indonesia and vietnam asean’s hottest …€¢ sido muncul (pt. industri jamu dan farmasi sido...

4/07/2017

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© Sembcorp Industries 2017 1Co-confidential

Indonesia and Vietnam

ASEAN’s Hottest Manufacturing Destinations

(Indonesia, Central Java Province)

Sembcorp Parks Management

(Kendal Industrial Park)

Keiko Fujita

Thursday, July 6 2017

@ ASEAN Japan Centre


Understanding about Indonesia(as of 2017)

Advantages Challenges

1 Local Market ‘s Growth

Potential

Tough Competition with

competitors

2 Huge Local Market’s Unclear application of Law &

Regulation

3 Reasonable Labor Cost Increase of Labor Cost

4 Supply base for Assemblers Uncertainty of Security & Society

5 Industry Integration

Export Base to other Countries

Poor Infrastructure

Survey Report on Overseas Business Operations by Japanese Manufacturing Companies

Results of the JBIC FY2016 Survey:

Outlook for Japanese Foreign Direct Investment (28th Annual Survey)

From JBIC Survey (Indonesia)

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Jakarta Area

(Jabodetabek)

Surabaya Area Riau Islands

(Batam Bintan)

Population About 10.12 million

(Jakarta DKI)

About 2.85 million

(Surabaya City)

About 1.16 million

(Batam City)

Advantage Capital Economy Area

(Biggest Market in

Indonesia)

Industry Integration

High Market

Potential (followed

by Jakarta)

Special Economic Zone

(FTZ)

Manufacturing activity

making use of Singapore

as Hub

Challenges High Labor Cost

/Consumer Price

Traffic Jam

Labor Issues

Tough Competition

Industry Integration

not enough

High Labor Cost

Traffic Jam

High Labor Cost

Competition with other

countries as Export Base

(China/Vietnam)

Distance to Local Market

Base



Jakarta Area

(Jabodetabek)

Surabaya Area Riau Islands

(Batam Bintan)

Semarang Area

(Central Java)

Population About 10.12

million

(Jakarta DKI)

About 2.85

million

(Surabaya City)

About 1.16 million

(Batam City)

About 1.72 million

(Semarang City)

Advantage Capital Economy

Area (Biggest

Market in

Indonesia)

Industry

Integration

High Market

Potential

(followed by

Jakarta)

Special Economic Zone

(FTZ)

Manufacturing activity

making use of

Singapore as Hub

Minimum wage half of

Jakarta & Surabaya

Between two big

economies in Java Island

Possible to recruit local

talents

Challenges High Labor Cost

/Consumer Price

Traffic Jam

Labor Issues

Tough Competition

Industry

Integration not

enough

High Labor

Cost

Traffic Jam

High Labor Cost

Competition with

other countries as

Export Base

(China/Vietnam)

Distance to Local

Market Base

Need to establish

Industry Integration &

Japanese Service

Support

Need to train Manager

class Staffs

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• Area：32,800 square Kilometer

• Population：33.74 million (2015)

• Major Cities：Semarang (Capital), Solo (Hometown of President Jokowi),

Magelang

Central Java Province

Central Java Tourist Information (Japanese) http://enjoytrip.wixsite.com/indonesia-jawa


Infrastructure of Central Java –Trans Java Tall Highway

At Lebaran time in 2017, road Temporary opened partially

To be Fully Connected by 2019

Source：インドネシア公共事業省

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Infrastructure of Central Java –PowerJapanese Companies related Power Plant Project in Central Java

• Batang Power Plant

J Power, Itochu Corporation

1000MW x 2－ Expected to Complete 2020

• Tanjung Jati B Coal Fire Power Plant(Jepara)

Sumitomo Corporation, Kansai Power

1, 2 - 660MW x 2 – In Operation

3，4- 660MW x 2 – In Operation

5，6- 1000MW x 2 – Under construction, Expected to start operation by 2021

地図データ：（C）OpenStreetMap contributors

Tanjung

Jati B

Batang

Semarang


Infrastructure of Central Java –Port / Airport

Semarang, Ahmad Yani Airport

20 Minutes Drive from Semarang Town Center

Surakarta (Solo), Adi

Sumarmo Airport

30 Minutes Drive from

Solo Town Center

Semarang, Tanjung Emas

International Port

20 Minutes Drive from

Semarang Town Center

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Area：313.70 square kilometerPopulation：1.72 million (2016)One of 5 Major Cities in Indonesia (Jakarta, Surabaya, Medan, Bandung, Semarang)

Developed as Port City (from Ming Dynasty time of China, and Colonial Time under Dutch)First Railway in Java Island was developed (in 1867, 25km)

Japanese Living in Semarang: about 140 in Semarang Japan Club (Actual number about 200 pax)Japanese companies around Semarang Area : 25 companies (from JETRO survey)

Capital of Central Java Province - Semarang City


Comparison of Minimum Wage in Indonesia

Area IDR USD

Jakarta DKI 3,355,750 258.13

Bekasi (Near Jakarta) 3,530,438 271.57

Karawang (Near Jakarta) 3,605,271 277.33

Surabaya (East Java) 3,296,213 253.55

Batam City 3,241,126 249.32

Semarang City 2,125,000 163.46

Kendal Regency 1,774,867 136.53１USD = 13,000 IDR

Minimum Wage in 2017

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• Kubota (2 coys)－Diesel Engine and Bending Machine OEM

• Sumitomo Forestry (2 Coys)－Particle Board & Materials for Musical Instruments & Wooden Building Materials

• Yazaki－Wire Harness

• Fukuryo (Aoyama Trading) －Business Suit (Men’s Apparel)

• Morinaga－Snacks, Sweets

• Vox Trading (House)－Wasabi, Vegetable & Spice Processing

• Nippon Indosari (Shikishima, Sojitsu) －Bread

Japanese Company in Central Java Province, Semarang Area


• Sido Muncul (PT. Industri Jamu dan Farmasi Sido Muncul Tbk.)

Major Jamu company,Tolak Angin is quite popular among

Indonesia people for flu medicine

• Djarum

Major Tabacco Company located in Kudus (Suburb of Semarang)

Currently one of the top group company with business diversion

• Polytron (PT Hartono Istana Teknologi)

Major Consumer Electronics company. HQ and factory is in

Semarang & Kudus. Currently manufacturing Smart Phone

• Sritex (PT. PT SRI REJEKI ISMAN Tbk)

HQ at Solo (Surakarta), Major Garment Company

• Pan Brothers (PT. Pan Brothers Tbk)

HQ in Tangerang (West Java), recently active to set-up factories

in Central Java – OEM for Uniqlo

Central Java Province, Major Indonesian Companies (HQ and Factories)

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Life in Semarang


Semarang Japanese Club

• Members：140 (Include Adults/Children, as of November 2016)

• Events：General Meeting, Recreation (Fishing, BBQ) Golf Competition, Newsletter, Seminar, etc

• Started Japanese Supplementary Lessons (twice/month)

From Jakarta

Shinbun on 10

April

4/07/2017

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Lastly：：：：About Sembcorp and Kendal Industrial Park


“One of the Key projects representing corporation of

Indonesia & Singapore”

Followed by Riau Province (Batam, Bintan)

Opening Ceremony of KIP on 14 November 2016

PM Lee Sheng Loong of Singapore (Left), President Joko Widodo (Jokowi) of Indonesia （Right）

Kendal Industrial Park（（（（KIP)

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100%

Sembcorp Utilities

Provides Energy,

Water, on-site

logistics and solid

waste management

solutions to

Industrial and

Municipal customers

Sembcorp Development

Develops, markets and

manages urban

developments comprising

industrial parks as well as

business, commercial and

residential space

Sembcorp Marine

Offers a full spectrum of Integrated Solutions focusing on four key capabilities: rigs & floaters, repairs & upgrades, offshore platforms and specialized shipbuilding

100%Listed 39%

Sales Turnover: S$9.5Bn

* As of December 31 2015（Sembcorp Facts & Figures)

61%

Listed 50.5%

Singapore MOF

Temasek Holdings 49.5%

Other business:

Singapore Mint

Sembcorp environment etc

Sembcorp Industries

China

�Wuxi-Singapore Industrial Park

�Sino-Singapore Nanjing Eco Hi-Tech Island

�Singapore-Sichuan Hi-Tech Innovation Park

�China-Singapore Suzhou Industrial Park*

*Projects not managed by SCD

Vietnam

�Vietnam Singapore Industrial Park (VSIP)

�VSIP Binh Duong Integrated Township & Industrial Park

�VSIP Bac Ninh Integrated Township & Industrial Park

�VSIP Hai Phong Integrated Township & Industrial Park

�VSIP Quang Ngai Integrated Township & Industrial Park

�VSIP Hai Duong Integrated Township & Industrial Park

�VSIP Nghe An Integrated Township & Industrial Park

Indonesia� Gallant Venture *

– Batamindo Industrial Park

– Bitan Industrial park

– Bintan Resort

� Karimun Marine & Industrial Complex *

�Kendal Industrial Park

Sembcorp Urban Development

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Kendal Industrial Park - Location

KIP

Phase 1

Within One hour drive

distance from Port,

Airport, and City Center


Kendal Industrial Park（（（（KIP)

Suburb of Semarang, Capital City of Central Java Province (About

20km from Town Center)

Total Development Area：2700 ha

Phase I ：：：：860 ha

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© Sembcorp Parks Management Pte Ltd 2015

Contact :Kendal Industrial Park

Indonesia OfficeSenior ManagerKeiko [email protected]+ 62 818 0894 6802

Singapore OfficeManagerTomomi [email protected]+65 9632 2208

© Sembcorp Parks Management Pte Ltd 2015

Thank you!!

indonesia and vietnam asean’s hottest …€¢ sido muncul (pt. industri jamu dan farmasi sido...

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