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120928 nk indonesia forum - auckland


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A presentation about the business potential between Indonesia and New Zealand.

A presentation about the business potential between Indonesia and New Zealand.

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  • 1. • Population: 241 million• Land area: 1.9 million square kilometers (the size of Mexico, almost 2/3 of India)• 17,500 islands• 300 ethnic groups 2
  • 2.  Population: 140 million, thereof approx. 90 million ethnic Javanese (largest ethnic group in Southeast Asia). Size: 126.700 km2 (almost 1/2 the size of New Zealand). 1000-km northern route (great post road/groote postweg) constructed by Governor General Herman Daendels in 1808 – 1810 in the service of France the island’s main artery to date. Center of power and economy since colonial times. Javanese culture dominant, and pre-eminently dominant during President Soeharto’s 32-year reign. 3
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  • 5. “Ask anyone in Indonesia about the country’s future and most likely you will get an optimistic answer. This is no surprise. The third largest democracy and fourth most populous country in the world has transformed itself from a low- income country in the 1960s into a fast- growing emerging market.”“Doing Business in Indonesia 2010” – The World Bank and IMF 6
  • 6. POLITICAL Governments WILL Political Attitude GOAL: Policies and GOOD OF Strategies COMMUNITY(“Negotiating Mining Agreements: Past, Present and Future Trends,” Danièle Barberis, 1998) 7
  • 7. Year Era Economy1945-1950 Revolution (War Non-existent against the Dutch)1950-1957 Proto-democracy In shambles Guided Democracy In ruins –1957-1966 (Revolution Ch. 2) inflation 650% Excellent: 7- 8%1966-1998 New Order growth Reformation – seeds1998-2005 of democracy In the Doldrums Respectable: 6%2005- now Nascent Democracy + growth 8
  • 8. 1. The economy shall be 2. Sectors of production organized as a common that are important for theendeavor based upon the country and affect the life principles of the family of the People shall be system controlled by the State 3. The land, the waters and the natural riches contained therein shall be controlled by the State and exploited to the greatest benefit of the people 9
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  • 10. BANKING INSURANCE FMCGANZ, HSBC, CIMB, CIGNA, Prudential, Unilever, Arnott’s, Commonwealth Manulife, Allianz Phillip Morris, BAT LOGISTICS TECHNOLOGY TRAVEL Schenker, DHL, Axiata, RIM, Air Asia, Accor Maersk Siemens, GE Group AUTOMOTIVE Toyota (market share > 50%), Honda, Mercedes
  • 11. It definitely is, but you cando (good) business inIndonesia withoutpromoting and resorting tobribery or being otherwiseinvolved in corruption. 12
  • 12. Middle class group: 50 million + 27th biggest exporter in 2010 Inflation 5.4% (2011)Economic growth in 2011 6.5% - 2012 revised downward to 6.3%Size of economy : US$ 846 billion in 2011, projected to be a trillion dollar economy in 2014 16th largest economy in the world 13
  • 13. Jakarta Airport served 52.4 National flag million carrier Garuda Growth of air passengers in flew 4.6 million travel in 2011 2011 passengers in 22% Q1/2012 (up 25% YOY) 1200 air Accor to double traffic 800 new pilots US$ 2 billion number ofcontrollers commuter line needed needed hotels to 100 by annually from airport – Jakarta end 2015 operational 2014 Aston Hotels to New car sales Mobile add 73 new in 2012 telephone hotels (20 projected at 1 subscriptions in thereof this million units Q1/2012 255 year) to million numbers existing 45 14
  • 14. Indonesians don’t know muchabout New ZealandKiwis don’t know much aboutIndonesiaErgo – stereotypes prevail 15
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  • 16. Cooperation exists in all sectors and areas: economy, security, education, counter-terrorism Negotiations on Indonesia – Australia Comprehensive Economic PartnershipAgreement (IA-CEPA) commenced in September 2012 May be turned into an advantage if linked to Australia – New Zealand Closer Economic Relations (CER) 17
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  • 18. • 16th-largest economy in the • 7th-largest economy in the world world • 45 million members of the • 135 million members of the consuming class consuming class • 53% of the population in cities • 71% of the population in cities producing 74% of GDP producing 86% of GDP • 55 million skilled workers in • 113 million skilled workers the Indonesian Economy needed • $0.5 trillion market opportunity • $1.8 trillion market opportunity in consumer services, in consumer services, agriculture and fisheries, agriculture and fisheries, resources, and education resources, and education(“The archipelago economy: Unleashing Indonesia’s Potential – Executive Summary” – McKinsey Global Institute, September 2012) 19
  • 19. The Indonesian Another mis- Indonesia is not The majority of economy has perception is an Asian Indonesia’s performed that Indonesia’s manufacturing productivity strongly over economic exporter driven gain has come the past decade growth centers by its growing not from a shift and is more on Jakarta. The workforce or a of workers from diverse and fastest growing commodity lower- stable than urban centers exporter driven productivity many realize. are large and by its natural agriculture into Indonesia had mid-sized cities resources. The more productive the lowest with more than 2 main drivers of sectors, but volatility in million people, growth are from product- economic incl. Medan, domestic ivity improve- growth compar- Bandung, Bogor consumption ment within ed to OECD and and Surabaya. and services. sectors and not BRIC countries. at the expense of employment.(“The archipelago economy: Unleashing Indonesia’s Potential – Executive Summary” – McKinsey Global Institute, September 2012) 20
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  • 23. Menara Karya, 10th Floor Suite HJl. HR Rasuna Said Blok X-5 Kav. 1-2 Jakarta 12950 – INDONESIA T: +6221 5794 4694 F: +6221 5794 4696