Результати візиту української делегації до республіки Індонезія

Українська зернова асоціація
Ukrainian Grain Association
Serhiy Ivaschenko
Ukraine – Indonesia
cooperation
The results of the visit to RI

Population ~ 260 m (world's 4th most populous country)
Land ~ 1,904,569 km2 (world’s 14th largest country)
~ 18,307 islands with over 742 languages spoken
Member of the G20
Nominal GDP ~US$1.020 trillion , GDP in PPP terms ~ US$$3.257 trillion
Per capita GDP in PPP ~ US$12,432, nominal per capita GDP ~US$3,895.
It is the 16th largest economy in the world, this is projected to rise to 7th
by the year 2030.
What is Indonesia?

Benefits for Ukraine
Indonesia’s economy has grown at a steady rate of 5.8% for over 10 years. Domestic
consumption makes up 55.8% of Indonesia’s GDP. This helped to protect Indonesia
from the global economic crisis.
Benefits for UA businesses exporting to Indonesia include:
• abundance of natural resources
• political stability following transition to democracy in 1998
• strong domestic consumption
• largest economy in south east Asia
Indonesia is the:
• world’s largest producer and exporter of crude
palm oil
• second largest exporter of coal
• second largest producer of cocoa and tin
• fourth largest exporter of natural gas
Indonesia also has abundant resources such as nickel,
gold, coffee and other forest and marine resources.

Population of Indonesia 2017
A middle class of 74 million more than the population of Ukraine drives it's
economic growth, this is projected to double by 2020.
Benefits for UA businesses exporting to Indonesia include:
• growing middle class
• strong domestic consumption
• population increasing by 4.5 million a year
• high proportion of working age people
Indonesian consumers are:
young, with 60% under 30 years of age
tech savvy
open and interested in new international brands, products and services
In 2014 accounting for 44.8% of the total labour force was employed on service sector,
this has been followed by agriculture (34.3%) and industry (20.9%). Agriculture, however,
had been the country's largest employer for centuries.

Language and culture
The official language is Bahasa Indonesia. English is widely spoken by young people, but
interpretation may be required for business meetings, particularly outside the major
cities.
During meetings you should:
• exchange business cards immediately after introductions presenting with both
hands or with the right
• not offer anything with your left hand, nor receive anything with your left hand
• keep cards on the table, not put them away immediately
• not start drinking when offered a drink until formally invited to do so by the host
• not to cross your legs when sitting as showing the soles of your feet is considered
highly discourteous in Indonesia
• not stand with your hands on your hips or with your arms folded as this is regarded
as aggressive and rude
• Email is treated as an optional form of communication and rarely gets responses.
After a meeting send a formal letter setting out what you discussed. Company
literature will be well received. Then follow this up with a phone call to confirm the
letter has been received. Do not expect progress until your next face to face
meeting.

Bilateral trade turnover between Ukraine and RI
for the last five years.
Economic indicator Year Data of State Statistics
Service of Ukraine,
mln, USD
Data of State Statistical
Agency of RI,
mln, USD
Turnover 2016 593 872,6
2015 354,7 525,2
2014 440,9 657,4
2013 763,8 1 191,8
2012 884,4 1 321,2
Export from Ukraine to RI 2016 366,3 562,3
2015 185,9 197,4
2014 168,3 298
2013 318,9 553
2012 472,2 773
Import from RI to
Ukraine
2016 226,7 310,3
2015 168,8 327,8
2014 272,6 359,4
2013 444,9 638,8
2012 412,2 548,2
According to Ukraine’s statistics, the bilateral
trade turnover between Ukraine and
Indonesia in 2016 amounted to 593 million
USD and increased compared to the same
period of 2015 by 67% (in 2015 - 354.7
million USD). Exports amounted to 366.3
million USD and increased by 97% (in 2015 -
185.9 million USD) while imports amounted
to 226.7 million USD and increased to
34% (in 2015 - 168,8 million USD).
Ukrainian exports to RI, mostly represented
by agricultural and metallurgical goods.
Ukrainian import of RI consists mainly of
palm oil, products of electronic industry,
cocoa, footwear, paper and cardboard.

Distance from Ukraine to Indonesia
Odesa – Istanbul: 345 nm
Istanbul – Port Said: 860 nm
Port Said – Jakarta: 5655 nm
Total distance: 6860 nm
Speed: 12 knots
Voyage time: 23D 19H

Flour mills location

INDONESIAN WHEAT GRAIN IMPORTS
Period: 2016 – 2017 (Jan – Sep)
No Country of Origin
2016 (Full Year) 2017 (Jan-Sep)
MT 000 USD MT 000 USD %
1
AUSTRALIA 3 499 715 852 326 4 655 503 1 055 300 56.1 %
2
CANADA 1 658 441 445 758 1 228 129 340 581 14.8 %
3
UNITED STATES 938 665 230 933 857 158 205 515 10.3 %
4
UKRAINE 2 469 437 492 965 732 248 151 866 8.8 %
5
RUSSIA 991 216 582 478 116 108 7.0 %
6
ARGENTINA 1 289 198 243 181 152 312 31 465 1.8 %
7
OTHERS 292 981 60 64988 553 17 261 1.1 %
TOTAL 10 534 672 2 408 210 8 296 381 1 918 098 100 %
Ave CIF, USD/MT 228,6 231,2
GROWTH, yoy(%) 42.1 % 15.6 % 0.4 % 1.1 %
Country of Origin: Australia, Canada, US, & Ukraine

No Country of Origin
1 TURKEY 88 962 22 417 12 057 3 028 33.4 %
2 UKRAINE 28 560 8 094 6 589 1 725 18.2 %
3 PHILIPPINES 7 961 2 548 4 664 1 358 12.9 %
4 VIETNAM 4 532 1 841 4 380 1 712 12.1 %
5 ROMANIA 0 0 4 224 1 091 11.7 %
6 KOREA, REPUBLIC 0 0 2 413 927 6,7 %
7 SINGAPORE 2 407 1 016 1 275 572 3.5 %
8 JAPAN 684 495 527 366 1.5 %
9 OTHERS 4 737 2 140 12 27 0.0 %
TOTAL 148 062 42 327 36 140 10 808 100 %
CIF, USD/MT 285,9 299
GROWTH, yoy(%) 51.3 % 24.6 % -71.9 % -70.6 %
Country of Origin: Turkey, Ukraine, Philippines, & Vietnam.
Compared to 2016, wheat flour imports down by 71.9 %
INDONESIAN WHEAT FLOUR IMPORTS

No
Country of
Destination
1 PHILIPPINES 28 047 10 790 22 541 7 777 37.6 %
2 EAST TIMOR 15 634 7 417 12 733 5 491 21.2 %
3 PNG 5 131 2 035 10 273 4 125 17.1 %
4 MYANMAR 874 334 3 381 1 038 5.6 %
5 KOREA 6 789 2 982 3 234 1 309 5.4 %
6 MALAYSIA 1 896 676 1 481 549 2.5 %
7 SINGAPORE 2 163 906 1 082 440 1.8 %
8 THAILAND 502 218 211 100 0.4 %
9 BRUNEI DARUSSALAM 262 180 161 127 0.3 %
10 JAPAN 554 353 36 23 0.1 %
11 OTHERS 429 424 4 807 1 737 8.0 %
TOTAL 62 281 26 315 59 941 22 716 100 %
FOB, USD/MT 422,5 379. 0
GROWTH, yoy(%) -21.3 % -25.4 % 28.2 % 13.3 %
INDONESIAN WHEAT FLOUR EXPORTS

No
Country of
Destination
1 VIETNAM 302 201 51 529 244 919 40 684 64.3 %
2 KOREA 90 123 18 196 59 400 9 312 15,6 %
3 SAUDI ARABIA 45 100 7 724 44 000 6 899 11.6 %
4 CHINA 11 652 2 485 17 127 3 161 4.5 %
5 PHILIPPINES 21 835 3 659 7 890 1 260 2,1 %
6 THAILAND 68 519 11 301 7 150 1 151 1.9 %
7 JAPAN 9 459 3 213 0,1 0,03 0.0 %
8 OTHERS 525 92 184 68 0.0 %
TOTAL 549 558 98 228 380 670 62 535 100 %
FOB USD/MT 178,7 164,3
GROWTH, yoy(%) 11.2 % 5.7 % -1.2 % -12.4 %
Primary Destinations: VIETNAM, SOUTH KOREA, SAUDI ARABIA, & CHINA.
Compared to 2016, by product export value down by 12.4 %
INDONESIAN BY PRODUCTS EXPORTS

No HS CODE WHEAT FLOUR BASED PRODUCTS
2016 TOTAL 2017 2017 vs 2016 %
QTY, MT VALUE (000 USD) QTY, MT VALUE (000 USD) QTY VALUE
1 19053210 Waffles
80,648 244,358
1,668 5,012
20,80% 17,30%
2 19053220 Wafers 66,962 194,673
3 19023040 Oth instant noodles 104,513 163,460 75,466 123,255 -2,30% 2,40%
4 19053110 Sweet biscuits, not containing cocoa 46,477 164,050 36,088 102,199 20,30% -0,70%
5 19053120 Sweet biscuits, containing cocoa 35,678 69,168 28,554 52,681 11,00% 7,90%
6 19059090 Oth baker wares 9,141 20,372 7,045 18,126 6,80% 22,00%
7 19059010 Unsweetened teething biscuits 5,905 12,100 6,000 12,783 56,40% 64,20%
8 19023090 Transparent vermicelli, stuffed, whether or not cooked 14,395 16,949 11,322 16,815 21,50% 55,90%
9 19021990 Pasta, stuffed or otherwise prepared, other 7,130 8,785 5,850 6,846 1,60% -4,00%
10 19059080 Other crisp savoury food products 1,865 3,758 1,749 3,879 26,10% 44,00%
11 19059040 Pastries 803,000 1,861 569,000 1,112 12,60% -18,00%
12 19054010
Rusk & sim product, w/o added sugar, honey, eggs, fats, cheese or
fruit
395,000 1,015
66,000 234,000
104.9 % 128.7 %
13 19054090
Rusk & sim product, w/ added sugar, honey, eggs, fats, cheese or
fruit 471,000 1,211
14 19051000 Crispbread 4,806 1,702 559,000 1,324 -87,90% 14,40%
15 19059020 Oth unsweetened biscuits 608,000 817,000 604,000 641,000 75,70% 47,50%
16 19059030 Cakes 157,000 614,000 142,000 496,000 56,40% 44,40%
17 19022010 Pasta, Stuffed w/ meat or meat offal
55,000 302,000
53,000 311,000
4,30% 5,40%
18 19022030 Pasta. Stuffed w/ fish, crustaceans or molluscs 0 0
19 19021100 Pasta, stuffed or otherwise prepared, containing eggs 130,000 168,000 106,000 145,000 -1,60% 5,70%
20 19059070Communion wafers, sealing wafers, rice paper and similar products 125,000 312,000 7,000 17,000 -94,00%-93,90%
TOTAL 312,831 709,790 243,282 541.761 9,20% 10,50%
Growth yoy, % 20,30% 14,90% 9,20% 10,50%
Primary Destinations: China, Malaysia, Vietnam, Thailand, & Philippines.
Compared to 2016, Wheat Flour Based product export rise by 10.5%
INDONESIAN WHEAT FLOUR BASED PRODUCTS EXPORTS (Jan-Sep17)

Year
EXPORT VALUE (in .000 USD, FOB)
Growth
Wheat Flour
Wheat Flour
Based Products
By Products Total
2010 18,703 329,159 71,66 419,522 -
2011 18,296 416,077 71,043 505,416 20,5%
2012 26,297 441,871 88,055 556,223 10,1%
2013 37,063 513,128 105,762 655,953 17,9%
2014 39,952 605,683 109,907 755,542 15,2%
2015 35,29 608,117 92,972 736,379 -2,5%
2016 26,315 700,535 98,228 825,078 12,0%
2017 (Jan-Sep) 22,716 541,761 62,535 627,013 7,8%
1. Total export (2016): 825,1 million USD-> 34,26% of wheat grain import value.
2. It will be 1 Billion USD in the next few years
3. In the future, Indonesia will become a center of Wheat flour Industries in East
Asia region
EXPORT VALUE OF WHEAT FLOUR, BY PRODUCTS
& WHEAT FLOUR BASED PRODUCTS, 2010 -2017 (Jan-Sep)

1. Flour Mill industries growth since 1998:
1970 ‒ 1998 (Bulog Era) :4 Flour Mills
in 2017 (post deregulation) :25 Flour Mills
(centralized in Java, 20 flour mills)
Total Wheat Milling Capacity: 11.4 Million MT
2. Indonesian Wheat Flour Consumption:
2016: 5.91 MMT, rise by 7.72%
(Wheat equivalent: 7.77 MMT)
2017 (Jan-Sep): 4.6 MMT, rise by 4.86%
(Wheat equivalent: 5.9 MMT)
3. Total export value of wheat flour, by products & wheat flour based products (2016 full year): 825.1
mio It will be in 1 billion USD for the next few years.
4. Export value in 2017 (Jan-Sep), Total: 627.0 mio USD, growth 7.8%
wheat flour export: 22.7 mio USD (rise by 13.3% compared to 2016)
by products export 62.5 mio USD (down by 12.4% compared to 2016)
wheat flour based products export 541.8 mio USD (rise by 10.5% compared to 2016)
CONCLUSION

Phytosanitary requirements
COMPULSORY
RECIRCULATION
METHYL BROMIDE
OUT
PHOSPHINE
IN
LAND REGISTRATION

Quality of wheat

Wheat bran

Tilletia

Thanks for your
attention

Результати візиту української делегації до республіки Індонезія

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