1 ͞ The Indonesian government has done a lot to enhance the quality of the business environment for the private sector, particularly in the last three years. ͞ - Rodrigo Chaves, World Bank Indonesia Country Director Investing in Indonesia : Why now? https://news.bcpriok.info/wp-content/uploads/2017/03/cropped-bg4.jpg Property of MCIT, Republic of Indonesia. For Discussion Only
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The Indonesian government has done a lot to enhance the quality of the business
environment for the private sector, particularly in the last three years.
- Rodrigo Chaves, World Bank Indonesia Country Director
Investing in Indonesia : Why now?
https://news.bcpriok.info/wp-content/uploads/2017/03/cropped-bg4.jpg Property of MCIT, Republic of Indonesia. For Discussion Only
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WHY INDONESIA WHY NOW?
▪ Steady economic growth in the past 10 years
▪ Investment grade by all major rating firms
▪ 5th largest economy in the world by 2030
▪ 135 million consuming class by 2030
▪ 180 million population in productive age by 2030
▪ Significant improvement in regulatory
environment as reflected in Ease of Doing
Business
▪ Most aggressive infrastructure development in
IŶdoŶesia’s historLJ
▪ Extra incentive for investments in industrial, tourism
and special economic zones
▪ Fiscal reform for long term sustainable growth
▪ Law reform to ease business and investment
▪ Concrete policy for eradication of corruption
▪ CitizeŶs’ trust oŶ the IŶdoŶesiaŶ GoǀerŶŵeŶt is at all
time high
▪ StroŶg iŶǀestors’ ĐoŶfideŶĐe to iŶǀest further iŶ
Indonesia
▪ Policies reform in ICT sectors
Source: Indonesia Investment2017,Bank Indonesia 2017
WHY INDONESIA?
STEADILY IMPROVING ECONOMIC PERFORMANCE
Source: Bank Indonesia 2017, BKPM2017
EVEN DURING GLOBAL ECONOMIC SLOWDOWN, INDONESIA STILLRECORD REPUTABLE GROWTH THAN MOST COUTRIES
2017 ALSO MARKS THE TIME INDONESIA REGAINED INVESTMENTGRADE ACROSS ALL MAJOR RATING AGENCY
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Source How will the global economic order change by 2050, PwC 2017 4
GDP FORECAST IN MARKET EXCHANGE RATE (USD in Billion) GDP FORECAST IN PURCHASING POWER PARITY (USD in Billion)
WHY INDONESIA?
INDONESIA IN POSITION TO BREAK THE TOP 5 LARGEST ECONOMY
No 2016 2030
1 United States 18,562 China 26,499
2 China 11,392 United States 23,475
3 Japan 4,730 India 7,841
4 Germany 3,495 Japan 5,468
5 United Kingdom 2,650 Germany 4,347
6 France 2,488 United Kingdom 3,530
7 India 2,251 France 3,186
8 Italy 1,852 Brazil 2,969
9 Brazil 1,770 Indonesia 2,449
10 Canada 1,532 Italy 2,278
16 Indonesia 941
No 2016 2030
1 China 21,269 China 38,008
2 United States 18,562 United States 23,475
3 India 8,721 India 19,511
4 Japan 4,932 Japan 5,606
5 Germany 3,979 Indonesia 5,424
6 Russia 3,745 Russia 4,736
7 Brazil 3,135 Germany 4,707
8 Indonesia 3,028 Brazil 4,439
9 United Kingdom 2,788 Mexico 3,661
10 France 2,737 United Kingdom 3,638
Source: Taking Advantage of the Demographic Dividend in Indonesia, UNFPA 2015 IndonesiaAn Inevitable Choice of Economic Transformation, Waltham Economy of Asia Review, 20114
WHY INDONESIA?
GROWING PRODUCTIVE POPULATION AND CONSUMING CLASS
ESTIMATED 180M POPULATION IN PRODUCTIVE AGE,AT THE PEAK OF DEMOGRAPHIC DIVIDEND
90 MILLION INDONESIANS COULD JOINTHE CONSUMING CLASS BY 2030
Unleashing Indonesia Potential, McKinsey Global Institute 2012Antara News, 2016 5