indonesia)asgate)to)global)produc2on)chain...

1 Indonesia Investment Promo/on Centre (IIPC) Sydney

Indonesia as Gate to Global Produc2on Chain

Sundowner, Perth, 28 November 2013

Muhammad Nasir Udin La=ef, Director IIPC Sydney


Indonesia Economic Updates

What We Have Been Done..

Some Issues and Concerns

Outline


Indonesia Economic Updates


-‐13.1

0.8

4.9 3.5 4.4 4.9 5.1

5.7 5.5 6.3 6.4 4.6

6.2 6.5 6.2 6 5.8 5.6

-‐15

-‐10

-‐5

0

5

10

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Q1 Q2 Q3

Indonesia Economic Updates GDP Growth 1998-‐2013

The Investment Coordina/ng Board of the Republic of Indonesia 5

2012 2013 Target 2013

RealizaDon (% of target) Q-‐I Q-‐II Q-‐ III Jan-‐Sep Q-‐I Q-‐II Q-‐III Jan-‐Sep

Domes=c 19,7 20,8 25,2 65,7 27,5 33,1 33,5 94,1 117,7 79,9% FDI 51,5 56,1 56,6 164,2 65,5 66,7 67,0 199,2 272,6 73,1%

TOTAL 71,2 76,9 81,8 229,9 93,0 99,8 100,5 293,3 390,3 75,1%

Quarter III 2013 y-‐o-‐y q-‐o-‐q

Domes=c 32,9% 1,2%

FDI 18,4% 0,4%

TOTAL 22,9% 0,7%

Jan-‐Sep 2013 y-‐o-‐y

Domes=c 43,2%

FDI 21,3%

TOTAL 27,6%

TW I TW II TW III Jan-‐Sep 2012 71.2 76.9 81.8 229.9

2013 93.0 99.8 100.5 293.3

0

50

100

150

200

250

300

350

Rp Triliun

Indonesia Economic Updates Investment RealizaDon Q3 2013


Quarter III 2012 Quarter III 2013

Jan-‐Sep 2012 Jan-‐Sep 2013

T= Triliun

DomesDc Rp.25,2 T (30,8%)

FDI Rp.56,6 T (69,2%)


FDI Rp.164,2 T (71,4%)


FDI Rp.67,0 T (66,7%)


FDI Rp.199,2 T (67,9%)

Indonesia Economic Updates Investment RealizaDon Comparison of FDI and Domes=c Investment


Indonesia Economic Updates NegaDve Investment List Revision of Presiden=al Regula=on No.36 of 2010

In the proposed “nega=ve investment list” which will be decided as the revision of the 2010 law, the government plans to: •  Allow foreign investors (up to 100%) in the management and opera=on of

ports, airports, land terminals and drydocks as long as such projects remained within the parameters of public-‐private partnerships.

•  Open the door to foreign investors wishing to operate in the film distribu=on business, with an ownership limit set at 49%

•  Relax the requirements limi=ng foreign interests in several sectors: ü  up to 85% in pharmaceu=cal businesses (from a current maximum of

70%), ü  up to 70% in the eco-‐tourism industry (from a current maximum of 49%), ü  65% in the telecommunica=ons sector, ü  Zand up to 85% in venture capital firms.


What we have been done…


9

Investor

Notary

Ministry of Law and

Human Rights

RegistraDon License

Principle License

ImplementaDon Permits 1. Loca=on Permit 2. Building Construc=on Permit (IMB) 3. Nuisance Permit UUG/HO 4. Company Registra=on Cer=ficate (TDP), etc.

Non-‐Fiscal Facility Producer Importer Registra=on Number (API-‐P) Fiscal Facility 1. Customs Facility Approval for Capital Goods 2. Corporate Income Tax Facility Proposal

Business License

Investor Registra=on

Applica=on for Principle License

Submission of the Company’s Deed of

Establishment (Ar=cles of Associa=on)

Submission of Cer=ficate of Incorpora=on

Applica=on for Business License

COMMERCIAL PHASE

PREPARATION PHASE

CONSTRUCTION PHASE

1 1a



1b

1c

2

4

3

5

6

7 Fiscal FaciliDes

Customs Facility Approval for Raw Materials 8

No registraDon license required by the new regulaDon (Perka BKPM No.5/2013)

What we have been done.. Simplified Investment Procedure


What we have been done... IndOz Beef Investment and Trade Forum 2013

Source: Ministry of Agriculture RI, 2013

v  Indonesia offers great opportunity for beef cahle industry for Australia. A firm plaiorm in co-‐opera=on between two countries is needed to maintain the food security and to develop the regional economic strength. We have highlighted and incorporated the importance of this in the IA-‐CEPA.

v  There are 3 primary co-‐investment opportuni=es in beef and cahle industry between Indonesia and

Australia: 1.  Direct Australian investment in Indonesia cahle breeding and beef valued-‐added chains (i.e :

Elders) 2.  Direct Indonesian Australia in cahle sta=ons (i.e: Santori) 3.  Indonesia-‐Australia business co-‐investment (i.e : join venture CPC-‐Agrogiri Perkasa)

v  Indonesia needs food security, Australia needs market security, so Indonesia and Australia need to

work together.


What we have been done... Australia – Investment Rank Q1-‐Q3 2013 Among other countries Excl. oil,gas and financial sectors

Source:BKPM

Rank Origin Country Investment Value (US$. Million)

Number of Project

1 Japan 3.637,0 548

2 Singapore 3.125,7 923

3 United States 1.993,1 125

4 South Korea 1.635,2 494

5 United Kingdom 983,0 140

14 Australia 181,6 174


What we have been done... Australia – Investment RealisaDon 2010–2013 (Q3) (USD Million) Excl. oil,gas and financial sectors

214.2

89.7

743.6

181.6

-‐

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

2010 2011 2012 Q1-‐ Q 3 2013

Million USD

Source:BKPM


What we have been done... Australia – Investment RealisaDon 2010–2013 (Q3) per Sector (USD Million) Excl. oil,gas and financial sectors

Source:BKPM

68%

16%

6%

2% 2%

6% Chemical and PharmaceuDcal Industry

Mining

Metal, Machinery & Electronic Industry

Electricity, Gas & Water Supply

Other Services

Others

834,1

193,9

77

31

20,8

72,2

Total USD 1,229 million


What we have been done... Australia – Investment RealisaDon 2010–2013 (Q3) per Loca=on (USD Million) Excl. oil,gas and financial sectors

Source:BKPM Total USD 1,229 million

Sumatera: 7.12

Java: 303.76

Kalimantan: 787.92

Bali & Nusa Tenggara: 52.62

Sulawesi: 36.81

Maluku: 36.58

Papua: 4.33

“most Australian investment is outside Java”


Rank Company Sector Province Investment

(US$. Thousand)

1 PT. RAMM LINDE LNG Chemical and Pharmaceu=cal Industry Maluku 188,350 2 PT. KOMUNITAS HIDUP BAIK Real Estate, Industrial Estate and Business Ac=vi=es Banten 24,200 3 PT. DIRECT NICKEL Non Metallic Mineral Industry North Maluku 19,900

4 PT. LOMBOK INDUSTRIAL MARINA Motor Vehicles & Other Transport Equipment Industry West Nusa Tenggara

15,000

5 PT. DREAM BEACH LAND Hotel and Restaurant West Sumatera 12,000

6 PT. KHATULISTIWA INDAH PERMAI Motor Vehicles & Other Transport Equipment Industry West Sumatera

10,000

7 PT. HANNA MANNA SEJAHTERA Real Estate, Industrial Estate and Business Ac=vi=es

West Java 7,500

8 PT. EMVIROMENTAL SOLUTIONS Construc=on West Nusa Tenggara

5,875

9 PT. SINAR MEADOW INTERNATIONAL INDONESIA

Food Industry Jakarta

5,038.6

10 PT. SATRIO MANUFACTURING Metal, Machinery, and Electronic Industry West Java 4,200 ….

What has been done... Australia – Investment Q3 2013 Australia’s Investors in Indonesia (Approved Investment Quarter 3, 2013) Excl. oil,gas and financial sectors


Some issues and concern…


Some Issues and Concerns.. Preferable Investment

•  Focus more on quality investments and smart capital to help transform from a resource-‐ and cheap labour-‐based economy to a more technology-‐ and produc=vity-‐focused economy.

•  Ensure knowledge and technology transfer, well as a rise in produc=vity. •  BKPM’s current investment plan priori=ses seven key sector groupings, including : •  Sectors that create added value to industries such as agriculture (including cahle and livestock) and fisheries

•  Consumer goods, including: food and beverages, home appliances and oil refinery industries.

•  Infrastructure sectors encouraged through PPPs, including: renewable energy, air and sea ports, roads, water supply, waste management and railways

Indonesia need added value investment


Some Issues and Concerns.. Upcoming ElecDon

• Habibie : Libera=on of press and freedom of speech • Gus Dur : Strengthening of civil society • Megawa= : Consolida=on of democracy • SBY : The enactment of investment law and the con=nue of economic reform

The result of Post Suharto elec=on has been encouraging


Summary

What : Expanding Business

Where : Indonesia

Why : Market size and its progress trajectory

Who: IIPC & Consulate General Perth

When : Now


THANK YOU

Gold Field House, 1 Alfred Street, Suite 903 Sydney, NSW 2000, AUSTRALIA P : +612 9252 0091 F : +612 9252 0092 W : www.bkpm.go.id/iipc/home/sydney PIC : Muhammad Nasir Udin La=ef E : [email protected]; iipc-‐[email protected]

indonesia)asgate)to)global)produc2on)chain...

Documents