Wednesday, May 30, 2007

East Kalimantan History

There is evidence of human habitation on Borneo for over 50,000 years, with continuous occupation until 250 BCE. Four thousand years ago, the Proto Malay arrived via the Malay peninsula and populated the western Malay archipelago, Indonesia and the Philippines. The Proto-Malay were the ancestors to Borneo's diverse peoples today known collectively as Dayaks, and each Dayak society developed in adaptation to its particular environment. Coastal Dayaks relied on fishing as their economic base, while their neighbors in interior Borneo relied on swidden (shifting plot) agriculture and hunting and gathering. While self-sufficient, the communities interacted with each other through trade, war, inter-marriage, and head-hunting.

Based on history note, the eldest Kingdom of Hindu in Indonesia is reside in this area. This conclusion based on note of inscription that being found in 'Lembah Wahau', in north of Tenggarong that coming from 5 century. This eldest Empire of Hindu had mentioned that has done contact with India and Sriwijaya Kingdom. The substitution of this Hindu Empire is Sultanate Kutai that emerging at third century with its capital of in Tenggarong. Kutai then become the center commerce of Denting in this region and Tenggarong become the biggest and busier town in East Kalimantan, finally shifted by Samarinda and Balikpapan at 20 century.

This province known as the location of the oldest Hindu kingdom in Indonesia. The Kingdom of Kutai with its king Mulawarman. The existence of this kingdom is proved by a stone manuscript (Indonesian : Prasasti) which is now kept ini the National Museum, Jakarta. The manuscript is written in Pallawa alphabet and Sanskrit language. The replica of this manuscript can be seen in the Governor Office, Samarinda.

Trade in the South China Sea commenced as early as the second century BCE , linking Borneo to a network that extended to China and India. Animal skins, parts, precious woods, black pepper, and tree resins were traded for large Chinese porcelain pots, textiles, and glass beads from India. The arrival of Islam led to the establishment of Muslim kingdoms along Borneo's coasts, the largest of which was the sultanate of Brunei. By the end of the 1600's, the sultan of Brunei controlled most of Borneo's west coast. Coastal Islamic sultanates of Malay ethnicity gained power through maritime commerce and imposed a system of economic oppression on the Dayaks.

The arrival of Portuguese and Spanish traders, followed by the Dutch in the early 1600s and the British in 1665, signified the beginning of European intervention in East Borneo. Intent on creating a trade monopoly, the European powers wrested control from Islamic sultanates and established presences in the region. In the 1800s, the Dutch and British emerged predominant, with the former establishing a presence in the southern part of the island (Kalimantan) and the latter establishing protectorates in Sabah, Sarawak, and Brunei on the north coast. Dutch and British expansion was epitomized by violent warfare against the Dayaks and oppression of Chinese settlers who had migrated to work in the mines.

The Japanese occupation of East Borneo during World War II was also marked by brutality and violence. Japan attacked Tarakan afterwards to Balikpapan, to get kerosene. Afterwards was in charge of all of Indonesia. Indonesia gained independence from the Dutch in 1949, after four years of intense guerrilla warfare.

East Kalimantan was known as one of main oil producer area in Indonesia. The exploitation of Oilfield in this area have been done since 1897 started from delta area Mahakam River, while distillation area of oil is focused in Balikpapan. In 1913, the oil production in East Kalimantan can yield half Indonesia's production oil (when below Dutch power) and Balikpapan reach it's glorious from the abundance of oil production in this Mahakam River area. The state-owned petroleum company Pertamina has been operated in the area since it took control oil refinery from the Royal Dutch Shell company in 1965.

Infrastructure In East Kalimantan

Land Road
In 2001/2002, the existing road network covered 16,999.04 km, consisted of 3,031.41 km state roads, 6,031.26 km provincial roads, 5.201,4 km regencies/cities roads, 1,479 km connecting/corridor roads (which is connecting this province to the bordered area and the north axis) and 1,255.97 km countries roads. In addition, people can also utilize river transportation in this province.

East Kalimantan province has 53 airports of which classified into 1 international airport, 15 domestic airports, 16 commercial airports and 37 pioneer airports. The biggest one is Sepinggan airport that has 2500-m length and 45-m width runway. It can serve Boeing, Air Bus and MD 11 airplanes. Sepinggan airport is the second most congested airport, less than Sukarno Hatta international airport in Cengkareng, Jakarta. Meanwhile, other airports were only available to serve the airplanes of F 28, D.737, C-212, and ATR-42. In 2001, as much as 1,052,640 passengers arrived at and 963,319 people departed from these airports Almost of all over regencies/cities have airports.

2001/2002, the available telecommunication facilities covered 288,386 lines in 13 regencies/cities. Telecommunication network was divided into 3 regions; consisted of Balikpapan, Samarinda and Tarakan regions. From the total lines, as much as 246,679 lines were connected and utilized in these three region of which the detail were 102,919 lines in Balikpapan, 108,744 lines Samarinda and 35.016 lines in Tarakan. Many private companies operate the cellular telephone networks such as Telkomsel, Satelindo, Telesera, P.T. Dayamitra Telekomunikasi, P.T. Paktel and Pro XL.

Energy and Electricity
In 2002, there were already electrical powers with the installed capacity of 356 MW and 200 KW, supplied by State Electrical Company, electricity based on diesel power (296 Mw), electricity based on steam power, electricity based on machine power (200 KW) and electricity based on diesel power (reached 680 MW, supplied by 10 companies).

In 2002, gas production reached 1648 billion feet cubic.

Clean (drinking) Water
Amounted to 9 companies in the form of Regional Owned Companies have operated water supplies in the East Kalimatan province. The companies utilize many water sources to produce drinking water. As much as 9 installation of water treatment utilize river supplies, an installation of water treatment utilizes lake supply and an installation of water treatment utilizes dam supply. Total distributed consumption reached 54,423,000 m3 in 2000.

Supporting Infrastructure

Bank and Insurance
At present, there are five governmental banks, a representative of Central Bank, seventeen (17) private banks, a foreign bank and four insurance companies (Bumi Putra, Jiwasraya, AIA, and Jasindo)

There are 17 star hotels with capacity of 1,755 rooms and 2,777 beds and 297 non-star hotels with capacity of 3,458 rooms and 5,618 beds.

Health Facilities
The available health facilities are, for instance, 24 government and private hospitals, 731 Public health centre (Puskesmas), Public clinics and medical laboratories spread at 13 regencies/cities, and other health facilities such as 135 pharmacies, 40 drug stores and other private polyclinics.

Education and Training
Many educational facilities owned by government and private are available, comprises 2,044 elementary schools, 404 junior high schools, 150 senior high schools, 67 vocational schools, 14 polytechnics, 3 academies and 24 universities. This province has also Labour training centres, Industrial training centres, etc.

Trade Centres
As much as 37 supermarkets/malls are found in all regencies/cities of East Kalimantan province. In addition, about 256 traditional markets still exist in 13 regencies/cities.

Natural Resources in East Kalimantan

East Kalimantan province has potential areas that can be developed as food crop farming. The area was about 2.6 million ha, consisted of 856,194 ha wet rice field and 1,743,885 ha dry field. The areas have not been optimally cultivated and have been reserved as potential areas for food crop farming. These areas spread out in many regencies/cities. The large reserved area is expected to be potential farming areas that can be developed not only to fulfil the regional and national needs but also to provide export commodities. East Kalimantan province has adequate infrastructures to support this program. In addition, it is benefited by its strategic position in international trade lines. The main farming commodities are rice (wet field and dry field), soybean, corn and mung bean that are cultivated in large area as follows:

In 2001, from the available area of 300,943.50 ha, there were only 292,139.50 ha area cultivated. This activity has absorbed about 188,622 farmers. The plantation areas increased approximately 6.88%/year as shown at the following table:

The development of plantation has been executed through the implementation of the Plantation Implementation Unit (UPP) pattern, the People Nucleus Plantation (PIR) pattern, Self-supporting/partial pattern and the large plantation both owned by the Government (PTPN XIII) and private companies.

Animal Husbandry
The cattle's population in this province is potential to be developed, due to its large areas and the market demand that continuously increased. In order to meet the demand of cattle and poultry meat, it must be brought into East Kalimantan province from the outside region such as South Sulawesi, Central Sulawesi, East Java and Bali. In spite of the declining population of many kinds of cattle's, its population has developed in such a better figure during the recent three (3) years (2000-2002) as indicated in the table below:

Seawaters potencies cover 4,484,283 ha, spread out along Makasar Bay and sea of Sulawesi Which have a large potential fisheries. The total potential production is about 341.000 ton/year, however, the beneficial rate reached only as much as 133,273 ton/year or 30% from the existing potencies. There is a big opportunity to develop fisheries sectors in this province. The sustainable production of fisheries sectors (sea, public waters, salty waters and fresh waters) reach about 339,998 ton/year. While the real production was 154,341.3 ton. The following table presents fish production for three years (2000-2002).

East Kalimantan province has a total forest area around 20.62 million hectare, comprises 6 types of forests namely protected forest, natural conservation and tourism forest, limited production forest, converted production forest and educational/training forest. The forest productions hold the important role to the regional development. Besides its importance function as a forest, it has a high economic value come from commercial valuable plants such as timber trees, lime trees, kerning trees, bangkirai trees, nyatoh trees, ulin (very hard wood) trees, apathies tress, mangrove trees, perupuk trees etc. In addition, many commodities are also produced from East Kalimantan forests such as resin, bees honey, orchid flowers, crocodile leather, bird's nest, eaglewood, tengkawang trees (Dipterocarpaceae sp), tunjuk langit roots and shingle roof. Up the end of 2001, the existing production forests in East Kalimantan province which have been managed by the third parties converted 83 Forest Management Concession (HPH) with area of 5,815.776 ha and 16 Industrial Plant Forests (HTI) with the area of 814,803 ha. The log production in the period of 2000/2001 reached 1,511,026.4 m3 TPTI and 3,196.420.8 m3/IPK.

Mining sector in East Kalimantan province covers oil and gas and non-oil and gas. Oil and natural gas contribute an important role to the economic development especially of East Kalimantan and for Indonesia in general, because these become the main export commodities. Other main commodities of mining sector are available in this province such as coal, gold, silver, nickel, kaolin, limestone and quartz sand.
In the up coming years, oil production is enable to be increased as resulted from the operating of the new operational area. From the offering of 6 operational areas, 4 areas are affordable for the investors. In addition, there many potential mining that investors can process and develop.

Tuesday, May 29, 2007

East Kalimantan Business Report

In terms of area, the province of East Kalimantan ranks second, less than Papua, among provinces of Indonesia. This area covers as large as one and a half times of Java and Madura islands. Having large region, this province enjoys potential areas. In addition, the geological condition of East Kalimantan region resulted the abundant resources of mineral deposits. This province has a total area of 245,237.780 km2 or 24, 523, .780 ha, comprises 20,039,500 ha (81.71%) land and 4,484,280 ha (18.29%) seawaters. A part of the available natural resources is land which is suited for plantation, food crop cultivation, livestock's and fisheries. In addition, various mining deposits such as oil, natural gas, coal, gold, silver and others are available for supplying of raw materials of industries. The intensive actions are needed to manage the highly potential natural resources of East Kalimantan province in the upcoming years. These actions should be applied to accelerate the development programs and projects, especially by developing domestic as well as FDI companies. Many business fields/sectors can be developed in this region including plantation, agriculture, food crops, livestock's and fisheries. East Kalimantan province has also potential minerals such as coals, quartz, gips, pumice, dolomite, limestone, benthonic, marble, chalcedony, rijang stone, quartz crystal, and quartzite.


East Kalimantan province is located between 113,044'- 118,059' east longitude and between 04,024' north latitude - 020-25' south latitude. It has level and undulating topography. This region borders on other regions:
a. In northern area with Sabah state (eastern Malaysia)
b. In eastern area with Makasar Bay and Sea of Sulawesi.
c. In southern area with South Kalimantan province.
d. In western area with Central Kalimantan province, West Kalimantan province and Sarawak state (eastern Malaysia)

In term of area, Malinau regency has the largest region (4,199.040 Ha or 41,990.40 km2) while Bontang city is the smallest one (497.57 ha or 497.57 km2). Kalimantan has tropical season and experiences almost the same season with most regions in Indonesia. In addition, East Kalimantan region is influenced by West monsoon during November - April and East monsoon during May - October so that this region is known to have Tropical Humid season.
In 2001, the average rainfall was recovered at 298.42 mm per month.
The average temperature was between 20.900C - 34.400C.


In 2002, total population reached 2,558.572 inhabitants consisted of 1,330.457 (52%) male and 1,228.115 (48%) female. Samarinda city was resided by the most residents (544,044 people).
While Balikpapan city was the most densely populated (799, 49 people/km2).

Population Growth
During 2000- 2002, population grew 147,506 people, or in the average rate of 49.169 people/year or 3.5 %/year.

The Economy

Gross Regional Domestic Product (GRDP)
In 2002, the GRDP including oil and gas based on constant price was 24,521,450 million. Mining and quarrying sectors share the most important role with the amount of 32.73% followed by processing industries sectors in the amount of 31.53%, transportation/ communication at 10.48%, agriculture at 8.11% and trading/hotels/restaurant sectors at 8.62%.
Compared to that of the previous years (1999, 2000, and 2001), contribution of mining and quarrying sectors to the GRDP increased from 31.27% in 2001 to 32.73% in 2002.

Income Percapita
In 2002 the economic growth reached 4.4% (including oil and gas) and 5.79% (excluding oil and gas). The income per capita of East Kalimantan province amounted to Rp 25.6 million (including oil and gas) and Rp 10.06 million (excluding oil and gas) in 2002.

Export and Import
In 2002 the export value amounted to US$ 7,033,000. Contribution of East Kalimantan province to the national reserve from foreign trade (exports) activities still depends on the share of oil and gas sectors. It can be resulted from the export value during the recent three years as provided in the table below:

Meanwhile, in the same period the import value was amounted to US$ 1,743,000. As presented at the table below, most of import goods in 1999 and 2000 were originated from non-oil and gas categories. While in 2001, the import value of oil and gas categories was greater than that of non-oil and gas categories.

Minimum Wage Rates
The regional wage rates were around Rp 500,000.00 - Rp 650,000.00 in 2002. The highest rate was paid in mining, oil and gas sectors, while the lowest was paid in timber business and forestry sectors.
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