Indonesia

INDONESIA

24th June 2013

Country

Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 17,508 islands.

Official name Republic of Indonesia

Country code ID

Government type

Presidential Constitutional Republic

National day 17 August

Area 1,919,440 km²

Population: 247 Million (2012)

Neighboring states

Malaysia, Papua New Guinea, East Timor, Singapore, Philippines, and Australia.

Language Indonesian

ReligionsMuslim (88%), Protestant (5%), Catholic (3%), and Hindu (2%)

Currency Rupiah (IDR)

Tax ratesIncome Tax (30 %), Corporate Tax (25 %), VAT rate (10 %)

Indonesia

Map

Indonesia - News

• Indonesian Economic Outlook Deteriorates

• Indonesia Benchmark Interest Rate Unchanged at 5.75%

• Indonesian Economy Seems To Be Loosing Momentum

• Indonesia´s GDP Expands 6.02% in Q1 2013

• Indonesia Monetary Policy Unchanged in April

5

Main Natural Resources

Oil and gas, bauxite, silver, tin, copper, gold, and coal

2012 Total $846.832 billionPer capita $3,592 

Current 2013Total $ 1016.3 billionPer capita $ 4,254.8

GDP (purchasing power parity): $1.237 trillion (2012)

GDP - Indonesia

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2012 Total $1847.982 billionPer capita $1,509 

GDP (purchasing power parity): $4.761  trillion (2012)

GDP - India

GDP Growth Rate

Stock Market

IDX

SENSEX

Inflation Rate

Unemployment Rate

Interest Rate

Indonesian Rupiah

14

Main Products

• Garments

• Footwear

• Indonesia’s garment and apparel sector is highly concentrated on the island of Java, particularly that of West Java and the island of Batam which is a free trade zone.

• The sector employs 1.3 million people as of 2011 making it one of the most important elements of the country’s manufacturing industry.

• Some 61% of manufactured garments are exported to international markets as various leading international apparel brands use Indonesia as a manufacturing base for their global exports.

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Main Products

Electronic Goods

• Indonesia's consumer electronics market is forecast to grow around 10% in 2013

• Computer Hardware Sales: US$4.1bn in 2012 to US$4.4bn in 2013, +8% in US dollar terms. Forecasting US dollar terms unchanged and growing affordability and credit availability are driving sales in the consumer segment.

• AV Sales: US$4.5bn in 2012 to US$5.0bn in 2013, +13% in US dollar terms. Forecast in US dollar terms unchanged but the flat-screen TV set market continues to grow strongly year-on-year (y-o-y).

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Main Products

• Furniture

• Paper Products

• Rubber Products

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Indonesia Manufacturing Snapshot

• Contribution to GDP: 24.2% (2011, Non Oil & Gas)

• Real Sector Growth: 6.6% (2010-2011)

• Number Employed in the Sector: 15 million

• Average Employee Salary: 1,369,000 RP/month (Q1 2012)

• Main areas: Automotive, Electronics, Textiles, Footwear, Food & Beverage, Palm Oils, Metal Products, Chemicals

• Main Export Markets: China, Japan, USA, India, Singapore, Malaysia, EU.

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US Trade in Goods

-15,000.00

-10,000.00

-5,000.00

0.00

5,000.00

10,000.00

15,000.00

20,000.00

3,534.80

7,997.20 7,413.50 6,947.907,892.80

17,997.7019,111.00

16,478.30

-4,358.00

-10,000.50-11,697.50

-9,530.50

Exports

Imports

Balance

INDONESIA

2013 2012 2011 2010

-20,000.00

-10,000.00

0.00

10,000.00

20,000.00

30,000.00

40,000.00

50,000.00

8,757.00

22,105.50 21,503.5019,248.9017,939.40

40,514.10

36,155.50

29,532.90

-9,182.30

-18,408.70-14,652.00

-10,284.10

Exports

Imports

Balance

2013 2012 2011 2010

INDIA

NOTE: All figures are in millions of U.S. dollars

Major Exports

Major exports: Coal; briquettes (10%), Petroleum gases (8%), Palm oil, crude (7%), Petroleum oils, crude (6%)

1

109

8765

432

1211

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EXPORTING COUNTRIES

Japan China United States

Singapore Korea, Rep. Malaysia India0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00% 16.18%

10.23% 9.61%8.58%

7.80%

5.20% 4.55%

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Major Imports

Petroleum oils,

refined

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Petroleum oils,

crude

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Automati

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achines

Electr

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its

Motor V

ehicles f

or tran

sporti

ngs go

ods

Transm

ission ap

paratu

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adio, te

lephone & TV Cars

Electr

ic generati

ng sets

and ro

tary c

onverte

rs0%

2%

4%

6%

8%

10%

12%

14%

14%

3% 3%2% 2% 2% 2% 2% 2%

0%

% Imports

22

IMPORTING COUNTRIES

Singapore China Japan Korea, Rep. Malaysia Thailand United States

Australia India0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

20.00% 18.19% 18.06%

13.27%

6.76% 6.32% 6.29%5.36%

3.35%2.48%

 Q1-2012   Q1-2013   Growth (yoy)

Indonesia's Car Sales(number of car units)

 250,830  295,465       17.8%

   January   February   March

Indonesia's Car Sales 2013

(number of car units)

  96,705   103,284 95,936

     2008    2009    2010    2011    2012

Indonesia's Car Sales(number of car units)

 607,805  486,061  764,710  894,164 1,116,230

Automobiles

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Automobiles

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     Q1-2013     Growth (yoy)

Toyota    104,073           8.4%

Daihatsu     42,197           5.2%

Isuzu      8,037           0.4%

UD Trucks        496         -50.5%

Peugeot         67         -18.3%

     Q1-2013     Growth (yoy)

Mitsubishi     39,575           8.2%

Suzuki     36,237          70.4%

Nissan     16,644          -4.2%

Honda     26,772        228.8%

Others     21,811           1.6%

Astra International's Car Sales:  Non–Astra International Car Sales:

Automobiles

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Indonesia’s Business Environment

27

SWOT ANALYSIS

STRENGTH WEAKNESS

• Energy• Diversity Cultures• Food• Tourist Attractions• Rubber• Mining• Surging Working Age of People

• Decentralized System of Government• Judicial System• Language Barrier• Corruption• Drug War• Logistical

OPPORTUNITIES THREATS

• Coffee• Indonesia battle grafts• Chindonesia• Young democracy• Urbanization

• Illegal Fishing• Palm Oil Production Destroys Forest• Illegal Logging• Potential for Religious Extremist• Weak Infrastructure

28

Global Competitiveness Index

Rank (out of 144)

Score (1–7)

GCI 2012–2013  50 4.4

GCI 2011–2012 (out of 142)  46 4.4

GCI 2010–2011 (out of 139)  44 4.4

Basic requirements (40.0%)  58 4.7

Institutions  72 3.9

Infrastructure  78 3.7

Macroeconomic environment  25 5.7

Health and primary education  40 5.7

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Global Competitiveness Index

Rank (out of 144)

Score (1–7)

Efficiency enhancers (50.0%)  58 4.2

Higher education and training  73 4.2

Goods market efficiency  63 4.3

Labor market efficiency  120 3.9

Financial market development  70 4.1

Technological readiness  85 3.6

Market size  16 5.3

Innovation and sophistication factors (10.0%)  40 4.0

Business sophistication  42 4.3

Innovation  39 3.6

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Major Exporters

PT Great Giant Pineapple PT Sumi Rubber Indonesia PT Alumindo Light Metal Industry,  PT Samsung Electronics Indonesia PT Indah Kiat Pulp & Paper Tbk.  PT Pabrik Kertas Tjiwi Kimia Tbk  PT Apex Maritim Indonesia(Surabaya) PT Doosan Cipta Busana Jaya  PT Centralpertiwi Bahari  Samudera Naga Global Lucky Textile Group Anc Textile.,ltd Panjimas Textile Jo Group