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Banten General Information

Section on Banten

Banten Brief History
Geographycally being in the western part of Java Island, Banten has been widely known by foreign countries since the 14th century (1330 A.D). During the 16th to 17th century many traders from foreign countries make use Banten harbour as a stopover place, hence, Banten also serves as center of civilization exchange and acculturation.


For decades ago, Banten was in a state of a residency administrative unit within the West Java Province and by virtue of the Law of the Republic of Indonesia No. 23 year 2000 regarding the Establishment of Banten Province, since 4 October 2000 Banten becomes the 30th province of the Republic of Indonesia.

As stated in the Law, the Government (Republic of Indonesia) understands the importance of the establishment of Banten is to realize some objectives as follow:

  1. To raise governmental organization, developmental enforcement, and social empowerment in order to ensure progress and wealth in the coming area
  2. To motivate fulfillment of the best services in the governance, development and social and also giving the province the rights as an autonomus region to manage local resources


Banten Present and Future

Having great potencies on industry and tourism contributes Banten as one of the main investment destination region in Indonesia. Both sectors are spreaded widely throughout Serang Regency, Tangerang Regency, Pandeglang Regency, Tangerang City, and also Cilegon City.

Banten has a huge, world class steel fabric namely Karakatu Steel, established in 1966 located in Cilegon. Its existence has been triggering new industries to emerge, and also ports to grow, which in turn plays an important role in promoting regional growth progress, economically and physically so that based on nationwide scale Banten is classified into a rapid growth region.


In order to fasten regional development and accelerate industrial growth, Banten has programmed several strategic projects weather measured in national and international scale, among which are the Development of Bojonegara International Sea Port, the Development of Sunda Straits Bridge connecting Java Island and Sumatera Island, the Development of Ring Road along West and South Coast, the Development of Double Track Railway System, the Development of Tol Road, Advancement of Soekarno – Hatta International Airport, the Development of Karian Dam as water reservoir supply, enlargement of Power Plant Capacity, the Development of Oil Storage and Refinery, the Development os Special Economic Zone and Enhancing Petro Chemical Industrial Clustering Concept.

Banten Map

Banten MapA. Letaite Point of View
Banten Province lies in the westernmost of Java Island, astronomically position in 105o 01’ 11” – 106o 07’ 12” East Longitude and 50o 7’ 50” – 70o 1’ 1” South Longitude. In fact, it is bordered on:

  • Java Sea on the northern side
  • Jakarta Province and West Java Province on the eastern side
  • Indian Ocean on the southern side
  • Sunda Straits on the western side


On the most geographical advantages is that Banten serves as gateway between Java and Sumatera Islands, and faces straight to international shipping line. It is also well acknowledged to be the busiest distribution lane of passengers. Goods, and services in Indonesia that mobilization rates is almost 60% of national figures.

B. Climate and Topography Point of View
Banten has tropical climate that is much influenced by Monson Trade and El Nino or La Nina waves. Rainy season takes place during November – March and dry season happens from June to August.

From topographical point of view, land areas of Banten exist at 0 – 1000 metres above sea level, whereas half of Serang areas the deeper topographical exist at 0 – 200 above sea level.

C. Administrative Point of View
Administratively, Banten Province area extents to 8.800, 83 km2, comprises of 4 regencies i.e Pandeglang (369.308 Ha), Lebak (295.905 Ha), Serang (177.742 Ha), Tangerang (102.784 Ha) and 2 municipalities namely Tangerang City (16.545 Ha) and Cilegon (17.549 Ha).

Each regency and municipality is then divided into smaller administrative unit that so-called sub-district and village, there counted to be 132 sub-district and 1.483 villages. The administrative division is aimed to conduct a more effective government.

Demographic Info on Banten

Special Plan
Based on the Plan, spacial usage of banten is classified into 3 regional development scenes:

  1. Region I: it covers both Tangerang Regency and Municipality, mainly directed and developed to handle activities such as industry, trade, services, and property/residence
  2. Region II: it covers Cilegon and Serang, mainly directed and developed to handle activities such as tourism, agriculture, mining, industry, forestry, and education
  3. Region III: it involves Pandeglang and Lebak, mainly directed and developed to handle activities such as tourism, agriculture, forestry, and education


Population and Manpower

A. Population
The amount of Banten population in 2004 is 9.083.144 people and deserves a density 1.032 people/km2. Annual population growth rate from 2001 – 2004 is 3,16%. most of them are live concentrated in Tangerang Regency as much as 3.194.282 people and the highest density is Tangerang City, i.e 8.091 people/km2. The phenomenon arises as the qonsequences of their existence as hinterland/sub-urban of Jakarta Province as well as satelit city of the Capital of the State and residential city.

Out of the total amount, 51% (equivalent to 4.607.600 people) is male and female 49% (4.475.544 people).

B. Manpower
Out of the toral amount of population, 3,3 million people are working. The field work proportion of each sector is agriculture (25%), service (20%), manufacturing industry (19%), industry (19%), trade (14%), and transportation (3%).

According to education level, the portion is consecutively Elementary School (36%0, High School (23%), Drop Out of Elementary School (21%), Junior High School (15%), Graduate (2,9%), and Undergraduate (2,7%).

Classification age based reveals the number of productive age is 6.297.300 people, among which 4.093.245 people is working. The job seeker is up to 138.578 people and direct jobless approximately 589.833 people.

C. Minimum Subsistence Wage

In order to standardize wages for workers so that they can fulfill their need, both provincial and regencial government issues a Minimum Subsistence Wage policy. For provincial level, the amount in 2006 is Rp 661.613 whereas in regencial level it varies depend on living standard of each region, i.e Tangerang regency Rp 800.000, Tangerang City Rp 802.500, Cilegon Rp 835.937, Serang regency Rp 796.000, Pandeglang regency Rp 755.000, and Lebak regency Rp 750.000.

Social, Culture, and Economy

A. Social and Culture
Socially and culturally, indeed Banten in inevitably very rich due to contribution of various tribes, hereditaries, and languages. Indigenous inhabitant is Baduy Tribe who nowdays still exists and lives in Kanekes cillage, sub-district Bojong Manik, Lebak Regency – southern part of Banten.

Banten society in common is so open – minded, as seen in religious diversity thet reveals fact of 22.691 mosques, 26 catholic churches, 42 protestant churches, 4 hindu temples, and 40 Buddhist temples.

B. Economy
Economic growth rate tends to increase with annual growth rate average 5,7% - 6%, reflecting that Banten’s macro economic condition growth progressively.

In 2005 Gross Regional Domestic Product (GRDP) reached Rp 80,1 billion most of which dominated by manufacturing industry (49,28%), trade – hotel – restaurant (17,43%), agriculture (9,22%), transportation – communication (9,02%), services (5,22%0, electricity – gas – water supply (4,25%), construction (2,58%), mining – quarrying (0,11%).

Trend of investment also rises. In 2005 foreign investment counted US$ 491.603.352 meanwhile domestic investment was Rp 2.744.697.066.291 that made Banten into the Big Five of Investment Rank.

Infrastructure Availability

Parallel to intention to meet needs of transporting goods, services, and passengers both inter and intra city, Jakarta – Merak toll road 88 km and Jakarta – Serpong 18 km. Massive transportation is served by Jakarta – Merak train (129,3 km). Infrastructure in sea transportation are 40 commercial ports, comprises of 1 general port in Ciwandan, 1 ferry port in Merak, and 38 special purpose ports used by industries such as Cigading Port (PT. Karakatau Steel), Merak Mas Port (PT. Indah Kiat).

Most airports exist in Tangerang, namely Soekarno – Hatta International Airport that serves as general purpose for air transportation, Budiarto Curug airport as center excellence in civil aviation and Pondok Cabe airport that supporting PT. Pelita Air Service flight.

The importance need of communication is realized in telecommunication service availability both fixed phone and mobile (cellular) phone. A 335.378 phone lines has been serving household, industries, and offices.

To meet electrical supply need for industries, business, and household -3 power plants whose names and capacities are consecutively PLTU Suralaya (3.400 MW), PT. KDL (400 MW), and PLTU Cilegon (300 MW) are available.

Investment Opportunities in Banten

INFRASTRUCTURE DEVELOPMENT PROGRAMME

Road Network Development Programme

The program is aimed to develop and enhance road capacity among which are:

  • North-South primary arterial ring road, extents from Soekarno – Hatta Airport-Pontang-Tirtayasa-Bojonegara-Anyer-Labuan-Cikeusik-Malingping - Bayah-Sukabumi border which connecting prominent and potential region
  • Serang-Pandeglang and Pakupatan-Palima capacity enhancement from 2 into 4 lanes to accelerate mobility and stimulate local economic growth
  • Tol road (highway) development in:
    1. Serpong-Tangerang, functioning as connector between residence area and economic area
    2. Serpong-Cinere, continuing Jakarta Outer Ring Road (JORR) toll project
    3. Serpong-Balaraja, giving access to Tigaraksa industrial region and its surrounding
    4. Tangerang-Soekarno Hatta airport, new access from Banten to airport
    5. Serang-Bojonegara as main access to Bojonegara Interantional Seaport

Railway
Some efforts concerning railway service enhancement has been done, among which are the development of double track along Tanah Abang-Serpong-Rangkasbitung and Cilegon-Bojonegara.

Port
Port plays import role for regions border to ocean in supporting man and goods mobility, both inter island and inter country. Banten has been building a huge international seaport in Bojonegara. In addition to that, Banten also plans to build new ferry port in Margagiri, Bojonegara, Serang as an alternative and complementary connection from Java island as well as docking facilities.

Airport
In order to increase air transportation service in Banten region, Soekarno – Hatta international airport will be developed and enhanced its capacity by widening its from 1.800 Ha to 2.780 Ha so that it can accommodate passenger’s growth up to 60 million per year. Another plan is development of Budiarto Curug airport both for education center and aircraft.

Electricity
A growing demand toward electricity for household and industry together with Java-Bali interconnection addition would be anticipated by increasing the power plant existing capacity up to sutable demand i.e Suaralaya Steam Power Plant (PLTU) 1 x 1.600 MW, Teluk Naga 3 x 300 MW, and Labuan 2 x 300 MW. Instead of steam or coal power plant, Gunung Karang geothermal power plant is designed to fulfill electricity demand for the southern Bnaten area.

Telecommunication

To coverage jumping demand of communication facilities, expansion of conventional cable system network and Base Transceiver System to support mobile communication are prior to do list as well as wireless satellite based communication system appropriate to serve several remote areas with hilly topography.

Oil and Gas
With 300.000 barrel/day capacity Bojonegara oil refinery accommodates increasing oil demand for industries and transportation vehicle, as wll as Sumatera- Java gas pipeline in Bojonegara and Serpong.

Water Supply
Development of Karian Dam (lebak), Kali Bnaten Dam (Serang) is badly needed in order to meet various industrial areas and Bojonegara seaport needs of adequate water supply.

Public Service Facilities

A. Education
Education, both formal and informal is essential in preparing skillful human resources. Besides each regency and municipality also has Work Training Institution preparing ready to use manpower and other institution that educates skillful worker to support health and tourism services.

B. Hospital
Various level of health service institution exist giving best service to all society, even 3 those have international standard service qualification i.e International Bintaro, Siloam, and Honoris Hospital.

C. Bank
Financial institution both public an private such as BRI, BNI, Mandiri, Danamon, Lippo, etc.

D. Hotel
As one prominent tourism, industry, business, and trade destination in Indonesia, Banten is supported with many accommodation facilities range from starry hotel to home-stay level. Moreover, several resort and cottage with recreation fun sport facilities are also available.

E. Shopping Centre
Big tenants and retails supporting facilities of daily needs.


RESOURCES AND INVESTMENT OPPORTUNITY

A. Agriculture
Most of Banten land areas are used for agriculture, total width 876.112 hectares of which 196.589 hectares are wet rice field (22,55%) and 675.354 hectares are in dry field form. Population earnings a living as farmer is 25% out of total population 9.083.144 people.

Commodities yielded are predominantly of rice and grains such as peanut, corn, soybean, onion, chili, etc. Adequate to fulfill own consumption need and some are traded to neighboring areas. From these commodities, corn and peanut are very prospective to be commercially cultivated in large scale investment.

B. Plantation

Banten has great potency in developing plantation and forestry sector due to extensive areas up to 386.865, 80 Ha, comprises of forest area 206.851,44 Ha and plantation area 180.014,39 Ha. Forest area includes production forest 72.295,47 Ha, protected forest 9.486,06 Ha, and conservation forest 123.905,3 Ha.

Production forest is generally cultivated with trees producing valuable timber as teak, mahogany, albisia, and meranti. Meanwhile paltation commodity varies i.e oil palm, coconut, clove, sugar palm, and melinjo (gnetum gnemon).

From these commodities, coconut, oil palm, cocoa, and rubber are the most exciting and prospective to be commercially cultivated in large scale investment.

C. Fishery
Despite its 517,42 km coast line length and 11.500 square kilometers sea territory covering Java Sea, Sunda Straits, and Indonesian Ocean, Banten’s population living as fisherman is approximately only 51.824 people.

Extensive potency in fishery can be categorized into 2: catchment fishery and cultivated fisheries both in seawater and freshwater fishery. Catchment fishery product various kind of fishes, among which are stingray, marlin, shrimp, coral fish, sardines, squid, tuna, fish, flatfish, etc. Cultivated products include milkfish, shrimp, scrab, flyinf green shell, carp, etc.

In order to facilitate fisherman to sell their fish, the government had built fish auction market in 29 locations and fisherman pier in 3 locations. The prospective to be commercially cultivated in large scale investment are coral fish, shrimp, green shell, phyton catfish, carp fish, milkfish, and seaweed.

D. Mining
As the southern part of Banten, Pandeglang, and Lebak are the predominant areas that rich of mining materials and the rest come to Serang. Most common material found including gold, silver, coal, zeolit, bentonit, feldspar, quartz sand, andesit, diorite, kaolin, etc.

Gold content in Cikotok, Cirotan, Cikidang, and Cibaliung have been explored, meanwhile total gold potential indication in Ciawitali, Bongkok Mountain, and Cigeulis need a further examination.

Massive deposit of coal exist in Lebak especially in sub-dsitrict of Bojong Manik, Cimayang, Cisimeut, Cipanunggalan, Cisawarna, predicted amount of 34.750.000 tons. Oils deposit lay in Ujung Kulon Block. Geothermal potency that can be used as energy source of electricity power plant.

The prospective mining material potency to be commercially quarried in large scale investment are gold, coal, quartz sand, zeolit, bentonit, feldspal, and limestone.

E. Tourism Destination
Many beautiful beaches and scenes are scaterred all over Bnaten and historical heritages. During west wind period comes temptation to those fond of surfing and other seawater based sport. Sawana beach (Lebak) has known widely among world class surfers.

Ujung Kulon National Park with rare Rhinoceros Sundaicus animal and abundant biodiversity is very famous all over the world, especially to scientists an researchers.

Besides many domestic and foreign tourist visit beautiful beaches such as Anyer, Carita/Labuan, Sawarna, and Karang Bolong. Worthseeing historical heritages are Surosowan, Dutchmen Speelwijk Wall, and unique society live in Baduy.

F. Industry
Banten has been emerging as one of center of industrial project in Indonesia. Among which are 1.623 industries with 72 prominent sectors manufacture various goods as steel, plastic, paper, textile, machine, processed wood, sparepart, heavy equipment, paint, shoe, leather, rubber, machinery, etc. The products has been exported to various countries like Europe, Asia, South East Asia, Japan, China, East Europe and annually export value tend increase even in 2005 it reached US$ 2.864.535.421,84 and volumes 116.335,9 tons.

In order to develop industrial sector growth, there are 17 industrial estates spreading in Tangerang, Serang, and Cilegon.

 
INDONESIAN-NETHERLANDS ASSOCIATION
INDONESIAN BENELUX CHAMBER OF COMMERCE
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