Doing Business in Indonesia 2020 Chile Indonesia Overview
Doing Business in Indonesia 2020 Chile
Indonesia Overview General Overview • Largest archipelago in the world • Population: 267 million (4 th) • 300 ethnic groups • 700 languages • • More than 17, 000 islands Land: 1. 9 million km 2 Sea : 5. 8 million km 2 Coastline: 80, 000 km • Provinces (States): 34 • Capital City: Jakarta • Currency: Rupiah 5271 km; 3 timezones Kadin Indonesia - Business Service Desk 2
Indonesia Overview Economic Overview Indonesia's Stable Growth 2005 -2019 10 • GDP: USD 1, 000 billion (16 th) 8 • Stable GDP Growth % 6 • Debt to GDP (2018): 29. 5% • 60% working age population 4 2 0 • USD 500 billion market 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 -2 • USD 126 billion of foreign exchange reserve -4 Indonesia Kadin Indonesia - Business Service Desk World High Income Middle Income Low Income 3
Indonesia Overview Economic Overview Indonesian Economy Year 2016 2017 2018 2019 GDP growth (%, yoy) 5. 03 5. 07 5. 17 5. 02 Inflation (%, yoy) 3. 02 3. 61 3. 13 2. 70 Interest rate (%) 6. 0 4. 56 5. 1 5 Government Debt (% of GDP) 27. 9 28. 7 29. 8 30. 2 Balance of Trade (USD billion) 8. 53 11. 84 -8. 69 -3. 23 Source: ADB, Ministry of Finance, Ministry of Trade Kadin Indonesia - Business Service Desk 4
Indonesia Overview Investment Overview 2019 SECTORS INVESTMENT (USD MILLION) TOTAL PROJECTS TOTAL INVESTMENT (USD Million) Electricity, Gas, and Water Supply Transportation Warehouse and Telecommunication Metal, Except Machinery and Equipment 5, 921. 2 646 4, 727. 8 805 3, 558. 7 983 Housing, Industrial Estate, and Office Building Mining Chemical and Pharmaceutical Industry Food Crops, Plantation, and Livestock 2, 888. 5 2, 256. 3 1, 486. 1 1, 272. 2 946. 9 1, 308 758 1, 282 1, 848 969 16, 000. 0 754. 0 625. 9 617. 9 960 3, 704 5, 107 10, 000. 0 499. 8 1, 087 6, 000. 0 281 409 6, 467 804 700 897 342 430 281 173 113 30, 354 4, 000. 0 Vehicle and Other Transportation Industry Hotel and Restaurant Other Service Metal, Machinery, Electronic, Medical Instrument, Precision, Optical, and Watch Industry Non Metallic Mineral Industry Paper and Printing Industry Trade and Reparation Rubber and Plastic Industry Other Industries Textile Indutry Leather Goods and Footwear Industry Construction Wood Industry Fishery Forestry TOTAL 475. 0 446. 1 421. 2 291. 6 245. 3 238. 9 188. 3 161. 6 95. 0 54. 1 36. 3 28, 208. 7 18, 000. 0 15, 476. 3 14, 000. 0 12, 000. 0 8, 000. 0 4, 538. 7 4, 251. 3 2, 131. 4 2, 000. 0 Java Sulawesi Sumatera Kalimantan 987. 2 823. 5 Papua Lesser Sunda Island Source: Indonesia Investment Coordinating Board (BKPM) 5
Why Indonesia? Demographic Bonus Age Structure (2020) 0 -14 years: 23. 87% 15 -24 years: 16. 76% 25 -54 years: 42. 56% 55 -64 years: 8. 99% >65 years : 7. 82% Kadin Indonesia - Business Service Desk 6
Why Indonesia? Improved Ease of Doing Business in Indonesia 2014 -2020 72 73 73 2018 2019 2020 91 106 120 2014 114 2015 2016 2017 Source : Indonesia Investment Coordinating Board (BKPM) Kadin Indonesia - Business Service Desk 7
Why Indonesia? Strong Reform Commitment Source : Indonesia Investment Coordinating Board (BKPM) Kadin Indonesia - Business Service Desk 8
Investment Overview Chile Investment in Indonesia Year Value (in Thousand USD) Projects Rank 2017 600, 000. 0 1 Project 69 th 2018 50, 000. 0 3 Projects 88 th 2019 25, 000. 0 1 Project 87 th Chile Investment in Indonesia 2017 -2019 700, 000. 00 350 600, 000. 00 300 500, 000. 00 250 400, 000. 00 200 300, 000. 00 150 200, 000. 00 100, 000. 00 50 0. 00 2017 2018 Value 2019 0 Projects Source : Indonesia Investment Coordinating Board (BKPM) Kadin Indonesia - Business Service Desk 9
Trade Overview Indonesia and Chile VALUE IN THOUSAND USD Export Import Trade Balance Total Trade Jan - Sep 2017 158, 528. 6 119, 896. 1 38, 632. 5 2018 159, 027. 9 115, 105. 1 43, 922. 9 2019 126, 678. 2 149, 101. 3 -22, 423. 1 2019 102, 797. 3 119, 846. 3 -17, 049. 0 278, 424. 7 274, 133. 0 275, 779. 5 222, 643. 6 Change% 2020 2019 96, 965. 6 -5. 7 83, 992. 9 -29. 9 12, 972. 7 176. 1 180, 958. 5 -18. 7 200, 000. 00 in THOUSAND usd 150, 000. 00 100, 000. 00 50, 000. 00 2015 2016 2017 2018 2019 -50, 000. 00 Export Source : Ministry of Trade, UN Comtrade Import Trade Balance Kadin Indonesia - Business Service Desk 10
Trade Overview Indonesia and Chile Top 5 products import from Chile to Indonesia in 2019 Top 5 products export to Chile from Indonesia in 2019 21% 22% 25% 46% 8% 10% 19% 15% 10% 6% Copper Edible fruits and nuts Ores, slag, and ash Pulp of wood Iron and steel Others Source : Ministry of Trade, UN Comtrade Kadin Indonesia - Business Service Desk 7% Footwear Machinery Vehicles Oil seed Articles of apparel and clothing accessories 11
Trade Overview Top 10 Export Potential from Indonesia to Chile The most prominent potential goods from Indonesia to Chile, such as: ● Motor Vehicles ● Footwear, ● Natural Rubber ● Palm Oil ● Natural Rubber ● Newsprint ● Urea ● Fatty Acids ● etc. Export Potential Realized Potential (in %) Source : ITC Export Potential Kadin Indonesia - Business Service Desk 12
Trade Overview Top 10 Export Potential from Chile to Indonesia The most prominent potential goods from Chile to Indonesia, such as: ● ● ● ● ● Copper cathodes Chemical wood pulp Soda/sulphate Grapes Apples Potassium Salmon Pears & Quinces Flours of fish etc. Source : ITC Export Potential Kadin Indonesia - Business Service Desk 13
Investment Overview Investment Sector Priorities Kadin Indonesia - Business Service Desk Source : Indonesia Investment Coordinating Board (BKPM) 14
Tips for Doing Business in Indonesia • Identify the right local partner • Understand the business culture in Indonesia • Understand the business climate • Understand the licensing system for investment and business • Engage the right consultants Kadin Indonesia - Business Service Desk 15
KADIN Business Service Desk KADIN Indonesia Business Service Desk (KADIN BSD) is the international business services unit of KADIN Indonesia. KADIN BSD provides an independent view on new opportunities and developments in Indonesia. Specifically, it offers an experience, network, and service; overall working closely with the Government of Indonesia and business stakeholders. Thus, we are the first contact point foreign companies and a conduit to the progressive Indonesian private sector. Business Matching Member Outreach Market Research & Advisory Kadin Indonesia - Business Service Desk Business Event Project & Strategic Partnership 16
Terima Kasih! Contact: KADIN Indonesia Business Service Desk Menara KADIN Indonesia, 24 th floor Jalan H. R. Rasuna Said X-5 Kav. 2 -3 Jakarta 12950, Indonesia www. kadin. id www. bsd-kadin. id Email: info@bsd-kadin. id Thank You! Kadin Indonesia - Business Service Desk 17
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