Riau Islands (Government Regulation No. 42/2017 - October 2017) Operating in December 2018 Primary Activities: - Bauxite Industry - Logistic 11. Singhasari SEZ Malang, East Java (Government Regulation No. 68/2019 September 2019) Primary Activities: - Tourism - Digital Technology SLOC Malacca 12. Mandalika SEZ Central Lombok, NTB (Government Regulation No. 52/2014 - June 2014) Operating in October 2017 Primary Activities: Tourism 11 ASLS-I 6. Tanjung Kelayang SEZ Belitung, Bangka Belitung (Government Regulation No. 06/2016- March 2016) Operating in March 2019 Primary Activities: Tourism 7. Tanjung Lesung SEZ Pandeglang, Banten (Government Regulation No. 26/2012 February 2012) Operating in February 2015 Primary Activities: Tourism ALRI-II 13 13. MBTK SEZ East Kutai, East Kalimantan (Government Regulation No. 85/2014 October 2014) Operating in April 2019 Primary Activities: - Palm Oil Industry - Energy Industry - Logistic 14 ALKI-III 8. Lido SEZ Bogor, West Java 17 15 16 (Government Regulation No. 69/2021 - June 2021) Primary Activities: - Tourism - Creative Industry ALKI-IN B 14. Palu SEZ Palu, Central Sulawesi (Government Regulation No. 31/2014 May 2014) Operating in September 2017 Primary Activities: -Base Metal Industry - Logistic ALKI-C 9. Kendal SEZ Kendal, Central Java (Government Regulation No. 85/2019 December 2019) Operating in May 2021 Primary Activities: - Textiles and Clothing Industry - Furniture and Toy Industry - Food and Beverage Industry. - Automotive Industry - Electronic Industry - Logistic 15. Likupang SEZ North Minahasa, North Sulawesi (Government Regulation No. 84/2019 December 2019) Primary Activities: Tourism 16. Bitung SEZ Bitung, North Sulawesi (Government Regulation No. 32/ 2014 May 2014) Operating in April 2019 Primary Activities: - Coconut Processing Industry - Fishery Industry -Logistic 17. Morotai SEZ Morotai Islands, North Maluku (Government Regulation No. 50/ 2014 June 2014) Operating in April 2019 Primary Activities: - Fishery Industry - Tourism - Logistic 18. Sorong SEZ Sorong, West Papua (Government Regulation No. 31/2016 - August 2016) Operating in October 2019 Primary Activities: - Nickel Smelter Industry - Palm Oil Industry - Forestery (Sagol Industry - Logistic 10. Gresik SEZ Gresik, East Java (Government Regulation No. 71/2021 - June 2021) Primary Activities: - Metal Industry - Electronic Industry - Chemical Industry - Energy Industry - Logistic Operating SEZ Ready to Operate SEZ Industrial SEZ Tourism SEZ 3#4Investors Opportunity in Indonesia Palm Oil Industry Rubber Industry Forestry (Sago) Industry Energy Industry Fishery Industry Bauxite Industry Coconut Processing Industry Nickel Smelter Industry Petrochemical Industry Base Metal Industry Electronic Industry Logistics Automotive Industry MRO Industry Furniture & Toy Industry Textile & Clothing Industry Food & Beverage Digital Technology Tourism Industry Industry#5AA Investment Opportunities as Tenant Invest in SEZ Business Sectors (Industry: palm oil, rubber, petrochemical, agricultural, fishery, manufacturing, logistic, tourism, etc) Joint Venture with the SEZ Developer as an Investor Business Model Investment Opportunities as Developer Joint Venture with the SEZ Developer in operating and managing SEZ 愛 Investment Opportunities as Infrastructure Provider Invest to provide SEZ Infrastructures: On-site infrastructure (power plant, water treatment plant, waste water treatment plant, etc) Regional infrastructure or supporting infrastructure in the surrounding SEZ (road, port, airport, railway, electricity, water supply, gas, etc) 5 in#6SPESIAL ECONOMIC ZONE IN INDONESIA 59,0% 22,7% 18,3% Background of SEZ Development Economic growth of Indonesia have been highly centered around Java island with 59% contribution to national GDP. To distribute economic growth to other regions of Indonesia would require not only vast infrastructure development but also new economic growth pole Initiated by Goverment Large Expense Initiated by Goverment Incentives Are Misdirected FREE TRADE ZONE KAPET Conflict Of Interest Low Commitment From Municipal Goverment Location and Industry Sector Doesn't Match Unprofesional operator SPECIAL ECONOMIC ZONE Increase Private Sector Participation Incentives Are Given By Central And Municipal goverment Freedom to Choose The Location Freedom to choose Industries To Be Develope#7Maloy Batuta Trans Kalimantan (MBTK) SEZ has the status of Special Economic Zones (SEZ) recently launched by the Indonesian government in 2014. It has benefits for investors in terms of fiscal incentives and non-fiscal. SEZ is SEZ 8th defined by Government Regulation No. 85 In 2014, SEZ MBTK consists of industrial zones, logistics, and export processing. Location Maloy Batuta Trans Kalimantan SEZ is located in the East Kutai Regency, East Kalimantan Province. LOKASI Kabupaten Kutai Timur, Provinsi Kalimantan Timur | Pelabuhan Samarinda LOCATION Pulau Kalimantan Kota Balikpapan Kota Samarinda KEK Maloy Batuta Trans Kalimantan Kota Sangatta X APT Pranoto International Airport SAMS Sepinggan Airport#8LOKASI Kabupaten Kutai Timur, Provinsi Kalimantan Timur Land: • • Total Area KEK MALOY : 557,34 Ha Controlled Area • • : 509,496 Ha Certificatedi/Status: HP : 509,496 Ha • Main Activity: • Palm Oil Processing Industry • Wood Processing Industry • Logistics, etc Infrastructure in the region Invesment Plan s/d Thn 2025 : Estimation of regional Development Invesment Rp 2,65 Triliun (Tahap I) Development Realization sd. 2021 (APBN + APBD) 1,69 T Legal: Government Regulations No. 85 Th. 2014 Operate: 1 April 2019 Roads, water supply (200 litres per sec, telecommunication, electricity (30 MW), firefighters, security facilities Infrastructure Roads and international port Regional Support Local Government Support Tax incentives and levies, delegation of authority LOCATION Pelabuhan Samarinda Pulau Kalimantan KEK Maloy Batuta Trans Kalimantan Kota Sangatta APT Pranoto International Airport Kota SAMS Sepinggan Airport Samarinda Kota Balikpapan#9MBTK special economic zone Advantages XXX WW ALKI I SEZ MBTK ALKI III C ALKI III B ALKI II ALKI III Surrounded by rich natural resources OO such as oil palm, oil, gas, minerals, and coal Has planned the construction of an international port and handling and improved access roads to support the smooth supply of raw materials and distribution of industrial products of East Kutai. H Located on the path Indonesian archipelagic sea lanes II (ALKI II) which is the path of international trade sea K East Kalimantan is prepared the SEZ as the central processing of palm oil and its derivatives, industrial minerals, gas, coal, tourism.#10MBTK special economic zone No SUBJEK 1 CORPORATE INCOME TAX (PPh) Fiscal Incentives Fasilitas/Insentif ■ Tax Holiday 100% for Primary Activities. Duration of the facility depending on value of investment ■ Tax Allowance for other than Primary Activities and for Primary Activities that is not eligible to get Tax Holiday facility 2 VALUE ADDED TAX (PPN) 3 SALES TAX ON LUXURY GOODS 4 CUSTOMS AND EXCISE 5 DEFERRED IMPORT DUTIES 6 LOCAL TAX 7 GOODS TRAFFIC 8 SPECIAL FACILITIES FOR TOURISM SEZs VAT is not collected on: : ■ Delivery of Tangible Taxable Goods from Other places within the Customs Area(TLDDP), FTZ, and bonded zone (TPB) ■ Import of Consumer Goods to Tourism SEZ ⚫ Delivery of Taxable Services (JKP) and/or Taxable Goods (BKP) in the same SEZ or other SEZS Delivery of Taxable Goods and/or Taxable services originating from maintenance, repair, and overhaul (MRO) Tenants not collected - Exemption of Import Duty and not collected Tax in the Context of Import (PDRI) for the import of capital goods and consumption goods in the Tourism SEZ . Exempt from excise for raw materials or auxiliary materials that are used to produced finished goods which are not excisable goods Deferred import duties and import tax not collected for tenants who have completed construction/development ■ A tariff of 0% import duty is applied for finished goods which have 40% of local content (TKDN) Reduction of local tax and / or local retribution by 50% - 100% ■ Prohibited items: prohibited for export / import Restricted items: Imports of goods to SEZ have not been subject to restrictions ⚫ Stores that are located within Tourism SEZs can participate in the VAT refund scheme for foreign passport holders ⚫ Exemption for Sales Tax on Luxury Goods can be granted for the purchase of a residential home or residence in the Tourism SEZ וח#11MBTK special economic zone Non-Fiscal Incentives NO SUBJECT 1 NO NEGATIVE LIST 2 IMPORT LIMITATION IS NOT APPLIED 3 4 5 LO EASE OF DOING BUSINESS FOR PERMIT & LICENSING FOREIGN PROPERTY OWNERSHIP IN TOURISM SEZ SPECIAL REGULATION FOR LABOUR AND EMPLOYMENT 6 SIMPLE IMMIGRATION FORMALITIES 7 8 9 EASINESS FOR LAND TITLING PROCEDURES INTEGRATED INFRASTRUCTURE SUPPORT FROM GOVERNMENT ENVIRONMENTAL CONVENIENCE 10 OTHER INCENTIVES AND FACILITIES Incentives and Facilities for Investment in SEZs The government widely gives support with fiscal and non-fiscal incentives such as tax holiday, tax allowance, ease of custom services, immigration, labor, land and property access. Through Online Single Submission investors can start their business almost immediately in SEZs. As required the government will support business in SEZS with necessary infrastructure.#12MBTK special economic zone Corporate Income Tax Categories TAX HOLIDAY TAX ALLOWANCE Applied in all SEZ Remarks 10 years zero CIT for minimum investment of For Developers USD 6.9 million (IDR100 billion) • 10 years zero CIT for minimum investment of USD6.9 million (IDR100 billion) • 15 years zero CIT for minimum investment of USD34.5 million (IDR500 billion) • 20 years zero CIT for minimum investment of USD67 million (IDR1 trillion) • Reduction in net income of 30% of the amount invested, prorated at 5% for six years • Losses carried forward for 5 years and could be extended to 10 years • Accelerated depreciation and amortization Dividends tax 10% or lower for treaty countries For Tenants Diterapkan untuk semua industri#13MBTK special economic zone Value Added Tax and Luxury Tax Applied in all SEZ Categories Value Added Tax • Delivery from domestic territory • VAT and Luxury Tax not collected for • Delivery of taxable goods • Delivery of taxable services: constructions, contract manufacturing, and repairs (during development stage) Remarks Applied for all industries 13#14MBTK special economic zone Categories Import Applied in all SEZ Capital goods: Exemption of import duty • VAT import not collected Imported Goods • Luxury tax not collected Import income tax not collected Raw materials: • Deferred import duty VAT import not collected • Luxury tax not collected Import income tax not collected Remarks Applied for all industries Applied for all industries 14#15MBTK special economic zone Non Fiscal Incentives (1) Categories Export obligation Export obligation Domestic market sales Limitation of goods. One Stop Service None Applied in all SEZ Remarks Applied for all industries Full foreign ownership is Applied for all industries allowed (negative list are not applied in SEZ) Zero percent duty for products Applied for all industries with at least 40% local content Limitation of goods applied to enter SEZ Provided by the Administrator not Applied for all industries SEZ Applied for all industries#16MBTK special economic zone Non Fiscal Incentives (2) Categories Immigration Land Titling Applied in all SEZ Special treatment for foreign workers • VOA users could be extended up to 5 times • Temporary resident status. for foreign workers and their families • Permanent resident status for Property holder and senior foreigner • Right to Use Title up to 80 years Building Right Title up to 80 years • Special accelerated procedures Remarks Applied for all industries Applied for all industries#17Development Play Industry IPA Storage tank Power Plant Office Support Zone Development Main Industry Oleochemical Zone By Product Zone STAGE 1 Area ±509,496 Ha Biodiesel Zone Care Product Zone Other Industrial Zones Food Industry Zone IPAL Masterplan SEZ MBTK#18MBTK special economic zone ZONE 1: BASIC OLEOCHEMICAL ■ Biodiesel Basic chemicals ✓ Fatty acids ✓ Fatty alcohols DOWNSTREAM ZONE 2 : FOOD INDUSTRY ◉ ◉ Cooking oil Margarine and Shortening Red palm oil Palmega ◉ ✓ Purified glyserin ◉ Palm Frying Shortening ◉ Palm Ghee / Vanaspati ◉ Beta Carotene ■ ■ ZONA 3 : NON FOOD INDUSTRY ■ ■ " " Personal care products: soap, cosmetics, skincare, etc Home care products: Detergent, etc Surfactant Palm by-products Briquettes and charcoal Animal feeds ZONE 4 OTHER INDUSTRIES - Machinery Packaging/ Bioplastic " Compost " Carbon active ZONE 5: SUPPORTIN FACILITIES ☐ ☐ SEZ management office Firefighter office Police office Clinic/Hospital ■ Particle board Banks/Financial services ☐ Hotel ◉ Rusunawa/apartment/living quarters Shops ☐ Mosque ☐ General retail facilities, etc#19CO O O O 00 000 00000 O 00 AREA 964 WTP P+14900 +15700 45B 46B TPS 40B 41B 42B 43B 448 KAVLING (A) 5 HA KAVLING (B) 3.5 HA KAVLING (C) 0.5 HA Green Zone 1A 3A 5A 7A 9A 11A 13A 15A + 2A 4A BA 8A 10A 12A 14A 17A PELABUHAN TRANDM 19A 0000000 000000 1B 38 5B 78 98 11B 138 158 17B 193 21B 16A 1AA 21A 22B B2 48 68 88 108 128 20A 1-48 23A 168 188 246 206 26B 22A 238 89 ha 1112 13 14 15 16 17 18 288 STP 368 30B 19 20 21 22 24 25 26 27 25 29 G 258 328 33 348 LIN 278 37 MBTK SEZ masterplan based on land area 29B 31B 338 + 35 99 39 24A Masterplan SEZ MBTK#20PEMERINTAH KABUPATEN KUTAI TIMUR KANTOR ADMINISTRATOR KAWASAN EKONOMI KHUSUS MALOY BATUTA TRANS KALIMANTAN (KEK-MBTK) AMERNASIONAL KAWASAN EKONOMI KHUSUS-MALOY TRANS KALIMANTAN CAMATAN KALIORANG KABUPATEN KUTAI TIMUR PROVINSI KALIMANTAN TIMUR Call Centre: 0812 5745 2544 Email: [email protected] Licensing facility for business establishment, operation and development Management and monitoring operationality of SEZ SEZ operational reporting annually to SEZ council ADMINISTRATOR OFFICE#21DEVELOPER'S OFFICE MBTK SEZ INFRASTRUCTURE TELECOMMUNICATION ELECTRICITY 21#22WATER TREATMENT PLANT MBTK SEZ INFRASTRUCTURE A ACCESS ROAD FAC 22 22#23MULTIPURPOSE MALOY SEAPORT Capacity Lenght Depth Liquid bulk carriers with capacity 65.000 DWT 100 m 20 m MARINA 1812 "Multipurpose Maloy Seaport is located on the SLOC 2 route strategically as a hub between the western and eastern regions of Indonesia and also integrated with MBTK SEZ" 23#24SH-02 677310 T-38211,271 BK-OT 914-02 52 6006 BERS E 60 MALOY PORT -15 PH-01 S-1 BH-01 X=602651,887 Y 88857,880 Z=-15.00#25MBTK special economic zone Simple Procedure Renting Potential investor survey the location of SEZ MBTK area. After discussing and finding an agreement, the investor enters into an agreement with government and developer Survey 01 04 Agreement Apply For Rent 02 03 Discussion Potential investor apply for a written lease accompanied by supporting documents as referred to in: • Prospective tenant data, background, term, and other reqruitmen for rent Company profile Estimated area of land to be leased, and other reqruitments deemed necessary to be fulfilled Potential Investor hold further discussion regarding invesments that will be made with government and developer#26MBTK special economic zone Thank You