INDONESIAToday Business Environment

Demographic

Total Island : 17,508 islands

Land Area (sqm) : 741,050 sq mi

Population (est.) 2009 : 231 million people

Indonesia is the world’s fourth (4th) most populous country, with

expectation to grow to almost 300 million by 2050

Located in Southeast Asia and Oceanic, Indonesia shares borders

with Malaysia, Papua New Guinea, East Timor, Singapore, Malaysia,

Philippines, and Australia

Indonesia is also the largest economy in Southeast Asia and a

member of the G-20.

Economic Trends

Currency Performance

According to the data from Bank Central Republic Indonesia, the exchange rate

continue to strengthen against USD with the latest rate (4 Nov 2010) shown in the

below table.

The graph below shows the currency performance from the last 2 years since 2008 to

2010.

Labor Cost

In 2009, Indonesia labor cost is still relatively low in urban centers, even as compared to urban centers of investment magnets China and India.

Indonesia is also an open economy with a sizable trade surplus consisting of export

revenues and import expenditure with United States, South Korea, German, France,

England, Australia, Japan, Malaysia, Singapore, Thailand, Taiwan and China as our

main trading partners. The largest export is consumed by Japan, US, and China

respectively.

Please find the below graph for thelast 2 years of domestic export performance:

Export Domestic Consumption

INVESTMENT CLIMATE

1. Total Investment (January – September)‏

Total Investment Realization (Jan 2009 – Sep 2009) is Rp 112,1 trillion

Total Investment Realization (Jan 2010 – Sep 2010) is Rp 149,6 trillion

2. Total Investment (Quarterly)‏

Increase of

33.4% from

last year

4. List of Top 5 investments in Indonesia

Top Companies : Japan

Toyota Motor Corp.

Honda Motor Corp.

Sony Corp.

Toshiba Corp.

Fujitsu Ltd

NEC Corp.

Top Companies : South Korea

Samsung Group

Hyundai Corp.

Lotte

LG Corp.

KIA

Daewoo Group

Top Companies : HongKong

Hutchison Telecommunication

Cathay Pacific Airways Ltd

HongKong Shanghai Bank (HSBC)‏

Top Companies : Taiwan

Acer Inc.

Asus

HTC

D-Link Corp.

Chinatrust Commercial Bank

Top Companies : Thailand

Charoen Phokpand

Top Companies : Singapore

DBS (Development Bank of Singapore)‏

Singapore Airlines

Keppel Corp. Ltd

Far East Group

Pan Asia

Top Companies : Malaysia

Proton

Maybank

AirAsia

Malaysia Airlines

The Lion Group (formerly known as Amsteel

Corp. Bhd)‏

Top Companies : Philippines

San Miguel Corp.

Philippines Airlines

Top Companies : China

Huawei Technologies Co. Ltd

ZTE Corp.

PetroChina Company Ltd

Bank of China

Haier Group Co.