HOW TO · The solid growth of F&B sector is supported by Indonesia's improving purchasing power...
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HOW TO Prepared by: Sri Kumala CHANDRA EU Outreach Manager
Transcript of HOW TO · The solid growth of F&B sector is supported by Indonesia's improving purchasing power...
HOW TO Prepared by:
Sri Kumala CHANDRAEU Outreach Manager
EIBN is a partnership project between 5 European bilateralchambers of commerce in Indonesia and 2 counterparts inEurope
Initiated and co-funded by the EU
Launched in August 2013
BritCham, EKONID,IFCCI, INA, EuroCham
EUROCHAMBRES CCI Barcelona EEN
Attracting EU businesses into Indonesia and supporting them intheir market entry activities; Increasing EU Business’ leveragetowards the Indonesian Governments.
The projects
Increase and improve export and investment of EU businesses tothe Indonesian market.Objectives
European businesses in Europe, in particular SMEs, with an interestin Indonesian market. Existing European companies in Indonesiawhich need to increase their presence and visibility.
Target group
Joint expertise, knowledge and experience of well-establishedEuropean business support organizations with an extensivenetwork in ASEAN, especially Indonesia and the EU.
Expertise
EIBN
2000+ EU BSOs
KADIN &
APINDOEU Member States’
embassies
ASEAN stake-
holders
Project Partners in
ASEAN countries
Our Network
Trade promotion agencies
EU BSOs
BKPM
Availability of more comprehensive information on Indonesian & ASEAN market
More systematic and consolidated business support for companies from all EU28 member
states
Platform for exchange among EU companies increased visibility and leverage towards the
Indonesian and ASEAN governments
Platform for
Knowledge & Information sharing
Best-practiseexchange
Capacity building
EIBN
Infor-mation
Business Support
Pan-European
Thriving on Synergies
Indonesia at Glance
World’s Most Populous Country
4th 17,508islandsBiggest Archipelagic Nation
10thWorld’s Largest Economy
I N D O N E S I A
255,9 millionPopulation (in 2015)
G20 Member State after India and
China
3th fastest growing 2,8 trillionUSD GDP (PPP)
11,100USD GDP per capita (PPP)
Worlds Largest Archipelago
• 3.1 million km2 of sea
• 1.9 million km2 of land
• Hub for international trade since the 7th century
Sustained GDP growth
Stable inflation rates 255 million inhabitants 10th largest economy in the world
4.7 % GDP Growth in 2015 Sustained high growth rates
Macroeconomic data
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Real GDP Growth (%)
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Inflation (%)
… that will grow even further
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Population development prediction (in million inhabitants)
Consuming class
Below Consumingclass
Consuming class defined as persons with a real net monthly income of US$ 300 or above
135 million people
Macroeconomic data (II)
Structure of the Indonesian economy (2015)
Household Consumption Expenditure
39%
Non-profit Institution Serving Household
Consumption Expenditure1%
Government Consumption Expenditure
7%
Gross Domestic Fixed Capital Formation
23%
Change in Inventory1%
Exports of Goods and Services
15%
Imports of Goods and Services
14%
Large domestic consumer
base =
Locomotive and guarantor of GDP growth
Economic activity by region
• Since 1998 thriving and stable democracy
• Newly elected President: Joko Widodo
Joko WidodoGovernor of Jakarta 2012 – 2014President 2014-2019
Stable Political environment
Political Party 34%
Professional66%
CABINET
Sustained growth ratesMacroeconomic and
politically stable environment
Large & growing domestic consumption
base
Key member
ASEAN
Indonesia
Source: Ministry of Industry, Facts & Figure 2016
Agriculture, Livestock, Forestry, and Fishery
13.52%
Services10%
Financial, Ownership, & Business Service
8.54%
Transport & Communication
8.55%
Trade, Hotel & Restaurant
16.25%
Construction10.34%
Electricity, Gas, and Water Supply
1.21%
Manufacturing Industry20.84%
Mining & Quarrying7.62%
Structure of GDP by Sector in 2015
Source: Ministry of Industry Republic of Indonesia. Industry Facts & Figures.
MANUFACTURING
Source: Ministry of Industry Republic of Indonesia. Industry Facts & Figures.
CHEMICALWorld’s Certified Palm Oil (CPO) Producer
st
World’s Rubber Producer
2nd
The import of basic chemicals from 2010 to 2014 has increased by 23.90%,contributing 4.74% to total imports. Chemicals such as; polymer products with2.45%, polyethylene with 0.94%, and polypropylene with 0.81% are imported inenormous quantities to meet the requirements of major industries in Indonesia
Petrochemical
Industry
Demand growing by
approximately 2% per year
Plastic Industry
Plastic Products predicted to
grow by 6% in 2016 (4.65
million tonnes) , with 10% rise on
the price
Pharmaceutical
Industry
High demand chemicals by the
Indonesian pharmaceutical
industry are: Acetic Anhydride, Methylchloride,
Methylamine and Recorcinol
FOOD & BEVERAGE
The mass grocery retail value sales’ grow at more than 10% per year (outlet shift to modern markets).
Highest business potentials: halal products, branded and specialty food products, food processing machinery,supply of food ingredients and packaging.
Indonesia’s growing middle class and high-income group have represented an increasingly discerning and demanding consumer base, eager to try new and innovative food and beverages products
The F&B sector’s output has contributed to more than 5.5% of total GDP, as well as 31% of the total industrial
manufacturing output .
The solid growth of F&B sector is supported by Indonesia's improving purchasing power amid the accelerating
economy and higher commodity prices, and growing output of the nation's processed food and beverage industry.
The turnover of the F&B industry has been growing 7.55% to a total nearly of US$30.3 billion in Q1 2016
Tourism in Indonesia has contributed 4.23% of total foreign investment in 2015. And it is projected to rise by 8% by
2019.
The Food & Beverage sector is estimated to encompass over 6,000 companies, of which approximately 90% are classified as large or medium sized. The players are dominated by the
presence of large local companies, but also important international and foreign companies
5248
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2010
2011
2012
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Number of Large and Medium companies in F&B Manufacturing
Beverage Food
Among the leading packaged food players in Indonesia, Indofood, Nestle Indonesia, Heinz ABC Indonesia and Unilever Indonesia has the strongest market share. In beverage, Danone
Aqua held on firmly to its leadership within soft drinks with 47.5% of market share
Packaged Food Breakdown Non-Alcoholic Beverage Breakdown
Source: Roy Morgan Research, 2012Source: USDA, Economic Research Service Calculations using EuroMonitor Data, 2012
Highest business potentials: halal products, branded and specialty food & beverages products, food processing machinery, supply of food ingredients and packaging.
BUILDINGThe construction sector's contribution to gross domestic product (GDP) of the country has grown
from about 7.07% in 2009 to 10.34% in 2015.
Green Building
National commitmentto reduce carbon emissions by 26% in 2020
• Growing urban population and increase of people life-style standards rapid construction growth: 7-8%
• Only one pilot green building code applied in Greater Jakarta, more cities are developing to the same goal.
• The highest potential: energy efficiency, water efficiency, indoor air quality, land and waste management
Souce: The Council on Tall Buildings and Urban Habitat (CTBUH),
Retails 590 Shopping malls in IndonesiaOffices
Hospital
Rising Health Spending & Government Sponsored for
Universal Healthcare
Medical Real Estate
Industrial Estate
Part of Government Plan in Master Plan of National Industry Development
Hotel
Indonesia is the fastest growing mobile telephone market in the Asia-Pacific region, predicted to reach 391
million mobile accounts in 2015. The market is dominated by three major mobile telecommunication providers,
Telkomsel, Indosat and Xl Axiata; 95% of mobile users are prepaid subscribers.
Thank you for your attention!
