Anasia silviati

Indonesia The Largest Economy in South East Asia

Anasia SilviatiSenior Commercial Specialist

U.S. Embassy - Jakarta

Indonesia - The Largest Economy in South East Asia

A Giant Market

Population 4th Largest Country in the World237 Million people - 5% Chinese

IndonesiansArchipelago of 17,000 islandsMore than 300 ethnic groups


A Country at the Crossroads• Strategic location at crossroads of

Asian sea trade

• A member of the G-20

• #1 for Twitter user penetration in the world

• #2 for Facebook users in the world (behind US)

• More 3G subscribers than China•Households with US$5,000 to US$15,000 annual disposable income expected to increase from 36% to 58% of population by 2020.•60 million Indonesians projected to move up into the middle class in the next 10 years.


Democracy and Renewed Growth(“The Year of Living Dangerously “Eat Pray Love”)

• 2010 Growth and Democracy strengthened Obama “Comprehensive Partnership”

Expanded growth to 6.1%• 2009 Re-election of Susilo Bambang Yudhoyono

- Steady growth at 5.2%• 2004 Election of Susilo Bambang Yudhoyono

– growth returns to 6%+• 1998 - 2004 Restructuring economic & transition to

democracy• 1997-1998 Asian Financial Crisis – GDP falls 14%• 1965 – 1997 Suharto Era – annual growth of 7-8%


Security Conditions Improving

then …..

October 12, 2002 Bali Bombings Kill 202 August 5, 2003 Marriott Bombing September 2004 Australian Embassy Bombing October, 2005 Bali Bombings Kill 23

now …..

2006 – present No Bombings Hundreds of Terrorists Jailed

May 2008 Travel Warning Lifted

Present Terrorists Being Contained


GDP Growth

PerCapita GDP

2009 = $4,149

2010 = $4,346

2011*= $4,657

*estimated

Perc

enta

ge


2007 2008 2009 2010 2011 (forecast) 2012 (forecast)

GDP Growth 6.34% 6.00% 4.55% 6.00% 6.40% 6.70%

0.50%

1.50%

2.50%

3.50%

4.50%

5.50%

6.50%

7.50%

6.34%

6.00%

4.55%

6.00%6.40%

6.70%

GDP Growth

Year

2007 2008 2009 2010 2011 (est) 2012 (est)

Consumer price inflation 6.03% 9.78% 4.81% 6.96% 5.30% 5.30%

1.00%

3.00%

5.00%

7.00%

9.00%

11.00%

6.03%

9.78%

4.81%

6.96%

5.30% 5.30%

Consumer price inflation

Year

Inflation Is Relatively LowPe

rcen

tage


2007 2008 2009 2010 (est) 2011 (est)

Exchange rate Rp9,143 Rp10,950 Rp10,312 Rp8,996 Rp8,942

Rp1,000

Rp3,000

Rp5,000

Rp7,000

Rp9,000

Rp11,000

Rp9,143

Rp10,950

Rp10,312

Rp8,996

Rp8,942

Exchange rate

Exchange rate

Year

Steady Exchange RateR

upia

h to

$1.

00


Japan; 10.17% Singapore; 16.06%

USA; 7.32%

China; 14.46%Korea; 4.90%India; 2.28%

Thailand; 4.76%

Malaysia; 5.87%

Other; 34.18%

U.S. - Indonesia Trade: Indonesian Imports

• In 2009, U.S. was the 4th Largest Source of Indonesian imports after “Singapore”, China and Japan

• Worldwide, rank of Indonesia as U.S. Export Destination in 2010 was 32th (0.5% of U.S. Export, Jan-Oct 2010)

• Rank of Indonesia as Exporters to the U.S. in 2010 was 24th (0.86% of U.S. Imports, Jan-Oct 2010)

Source: Indonesian Statistic


In 2010, U.S. Exports to Indonesia = $6.94 Billion

U.S. Exports to Indonesia

Transporta-tion Equip-

ment; 26.20%

Agricultural Products; 20.60%Chemicals; 13.80%

Food Manu-factures; 10.60%

Other com-modities and transaction;

28.80%

Source: U.S. Dept of Commerce - TradeStats Express



• Demand increase 8%/year. By 2018 need additional of 57.4 GW Imported Products $809 Million (Estimated 2010). By 2010-2014, investment will reach $50.4 Billion

• Oil and Gas Investment $13.5 Billion in 2010 and will reach $14.9 billion in 2011U.S. products $324 million in 201039 New blocks will be offered in 2011

• GOI issued new Mining Law on January 2009Imported products $1.06 billion in 2010Investment reached $3.2 billion in 2010

Energy & Mining:Market Opportunities


Ignatius Indriartoto

• 19 scheduled and 41 chartered airline companies

• Number of domestic passengers reached 48 million in 2010 and will increase by 15% in 2011

• Imports of aircraft & parts in 2010: $1.5 billion

• U.S. products hold 80% market share

• Opportunities: leasing commercial aircraft, upgrading airports facilities, supplying spare parts, private jets

• GOI issued new Aviation Law which fully ratifies the Cape Town Convention US Exim Bank Finance will be available for Indonesia’s purchase for US aircraft

Aviation :Market Opportunities

Anasia Silviati


• Market size $7B (2010), approx. 75% products, 25% services

• US origin – 20% of products, 5% of services

• Growth – 25-30%

• 10M fix line – 4% penetration

• 180M cell – 76% penetration

• Imports – 80%

• Broadband penetration : 3%

• Best products : WiMax base stations, ancillary and transmission equipment, switching, smart handsets

• Best services : network optimization, billing, value added services, financial services, content providers

Telecommunication Equipment and Services:

Kalung Riang

Market Opportunities


• Market size $3.7B (2010), approx 50% products, 50% services

• US origin – 40% products, 5% services

• Growth – 30-35%

• Imports – 80%

• PC penetration – 4%

• Internet penetration (Incl, via handsets and internet kiosk) – 15-20%

• Broadband penetration : 3% (cable + wireless)

• Best products : low cost notebooks and Wimax BWA BS

• Best services : education contents and remote services (tele medicine, e-government software)

Information Technology :

Kalung Riang



U.S. Higher Education :

•First priority of U.S. Embassy in Jakarta, Indonesia

•U.S. Higher Education Mission in April bringing 56 U.S. institutions, attracting thousands of prospective Indonesian students and families

•Currently, 6,943 Indonesian students in the U.S., making Indonesia as the top 18th country sending students to USA

•Majority of Indonesian students are at Undergraduate level

• In FY 2011, student visas issuance increased 25 percent from FY 2010 to the highest figure within 10 years




• Opened to foreign investment in 1998

• Sales in 2010 reached $9.68 billion

• Most foreign investment is in the hypermarket sector

• Foreign retailers account only 8 percent of outlets, but capture 40 percent of the total retail sales

• U.S. retailers are strong in the specialty shop and minimarket/convenient stores

Retail :Market Opportunities



Franchises :

• Home to 278 foreign and 92 local franchises

• Best prospective sub-sectors: Food and Beverages, Education products and services (including children’s education), Retail and Business Services.

• American franchises dominate, but strong competition come from Singapore, France, Australia, the United Kingdom, Thailand, and domestic franchises

• Estimated future growth around 5 percent.


Sharon Chandra


• Estimated market was $573 million in 2010

• 2010 Imports estimate= $543 million: over 90 percent of the market are imported products, over 20 percent is from U.S.

• Competitors: Japan, Germany, China, Korea

• Best Prospects: Ventilators, Anesthesia equipment, Patient monitoring equipment, Diagnostic equipment and disposable products

Medical Equipment Supplies:


Sharon Chandra



INFRASTRUCTURE PROJECTS79 PROJECTS WORTH Rp 53.40 TRILLION OFFERED WITH THE PPP FINANCING SCHEME4 PRIORITY PROJECTS:1. CENTRAL JAVA COAL FIRED PLANT, 2 x 1,000 MW, $3.2 billion Developer : consortium Adaro, J Power, Itochu

2. SOEKARNO – HATTA AIRPORT MANGARAI STATION RAIL LINK Waiting for new regulation

3. PURUK CAHU – BANGKUNANG COAL RAILWAY IN CENTRAL KALIMANTAN Finished prequalification

4. UMBULAN WATER SUPPLY IN EAST JAVA Finished prequalification

Anasia Silviati

ROAD AND TOLL ROAD: Development of 700 km expressway, including Trans-Java highway and the Jabodetabek expressways.

PORT: 6 potential projects worth US$ 4.1 billion, including the development of Maloy International Port (US$ 1.8 billion).

AIRPORT: 8 airport projects worth US$ 2.2 billion, including the Kertajati International Airport in West Java and New Bali Airport.


MASTER PLAN FOR THE ACCELARATION AND EXPANSION OF INDONESIA’S ECONOMIC

DEVELOPMENT (MP3EI) 2011 – 2025Aimed for: One of the world’s 10 biggest economies by 2025, taking GDP to $4.5 trillion and increasing the per capita income from $3000 now to $15,000.

19 MP3EI projects worth Rp. 55.01 trillion included • Bali`s Ngurah Rai airport (Rp1.2 trillion)

• 9,981 km of Sumatra`s Fiber Optic Nusantara Super Highway Ring(Rp87.4 billion)

• The Java-Kalimantan-Sulawesi-Denpasar-Mataram fiber optic project (Rp86 billion)

• The Mataram-Kupang Cable System (Rp6.8 trillion)

• Floating Storage and gas project Unit in West Java (Rp500 billion)

• Three units of 3.500 DWT tanker ships in Surabaya and Lampung (Rp109.49 billion)

• The upgrading project of Pertamina`s lubricating oil unit in Jakarta (Rp103.55 billion)

• A fuel oil transit terminal (depot) in Bau-Bau (Rp337.1 billion)

• A rig project in Jakarta (Rp393 billion)

• Alumina chemical grade project in West Kalimantan (US$450 million)

• Sei Mangkei industrial estate in North Sumatra (Rp3,68 trillion)

• Integrated steel in Banten (Rp26. trillion)

• The steel project South Kalimantan (Rp1.2 trillion)

• 6.000 DWT tanker ship in Jakarta (Rp46.1 million)

• 17.500 DWT tanker ship, stage I, (Rp245.1 million) and stage II (Rp294.1 billion)

Anasia Silviati

U.S. Commercial ServiceU.S. Embassy Jakarta

Services Offered :

• Single Company Promotion

• Gold Key Service

• International Partner Search

• Market Research

• Video Conferencing

• Company Background Checkwww.export.gov/indonesia

Email: [email protected]


http://www.export.gov/indonesia

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Indonesia The Largest Economy in South East Asia

Anasia SilviatiEmail: [email protected]

Thank You

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