SOUTH SULAWESI - Kadin Indonesia

SOUTH SULAWESIThe position of South Sulawesi province, in view of the Indonesian Archipelago related to theregional development is considered as very much strategic. This is due to the fact that theprovince is known as a gate to the eastern Indonesia. The province has potential economicresources for wide range of business activities that may help to bring the region to reach itsdevelopment target. The province was located in the middle of the Indonesian archipelago,positioned on the cross-section of western and eastern parts, northern and southern parts aswell make the province function as transit area and central location of business and investmentto the east Indonesia, of which, known as central services for eastern Indonesia. The provinceof South Sulawesi becomes the central development of agricultural, food-crops & horticulture,plantation, livestock, fishery, and mining commodities. The main target of the provincialdevelopment is aimed at economic growth enhancement along with economic structure shiftingto the industrial and services sectors from agriculture based. To implement the development,the regional government instated "TRI PROGRAM" named mind-set changes, commoditiesregionalism and pick-process-sale. Especially for commodity regionalism, the approach focusedon natural resources regional management upon central production on main commodities.Presently, there are number of economic sector that might be expected to grow such asagriculture, industry trade, hotel and restaurant, tourism and mining. By maintainingproduction level along with sufficient processing, the regional government enables to improveregional revenues, particularly through non-oil export sectors. In addition, regional investmentpolicy encourages the economic growth through service centre establishment that stimulate asustainable investment and promotion activity in cooperation with regency/municipalgovernment as well as natural resources optimal management by inter-regencies/citiescooperation.GEOGRAPHY• The total area of the province is 6,236,171 sq km. The area of South Sulawesi spread over0°12' - 8º South Latitude and 116° 48' -122º36' East Longitude.• The average temperature ranges between 22°C - 34°C, while its rainfall varies between2,000 mm - 2,500 mm.• The government administration is set upon 22 municipalities and 2 cities as depicted on theabove table. The largest municipality is North Luwu (1,551,312 sq km) and the smallest isPare-Pare (9,933 km²).DEMOGRAPHY

• Population: The total population in 2001 was 7,891,792 people, consist of 48.79% maleand 51.21% female. The biggest population belongs to Makassar city, with 1,161,834people, while the highest populated (density) city is also Makassar city (66 people/sq km).• Population Growth: The population growth in 2001 was 1.16 % per annum.• Labour Force: The 2001 labour force was 3,137,274 people, consisting: 3,019,978working people (96.2%) and 117,296 seeking-job people (3.7%).THE ECONOMY• Gross Regional Domestic Product: In 2001, its GRDP on constant price was Rp.10,615,491.44 million or improved about 5.08%, higher than 2000 growth that was 4.89%.The biggest contribution comes from electricity, gas and potable water, hotel, restaurantand trading, communication of which has its own growth 14.10%, 17.90% and 15.97%,respectively.• Economic Growth: In 2001, the average economic growth was 5.08%.• Income Percapita: In 2001, the income per capita was Rp. 1,345.130.• Export-Import: The export value of South Sulawesi in 2000 was US$ 800.9 million and in2001 was US$ 744.1 million, while import values in 2000 and 2001 were US$ 206 millionand US$ 151.9 million respectively.• Minimum Wage Rate: The minimum wage rate in 2002 was Rp. 17,000/day.NATURAL RESOURCES• Agriculture: The South Sulawesi is the biggest food-crop producer (national rice producer)among east Indonesia regions. In 2001, its production was 3,610,659 ton that washarvested from 814,615 ha rice field area. Other main food-crop commodities were corn,sweet potato, cassava, and peanuts.• Plantation: In 2001, the plantation harvests that were dominant, were sugarcane, palmoil, sago, nata de coco and hybrid coconut, of which, producing 274,288 ton, 273,437 ton,38,249 ton, 145,005 ton, and 36,561. The total area covers 307,386 ha.• Fishery: The potential export opportunity of fishery commodities are among otherslobster, seaweed, crab, sea fish, teripang, tuna and cakalang fish.• Livestock: The South Sulawesi livestock commodities have potential market for eitherintra islands or export. Cow and goat, are the primary export commodities due to overseashigh demand, however, the overseas demand has not been meet because of limitedpopulation.

• Forestry: In 2001, the forest area located in this province, covered 3,834,657 ha consistof 1,928,597 ha protection forest, 811,105 ha limited production forest, 203,816 haordinary forest, 789,066 ha PPA forest and the remaining 102,073 ha is used asconservation forest. The forestry products consist of timber and non timber (such as rattanand resin). In 2001 the total forest production in term of timber was 72,100.11 cubic. Otherproducts: rattan and resin, 2,910.53 ton, 150 ton respectively and latex pine tree513,046.50 ton.• Mining: The types of mining and digging materials are among others, river sand as muchas 12,737.76 ton and sandstone as many as 4,288,388.33 ton. Other mines resources areclay, nickel, and marble.

• Industrial Estate: Makassar has one industrial estate managed by Makassar IndustrialEstate (KIMA) with 497 ha.SUPPORTING INFRASTRUCTURE• Bank and Insurance: In 2002, there were 5 branch offices of state bank, 19 offices ofprivate bank, and 37 insurance offices.• Hotel: In 2002, there were 28 star-hotels with 2,358 rooms and 352 non-star hotels with5,611 rooms.• Healthcare Facility: In 2002, the Available healthcare facility centre in South Sulawesicomprised of 25 hospitals with 1,731 beds, 16 private hospitals with 1,138 beds, 1,840healthcare clinics with 5,520 beds, 1 small general health clinic with 5 beds, and 1Laboratory in Makassar.• Education and Training Centre: There are many government schools in the province, asfollows: 7,248 elementary schools, 582 junior high school, 162 senior high schools, 42vocational high schools, 2 Poly-technics, 3 colleges and 3 Universities. Meanwhile, there arealso a number of private-owned school, as follows: 181 elemen-tary school, 358 junio highschool, 206 senior high school, 102 vocational high schools, 1 Polytechnic, 13 college and11 Universities.• Trade Centre: In addition to the 15 Traditional markets, there have been 3 shoppingmalls (trade centers) and 2 Supermarket in Makassar.INFRASTRUCTURE DEVELOPMENT PLANINVESTMENT OPPORTUNITIES