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Transcript of OPTIMISTIC INDONESIA
RECENT WORLDWIDE ACCLAIMPrudent fiscal policiesWorld Bank 2014Remains an excellent opportunity for investmentMcKinsey An economy driven by domestic consumptionStandard Chartered Bank Economic AnalystMost optimistic middle class in the world NielsenSteady economic growth in climate of political stability Bain & Company
254,000,000 Population(estimated June 2014)74,000,000 Middle ClassUS$3,234 Per Capita Income92.8 % Literacy
5.8% GDP Growth 201310 Largest Economy3 In Asia(World Bank)Moodys Indonesias sovereign rating :stable, external pressures manageable
Ranking in Global Competitiveness Index: Indonesia moved from 74th in 2005 to 38th in 2013US$2,058 Billion GDP3-5% Inflation
53% Urban Population produce74% of GDP
25 Cities home to at least 500,000 Middle Class55Million Skilled Workers0.5 Trillion market opportunityIn consumer serviced, agriculture & fisheries,resources and educationHome to 15 million Cars67 MILLION MotorcyclesCars: 5.5 MILLIONMotorcycles: 8.5 MILLIONJakarta vehicle numbers: 14 millionJakarta Total Road 7650 Km2 Meters per Car, if all came out same timeits 11,000 KmWorld bank
99% Own mobile phones250 Million (Sept 2013)Nobody is Working! Indonesian spent 181 minutes per day on smartphonesHighest in the World
36 MILLION Internet Users
Over the next 15 years, Indonesia will gain 80 million new consumers, accounting for 40% of the new consumers in the Association of Southeast Asian Nations (Asean) over that period.1
Estimates by the Brookings Institution indicate that Indonesia will become the fourth-largest middle-class country by 2030, behind India, China and the US.
Indonesias high consumer confidence scores consistently top and Indonesians typically report household budget flexibility that far exceeds the global average.Nielsen Global Rankings)
Modern retail sales in urban areas across Indonesia are expected to grow an average of 7.3 percent/year during 2012 to 2017 (Euromonitor).
46%of the products were categorized as premium, 32 percent were mainstream, and 22 percent were value-oriented.(Nielsen study on 13 fmcgs)
About 60 percent of the products that make up the super-premium basket are discretionary items in categories such as chocolates, biscuits and moisturizing creams.(Nielsen Global Rankings)Indonesian Shopping Basket
Companies will look to launch more high-end brand variants to cater to demand among upper-income consumers (whose purchasing power is likely to remain strong even in the midst of a weak economic environment) and ensure healthy profits.
Many companies will offer products in smaller packaging sizes in order to be able to offer more affordable prices aiming to expand their consumer bases to reach more price-sensitive consumers from lower to middle income groups.
Regional Economic GrowthECONOMIC GEOGRAPHY17,000 Islands1,904,569 sq km5,271 km Length (N-S)2,210Km Breadth (E-W)673 AirportsMaluku dan Papua2,6%Bali dan Nusa Tenggara5,5%Jawa57,49%21,31%Sumatera5,8%Kalimantan7,31%Sulawesi20Sumber: SP 2010Population Distribution
Population Indonesia by age. Median age 26.2
The majority of fastest growing cities are outside Java.22
Indonesia's Population is Growing and Becoming More Affluent
Tourist Arrivals 8.5 million(2014 Estimate)
Projected to be top in region in Internet usage
Indonesias retail landscape is still dominated by traditional trade and small-format outlets
Dollar flies high
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