DOING BUSINESS IN INDONESIA CHANCES AND CHALLENGES

BEST PRACTICE EXAMPLE

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Karl-Otto UeberbachVP BOMAG SingaporeWednesday, April 17th, 12:20-12:40; Munich, DE

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Where to start?

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• Basic data• Chances• Challenges• Example BOMAG• Contacts

Doing Business in INDONESIA

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•Basic data•Chances•Challenges•Example BOMAG•Contacts

Germany / Indonesia

Germany / Indonesia

Distance and Time

Distance: 11.100 km (FRA - CGK)Time difference: 5/6 h

Size compared to Europe

1.9 mil sqkm = # 15 in the world(5.3 times DE)North to South ~ 1,800 kmWest to East: ~ 5,000 km

Population: ~250 mil = # 4 in the world(~3.0 times DE / 1/3 of EU)

Urbanization: 44%

Indonesia: Part of ASEAN

ASEAN:Association of SEA NationsHQ in Jakarta, founded 1967Today 10 SEA Nations; ~ 600 mio people

Indonesia: Part of ASEAN-CHINA FTA

ASEAN-CHINA FTASigned 2002Effective since Jan. 2010~ 1.8 bn people

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•Basic data•Chances•Challenges•Example BOMAG

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Growth Potential…

Source: www.timetrix.com

Mining …

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Palm Oil Industry ..

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Infrastructure ….

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Chances for all …

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•Basic data•Chances•Challenges•Example BOMAG•Contacts

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• Distance: 11.000km

• Size of country: 1.9 mil sqkm

• Language: Indonesian (Bahasa Indonesia)English for overseas

business

• Culture: Multitude of religionsIslam, Christianity, Hinduism, Buddhism

• Currency: IDR

Challenges

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1 EUR = 12 466 IDR(09/04/2013)

Exchange rates ….

1 USD = 9 739 IDR(09/04/2013)

FX rates over 10 yrs

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•Basic data•Chances•Challenges•Example BOMAG•Contacts

BOMAG in Indonesia

Since 1972 with one partner only: !

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BOMAG in Indonesia

BOMAG in Indonesia

40 Years anniversary in 2012

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•Basic data•Chances•Challenges•Example BOMAG•Contacts

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