Chairul Tandjung

Indonesia - The World’s Next Economic Power

Chairul Tanjung

Chairman of National Economic Committee (KEN)

KOMITE EKONOMI NASIONALREPUBLIK INDONESIA

page 2

Indonesia Future Outlook

Key Economic Drivers

Looking to the long term, Indonesia will become a high income country

page 3

$3,005 $5,300$9,000

$14,900$22,500

$30,400

$38,600

$46,900

2010 2015 2020 2025 2030 2035 2040 2045

GDP Nominal (US$ Billion) 711 4,257 9,706 16,578

Population (Million people) 237

PREPARATION ACCELERATION CONTINUATION

6,7932,4161,335 12,989

286 319 353302269253 336

GDP Nominal per capita

Indonesia becomes a high income country with GDP

per capita USD 14,250-USD 15,500

Indonesia’s economic growth has far surpassed the projections of the Indonesia Forum Foundation

page 4Source: Indonesia Forum Foundation (Yayasan Indonesia Forum), team analysis

Projected GDP per capita - Indonesia Vision 2030

Lower MiddleIncome Country

Upper MiddleIncome Country

HighIncome Country

1992 2015 2023

Indonesia Vision 2030

Economic Projection 2011 - 2045

GDP per capita reached

US$3,005 in 2010

IMF projects Indonesia to achieve the second fastest growth amongst the world’s 18 largest economies during 2009-2015

page 5Source :International Monetary Fund, World Economic Outlook Database, April 2011

GPD Nominal Growth (2009 – 2015)

15.7%

14.5%

12.4%

12.1%

11.7%

10.0%

9.9%

4.1%

4.0%

9.6%

Indonesia

Russia

China

India

Brazil

Turkey

South Korea

Japan

USA

ASEAN (excl. Indonesia)

Indonesia’s economy will become more dominant in ASEAN and larger than several countries in Europe

page 6Source: International Monetary Fund, World Economic Outlook Database, April 2011; Proyeksi Ekonomi Indonesia 2011 – 2045; Analisa Tim

Indonesia Economic Growth (nominal) (USD Billion)

Indonesia’s economy as % of

ASEAN-6

ASEAN (Total 11 Countries)

40% 48% 53%

38% 46% 52%

Spain

Netherlands

50% 91%60%

91% 165%105%

European Countries:

CAGR 14.5%

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Indonesia Future Outlook

Key Economic Drivers

The increase of the productive population will fuel stable and rapid economic growth

page 8

Expected Population Pyramid (2000–2020)Expected Population Pyramid (2000–2020)

15 12 9 6 3 0

05101520253035404550556065707580859095100

15 12 9 6 3 0

05101520253035404550556065707580859095100

0 3 6 9 12 15

05101520253035404550556065707580859095100

Male Indonesia–2000 Female

Population (in millions)

0 3 6 9 12 15

05101520253035404550556065707580859095100

Male Indonesia–2020 Female

Population (in millions)

Total (million) 205 254

Male (million) 102 127

Female (million) 102 127

Productive population (20–55 years old) 99 (48%) 132 (52%)

Source: 2008 UNDP World Population Prospects

Natural Resources, Infrastructure and Consumers will also drive economic growth

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Based on 2010 GDP per capita (US$3,005), Indonesia has reached the critical threshold rapid growth in consumption, discretionary and luxury spending

Rise of Consumer Spending

Power

• Consumero Financial Serviceso Automotiveo Retailo Tourismo etc.(as well as supporting

sectors such as industry and construction)

Natural Resources

Economic growth, including key emerging markets driving demand

– Hard commodities, e.g. metals, oil, coal, etc.

– Soft commodities, e.g. rubber, palm oil, etc.

Continued development of infrastructure: transportation, energy, communications, water & waste, etc.

Infrastructure

This economic growth is also supported by conducive national conditions

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Political Environment

Resilient Financial System

Maturing democracy Regional autonomy Supportive regulations balanced open markets Strengthening institutions

Government debt and foreign reserves at healthy levels Improving investment climate Indonesian banks performed well during global crisis

Increasingly integrated networks

Regional – improving efficiency of domestic production and distribution chains

Global – geographic position provides excellent access to India, China, Japan, etc.

Indonesia has entered the Golden Era of economic growth huge opportunities for businesses

page 11

711 711

3,546

2010 2025

Indonesian economy will grow 5-fold through 2025

The stable government combined with strong economic growth will provide great opportunities for all businesses

Currently China already has 115 people in Fortune's list of World Billionaires, while Indonesia has only 14 people. By 2025, the number of Indonesian billionaires could surpass 115

4,257

Projection of Indonesia’s GDP Growth in 2025

(USD Billion)

Source: Masterplan Percepatan dan Perluasan Pembangunan Indonesia

Closing

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Indonesia’s is expected to continues its strong performance

This robust growth is driven by favorable demographics, strong natural resources and consumer sectors and developing infrastructure, as well as broad based geographic growth

Indonesia is moving forward to address challenges in funding, infrastructure, bureaucracy, human resources, and technology

Indonesia’s economy is projected to grow 5-fold by 2025, thereby making Indonesia the world’s next economic power

Thank You

Chairul TanjungChairman of National Economic Committee (KEN)