The nature of Indonesia were geographically underdeveloped and lack of infrastructure except Java. The richness of its natural resources mostly are unexplored. This condition have been attract investor or multi national companies to invest their capital in natural resources business, such as oil, mining, farm & plantation and geothermal. The population and economic growth of the country for the last decade are very significant, therefore the needs for infrastructure increase rapidly especially electricity, harbor, airport and roads. Infrastructure development for Eastern Indonesia will be very busy as Government campaign to go to the east.

The companies such as mining and oil exploration, farm & plantation, power plant and other infrastructure builder where main operation in rural or remotes areas, often facing difficulties when start their operation. The hurdle are corning from insufficient supporting facilities especially electricity, communication and also camp and foods. The other constraints are lack of knowledge and information about operating area situation, including nature and people. These condition makes the companies spent more time and money to make operation preparation. This situation was experienced by almost all companies who operates in rural and remote areas.

Based on above reason, there is an opportunity to enter support service and logistic provider business. The market is very big, for general mining only, up to may 1996 there are 140 new mining concession were approved with acreage to explore more than ten million hectares For budget year 1996/1997, PLN have been approved 23 projects where all are located outside Java. The service that offer to these companies will include all support and logistic, service, such as turn-key camp & site office, site catering, transportation (land, marine and air), and man power. The cost of services will be cheaper rather than their own as this service based on network operation with other party.



Research Location: -

Supervisor: -

Accepted on 1997



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