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www.tradexpoindonesia.com

Indonesia News E M B A S S Y O F T H E R E P U B L I C O F I N D O N E S I A I N S T O C K H O L M

February 2017

Indonesia-one

of the fastest growing countries in the emerging economies is set to be the new trade tourism and investment destination for the forward-looking buyers and traders amidst uncertainties of economic and

political changes in many parts of the world. The Indonesia Ministry of Trade has been preparing the latest annual series of Trade Expo Indonesia (TEI) 2017 to be the Right Business Platform for

buyers, traders, investors and business visitors from all over the world. In the 32nd edition of TEI in 2017, more and new quality

products will be on offer with more choices. For sure many of the products will be featured and highlighted online with more adequate description and supporting data to help prospective buyers making a choice and buying decision even before physically

coming to TEI. Combining virtual and physical exposure of the products will add more benefits for TEI buyers and sellers. More than one thousand exhibitors with an extensive range of export-oriented product categories are really a strong base for exploring

business opportunities, sourcing new products for global market. TEI will offer everything that buyers, traders, investors will expect.

Content 32nd TRADEXPO Indonesia

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Cocoa from Indonesia – Chocolate for the World ........................................p.2-3

Company exposition: PT Jembo Cable Company, Tbk – Cable Manufacturer...p.4-5

Investment Opprtunity: Cattle ……………………...p.6

Kalimantan Timur (East Borneo) …………………p.7-8

Indonesia News is compiled, printed, and published periodically by the Embassy of the Republic of Indonesia in Stockholm, Sweden. Visiting address: Kungsbroplan 1, 4 tr, 112 27 Stockholm, Sweden. Postal: Embassy of Indonesia, Box13062, 10302 Stockholm.

Ph: +46-8-54555880 Fax: +46-8-6508750 Web: http://www.kemlu.go.id/stockholm/en/default.aspx Email: stockholm.kbri@kemlu.go.id

Warmest Greetings from

Indonesia

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COCOA FROM INDONESIA – CHOCOLATE FOR THE WORLD

Indonesia is the third largest producer of cocoa in the world after Ghana and the Ivory Coast. Indonesian cocoa exports are currently valued at approximately $600-700 million per year and provide the main source of income and livelihood for over 400,000 smallholder farmers and their families. On the island of Sulawesi, smallholder farmers working on plots ranging from 0.5 to 1.5 hectares produce over 80% of the cocoa exports from Indonesia.

Indonesia’s primary competitive advantage in global cocoa trade lies in its ability to supply large quantities of beans. Current cocoa yields in Indonesia range from 400 to 800 kg/hectare, with the potential to increase yields as high as 1 to 1.5 MT/ha. Cocoa yields in West Africa and other major producing countries, on the other hand, are much lower and only average 300 kg/ha or less.

As the largest producer of unfermented bulk beans, Indonesia currently occupies a strong position with few competitors in this segment of the global market. Thus, the major threats to Indonesia’s continued competitiveness in this market segment are internal rather than external. The major challenge is to improve, or at least maintain, local cocoa productivity. Since global trade in Sulawesi bean is volume based, it is recommended that efforts to improve cocoa productivity must form the basis for any cocoa development initiative in Indonesia. As crop productivity is expected to improve, Indonesia's cocoa output is likely to rise to 600,000 metric tons this year, up 20% from 2007. The Indonesian government embarked on cocoa cultivation plans last year to boost the country's output to 2 million tons by 2020. Cocoa plants (Theobrama Cacao Linn) originated from the forests in South America. These plants belong to Sterculiaceae family, which were planted by the Aztec Indians. In 1560, cocoa plants came into Indonesia brought by the Spaniards in Sulawesi region. The first species of cocoa brought into Indonesia was Criollo. From various species of cocoa, there are three species which are mostly planted :

Criollo species, consisting of Central America Criollo and South America Criollo. These species produce good quality cocoa beans, the taste is delicious, and known as pure cocoa and fine flavour cocoa. This cocoa species is needed by factories for blending in producing high quality cocoa products. The production is low, and less resistant against disease. Forastero species produces cocoa with moderate quality, known as bulk cocoa or ordinary cocoa. The taste of this species is less delicious compared to Criollo, but its production is relatively higher and resistant against disease. This species came from Bahia (Brazil), Amelonado (West Africa) and Ecuador. Trinitarion species, a mixture between Criollo and Forastero, which is called boiled cocoa. This species has advantages such as, among others, rapid growth, bearing fruits after two years and year round harvesting season.

Indonesian cocoa is produced by three groups of plantations, namely large plantations owned by the state, plantations owned by private sector, and plantations of the farmers. Cocoa plantations in Indonesia are found in South Sulawesi, Southeast Sulawesi, Sumatera, Java, Maluku, East Kalimantan, and Papua. Meanwhile, factories that produce various cocoa preparations are found mainly in Java (Jakarta, Bandung, Semarang and Surabaya), Sumatera (Medan), and Sulawesi (Makassar).

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RAW / ROASTED / COCOA POWDER / BEANS / BUTTER PRODUCERS FROM INDONESIA

PT. Cargill Indonesia Cargill is one of the world’s major originators and processors of cocoa beans. Jl. Kima 9, Kav L 7B Daya, Makasar 90241, INDONESIA Tel.: +62-411-514361 Fax: +62-411-514370 www.cargill.co.id

PT. Bumitangerang Mesindotama PT. Bumitangerang Mesindotama is a producer and exporter of cocoa powder, cocoa paste and cocoa butter. Address: Jln. Dipati Unus No. 27 & 30, Cibodas Besar, Tangerang, Banten, INDONESIA Phone: (+62-21) 5585870 Fax: (+62-21) 5585872 www.btcocoa.com

PT. Mayora Indah, Tbk PT. Mayora Indah, Tbk is a producer and exporter of chocolate in blocks, slabs and bars. Address: Jln. Tomang Raya 21–23, Jakarta 11440, INDONESIA Phone: (+62-21) 5655315, 5655316, 5655317, 5655318, 5655319 Fax: (62-21) 5686570 www.mayora.com

PT. Golden Harvest Cocoa Indonesia Jl. Raya Serang Km. 68, Desa Julang, Kecamatan Cikande, Serang, Banten 42186, Indonesia P: +62-254-404550 F: +62-254-404560, +62-254-404561 www.ghcocoa.com

PT. Wahana Interfood Nusantara Address: Jl. Dadali No. 16, Bandung 40184, INDONESIA Phone: +62-22-6011375 Fax: +62-22-6033265 www.wahana-interfood.com

Asosiasi Kakao Indonesia (ASKINDO) or Association of Indonesian Cocoa was founded in February 18, 1989. Asosiasi

Kakao Indonesia covers all parties in the business of cocoa such as the farmers, traders, producers and exporters of cocoa.

Headquarters’ address: Sekretariat DPP Asosiasi Kakao Indonesia (ASKINDO), Gedung AEKI Lt. 3, Jln. RP. Soeroso No. 20, Jakarta, INDONESIA

Phone: (+62-021) 3925053 Fax: (+62) 021-3925024 Email: secretariat@askindo.org

Contact Person: Ms. Dewi Sumartini – Ms. Andi Fitriani

Cocoa Price Projection

Period Price

(USD/ton

Q1-2017 2,078

Q2-2017 1,846

Q3-2017 1,816

Q4-2017 1,842

Full Year 2017 1,896

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Company Exposition – PT. Jembo Cable Company Tbk – Cables Manufacturer

PT. Jembo Cable Company Tbk is a publicly held company which manufactures and markets

Supported by the latest state-of-the-art equipment, experts in the production engineering division and quality control constantly carry out accurate examinations and control. Supervision and quality control are implemented at every stage, starting from customer orders, purchase and inspection of raw materials, production process, end product inspection, delivery to customers, and after sales services. The quality management of which, are all in adherence to the ISO 9001 standards. Quality is held with the utmost importance by Jembo, thus it is tightly integrated in the company's daily processes. Significant investments have been made to continuously improve product quality, including our establishment of technical assistance cooperation with Fujikura Ltd., one of the world's leading cable manufacturers in Japan, in order to enhance product quality, and more recently our end-to-end implementation of Baan ERP software so that every aspect of the manufacturing product cycle is tightly controlled so as to produce higher quality products for our customers.

multiple lines of power and telecommunication cable products. The products range from low-voltage copper and aluminium conductor cables, low and medium voltage electrical cables, copper conductor and fibre optics telecommunication cables. Customers include PLN, PT Telkom, PT Indosat and other state-owned and private companies. PT. Jembo Cable Company Tbk works with 30 international principals in more than 20 countries and over 300 customers in Indonesia as well as with customers in various industries from pulp and textile, cement, fertilizers, to oil and mining industries. At Jembo, customer satisfaction and quality go hand-in-hand. Our operations and quality plan are designed around the elements of the ISO 9001:2000 standard which is centred on process evaluation and improvement.

Jembo Quality Policy:

PT Jembo Cable Company Tbk. strives to be the leading manufacturer in the cable and wire industry in Indonesia.

We are committed to delivering products that meet customers' requirements.

Everyone is involved, motivated and knowledgeable to make continual progress towards achieving excellence.

To better guarantee production quality, quality control is not only carried out by experts at Jembo. We have also conducted a quality control agreement with PT PLN (Persero)/LMK for low to medium voltage cables. In addition, the company has received a certificate of approval from PSB Singapore for low voltage cables. The company has also received a certificate of approval for telecommunication cables (metallic telephone cables and fiber optic cables) from DivRisTi PT TELKOM INDONESIA.

The following are several quality standards adhered to by the Company:

SNI (Indonesian Industrial Standard)

SPLN (Indonesian Power Company Standard)

STEL-K (Indonesian Telcom Specification)

IEC (International Electrochemical Commission)

JIS (Japanese Industrial Standard)

DIN (Deutsche Industrial Norm)

VDE (Verband Deutsche Electrotechniker)

NEMA (National Electrical Manufacturers Association)

BS (British Standard)

Others customers specification

PRODUCTS :

Power Cables: Low Voltage: Single Core Cable, Multi Core – Non Armour, Multi Cores – with Armour, Low Voltage Power Cable w/Screen, Flame Retardant – IEC 332-3-Cat.A (Non Armour and with Armour), Flexible Cable – Single Core, Flexible Cable (ff) – Multi Core, Cable for Hazardous Area with Lead Alloy Jacket, Fire Resistant – IEC 331 – Single and Multi Core, Cable for Hazardous Area with Continues Corrugated Aluminium Sheathed. Medium Voltage: Single Core, Three Single Core Underground Twisted Cable, Three Single Core Overhead Twisted Cable, Three Single Core Underground/Direct Burial, 20 kV Overhead Transmission Line, Three Single Core – Non Armour, Cable with Lead Alloy Jacket/Hazardous Area Protective, Continues Corrugated Aluminium Sheathed (Hazardous Area Protective), Airport/Runway Cables. Overhead Transmission and Distribution Line Conductors: Overhead Transmission Line, Low Voltage Aluminium Bundle Overhead, Service Entrance Cable.

Telecommunication Cables: Metallic Telephone Cables: Over Head/Aerial Cable, Indoor Cable, Duct Cable – with and without Petroleum Jelly, Direct Burial/ Underground, Airport Telecommunication and Control Cable – Indoor and Direct Burial/Outdoor. Optical Fibre Cables: Over Head/Aerial Cable – Lose Tube, Duct Cable – Lose Tube, Direct Burial Cable – Lose Tube.

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Coaxial Cables Data Cables: UTP and FTP Category 5E LAN Cable, PCM Cable 120 Ohm – 2 Mbps,

Instrumentation and Signal Cables: Overall: Overall Shielded – Non and with Armour – Mechanical Protective, Overall Shielded with Lead Alloy Jacket (Hazardous Area Protective), Overall Shielded with Continues Corrugated Aluminium Sheathed (hazardous Area Protective), Fire Resistance Instrument Cable – IEC 331. Individual & Overall: Individual & Overall Shielded – Non Armour, Individual & Overall Shielded with Armour – Mechanical Protective, Individual Shielded with Continuous Corrugated Aluminium Sheathed (Hazardous Area Protective), Fire Resistance – Instrument Cables – IEC 331, Individual & Overall Shielded w/Lead Alloy Jacket Hazardous Area & Mechanical Protective.

Control Cables: Flexible Control Cables: Flexible Cables – Fine Wire (ff), Flexible Control with Copper Wire Braided Screen (ff), Flexible Control with Armour and Shielded (ff). Control Cables: Control Cable without Armour, Control Cable with Shielded/Screen, Control Cables with Shielded and Armour, Control Cables with Mechanical Protective, Control Cables with Lead Sheathed/Continues Corrugated Aluminium Sheathed (Hazardous Area Protective). Custom Cables

some of the company’s cable products

Contact the Company : PT. JEMBO CABLE COMPANY TBK

Jln. Pajajaran, Ds. Gandasari, Kec. Jatiuwung, Tangerang 15137, Banten, INDONESIA Phone : (+62 – 21) 556 504 68 Website: www.jembo.co.id

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INVESTMENT OPPRTUNITY: CATTLE

Beef demand in Indonesia is currently met from three sources, namely local cattle, the fattening result of imported cattle and beef imports from abroad. Livestock especially in beef cattle are investment opportunities that become sub-sector priorities in the field of Agriculture. This investment is quite feasible to do with the availability of land area in several provinces that have the possibilities.

The availability of comprehensive oil palm land to make Indonesia as a very promising area for businesses in the livestock sector. The waste from palm oil can be taken oilcake, midrib and solid as cow feed. In the province of South Kalimantan, the largest cattle population centers were in Tanah Laut regency. Cattle population in Tanah Laut regency tail reaches 51.190 (2013). While the type of cattle that are developed are Bali cow, Brahman and Crossbreed cows “Ongole” (PO).

The availability of natural resources and abundant human resources is the potential of Pekalongan regency, which can be developed into a productive area in the field of natural resource-based economy. The land area potential for fattening beef cattle around 11.298,03 hectares scattered in several regions, including the Districts of Talun, Doro, Karanganyar, Kajen, and Kesesi. Pekalongan Regency has a great potential in the agricultural sector, especially the field of animal husbandry. As for the beef cattle population by the year 2013 recorded as many as 17.501 animals.

Bali cattle have advantages in terms of fertility, weight gain every day, tolerance to heat and the male libido, thus potentially to be used as cattle seed selection. In terms of fertility Bali cattle is 83% -86% better than European cattle which average a 60% fertility only. The age of sexual maturity is 18 months. The percentage of births of Bali cattle mated amount to 83.4%, while the percentage of stillborn is relatively small, approximately 3.65%.

National beef demand is increasing from year to year. National beef production in 2014 amounted to 430,000 tons, and the 2015’s target was 530,000 tons. However, the availability of the national beef is still less than the requirement. In 2015 the national beef needs estimated at 580,000 tons, a deficit of 0.04 million tonnes. Beef demand is higher than production thus investment in cattle is promising. Although beef consumption by Indonesians is still very low at 2.1 kg / capita / year, the difference in demand and supply of domestic beef market makes the country as an opportunity for potential investors in domestic beef cattle fattening.

Investment opportunities in the field of dairy farms in Sumbawa can be done in the form of cattle breeding and fattening cattle. The pattern of development of dairy farms is by using cage systems and Lar system. Utilisation of grazing together (Lar) system in Sumbawa generally uses a system of grazing in the Lar. Sumbawa regency has the support of farm land or Lar amounted to 501.284 ST (Livestock Unit). The amount of rainfall per year on average to below 2,000 mm. Local cattle race is a type of cattle that is most appropriate for cultivation or fattening. Sumbawa has a kind of local cows that are able to live in a dry area / less water as they have proven their ability to adapt and survive in a tropical climate conditions and relatively dry.

Other areas of considerable potential for cattle breeding business, among others Banggai Islands Regency, Kebumen Regency, Lamandau Regency, Tanah Laut Regency, Pemalang Regency, Pekalongan Regency, Grobongan Regency and Boyolali Regency.

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Kalimantan Timur (East Borneo) As a major producer of oil and timber; East Kalimantan is at present the most industrially advanced province of the island and the second largest province in Indonesia. It is also the home of the original inhabitants of Kalimantan, the Orang Gunung or Mountain People. The tribes are collectively called Dayak, although this name is not embraced by many tribes-people themselves, who prefer to be known by separate tribal names such as Iban, Punan and Banuaq.

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Local tribes traditionally live in the communal longhouses called Lamin or Umaq Daru. They are built on wooden

piles, sometimes 3 metres high as protection against wild animals and flooding. The Punan people are nomadic hunter-gatherers, and only use the longhouse at the height of the rainy season. Steeped in tradition, the interior of the longhouse is typically divided into separate family quarters with communal areas connecting each of the families. It is in the communal areas that village meetings are held and ceremonies performed, thereby reinforcing the strong tribal bonds in the face of rapidly advancing 20th century’s technology. Guardian statues are normally placed in front of longhouses to protect them against

evil’s spirits who bring disease and bad fortune. The more remote and traditional tribes-people have pierced earlobes, which over the year have become stretched by the weight of heavy gold or brass rings, and beautifully elaborate tattoos. Traveling along the extensive Mahakam river system is a fascinating adventure. River boats slide unobtrusively through heavily silt-laden waters, wild orchids drip off trees. Proboscis monkeys signal your arrival to the crocodiles and legendary hornbills. A 5,000 acre Orchid Reservation close to the village of Kersik Luwai cultivates 27 different species of orchild including the very rare “Cologenia Pandura” the Black Orchid.

Getting there: Balikpapan is the gateway to East Kalimantan, Garuda Indonesia Airlines fly from Kuala Lumpur to Balikpapan via Jakarta.

Balikpapan can be reached by flight directly from Jakarta, Manado and Surabaya as well as from Tarakan.

Tourist Office: Jln. Kusuma Bangsa Balaikota Samarinda 75123

Places of Interest Tanah Merah Indah-Lempake This is recreational park called Tanah Merah Indah-Lempake with a water fall, located 16 km from downtown Samarinda. It can be reached by car or public transportation.

Berau Found here are the remains of a king called the Keraton Gunung Tambur and The Keraton Sambaling.

Samarinda Samarinda is the capital of East Kalimantan province known for its fine sarong. The Garden of Mulawarman University has its own educational forest with 62.4 ha which is located about 12 km north of Samarinda. A number of modest but comfortable hotels are available in Samarinda.

Balikpapan Balikpapan, the center of Kalimantan’s oil industry, is also the gateway to East Kalimantan with air and sea connections to Jakarta and other major points in Indonesia. Balikpapan has a major number of good hotels, including one of the international standard, as well as recreation facilities. It has the second-busiest airport in the nation after Jakarta.

Tenggarong Tenggarong, up to Mahakam river from Samarinda, is the capital of Kutai regency and was once the seat of the Kutai sultanate. The Sultan’s palace at the riverside is now a museum where the old royal paraphernalia are kept, as well as an excellent collection of antique Chinese ceramics. Dayak statues can be admired in

the yard. A curious thing about the royal paraphernalia is that they display a strong resemblance with Java’s court traditions. Every 24th of September, the former palace becomes a stage of dance and music performances given to celebrate the town’s anniversary.

Tanjung Isuy Tanjung Isuy. This little settlement around Lake Jempang, in the lake-studded East Kalimantan hinterland, has a traditional Dayak longhouse which has been turned into lodges for visitors. The grave of a Benuaq Dayak chief lies aside the hamlet’s only road. Visitors are usually given a traditional Dayak Benuaq welcome. The trip over Tanjung Isuy over the Mahakam River is along but interesting one past floating village and forest scenery. See the magic dance of the “belian” a Dayak tribe‘s doctor. Dressed in skirt of leaves, cures his patients at night by performing the rites prescribed by ancestors to the frenzied accompaniment of gongs and drums. Many Benuaq Dayaks still prefer the old cures to the modern ones at the government public health centers which are nearby.

Derawan and Sangalaki Islands Derawan and Sangalaki Islands 3 hours by long boat from Tanjung Redep in the north, you can reach Derawan Island. There are many rare animals such as the green turtle, the scarlet turtle, star fruit turtle and sea cow. Derawan and Sangalaki islands hold an amazing marine environment, including fabulous coral formations, canary crabs, green turtles and pearls.

Tourism Event: Erau Festival, Tenggarong Mahakam River, East Kalimantan. Catch a rare glimpse of Dayak and their culture

during the Erau festival. The event is held on September to commemorate Tenggarong city, as the capital city of an ancient kingdom several centuries ago.

Disclaimer: While every effort is made to ensure that the content of this publication is accurate, the publication is provided “as is” and the Embassy of the Republic of Indonesia in Stockholm, Sweden makes no representations or warranties relating to the content and use of this publication. Nothing on this publication should be taken to constitute or imply a formal recommendation by the Embassy.