A new generation in business intelligence.

Volume I Issue iJune 2011

Indonesia is gathering worldwide attention as an investmentand business destination. This increased interest is reflectedby the volume of internet business related searches onIndonesia being carried out every day across the globe, atover 300,000 a month on Google alone. At this crucial time inthe country’s development, there is a strong need for athorough and independent information source. GlobalBusiness Guide was developed in Indonesia to fill thedistinct gap in quality information currently available.

CONTENTS

1. COUNTRY PROFILEGlobal Business Guide Indonesia takes you through an overview of Indonesia and where itstands today on the geopolitical stage.

2- 3. ECONOMY OVERVIEWAn overview of some key macro and micro economic indicators of the Indonesian economy in2010.

SECTOR OVERVIEWSA sector by sector analysis on the main developments and business opportunities available;focusing on import, export, investment and joint ventures.

4. AGRICULTURE

5. ENERGY & MINING

6. FINANCE

7. REAL ESTATE

8. SERVICES

9. TRADE & MANUFACTURING

10. TRANSPORT

11. THE GBG OUTLOOKThe Global Business Guide independent outlook on the year ahead from a business and investor perspective.

12-13. NEXT STEPSThe information that you need to take the next steps in doing business in Indonesia, such asevents, organisations to contact and professional services.

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contact@gbgindonesia.comwww.gbgindonesia.comwww.gbgim.com

Editor in Chief - Gaelle BettusArt Director - Thibaud RouyreTechnical Director - Vincent GimenoOperations Manager - Corinne Frenzel

Regional Director - Julia DudleyCountry Director - Lianna PlautEditorial Director - Wael Rahmouni

Welcome to Global Business Guide Indonesia, the first single window of accurate and objective information onbusiness opportunities in the country, available in print as well as online. Global Business Guide was created toillustrate real cooperation opportunities in the most promising markets of the future. Indonesia was carefullyselected as one of these markets that is showing huge potential and was a natural choice for this initiative.Indonesia has all the elements to be a major economic force of the future; vast natural resources, a younglabour force and a large domestic market.The country showed resilience during the financial crisis with 4.9 % growth in 2009 and has seen higher thanpredicted economic growth in 2010 at 5.6% therefore emerging from the global downturn on strongfoundations.This is now a transitional period for Indonesia as it moves towards a new period of development andinternational engagement. President SBY has set an ambitious target of 7% GDP growth by 2014 and the needfor $140 billion in investment to reach that goal; this coupled with the revision of the negative investment listsignals a new era in foreign investor involvementin Indonesia.The Global Business Guide Indonesia team haveconducted exhaustive interviews with industryexperts, business leaders and members of thegovernment to give you the full picture on thenewest member of the ‘BRICI’ economies. Thewebsite will be constantly updated to bring youthe latest developments and news, so be sure tolog on and to become part of the Global BusinessGuide network.

Gaelle BettusGlobal Business GuideEditor in Chief

FROM THE EDITOR

COUNTRY PROFILE

Interview with H.E. Dr Marty Natalegawa, Minister of Foreign Affairs

Look at Indonesia’s experience in thefinancial crisis not too long ago, manycountries were grappling with the crisis andhave low economic growth, Indonesia, evenat the height of the financial crisis, was ableto maintain a good percentage of growth, thethird in our region, following China andIndia. That shows the size of our domesticmarket. We have a huge domestic marketthat sustains us. This is not only importantnumerically, but it is also a young market,in terms of the demographics. Indonesia hasa very young population, in terms of theproductivity; the best is yet to come, becauseof the nature of our demographiccomposition. Also it increases the size of themiddle class as well.

It shows that Indonesia on its own has atremendous upstream in terms of the size ofthe market, population, demography,increasing purchasing power and not least,one of the features of our democratizationhas been the increased decentralization. In1998, Indonesia was a very much centralizedentity, but since, the system ofdecentralization has increased rapidly. Thishas really unleashed the entrepreneurshipand initiatives of our regions and districts.Indonesia is no longer Jakarta-centric.

So Indonesia in its own has great potentialnow. Because Indonesia is a part of ASEAN,and as I have mentioned before, that ASEANplans to be having the ASEAN Communityby 2015, an integrated and united market,which makes it even more attractive. Itmeans, when you enter into Indonesia, youenter the whole ASEAN as well.

On top of that, the China - ASEAN FreeTrade Agreement means that nowadays youcan trade with China while being inIndonesia, so you do not have to put youreggs in one basket. I think for investors,looking for diversification, it is a good way ofachieving that in one stop. Indonesia is alsothe host of the ASEAN Secretariat inJakarta, it means that we can see Jakartabecoming a more and more diplomaticcapital of our region. For all those reasons,investors who are looking for a heart wherethey can really spread in the region, I thinkJakarta cannot be overlooked.

For the full interview, go towww.gbgindonesia.com

Indonesia is the fourth most populated country in the world, the largesteconomy of the ASEAN and member of the G20. Still classified as a ‘middleincome’ economy, the country is at a crucial time in its development. Today the country is politically stable and the economy has shown healthygrowth of 5.6% in 2010 with over 6% projected for 2011. Previously seen as oneof Asia’s ailing economies; it is now being considered as one of the key marketsof the future as exemplified by the modified term ‘BRICI’ economies.Since the fall of President Suharto in 1998, the country had periods of politicalunrest and economic turmoil. Hit hard by the Asian financial crisis of 1998, theperiod of rebuilding was long and painful with levels of FDI decliningdramatically. The first direct and democratic elections in 2004 saw SusiloBambang Yudhoyono’s rise to power, and to then once again be re-elected inthe peaceful 2009 elections with 60% of the votes. The 2009 elections werereported as ‘remarkably unremarkable’; highlighting that extremist Islamistparties enjoy far less support in the country than previously believed. Thisillustrates the secular nature of the Indonesian Muslim majority electorate.Under President Yudhoyono, the country has taken a firm line in the fightagainst terrorism.A number of high profile arrests and trials have taken placeunder his administration. The country does remain vulnerable to the rise ofextremist Islamic groups as poverty continues to dominate the rural areas andundeveloped regions.Poverty eradication remains a key issue for the government to tackle, howeverIndonesia did show great resilience to the financial crisis; largely due to itsreliance on its internal market of over 240 million people as opposed to exports.Retail spending actually increased by 4.9% during 2009 and consumerconfidence continues to rise. The size of the market provides opportunities ina whole range of sectors for banking and finance to retail and pharmaceuticals.As GDP per capita rises steadily to $4000 USD (PPP) in 2010, Indonesianconsumers are becoming more sophisticated giving rise to demand in moreluxury goods. The projected rise of 25% in consumer credit lending over 2010-11 will contribute to increased consumer spending in the near future.Indonesia’s geographic position is one of its key assets. Nestled between theresource hungry nations of China and India; these are key markets for thecountry’s coal and mineral exports. In addition, China and India will both bemajor export destinations for manufactured goods in the future.In terms of foreign investment, Indonesia still suffers from somewhat of animage problem. Corruption is an issue that keeps some investors away andremains a persistent part of everyday life. Since ascending to power, PresidentYudhoyono’s anti-corruption drive has contributed to his popularity greatly.However, it remains an ongoing issue at all levels of the state; particularlyamong the police force and within the legal system. Moves towards greatertransparency have been adopted in recent years such as the compulsorypublication of officials and ministers’ bank accounts, as well as the setting upof the Corruption Eradication Committee. Several arrests and high profile trialsshow that this government is serious about the problem, but it still remains adeep rooted part of the country’s power structure that will not changeovernight.While many obstacles lay ahead of the country such as weak infrastructure andthe uneven rate of growth across the many diverse regions that make up thearchipalego; this is a country of progress where the best is yet to be seen. It presents itself as a prime opportunity as investors inevitably look towardsAsia. The really unique aspect of the country that makes it stand out from itsneighbours, and that remains crucial at this time of fragile global recovery is thesheer size of the domestic market and its reliance on domestic consumptionover exports. These factors together make a potent combination for a lucrativebusiness and investment destination.

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ECONOMY OVERVIEW

Indonesia was one of the few countries to illustrate strongdomestic growth and increased industrial output during theglobal financial crisis. Driven by strong domestic demandand a competitive currency for exports; the economy hasshown itself to be on sound footing.Indonesia’ GDP growth stood at 5.6% in 2010, raised fromthe predicted 5.2% despite the continuing sluggishness of theworld’s major economies. An interesting aspect of thisgrowth is that it was fuelled domestically both in terms ofconsumption and investment. The year 2009 saw a 28% dropin FDI in line with the global economic downturn yet thisshortfall was made up for by domestic investors with a 72%increase in realised investments totalling $3.4 billion.Despite such positive growth, the broad composition of theeconomy remains, as it has done since the 1970s, fullydependent on heavy industry and services. In 2010 thepercentage of real GDP growth from industry actuallyslightly declined from 2009 figures. This was due to adecrease in global demand, as well as the gradual windingdown of one of the major oil fields located in EastKalimantan at the first quarter of the year. As one of the largest LNG exporters in the world, natural gasremains a key engine of the economy for the years to come.A key change that will begin to emerge in 2011 is thecontribution of renewable energy sources, particularly that ofgeothermal. In line with President Yudhoyono‘s target ofgreen house gas emissions cuts of 22% by 2014. Indonesiaholds 40% of the world’s geothermal energy resources andprojects to tap this source are slowly coming into fruition.With agriculture contributing only 15.3% of total GDP, yetemploying over 40% of the country’s population this remainsa sector that will continue to lack added value in the finalproduct. Cocoa production for example, actually slightlydeclined from both 2008 and 2009, yet the percentagecontribution to GDP rose dramatically to 2% due to asustained peak in global prices for the first half of the year.As the third largest producer worldwide Indonesia still lacksthe technology to increase cultivation to full potential. Thecountry is therefore still dependent on producingcommodities and thus remains subject to the volatility ofprices.Looking to the country as a business destination, Indonesiahas actually fallen behind some of its regional counterparts.The World Bank ‘Doing Business Report’ ranks Indonesia at122 out of 183 economies for Ease of Doing Business. This isquite a poor figure in comparison to Malaysia’s rank at 23rd;but average in comparison to Philippines and Cambodia at144th and 145th respectively.To place these figures in context; the last 3 years have seenextensive improvement in Indonesia’s necessary proceduresto start a business, and the time taken to complete them. In2007 the number of procedures was 12, in comparison to theaverage of 8 for SE Asia. In 2009 this decreased to 9, more inline with the SE Asia average of 7.5. The time taken is where the country has seen a dramatic improvement; from 105 daysin 2007, to 60 in 2009. Yet this still remains far off theregional average of 30.

In terms of investor protection; Indonesia ranks 42nd andscores 6.0 in the global index. This is a comparably high levelof investor protection, with Philippines scoring 4.0 and theaverage of 5.3 in the region.For contract enforcement, the country is ranked 146th; a dropof 4 places from the previous year. With an average of 39procedures and taking 570 days compared to a 30.6 and 462.4days respectively for OECD countries. Entities such as theBKPM are working towards making doing business in thecountry easier and cutting through the choking bureaucracybut a lot is yet to be done before we will see any markedimprovements in such rankings.

A Strengthening CurrencyIn 2010, Indonesia received its highest sovereign debt ratingfor 12 years by Standard & Poor’s and Moody’s. Both ratingagencies increased Indonesia’s rating from BB- to BA2 andBB+ respectively, with the outlooks as positive. This movereflected a growing interest as well as confidence in the lar-gest economy of South East Asia. This rating, which still re-mains below that of Japan but on par with economies such asTurkey, is the first positive change since 2006. In 2011, as in-dustrial production figures strengthen and the core bankscontinue bolstering their capitalisation; it is expected that thisrating will be increased again.Behind Japan, Indonesia’s currency (Rupiah) fared very wellagainst its competitors in the region who saw their curren-cies devalued with exposure to subprime debts. The Rupiahrose 0.35% in 2010 to 9,153 against the US Dollar at its peak,this remained at around and average of 8,950.The US Dollar continues to remain weak over 2010 and thecourse of 2011, due in part to the most recent bout of quan-titive easing by the Federal Reserve. The issue of currencywars continues to dominate the global economic agenda andpresents a challenge to Indonesia too. A key issue lays inkeeping the currency stable as Indonesia as well as other de-veloping economies, are seeing their currencies rise drama-tically in light of the low interest rates being offered bytraditional currencies causing such currencies to become in-flated. The strenghtening Rupiah today is to Indonesia’s ad-vantageas as investors seize the opportunities on the ISX.

ECONOMY OVERVIEW

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Interview with Joachim von AmsbergFormer Indonesia Country Director, World Bank

Where does Indonesia’s economy stand in 2010?A decade after the Asian crisis and the following global crisis of 2008, the Indonesianeconomy is doing remarkably well; how well stability - economic and political - hasbeen restored, and how much the country is broadly appearing to be on the righttrack.The questions in the meetings with leaders of Indonesia were: how to make rapideconomic development growth more broad based and more sustainable? How toimplement the infrastructure necessary for sustaining growth in medium and longterm? How to broaden growth so all parts of the country and all population groupscan benefit? I perceive there is strong leadership in Indonesia for governance, fordealing with corruption problems, and for strengthening the effectiveness of publicinstitutions so they act in the public interest. These are some tasks that we aredelighted to contribute our advice and resources in addressing and helping theleadership in Indonesia make a difference.

What role does the World Bank continue to play in Indonesia?For the last years, there has been a lot of discussion on how to harmonize supportfrom international development partners to developing countries. These discussionson harmonization and alignment have led to the Paris Declaration and other globaldiscussions on how development can be best advanced by partnering operations on theground. Arrangements, such as sector-wide approaches are good, where resourcesfrom lenders, such as the World Bank, and grantees such as bilateral agencies, arepooled and put jointly behind the implementation of high-priority public spending inareas, such as education, behind the development program of the country. That’sharmonization action. I very much believe in that business model. I think that type ofsector-wide approach is the future of development financing for public expenditures,and the World Bank is very well-positioned to move the agenda forward in Indonesia.

I think we should worry less about our relevance at generic level, and focus on whatwe can contribute to each individual partner country. World Bank as an institutiontoday is more relevant than ever before. Global challenges, whether they are globalenvironmental problems like global warming, health issues, trade-finance issues, arebecoming ever more important influence to lives of more people. An effective globalinstitution that can partner with individual countries, but has in mind globalpublic good and has at its disposal access to global resources ,remains even moreimportant today than it was years ago.

For us, the challenge is to bring these global resources, financial resources, low-costfinancing that is cheaper than financing from the market for most of our clientcountries today, and global advise, learning from other countries that have gonethrough similarexperiences. Our challenge is to make these assets useful to our clientcountries, offered in a way that is useful for specific development challenges thatIndonesia is facing today. If we are successful in bringing the resources to the partnercountries, I think the question of relevance will answer itself.

What is the outlook for the future?Indonesia is a country with huge potential, but with large scale obstacles. Theprosperity in regional hubs is only a small part of the overall story of the country. In-donesia continues to implement large scale community projects with wide reachingeffects. The future lies in providing even growth and prosperity throughout the all theregions to move the country forward as one.

Agriculture has always been an integral part of theIndonesian economy in terms of revenue as well as labourabsorption as it employs over 40% of the total workforce.Indonesia’s geographical position and topographic make upprovide a diverse capacity for agricultural production. Theposition of the islands straddling the equator gives way to ahumid climate with plenty of sunshine as well as rainfallthroughout the year. The numerous volcanoes have createdincredibly fertile land and the diversity in the landscape withplenty of land at high altitude allowing crops such as coffeeto be grown effectively, being shielded from mosquitoes andother pests.The Ministry of Agriculture is aiming to make Indonesia amajor agriculture exporter with plans for a 1.6 hectare acrefood estate in Papua, and more to follow.In 2009, Indonesia overtook Malaysia as the largest palm oilproducer in the world. Palm oil, along with cocoa, coffee andrubber are the key commodities of the country. The globaldemand for all of these has risen sharply in the past 2 yearswith increasing demand from countries such as China andIndia as well as North America and Western Europe.Agriculture is a key element of the domestic as well asglobal economy with Indonesia’s economy, growing ataround 1.8% annually, the demand for staples such as riceand sugar is increasing rapidly.From a global perspective, the flooding in Pakistan and forestfires in Russia in August 2010 saw a spike in the price ofwheat as global supply was slashed. Such events illustratethe importance of a diverse supply of food for the worldpopulation and the role Indonesia can play within it.The low GDP contribution is due to the lack of value addedprocesses in the manufacture, processing and packaging ofagricultural goods as well as utilising methods to increaseproduction potential. Imports of goods such as rice havebeen increasing since 2000 and are expected to continueincreasing by 1.39% a year due to domestic production notbeing able to meet demand. Despite having excellentenvironmental conditions in terms of fertile soil and a humidtropical climate; the lack of technology employed by theindustry as a whole reduces competitiveness and loses outon the added value of downstream processes.With the global demand for food rising and Indonesia’s owndomestic population increasing at 1.9% a year; agriculturewill play an increasingly important role in the country’seconomy. Technology partnerships as well as developmentof marketing and branding techniques will allow Indonesianproducts to meet the demand for imported goods among thedomestic market, as well as provide end-product exports forthe international market.Infrastructure and logistics are the key challenges toprofitable business in the agriculture sector. Most of theroads, factories and utilities networks are concentrated inJava. With the majority of arable land located in Sulawesi,Sumatra and Kalimantan, this is a considerable drawback.As a result of the poor infrastructure; transport and logisticscosts in Indonesia are some of the highest in the region for

both domestic and interna-tional, at 19% of total com-pany sales in comparisonwith 8% for Singapore and12% for Malaysia. The coun-try is lagging behind othersin introducing reforms to thisarea, ranked 75th by theWorld Bank Logistics Indexin 2010.Despite being 2/3 covered bywater, Indonesia does nothave a strong shippingindustry. There is a need foran estimate $10-15 billion tobe invested in new ships andharbours to avoid having touse international ports andthen land transportation.The technology in use in theagriculture sector is still verybasic in many industries,excluding palm oil. In cropssuch as tea, coffee and sugar; around 65% is produced bysmall holding farmers who lack access and knowledge oftechnology, fertilisers and pesticides.The lack of value added and downstream processes availablein Indonesia hampers the ability to take maximum profitfrom the raw product. The majority of coffee and cocoa beansare exported in their raw form which is subject to a pricereduction of $150-300 per MET in Europe and America. Thecountry lacks processing facilities, particularly those locatedclose to the site of production.Another main challenge is that of deforestation and theenvironment. Indonesia’s palm oil as well as paper and pulpindustries have come under international scrutiny fordeforestation. The Ministry of Forestry is in the process ofdelineating thousands of acres of forest for conservation.This ongoing process will cause short to medium termdelays in land acquisitions for commercial purposes. Restrictions of replanting and biodiversity conservation arealso being imposed by the Ministry of Environment whichmakes having extensive feasibility studies a necessity.For more on agriculture, go to the website www.gbgindonesia.com/agriculture

AGRICULTURE

Featured Interviews at www.gbgindonesia.com

HE Ir Suswono - Minister of Agriculture of the Republic of Indonesia

Siswono Hidaya - Director of Development Merauke Food EstateDevelopment Project

Anthoni Salim - President Director Indofood

Daud Darsono - President Director PT Smart

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Indonesia is blessed with an abundance of naturalresources, however the energy and mining sector has seen alack of new FDI over the past 10 years. The downturn inEurope and America in 2009 caused a decrease in demand,however domestic and regional consumption has kept thesector buoyant. This year has seen a surge in Indonesia’s oiland gas exports, with an increase of 99.7% in May 2010 to$2.27 billion USD and coal up by 32.2% signalling apromising year for the sector.

Indonesia was a member of OPEC up until the end of 2008,when it became a net importer of oil. The country still has4.44 billion of proven oil reserves, but access to them requiresextensive investment. The domestic demand for oil is rising,thus the amount of imports is rising year on year. Thecountry remains a leading LNG supplier, but despite itsreserves; the industry is falling behind countries such asMalaysia. Limitations arise from aging fields and lack ofinvestment in new sources, as well lack of infrastructure todeliver it, making prices less competitive.Mining has always played an important part in Indonesia’seconomy contributing around 11% of total GDP, with someof the world’s largest reserves of tin, copper, bauxite,thermal coal and gold. Whilst having the reserves and thegeographically advantageous positioning next to the Asianand Australian markets; the mining sector has come underscrutiny for its degradative environmental impact. Thelegislation surrounding protected areas and the necessarypermits that mining companies require has been subject tounpredictable changes since the law in 1999 that banned allopen pit mining in forested areas. In early 2010, newregulations came into effect to clarify the areas in whichmining companies can operate as well as the permitsneeded. A further decree in March 2010 opened up areas ofprotected forest to mining and other projects in areas that aredeemed strategically important. Challenges lay ahead ineliminating the bureaucracy surrounding land permits andthe overlap of jurisdiction between ministries.Despite the bureaucratic hurdles and in the face of thedownturn in the global commodities market; the miningsector continues to flourish with an estimated growth of 10-11%year on year to 2014. As Indonesia has low extraction

costs to compliment its vast reserves; it is attractinginternational attention and lucrative deals.Indonesia has 27 GW of identified geothermal reserves or40% of the world’s total reserves.This source seems like thenatural solution to the country’s woes in terms of meetingelectricity shortages and meeting greenhouse gas emissiontargets. However, the cost of building geothermal energyplants are twice that of a coal or gas power station and takeup to 6 years to develop. The amount of investmentrequired in terms of exploration only adds to the cost ofconstructing the plant itself. Today, Indonesia is behind target for tapping such reserveswith only 1,1189 MW in operation as opposed to thetargetted 2,100 MW and only 4% of potential resources havebeen developed. State Owned Enterprises such as PLN andPertamina’s geothermal arm have been responsible forgeothermal development and hold the monopoly over thearea, however there is a big role for investors to play. Newregulations are on the horizon to make amendments toexisting legislation regarding areas that can be developed forgeothermal exploration.The opportunities for investment in exploration,downstream industries, pipelineconstruction and other infra-structure developments are vast.The country’s geothermalenergy reserves can provide forthe domestic energy needs,freeing up non renewableresources for export. Indonesiahas the capacity to reassert itsposition as a major energyexporter in both oil and gas; itsstrategic geographical positionbetween India, China and otherSouth East Asian countries pro-viding easily reachable and re-source hungry markets for itsexports.Go to www.gbgindonesia.comto stay ahead of developmentsin this sector and stay in theknow on rapidly changing legis-lation that is opening up new areas of the energy and miningsector.

ENERGY & MINING

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Featured Interviews at www.gbgindonesia.com

H.E Darwin Saleh - Minister of Energy and Natural Resources ofthe Republic of Indonesia

Dr Ir Kuntoro Mankusubroto- Chairman Sustainable Energy Association of Indonesia

Jeffrey Mulyono - Indonesia Coal Mining Association

Karen Agustiawan - President Director Pertamina

The Indonesian financial sector showed resilience duringthe financial crisis and the regulatory framework iscontinuing to improve. The Indonesian Banking Architectureis improving bank’s capitalisation to make them stronger inthe face of taking on greater risk. The financial sector is alsoundergoing a consolidation process; the number of banks hasslowly been decreasing to just over 120 banks. BankIndonesia has set a target of 35-60 commercial banks by 2019,and 30-50 banks serving specific business sectors as well asup to 5 banks with an international presence.A reluctance to lend towards SMEs and entrepreneurs bybanks has been seen as a major obstacle in nurturing newbusinesses in the country. This is predicted to change goinginto 2011 with lending expected to increase by around 20%,but the Central Bank has a more pessimistic prediction of 11-17%. The strong demand for such lending opens upopportunities for foreign banks and lenders to extend creditlines and offer more competitive rates than domestic interestrates.Indonesia’s internal market is gaining recognition fromforeign financial players such as the Industrial andCommercial Bank of China. For foreign investors, theupdated OPIC agreement has expanded the percentage ofownership that foreigners can hold in the banking sector. Atthe end of 2009, 33 Indonesian banks had foreign investorownership, and 10 non Indonesian banks controlled 43% oftotal assets in the country. To both foreign banks and investors, the sector is anattractive one and it has shown itself to be on the right trackthrough the global downturn. Local banks are going public

and are seeking funding from the market by selling sharesand issuing bonds thus increasing their market value.Shariah compliant banking is another key area of predictedgrowth. As the world’s largest Muslim country (with around86% of the total population being Muslim) this is a sector thathas seen steady expansion over the past 5 years. Thefinancial crisis has turned attention towards alternative andmore ethical banking methods and is therefore nowappealing to a broader market of customers. Today there are5 fully Shariah compliant banks and 24 commercial bankswith Shariah compliant arms. Indonesia presents anuntapped opportunity as Shariah banking accounts for only5% of total banking assets in the country, but is projected toincrease by 50% annually.

Non banking financial services are also subject to an upwardtrend with growing awareness of the need for both personaland commercial insurance products. 2010-2011 is perceivedto be a year of strong recovery in this area with grosspremiums expected to climb 20-25%. Multi finance in theform of consumer financing and credit cards, is becoming avery competitive industry following a decline in demandover 2009. More industry players are issuing bonds anddiversifying their service offerings.New bond issues and IPOs are coming up within the financesector, so be sure to go to www.gbgindonesia.com/financeto keep up with all the latest news.

FINANCE

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Featured Interviews at www.gbgindonesia.com

H.E Agus Martowardojo - Minister of Finance of the Republic ofIndonesia

Mahendra Siregar - Executive Director of Eximbank

Michael Young - Country Head Indonesia HSBC

Yuan Bin - President Dirctor Indonesia ICBC

Zukifli Zaini - President Director Bank Mandiri

The Indonesia Stock ExchangeCapital markets have performed in line with the economy.Private equity funds have emerged as a new force looking totake advantage of Indonesia’s rich natural resources, growingeconomy and modest share prices. More bond issues such asgovernment retail bonds and sukuk offerings (since 2008) areattracting new investors.The Jakarta Composite Index has performed exceptionally wellover 2009 increasing by 87 percent cumulatively and the trend iscontinuing over 2010 with shares trading 13.3 times aboveestimated earnings. The third quarter saw the Index up 11.01points in a single day, with $380 million shares being traded.This peak was driven by global optimism in Asia’s consumerspending.

The Asian Financial Crisis of 1997-1998 saw Indonesianproperty prices drop dramatically and a number of largescale developers phased out by the market. During thefinancial crisis of 2008, Jakarta’s real estate marketperformed better than other Asian cities with signs ofrecovery as early as 2009. Commercial property has also seen comparatively high salesfigures following a significant slump, as manymultinationals take up offices in Jakarta and secondary citiesto take advantage of the growing economy. These offices areacting as regional headquarters, to access not only Indonesiabut also the region as Jakarta’s rental figures arecomparatively very low to cities such as Kuala Lumpur andBeijing. Ambitious commercial real estate projects within the CBD ofJakarta are raising the bar in terms of the quality of officesnow available. Such offices command high rental rates thathave retained their value in spite of volatile economic times

and currency fluctuations.The laws on foreign ownership of property are currentlyundergoing reform, with announcements expected to bemade towards the end of 2010. This would open up the realestate market at this crucial time in Indonesia’s economicgrowth, and present unprecedented investmentopportunities. There is tight competition within the property sector, beingdominated by a number of local and regional conglomerates.and Jakarta is split among them in terms of developments.There are many signature projects currently underconstruction by groups such as Lippo Karawaci and AgungPodomoro. Offering both commercial and residentialproperties, these projects are providing an abundance ofchoice for those in the market. Renewed confidence andoptimism has replaced the hesitance that put a dampener onsuch projects in 2009. Looking to related industries in the construction sector, it ispossible to see where opportunities for investors and foreignsuppliers lay. Taking cement as a case study, the averageretail price of cement has risen by almost 14% over the past5 years. Domestically produced cement is mainly used forserving the domestic market with 98.8% of the total produc-

-ed used in the local market. Exports are therefore a rareoccurance, despite the market’s excellent position to servecountries such as Sri Lanka that lack production facilities.Construction of cement plants to meet domestic demand aswell as to open up possibilities in export are a primeopportunity. Other construction materials are also in high demand.Seeking to differentiate themselves, as well as meet highstandards in terms of quality and environmental impact;major real estate players are looking for the latest productsand materials.Indonesia’s real estate sector is poised for dramatic changes.Many of the biggest companies are going public; offeringprime investment offerings. The changes in the laws toforeign ownership will also have an immense impact. Go towww.gbgindonesia.com to be in the know.

REAL ESTATE

Interviews available at www.gbgindonesia.com

Suharso Monoarfa - Minister of Housing of the Republic of Indonesia

Gita Wirjawan - Chairman of BKPM, Indonesia Investment Coordinating Board

Chandra Ciputra - President Director Ciputra World

James Riady - President Director Lippo Group

Focus on Foreign Property Ownership RightsUnder the UUPA (Undang-undang Pokok Agraria), foreignersare not allowed to own land anywhere in Indonesia. Today,there are various methods of getting around this issue suchas by nominee arrangement and by way of an Indonesianincorporated company. Such methods are not ideal and in-volve an extensive amount of bureaucracy to navigatethrough.The Housing Minister Suharso Monoarfa has indicated thatdiscussions are underway to revise this law and GitaWirjawan of BKPM has indicated that the revised regula-tions will be confimed by the beginning of 2011. The propo-sed changes would extend foreign ownership rights to 95years from 25 years. The House of Representatives will castthe deciding vote on such changes.A revision of this law would give a huge boost to the pro-perty sector and related industries such as cement and otherconstruction materials. Currently real estate contributes only2.7% of total GDP in comparison to 35% in Singapore.Industry experts predict that allowing foreign propertyownership will see this contribution saw to 10% in the me-dium to short term. Indonesia has some of the lowest commercial rental costs inthe region, making it a highly competitive market forinvestment. For the latest news on these regulations and others go to www.gbgindonesia.com/realestate

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The services sector in Indonesia contributed to 51% of totalGDP in 2009, a figure that is set to increase as the sectorcontinues to diversify and develops higher industrystandards. It employs around 40% of the workforce and is an integralpart of the country’s future; however the sector still lagsbehind its neighbours in terms of quality and efficiency. The sector has been growing steadily at around 8% annually;above the overall GDP growth rate. The quick take up oftechnology by the sector and not being subject to thebacklogs in infrastructure development that other parts ofthe economy suffer from, has allowed it to take fulladvantage of the growing sophistication and purchasingpower of the domestic market.Jakarta is becoming an international business hub making itvital for it to provide world class services to compete withits regional counterparts. While the country has a young and130 million strong workforce, higher levels of education arecrucial to advancing the service industry and creating aknowledge based economy. Government policies are needed to liberalise the sector tofully unleash the potential; as demonstrated by the strongperformance of the banking sector followingderegulation. The Ministry of Trade, headed by H.E. MariPangestu is preparing a master plan or ‘blueprint’ foroptimising the service sector by creating the necessary

infrastructure to support itsuch as a new port to beconstructed at Cikarang,West Java. The country’s competitive-ness rests on improvingnot only infrastructureissues to lower costs in theshort term, but long termimprovements to educa-tion at all levels andmedical services.The signing of the updatedOPIC agreement in April2010 has opened new areasof the services sector suchas education, healthcareand the creative industriesto foreign ventures andownership. Healthcare in Indonesiahas long been consideredof poor quality, with over

72,000 Indonesians going to Singapore alone for medicaltreatment every year.The healthcare sector in Indonesia is made up of a mix ofboth public and private facilities. The demand for highquality private facilities in urban areas offering a moreadvanced range of services has gone up acutely in the pastfew years. The quality of services has gone up with anumber of new private chains in medical care such as Siloam.

Medical tourism is an areathat remains unexploited inIndonesia despite thepopularity of places such asBali. A key issue remains thequality of human resoucesin the medical profession aswell as the perceived imageof the medical sector. Thecountry is losing out tocountries such as Singaporeand Thailand who haveeffectively branded them-selves as medical tourismdestinations through invest-ment in education and part-nerships with foreignuniversities.Education is another servicein great demand yet lackingthe investment to providehigh quality services. Theemerging urban middleclass are demanding better and private education for theirchildren, presenting demand for schools of an internationalstandard.The hospitality sector has grown rapidly in terms of size,employment absorbtion as well as witnessing dramaticimprovements in the quality of service. Local universities,often through partnerships with universities in Australia andNew Zealand are offering programs in hotel and restaurantmangement that are creating high quality professionals. Thiswill greatly boost the tourism sector as Indonesiastrenghtens its position in this area. Today, tourism employs2.5 million people in the country, yet only attracted 6.4 mil-lion tourists in 2010. With the governments target to reach 7million tourists over the next year, there is a demand for newservices in hospitality and beyond.With investor interest looking beyond Jakarta to other urbancentres; the demand for services such as education andretail are bound to grow. Indonesia’s service sector isgrowing rapidly and holds great potential for foreigninvestors as the country continues to advance and urbanise. For more information on the services sector go towww.gbgindonesia.com/services.

SERVICES

Featured Interviews at www.gbgindonesia.com

H.E Dr Endang Rahayu Sedyaningsih- Minister of Health of theRepublic of Indonesia

Kebon Jeruk - President Director Siloam Hospitals

Indah Ariyani Sadler- Executive Director Jakarta InternationalHotels Association

Sarwoto Atmosutarno - President Director Telkomsel

8.

Manufacturing accounted for 28% of total GDP in 2009,the poor growth in industrial production had led to apessimistic outlook on the country’s manufacturingindustry. Exports were hit hard by the global crisis, with anacute decrease in global demand for Indonesian products.This year there is a brighter outlook for the sector, withindustrial production up 5.72% at the beginning of the yearand global as well as domestic demand picking up.As a production hub, Indonesia has been systematicallyoverlooked by major international corporations in favour ofChina, despite offering several competitive advantages interms of political and economic stability as well as labourcosts. Wages in China have increased by 100% over the past12 months, as well as there being a number of high profileindustrial disputes by workers. In contrast, Indonesia’swages are going to remain low for the forseeable future. Competitive labour and a vast internal market make for anattractive investment. These attributes are complimented bythe willingness of the government to welcome corporationsin and invite major national corporations to contribute to the7% targetted GDP growth. The government is simplifyingthe process to obtain business licenses and changes in foreignland ownership are making the country a more attractive

place to set up.In light of this, 2010 has seena major reconsideration ofIndonesia by some of thebiggest global players inmanufacturing with, forexample, Panasonic movingits audio digital plant fromChina to Indonesia. Nike toois planning on moving intoWest Java and has alreadyallocated around $9 millionto land acquisitions. Nestleis another example that isseeking to move its produc-tion sites from Malaysia andthe Philippines to Indonesia.The question then arises asto how Indonesia’s domestic

industry will cope in the face of the twin challenges of fo-reign players moving in, and the China - ASEAN Free TradeAgreement that came into effect in January 2010 that givesChinese products free reign in the market. The CAFTA, has been touted as the root cause ofIndonesia’s lagging performance in industries such astextiles. With Chinese products flooding the market; thetrade deficit with China stood at $130 billion in mid-2010.Despite this being seen as a threat to the Indonesian manu-facturing industries; the CAFTA is actually being seized asan opportunity by businesses. It presents the potential tomove into producing high quality more sophisticated goodsrequiring a greater input of skill and technology; whilst hav-

ing access to tariff free raw materials from China. Now is akey time for Indonesia to boost the competitiveness of its ma-nufacturing industry as world demand begins to pick upalong with the purchasing power of the domestic marketwhich grew at 5% in 2010. There are still many challenges that lay ahead in this sectorof the economy, and it comes down to the government totake a clear lead in organising the sector. Corruption,infrastructure pushing up costs and bureaucracy arelingering road blocks in allowing the trade and manufactu-

ring sector to flourish. Lack of reliable electricity supply is amajor concern for those already operating here with powercuts a regular and unwelcome occurance. While labour costs for unskilled production remain low andare to the country’s advantage, a gulf in qualified humanresources still remains. Skilled and educated workers are keyto moving the country up the value added chain andpositioning itself as a manufacturing hub that is not onlymore competitive than China; but can also produce originaland high quality goods that can be sold in the Chinesemarket.The opportunities are very much present for those with thepatience to enter the market. Automotive and motorcylemanufacturing are key areas as demand for such goodscontinues to rise. Indonesia is the world’s third largestmotorcycle market and due to the lack of a reliable publictransport system, such items are regarded as a necessity byall stratas of the consuming classes. Electronics are anotherarea of great possibilities, particularly in mobile phones,home appliances and computer components. Go to ww.gbgindonesia.com for the latest developments.

TRADE & MANUFACTURING

Featured Interviews at www.gbgindonesia.com

H.E M.S. Hidayat - Minister of Industry of the Republic of Indonesia

H.E Mari Pangestu - Minister of Trade of the Republic of Indonesia

Ernovian Ismy - Chairman of Indonesia Textiles Association

Prijono Sugiarto - CEO of Astra International

9.

As an archipelago of 17,508 islands, transport andlogistics are a vital aspect of Indonesia’s infrastructure. Todate, the country’s logistics cost remain some of the most

expensive in the region due tothe strong need for updatedinfrastructure. Transport development andkeeping the cost of logisticslow is integral to economicdevelopment and to makeIndonesia a competitive placeto do business.The development of roads,ports, railways and airports iscrucial to reaching thetargeted 7% GDP growth inthe near future and it is esti-mated that $140 billion USDis required, of which thegovernment will providearound 30%. The government Committeefor the Acceleration of

Infrastructure was founded in 2001 and has completed anumber of projects particularly in rural areas. Such projectshave given millions of people better quality of life and thelong term effects will be of great benefit. In terms of theurbanised areas, there is still plently of progress to be made. Investment into transportation projects and the growth ininfrastructure is being outstripped by demands on it. Thenumber of cars and motorcycles on the road is growing bythe day, yet the amount of roads being laid to cater to themis not nearly enough resulting in frequent accidents and thetraffic jams that Jakarta is notorious for.Issues exist at a regional and local level to coordinateinvestment into such projects. Decentralisation hasfragmented regional budgets and there fails to be any firmleadership taken up by local authorities to pool resourcestogether to fund such projects.Public Private Partnerships (PPP) are offering investorsopportunities to be part of large scale infrastructure projects.The government’s medium term development plan 2009 -2014 is designed to facilitate private investment and tosimplify the necessary procedures. Yet, the reluctance of thebanks to lend towards such projects stifles the efforts ofprivate actors who try to make headway in this area. Theexperiences of having witnessed large scale projects beinginitiated only to later be abandoned due to bureaucratic andfunding issues makes banks reluctant to lend towards theseprojects.PT Sarana Multi Infrastruktur is a government body that wasfounded in 2009 to develop the projects laid out in theprogram, provide funding and to act as a catalyst to PublicPrivate Partnerships. It has committed to several large scaleinfrastructure projects including toll roads and railways.Land transportation improvements are in the greatestdemand today. The amount of cars on the road has shot up

to 60 cars for every kilometer of road, which does not includethe number of motorcycles. A metro sytem in Jakarta to take the burden off the roads hasbeen proposed, attempted and abandoned several times.However, in 2009 the country secured a $1.6 billion loan tofund a Mass Rapid Transportation system in Jakarta fromthe Japanese International Cooperation Agency. This is dueto begin construction in 2011 with the first route to be openin 2016. The air transportation industry is showing rapid growth andis gaining prominence as a transportation method forpersonal travel and commercial cargo. The national airlinecarrier Garuda has seen a return to form in 2010 havingcleaned up its safety record and is poised for a $300 millionIPO at the beginning of 2011. Air travel and transportation isbecoming more widely used with passenger traffic up 16%from 2009 and it is estimated that the country’s airlinecarriers will purchase 400 new aircrafts over the next twodecades.Railways and sea ports are also integral components tomaking Indonesia accessible. The government launched aprogram worth $2.1 million toimprove the country’s 4.8 millionkilometres of railways, to becompleted by the end of 2010. Sea transport is vital to connectthe archipelago, yet remainsneglected in terms of investment.Growing trade between theislands is placing greater demandon sea transport services, butexisting ports do not havesufficient capacity. The cabotagelaw introduced at the end of 2008and in full force by the end of2011, prescribes that onlyIndonesian flag vessels can serveIndonesian waters. This opens upthe possibilities for investment todrastically improve native fleets.Transport is one of the mostcrucial sectors in Indonesia’s future. The need for new ports,airports, roads, bridges etc. presents long term investmentand partnership opportunities. Go to the website for themost up to date transport news.

TRANSPORT

Featured Interviews at www.gbgindonesia.com

H.E Freddy Numberi- Minister of Transport of the Republic ofIndonesia

Fauzi Bowo - Governor of Jakarta

Taufik Kurniawan - Chairman of the House of RepresentativesCommmision V

Emma Sri Martini - President Director of PT Sarana Multi Infrastruktur (Persero)

10.

The year 2011 will see Indonesia hosting the South East Asian Games in Palembang forthe 4th time, as well as taking up the chair of the ASEAN a year ahead of schedule placingit at the centre of regional and global issues.The ASEAN’s importance as an economic trading bloc, as well as its political clout on theworld stage will continue to increase. The G20 Summit in Seoul, Korea at the end of 2010highlighted the need for emerging markets to become not only producers but consumersto drive the global recovery. The policies that the ASEAN adopt and the direction thatIndonesia chooses to take it in over the next year will be crucial in determining itscontribution to the global economy. It will be a decisive year for Indonesia, when economists around the world are expectingto see equilibrium in persistent issues of currency volatility, inflation and subsequentlyinterest rates. The policies and schemes enacted in 2008 and 2009 are expected to come intofruition and result in improved infrastructure as well as more cost effective and efficientlogistics. Improving infrastructure can no longer be an issue that is only spoken about, the immediatedemand is already apparent and without improvement will reach breaking point. Privateinvestment through the Public Private Partnership scheme will be the main contributor tofunding these projects. The second quarter of 2010 already saw a marked increase inforeign investment into the country, and it is very much on course to meet its targets for theyear. Despite these positive indicators that both the finance and the will are moving in thesame direction, the government will have to streamline and simplify the necessary permitsto make such projects a reality. To do this, the various ministries need to give over theircontrol to BKPM so that it may provide investors with the transparency and efficiency thathas been so lacking in the past.Strong private consumption will continue to be the engine driving growth throughout 2010- 2011, continuing on from its 70% contribution to GDP in 2009. Government consumptionwill also start to increase with the government targetting a 2.2% budget deficit. Increasedprivate consumption will fuel a greater demand for imports too which the economy mustbe strong enough to support. In line with the gradual and still fragile recovery of western markets, exports of Indonesiangoods will be up from 2010 levels in 2011. Exports in agricultural and non industrialproducts will increase slowly, while exports in coal and LNG will rise sharply on increasedconsumption by China and India. China’s position as the second largest economy as of mid 2010 and becoming the first in thenext 5 years will place increased pressure on the value of the Yuan, causing China’s exportsand labour to become more expensive. This is the prime time for Indonesia’s manufacturingindustry to benefit in providing competitive labour prices alongside low cost exports.Indonesia will continue to exert itself as a site for production by major national corporationsand will see more big names come to set up shop. The proposed changes in foreign landownership would accelerate this trend further. FDI will increase from 2010, coming close to the levels of 2008 as well as increaseddomestic investment that will take up the slack as the economies in the western marketscontinue to recover and investors begin to come back to the market. Maintaining a steadybalance of local and foreign investment will be to the country's advantage to ride out anyfuture peaks and troughs in the global economy and prevent a mass exodus in foreigninvestment as witnessed by many countries after 2008.The Indonesian economy, like all other major economies around the world is subject to theuncertain course that the global recovery will take. Economists are still uncertain as towhether this recovery will take a W shape as the recovery of the American economyuncertain and the spectre of another bail out in the Eurozone on the horizon. Currenciesincluding the Indonesian Rupiah will be subject to the pressures of such uncertainties as theUSD remains weak against all currencies. Global Business Guide’s journalists remain on the ground in Indonesia to keep track of theday to day changes in key indicators and to bring to light to full picture on this rapidlychanging economy and society.

THE GBG OUTLOOK

11.

Stay up to date with all the major developments at www.gbgindonesia.com.

THE NEXT STEPS

12.

Indonesia presents a wealth of opportunities, but to accessthem and reap the benefits, takes plenty of research andpreparation. Further information, divided by user for import,export, investment and joint ventures is available atwww.gbgindonesia.com.The Investment Coordinating Board BKPM is striving tobecome a ‘one stop shop’ for all foreign investment andbusiness needs and is a good place to begin.Not all sectors are open to foreign investment and it isimportant to establish what the foreign investors rights inyour sector are. For example, some sectors allow foreignersto have ownership, but only up to a certain percentage andtherefore require that you take on a local partner. In May 2010 a degree by the President revised the NegativeInvestment List (Daftar Negatif Investasi) and has expandedthe areas in which foreigners can be involved in the country.Highlights of the revised Negative Investment List 2010:- Foreign investors can own 67% of construction businesses,up from 55% previously- Foreign investors can own up to 45% of film-relatedbusinesses- Hospital ownership by foreign investors is raised from 65%to 67%- Foreign investors can now own up to 95% of power plantbusinesses- Basic, elementary, secondary and high school now requiresspecial licensing- Foreign investment in nursery service is now 49%nationwideGo to the BKPM website in ‘Useful Organisations’ for the fullDNI List.TaxesNewly established businesses in Indonesia are subject to anumber of tax inventives depending on the industry sector.Such tax incentives include a tax loss carry forward period of10 years and an investment allowance of 5% per year for aperiod of 6 years. Indonesia has double tax treaties with 48 countries,including the United States. Tax residents are determined asindividuals who spend 183 days in the country during a 1year period. The individual tax rate is 5% for up to $2,673increasing in by 5% at increments of $5,000 and $10,000. Forincomes in excess of $21,390, the taxable rate is 35%.CustomsTo classify imports and exports, Indonesia uses theHarmonized System of nomenclature and codification ofgoods. To honor its commitments to the WTO and respondto the imperatives of domestic politics, the government hasimplemented two types of policy over the last few yearswhich have had a considerable effect on the level and thestructure of duties. These policies are linked to a program ofduty reduction between 1996 and 2003, and to a program oftariff harmonization between 2004 and 2010.Other taxes that businesses should be aware of include VATat 10%, luxury goods tax for imported goods which rangefrom 10% to 75% among many others state duties.

Import & ExportFor foreign companies looking to import goods fromIndonesia, it requires preparation in terms of transport andlogistics, as well as the tariffs and non tariff barriers appliedby different countries on Indonesian products. Forexample,Indonesian cocoa imports within Europe has dutiesof 7.7-9.9% imposed upon it, whereas cocoa from Africancountries is tariff free.Indonesian products are subject to non tariff bariers too suchas palm oil exported to the European Union being subject toregulations that demand proof of environmentally friendlypractices in production to mitigate climate change. Coffeeexports are subject to quality controls on the amount ofresidual pesticides they contain by the United States, Japanand Europe, to enter the market.The time, cost and documentation to export also requirescareful attention. The average time to export goods is 21days, 10.5 days above the OECD average.For foreign companies looking to export their goods toIndonesia, it is necessary to form a relationship with a localIndonesian partner in import and distribution that has adomestic import license. Another option to this is to set up asa representative office to promote the goods of the mothercompany in the country. However such licensing does placerestrictions on the kinds of transactions that may be carriedout in Indonesia. The goods that are restricted for imports, as well as theapplicable import duties are subject to regular changes bythe National Agency for Export Development (please seeunder ‘Useful Organisations’). Import duties vary from 0-150% on the customs value of thegoods and whether they are considered as ‘Luxury Goods’and therefore eligable for Luxury Sales Tax. Some goods aresubject to exemptions such as capital goods and certain rawmaterials. Indonesia’s presence in the ASEAN and the applicable FreeTrade Agreements mean that goods of ASEAN origin (andcertain goods of Chinese Mainland origin) are subject topreferential treatment. Proof of ASEAN origin of the goodsis through obtaining an ASEAN Origin Certificate.Restricted goods for import include those that are producedby state owned enterprises such as fuel and petroleum, orgoods that are restricted to sole agents by the government. For more information on investment, joint ventures, importand export regulations, watch the full length videointerviews with industry experts available on the website.

More at www.gbgindonesia.com

Interview with Chaly Mah- CEO of Deloitte Asia Pacific.

Interview with Suryo Bambang Sulisto - Chairman of KADIN

Analysis and advice on the Negative Investment List as wellas regular updates.

Complete guide on taxes, import and export duties applicablein Indonesia.

Upcoming Business Events

IndogasJanuary 2011

Indonesia Furniture and Craft FairMarch 2011

IndoplasMarch 2011

Food & Hotel IndonesiaApril 2011

Renewables IndonesiaApril 2011

IndogartexMay 2011

Indomedica ExpoMay 2011

Jakarta International Yarn & Fabric ShowMay 2011

Jakarta International ExpoMay 2011

Manufacturing SurabayaJune 2011

Asia Pulp & PaperJuly 2011

Riau Industrial ExpoJuly 2011

Building & Construction Indonesia SeriesSeptember 2011

Marine IndonesiaSeptember 2011

Mining IndonesiaSeptember 2011

Renewable Energy IndonesiaSeptember 2011

For the latest events in your sector , go towww.gbgindonesia.com/events

Useful OrganisationsThese organisations are recommended places to find out moreinformation about your sector of interest and to get the latestdevelopments on regulations regarding trade.

BKPMwww.bkpm.go.idKADIN Indonesia Chamber of Commercewww.kadin-indonesia.go.idNational Agency for Export Developmentwww.nead.go.idDirectorate General of Intellectual Property Rightswww.dgip.go.idMinistry of State Owned Enterpriseswww.bumn-ri.go.id

Business Legal Services These selected legal firms cover the main services thatbusinesses in Indonesia require such as project finance, mer-gers & acquisitions, capital makets and restructuring.

Ali Budiarjo NugrohoAssegaaf Hamzah & PartnersHadiputranto Hadinoto & PartnersHiswara Bunjamin & TandjungMelli Darsa & CoMochtar Karuwin Komar

Commercial Property ServicesThese selected companies are to assist you in locatingcommercial property for offices and industrial sites.

Jones Lang LaSalleRay WhiteKnight Frank

Finance & Tax ServicesThese auditors are affliliated with the ‘Big Four’

KAP Haryanto Sahari & Rekan (Price WaterhouseCoopers)KAP Osman Bing Satrio (Deloitte)KAP Purwanto Sarwoko Sanjaja (Ernst & Young)KAP Sidharta, Sidharta, Widjaja (KPMG)

The following are government owned (Persero) institutionsinvolved in trade finance services.

Asuransi Ekspor IndonesiaBank Ekspor IndonesiaPAN Multi Finance

The complete directory of services and organisationsavailable at www.gbgindonesia.com

THE NEXT STEPS

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