Information about Indonesia

1. Doing Business in Indonesia
2020
Chile

2. Indonesia Overview
General Overview
5271 km; 3 timezones
• Largest archipelago in the world
• Population:  267 million (4th)
•  300 ethnic groups
•  700 languages
• More than 17,000 islands
• Land:  1.9 million km2
• Sea :  5.8 million km2
• Coastline:  80,000 km
• Provinces (States): 34
• Capital City: Jakarta
• Currency: Rupiah
Kadin Indonesia - Business Service Desk 2

3. Indonesia Overview
Economic Overview
• GDP:  USD 1,000 billion (16th)
• Stable GDP Growth
• Debt to GDP (2018): 29.5%
• 60% working age population
• USD 500 billion market
• USD 126 billion of foreign exchange reserve
Kadin Indonesia - Business Service Desk 3
-4
-2
0
2
4
6
8
10
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
GDP
Growth
%
Indonesia's Stable Growth 2005-2019
Indonesia World High Income Middle Income Low Income

4. Indonesia Overview
Economic Overview
Indonesian Economy
Year 2016 2017 2018 2019
GDP growth (%, yoy) 5.03 5.07 5.17 5.02
Inflation (%, yoy) 3.02 3.61 3.13 2.70
Interest rate (%) 6.0 4.56 5.1 5
Government Debt (% of GDP) 27.9 28.7 29.8 30.2
Balance of Trade (USD billion) 8.53 11.84 -8.69 -3.23
Source: ADB, Ministry of Finance, Ministry of Trade
Kadin Indonesia - Business Service Desk 4

5. Electricity, Gas, and Water Supply 5,921.2 646
Transportation Warehouse and
Telecommunication
4,727.8 805
Metal, Except Machinery and Equipment 3,558.7 983
Housing, Industrial Estate, and Office Building 2,888.5 1,308
Mining 2,256.3 758
Chemical and Pharmaceutical Industry 1,486.1 1,282
Food Industry 1,272.2 1,848
Food Crops, Plantation, and Livestock 946.9 969
Vehicle and Other Transportation Industry 754.0 960
Hotel and Restaurant 625.9 3,704
Other Service 617.9 5,107
Metal, Machinery, Electronic, Medical
Instrument, Precision, Optical, and Watch
Industry
499.8 1,087
Non Metallic Mineral Industry 475.0 281
Paper and Printing Industry 446.1 409
Trade and Reparation 421.2 6,467
Rubber and Plastic Industry 291.6 804
Other Industries 245.3 700
Textile Indutry 238.9 897
Leather Goods and Footwear Industry 188.3 342
Construction 161.6 430
Wood Industry 95.0 281
Fishery 54.1 173
Forestry 36.3 113
TOTAL 28,208.7 30,354
Indonesia Overview
Investment Overview 2019
Source: Indonesia Investment Coordinating Board (BKPM)
5
15,476.3
4,538.7 4,251.3
2,131.4
987.2 823.5
0.0
2,000.0
4,000.0
6,000.0
8,000.0
10,000.0
12,000.0
14,000.0
16,000.0
18,000.0
Java Sulawesi Sumatera Kalimantan Papua Lesser Sunda
Island
TOTAL INVESTMENT
(USD MILLION)
S
E
C
T
O
R
S
INVESTMENT
(USD MILLION)
TOTAL PROJECTS

6. Why Indonesia?
Demographic Bonus
Age Structure (2020)
0-14 years: 23.87%
15-24 years: 16.76%
25-54 years: 42.56%
55-64 years: 8.99%
>65 years : 7.82%
Kadin Indonesia - Business Service Desk 6

7. Why Indonesia?
Improved Ease of Doing Business
Source : Indonesia Investment Coordinating Board (BKPM)
Kadin Indonesia - Business Service Desk 7
120
114
106
91
72 73 73
2014 2015 2016 2017 2018 2019 2020
Ease of Doing Business in Indonesia 2014-2020

8. Why Indonesia?
Strong Reform Commitment
Kadin Indonesia - Business Service Desk 8
Source : Indonesia Investment Coordinating Board (BKPM)

9. Investment Overview
Chile Investment in Indonesia
Source : Indonesia Investment Coordinating Board (BKPM)
Kadin Indonesia - Business Service Desk 9
Year Value
(in Thousand USD)
Projects Rank
2017 600,000.0 1 Project 69th
2018 50,000.0 3 Projects 88th
2019 25,000.0 1 Project 87th
0
50
100
150
200
250
300
350
0.00
100,000.00
200,000.00
300,000.00
400,000.00
500,000.00
600,000.00
700,000.00
2017 2018 2019
Chile Investment in Indonesia
2017-2019
Value Projects

10. Trade Overview
Indonesia and Chile
Source : Ministry of Trade, UN Comtrade
Kadin Indonesia - Business Service Desk 10
VALUE IN THOUSAND USD Jan - Sep
Change% 2020-
2019
2017 2018 2019 2019 2020
Export 158,528.6 159,027.9 126,678.2 102,797.3 96,965.6 -5.7
Import 119,896.1 115,105.1 149,101.3 119,846.3 83,992.9 -29.9
Trade Balance 38,632.5 43,922.9 -22,423.1 -17,049.0 12,972.7 176.1
Total Trade 278,424.7 274,133.0 275,779.5 222,643.6 180,958.5 -18.7
-50,000.00
0.00
50,000.00
100,000.00
150,000.00
200,000.00
2015 2016 2017 2018 2019
IN
THOUSAND
USD
Export Import Trade Balance

11. Trade Overview
Indonesia and Chile
Source : Ministry of Trade, UN Comtrade
Kadin Indonesia - Business Service Desk 11
22%
20%
15%
10%
8%
25%
Top 5 products import from Chile to
Indonesia in 2019
Copper Edible fruits and nuts
Ores, slag, and ash Pulp of wood
Iron and steel Others
21%
10%
10%
7%
6%
46%
Top 5 products export to Chile from
Indonesia in 2019
Footwear
Machinery
Vehicles
Oil seed
Articles of apparel and clothing accessories

12. Trade Overview
Top 10 Export Potential from Indonesia to Chile
Source : ITC Export Potential Kadin Indonesia - Business Service Desk 12
Export Potential
Realized Potential (in %)
The most prominent potential
goods from Indonesia to Chile,
such as:
● Motor Vehicles
● Footwear,
● Natural Rubber
● Palm Oil
● Natural Rubber
● Newsprint
● Urea
● Fatty Acids
● etc.

13. Trade Overview
Top 10 Export Potential from Chile to Indonesia
Source : ITC Export Potential
Kadin Indonesia - Business Service Desk 13
The most prominent potential
goods from Chile to Indonesia,
such as:
● Copper cathodes
● Chemical wood pulp
● Soda/sulphate
● Grapes
● Apples
● Potassium
● Salmon
● Pears & Quinces
● Flours of fish
● etc.

14. Investment Overview
Investment Sector Priorities
Kadin Indonesia - Business Service Desk 14
Source : Indonesia Investment Coordinating Board (BKPM)

15. Tips for Doing Business in Indonesia
Kadin Indonesia - Business Service Desk 15
• Identify the right local partner
• Understand the business culture in Indonesia
• Understand the business climate
• Understand the licensing system for investment and business
• Engage the right consultants

16. KADIN Business Service Desk
Kadin Indonesia - Business Service Desk 16
KADIN Indonesia Business Service Desk (KADIN BSD) is the international business services unit of KADIN
Indonesia. KADIN BSD provides an independent view on new opportunities and developments in Indonesia.
Specifically, it offers an experience, network, and service; overall working closely with the Government of
Indonesia and business stakeholders. Thus, we are the first contact point for foreign companies and a conduit
to the progressive Indonesian private sector.
Business
Matching
Member
Outreach
Market Research
& Advisory
Business
Event
Project &
Strategic Partnership

17. Kadin Indonesia - Business Service Desk 17
Terima Kasih!
Thank You!
Contact:
KADIN Indonesia
Business Service Desk
Menara KADIN Indonesia, 24th floor
Jalan H. R. Rasuna Said X-5 Kav. 2-3
Jakarta 12950, Indonesia
www.kadin.id
www.bsd-kadin.id
Email:
info@bsd-kadin.id