Transcript The Consulate General of the Republic of Indonesia Hong Kong

The Consulate General of the Republic of Indonesia
Hong Kong
Indonesia Today:
Economic, Trade and Tourism
Basic Fact
• Area (km2):
 Land
: 1,826,440
 Water
:
93,000
 Total
: 1,919,440
 17,000 islands
• Population: 230 million
 316 ethnic group : Javanese 40.6%, Sundanese 15%, Madurese 3.3%,
Minangkabau 2.7%, Betawi 2.4%, Bugis 2.4%
 Muslim 86.1%, Protestant 5.7%, Roman Catholic 3%, Hindu 1.8%, other
or unspecified 3.4%
• Employment (Feb 2007):
 Labour Force
 Working
 Unemployment
Source: Bank Indonesia and CLSA
:108 131 058
: 97 583 141
: 10 547 917 (9.75%)
Economic Indicators
• GDP (Q2-2007)
 Constant 2000 prices by sector Rp 486,483.30 billion (HK$ 419.38
million)
 Current prices by sector Rp 962,501.70 (HK$ 829.74 million)
 GDP growth: 6.0%
 Per capita GDP US$ 1,176
• GNP (Q2-2007) : Rp 933,208.70 billion (HK$ 804.4 million)
• BoP : US$ 4,415 million
• Foreign Currency Reserves (31 Oct.2007) : US$ 51,900.98 million
Source: Bank Indonesia
Foreign Trade Value
• Export value (Jan-Sept 2007) : US$ 83.02 billion
(yoy 12.88%)

Export (Sept. 2007): US$ 9.52 billion (yoy +7.63%)

Non-oil &gas export (Jan-Sept. 2007): US$ 67.65 billion
 Non-oil & gas export (Sept. 2007): US$ 7.54 billion (the biggest
export is nickel: US$ 65.5 million)
 Main destinations (non-oil & gas): Sept. 2007
- Japan
- US
- Singapore
- EU ( 25 countries )
Source: Statistics Indonesia (BPS)
:
:
:
:
US$
US$
US$
US$
1.06 billion
1.03 billion
903.2 million
933.6 million
Foreign Trade Value (cont’d)
• Import Value (Jan-Sept.2007): US$ 53.67 billion
(yoy 17.43%)
Import (Sept. 2007) : US$ 6.76 billion
Non- oil & gas import (Jan-Sept. 2007) : US$ 38.51 billion
Non- oil & gas import (Sept. 2007) : US$ 4.52 billion
Oil & gas import (Jan-Sept 2007): US$ 15.17 billion
Biggest import value: machineries/mechanical engineering:
US$ 6.73 billion (17.47% of total import)
 Biggest Exporters (CoO):
- China : US$ 5.84 billion (15.17% of total import)





- Japan
- US
: US$ 4,67 billion (12.12% of total import)
: US$ 3.41billion (8.85% of total import)
Source: Statistics Indonesia (BPS)
Bilateral Trade Hong Kong –
Indonesia
 Total Trade (in US$ million):
3,179.9 (2005); 3,341.9 (2006); 1,825.8 (2007*)
 HK export to Indonesia:
1,261.3 (2005); 1,424.0 (2006); 796.9 (2007*)
 HK import from Indonesia
1,918.6 (2005); 1,917.9 (2006); 1,029.0 (2007*)
 Indonesia: main importers for Hong Kong (rank 16th)
* Jan-Jun 2007
Bilateral Trade Hong Kong –
Indonesia
Highlight of Main Import Commodities from
Indonesia (in US$ million):
 Coal : 436.3 (2005); 415.1 (2006); 273.9 (2007*)
 Textile Yarn & clothings: 139,9 (2005); 123.3(2006);
60.5 (2007*)
Paper & paper board: 113.1 (2005); 89.7 (2006);
34.0 (2007*)
Fish, crustacean, mollusk & others: 98.8 (2005);
100.3 (2006); 70.1 (2007*)
* Jan-Jun 2007
Multi-Track Strategy in Trade Negotiations
• Multilateral: World Trade Organization, Doha Agenda
• Regional:
 ASEAN Economic Community: goods, services (partial), investment (partial),
mutual recognition agreements, customs procedures and ASEAN Single Window
by 2008
 ASEAN-China Free Trade Agreement (ACFTA): goods, and beginning in services
 ASEAN-Korea FTA (AKFTA): goods
 ASEAN-India FTA, Japan, and ASEAN-Australia New Zealand FTA (AANZFTA) (still
in negotiations)
• Bilateral:
 Indonesia and China Strategic Partnership: enhancing cooperation in investment,
agriculture, forestry, fishery, manufacture, technology, energy, infrastructure,
and capacity building. Target for bilateral trade: US$ 20 billion (2008), US$ 30
billion (2010)
 Indonesia-Japan Economic Partnership Agreement (IJEPA)—agreement in
principle on major elements
New initiatives in strengthening Indonesia’s
competiveness
• To develop diverse products in response to market
demand and to exploit market opportunities
• A timely respond to the changing demand for components
• Continue to improve logistics
– Adopt a cost effective method to control the process of flow
and storage of materials, finished goods, services, in
response to changing environmental conditions
• To improve information technology system to adapt and
support changing requirements of the business
environment
• Strengthened comparative advantage
– Indonesia has strategic location, at the cross-road of
one of the heavy traffic sea lane allows it to specialise
in a segment of the production chain to cement its
place and china for the global supply chain
– specialisation especially in labour intensive stages of
production
• Strengthened comparative advantage ensures sustainable
and expanding export industries
• Ready to move from the specialisation in the existing
segment of the production chain to a higher value added
segment of the production chain
• Concentrate in more improved Indonesian infrastructure
– Just-in-time production networks necessitates improving the
efficiency of production supporting infrastructure
• Transport and telecommunications infrastructure
– Demand driven infrastructure development
• Provides opportunities for Indonesia supplying the global
supply chain
– develop a segment of the production network to feed into the
region production network and then global supply chain
– Benefit from globalisation, climbing the technology ladder and
gain wider access to international markets
• A more integrated and closer to the region (EA/ASEAN)
– Production sharing means Indonesia becoming more
interdependent on each other with countries in the region
– to more market oriented policies
• Renders protectionist, import substitution and anti-foreign
investment policies less effective
Foreign Direct Investment
(per August 2007)
• Investment Realization (Jan-Aug.2007)
 Total of Issued Permanent Licenses : 697
million
 Manpower Absorption : 130.725 persons
US$ 8.138,6
• Investment Value by Location (Provinces):
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
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Jakarta Capital Territory = US$. 4,294.9 million (244 projects)
East Java = US$. 1,654.2 million (52 projects)
West Java = US$. 824.1 million (177 projects)
Riau = US$. 412.7 million (6 projects)
Banten = US$. 169.8 million (50 projects)
Note: Excluding of investment in Oil and Gas, Banking, Non Bank Financial Institution, Insurance,
Leasing, Mining in Terms of Contracts of Work, Coal Mining in Terms of Agreement of Work, investment
which licenses issued by technical/sectoral agency, Porto folio as well as household investment.
Foreign Direct Investment
10 Leading FDI in Indonesia 1 January 1967 –31 December
2006 (Approved Projects)
•
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•
•
No. Country
1.
Japan
2.
UK
3.
Singapore
4.
Hong Kong
5.
Taiwan
6.
Malaysia
7.
South Korea
8.
USA
9.
Germany
10. Australia
Projects
1,750
1,016
2,315
549
1,163
1,175
2,726
680
356
717
Value (US$ Billion)
39.42
35.19
28.43
20.90
13.47
12.54
12.14
11.79
95.21
95.17
Foreign Direct Investment (cont’d)
• Investment Value by Country/Area:
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Singapore = US$. 3,177.6 million (78 projects)
United Kingdom = US$. 1,597.1 billion (51 projects)
Japan = US$. 500.4 million (82 projects)
Taiwan = US$. 465.3 million (25 projects)
South Korea = US$. 238.0 million (125 projects)
• Realized Investment Value by Sectors:
 Transport, Storage & Communication = US$. 3,289.4 million
(30 projects)
 Chemical and Pharmaceutical Industry = US$. 1,563.5 million
(25 projects)
 Food Industry = US$. 492.5 million (41 projects)
 Paper and Printing Industry = US$. 428.5 million (10 projects)
 Trade & Repair = US$. 346.4 billion (207 projects)
Source: Indonesian Investment Coordinating Board (BKPM)
Foreign Direct Investment
(cont’d)
Hong Kong SAR
• Realization of FDI Value from Hong Kong (Jan- Aug
2007) : US$ 105.8 million (9 projects)
• FDI Planning Approvals Value (Jan- Aug 2007) : US$
239.2 million (22 projects)
People’s Republic of China
• Realization of FDI Value from Hong Kong (Jan- Aug
2007) : US$ 18.7 million (14 projects)
• FDI Planning Approvals Value (Jan- Aug 2007) : US$
207.4 million (75 projects)
FDIs from Hong Kong
• Trend of FDI Investment from HK:trend investasi berdasar
negara.xls
FDI Trend from Hong Kong
400
350
Total Projects
300
250
Investment (in
US$ million)
200
150
100
50
P
I
2002
P
I
2003
P
I
P
2004
Year
I
2005
P
I
2006
P
I
2007
A strategic approach to boost
Investment
• Improvement in Investment Climates
– Reform both regulatory and institutional in general investment climates
and infrastructure development.
– On February 16, 2006, launched Infrastructure Policy Package
– On March 3, 2006, launched Investment Policy Package
– Address corruption and high costs of doing business
• Infrastructure Indonesia 2005 – 2006
– Indonesian government held Infrastructure summit twice: the 1st summit
was held on 17 – 18 January, 2005 and the 2nd on 1- 3 November 2006.
– Indonesia infrastructure Summit and Exhibition dedicated to advancing
Indonesia’s infrastructure development projects.
• Improving access to financing and cost of financing
– On July 5, 2006, launched Financial Sector Policy Package aims at
improving coordination between the Government and the central bank,
Bank Indonesia, and steps to strengthen the banking industry, non-bank
financial institutions and the capital market.
• New Investment Law: Just approved by the Parliament in
March 2007
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–
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More conducive environment for investment in Indonesia
Equal treatment between foreign and domestic investors
Clear definition of sectors closed/open with condition
Procedures for investment approvals will be streamlined
Protection from nationalization and expropriation
Incentives will be given to new investors for selected sectors (e.g. Pioneer
sectors) and regions: Fiscal, Immigration, Access to land etc.
• Improvements in trade facilitation measures
–
–
National and ASEAN Single Window (one stop service for processing of import and
export documents/procedures)
• Batam Pilot, 2007 Tanjung Priok
• 25 government agencies (collection of documents, standardization)
Transparency of standards
• Policy and institutional reforms for creating legal
certainty, consistency and reduce the costs of doing
business
• Covers
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General Investment Law and Regulations
Taxation
Customs
SME
• Short term measures on deregulation and reducing
red tape, and ongoing anti corruption drive
• The Parliament promulgated new law to select three islands e.i. Batam, Bintan
and Karimun, near to Singapore as “Free Trade Zone”. The New Law is focusing
on creating ‘islands of excellence’ because it is easier to remove supply-side
constraints from small geographical areas than the whole economy. Being
immediate neighbor to Singapore, these FTZ have strategic advantage.
• Efficient regulation and licensing will be a crucial part of these new special
economic zones. Each zone will have a single zone authority which will provide
best practices in terms of services to investors. In particular streamlining
necessary licenses and permits from the central and local governments to
operate in the zones, services to resolve problems and supporting
administrative services in various areas such as customs, import and export
procedures.
• The Government is currently working on a set criteria to support those areas
which already like infrastructure, supporting industries, access to inputs of
production including skilled labor.
Tourism
Visitor Arrivals to Indonesia 2000-2006
YEAR
INTERNATIONAL
VISITORS
AVERAGE EXPENDITURE/ PERSON (US $)
PER VISIT
PER DAY
AVG. STAY IN
DAY(S)
FOREIGN
EXCHANGE
INCOME
2000
5.064.217
1.135,18
92,59
12,26
5.748,80
2001
5.153.620
1.053,36
100,42
10,49
5.428,62
2002
5.033.400
893,26
91,29
9,79
4.496.13
2003
4.467.021
903,74
93,27
9,69
4.037,02
2004
5.321.165
901,66
95,17
9,47
4.797,88
2005
5.002.101
904,00
99,86
9,05
4.521,89
2006
4.871.351
913,09
100,48
9,09
4.447,98
Source: Statistical Report on Visitor Arrivals to Indonesia
Tourism
• Top Ten Visitors to Indonesia by Country/Region of
Residence (2006)
 Singapore
: 1,401,804
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Malaysia
Japan
Australia
Taiwan
UK
USA
Germany
Netherland
PRC
:
:
:
:
:
:
:
:
:
769,988
419,213
226,981
236,384
110,412
130,963
106,629
110,272
147,245
• Visitors from Hong Kong SAR (2006) : 78,386 (rank 13)
Tourism
Total Visitors from Hong Kong 2002-2006
2006
2005
2006
2005
2004
Hongkong
2004
2003
2003
2002
2002
68,000 70,000 72,000 74,000 76,000 78,000 80,000 82,000
Support to ASEAN Economic Community
• Continue to pursue ASEAN’s vision as a single market and production base by
2015
– Strengthens ASEAN’s position in the global supply chain
– Deepens specialisation and improves the efficiency of ASEAN’s
production base
– Support ASEAN as a single market and production base
• Integration for 11 priority sectors
– Argo-based products, air travel, automotive products, e-ASEAN,
electronics, fisheries, health care, rubber-based products,
textiles and apparels, tourism and wood-based products
– Cost competitive products represent around 50 per cent of intraASEAN trade
• ASEAN Investment Area
• ASEAN Industrial Cooperation Scheme
• ASEAN Single Window
Useful Website
• Indonesian National Portal:
www.indonesia.go.id
• Ministry of Foreign Affairs: www.deplu.go.id
• Ministry of Trade: www.depdag.go.id
• Taxation: www.pajak.go.id
• Investment Coordinating Board:
www.bkpm.go.id
• Indonesian Tourism Promotion :
http://www.my-indonesia.info/