I N V E S T I N INDONESIA - IABCiabc.or.id/download/CONFERENCE2015/HimawanHariyoga.pdf · invest in...

invest in

Indonesia-Australia Business Conference | Yogyakarta, 17 November 2015

I N V E S T I NINDONESIAIndonesia Investment Climate and How to Approach the Indonesian Market

INDONESIA INVESTMENT COORDINATING BOARD

© 201 by Indonesia Investment Coordinating Board. All rights reserved

HIMAWAN HARIYOGA

Deputy Chairman of Investment Promotion

IndonesiaInvestment Coordinating Board

2

1

2

3

2015 2016 2017 2018 2019

FDI 343.7 386.4 429.0 494.7 569.9

DDI 175.8 208.4 249.8 297.8 363.0

Total 519.5 594.8 678.8 792.5 933.0

Growth 12.2% 14.5% 14.1% 16.8% 17.7%

(IDR trillion) Excl. Financial Sectors and Upstream Oil and Gas

Strategic Plan of Investment 2015-2019

Investment Target

Summary

2010-2014 Period (Completed)

• Investment realisation: IDR 1,633 trillion

• Investment plan (Principal license stock 2010 - April 2015): IDR 4,125 trillion.

2015-2019 Period (Plan)

• Investment realisation: IDR 3,519 trillion

• By using assumption that 50% of investment plan will be realized, Indonesia investment plan needs is IDR 7,000 trillion, therefore we still need principal license stock for IDR 3,000 trillion.

total investment targetedin 2015-2019

115% increasefrom 2010-2014 period(IDR 1,632.8 trillion)

63.2 % average shareof total investment target in 2015-2019

FDI2015-2019

DDI2015-2019

IDR 3,519 trillion

36.8 % average shareof total investment targetIn 2015-2019

15.1%targeted in 2015-2019 period

average growth

Source: BKPM, 2015


3

19,7% 24,1% 23,5% 21,8% 19,8%

26,3%39,7%

49,7%

50,4%

42,9%

54,0%

36,3%

26,7%

27,8%

37,3%

0,0

100,0

200,0

300,0

400,0

500,0

600,0

700,0

800,0

900,0

1000,0

2015 2016 2017 2018 2019

Inve

stm

en

t R

eal

izat

ion

(Tri

llio

n R

up

iah

)

67,1% 58,9% 56,1% 57,8% 56,9%

32,9%41,1%

43,9%

42,2%

43,1%

0,0

100,0

200,0

300,0

400,0

500,0

600,0

700,0

800,0

900,0

1000,0

2015 2016 2017 2018 2019

Inve

stm

en

t R

eal

izat

ion

(Tri

llio

n R

up

iah

)

Strategic Plan of Investment 2015-2019

Investment Target

Average SharePrimary : 15,7%Secondary: 53,5%Tertiary : 30,8%

by Sector by RegionAverage ShareJava : 46,5%Outside Java : 53,5%


4

Infrastructure35 GW power

generation24 Sea ports

Agriculture Food estate Corn Plantation Cattle

Industry

Labor-intensiveindustry

Textile Food & Beverages Furniture Toys

Import-substitution industry

Chemical & Pharmaceutical

Iron & Steel

Export-oriented industry

ElectronicsCPO & derivative

products

Woodproducts, pulp

& paperAutomotive

Machinery Rubber productsFish &

derivative products

Shrimp

Downstream industry of natural resources

Cacao Sugar Smelter

Maritime Ship building Fishery Industry Cold storage

Tourism,SEZ & Industrial ParkStrategic

tourism areasMICE 8+11 SEZs

15 New Ind. Parks

InvestmentOpportunities in Indonesia 2015-2019

Investment Priority Sectors


5

58

91

126

74

20

370

34 60

137

67

12

311

Africa America Asia-Pacific Europe Middle East World Total

2014(S1)

2014(S2)

2015(S1)

Source: fdimarkets.com dari Financial Times, 2015.

Foreign Direct Investment Inflow

Global Investment Trend 2015(Jan-Sep)FDI Inflow (USD billion)

+18%FDI growth (y-o-y) in 2015(Jan-Sep)

in Asia-Pacific

44%Portion of global FDI

flowed into Asia-Pacific, 2015(Jan-Sep)


6

Foreign Direct Investment Inflow

Investment in Southeast Asia 2015(Jan-Sep)

Source: fdimarkets.com dari Financial Times, 2015.

CountryPortion

2015(Jan-Sep)

Growth(Y-o-Y)

Indonesia 28% 98%

Vietnam 20% 31%

Myanmar 13% 194%

Malaysia 11% -43%

Singapore 8% -29%

Thailand 8% 51%

Philippines 6% -21%

Cambodia 4% 144%

Laos 2% 104%

Brunei 0% -49%

Total ASEAN

100% 24%

Indonesia28% portion, 98%

Singapore8% portion, 29%

Malaysia11% portion, 43%

Phillippines6% portion,21%

Vietnam20% portion, 31%

Thailand8% portion, 51%

Myanmar13% portion, 194%

36%

Portion of FDI in Asia-Pacific flowed into

Southeast Asia


7


8


9


10Source: BKPM, 2015.

FDI Realization in Indonesia by Country

Australia ranked 11th in 2010 – Q3 2015FDI Realization in Indonesia by Origin CountryTop-10 Countries Based on Total Capital Expenditure (USD million) 2010 – Q3 2015 Excl. oil, gas, and financial sectors

Rank Country 2010 2011 2012 2013 2014 Jan- Sep 2015 Total

1 Singapore 5,565 5,123 4,856 4,671 5,832 3,551 29,599

2 Japan 713 1,516 2,457 4,713 2,705 2,495 14,599

3 USA 931 1,488 1,238 2,436 1,300 854 8,246

4 South Korea 329 1,219 1,950 2,205 1,127 1,003 7,832

5 Malaysia 472 618 530 711 1,776 2,917 7,025

6 Netherland 608 1,354 967 928 1,726 908 6,492

7 British Virgin Islands 1,616 517 856 786 624 671 5,069

8 United Kingdom 276 419 934 1,076 1,588 444 4,738

9 Mauritius 23 73 1,059 780 541 34 2,509

10 Hong Kong 566 135 310 376 657 417 2,461

Total 10 Countries 11,099 12,462 15,156 18,682 17,876 13,294 88,569

11 Australia 214 90 744 226 647 105 2,026

12 China 174 128 141 297 800 406 1,946

Total (113 Countries) 16,215 19,475 24,565 28,618 28,530 21,337 138,738


11

Rank Business Field 2010 2011 2012 2013 2014 Jan - Sep 2015 Total

1 Mining 19 30 89 59 580 66 843

2Basic Chemical, Chemicals and Pharmacy

181 - 572 81 - - 834

3Basic Metals, Metals, Machinery & Electronics

- 30 25 22 5 9 91

4 Electricity, Gas and Water - - 30 31 24 4 89

5 Other Services 7 2 3 13 11 6 42

6 Other Sectors 5 24 12 18 22 16 97

TOTAL 214 90 744 226 647 105 2,026

Total 2010-Q3 2015Plan: USD 7,651 millionRealization: USD 2,026 millionWorkforce: 51,458 people

Investment Performance

Australia’s FDI Realization by SectorBased on Capex (USD million) in 2010 – Q3 2015, not including financial, oil & gas sectors

Group of sectors

Compared to Jan-Sep 2014, total FDI realization from

Australia is declining from

USD 469.2 million to USD 105 million

Secondary47%

Primary42%

Tertiary11%

476862

321

2.586

3.204

201214 90

744

226

647

1050

500

1000

1500

2000

2500

3000

3500

2010 2011 2012 2013 2014 Q3 2015

Plan Realization


12

Rank Economic Corridor 2010 2011 2012 2013 2014 Jan- Sep 2015 Total

1 Kalimantan 193 29 531 36 579 50 1,418

2 Java 8 39 156 109 22 21 355

3 Sulawesi 7 0 30 32 18 4 91

4Bali & Nusa Tenggara

6 11 21 18 16 10 82

5 Maluku 0 8 2 27 5 6 48

6 Sumatera 1 3 3 1 7 7 21

7 Papua 0 0 0 4 0 7 11

TOTAL 214 90 744 226 647 105 2,026

Source: BKPM, 2015.

Jakarta

Investment Performance

Australia’s FDI Realization by LocationBased on Capex (USD million) in 2010 –Q3 2015,

not including financial, oil & gas sectors


13


14


15

NO. Priority Sector

Serious Interest Prospective Total

#of

companyUSD Mil P USD Mil P USD Mil P USD Mil

1 Infrastructure 3 690 1 500 0 0 4 1.190

2 Agriculture 3 50 2 57 1 0 6 107

3 Labor Intensive Industry 2 60 2 3 0 0 4 63

4Import Substitution

Industry2 35 0 0 0 0 2 35

5 Export Orientation Industry 0 0 0 0 0 0 0 0

6Downstream Mineral

Resources1 0 0 0 0 0 1 0

7 Maritime 2 150 2 0 1 0 5 150

8 Tourism & Economic Zones 0 0 0 0 0 0 0 0

9 Others 9 71 1 0 0 0 10 71

TOTAL 22 1.056 8 560 2 0 32 1.616

Investment Interest Progress: Australia

(Period : October 22, 2014 -November 13, 2015)


16

Indonesia’s Economic Performance

Reviews

Indonesia

AmCham & USCC:

75% US companies plan to expand

AmCham & USCC:

84% US companies expect profit

increase in 2016

JBIC:2nd Most

Promising Country for Overseas

Business

Moody’s, Fitch, Japan Credit

Rating:Investment

Grade

UNCTAD:

The Highest FDI

Growth in Southeast Asia,

2014

The Economist: 2nd

Investment Priority

in Asia

ANZ Survey: Attractive

as an Investment Destination


17

Establishing OSS at BKPM & Simplification of Licensing:

Providing Faster, Simpler, Transparent & Integrated licensing

Formation of Marketing Team

Adoption of a new marketing and facilitation approach

Improvements of investment regulatory framework & climate

Including provide more attractive incentives & facilities for investors

1

2

3

Doing Business in the New Administration Era

BKPM’s End to End Services


18

Doing Business in the New Administration Era One Stop ServicesInvestors submit and obtain permits exclusively at BKPM with time certainty & online monitoring.


19

BKPM Priorities: Improvements of Licensing

Progress of Investment One-Stop Service

*) Period of January – September 2015.

Progress of Licensing Simplification


20


21

Investment Interest

Investment Permit

Investment Realization

Investment Marketing

Team

IIPC Sydney

Investment Debottle-necking

Investment Service

End-to-End Service for Investors

Indonesia Investment Promotion Centre (IIPC)

Investment One Stop Service

Investment Controlling

Sydney


22

BKPM Priorities: Debottlenecking of Investment Realization

Progress of Debottlenecking Obstacles faced by 24 out of 88 companies are solved as of 16 Oct 2015, with investment valued at USD 8.4 billion out of USD 35.6 billion.

4816

Main Issues• land acquisitions, • misuse of permits, • supply of raw materials, • cooperation contracts, • tax regulation.

Source: BKPM, 16 Oct 2015

Sector Value Problems

Mining - UndergorundCoal Gasificationregulation is not clear

Basic Chemicals IDR 1.596 Billion Building permit has not released yet.

Debottlenecking Australian Companies


23

TAX HOLIDAY TAX ALLOWANCE

IMPORT DUTY FACILITY

(Government Regulation No.18/2015) (MoF Regulation No.176/PMK.011/2009)(MoF Regulation No.159/PMK.010/2015)

143business segmentsEligible for tax allowance, expanded from 129 segments in the previous regulation.

30% of investment valueReduction of corporate net income tax for 6 years, 5% each year.

Under certain requirements among others: investment value or export orientation, manpower absorption, local content, and project location (especially outside Java island).

5-15years tax exemption

With potential 20 years exemption for project that considered strategic for Indonesia economy.

9 eligible pioneer industries : 1. Basic metal industries;2. Oil refinery industries and/or basic

organic chemicals;3. Machinery industries;4. Industries of renewable resources;5. Communication devices industries.6. Agricultural processing7. Marine transportation8. Manufacturing industry in SEZ9. Economic infrastructures

IDR1trillionMinimum investment plan(USD80 million).

2 years import duty exemption or 4 years for companies using locally-produced machines (min.30%).

Machines, goods, materials for production

Which produces goods and/or services, including:

1. Tourism and culture 2. Public transportation 3. Public health services 4. Mining 5. Construction 6. Telecommunication 7. Port

Industries


24

Negative Investment List(Presidential Regulation No.39 /2014)

CLOSED

OPEN with

conditions

OPEN

Certain business fields may conduct investment activities

under certain requirements, such as:• Partnership with local partner, • Capital ownership, • Location and • Special permits.

Any investment activities are

closed for certain business fields producing goods/services that: • Prohibited by Indonesian law, • Dangerous, • Polluting, • Strategic for national security

and/or heritage.

7business sectorsOpened for FDI in 2014 revision.

More open business fields• Provision of port facility (pier,

building, container delay terminal, liquid bulk terminal, dry bulk terminal and Ro-Ro terminal).

• Terminals construction.

• Power plant > 10MW, electric power transmission and electricity distribution.

• Pharmaceutical industry.

• Advertising.

58business sectorsMore opened for FDI in 2014 revision.


25

WageFormulation

More certain formula for business. Annual increase based on

inflation rate & economic growth.

Investment Climate

Economic Policy Packages

TaxIncentives

Free VAT for shipbuilding, railway & airplane industries. No

double taxation for property &

infrastructure.

CostReduction

Gas and electricity price reduction for

industry.

DeregulationReview on 134

regulation in 16 areas with a spirit of pro-

investment.


26

Investment Climate

Economic Stimulus for Special Economic Zones

TaxIncentives

20-100% tax discounts for period up to 25 years. Free VAT for importation of raw

materials.

FacilitiesProperty ownership & residence permit for

foreigners.Ease of investment, land, immigration &

working permits integrated at SEZs.

Sei MangkeiPalm Oil, Rubber, Fertilizer Industries,Logistics, Tourism

Tanjung Api-apiPalm Oil, Rubber,

Petrochemical Industries

Tanjung LesungTourism

MandalikaTourism

Maloy BatutaPalm Oil, Coal,

Mineral Industries

BitungFishery & Agro

Industries, Logistics

PaluSmelters, Agro Industry,Logistics

MorotaiTourism, ManufacturingIndustry, Logistics


27

www.bkpm.go.idContact UsContact US

Embassy of the Republic of Indonesia in Canberra

8 Darwin Avenue, Yarralumla. ACT 2600Phone : +61 2 6250 8600

Indonesia Investment Promotion Centre (IIPC) Sydney

Gold Field House 1 Alfred Street Suite 903 Sydney NSW 2000Tel. +61 2 9252 0091Fax. +61 2 9252 0092Director : Ms. Sri MoertiningroemE-mail : [email protected]

Investment Marketing Executive for Australia

BKPMJln. Jend. Gatot Subroto No. 44, Jakarta Selatan 12190Phone : +62-21 526 2008Mr. Ikmal Lukman ([email protected] / [email protected])Mr. Heldy Satrya Putera ([email protected] / [email protected])

Consulate General of the Republic of Indonesia in Sydney

236-238 Maroubra Road, Maroubra, Sydney NSW 2035, AustraliaPhone : (61-2) 934-49933E: [email protected]

Consulate General of the Republic of Indonesia in Melbourne

72 Queens Road, Melbourne, Vic 3004 – Australia(Entrance from 72 Queens Lane)Phone : +61 3 9525 2755E: [email protected]

Consulate General of the Republic of Indonesia in Perth

134 Adelaide TerracePO Box 6683, East Perth, WA, 6892, AustraliaPhone : (61-8) 9221 5858E: [email protected]

Consulate General of the Republic of Indonesia in Darwin20 Harry Chan Avenue - Darwin N.T. 0800, GPO BOX 1953, Darwin N.T. 0801.Phone : +61 (08) 8943 0200E: [email protected]

The Investment Coordinating Board of the Republic of Indonesia

28

Badan Koordinasi Penanaman Modal (BKPM)

Indonesia Investment Coordinating Board

Jln. Jend. Gatot Subroto No. 44Jakarta 12190 - Indonesia

t . +62 21 525 2008

f . +62 21 525 4945

e . [email protected]

www.bkpm.go.id

Thank You

Terima Kasih


29

Australia’s Investment to the world2010 – 2015 (Jan-Sep)

Investment RealizationBased on Capital Expenditure (USD Million) Excl. financial sectors

Source: Financial Times, 2015

Rank Destination Capex %

1 United States 6,370 12.1

2 China 5,060 9.6

3 UK 3,783 7.2

4 Malaysia 3,186 6.1

5 Brazil 2,961 5.6

6 Chile 2,564 4.9

7 Papua New Guinea 2,137 4.1

8 South Africa 1,988 3.8

9 Peru 1,792 3.4

10 Singapore 1,661 3.2

Total Top-10 Countries 31,507 59.9

12 Poland 1,534 2.9

13 Indonesia 1,390 2.9

14 Colombia 1,320 2.6

Total (77 countries) 52,587.6 100%

Rank Company Capex %

1 Goodman Group 12,068 22.9

2 BHP Billiton 5,241 10.0

3 Lend Lease 2,508 4.8

4 InterOil 2,095 4.0

5Intra Energy (Atomic Resources)

1,094 2.1

6 Servcorp 882 1.7

7 Incitec Pivot 850 1.6

8 Telstra 758 1.4

9Gold One International

730 1.4

10 Admiralty Resources 725 1.4

Total Top-10 Companies 26,957 51.3

Total (535 Companies) 52,587 100%

10.192

11.618

7.475

8.19610.163

4.944

881 460314

1.026

4.030

407

2010 2011 2012 2013 2014 (Jan - Sep)2015

World ASEAN

Real Estate32%

Metals16%Coal, Oil,

& Natural Gas16%

Business Services

8%

Chemicals5%

Others23%

I N V E S T I N INDONESIA - IABCiabc.or.id/download/CONFERENCE2015/HimawanHariyoga.pdf · invest in...

Documents

Transcript of I N V E S T I N INDONESIA - IABCiabc.or.id/download/CONFERENCE2015/HimawanHariyoga.pdf · invest in...