The document provides an overview of doing business in Indonesia, including:
- Indonesia has over 17,000 islands and a population of over 250 million people. The largest industries for foreign investment are food, electricity, and transportation.
- Setting up a business in Indonesia can involve cooperating with a local partner or establishing a foreign-owned company, which requires a minimum investment of $1 million.
- Consumer health products saw double-digit growth in 2015 due to increasing health awareness among middle-class Indonesians and aggressive marketing by manufacturers.
2. 2Cekindo Bisnis Grup Š2015
Content
1 Market Overview and Facts
2
3
4
Doing Business in Indonesia
Company Profile
Market Trends and Investments
11/1/2016
Company Profile
4. 4Cekindo Bisnis Grup Š2015
⢠Geography: More than 17,508 islands. The largest islands Sumatra, Java,
Kalimantan, Sulawesi and Papua take over 90% of total land area.
⢠Capital city: Jakarta, which is the business and governmental center
⢠People: 252 million, >51% under age of 29
⢠Currency: Indonesian Rupiah (IDR)
⢠Religions: Islam 89%, Protestant 7%, Catholic 3%, Hindu 2%, Others 1%.
⢠Language: Bahasa Indonesia which is similar to Malay.
Market Overview
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Total Area Land Area Sea Area Population
1,919,440 km 1,826,440 km 93,000 km 253,609,643
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⢠Investment Rating (2015): Standard & Poorâs:bb+ positive, Fitch: BBB-,
stable, Moodyâs: Baa3, stable.
Macroeconomic Facts
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Indicates 2010 2013 2018 E
Population (mn) 243 251 263
GDP (Nominal, USD bn) 709 868 1657
GDP per head (USD) 2,919 3,460 6,300
Inflation 5.1% 8.33% 6.38%
Export of goods & services (USD bn) 175 206 371
Imports of goods & service (USD bn) 154 212 345
Private consumption (USD bn) 401 485 964
Private consumption per head (USD) 1,650 1,930 3,660
Source: The Economist Intelligence Unit
6. 6Cekindo Bisnis Grup Š2015
Content
Market Overview and Facts
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4
Doing Business in Indonesia
Company Profile
Market Trends and Investments
11/1/2016
Company Profile
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1
7. 7Cekindo Bisnis Grup Š2015
The highest Investments Realizations
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DDI (Investment Realization 2015) FDI (Investment Realization 2015)
No. Sector Investment
(USD
million)
Project No. Sector Investmen
t (USD
million)
Project
1 Food Industry 1,857 879 1 Mining 4,017 1066
2 Electricity, Gas, and
Water Supply
1,661 247 2 Transportation, Warehouse and
Telecommunication
3,290 493
3 Transportation,
Warehouse and
Telecommunication
1,615 213 3 Metal, Machinery and Electric 3,092 1781
4 Chemical and
Pharmaceutical
1,568 320 4 Electricity, Gas, and Water Supply 3,029 350
5 Construction 1,299 178 5 Real Estates, Industrial and office
building
2,434 858
6 Food Crops and
Plantation
911 372 6 Food Crops and Plantation 2,072 606
⢠17,238 permits processed, with total investment commitment of USD 140 billion.
⢠2016 target FDI of USD 28 billion, DDI of USD 20 billion of realized investment.
Source: The Investment Coordinating Board of the Republic of Indonesia (BKPM)
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Investments
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Source: The Investment Coordinating Board of the Republic of Indonesia (BKPM)
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⢠Aggressive marketing from leading manufacturers.
⢠Pharmacies as the larges distributor channel for consumer
health products in 2015.
⢠Middle-class consumers are better informed about diseases
from the unhealthy lifestyles, such as diabetes, high cholesterol
and high blood pressure.
⢠Increasing health awareness, Indonesians start to prefer
consume food and drink that contains the vitamins/nutrients to
boost immunity.
⢠Middle and upper class consumers start to purchase vitamins
and dietary supplements products/pills, tablets or drinks to
maintain their health and do exercising.
⢠Higher demand for baby nutrition and herbal/traditional
products itself from natural materials
What support double digit growth of
Consumer Health products in 2015?
11/1/2016
10. 10Cekindo Bisnis Grup Š2015
Content
Market Overview and Facts
4
Doing Business in Indonesia
Company Profile
Market Trends and Investments
11/1/2016
Company Profile
2
1
3
11. 11Cekindo Bisnis Grup Š2015
Doing Business in Indonesia
The decision to enter new market is critical,
particularly in Asia. Indonesia market is one of
potentials market to be entered in Asia. As a
consulting firm, we have wide experience in assisting
our clients from various industries to enter
Indonesian market.
As we understand the local market specifics and take
advantage of our wide network, we aim to provide an
update information to foreign entities and
entrepreneurs to support their business in Indonesia.
There are two options which can be chosen prior to
enter Indonesian market.
1.Cooperate with local partner/distributor
2.Company Incorporation
12. 12Cekindo Bisnis Grup Š2015
Cooperation with Local Partner
Search and Shortlisting the potential distributors based on the requirements
Conduct and arrange initial meetings with potential distributors
Company review to clarify the background of the distributors
Negotiations and Close cooperation
Product Registration
Several steps to encourage the potential distributors
13. 13Cekindo Bisnis Grup Š2015
Company Incorporation
1. PT. PMA require minimum 2
shareholders, 1 director and 1
commissioner
2. Planned business activities
determine percentage allowed
for foreign in Indonesia
3. The minimum investment of PT.
PMA is USD 1.000.000 and
minimum 25% of total
investment is paid-in-capital
4. IUT (Permanent Business
License) can be obtained after
realization of investment by
LKPM report
Foreign Owned Company
(PT. PMA)
1. Local PT require minimum 2
local shareholders, 1 local
director and 1 local
commissioner
2. There are 3 sizes of local PT
based on the amount of paid in
capital :
- small
- medium
- large
3. If company plans to hire
foreign, medium size with
capital IDR 1.000.000.000 is
required
Local Company (PT)
1. Representative office is limited
only for market studies,
marketing, promotion and not
allowed to generate any
revenue in Indonesia
2. No shareholder requirement
3. No director and commissoner
requirement
4. No capital requirement
5. Representative office require
minimum 1 Chief of
Representative Office
Representative Office
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Registration with Ministry of Trade to obtain
company registration certificate
Open bank account and pay capital
Tax number and VAT registration
Obtain government letter office domicile
Execution of the documents by shareholders
and notarization by a public notary
Preparation of companyâs incorporation
documents
Obtaining Investment approval from BKPM
Summary of company registration
procedures
11/1/2016
⢠The time frame for PMA company
Incorporation is around 2-3 months.
⢠Companies are required to keep
accounting records and prepare annual
financial reports.
⢠Local nominee is not supported by
Indonesian Law.
⢠Principal license and then a Permanent
Business license allowed to apply for
import license, work Permits.
⢠The Indonesian authorities recognize
virtual office.
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⢠Foreign Investors must apply for approval from BKPM.
⢠Indonesia prohibits foreign currencies for domestic transactions.
⢠All legal documents to be translated in Bahasa Indonesia.
⢠Corporate Tax 25% and VAT 10%.
⢠Import duty payable 0% - 150% on customs value of imported goods.
⢠On luxury goods both manufactured in and imported into Indonesia are
the rates range from 10-50%.
⢠Bank Indonesia regulated dollar purchases above USD 25,000 with
requirement to show underlying transaction documents.
Legal & Tax Considerations
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⢠Bureaucracy is slowly reducing.
⢠Rules are often unclear and can change quickly.
⢠Challenging labour situation with rising minimum wage.
⢠Choosing the right partner as one of the important key.
⢠Use of Bahasa Indonesia and English for business.
⢠Respectful and indirect communication style in business.
⢠Informal get-to-know-you initial business meetings.
Local Flavors
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Content
Market Overview and Facts
Doing Business in Indonesia
Company Profile
Market Trends and Investments
11/1/2016
Company Profile
2
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3
4
18. 18Cekindo Bisnis Grup Š2015
Company Profile
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PT. Cekindo Bisnis Grup is a leading consulting firm of
business services to clients expanding and operating in
Indonesia and further to Southeast Asia.
Cekindo provides full-range of market-entry and corporate
secretarial services to enable our clients to focus on their
core business and activities in Indonesia.
Our Vision
To be leading consulting firm of business services to clients
expanding and operating in Indonesia.
Our Mission
To provide full-range of market-entry and corporate services
to enable our clients to focus on their core business and
activities in Indonesia and beyond.
Our Values
Client-focused
Excellence performance
Knowledgable locally
Integrity moral
Normative operations standards
Delivered on-time
One stop services provider
Our main services include :
Business Set Up
- Company Registration
- License & Product Registration
- Market Research & Analysis
- Local Partner Selection
- Trade Mission
- Land & Property Ownership
Business Process Outsourcing
- Recruitment & HR Establishment
- Payroll Management
- Accounting & Tax Reporting
- Visa & Work Permit
- Mystery Shopping
Local Representation
- Local Distributor & Partner
- Buying Agent
- Office Space
19. 19Cekindo Bisnis Grup Š2015
Profile Overview Relevant Experience:
ď§ Mr. Ramelan is currently Senior Advisor at PT
Cekindo Bisnis Grup.
ď§ Hi is a Research Professor at the Agency for the
Assessment and Application of Technology.
ď§ The honorary degree of Doctor Honoris Causa from
Monash University, Australia and Northeastern
University Boston.
Senior Advisorâ Prof. Dr. Rahardi Ramelan
⢠Minister of State for Research and Technology of the Republic of Indonesia and
Chairman of the Agency for Assessment and Application of Technology (BPPT) in the
Seventh Development Cabinet of the Republic of Indonesia.
⢠Minister of Industry and Trade in the Development Reforms Cabinet of the Republic of
Indonesia and Chairman of National Logistic Agency.
⢠Deputy Chairman for Industrial Analysis and Vice Chairman of the National
Development Planning Agency of the Republic of Indonesia
⢠Several management positions and responsibilities related to Indonesian Aviation
industry, the Weapon industry.
Prof. Dr. Rahardi Ramelan
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20. 20Cekindo Bisnis Grup Š2015
Profile Overview Relevant Experience:
ď§ Michal is currently Principal Consultant at PT
Cekindo Bisnis Grup.
ď§ He has more than 5 yearâs experience in the
Corporate Market research, Strategy and
Evaluation Expansions, Business Consultancy,
and Preparation of Business Feasibility Studies.
ď§ He has worked for various industries, namely
Grocery and Marchandise Retail, Energy,
Medical Device, Heavy and Automation
Industries.
ď§ +6281282300584
michal.wasserbauer@cekindo.com
Principal Consultantâ Michal Wasserbauer
Multinational grocery and general merchandise retailer: Capital Investment Appraisals
⢠Performed a position of Senior Capital Investment Specialist for Czech & Slovak with key
responsibilities for Capex, appraisals of new store openings, reconstructions, market
opportunities valuation, long-term planning, financial performace strategy and performance
evaluation, and financial reporting to Financial Director for Czech Republic & Slovak Republic.
Worldâs largest student and recent graduates-run organisation: Financial Controller
⢠As Vice President for Finance and member of Executive Board, responsible for managing the
financial team. Ensuring financial stability and financial legality of all local entities in the Czech
Republic, includes budgeting, controlling, financial education, coaching and mentoring.
Implementing measurable performance indicators such as competencies and KPIs.
International consultation company: Market Expansion Consultant
⢠Provided marketing consultancy and advisory for foreign companies with goal to expand to
Indonesia. Delivered feasibility studies for energy, medical device, retail, heavy and automation
industries. Assisted in establishment of the local and international company related to legal and
bureaucracy requirements as well as outsourcing of supporting processes for foreign
companies.
Michal Wasserbauer
Relevant Skills:
⢠Market opportunities valuation
⢠Investment analysis
⢠Performance management
⢠Feasibility studies
⢠Strategy planning
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⢠Stakeholder management
⢠Marketing consultancy
21. 21Cekindo Bisnis Grup Š2015
Profile Overview Relevant Experience:
ď§ Nurmia is currently Principal Consultant at PT
Cekindo Bisnis Grup.
ď§ She has wide experience in the areas of Business
Development, Legal Corporate Restrictions, Business
Consulting, Project Management, Market
Development & Entry Strategy, Sales & Distribution,
Management Strategy, Recruitment, Visa & Work
Permit, and Change Management.
ď§ She has worked for various industries, namely
Energy & Resources, Telecommunication, Retail,
Pharmaceutical & Medical, Financing, Non-Profit, IT
and Heavy Industries.
ď§ +628119691987
nurmia.agustina@cekindo.com
Principal Consultantâ Nurmia Dwi Agustina
International Management company: Management & Legal consultant
⢠Responsible in designing, developing, and implementing of strategies for market expansions,
Project management, Develop communication and legal plan and program, support the
organization alignment from current to new leagl and business process, conduct value chain
mapping of prioritized businesses and alalyze.
Chamber of Commercial: Head of Business Processing Section
⢠Responsible for business processing section, assisting European companies in their expansion
legal process in Indonesia, holds position of the honorary Vice-President for the Asian market in
the Portuguese Association Expandia.
ď§ She has worked for various industries, namely Energy & Resources, Telecommunication,
Retail, Pharmaceutical & Medical, Financial Services, Non-Profit, IT and Heavy Industries.
Nurmia Dwi Agustina
Relevant Skills:
⢠Corporate law
⢠Outsourcing processes
⢠Company formation
⢠Acquisitions
⢠Project Management
⢠Competitive Analysis
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⢠Business Planning
⢠Risk Management
⢠Talent Management Strategy
⢠Recruitment
⢠Visa & Work Permit
⢠Change Management
23. 23Cekindo Bisnis Grup Š201511/1/2016
PT. Cekindo Bisnis Grup
Menara BCA Grand Indonesia 50th fl
Jl. MH. Thamrin No. 1
Jakarta Pusat 10310
Indonesia
info@cekindo.com
+6221 580 6889
http://www.cekindo.com