Seoul,South Korea February 14-17 2011. Scope of high technology-based industry Fact and Figures Business opportunity Closing Remarks.

INVESTMENT OPPORTUNITY OF HIGH TECHNOLOGY

BASED INDUSTRY IN INDONESIA

Seoul ,South KoreaFebruary 14-17 2011

Ministry of Industry - Indonesia

TABLE OF CONTENTS

Scope of high technology-based industry Fact and Figures Business opportunity Closing Remarks

Scope

Leading Industry Base on High Technology

Machinery Industry

Machinery Industry

Automotive Industry

Automotive Industry

Electronics and ICT Industry

Electronics and ICT Industry

Maritime Industry

Leading Industry Base

on High Technology

Leading Industry Base

on High Technology

Fact and Figures

Automotive Industry Structure

20 Companies(27.000 MP)

150 Companies (42.000 MP)

350 Companies (11.000 MP)

+ 11.000 Authorized Outlet( + 77.000 MP)

TOTAL Man Power (MP )= 388.000

+ 33.000 Non-Authorized Outlet

( + 231.000 MP)

Car Assemblers

Component Industry Tier 1

Component Industry Tier 2 and 3

Outlet, Workshop, Authorised Sales

Service

and Spare Parts

Outlet, Workshop, Non-Authorised

Sales Service

and

Spare Parts

4 Wheeler Structure

STRUCTURE OF ELECTRONIC INDUSTRY

Manufacture

Component

Electro Mechanic Component

Other Component

Authorized sales service and/or spare

part

Non-Authorized

sales service and/or spare part

Active & Passive Component

Electro Mechanic Component

Opportunity(IC, LCD Panel)

OpportunityCompressor, Evaporator, Condenser for AC & Refrigerator

16 Companies (Man Power: 37.000)

4 Companies (MP: 8.000)

5 Companies(MP: 9.000)

+ 13.000 Outlets (MP: + 65.000)

+ 72.000 Outlets (MP: + 360.000)

TOTAL Man Power = 535.000

228 Companies(MP: 57.000)

NUMBER OF ELECTRONIC& ICT COMPANY KOREA, CHINA AND JAPAN

116

63

11

JapanSouth KoreaChina

Shipbuilding Industry Structure

Opportunities Engine and Propultion systemDeck MachinarisNavigation and CommunicationElectric and Electronic Equipment

Cargo HandlingOthers

Ship building/Ship repairing

A number ship component industry already exist but still limited in quantity and production capacity as well as product range such as deck machineries, pump, valve, chain, main switch board,etc.

About 250 shipyard has already exist, absorbed about 45.000 labour force, engaged in new ship building and ship repairig business. Still limited in term of production capacity and capability.

Raw Material and supporting industries

Electronic Market

2006

2007

2008

2009

2010

0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000

Electronic Demand 2006-2010 ( Thousand Unit)

A C Color TV Washing Machine Refrigerator

Number of vessels registered by BKI ( 7,254 units (6.585.837 GT) in year 2000; 12,436 units (13,652,223 GT) in 2009.

Source : Indonesian Ship Classification Society 2009

Maritime Market

7254 7614 79608556 9058 9295

10044 1060111281

12436

0

2000

4000

6000

8000

10000

12000

14000

Jum

lah

Un

it

Tahun

Kapal Register Tahun 2000 - 2009(Unit)

Growth of Indonesia Vessels

Year

From total number of ships in 2009, 13% are general cargoes, 7% Tankers, 5% Passengers & Ferries, 2% Container ships, 1% Bulk Carriers,71% other ships.

In terms of ages: 30% above 21 years old, 21% among them are above 25 years old.

Source : Indonesian Classification Society 2009

Maritime Market(2)

25%

15%

15%

13%

9%

21%

% Number of Ship base on Age

0-56- 1011-1516-2021-2525 keatas

5% 13% 1%

2%7%

71%

% Number of Ship base on Type

Passenger & FerryGeneral cargoBulk CarrierContainer ShipTankerOther

Automotive Market

1.18%

0.09%

1.45%

95.13%

1.87%

0.28%

Market Share 4 Wheeler Vehicle

USA China Europe Japan

Saouth Korea Malaysia

2003 2004 2005 2006 2007 2008 2009 2010

SALES 354629 483148 533917 318904 433341 603774 487294 764710

50,000

150,000

250,000

350,000

450,000

550,000

650,000

750,000

850,000

Sales 4 Wheelers

To fulfill the Domestic Demand◦ Oil and Gas Sector

USD 15 Billion/year◦ Electricity Sector

USD 3.5 Billion/year ◦ Plant Machinery Sector (Textile and Sugar Industry)

USD 2.2 Billion in 5 years◦ Medical Sector

USD 16.6 Billion in 5 years◦ Industrial Sector ( Processing Machinery and

Machine Tools) USD 8 Billion/year

Machinery Market

Business Opportunity

New investment and or expansion in order to enhance existing production capacity up to 500.000 GT/year ( equals to Rp. 5,7 Trillion)

Investment in ship equipment and ship component industry to supply domestic market as well as export.

Maritime Industry

Green Car Industry (300,000-600,000 Unit/year)

Main Component (Engine, Transmission, Axle,etc)

Automotive Industry

Static Equipment ( Boilers, Pressure Vessels)

Rotary Equipment (Turbine, Generator, Engine)

Textile Machinery ( Jet loom)

Machine Tools

Medical Device (Disposal Products)

Machinery Industry

Component Industry ( IC, LCD, Evaporator and Condenser, Photovoltaic )

Home Appliance ( LED TV, 3D TV)

ICT and office Equipment ( Mobile phone, Photo Copier, Computer)

Electronic and ICT Industry

Closing Remarks

Investment opportunities for high technology based industry in Indonesia is still promising.

FDI is still expected to invest in automotive, electronic and ICT, machinery and shipbuilding industry sector.

We invite Korean Industry to newly establish or expand its production base in Indonesia to take benefit at expanding domestic and regional market.

Closing Remarks: