INVEST IN INDONESIA - en.sev.org.gr · 24 Portugal 1 400 4 504 7 869 3 400 8 1,188 23 3,362 25...

32
INVEST IN INDONESIA Athens, February 2019 ADITIA PRASTA Director Indonesia Investment Promotion Centre London

Transcript of INVEST IN INDONESIA - en.sev.org.gr · 24 Portugal 1 400 4 504 7 869 3 400 8 1,188 23 3,362 25...

Page 1: INVEST IN INDONESIA - en.sev.org.gr · 24 Portugal 1 400 4 504 7 869 3 400 8 1,188 23 3,362 25 Lithuania 1 881 2 334 2 1,810 5 3,025 26 Ukraine 2 0 7 1,022 9 694 10 945 28 2,661 27

INVEST IN INDONESIA

Athens, February 2019ADITIA PRASTADirector

Indonesia Investment Promotion Centre London

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Why Indonesia?

2

W W W . B K P M . G O . I D

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INDONESIA AS THE LARGEST ECONOMY IN ASEAN

WHERE

ON EARTH

Top-20

GDP Current

Prices

in 2017(USD billion)

$309

$321

$437

$1,015

Malaysia

Phillipines

Thailand

Indonesia

ASEAN GDP in 2017

(USD Billion)

I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 3

The largest economy in SE Asia &

the only member of G20 in ASEAN

16th largest economy

$11

$17

$22

$66

$215

$305

Brunei Darussalam

Lao PDR

Cambodia

Myanmar

Vietnam

Singapore

Source: International Monetary Fund (IMF), 2018

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INDONESIA: DOING BUSINESS 2019 AND INVESTMENT GRADE

91

72 73

0

20

40

60

2015 2016 2017 2018 2019

EODB Ranking IndonesiaEconomies 2017 2018 2019

Malaysia 23 24 15

Thailand 46 26 27

China 78 78 46

Vietnam 82 68 69

Indonesia 91 72 73India 130 100 77

Regional EODB

+41in 4 years

I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 4

114 109

91 80

100

120

Source: World Bank - Doing Business Report

India 130 100 77

Philippines 99 113 124

Cambodia 131 135 138

Laos 139 141 154

Myanmar 170 171 171

BBB- / Stable BBB/Stable BBB- / Positive BBB- / PositiveBaa2/Stable

Credit Ratings 2018

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INDONESIA HAS BEEN SHOWING ITS STABILITY & RESILIENCE

I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 5

• Indonesia is the World’s THIRD largest democracy

• General elections in Indonesia have shown nonegative impact on Indonesia’s economic growth

• The effect after general election in 2009 showed an

increase trend in GDP growth, while in general

election in 2014, displayed stable movement in GDP

growth

Source: Indonesia Central Bureau of Statistics & IMF, 2019

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RISING INDONESIAN MIDDLE CLASS

195

180

145110

240265

280 280

Mckinsey research shows Indonesian consuming class

will grow almost double in 10 years since 2010

22

26

73

85

Apparel

Leisure

Food and beverage

Financial services

57

105

194

565

2011 2030

INDONESIAN MIDDLE CLASS SPENDING (US$ BILLION)

I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d

4585

135170

195Below

Consuming class

Consuming class

2010 2020 2030 in 5-6%

GDP scenario

2030 in 7% GDP

scenario

4

6

8

11

13

14

Health care

Beauty and

cosmetics

Telecommunications

Housing and utilities

Transportation

Education

13

16

19

26

30

42

Source: Canback Global Income Distribution Database; Indonesia’s Central Bureau of Statistics, Mckinsey Consumer and Shopper Insight Indonesia Study, 2011, Mckinsey Global Growth Model; Mckinsey

Global Institute analysis

6

Millions

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COMPETITIVE LABOUR MARKET

Indonesia 67%

Population ages 15-64 (% of total)

The Youngest Population compared to other OECD

Members

Education Participation Rate

(% of total)

I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d

INCENTIVES

Euro area 64%

UK, 63%

Japan, 60%

OECD, 65%

United States, 65%

19

60

19

63

19

66

19

69

19

72

19

75

19

78

19

81

19

84

19

87

19

90

19

93

19

96

19

99

20

02

20

05

20

08

20

11

20

14

20

17

Source: OECD, 2018

7

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INDONESIA MINIMUM WAGE PER PROVINCES IN 2019

Java, Bali, and Nusa Tenggara Islands

Sulawesi, Maluku, and Papua Island

North Sulawesi € 191 (Rp 3,051,076)

Central Sulawesi € 133 (Rp 2,123,040)

South Sulawesi € 179 (Rp 2,860,382)

Sumatra Island

Aceh € 184 (Rp 2,935,985)

North Sumatera € 144 (Rp 2,303,402)

West Sumatera € 144 (Rp 2,289,228)

Riau € 167 (Rp 2,662,025)

Kalimantan Island

West Kalimantan € 139 (Rp 2,211,266)

Central Kalimantan € 164 (Rp 2,615,735)

South Kalimantan € 166 (Rp 2,651,781)

East Kalimantan € 172 (Rp 2,747,560)

North Kalimantan € 173 (Rp 2,765,463)

€ 1 = IDR 15,950 (per February 2019)

Minimum wage below

€200/month in almost all

provinces

I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d

Java, Bali, and Nusa Tenggara Islands

D.K.I. Jakarta € 247 (Rp 3,940,972)

West Java € 105 (Rp 1,668,372)

Central Java € 101 (Rp 1,605,396)

D.I. Yogyakarta € 98 (Rp 1,570,922)

East Java € 102 (Rp 1,630,058)

Banten € 142 (Rp 2,267,965)

Bali € 144 (Rp 2,297,967)

West Nusa Tenggara € 124 (Rp 1,971,547)

East Nusa Tenggara € 112 (Rp 1,793,298)

South Sulawesi € 179 (Rp 2,860,382)

South East Sulawesi € 147 (Rp 2,351,869)

Gorontalo € 149 (Rp 2,384,020)

West Sulawesi € 149 (Rp 2,369,670)

Maluku € 151 (Rp 2,400,664)

West Papua € 181 (Rp 2,881,160)

Papua € 196 (Rp 3,128,170)

Riau € 167 (Rp 2,662,025)

Jambi € 152 (Rp 2,423,888)

South Sumatera € 176 (Rp 2,805,751)

Bengkulu € 128 (Rp 2,040,406)

Lampung € 141 (Rp 2,241,269)

Bangka Belitung € 187 (Rp 2,976,705)

Riau Islands € 167 (Rp 2,662,025)

Source: Ministry of Workforce, 2019

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Fintech Companies GrowthFintech Companies Growth Fintech Companies Business (2017)Fintech Companies Business (2017)

FINANCIAL TECHNOLOGY IS GROWING IN INDONESIA

I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d

Fintech Transaction VolumeFintech Transaction Volume

Source: Indonesian Fintech Association, 2017Source: Indonesian Fintech Association, 2017

(in billion US$)

9

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Investment Performance

10

W W W . B K P M . G O . I D

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FDI REALIZATION TO INDONESIA FROM AROUND THE WORLD, 2014-2018

Based on Region Based on Country of Origin

[CATEGORY

NAME],

$[VALUE]B,

26%

[CATEGORY

NAME],

$[VALUE]B,

32%

[CATEGORY

NAME],

$[VALUE]B,

[PERCENTAGE]

[CATEGORY

NAME],

$[VALUE]B,

[PERCENTAGE]

[CATEGORY

NAME],

$[VALUE]B,

[PERCENTAGE]

[CATEGORY

NAME],

$[VALUE]B,

[PERCENTAGE]

[CATEGORY

NAME],

$[VALUE]B,

[PERCENTAGE]

[CATEGORY

NAME],

$[VALUE]B,

[PERCENTAGE]

I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 11

Based on Sectors

[CATEGORY

NAME],

$[VALUE]B,

12.7%

[CATEGORY

NAME],

$[VALUE]B,

10.1%

[CATEGORY

NAME],

$[VALUE]B, 9.1%[CATEGORY

NAME],

$[VALUE]B, 8.2%[CATEGORY

NAME],

$[VALUE]B, 8.1%

[CATEGORY

NAME],

$[VALUE]B, 7.9%

[CATEGORY

NAME],

$[VALUE]B, 6.8%

[CATEGORY

NAME],

$[VALUE]B,

37.2%

[CATEGORY

NAME],

$[VALUE]B,

14%

[CATEGORY

NAME],

$[VALUE]B, 7%

[CATEGORY

NAME],

$[VALUE]B, 6%

[CATEGORY

NAME],

$[VALUE]B, 5%

[CATEGORY

NAME],

$[VALUE]B, 5%

[CATEGORY

NAME],

$[VALUE]B, 5%

32%

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GREECE: INVESTMENT 2019

61 60 61

67

54

56

58

60

62

64

66

2015 2016 2017 2018 2019

EODB Ranking GREECE

237.41

195.64 192.77 200.69

218.06

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00

100.00

150.00

200.00

250.00

300.00

350.00 GREECE GDP (US$ Billion) and

Investment Percentage to GDP

GDP Investment %

I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 12

72

66

68

70

72

74

Source: World Bank - Doing Business Report

B+ / positive BB- / Stable CCC+ / PositiveB3/positive

Credit Ratings (2018)

11.91 9.82 10.61 11.73 12.61

-

10.00

20.00

2014 2015 2016 2017 2018*

-

50.00

Source: IMF, 2018

*2018: Projection

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EUROPEAN FDI TO INDONESIA 2014 – 2018

No Country

2014 2015 2016 2017 2018 GRAND TOTAL

ProjectInvestment

(US$. Thousand)Project

Investment

(US$. Thousand)Project

Investment

(US$. Thousand)Project

Investment

(US$. Thousand)Project

Investment

(US$. Thousand)Total Project

Investment Total

(US$. Thousand)

1 Netherlands 181 1,726,338 421 1,307,783 554 1,475,187 871 1,489,424 840 943,124 2,867 6,941,855

2 United Kingdom 182 1,587,955 267 503,219 360 307,264 585 774,784 483 271,133 1,877 3,444,356

3 Switzerland 56 150,831 103 61,845 152 346,703 227 615,458 225 243,283 763 1,418,120

4 Germany 115 50,161 169 57,268 238 133,159 367 288,980 361 280,418 1,250 809,986

5 France 115 200,230 197 131,571 301 109,017 460 249,570 408 49,631 1,481 740,019

6 Luxembourg 23 85,783 37 66,649 88 181,905 91 79,380 134 134,261 373 547,977

7 Belgium 21 13,614 72 7,445 80 169,703 136 130,532 140 216,373 449 537,666

8 Italy 51 63,024 118 104,123 110 26,719 181 64,859 187 32,088 647 290,812

9 Spain 25 15,694 65 56,587 70 50,089 106 7,801 102 10,521 368 140,692

10 Malta 2 119,736 2 7,549 5 4,598 9 131,883

11 Austria 13 1,589 16 275 29 7,444 44 3,162 47 71,407 149 83,876

12 Turkey 25 64,118 25 3,885 41 2,690 70 1,551 51 4,656 212 76,899

13 Poland 5 4,350 12 18,622 20 1,605 22 19,726 9 200 68 44,503

14 Sweden 12 1,730 18 310 40 4,469 61 17,897 94 16,830 225 41,236

15 Norway 3 106 13 1,827 25 15,656 33 5,584 24 17,202 98 40,376

16 Denmark 15 1,438 15 2,023 22 760 56 17,959 56 1,816 164 23,996

17 Cyprus 2 7,572 4 0 5 1,340 12 6,601 15 5,574 38 21,087

18 Channel Islands 1 190 3 80 10 4,674 13 14,814 7 75 34 19,833

19 Russia 25 3,569 17 1,008 17 5,494 49 7,406 45 2,178 153 19,655

I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d

19 Russia 25 3,569 17 1,008 17 5,494 49 7,406 45 2,178 153 19,655

20 Finland 7 3,598 2 0 11 12,252 17 200 20 3,528 57 19,578

21 Ireland 4 50 11 1,996 17 3,640 16 602 48 6,288

22 Guernsey 1 0 5 4,099 1 765 7 4,864

23 Czech 4 200 5 766 6 1,255 8 1,554 7 969 30 4,743

24 Portugal 1 400 4 504 7 869 3 400 8 1,188 23 3,362

25 Lithuania 1 881 2 334 2 1,810 5 3,025

26 Ukraine 2 0 7 1,022 9 694 10 945 28 2,661

27 Bulgaria 2 0 2 870 3 0 8 1,213 7 521 22 2,604

28 Hungary 3 540 1 0 6 80 5 50 7 1,900 22 2,571

29 Romania 2 429 7 293 4 1,578 13 2,300

30 Greece 4 43 5 610 6 728 15 1,38131 Croatia 1 0 1 0 3 783 5 783

32 Slovakia 1 0 1 0 4 301 4 450 3 20 13 771

33 Yugoslavia 2 600 2 0 4 600

34 Slovakia 2 0 3 0 2 277 3 139 3 179 13 594

35 Latvia 2 77 2 59 1 141 5 276

36 Scotland 3 5 2 17 4 159 7 80 4 0 20 261

37 Isle of Man 3 92 2 120 2 0 7 212

38 Azerbaijan 1 0 1 180 1 0 3 180

39 Estonia 2 150 1 30 1 0 1 0 5 180

40 Iceland 1 0 2 0 1 2 4 2

41 Serbia 2 0 1 0 3 0

42 Liechtenstein 1 0 4 0 3 0 8 0

43 Gibraltar 1 0 1 0 1 0 3 0

Source: BKPM, 2019

13

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GREECE FDI TO INDONESIA 2014-2018

Bali, 1,114.2

Nusa Tenggara

Timur, 43.3

Nusa Tenggara

Barat, 223.9

Jawa Barat,

0.1

By Location (US$. Thousand)

I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 14

Metal,

Machinery,

Electronic

Medical

instrument...

Industry , 0.1

Hotel and

Restaurant,

467.2

Other

Services,

514.2

Trade and

Reparation ,

400.0

By Sector (US$. Thousand)

GREECE Companies in Indonesia (2014-2018)

1. Flores Blue Waters

2. Melium Nusantara

3. Indonesia Surfaris

4. Menikmati Distribusi

5. Sandorini Greek Cuisine

6. Pick Creative Agency

7. Primitive World

8. Nautilus Subscooters

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GREECE AND NEIGHBOURS FDI TO INDONESIA (2014-2018)

1,000

1,200

1,400

1,600

1,800

2,000

FDI 2014-2018 (US$ Thousands) Total FDI 2014-2018(US$ Thousands)

I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 15

0.017% 0.017%

0.009%

0.005%

Bulgaria Hungary Greece Croatia

FDI Percentage to All European FDI

(Total 2014-2018)

2014 2015 2016 2017 2018

Croatia 0 0 0 0 783

Bulgaria 0 870 0.0 1,213 521

Hungary 540 0 80.5 50 1,900

Greece 0 0 43.3 610 728

0

200

400

600

800

1,000

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Investment Regulations

16

W W W . B K P M . G O . I D

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INVESTMENT FOREIGN OWNERSHIP REGULATION

More open to investment• More business fields open to 100% FDI.

• Less business fields open with condition, reduced from

664 to 515.

• More business fields open to foreign majority share

ownership (>50% FDI).

• Less business fields reserved for domestic investment,

reduced from 66 to 51.

More open to investment• More business fields open to 100% FDI.

• Less business fields open with condition, reduced from

664 to 515.

• More business fields open to foreign majority share

ownership (>50% FDI).

• Less business fields reserved for domestic investment,

reduced from 66 to 51.

Simpler investment procedure

• No more technical approval from other ministries or

institutions.

• No more condition related to regional government.

• Special Economic Zones (SEZs) are excluded from the

negative list, except for business fields allocated for SMEs.

Simpler investment procedure

• No more technical approval from other ministries or

institutions.

• No more condition related to regional government.

• Special Economic Zones (SEZs) are excluded from the

negative list, except for business fields allocated for SMEs.

I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 17

100% FDI Distributor affiliated with

production

From 67% previously

100% FDI Raw material for

pharmacy

From 85% previously

100% FDI E-Commerce in

partnership with SMEs

From previously closed to FDI

100% FDI

MarketplaceFor min. investment of IDR 100 billion (USD 8

million).

Open for 49% FDI for investment < IDR 100 million

100% FDI Film industry

Production, post- production, distribution, projection

67% FDI Transport infrastructure & support services

Including cargo handling, air transport, renting & leasing

100% FDI Tourism

Sports centre, restaurant, bar, café

Source: Perpres No. 4 of 2016

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Agriculture• Cattle breeding & farming

• Corn plantation

• Soya plantation

• Rice farming

• Tropical fruits

Power Generation• Geothermal

Manufacturing Industry• Iron & steel

• Clothing

• Semi conductors

• Electronic components

• Computer

• Communication devices

• Television

• Tires

• Pharmaceutical

30% of investment valueReduction of corporate net income tax for 6 years, 5% each year.

Including:• Accelerated Depreciation & Amortization• Lower Tariff for Dividend Tax (10%)• Longer period of Fiscal Loss Compensation

(5-10 years)

TAX ALLOWANCE Government Regulation No.9/2016

I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 18

• Geothermal

• Alternative/renewable energy

Oil & gas industry• Oil refinery

• Liquefied Natural & Petroleum Gas

• Lubricant

Source: PP No. 9/2016

• Pharmaceutical

• Cosmetics

• Fish & shrimp processing

• Etc.

Real Estate for Tourism• Tourism area

145business fieldsEligible for tax allowance, expanded from 143 segments in the previous regulation

Under certain requirements among others:

investment value or export orientation,

manpower absorption, local content, and project

location (especially outside Java island).

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TAX HOLIDAY

Requirements:

1. An Indonesian legal entity with a new

investment in a pioneer industry, with a

minimum capital investment of IDR100 billion

(approximately €6.5 million).

2. First time applying for Tax Holiday.

3. Pioneer Industries – can prove that the

New Capital

Investment

(IDR)

Euro

(Approx)

Tax Holiday

Rate

Tax

Holiday

Period

Min 30 Trillion 1.9 billion100%

20 years

15 Trillion - 30

Trillion

900million-

1.9 billion100% 15 years

17 eligible pioneer industries:

1. Basic metal industries;

2. Oil refinery industries ;

3. Petrochemical industries from oil, gas, or coal;

4. Basic an-organic chemicals

5. Basic an-organic chemicals from agriculture,

plantation, or forestry;

6. Basic material industry for pharmaceutical ;

7. Semi-conductor and other computer main

component industries;

I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 19

industry will have extensive linkages, add

value and high externality, introduce new

technologies, and has strategic value to the

national economy.

4. Compliance to the Indonesian capitalization

rules that is max 4:1 on debt-to-equity ratio,

according to Ministry of Finance Regulation

5 Trillion - 15

Trillion

300-900

million100% 10 years

1 trillion - 5

trillion

65-300

million100% 7 years

500 billion - 1

trillion

30-65

million100% 5 years

100 billion -

500 billion

6.5-30

million50% 5 years

Source: PMK No. 35/PMK.010/2018

component industries;

8. Main component industry for

telecommunication;

9. Main component industry for medical devices;

10. Machinery industries;

11. Machinery industries for automotive;

12. Main component industry for robotic;

13. Main component industry for marine

transportation;

14. Main component industry for airplane;

15. Main component industry for railway;

16. Electric Power Generation industries;

17. Economic infrastructure.

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ONLINE SINGLE SUBMISSION (OSS) SYSTEM

OSS

B. EXISTING INVESTOR

Company

www.oss.go.id

A. NEW INVESTOR(New Registration)

(Re-registration)

I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 20

Obtaining NIB

(Nomor Induk Berusaha)

the single identity used in OSS

system

Individual

Starting on January 2, 2019

The Online Single Submission (OSS) consultation service was transferred to BKPM

Call Center: 0807 100 2576 and 1500765 (limited to 300 numbers per day)

Operational Hour: 08.00 AM - 04.00 PM

Retrieving the Queue Numbers starts from 07.30 AM - 02.00 PM

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Where to invest?

21

W W W . B K P M . G O . I D

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Since its inception in 2005,

first PPP project reach

financial close in 2016.

Thus the challenge is to

revive GCA to deliver

project to PPP scheme

PPP INFRASTRUCTURE IMPROVEMENT THROUGH 2005-2018… Change of Mindset toward PPP Scheme…

I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d

In 2018, there are 2 Operational + 11 under Construction PPP Projects

with total value of USD 8.9 Billion(One of those project has an investment value of USD 4.2 Billion)

AND ALSO

11 under Transaction + 18 under Preparation (OBC - FBC) PPP Projects

( USD 4.4 Billion)

22

Source: Bappenas, 2019

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EXISTING & PROPOSED SEZ IN INDONESIA

SEZ SEI MANGKEI 2,022.77 Ha

Industry, Logistic,

Tourism

SEZ TANJUNG API-

API 2,030 Ha

Industry, Logistic,

Export Processing and

Energy

SEZ MBTK 557.34 Ha

Industry, Logistic dan

Export Processing

SEZ PALU1,500 Ha

Industry, Logistic dan

Export Processing

SEZ BITUNG534 Ha

Industry, Logistic dan

Export Processing

Existing SEZs Total Area:

16,085.72 Ha

Operation (4 SEZs)

Construction (8 SEZs)

Remarks:

New SEZ

development plan

2015-2019

West Kalimantan

North

Kalimantan

SEZ ARUN

I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 23

SEZ TANJUNG

LESUNG1,500 Ha

Tourism

SEZ TANJUNG

KELAYANG324.4 Ha

Tourism

SEZ MANDALIKA1,035.67 Ha

Tourism

SEZ MOROTAI1,101.76 Ha

Tourism, Industry, Export

Processing and Logistic

SEZ SORONG523.7 Ha

Industry, Export Processing and

Logistic

Merauke, Papua

South SulawesiEast Nusa Tenggara

Maluku

SEZ ARUN

LHOKSEUMAWE2.622,48 Ha

Export Processing,

Logistic, Industry,

Energy, and Tourism

GALANG BATANG SEZ2.333,6 ha

Export processing,

industry, logistic, and

energy

Investments in SEZ are excluded from Foreign Ownership

Limitation’s Regulation, unless its business field is reserved for

SME and cooperatives

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TOP-10 TOURISM PRIORITY DESTINATIONS – NEW BALIS

LAKE TOBAArea : 1,849 Ha

Investment : USD 1.6 Billion

TANJUNG KELAYANGArea : 324.4 Ha

Investment : USD 1.4 Billion

BOROBUDURArea : 309 Ha

Investment : USD 1.5 Billion

WAKATOBIArea : 532 Ha

Investment : USD 1.5 Billion

MOROTAIArea : 1,101.76 Ha

Investment : USD 2.9 Billion

I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 24

TANJUNG LESUNGArea : 1,500 Ha

Investment : USD 4 Billion

KEP. SERIBU (Thousand

Island) & Kota Tua (Old

City)

Area : 1,009 Ha

Investment : USD 1.5 Billion

BROMO TENGGER

SEMERUArea : 325 Ha

Investment : USD 1.4 Billion

MANDALIKAArea : 1,175 Ha

Investment : USD 3 Billion

LABUAN BAJOArea : 400 Ha

Investment : USD 1.2 Billion

Tourism Special Economic Zone National Strategic Tourism ZoneTourism Authority 4 Super Priority

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INDONESIA AIMS TO BE THE CENTER OF DIGITAL ECONOMY IN SE ASIA IN 2020

E-Commerce

Potential of Transaction in Indonesia:2013

US$8bnPlayers

2016

US$20bn

2020

US$130bn

Financial Technology (Fintech)

Transaction in Indonesia 2016

(projection)

Nominal of transaction per

population 2014

US$14.5bn

US$56.98Players

I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 25

On Demand Services

Internet users

in 2017

Mobile social users

in 2017

112.6mn

92.0mn

Players

Internet of Things (IOT)

Market opportunity in Asia Pacific

2015

US$250bn

Players

2020

US$583bn

Source: Ministry of Communication and Informatics RI, Tech in Asia, IDC, Daily Social, Bank Indonesia, Statista, Idea, World Bank

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INVESTMENT IN INDONESIAN START-UPS REACHED US$4.93 BILLION IN 2017

US$2billion Investment from Softbank & Didi Chuxing

US$1.2billion Tencent is the largest investor

US$1.1billion Alibaba is the largest investor

US$0.5billion JD.com is one of the largest investors

0.1

Currently there are 4 start-

up unicorns from

Indonesia.

It is expected by end of 2019,

Indonesia will have 5 start-up

unicorn.

Currently there are 4 start-

up unicorns from

Indonesia.

It is expected by end of 2019,

Indonesia will have 5 start-up

unicorn.

I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 26

US$0.1billion Acquired by Grab

US$22millionIndonesian 4th unicorn, after Gojek,

Tokopedia and Traveloka

Source: Bisnis Indonesia, 2018 Unicorn Start up from Indonesia

- Rudiantara

Indonesia Minister of CIT

- Rudiantara

Indonesia Minister of CIT

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REGIONAL INVESTMENT FORUM (RIF) 2019

RIF 2019 programs:

• Seminar

• Digital Start-ups Pitching Session

• Business Clinic

• One-on-One Meeting

• Exhibition

• Investment Lounge

High Level Speakers

I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 27

Focus Sectors:

• Tourism

• Industry

• Infrastructure

• Special Economic Zones

• Agro-Industry

Date: 11 MARCH 2019Register at: www.rif2019.id

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IIIF 2019

INDONESIA

INFRASTRUCTURE

INVESTMENT

I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 28

INVESTMENT

FORUM

2019

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ABOUT BKPM

BKPM or Indonesian Investment Coordinating Board:

• Government Agency, which in charge of

implementing policy and service

coordination in investment in accordance with the

provisions of the regulations.

• As the primary interface between business and

government, BKPM is mandated to boost domestic and

I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 29

government, BKPM is mandated to boost domestic and

foreign direct investment through creating a

conducive investment climate.

BKPM Main Partners:

• All Ministries and Government Institutions of Indonesia.

• All State Owned Enterprises

• All Regional Governments of Indonesia

• Other stakeholders related to Indonesian Investment

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ΕυχαριστώThank You

Indonesia Investment Promotion Centre (IIPC)

Landmark Barbican, 200 Aldersgate (South)

London EC1A 4HD, United Kingdom

T: +44(0)20 3440 3830

D: +44 (0)20 3440 3831

E: [email protected]

I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d

IIPC SINGAPORE

IIPC SEOUL

IIPC LONDON

IIPC TOKYO

IIPC SYDNEY

IIPC TAIPEI

IIPC NEW YORK

IIPC ABU DHABI

30

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SOLICITED PPP PROJECT PIPELINE2 under operation project, 12 under construction projects, and 40 on progress projects

1. Manado - Bitung Toll

Road

2. Balikpapan - Samarinda

Toll Road

3. Pandaan - Malang Toll

1. Riau Non-Toll Road

2. Medan Municipal

Transport (LRT)

3. Patimban Port

4. Baubau Port

1. Yogya - Bawen Toll Road

2. Proving Ground BPLJSKPB

3. Jatibarang Waste to

Energy

4. National Integrated

Preliminary

studyOutline Business Case

(OBC)

Final Business Case

(FBC)PQ Request for

ProposalBid Award

PPP Agreement

SigningFinancial Close

Tender

Preparation

PLANNING PREPARATION TRANSACTION

CONSTRUCTION OPERATION

1. Makassar –

Parepare Railway1. South Sumatera

Non-Toll Road

2. Labuan Bajo Airport

3. Hang Nadim Airport

4. Sidoarjo General

1. Road and Bridge in

Central and Western

Sumatera Road Corridor

2. Bridges in Trans Java

Main Corridor

1. West Palapa

Ring

2. Central Palapa

Ring

I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d

TOTAL: USD 159.1M TOTAL: USD 159.1M TOTAL: USD 8,802MTOTAL: USD 8,802M

31

TOTAL: USD 2,786 M + 11 Projects Under Calculation TOTAL: USD 4,400 MTOTAL: USD 4,400 M

3. Pandaan - Malang Toll

Road

4. Batang - Semarang Toll

Road

5. Serpong - Balaraja Toll

Road

6. Cisumdawu Toll Road

7. Serang -Panimbang Toll

Road

8. Umbulan Water Supply

9. Bandar Lampung Water

Supply

10. Nambo Regional Waste

Management

11. Central Java Power Plant

12. East Palapa Ring

4. Baubau Port

5. Pekanbaru Regional

Water Supply

6. Legok Nangka Regional

Waste Treatment

7. University of Sam

Ratulangi Teaching

Hospital

8. Pirngadi Hospital

9. Indonesia National

Cancer Center Dharmais

Hospital

10. Surakarta Street Lighting

4. National Integrated

Welfare System

5. Relocation of Salemba

correctional facility to

Ciangir

6. Ciputat Market

7. Bintuni Industrial Zone

8. Motor Vehicle Weighing

Implementation Unit

(UPPKB)

9. Institut Teknologi

Bandung’s Cirebon

Campus Development

TOTAL: USD 3,196 M + 10 Projects Under Calculation TOTAL: USD 4,727 MTOTAL: USD 4,727 M

Included in PPP Book 2018

National Strategic Project (PSN)

4. Sidoarjo General

Hospital

5. Gorontalo Hospital

Main Corridor

3. West Papua Crossing

Port

4. Anggrek Port

5. LRT Semarang

6. Kamijoro Water Supply

7. Piyungan Sanitary

Landfill

8. Zainoel Abidin Regional

Hospital

9. Jogja Agro Techno Park

10. Tanjung Adikarto

Fishery Zone

1. Jakarta -

Cikampek South

Toll Road

2. Probowangi Toll

Road

3. West Semarang

Water Supply

1. Semarang – Demak Toll Road

2. Multifunction Satellite

Source: Bappenas, 2019

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UNSOLICITED* PPP PROJECT PIPELINE2 under construction projects and 11 on progress projects

.

Financial Close

Construction

2 Toll Road Projects

1. Krian-Legundi-Bunder-Manyar

(US$ 0.9 billion)

2.2 Billion USD

Construction

1. Jatiluhur I Water Supply

(US$ 142.2 million)1. Tanjung Jabung Bridge (US$

13.5 million)

2. Karian Water Supply (under

Project proponent submitsa proposal and pre-FSdocument to GCA

Pre-FS document evaluationto get pre-FS approval

Business Entitysubmits FS FS evaluation

Procurement

PPPAgreement

Signing

Issuing approval letter

1. TOD Poris Plawad

(US$ 125.9 million)

1. Semanan – Balaraja Toll Road

2. Kamal – Teluknaga – Rajeg Toll

Road

I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d

(US$ 0.9 billion)

2. Jakarta – Cikampek Elevated II

(US$ 1.3 billion)

2. Karian Water Supply (under

calculation)

3. Marine Observation and

Modeling (US$ 95.9 million)

Source: Bappenas, 2019

Technically integrated with the sector’s master plan

Economically and financially viable

The business entity that proposes the initiative has adequate financial capability to finance the project.

Evaluation Criteria:

*The unsolicited project is when the project is initiated by the private sector

Include in PPP Book 2018

National Strategic Project (PSN)

Road

3. Patimban Port Access Toll

Road

4. Gedebage – Tasikmalaya –

Cilacap Toll Road

5. Balikpapan – Penajam Paser

Utara Toll Bridge

6. Solo – Yogyakarta – NYIA

Kulon Progo Toll Road

Total: US$ 2,891 million

32