The Second Golden Era of Indonesia-Russia Relations

H.E. Mr. M. Wahid Supriyadi

Ambassador of the Republic of Indonesia to the Russian Federation

and the Republic of Belarus

St. Petersburg, 14 of May 2018

The First Golden Era RI–USSR

Gelora Bung Karno Stadium

National Monument Monument of Hero/Tugu Tani

Persahabatan Hospital Statue of Youth Krakatau Steel Manufacture

Indonesia-Russia’s strong relations through historical objects in Indonesia

The Second Golden Era

President Jokowi visited Sochi on 18-20 May 2015 (20th Anniversary of ASEAN-Russia Summit) •5 MoU on Defence, Archives (National & Foreign Ministry), Cultural, and IUU Fishing were signed; •Commitment of USD 20 billion investments; •Commitment to increase bilateral relations.

Facts on Indonesia 1. Largest Moslem population 2. Largest Archipelagic State (17,508 islands) 3. The most diverse nation (over 600 ethnic groups with

distinct languages) 4. Third biggest democracy 5. The world’s fourth largest country by population (258

million) 6. 15th biggest economy

The Biggest invisible thing on earth? It’s called Indonesia and it is waking up. (Elizabeth Pisani-The Guardian 21 Nov 2016)

6

Russia Indonesia

1. Total area 17,075,400 sq km (1st ) 1,904,443 sq km (16th)

2. Population 146.5 million 261.9 million (2017 est)

3. GDP USD 1,28 trillion USD 1.004 trillion (2017)

4. GDP per capita USD 10,038 (2017) USD 3,858 (2017)

5. Size of economy 12th 15th

6. Economic growth 0.6% 5.07%

7. Global Power Index 2nd 14th

8. Global Competitiveness Index 43rd 36th

9. Global Peace Index 151st 52nd

10. Trading partner China, Germany, Netherlands China, US, Japan, Singapore

Facts & Figures Russia and Indonesia

Sources: the economist, world bank, Institute for Economics and Peace, Global Firepower, and Federal Customs Service

Bilateral Cooperation on TTI (trade, tourism & investment) • Trade volume Indonesia-Russia (by Federal Custom Service of Russia):

- 2016 USD 2.61 billion - 2017 USD 3.27 billion (increase 25.28%)

• Russian tourist to Indonesia (by Ministry of Tourism of Indonesia): - 2016 80.514 - 2017 110.529 (increased 37.28%)

• Russian investment in Indonesia (by Indonesian Investment Coordinating Board): - 2016 USD 5.493 million (32 projects) - 2017 USD 7.4 million (49 projects)

Bilateral Trade Between Indonesia and Russian Federation 2017

Indonesia’s Export to Russian Federation (USD Million) No Product Code Product Label Value 1 8419 Machinery, plant or laboratory equipments 704,021 2 1511 Palm oil and its fractions, whether or not refined (excluding

chemically modified) 551,476

3 4001 Natural rubber, balata, gutta-percha, guayule, chicle and similar natural gums, in primary forms or in plates, sheets or strip

139,751

4 1513 Coconut "copra", palm kernel or babassu oil and fractions thereof, whether or not refined, but not chemically modified

97,222

5 0901 Coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee in any proportion

93,500

6 1804 Cocoa butter, fat and oil 75,702 7 6403 Footwear with outer soles of rubber, plastics, leather or composition

leather and uppers of leather 56,683

8 8504 Electrical transformers, static converters, e.g. rectifiers, and inductors; parts thereof

47,551

9 1516 Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared

43,154

10 6404 Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials (excluding toy footwear)

35,102

Source: Trademap

Machinery

Bilateral Trade Between Indonesia and Russian Federation 2017

Russian Federation Export to Indonesia (USD million)

No Product Code Product Label Value 1 1001 Wheat and meslin 200,973 2 3104 Mineral or chemical potassic fertilisers (excluding

those in tablets or similar forms, or in packages with a gross weight of <= 10 kg)

148,427

3 7207 Semi-finished products of iron or non-alloy steel 119,355 4 2701 Coal; briquettes, ovoids and similar solid fuels

manufactured from coal 57,118

5 7601 Unwrought aluminium 47,448 6 2709 Petroleum oils and oils obtained from bituminous

minerals, crude 40,416

7 8411 Turbojets, turbopropellers and other gas turbines

23,094

8 9999 Commodities not elsewhere specified 21,951 9 2524 Asbestos (excluding products made from asbestos)

21,122

10 4804 Uncoated kraft paper and paperboard 16,875

Source: Trademap

No Product Code Product Label Precent change in 2017 over 2016

1 94 Furniture; bedding, mattresses 185% 2 24 Tobacco and manufactured tobacco substitutes 164% 3 89 Ships, boats and floating structures 142% 4 80 Tin and articles thereof 133% 5 55 Man-made staple fibers 112% 6 29 Organic chemicals 73% 7 9 Coffee, tea, maté and spices 66% 8 39 Plastics and articles thereof 65% 9 95 Toys, games and sports requisites; parts and accessories

thereof 56%

10 46 Rubber and articles thereof 46%

10 Best Export of Indonesia

10 Best Export of Russia

No Product Code Product Label Precent change in 2017 over 2016

1 84 Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof

1,290%

2 72 Iron and steel 743% 3 10 Cereals 592% 4 76 Aluminum and articles thereof 107% 5 40 Rubber and articles thereof 80% 6 85 Electrical machinery and equipment and parts thereof 47% 7 48 Paper and paperboard; articles of paper pulp, of paper or

of paperboard 41%

8 29 Organic chemicals 30% 9 31 Fertilizers 22% 10 27 Mineral fuels, mineral oils and products of their

distillation; bituminous substances; mineral waxes 17%

Reforms in Indonesian

• Indonesia gains investment grade from all reputable international ratings agency: S&P, Moody’s, Fitch, JCRA and R&I. By 2030 Indonesia will become 5th biggest economy (CNBC).

• Ease of Doing Business 2018 is improved from 91 to 72. Indonesia also recognized as one of the Top Improvers. Currently Indonesia position is above India, Brazil and Philippines.

• Indonesia and Switzerland are considered as the countries with the highest level of trust to the Government.

• Indonesia position improves from 91 to 36 in Global Competitiveness Index 2017-2018. 9 of 12 pillars of measurement is getting better score such as: institution, infrastructure, macroeconomic, health and primary education, technological readiness, business sophistication.

Trade Balance Indonesia-St. Petersburg (2017)

Indonesia’s Import from St. Petersburg

Total Trade: USD 136,588,000 Indonesia’s Import from St. Petersburg: USD 58,262,000 Indonesia’s Export to St. Petersburg: USD 78,326,000

No. HS Code Product Value 1. 10 CEREALS 43,144 2. 48 PAPER AND CARDBOARD; PRODUCTS

FROM PAPER WEIGHT, PAPER OR CARDBOARD

9,167

3. 76 ALUMINUM AND ITS PRODUCTS 2,684 4. 27 FUEL MINERAL, OIL AND PRODUCTS OF IT;

BITUMINOUS SUBSTANCES 1,812

5. 28 PRODUCTS OF NON ORGANIC CHEMISTRY; COMPOUNDS NON ORGANIC OR ORGANIC PRECIOUS METALS, RARE-EARTH METALS, RADIOACTIVE ELEMENTS OR ISOTOPES

928

Trade Balance Indonesia and St. Petersburg (2017)

Indonesia’s Export to St. Petersburg

No. HS Code Product Value 1. 15 FATS AND OILS OF ANIMAL OR VEGETABLE ORIGIN AND THE

PRODUCTS OF THEIR SPLITTING 36,742

2 84 REACTORS NUCLEAR, BOILERS, EQUIPMENT AND MECHANICAL DEVICES

5,235

3. 24 TOBACCO AND INDUSTRIAL SUBSTITUTES OF TOBACCO 3,340

4. 94 FURNITURE; BED ACCESSORIES, MATTRESSES 3,047

5. 38 OTHER CHEMICAL PRODUCTS 2,972 6. 56 VATA, FELT OR FETER AND NONWOVEN MATERIALS; SPECIAL

YARN; BERRIES, ROPES, ROPES AND CABLES AND ARTICLES THEREOF

2,830

7. 85 ELECTRICAL MACHINES AND EQUIPMENT, THEIR PARTS 2,465

8. 80 TIN AND ITS PRODUCTS 2,409 9. 48 PAPER AND CARDBOARD; PRODUCTS FROM PAPER WEIGHT 2,320

10. 21 MISCELLANEOUS FOODSTUFFS 1,279

Strategic Partnership

Underway

Strengthening Cooperation

on Politics and Defence

Strengthening people-to people contact in multi- sector activities

FTA between Indonesia and EurAsian Economic Union

What’s Next

? Increasing trade,

industry, investment

cooperation

Whats’s Next?

High demand of Cereals/ Wheat from Indonesia Energy Cooperation. Indonesia needs 35.000 MW. Huge Russian energy supply such as oil and gas Indonesia is biggest supplier of palm oil. High demand of coffee and tea from Russia. Transfer of technology and knowledge in IT Sector

Potential Economic Cooperation in the Future with St. Petersburg

Terima Kasih! Спасибо большое!

До встречи в Индонезии!