office of commercial affairs, jakarta feb 2012
TRANSCRIPT
Office of Commercial Affairs, Jakarta Feb 2012
Market OverviewMarket Overview
Crossroad between 2 oceans, the Crossroad between 2 oceans, the Pacific and Indian Ocean, and Pacific and Indian Ocean, and bridge of 2 continents, Asia and bridge of 2 continents, Asia and AustraliaAustralia
Population: 2Population: 237.637.6 Million Million (No. 3 (No. 3 rangking from the worldrangking from the world
highest number of population highest number of population among ASEANamong ASEAN
20082008 20092009 2010e2010e 2011f2011f 2012f2012f
Global ConditionsGlobal Conditions
World Trade VolumeWorld Trade Volume 3.23.2 -11.6-11.6 11.211.2 6.86.8 7.27.2
Oil Price (US$ per barrel)Oil Price (US$ per barrel) 97.097.0 61.861.8 78.178.1 74.674.6 73.973.9
Real GDP growthReal GDP growth
WorldWorld 1.71.7 -2.1-2.1 3.33.3 3.33.3 3.53.5
OECD CountriesOECD Countries 0.30.3 -3.4-3.4 2.22.2 2.32.3 2.62.6
Euro areaEuro area 0.40.4 -4.1-4.1 0.70.7 1.31.3 1.81.8
JapanJapan -1.2-1.2 -5.2-5.2 2.52.5 2.12.1 2.22.2
United StatesUnited States 0.40.4 -2.4-2.4 3.33.3 2.92.9 3.03.0
Non-EOCD CountriesNon-EOCD Countries 1.81.8 -1.7-1.7 4.24.2 4.24.2 4.54.5
Developing CountriesDeveloping Countries 5.75.7 1.71.7 6.26.2 6.06.0 6.06.0
East Asia and PacificEast Asia and Pacific 8.58.5 7.17.1 8.78.7 7.87.8 7.77.7
ChinaChina 9.69.6 8.78.7 9.59.5 8.58.5 8.28.2
IndonesiaIndonesia 6.06.0 4.54.5 5.95.9 6.56.5 6.56.5
ThailandThailand 2.52.5 -2.3-2.3 6.26.2 4.04.0 5.05.0
IndiaIndia 5.15.1 7.77.7 8.28.2 8.78.7 8.28.2
The Global Outlook SummaryThe Global Outlook Summary
Indonesia Vision 2025Indonesia Vision 2025
Self RelianceSelf Reliance CompetitivenessCompetitiveness Superior CivilizationSuperior Civilization
Economic Policy Plan 2011-Economic Policy Plan 2011-20252025
1 of 10 Economic Growth Countries – 1 of 10 Economic Growth Countries – 2025 (now 172025 (now 17thth Ranking) Ranking)
Increase GDP per capita from Increase GDP per capita from us$3,000 to us$ 15,000us$3,000 to us$ 15,000
Increase GDP from us$ 700 billion in Increase GDP from us$ 700 billion in 2010 to us$4.5 trillion in 20252010 to us$4.5 trillion in 2025
6 Economic Zones6 Economic Zones Sumatra Sumatra – Agriculture and Energy– Agriculture and Energy KalimantanKalimantan – Mines and Energy – Mines and Energy Sulawesi and Notrh MalukuSulawesi and Notrh Maluku – –
Agriculture & FisheryAgriculture & Fishery Bali & Nusa TengaraBali & Nusa Tengara – Tourism & Food – Tourism & Food
ProductionProduction Papua & MalukuPapua & Maluku – Natural Resources – Natural Resources
& Human Resources& Human Resources JavaJava – Manufacturing Base and – Manufacturing Base and
ServicesServices
Huge market: a number of population/ consumer 240 Huge market: a number of population/ consumer 240 MillionMillion
80 – 90% of population is middle to low, the rich is 80 – 90% of population is middle to low, the rich is 1155%%
Import Structure of Thailand from Indonesia in 2010Import Structure of Thailand from Indonesia in 2010 Raw Materials Raw Materials 37.6337.63 % %
Fuel Lubricants Fuel Lubricants 25.4525.45 % % CCapital Goodsapital Goods 18.9918.99
%%
Export Structure of Thailand to Indonesia in 2010Export Structure of Thailand to Indonesia in 2010 Principle manufacturing productsPrinciple manufacturing products 82.5982.59 % % Agro – Industrial productsAgro – Industrial products 9.72 9.72 % % Agricultural productsAgricultural products 5.64 5.64 % %
Office of Commercial Affairs, Jakarta, January 2011
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Value (Value (MMilillionlion US$) US$)% % GrowthGrowth 20201111//20102010(Jan-Nov)(Jan-Nov)
2020101020201010
(Jan-Nov)(Jan-Nov)20201111
(Jan-Nov)(Jan-Nov)
Total Trade ValuTotal Trade Valuee 229393,,442442 226363,,466466 347,379347,379 31.831.8
Export Export 115757,,779779 140,949140,949 186,419186,419 32.332.3
Import Import 135135,,663663 122,517122,517 160,960160,960 31.431.4
Trade BalanceTrade Balance 2222,,116116 1818,1,14343 25,45925,459
Office of Commercial Affairs, Jakarta, Feb 2012
Source: Statistics Indonesia
Office of Commercial Affairs, Jakarta, January 2011
Office of Commercial Affairs, Jakarta, January 2011
Office of Commercial Affairs, Jakarta, January 2011
Office of Commercial Affairs, Jakarta, January 2011
Value : Value : MMillion US$illion US$
20200909 20201010 20112011 % Growth% Growth20102010
Total Trade Total Trade 8,467.858,467.85 13,013,038.7738.77 17,447.8717,447.87 333.3.8282
Export Export 4,667.334,667.33 7,346.7,346.4343 10,078.0210,078.02 337.7.1818
ImportImport 3,800.473,800.47 5,65,692.3392.33 7,369.837,369.83 229.9.4747
Trade Balance Trade Balance 866.8866.811 1,61,654.1054.10 2,708.182,708.18
Office of Commercial Affairs, Jakarta, Feb 2012
Office of Commercial Affairs, Jakarta, January 2011
Huge market - high demand in products Huge market - high demand in products & services& services
High-end market or the rich is wealthy High-end market or the rich is wealthy with high purchasing power with high purchasing power
Geographic- not far from ThailandGeographic- not far from Thailand High economic growth rate compared to High economic growth rate compared to
other countries in ASEANother countries in ASEAN Import duty - CEPT/ AFTAImport duty - CEPT/ AFTA Consumer perception on Thai productsConsumer perception on Thai products
Office of Commercial Affairs, Jakarta, Feb2012
Trade barriers – Non-Tariff Barriers (NTB’s)Trade barriers – Non-Tariff Barriers (NTB’s) - AD/ CVD/ Safeguards- AD/ CVD/ Safeguards - Import Regulation of Certain Products- Import Regulation of Certain Products - Import Ban- Import Ban - Import Licensing- Import Licensing - BPOM – ML Registration- BPOM – ML Registration - SPS Food Safety- SPS Food Safety - Products Label in Indonesian Language- Products Label in Indonesian Language - National Product Standard - National Product Standard
BureaucraticBureaucratic Rules & regulations are not transparentRules & regulations are not transparent Difficulty in finding market info. & trade dataDifficulty in finding market info. & trade data Close for newcomers – connection baseClose for newcomers – connection base
Office of Commercial Affairs, Jakarta, January 2011
Provide services Provide services - Data/ Consultation/ Facilitation & - Data/ Consultation/ Facilitation &
Business meetingBusiness meeting Regimes Regimes –– Rules/ Regulations/ Measures Rules/ Regulations/ Measures Export promotion - includingExport promotion - including - Thailand Exhibition- Thailand Exhibition - In-Store promotion- In-Store promotion - Incoming mission- Incoming mission - Trade fair in Indonesia- Trade fair in Indonesia Trade & Economic data/ reportTrade & Economic data/ report Promotion in InternationaliPromotion in Internationalissationation Relation & connection with government Relation & connection with government
agencies and businessmanagencies and businessman Public relation Public relation –– promote Thai products promote Thai products
in Indonesian marketin Indonesian marketOffice of Commercial Affairs, Jakarta, January 2011
Market studyMarket study – very important !!! – very important !!!
Study on rules and Study on rules and regulationsregulations concerned concerned – – also very important !!also very important !!
Relation & connection with Government agenciesRelation & connection with Government agencies
Business partnership – Relation & connection Business partnership – Relation & connection with Indonesian businessmanwith Indonesian businessman
Carefully select trading partnerCarefully select trading partner
Office of Commercial Affairs, Jakarta, January 2011
PolicyPolicy: Encourage investment in Indonesia esp. foreign : Encourage investment in Indonesia esp. foreign direct investment (FDI) to pursue national economic direct investment (FDI) to pursue national economic developmentdevelopment
Investment LawInvestment Law Passed by Parliament 29 March 2007 and signed into law Passed by Parliament 29 March 2007 and signed into law
226 April6 April 2007 replacing Investment Law 1967 and 1968 2007 replacing Investment Law 1967 and 1968
Designed to govern investment activities in Indonesia to Designed to govern investment activities in Indonesia to improve the investment climate to attract foreign improve the investment climate to attract foreign investmentinvestment
Focus on national interest – esp. national economic Focus on national interest – esp. national economic developmentdevelopment
Office of Commercial Affairs, Jakarta, January 2011
National treatment, transparency and accountabilityNational treatment, transparency and accountability
Separation of authorities and responsibility between Separation of authorities and responsibility between Central and Regional GovernmentCentral and Regional Government
Simplification of investment procedures and Simplification of investment procedures and licensing licensing –– one-door integrated service one-door integrated service
Investment facilities includeInvestment facilities include - Fiscal facility- Fiscal facility - Services for rights of land use- Services for rights of land use - Immigration services- Immigration services - Import licensing facility- Import licensing facility
Office of Commercial Affairs, Jakarta, January 2011
The Investment Coordinating Board (The Investment Coordinating Board (BKPMBKPM))BKPM – Badan Koordinasi Penanaman ModalBKPM – Badan Koordinasi Penanaman ModalSame as BOISame as BOI
Chairman assigned by and directly responsible to Chairman assigned by and directly responsible to the Presidentthe President
Coordinate the implementation of the investment Coordinate the implementation of the investment policiespolicies
- Indonesia’s investment roadmap- Indonesia’s investment roadmap - exploring and promoting investment - exploring and promoting investment
opportunitiesopportunities and potentialand potential
Office of Commercial Affairs, Jakarta, January 2011
Net income tax deduction Net income tax deduction 30% for 6 years when 30% for 6 years when investment madeinvestment made
Import duty reduction 5% for 2 years for Import duty reduction 5% for 2 years for imported imported capital goods, capital goods, machinery machinery oror equipment equipment
Exemption or postponement of the value added tax on Exemption or postponement of the value added tax on goods and servicesgoods and services
Accelerated depreciationAccelerated depreciation or amortization or amortization for 5 years for 5 years
Property tax reduction esp. for certain business Property tax reduction esp. for certain business sectors in cretain area/ zone.sectors in cretain area/ zone.
Office of Commercial Affairs, Jakarta, Feb 2012
Government policyGovernment policy- to reform and promote conducive investment climate - to reform and promote conducive investment climate in Indonesiain Indonesia- Investment is a key component of its five-year economic - Investment is a key component of its five-year economic planplan
Large domestic market & competitive work forceLarge domestic market & competitive work force
Abundance of diversified natural resourcesAbundance of diversified natural resources
Potential outsourcing partners: from large to SMEsPotential outsourcing partners: from large to SMEs
Strategic location: several international sea transportation Strategic location: several international sea transportation routesroutes
Office of Commercial Affairs, Jakarta, January 2011
Agribusiness:Agribusiness: cultivation of soybean, corn, rubber, oil palm, cultivation of soybean, corn, rubber, oil palm, cocoa, coffee, cashew nut and sugar canecocoa, coffee, cashew nut and sugar cane
Fisheries:Fisheries: marine & brackish water fisheries marine & brackish water fisheries
Industries:Industries: chemical and pharmaceuticals, food, wood and chemical and pharmaceuticals, food, wood and furniture products, pulp & paper, electronics, automotives, furniture products, pulp & paper, electronics, automotives, textile and garmenttextile and garment
Infrastructure and power plantsInfrastructure and power plants, toll roads, airports, , toll roads, airports, harbors, telecommunications and water plantharbors, telecommunications and water plant
Services:Services: trading, hotels & restaurant, warehouses, trading, hotels & restaurant, warehouses, recreational and entertainment services and technical & recreational and entertainment services and technical & engineering servicesengineering services
Office of Commercial Affairs, Jakarta, January 2011
During 1990 During 1990 –– 2009, Thailand 2009, Thailand –– rank of investment approval by rank of investment approval by country is No. 26country is No. 26Value: 1,587 Mil.US$ Number of project: 33Value: 1,587 Mil.US$ Number of project: 33
by sector: mining, metal, mechinery & electronic, food, by sector: mining, metal, mechinery & electronic, food, chemicalchemical
1. Japan 2. U.K 3. Singapore 4. Hong Kong 5. Taiwan1. Japan 2. U.K 3. Singapore 4. Hong Kong 5. Taiwan
In 200In 20088, Thailand ranking No. , Thailand ranking No. 2323 among foreign investors in among foreign investors in IndonesiaIndonesiaValue: Value: 3.73.7 Mil.US$ Approved project: Mil.US$ Approved project: 55
1. Mauritius 2. Singapore 3. Japan 4. U.K. 5. Malaysia1. Mauritius 2. Singapore 3. Japan 4. U.K. 5. Malaysia 6. South Korea 7. Germany 8. France 9. U.S.A 10. China6. South Korea 7. Germany 8. France 9. U.S.A 10. China
In 2009, Thailand ranking No. In 2009, Thailand ranking No. 66 Value: 51Value: 51.4.4 Mil.US$ Approved project: Mil.US$ Approved project: 44 1. 1. SingaporeSingapore 2. 2. NetherlandsNetherlands 3. 3. JapanJapan 4. 4. South KoreaSouth Korea 5. 5. U.K.U.K.
In 2010, Thailand rangking No. 12In 2010, Thailand rangking No. 12Value: 60.3 Mill US$, Approved project: 1Value: 60.3 Mill US$, Approved project: 11. Singapore, 2. Mauritius, 3. USA, 4. United Kingdom, 5. 1. Singapore, 2. Mauritius, 3. USA, 4. United Kingdom, 5.
Australia ...Australia ...
Office of Commercial Affairs, Jakarta, January 2011
1. M1. MININGININGBanBan--pupu PPublic Co., Ltdublic Co., Ltd1. PT. Nusantara Thai Mining Services1. PT. Nusantara Thai Mining Services
2. PT. Trubaindo Coal Mining2. PT. Trubaindo Coal Mining3. PT. Indominco Mandiri3. PT. Indominco Mandiri
2. M2. MANUFACTURERANUFACTURER2.1 Building materials2.1 Building materials
1. PT. Surya Siam Keramik: Ceramic Tiles1. PT. Surya Siam Keramik: Ceramic Tiles2. PT. Siam Indo Gypsum Industry: Gypsum2. PT. Siam Indo Gypsum Industry: Gypsum3. PT. Siam Indo Concrete Products: Concrete3. PT. Siam Indo Concrete Products: Concrete
2.2 Food2.2 Food1. Charoen Pokphand Group Indonesia: Chicken 1. Charoen Pokphand Group Indonesia: Chicken
product, product, animal feed mealanimal feed meal, , 2. PT. Jui Fa Manufacturing Co., Ltd.: Canned fish2. PT. Jui Fa Manufacturing Co., Ltd.: Canned fish
2.3 Petrochemical & Chemical products2.3 Petrochemical & Chemical products1.1. PT. TPC Indo Plastic and Chemicals: PVCPT. TPC Indo Plastic and Chemicals: PVC2.2. PT. Trans Pacific Petrochemical IndotamaPT. Trans Pacific Petrochemical Indotama
Office of Commercial Affairs, Jakarta, January 2011
2.4 Textile & Garment2.4 Textile & Garment1.1. PT. Winnersumbiri Knitting FactoryPT. Winnersumbiri Knitting Factory2.2. PT. Mingala GarmentPT. Mingala Garment3.3. PT. Sumber Bingtang RejekiPT. Sumber Bingtang Rejeki
3. PLANTATION3. PLANTATIONPTT Green Energy (Thailand) Co.,Ltd. (Palm Oil Plantation)PTT Green Energy (Thailand) Co.,Ltd. (Palm Oil Plantation)
4. Petroleum4. PetroleumPT PTT Exploration and Production-IndonesiaPT PTT Exploration and Production-Indonesia
55. Trading: Import – Export. Trading: Import – Export1.1. SCT Co., Ltd.: various products - coal, tapioca starch, glass wool, SCT Co., Ltd.: various products - coal, tapioca starch, glass wool,
particle board etc.particle board etc.2.2. PT. M – 150 Indonesia: Energy drinkPT. M – 150 Indonesia: Energy drink3.3. PT. Kemio Jajucitra/ PT. Kemici Indonesia: Chemical productPT. Kemio Jajucitra/ PT. Kemici Indonesia: Chemical product4.4. PT. Indonesia Thai Summit Auto Company: Motorcycle partsPT. Indonesia Thai Summit Auto Company: Motorcycle parts5.5. Thai Martin Group: GarmentThai Martin Group: Garment
66. Banking:. Banking: 1. Bangkok Bank Public Co., Ltd., Jakarta Branch 1. Bangkok Bank Public Co., Ltd., Jakarta Branch77. Franchising:. Franchising: Black Canyon Coffee Black Canyon Coffee, Coca Suki, Coffee World., Coca Suki, Coffee World.
Office of Commercial Affairs, Jakarta, January 2011
Rules & Regulations – exRules & Regulations – ex. Central . Central government/ local governmentgovernment/ local government
Bureaucratic system – cost of investmentBureaucratic system – cost of investment
Infra-structure – need to be developedInfra-structure – need to be developed
Labour:Labour:- Quality- Quality- Labour Law – in favor of labour- Labour Law – in favor of labour
Office of Commercial Affairs, Jakarta, January 2011
Information/ Data servicesInformation/ Data services Rules & RegulationRules & Regulation Investment opportunity & suggestionsInvestment opportunity & suggestions
Assist Thai company/ investorsAssist Thai company/ investors Checking on the regulations concerned – defend with Checking on the regulations concerned – defend with
Indonesian Government agencies ex. Customs, Dept. of Indonesian Government agencies ex. Customs, Dept. of TradeTrade
Support and push forward on issues raised by Thai Support and push forward on issues raised by Thai company/ investors on behalf of Thai Government company/ investors on behalf of Thai Government agencyagency
Business NetworkingBusiness Networking
CasesCases: : • PT. Surya Siam Keramik: customs, regulation on surveyPT. Surya Siam Keramik: customs, regulation on survey• PT. TPC Indo Plastics and Chemicals: VCM import dutyPT. TPC Indo Plastics and Chemicals: VCM import duty
Office of Commercial Affairs, Jakarta, January 2011
Office of Commercial Affairs, JakartaSeptember 2011