Post on 04-Nov-2019
INVEST IN INDONESIA
Athens, February 2019ADITIA PRASTADirector
Indonesia Investment Promotion Centre London
Why Indonesia?
2
W W W . B K P M . G O . I D
INDONESIA AS THE LARGEST ECONOMY IN ASEAN
WHERE
ON EARTH
Top-20
GDP Current
Prices
in 2017(USD billion)
$309
$321
$437
$1,015
Malaysia
Phillipines
Thailand
Indonesia
ASEAN GDP in 2017
(USD Billion)
I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 3
The largest economy in SE Asia &
the only member of G20 in ASEAN
16th largest economy
$11
$17
$22
$66
$215
$305
Brunei Darussalam
Lao PDR
Cambodia
Myanmar
Vietnam
Singapore
Source: International Monetary Fund (IMF), 2018
INDONESIA: DOING BUSINESS 2019 AND INVESTMENT GRADE
91
72 73
0
20
40
60
2015 2016 2017 2018 2019
EODB Ranking IndonesiaEconomies 2017 2018 2019
Malaysia 23 24 15
Thailand 46 26 27
China 78 78 46
Vietnam 82 68 69
Indonesia 91 72 73India 130 100 77
Regional EODB
+41in 4 years
I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 4
114 109
91 80
100
120
Source: World Bank - Doing Business Report
India 130 100 77
Philippines 99 113 124
Cambodia 131 135 138
Laos 139 141 154
Myanmar 170 171 171
BBB- / Stable BBB/Stable BBB- / Positive BBB- / PositiveBaa2/Stable
Credit Ratings 2018
INDONESIA HAS BEEN SHOWING ITS STABILITY & RESILIENCE
I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 5
• Indonesia is the World’s THIRD largest democracy
• General elections in Indonesia have shown nonegative impact on Indonesia’s economic growth
• The effect after general election in 2009 showed an
increase trend in GDP growth, while in general
election in 2014, displayed stable movement in GDP
growth
Source: Indonesia Central Bureau of Statistics & IMF, 2019
RISING INDONESIAN MIDDLE CLASS
195
180
145110
240265
280 280
Mckinsey research shows Indonesian consuming class
will grow almost double in 10 years since 2010
22
26
73
85
Apparel
Leisure
Food and beverage
Financial services
57
105
194
565
2011 2030
INDONESIAN MIDDLE CLASS SPENDING (US$ BILLION)
I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d
4585
135170
195Below
Consuming class
Consuming class
2010 2020 2030 in 5-6%
GDP scenario
2030 in 7% GDP
scenario
4
6
8
11
13
14
Health care
Beauty and
cosmetics
Telecommunications
Housing and utilities
Transportation
Education
13
16
19
26
30
42
Source: Canback Global Income Distribution Database; Indonesia’s Central Bureau of Statistics, Mckinsey Consumer and Shopper Insight Indonesia Study, 2011, Mckinsey Global Growth Model; Mckinsey
Global Institute analysis
6
Millions
COMPETITIVE LABOUR MARKET
Indonesia 67%
Population ages 15-64 (% of total)
The Youngest Population compared to other OECD
Members
Education Participation Rate
(% of total)
I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d
INCENTIVES
Euro area 64%
UK, 63%
Japan, 60%
OECD, 65%
United States, 65%
19
60
19
63
19
66
19
69
19
72
19
75
19
78
19
81
19
84
19
87
19
90
19
93
19
96
19
99
20
02
20
05
20
08
20
11
20
14
20
17
Source: OECD, 2018
7
INDONESIA MINIMUM WAGE PER PROVINCES IN 2019
Java, Bali, and Nusa Tenggara Islands
Sulawesi, Maluku, and Papua Island
North Sulawesi € 191 (Rp 3,051,076)
Central Sulawesi € 133 (Rp 2,123,040)
South Sulawesi € 179 (Rp 2,860,382)
Sumatra Island
Aceh € 184 (Rp 2,935,985)
North Sumatera € 144 (Rp 2,303,402)
West Sumatera € 144 (Rp 2,289,228)
Riau € 167 (Rp 2,662,025)
Kalimantan Island
West Kalimantan € 139 (Rp 2,211,266)
Central Kalimantan € 164 (Rp 2,615,735)
South Kalimantan € 166 (Rp 2,651,781)
East Kalimantan € 172 (Rp 2,747,560)
North Kalimantan € 173 (Rp 2,765,463)
€ 1 = IDR 15,950 (per February 2019)
Minimum wage below
€200/month in almost all
provinces
I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d
Java, Bali, and Nusa Tenggara Islands
D.K.I. Jakarta € 247 (Rp 3,940,972)
West Java € 105 (Rp 1,668,372)
Central Java € 101 (Rp 1,605,396)
D.I. Yogyakarta € 98 (Rp 1,570,922)
East Java € 102 (Rp 1,630,058)
Banten € 142 (Rp 2,267,965)
Bali € 144 (Rp 2,297,967)
West Nusa Tenggara € 124 (Rp 1,971,547)
East Nusa Tenggara € 112 (Rp 1,793,298)
South Sulawesi € 179 (Rp 2,860,382)
South East Sulawesi € 147 (Rp 2,351,869)
Gorontalo € 149 (Rp 2,384,020)
West Sulawesi € 149 (Rp 2,369,670)
Maluku € 151 (Rp 2,400,664)
West Papua € 181 (Rp 2,881,160)
Papua € 196 (Rp 3,128,170)
Riau € 167 (Rp 2,662,025)
Jambi € 152 (Rp 2,423,888)
South Sumatera € 176 (Rp 2,805,751)
Bengkulu € 128 (Rp 2,040,406)
Lampung € 141 (Rp 2,241,269)
Bangka Belitung € 187 (Rp 2,976,705)
Riau Islands € 167 (Rp 2,662,025)
Source: Ministry of Workforce, 2019
8
Fintech Companies GrowthFintech Companies Growth Fintech Companies Business (2017)Fintech Companies Business (2017)
FINANCIAL TECHNOLOGY IS GROWING IN INDONESIA
I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d
Fintech Transaction VolumeFintech Transaction Volume
Source: Indonesian Fintech Association, 2017Source: Indonesian Fintech Association, 2017
(in billion US$)
9
Investment Performance
10
W W W . B K P M . G O . I D
FDI REALIZATION TO INDONESIA FROM AROUND THE WORLD, 2014-2018
Based on Region Based on Country of Origin
[CATEGORY
NAME],
$[VALUE]B,
26%
[CATEGORY
NAME],
$[VALUE]B,
32%
[CATEGORY
NAME],
$[VALUE]B,
[PERCENTAGE]
[CATEGORY
NAME],
$[VALUE]B,
[PERCENTAGE]
[CATEGORY
NAME],
$[VALUE]B,
[PERCENTAGE]
[CATEGORY
NAME],
$[VALUE]B,
[PERCENTAGE]
[CATEGORY
NAME],
$[VALUE]B,
[PERCENTAGE]
[CATEGORY
NAME],
$[VALUE]B,
[PERCENTAGE]
I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 11
Based on Sectors
[CATEGORY
NAME],
$[VALUE]B,
12.7%
[CATEGORY
NAME],
$[VALUE]B,
10.1%
[CATEGORY
NAME],
$[VALUE]B, 9.1%[CATEGORY
NAME],
$[VALUE]B, 8.2%[CATEGORY
NAME],
$[VALUE]B, 8.1%
[CATEGORY
NAME],
$[VALUE]B, 7.9%
[CATEGORY
NAME],
$[VALUE]B, 6.8%
[CATEGORY
NAME],
$[VALUE]B,
37.2%
[CATEGORY
NAME],
$[VALUE]B,
14%
[CATEGORY
NAME],
$[VALUE]B, 7%
[CATEGORY
NAME],
$[VALUE]B, 6%
[CATEGORY
NAME],
$[VALUE]B, 5%
[CATEGORY
NAME],
$[VALUE]B, 5%
[CATEGORY
NAME],
$[VALUE]B, 5%
32%
GREECE: INVESTMENT 2019
61 60 61
67
54
56
58
60
62
64
66
2015 2016 2017 2018 2019
EODB Ranking GREECE
237.41
195.64 192.77 200.69
218.06
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
100.00
150.00
200.00
250.00
300.00
350.00 GREECE GDP (US$ Billion) and
Investment Percentage to GDP
GDP Investment %
I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 12
72
66
68
70
72
74
Source: World Bank - Doing Business Report
B+ / positive BB- / Stable CCC+ / PositiveB3/positive
Credit Ratings (2018)
11.91 9.82 10.61 11.73 12.61
-
10.00
20.00
2014 2015 2016 2017 2018*
-
50.00
Source: IMF, 2018
*2018: Projection
EUROPEAN FDI TO INDONESIA 2014 – 2018
No Country
2014 2015 2016 2017 2018 GRAND TOTAL
ProjectInvestment
(US$. Thousand)Project
Investment
(US$. Thousand)Project
Investment
(US$. Thousand)Project
Investment
(US$. Thousand)Project
Investment
(US$. Thousand)Total Project
Investment Total
(US$. Thousand)
1 Netherlands 181 1,726,338 421 1,307,783 554 1,475,187 871 1,489,424 840 943,124 2,867 6,941,855
2 United Kingdom 182 1,587,955 267 503,219 360 307,264 585 774,784 483 271,133 1,877 3,444,356
3 Switzerland 56 150,831 103 61,845 152 346,703 227 615,458 225 243,283 763 1,418,120
4 Germany 115 50,161 169 57,268 238 133,159 367 288,980 361 280,418 1,250 809,986
5 France 115 200,230 197 131,571 301 109,017 460 249,570 408 49,631 1,481 740,019
6 Luxembourg 23 85,783 37 66,649 88 181,905 91 79,380 134 134,261 373 547,977
7 Belgium 21 13,614 72 7,445 80 169,703 136 130,532 140 216,373 449 537,666
8 Italy 51 63,024 118 104,123 110 26,719 181 64,859 187 32,088 647 290,812
9 Spain 25 15,694 65 56,587 70 50,089 106 7,801 102 10,521 368 140,692
10 Malta 2 119,736 2 7,549 5 4,598 9 131,883
11 Austria 13 1,589 16 275 29 7,444 44 3,162 47 71,407 149 83,876
12 Turkey 25 64,118 25 3,885 41 2,690 70 1,551 51 4,656 212 76,899
13 Poland 5 4,350 12 18,622 20 1,605 22 19,726 9 200 68 44,503
14 Sweden 12 1,730 18 310 40 4,469 61 17,897 94 16,830 225 41,236
15 Norway 3 106 13 1,827 25 15,656 33 5,584 24 17,202 98 40,376
16 Denmark 15 1,438 15 2,023 22 760 56 17,959 56 1,816 164 23,996
17 Cyprus 2 7,572 4 0 5 1,340 12 6,601 15 5,574 38 21,087
18 Channel Islands 1 190 3 80 10 4,674 13 14,814 7 75 34 19,833
19 Russia 25 3,569 17 1,008 17 5,494 49 7,406 45 2,178 153 19,655
I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d
19 Russia 25 3,569 17 1,008 17 5,494 49 7,406 45 2,178 153 19,655
20 Finland 7 3,598 2 0 11 12,252 17 200 20 3,528 57 19,578
21 Ireland 4 50 11 1,996 17 3,640 16 602 48 6,288
22 Guernsey 1 0 5 4,099 1 765 7 4,864
23 Czech 4 200 5 766 6 1,255 8 1,554 7 969 30 4,743
24 Portugal 1 400 4 504 7 869 3 400 8 1,188 23 3,362
25 Lithuania 1 881 2 334 2 1,810 5 3,025
26 Ukraine 2 0 7 1,022 9 694 10 945 28 2,661
27 Bulgaria 2 0 2 870 3 0 8 1,213 7 521 22 2,604
28 Hungary 3 540 1 0 6 80 5 50 7 1,900 22 2,571
29 Romania 2 429 7 293 4 1,578 13 2,300
30 Greece 4 43 5 610 6 728 15 1,38131 Croatia 1 0 1 0 3 783 5 783
32 Slovakia 1 0 1 0 4 301 4 450 3 20 13 771
33 Yugoslavia 2 600 2 0 4 600
34 Slovakia 2 0 3 0 2 277 3 139 3 179 13 594
35 Latvia 2 77 2 59 1 141 5 276
36 Scotland 3 5 2 17 4 159 7 80 4 0 20 261
37 Isle of Man 3 92 2 120 2 0 7 212
38 Azerbaijan 1 0 1 180 1 0 3 180
39 Estonia 2 150 1 30 1 0 1 0 5 180
40 Iceland 1 0 2 0 1 2 4 2
41 Serbia 2 0 1 0 3 0
42 Liechtenstein 1 0 4 0 3 0 8 0
43 Gibraltar 1 0 1 0 1 0 3 0
Source: BKPM, 2019
13
GREECE FDI TO INDONESIA 2014-2018
Bali, 1,114.2
Nusa Tenggara
Timur, 43.3
Nusa Tenggara
Barat, 223.9
Jawa Barat,
0.1
By Location (US$. Thousand)
I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 14
Metal,
Machinery,
Electronic
Medical
instrument...
Industry , 0.1
Hotel and
Restaurant,
467.2
Other
Services,
514.2
Trade and
Reparation ,
400.0
By Sector (US$. Thousand)
GREECE Companies in Indonesia (2014-2018)
1. Flores Blue Waters
2. Melium Nusantara
3. Indonesia Surfaris
4. Menikmati Distribusi
5. Sandorini Greek Cuisine
6. Pick Creative Agency
7. Primitive World
8. Nautilus Subscooters
GREECE AND NEIGHBOURS FDI TO INDONESIA (2014-2018)
1,000
1,200
1,400
1,600
1,800
2,000
FDI 2014-2018 (US$ Thousands) Total FDI 2014-2018(US$ Thousands)
I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 15
0.017% 0.017%
0.009%
0.005%
Bulgaria Hungary Greece Croatia
FDI Percentage to All European FDI
(Total 2014-2018)
2014 2015 2016 2017 2018
Croatia 0 0 0 0 783
Bulgaria 0 870 0.0 1,213 521
Hungary 540 0 80.5 50 1,900
Greece 0 0 43.3 610 728
0
200
400
600
800
1,000
Investment Regulations
16
W W W . B K P M . G O . I D
INVESTMENT FOREIGN OWNERSHIP REGULATION
More open to investment• More business fields open to 100% FDI.
• Less business fields open with condition, reduced from
664 to 515.
• More business fields open to foreign majority share
ownership (>50% FDI).
• Less business fields reserved for domestic investment,
reduced from 66 to 51.
More open to investment• More business fields open to 100% FDI.
• Less business fields open with condition, reduced from
664 to 515.
• More business fields open to foreign majority share
ownership (>50% FDI).
• Less business fields reserved for domestic investment,
reduced from 66 to 51.
Simpler investment procedure
• No more technical approval from other ministries or
institutions.
• No more condition related to regional government.
• Special Economic Zones (SEZs) are excluded from the
negative list, except for business fields allocated for SMEs.
Simpler investment procedure
• No more technical approval from other ministries or
institutions.
• No more condition related to regional government.
• Special Economic Zones (SEZs) are excluded from the
negative list, except for business fields allocated for SMEs.
I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 17
100% FDI Distributor affiliated with
production
From 67% previously
100% FDI Raw material for
pharmacy
From 85% previously
100% FDI E-Commerce in
partnership with SMEs
From previously closed to FDI
100% FDI
MarketplaceFor min. investment of IDR 100 billion (USD 8
million).
Open for 49% FDI for investment < IDR 100 million
100% FDI Film industry
Production, post- production, distribution, projection
67% FDI Transport infrastructure & support services
Including cargo handling, air transport, renting & leasing
100% FDI Tourism
Sports centre, restaurant, bar, café
Source: Perpres No. 4 of 2016
Agriculture• Cattle breeding & farming
• Corn plantation
• Soya plantation
• Rice farming
• Tropical fruits
Power Generation• Geothermal
Manufacturing Industry• Iron & steel
• Clothing
• Semi conductors
• Electronic components
• Computer
• Communication devices
• Television
• Tires
• Pharmaceutical
30% of investment valueReduction of corporate net income tax for 6 years, 5% each year.
Including:• Accelerated Depreciation & Amortization• Lower Tariff for Dividend Tax (10%)• Longer period of Fiscal Loss Compensation
(5-10 years)
TAX ALLOWANCE Government Regulation No.9/2016
I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 18
• Geothermal
• Alternative/renewable energy
Oil & gas industry• Oil refinery
• Liquefied Natural & Petroleum Gas
• Lubricant
Source: PP No. 9/2016
• Pharmaceutical
• Cosmetics
• Fish & shrimp processing
• Etc.
Real Estate for Tourism• Tourism area
145business fieldsEligible for tax allowance, expanded from 143 segments in the previous regulation
Under certain requirements among others:
investment value or export orientation,
manpower absorption, local content, and project
location (especially outside Java island).
TAX HOLIDAY
Requirements:
1. An Indonesian legal entity with a new
investment in a pioneer industry, with a
minimum capital investment of IDR100 billion
(approximately €6.5 million).
2. First time applying for Tax Holiday.
3. Pioneer Industries – can prove that the
New Capital
Investment
(IDR)
Euro
(Approx)
Tax Holiday
Rate
Tax
Holiday
Period
Min 30 Trillion 1.9 billion100%
20 years
15 Trillion - 30
Trillion
900million-
1.9 billion100% 15 years
17 eligible pioneer industries:
1. Basic metal industries;
2. Oil refinery industries ;
3. Petrochemical industries from oil, gas, or coal;
4. Basic an-organic chemicals
5. Basic an-organic chemicals from agriculture,
plantation, or forestry;
6. Basic material industry for pharmaceutical ;
7. Semi-conductor and other computer main
component industries;
I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 19
industry will have extensive linkages, add
value and high externality, introduce new
technologies, and has strategic value to the
national economy.
4. Compliance to the Indonesian capitalization
rules that is max 4:1 on debt-to-equity ratio,
according to Ministry of Finance Regulation
5 Trillion - 15
Trillion
300-900
million100% 10 years
1 trillion - 5
trillion
65-300
million100% 7 years
500 billion - 1
trillion
30-65
million100% 5 years
100 billion -
500 billion
6.5-30
million50% 5 years
Source: PMK No. 35/PMK.010/2018
component industries;
8. Main component industry for
telecommunication;
9. Main component industry for medical devices;
10. Machinery industries;
11. Machinery industries for automotive;
12. Main component industry for robotic;
13. Main component industry for marine
transportation;
14. Main component industry for airplane;
15. Main component industry for railway;
16. Electric Power Generation industries;
17. Economic infrastructure.
ONLINE SINGLE SUBMISSION (OSS) SYSTEM
OSS
B. EXISTING INVESTOR
Company
www.oss.go.id
A. NEW INVESTOR(New Registration)
(Re-registration)
I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 20
Obtaining NIB
(Nomor Induk Berusaha)
the single identity used in OSS
system
Individual
Starting on January 2, 2019
The Online Single Submission (OSS) consultation service was transferred to BKPM
Call Center: 0807 100 2576 and 1500765 (limited to 300 numbers per day)
Operational Hour: 08.00 AM - 04.00 PM
Retrieving the Queue Numbers starts from 07.30 AM - 02.00 PM
Where to invest?
21
W W W . B K P M . G O . I D
Since its inception in 2005,
first PPP project reach
financial close in 2016.
Thus the challenge is to
revive GCA to deliver
project to PPP scheme
PPP INFRASTRUCTURE IMPROVEMENT THROUGH 2005-2018… Change of Mindset toward PPP Scheme…
I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d
In 2018, there are 2 Operational + 11 under Construction PPP Projects
with total value of USD 8.9 Billion(One of those project has an investment value of USD 4.2 Billion)
AND ALSO
11 under Transaction + 18 under Preparation (OBC - FBC) PPP Projects
( USD 4.4 Billion)
22
Source: Bappenas, 2019
EXISTING & PROPOSED SEZ IN INDONESIA
SEZ SEI MANGKEI 2,022.77 Ha
Industry, Logistic,
Tourism
SEZ TANJUNG API-
API 2,030 Ha
Industry, Logistic,
Export Processing and
Energy
SEZ MBTK 557.34 Ha
Industry, Logistic dan
Export Processing
SEZ PALU1,500 Ha
Industry, Logistic dan
Export Processing
SEZ BITUNG534 Ha
Industry, Logistic dan
Export Processing
Existing SEZs Total Area:
16,085.72 Ha
Operation (4 SEZs)
Construction (8 SEZs)
Remarks:
New SEZ
development plan
2015-2019
West Kalimantan
North
Kalimantan
SEZ ARUN
I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 23
SEZ TANJUNG
LESUNG1,500 Ha
Tourism
SEZ TANJUNG
KELAYANG324.4 Ha
Tourism
SEZ MANDALIKA1,035.67 Ha
Tourism
SEZ MOROTAI1,101.76 Ha
Tourism, Industry, Export
Processing and Logistic
SEZ SORONG523.7 Ha
Industry, Export Processing and
Logistic
Merauke, Papua
South SulawesiEast Nusa Tenggara
Maluku
SEZ ARUN
LHOKSEUMAWE2.622,48 Ha
Export Processing,
Logistic, Industry,
Energy, and Tourism
GALANG BATANG SEZ2.333,6 ha
Export processing,
industry, logistic, and
energy
Investments in SEZ are excluded from Foreign Ownership
Limitation’s Regulation, unless its business field is reserved for
SME and cooperatives
TOP-10 TOURISM PRIORITY DESTINATIONS – NEW BALIS
LAKE TOBAArea : 1,849 Ha
Investment : USD 1.6 Billion
TANJUNG KELAYANGArea : 324.4 Ha
Investment : USD 1.4 Billion
BOROBUDURArea : 309 Ha
Investment : USD 1.5 Billion
WAKATOBIArea : 532 Ha
Investment : USD 1.5 Billion
MOROTAIArea : 1,101.76 Ha
Investment : USD 2.9 Billion
I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 24
TANJUNG LESUNGArea : 1,500 Ha
Investment : USD 4 Billion
KEP. SERIBU (Thousand
Island) & Kota Tua (Old
City)
Area : 1,009 Ha
Investment : USD 1.5 Billion
BROMO TENGGER
SEMERUArea : 325 Ha
Investment : USD 1.4 Billion
MANDALIKAArea : 1,175 Ha
Investment : USD 3 Billion
LABUAN BAJOArea : 400 Ha
Investment : USD 1.2 Billion
Tourism Special Economic Zone National Strategic Tourism ZoneTourism Authority 4 Super Priority
INDONESIA AIMS TO BE THE CENTER OF DIGITAL ECONOMY IN SE ASIA IN 2020
E-Commerce
Potential of Transaction in Indonesia:2013
US$8bnPlayers
2016
US$20bn
2020
US$130bn
Financial Technology (Fintech)
Transaction in Indonesia 2016
(projection)
Nominal of transaction per
population 2014
US$14.5bn
US$56.98Players
I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 25
On Demand Services
Internet users
in 2017
Mobile social users
in 2017
112.6mn
92.0mn
Players
Internet of Things (IOT)
Market opportunity in Asia Pacific
2015
US$250bn
Players
2020
US$583bn
Source: Ministry of Communication and Informatics RI, Tech in Asia, IDC, Daily Social, Bank Indonesia, Statista, Idea, World Bank
INVESTMENT IN INDONESIAN START-UPS REACHED US$4.93 BILLION IN 2017
US$2billion Investment from Softbank & Didi Chuxing
US$1.2billion Tencent is the largest investor
US$1.1billion Alibaba is the largest investor
US$0.5billion JD.com is one of the largest investors
0.1
Currently there are 4 start-
up unicorns from
Indonesia.
It is expected by end of 2019,
Indonesia will have 5 start-up
unicorn.
Currently there are 4 start-
up unicorns from
Indonesia.
It is expected by end of 2019,
Indonesia will have 5 start-up
unicorn.
I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 26
US$0.1billion Acquired by Grab
US$22millionIndonesian 4th unicorn, after Gojek,
Tokopedia and Traveloka
Source: Bisnis Indonesia, 2018 Unicorn Start up from Indonesia
- Rudiantara
Indonesia Minister of CIT
- Rudiantara
Indonesia Minister of CIT
REGIONAL INVESTMENT FORUM (RIF) 2019
RIF 2019 programs:
• Seminar
• Digital Start-ups Pitching Session
• Business Clinic
• One-on-One Meeting
• Exhibition
• Investment Lounge
High Level Speakers
I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 27
Focus Sectors:
• Tourism
• Industry
• Infrastructure
• Special Economic Zones
• Agro-Industry
Date: 11 MARCH 2019Register at: www.rif2019.id
IIIF 2019
INDONESIA
INFRASTRUCTURE
INVESTMENT
I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 28
INVESTMENT
FORUM
2019
ABOUT BKPM
BKPM or Indonesian Investment Coordinating Board:
• Government Agency, which in charge of
implementing policy and service
coordination in investment in accordance with the
provisions of the regulations.
• As the primary interface between business and
government, BKPM is mandated to boost domestic and
I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d 29
government, BKPM is mandated to boost domestic and
foreign direct investment through creating a
conducive investment climate.
BKPM Main Partners:
• All Ministries and Government Institutions of Indonesia.
• All State Owned Enterprises
• All Regional Governments of Indonesia
• Other stakeholders related to Indonesian Investment
ΕυχαριστώThank You
Indonesia Investment Promotion Centre (IIPC)
Landmark Barbican, 200 Aldersgate (South)
London EC1A 4HD, United Kingdom
T: +44(0)20 3440 3830
D: +44 (0)20 3440 3831
E: iipc.london@investinindonesia.uk
I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d
IIPC SINGAPORE
IIPC SEOUL
IIPC LONDON
IIPC TOKYO
IIPC SYDNEY
IIPC TAIPEI
IIPC NEW YORK
IIPC ABU DHABI
30
SOLICITED PPP PROJECT PIPELINE2 under operation project, 12 under construction projects, and 40 on progress projects
1. Manado - Bitung Toll
Road
2. Balikpapan - Samarinda
Toll Road
3. Pandaan - Malang Toll
1. Riau Non-Toll Road
2. Medan Municipal
Transport (LRT)
3. Patimban Port
4. Baubau Port
1. Yogya - Bawen Toll Road
2. Proving Ground BPLJSKPB
3. Jatibarang Waste to
Energy
4. National Integrated
Preliminary
studyOutline Business Case
(OBC)
Final Business Case
(FBC)PQ Request for
ProposalBid Award
PPP Agreement
SigningFinancial Close
Tender
Preparation
PLANNING PREPARATION TRANSACTION
CONSTRUCTION OPERATION
1. Makassar –
Parepare Railway1. South Sumatera
Non-Toll Road
2. Labuan Bajo Airport
3. Hang Nadim Airport
4. Sidoarjo General
1. Road and Bridge in
Central and Western
Sumatera Road Corridor
2. Bridges in Trans Java
Main Corridor
1. West Palapa
Ring
2. Central Palapa
Ring
I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d
TOTAL: USD 159.1M TOTAL: USD 159.1M TOTAL: USD 8,802MTOTAL: USD 8,802M
31
TOTAL: USD 2,786 M + 11 Projects Under Calculation TOTAL: USD 4,400 MTOTAL: USD 4,400 M
3. Pandaan - Malang Toll
Road
4. Batang - Semarang Toll
Road
5. Serpong - Balaraja Toll
Road
6. Cisumdawu Toll Road
7. Serang -Panimbang Toll
Road
8. Umbulan Water Supply
9. Bandar Lampung Water
Supply
10. Nambo Regional Waste
Management
11. Central Java Power Plant
12. East Palapa Ring
4. Baubau Port
5. Pekanbaru Regional
Water Supply
6. Legok Nangka Regional
Waste Treatment
7. University of Sam
Ratulangi Teaching
Hospital
8. Pirngadi Hospital
9. Indonesia National
Cancer Center Dharmais
Hospital
10. Surakarta Street Lighting
4. National Integrated
Welfare System
5. Relocation of Salemba
correctional facility to
Ciangir
6. Ciputat Market
7. Bintuni Industrial Zone
8. Motor Vehicle Weighing
Implementation Unit
(UPPKB)
9. Institut Teknologi
Bandung’s Cirebon
Campus Development
TOTAL: USD 3,196 M + 10 Projects Under Calculation TOTAL: USD 4,727 MTOTAL: USD 4,727 M
Included in PPP Book 2018
National Strategic Project (PSN)
4. Sidoarjo General
Hospital
5. Gorontalo Hospital
Main Corridor
3. West Papua Crossing
Port
4. Anggrek Port
5. LRT Semarang
6. Kamijoro Water Supply
7. Piyungan Sanitary
Landfill
8. Zainoel Abidin Regional
Hospital
9. Jogja Agro Techno Park
10. Tanjung Adikarto
Fishery Zone
1. Jakarta -
Cikampek South
Toll Road
2. Probowangi Toll
Road
3. West Semarang
Water Supply
1. Semarang – Demak Toll Road
2. Multifunction Satellite
Source: Bappenas, 2019
UNSOLICITED* PPP PROJECT PIPELINE2 under construction projects and 11 on progress projects
.
Financial Close
Construction
2 Toll Road Projects
1. Krian-Legundi-Bunder-Manyar
(US$ 0.9 billion)
2.2 Billion USD
Construction
1. Jatiluhur I Water Supply
(US$ 142.2 million)1. Tanjung Jabung Bridge (US$
13.5 million)
2. Karian Water Supply (under
Project proponent submitsa proposal and pre-FSdocument to GCA
Pre-FS document evaluationto get pre-FS approval
Business Entitysubmits FS FS evaluation
Procurement
PPPAgreement
Signing
Issuing approval letter
1. TOD Poris Plawad
(US$ 125.9 million)
1. Semanan – Balaraja Toll Road
2. Kamal – Teluknaga – Rajeg Toll
Road
I n d o n e s i a I n v e s t m e n t C o o r d i n a t i n g B o a r d
(US$ 0.9 billion)
2. Jakarta – Cikampek Elevated II
(US$ 1.3 billion)
2. Karian Water Supply (under
calculation)
3. Marine Observation and
Modeling (US$ 95.9 million)
Source: Bappenas, 2019
Technically integrated with the sector’s master plan
Economically and financially viable
The business entity that proposes the initiative has adequate financial capability to finance the project.
Evaluation Criteria:
*The unsolicited project is when the project is initiated by the private sector
Include in PPP Book 2018
National Strategic Project (PSN)
Road
3. Patimban Port Access Toll
Road
4. Gedebage – Tasikmalaya –
Cilacap Toll Road
5. Balikpapan – Penajam Paser
Utara Toll Bridge
6. Solo – Yogyakarta – NYIA
Kulon Progo Toll Road
Total: US$ 2,891 million
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