M I N I S T R Y O F T R A D E KEMENTE RIAN REPUBLIK INDONESIA PERDAGANG AN TRADE, INVESTMENT &...
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M I N I S T R Y O F T R A D E KEMENTE RIAN REPUBLIK INDONESIA PERDAGANG AN TRADE, INVESTMENT & TOURISM OPPORTUNITIES WITH INDONESIA Embassy of the Republic
M I N I S T R Y O F T R A D E KEMENTE RIAN REPUBLIK INDONESIA
PERDAGANG AN TRADE, INVESTMENT & TOURISM OPPORTUNITIES WITH
INDONESIA Embassy of the Republic of Indonesia Praha, Czech
Republic www.kemlu.go.id/prague Tel: +420257 214388
Slide 2
In 2010: 6.1% in 2011: 6.5% 2 Economic Growth...
Slide 3
Total GDP: US$ 928 Billion (in 2011) Per-Capita: US$ 3,495 (in
2011) GDP Composition by Sector: Industry (46.4%) Services (37.1%)
Agriculture (16.5%) Unemployment 6.6 % (in 2011) Inflation 4.5 %
(present) Interest rate 5.75% (present) Debt-to-GDP ratio 24.5% (in
2011) Balance of Payment surplus of US$ 11.9 Billion (in 2011)
International Reserves reached US$ 108,990 thousand, equivalent to
minimum 7.1 months of import and the repayment of short-term
government debts due. Foreign Direct Investment (FDI) inflows of
US$ 19,28 Billion (in 2011) Rating by S&P BB+ 3 Economic
Outlook
Slide 4
Fourth most populous in the world, 245 mio. Size of Middle
Class Economy = Market Population share of the middle class
increased from about 25% in 1999 to 43% in 2009. In absolute size,
the Indonesian middle class roughly doubled over the ten years,
from 45 million to 93 million. (ADB Report 2010 The Rise of Asias
Middle Class; 56.5% share of middle class to total population
(2010), shows an increasing number of wealthy middle class; 60%
productive age, average 40 years. 4
Slide 5
5 Fiscal Policy In 2011...
Slide 6
Rich Natural Resources most of them are still intact to be
processed into higher VA products Natural Gas CoalGeothermal Palm
Oil CocoaTinNickelBauxite Key Metrics About 165 TCF of reserves at
production rate 3 TCF pa World second largest exporter Home of 40%
of worlds resources (the largest in the world) Worlds largest
exporter; >19 mil tons per year At 770 thou tons/year, worlds 2
nd largest producer At 65 thou tons/year, worlds 2 nd largest
producer Own 12% of worlds reserves (4 th largest) Worlds 7 th
largest reserves; worlds 4 th largest production About 40% is
assumed feasible. Up to now, 1.200 MW has been developed. Will be
at least partially processed domestically by 2013 (new mining law:
4/2009) Abundant resources for gas- based energy and petrochemical
industries Abundant resources for gas- based energy and
petrochemical industries Not including Non- Conventional Gases,
from Coal Bed Methane and Coal Gassification Not including Non-
Conventional Gases, from Coal Bed Methane and Coal Gassification
Abundant resources for gas- based energy and petrochemical
industries Abundant resources for gas- based energy and
petrochemical industries Not including Non- Conventional Gases,
from Coal Bed Methane and Coal Gassification Not including Non-
Conventional Gases, from Coal Bed Methane and Coal Gassification
6
Slide 7
1. Export (to 218 Countries) Value : US$ 000 Source : Trade Map
Indonesia World Trade Balance 2. Import (from 222 Countries)
Slide 8
Indonesia Czech Trade Balance 200620072008200920102011 Changes
in Percentage 2010/2011 Total
Trade260,37318,46327,51313,89384,74474,67 23.36% Import from Czech
41,2870,3962,2551,6661,3588,85 44.77% Export to
Czech219,1248,06265,26262,23323,39385,82 19.30%
Balance177,37177,67203,02210,56262,04296,97 13.33%
Slide 9
Indonesia Czech, Export & Import 2011 Top Commoditties
Traded Export to Czech HS CodeCommodityUSD (ths) 0Food and live
animals16,147 1Beverages and tobacco186 2Crude materials, inedible,
except fuels54,741 4Animal and vegetable oils, fats and waxes7
5Chemicals and related products, n.e.s.6,743 6Manufactured goods
classified chiefly by material27,873 7Machinery and transport
equipment185,164 8Miscellaneous manufactured articles94,954
TOTAL385,815 Import to Czech HS CodeCommodityUSD (ths) 0Food and
live animals692 2Crude materials, inedible, except fuels9,675
5Chemicals and related products, n.e.s.15,005 6Manufactured goods
classified chiefly by material12,666 7Machinery and transport
equipment45,617 8Miscellaneous manufactured articles5,197
TOTAL88,852
Slide 10
4. List of Products Exported by Indonesia to Worldwide (30 of
1119 products)
Slide 11
5. List of products imported by Indonesia from worldwide (30 of
97 HS : 2 digit) V : US$ 1000 Source : Trade Map
Slide 12
INDONESIA AS A GREAT PLACE TO INVEST invest in Invest in
remarkable indonesiaInvest in remarkable indonesiaindonesia Invest
in remarkable indonesia indonesia Invest in Invest in remarkable
indonesia indonesia Invest in able indonesiaInvest
Slide 13
The Investment Coordinating Board of the Republic of Indonesia
13 Top 10 FDI to Indonesia by Countries 2011 (in US$. million)
Source: BKPM Czech Republic investment realization was nil in
2011
Slide 14
The Investment Coordinating Board of the Republic of Indonesia
14 Czech Republic Investment Realisation in Indonesia Source: BKPM
Year Czech Investment (US$. million) World FDI Investment (US$.
million) Contribution to World FDI (%) 2005 0.288,911.000.00 2008
3.2514,871.400.02 2010 33.3916,214.000.20
Slide 15
The Investment Coordinating Board of the Republic of Indonesia
15 Czech Republic Investment Realisation in Indonesia by Sector
Source: BKPM, 2012 YearSector Realisation (US$. million) Number of
Projects 2005 Other services0.282 2008 Trade services2.501 Basic
metal, machineries and electronic industry 0.751 2010 Hotel and
restaurant33.392
Slide 16
1.Proven resilient economy: Macroeconomic condition remains
strong with robust growth: Market-based macro-economic policy. Free
foreign currency exchange regime. 2.Stable political transition
towards democracy, respecting human rights and upholding supremacy
of law. 3.Improved business climate: improving international
perception and positive economic forecast. 4.Strategic geographic
location and strong global presence. 5.Abundance of diversified
natural resources. 6.Increasingly skilled labor. 7.Closer EU Asian
relations in the future. 16 Why In Indonesia?
Slide 17
The Investment Coordinating Board of the Republic of Indonesia
17 Incentives Exemption of import duty on machinery, goods and
materials for business activities in the field of Industries that
produce goods and/or Industries that produce services. It is
granted as long as they are: Not produced domestically; Produced in
the country but do not meet the required specifications, or
Produced in the country but not sufficient for industry needs.
Import Duty VAT Exemption VAT Exemption on import and/or delivery
of certain taxable goods that are strategic, including capital
goods, animal feed and/or raw materials; seeds/seedlings of
agricultural goods, plantation, forestry, animal husbandry, animal
husbandry, fishery.
Slide 18
The Investment Coordinating Board of the Republic of Indonesia
18 Incentives Tax Allowance Tax Allowance for an investment up to
Rp 1 Trillion (approx. US$ 111.1 million) in certain business
activities and/or certain locations: A reduction of up to 30% of
total investment value on annual net taxable income, spread over 6
year period. Depreciation and amortization accelerated to fixed
intangible assets (building and non-building) Income Tax on
dividends paid to foreign tax subject to a 10% or a lower rate
according to double taxation avoidance agreement Compensation for
losses of more than 5 years but not more than 10 years. Examples of
high priority business activities and investment locations in the
national scale include: 1) Cocoa industry, food and confectionary
industry containing cocoa 2) Development of the eastern part of
Indonesia: - Salt industry in the East of Nusa Tenggara -
Manufacturing industry of brass ingot, aluminium ingot, copper
ingot, and other basic non-iron metals in Kalimantan, Papua,
Maluku, and Sulawesi Provinces.
Slide 19
The Investment Coordinating Board of the Republic of Indonesia
19 Incentives Tax Holiday Tax Holiday for an investment up to Rp 1
Trillion (approx. US$ 111.1 million) in certain business
activities: 5 Priority Sectors: Basic metals, Oil Refinery and/or
Organic Basic Chemical which use oil & gas, machinery industry,
industrial in the field of renewable resources, and communications
equipment industry. The facility : - Tax exemption over 5-10 years
period effective from the commercial production of the investment
project (100% investment realisation). - On top of the above
exemption, a 50% reduction of Corporate Income Tax for 2 years
period which brings it down to 12.5%.
Slide 20
The Investment Coordinating Board of the Republic of Indonesia
20 Doing Business Source: BKPM, 2012 FDI in Indonesia has to set up
an Indonesian legal entity. FDI has to be initially registered with
the Indonesia Investment Coordinating Board (BKPM) and subsequent
permits by the central and regional governments where the
investments take place. Indonesia strives to improve the investment
climate by simplifying the regulatory system for business Time in
starting new investment has been reduced from 105 days to 30 days
since 2007. Use of services from local lawyers or consultants to
set up your business is recommended.
Slide 21
21 Source: Tax Board, Ministry of Finance Primary types of
Taxation: 1.Corporation Income Tax: 26,6% 2.Individual Income Tax:
10,6% 3.Value Added Tax (VAT): 10% 4.Sales Tax on Luxury Goods: 10%
75% 5.Tax on Land and Buildings: 0,5% 6.Stamp Duties: IDR. 6000,00
(eqv 50 cents Euro) 7.Transfer Tax 8.Excise Duties TAXATION
Slide 22
Nine Core Areas for Investment First: Infrastructure Building
(seaports, toll-roads, railways, power plants, drinking water)
Second: Transportation Third: IT and Telecommunications Fourth:
Food Industry and its R&D Fifth: Energy Industry, including
renewable industry Sixth: Mining Industry Seventh: Manufacturing
Industry Eighth: Creative Industry Ninth: Training and Education,
Research, Development and Innovation. 22
Slide 23
Slide 24
POPULAR DESTINATIONS EMERGING DESTINATIONS Batam & Bintan
Toba Lake (North Sumatra) Jakarta Bromo (East Java) Yogyakarta
& Borobudur Bali Lombok & Gili Islands (West Nusa Tenggara)
Toraja, Makassar (South Sulawesi) Bunaken (North Sulawesi)
Slide 25
ADVENTURE Culture Spa Golf Diving MICE Bohorok National Park
(Orang Utan) Mentawai (Surfing) Way Kambas (Elephant) Bali Barat
National Park (Bird Watching) Ujung Kulon N.P. (Rhinoceros) Merapi
& Merbabu (Hiking) Komodo Island Jayawijaya Bandaneira Rinjani
Tanjung Putting NP (Orang Utan)
Slide 26
Adventure CULTUR E Spa Golf Diving MICE Toraja Yogyakarta &
Borobudur Papua West Sumatera Banten Tengger in Bromo Bali
Sumba
Slide 27
Adventure Culture SPA Golf Diving MICE Bintan, Riau Islands
Bali Yogyakarta West Java East Java Lombok Central Java
Jakarta
Slide 28
Adventure Culture Spa GOLF Diving MICE Jakara Bandung Bali
Batam & Bintan Medan Surabaya Papua
Slide 29
Adventure Culture Spa Golf DIVING MICE Raja Ampat Karimunjawa
Bali Komodo Island Wakatobi Flores Morotai Nias Pulau Weh, Aceh
Bunaken
Slide 30
JAKARTA SURABAYA YOGYAKARTA BATAM BALI LOMBOK BALIKPAPAN
PALEMBANG MEDAN PADANG BANDUNG MAKASSAR MANADO SOLO INDONESIAN MICE
DESTINATIONS