Site hosted by Build your free website today!


Fungsi Ekonomi

Konsulat Jenderal RI Jeddah - Saudi Arabia

Economic Affairs

Indonesian Consulate, Jeddah - Saudi Arabia



A. Industrial Estates

Industrial estates are available in almost all provinces of Indonesia. The large scale industrial estates are found in Jakarta, West Java (Bekasi, Karawang, Purwakarta), Banten (Tangerang, Serang), Central Java (Semarang, Cilacap), Yogyakarta (Piyungan), East Java (Surabaya, Gresik, Sidoarjo, Pasuruan, Probolinggo), North Sumatera (Medan), West Sumatera (Padang), Lampung, Riau (Batam Island, Bintan Island), South Sulawesi (Makassar) and East Kalimantan (Bontang).

B. Bonded Zones

Bonded Zone means a zone with particular boundaries within which processing of goods and materials, construction designing, engineering activity, sorting, preliminary inspection, final inspection and packing of imported goods and materials from the other areas within Indonesian Custom Territory (Daerah Pabean Indonesia Lainnya/DPIL) are carried out with purpose mainly for export.

On the importation of goods and/or material for the production process in Bonded Zone certain facilities can be granted such as postponement of import duties, excise free, value added tax (PPN), sales tax on luxury goods and income tax of article 22 shall not be collected

Foreign Investment (PMA) as well as Domestic Investment (PMDN) Companies, Limited Companies of Non PMA/PMDN and Cooperatives with legal status are able to obtain approval as an Operator of Bonded Zone and Companies Operating in Bonded Zones.

Operator of Bonded Zone (Penyelenggara Kawasan Berikat/PKB) shall be a limited company, a cooperative with legal status or a foundation which owns, controls, manages and provides facilities and infrastructure in the interest of other parties in Bonded Zone he operates on the basis of an agreement.

Meanwhile, Companies Operating in Bonded Zone (Pengusaha Didalam Kawasan Berikat/PDKB) shall be limited companies or Cooperatives undertaking a processing of goods and materials in a Bonded Zone.

Up to February, 2003 there are 15 Operators of Bonded Zone (PKBs) spread in Jakarta (Cakung, Marunda and Tanjung Priok operated by government), Bogor, Purwakarta, Karawang, Semarang, Pasuruan, Medan, Mojokerto, Bintan Island, Aceh, and Batam Island and 426 Companies Operating in Bonded Zone (PDKBs).

C. Banking, Insurance and Leasing

Bank Indonesia (BI) as an independent state institution is fully autonomous in formulating and implementing each of its task and authority as stipulated in the new Central Bank Act, Law No. 23/1999. As a central bank, BI has a single objective of attaining and maintaining stability of the rupiah value. In the pursuit of the objective, it is supported by 3 sectors of task which are formulating and implementing monetary policy system, regulating and ensuring a smooth payment system, developing sound banking and credit systems by building and supervising banks.

BI does not perform the commercial activities of banks in general, of commercial banks as well as of rural credit banks. Therefore, BI cannot serve saving and checking accounts as well as deposits from the public. In addition the public cannot directly request for credit from BI.
(Online :

Relating to foreign investment, Bank Indonesia plays the following roles :
a. Issuing a letter of clearance for final draft loan agreement of Foreign Direct Investment (FDI) companies.
b. Monitoring the FDI accounts.
c. Ensuring that the capital for FDI projects originates mostly from offshore.
d. Registering all offshore loans received by FDI companies.

To support business activities in Indonesia, there are foreign banks operating in Indonesia such as ABN AMRO Bank, American Express Bank, Bank of America NA, Citibank NA, Deutsche Bank AG, JP.Morgan Chase Bank, Standard Chartered Bank, The Bangkok Bank Comp. Ltd., The Bank of Tokyo-Mitsubishi Ltd., The Hong Kong and Shanghai Banking Corp.
Besides there are 5 (five) state-owned banks, namely PT. Bank Ekspor Indonesia (Persero), PT.Bank Mandiri (Persero), PT.Bank Negara Indonesia (Persero),Tbk., PT. Bank Rakyat Indonesia (Persero), and PT.Bank Tabungan Negara (Persero). In addition, there are 36 (thirty six) Devisa National Private Banks, 40 (forty) Non Devisa National Private Banks, 26 (twenty six) Region Development Banks, and 24 (twenty four) Joint Ventures Banks.

Other financial institutions include 176 insurance companies both international and national, and 145 leasing companies in Indonesia.

D. Stockmarkets

According to the Law concerning the Capital Market, the guidance, regulation, and day-to-day supervision of capital market is provided by the Capital Market Supervisory Agency (Badan Pengawas Pasar Modal/Bapepam). Also, it implements an orderly, fair, and efficient capital market activity and protect the interest of investor and public.

The functions of Bapepam are:
1. Drafting Capital Market rules and regulations;
2. Guiding and supervising any Person granted business license, approvals, registration and other person related to Capital Market;
3. Establishing disclosure principles for Issuers and Public Companies;
4. Settlement of the objection by Person imposed sanction by Stock Exchange, Clearing Guarantee Corporation, and Central Securities Depositary;
5. Establishing Capital Market accounting standards;
6. Protecting technical implementation of Bapepam main function according to the policy required by Minister of Finance;
7. In implementing the function, Bapepam has the authority to grant licenses, approvals, effective registration to capital market participants and provide effective registration statement;
8. Up to present Bapepam has granted business licenses to 2 exchanges namely The Jakarta Stock Exchange (JSX) and The Surabaya Stock Exchange (SSX), 117 Underwriters, 207 Broke-dealers and 70 Investment Managers.

E. Representative Office

A foreign company may establish a representative office in Indonesia in one of province capitals. Its activity is limited to supervising and coordinating the business of its principal and branches. This office is not allowed to make any business transaction with companies or persons in Indonesia either for export or import or domestic trading.

The representative office can :
a. Obtain work permits for expatriate managers.
b. Obtain multiple entry visas for its expatriate personnel as well as exemption from exit-tax (SKFLN).

The representative office is led by one or more foreign or Indonesian citizens who are appointed by a foreign company or joint foreign companies as their representatives with the intention of :
a. Handling the company or its affiliates concerns, and or
b. Preparing the establishment and development of foreign direct investment companies, in Indonesia or in other countries and Indonesia.

A. Electricity

Installed capacity
Installed capacity and the generating units of the state-owned electricity enterprise/Perusahaan Listrik Negara (PLN) as Holding and sister companies totaled 21,058.83 MW and 4,173 units , which was 15,494 MW (74%) concentrated in Java. The biggest installed capacity generating unit is steam power plants Suryalaya in West Java (600 MW). Total installed capacity comprised of Steam power plants 6,900 MW (33%), Combine cycle power plants 6,863 MW (33%), Diesel power plants 2,585 MW (12%), Hydropower plants 3,015 MW (15%), Gas turbine power plants 1,225 MW (6%), and Geothermal power plants 380 MW (2%).

Peak Load
Peak load totaled 16,314 MW, while interconnection system peak load Java-Bali reached 12,581 MW. In 2002, electric power totaled 88,355 GWh, increased 4.9% compared with previous year. From this figures, 21% produced by PLN Holding, and 79% produced by the sister companies, namely PT. Indonesia Power, PT. PJB and PT. PLN Batam.

Electric power percentage to primary energy are: Natural gas 25,853 GWh (29%), coal 29,330 Gwh (33%), oil 19,539GWh (22%), hydropower 10,561 GWh (10%), and 2,982 GWh (3%) comes from geothermal. PLN total production (includes purchasing from outhouse sourcing) in 2002 obtained 101,654 GWh. Electric power purchased from outhouse is 13,299 GWh (13%). From the total purchased electric power, the biggest of 4.040 GWh (30%) comes from PT. Paiton Energy Company, and 4,342 GWh (33%) from PT. Jawa Power in East Jawa.

Electric power selling
Electric power selling to industrial group increased 5%, meanwhile household, business and others has respectively increased 9%, 8% and 4%. The amount of customer at the end of 2002 was 29,827,728. Basic Electricity Tariff in July - September 2003 for industry usage 2200 Va - 14 KVA is set Monthly Subscription Rp. 32,200 /kVa/month, Block I < 80 hours usage: Rp.455/kWh and Block II: > 80 hours, next usage Rp.460 /kWh.
(online :

B. Telecommunication

Telecommunication services are provided by state-owned enterprises, consisting of PT.Telkom, which provides domestic telephone and telegraph services, and PT. Indosat which provides international telecommunication services.

Perusahaan Perseroan (Persero PT.Telekomunikasi Indonesia Tbk. ("TELKOM) is a majority state-owned company and it is the principal provider of fixed line and cellular services in Indonesia. The company provides a wide range of telecommunication network and telecommunication services including fixed-line, mobile interconnection network, data and internet services, and other telecommunication services.

Fixed-phone telecommunication services in 7 regional divisions covering all of Indonesia mainly for local and domestic long-distance services. Fixed-phone subscribers pay one time installation charges, ongoing monthly subscription charges, and usage charges for local and domestic long-distance services. Usage charges are generally uniform nationwide and based on call distance, call duration and time band. In addition, subscribers are provided with a number of value added features, which are billed on a monthly basis, such as voicemail and information services.

Total number of fixed-lines in service in 2002 were, 5,965,568 for residential customers, 1,361,810 for business customers, 19,788 for social customers, and 402,869 for public telephones, includes kiosk phones.

Another Indonesian state owned company in the field of telecommunication services is PT. Indosat (Persero) Tbk, which connects Indonesia with more than 250 countries in the world. It serves the switching and non-switching international telecommunication services. The switching telecommunication services are phones, telex, telegrams, data-packet communications, facsimiles, corporate digital networks and Inmarsat Global System. The non-switching telecommunication services are international leasing circuit, international video conference, live television transmit network and frame relay. The main Indosat service is The Direct International Connection (SLI) with the access-code 001. Indosat will transform the main activity from international operator to Full Network and Service Provider (FNSP) by adapting strategy "4 in 1", namely the development of Backbone, Fixed Line Access, Mobile and Wireless, Internet and Multimedia.

PT. Excelcomindo Pratama (Excelcom) was established in November 1995. The company is a joint venture company and is the third cellular telephone operator adopting the GSM (Global System for Mobile Communications) standard. On October 1996, it officially launched its mobile phone service to Indonesia public. The company have built more than 600 BTS's (Base Transceiver Station) predominantly distributed in Jakarta and in many of the primary business around Java, Bali and Lombok. It has also installed over 4,000 kilometers of high-grade fiber optic cable stretching from Jakarta to Surabaya as part of the strategy to be the best cellular transmission network in Indonesia.

C. Transportation

1. Road
Indonesia's road network totaled 268,030 km including 103,430 km of roads in Sumatera, 54,301 km in Java, and 5,653 km in Bali. Most cities is Java, Sumatera, Sulawesi and Bali are connected by highways or secondary roads.

Nearly 90% of passenger transport and 50% of cargo transport are made by road. Trunk roads are well developed and new toll highways are being developed by private-sector investments.

2. Railway
Railways in Indonesia have a total track length 6,482 km in Java and Sumatera. Railways are used for freight transportation and long-distance passenger services. In the Jakarta-Bogor-Tangerang-Bekasi (Jabotabek) region railways are used for commuter services.

3. Seaport
Indonesia has 2,061 ports, among others have a container facility such as in Belawan, Batam, Tanjung Priok, Tanjung Emas, Tanjung Perak and Makassar. Other strategic ports in Indonesia are Dumai, Lhokseumawe, Pekanbaru, Panjang, Palembang, Teluk Bayur, Pontianak, Jambi, Banjarmasin, Benoa, Tenau, Sampit, Balikpapan, Samarinda, Bitung, Ambon and Sorong.

The largest ports, Tanjung Priok, serves the Jakarta area and handled 1,431,753 Twenty Feet Equivalent Units (TEU's) container in 2000. Tanjung Perak Container Terminal accommodated 238,567 TEU's in 2000.

4. Airport
Among 150 airports in Indonesia, there are international airports including Soekarno-Hatta and Halim Perdanakusuma in Jakarta, Husein Sastranegara in Bandung, Adisumarmo in Surakarta, Juanda in Surabaya, Ngurah Rai in Bali, Sultan Iskandarmuda in Banda Aceh, Polonia in Medan, Hang Nadim in Batam, Sultan Syarif Kasim II in Pakanbaru, Tabing in Padang, Kijang in Tanjung Pinang, Supadio in Pontianak, Sepinggan in Balikpapan, Hasanuddin in Makassar, Sam Ratulangi in Manado, Frans Kaisiepo in Biak, and Selaparang in Mataram.

Among domestic airports are Sultan Mahmud Badaruddin II in Palembang, Adisutjipto in Yogyakarta, Syamsudin Noor in Banjarmasin, Ahmad Yani in Semarang and Pattimura in Ambon.


< Back

Updated: 02-Aug-06 02:24:46 PM

Copyright (c) 2006 by S.Yudi - Economic Affairs