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© 2012 by Indonesian Investment Coordinating Board. All rights reserved

by M. Harri Santoso 15 November 2012

INDONESIA Investment Outlook and Performance

The Investment Coordinating Board of the Republic of Indonesia

2

Outlines

II. Investment Opportunities

III. Negative List on Investment

I. Economic Performance


3

I. Economic Performance


4


5

US/Eurozone financial crisis

US/Eurozone demand shock

China asset bubble burst

Oil price shock

Total Score

Taiwan 3 1 3 3 10

Korea 4 6 4 2 16

Hong Kong 1 4 2 10 17

Singapore 2 3 4 9 18

Malaysia 6 2 5 6 18

Thailand 7 5 6 1 19

China 10 8 1 7 26

Philippines 5 7 8 8 28

Indonesia 9 9 9 4 31

India 8 10 10 5 33

Source: Credit Suisse

Growth risk ranking


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ASEAN markets in context (by country)

Source: EIU, Asian Development Bank, Intercedent IMA Asia


7

Source: Bank Indonesia

Improved government debt position


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Indonesia balance of payments


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Macroeconomic overview


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Investment climate : the world embrace Indonesia’s economic performance


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Strong investment underpinned by competitiveness and stability

Source: BKPM

3.2

2.5

1.3

1.9

8

3.2

2.5

1.3

1.9

8.1

Jan-Sep

2012


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II. Investment Opportunities


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Investment opportunities

• The increasing trends of Indonesia’s industrial products and relatively constant on export of its industrial products, indicates the expanding of Indonesia domestic consumption during these past years.

• The domestic production on automotives, machinery, chemicals, steel, as well as pharmaceuticals sub-sectors are still limited; therefore foreign manufacturers can increase its business in Indonesia through investment in those sub-sectors.

Investment

opportunities


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Tax Holiday

A legal umbrella for tax holiday, Government Regulation (PP) No. 94 year 2010 concerning Computation of Non Taxable Income and Tax Payments in Current Year, has been stipulated. Implementing regulation, Minister of Finance Decree (PMK) No. 130

year 2011 concerning tax holiday has been enacted on August 2011. Tax holiday will be given on a selective basis i.e. pioneer investor

particularly : - Base metal industry - Oil refinery industry - Machine industry - Renewable energy industry - Telecommunication equipment industry Tax holiday application and approval will be reviewed by verification

committee set up by the Ministry of Finance


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Investment flowchart


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III. Negative List on Investment


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Negative Investment List on Industry…(1)

Reserved for Local Micro, Small and Medium-sized Enterprises and Cooperatives

• Salting/drying industry and boiling industry of fish and other waters biota

• Processed food from seeds and roots, sago, gnetum gnemon nut and copra industry

• Roots peeling and cleaning industry

• Palm Sugar

• Thread coloring from natural and artificial fiber to be patterned/dipped/tied thread, performed by hand work tools

• Cloth printing industry especially batik and traditional patterns

• Hand painted batik industry

• Knitted cloth industry especially Lace

• Handy craft industry that carries specific cultural asset, art value using natural or artificial raw Material

• Moslem woman’s praying cloth, scarf, head scarf, and other traditional industries

• Rubber curing industry

• Clay made household necessities industry especially pottery

• Manual or semi mechanical processed hand tool industry for handwork and cutting

• Hand tool industry needed for farming to prepare land, process production, post harvest and processing except hoe and shovel

• Motorcycle Maintenance and Repairing Industry except the one integrated to motorcycle sales business (agent/distributor) and personal and household necessities repairing industry


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Partnership

• Sweetening and saline fruits and vegetable industry • Copra industry; soya sauce industry; soy made food and peanuts other than soya sauce, tempe, tofu industry; cracker, chip, peanut cracker and the like • Milk powder process and condensed milk industry • Tobacco drying and processing industry • Printed batik industry • Rattan processing industry and rattan, bamboo and the like, preserving industry • Mangrove wood industry • Essential oil industry • Construction material made from clay industry, goods made from lime industry and goods made from cement industry • Nail, nuts and bolts industry, component and spare parts to start up motor industry, pump and compressor industry, components and two and three wheels vehicles accessories industry, bike and becak accessories industry • Agricultural machinery industry using medium technology such as rice peeler, corn peeler and hand tractor • Maritime tourism, wooden ship and fish catching industry including its tools and equipment • Silver jewelry industry • Other hand craft industries • Non metal recycle goods


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Special licenses

• Cigarette industry • Pulp industry (from wood) • Valuable paper industry such as bank note paper, cheque paper, watermark paper • Special printing industry/security documents such as stamp, stamp duty, valuable paper, passport, demography documents and holograms • Money printing industry • Cyclamate and saccharin industry • Special ink industry • Crumb rubber industry • Lead smelting industry

Foreign ownership

• Car maintenance and repair (maximum 49%) • Sugar Industry (white crystal sugar, refined crystal sugar and raw crystal sugar) (maximum 95%)


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THANK YOU

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INDONESIA - International Enterprise Singapore/media/IE Singapore/Files/Events... · The Investment Coordinating Board of the Republic of Indonesia 16 Investment flowchart. ... food

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