INDONESIA s BUSINESS & INVESTMENT PROSPECTS

Transcription

1 INDONESIA s BUSINESS & INVESTMENT PROSPECTS Indonesian Chamber of Commerce & Industry Committee for Middle East & OIC Countries 23 April 2012 Bali, Indonesia 1

2 Indonesia s Leading Industries The biggest economy of South East Asia, Indonesia smoothly escaped the brunt of the 2008 global recession. Its diverse industrial portfolio contributes the major share of the country s gross domestic product, at 47.1%. Indonesia s industry sectors provide employment to 18.6% of the total workforce of the country. Some of the major industries of Indonesia include: Tourism Textile Mining Oil & Gas Agriculture Construction Pharmacy Ceramics Auto Tire 2

3 Tourism Indonesia is home of enchanting tourist destinations here are to name some: Kuta Beach, Bali Tana Toraja, South Sulawesi Raja Ampat, Papua Lake Toba, North Sumatera Komodo, Komodo Island Borobudur Temple, Yogyakarta Special District Mount Bromo, East Jawa And many others 3

4 In our +/- 117 thousand island archipelago of Indonesia, existing and untapped tourist destination spots and its complementing projects are still abundant We specifically welcome private domestic and foreign investment for our tourism facility and infra-structure development Hotels & bungalows Family recreation facilities Restaurant Handicraft Shop Spa & Massage Sport Club Beaches Roads & Bridges Airports 4

5 International tourist visiting Indonesia reached 6,925,192 by November 2011 figure. This number indicates an increase of 9% compared to the figure of same period in 2010, which was 6,358,723. They came into Indonesia through 19 entry points from the capital s Soekarno-Hatta Airport to the Tanjung Balai Karimun Seaport at the Riau Islands. Charts of Visits of foreign tourists in

6 As one of the world s large scale manufacturers of textiles and textile products, Indonesia has the potential to improve its world rank. Potential is reflected in the number of machines owned. The yarn spinning industry is the fourth largest in the world, a stunning 7.85 million spinning points. In fact, in today's textile industry and textile products (TPT) production, Indonesia is ranked the world's number 9 (downstream), whereas in textiles (upstream) we are ranked 11 th in the world. Textile 6

7 Indonesia textile products have always fought for their existence in order to compete with textile products from abroad, Indonesia has a typical range of textile products. Indonesian original textile products are as follows: 1. the famous batik 2. Songket or saroong 3. Traditional woven clothing, etc. 7

8 Year Export and Import Indonesian Textile & Garment Export Textile Import Textile Export Garment (in Million USD) Import Garment ,814 1,998 6,075 38, ,140 5,100 6,706 38, ,260 3,500 7,403 41, ,190 2,300 10,500 43, *) 11,210 2,550 11,176 44,65 Source: Indonesian Bank, the Indonesian Textile Association *) Estimate The Indonesian export value of textile and textile products (TPT) is targeted to reach USD 13.7 billion, or IDR 123 trillion (9.000/USD exchange rate) in 2012, up about 5% from a year ago. Indonesian Textile Association (API) said the nation's textile exports in 2011 reached U.S. $ 13.1 billion. 8

9 Mining Industry Indonesia s mining industry is expected to grow rapidly in the next five years and become increasingly strategic sector for Indonesia. Indonesia is the fourth largest copper producer in the world, as well as the world s second largest for tin and nickel Coal mining business in Indonesia appeared to be profitable. From year to year, national coal production and exports continued to rise. As of October 2011 the amount of coal for export reached 250 million tons and some 50 million tons more for domestic use Beginning in 2010, the mining industry value reached over 73 billion dollars, which accounts for about 11 percent of Indonesia's gross domestic product. 9

10 Oil & Gas Industry Indonesia is blessed with abundant natural resources. Oil and gas are two of them. resources are estimated at billion barrels and TSCF spreaded all over Indonesia, it is to make Indonesia an attractive investment destination in the oil and gas sector. Natural Gas Production Natural gas production in 2010 amounted 9336 MMSCFD, an increase of 1034 MMSCFD from 8302 MMSCFD in The increase in production is partly due to the beginning of the exploitation of some new gas fields and optimalization of production. 10

11 Oil Market Conditions In the past 10 years, domestic fuel consumption showed an average increase of 4.8% per year. With the increasing population and improvement in domestic economic growth, consumption of fuel will continue to rise. The transport sector is still the largest users of domestic fuel which accounts for more than 46%, followed by the household sector and power sector industry. In 2020 an estimated gas demand will reach 10.7 TCF (low scenario) or 12 TCF (high scenario). 11

12 Agriculture Indonesia is the world s largest producer of palm oil as well as a leading global producer of other high value commodities such as cocoa, rubber and coffee. The country is rich in fertile land ideal for growing diverse range of crops for both export and domestic consumption. However, it is export crops that have come to dominate land use and employment to take advantage of peaks in global commodity prices. The country is still heavily reliant on imports for staple goods such as wheat, soybeans and sugar which have raised the issue of food security on the national agenda as world food prices have continued to climb. Improving the productivity of government and privately owned plantations, in addition to small hold farmers through adoption of technology and land consolidation is a further issue to contend with that requires striking a delicate balance in a sector that employs over 40% of the workforce. 12

13 Food & Beverage o o o The food and beverage sector is where Indonesia s local companies have made a mark in value added products both domestically and worldwide. The growth of the sector has been fuelled by rising incomes and increased spending on food by the middle class that now make up to a 30 million person market. Urban lifestyles give rise to a more varied diet which is supported by the development of retail infrastructure in the form of malls and hypermarts 13

14 Pharmaceutical Indonesia s pharmaceutical sector has been growing steadily with double digit compound growth since 2009 and projections of 14% growth for 2011 according to the Indonesian Pharmaceutical Association. The high growth figures are a reflection of the rising disposable incomes of the population, but placed into context the value of the market itself is very small for a country of 240 million people. The lack of healthcare coverage, low quality of services on offer and the high cost of drugs relative to average wages has given rise to trends such as self medication and going abroad for treatment for those who can afford it. Considering the size of the market and changes in lifestyle, the sector is poised for considerable growth but manufacturers face a challenge in lack of local raw material supply, increased competition in the generic drugs market, regulatory barriers holding back international investment and a lack of innovation that has marred the sector. 14

15 INFRASTRUCTURE Currently, assets of the existing roads in Indonesia reaches 372,191 km consisting of 697 km along the motorway, national road 34,628 km long, provincial road along km and Road District / City along the km. Starting at the end of 2009, assets of non-national road toll increases by 3,999 km to 38,628, due to the reclassification of the function and status of the road. The entire length of the road network is an asset that needs to be maintained to preserve the condition and still functional 15

16 TIRE INDUSTRY 1. Indonesia`s tire industry has grown rapidly in the past several years and this year it is expected to increase by 15 percent partly attributable to the rapidly growing investment in the automotive industry, high sales of vehicles and relatively high increase in the country`s economic growth. 2. Increase in car and motor vehicle sales and relative high economic growth gave a boost to the development of tire industry at home. After all, Indonesia is known as one of the biggest rubber producer in the world with a total production of 2.92 million tons in 2010.

17 CERAMIC TILE By the end of the 12th century, the use and manufacture of Ceramic Tiles had spread across Italy and Spain and into the rest of Europe. Till that time they were mainly used to decorate the floors of Cathedrals and Churches. The skill had eventually vanished from Europe in the 16th century following the reformation. But the decorative wall tile art had survived in Turkey and the Middle East and the Delft tiles art survived in Holland Industrial property, which has steadily grown in recent years, will help boost the domestic ceramics industry. Demand for ceramic tiles, ceramic sanitary ware and other ceramic products will increase. Ceramic production and Indonesia s production capacity increased. A number of manufacturers has also planned for capacity expansion. 17

18 Indonesian Chamber of Commerce & Industry Committee for Middle East & OIC Countries THANK YOU 18