3. Lucrative Investment in Indonesia
Total Page:16
File Type:pdf, Size:1020Kb
INVESTING IN Sri Kumala CHANDRA EU Outreach Manager of EIBN Reykjavik, 13th December 2018 WHY INDONESIA? • 3.1 million km2 of sea • 1.9 million km2 of land • Hub for international trade since the 7th century !7 INVESTMENT PERFORMANCE !9 !10 !11 INVESTMENT OPPORTUNITIES Priority Sectors Economic activity by region Special Economic Zones Existing SEZs & Strategic Tourism Areas Planned SEZs Strategic Tourism Areas Lhoksemawe Shipyard, Manufacture Sei Mangkei Palm Oil, Rubber, Fertilizer Industries, Tarakan Manufacture Logistics, Tourism Morotai Bitung Tourism, Manufacturing Fishery & Agro Industry, Logistics Industries, Logistics Toba Lake Padang Pariaman Raja Ampat Agro Industry Tourism (Maritime) (Cacao, Rubber, Palm Oli) Maloy Batuta Palu Palm Oil, Coal, Mineral Industries Sorong Smelters, Fish industry Agro Industry, Tanjung Api-api Logistics Kelayang Palm Oil, Rubber, Teluk Bintuni Petrochemical Industries Fertilizer, Batu Licin Petrochemical Refinery, Metal Industry Garombong Wakatobi Refinery, Logistic, Thousand Islands Petrochemical Merauke Taka Bonerate Food, Energy Tourism (Maritime) Tanjung Lesung West Java Tourism Manufacture Komodo Mandalika Borobudur Tourism Bromo Tengger Semeru !15 !16 Infrastructure development - RPJMN (2015 -2019) Planed investment in Indonesia’s (2015 – 2019) (in billion US$*) Sector Investment 225 infrastructure projects Water supply and waste water 77,7 as national strategic treatment projects Energy production and distribution 70,9 Streets 51,0 Maritime traffic 30,2 Public housing 14,9 27 priority projects Rail transport 13,3 ICT-Infrastructure 12,0 Air traffic 9,9 Public transport in cities 6,9 2 focus sectors: Total 286,6 Water and energy *) Exchange rate 1 US$ = 13.500 Rupiah (Rp) Source: Germany Trade and Invest Project name Investment Explanation Refineries Refinery Development Master Plan 15.500 Modernization of 5 existing refineries Tuban Refinery 8.000 Construction of new refinery 5.500 - Bontang Refinery Construction of new refinery 10.400 PLTU Batang Power Plant 2.960 2.000 MW power plant in Java High Voltage Direct Current 2.470 742 km electricity transmission grid Energy 500kV Sumatra Transmission 1.810 1.330 km electricity transmission grid PLTU Mulut Tambang 1.330 1.200 MW power plant in Sumatra Indramayu Power Plant 1.480 1.000 MW power plant in Java Central - West Java 500 kV Transmission 570 565 km electricity transmission grid Water to Energy Not specified 4 hydro power plants with 147 MW in total Light Rail Transit Jakarta (LRT) 2.540 Tramway in Jakarta Soekarno-Hatta Airport Express 1.780 Rapid transit to Jakarta Airport MRT Jakarta 1.850 Construction of subway section Railway East Kalimantan Railway 1.850 203 km railway Light Rail Transit (LRT) Sumatra 530 tramway in Palembang Makassar-Parepare Rail 470 144 km railway in Sulawesi 8 Section of Trans Sumatra Toll Road 6.000 8 sections of the Trans Sumatra motorway Balikpapan-Samarinda Toll Road 730 99 km motorway in Kalimantan Street Manado-Bitung Toll Road 380 39 km motorway in Sulawesi Serang-Panimbang Toll Road 800 84 km motorway in Banten Bitung International Hub Seaport 2.520 Sea port in Sulawesi Kuala Tanjung Seaport 2.220 Sea ports in Sumatra Ports Inland Waterways Sikarang-Bekasi - Java Sea 250 Canal National Capital Integrated Coastal 44.400 Construction of dam and new district in Jakarta Development Water Jakarta Sewerage System 600 Sewage network West Semarang Drinking Water Supply System 90 Drinking water network (in Mio. US$) Source: Germany Trade and Invest Non-fossil energy Resources (sd) Installed Ratio kt/sd CLEANTECH capacity (kt) 75,670 MW 6,848.46 MW 9.05% Hydro Renewable energy Geothermal 29,164 MW 1,341 MW 4,6% Mini/Micro Hydro 769.69 MW 230 MW 29.9% Biomass 49,810 MW 1,644.1 MW 3,3% Solar Energy 4.80 kWh/m2/day 27.23 MW - Wind Energy 3 – 6 m/s 2.731 MW - Ocean 49 GW 0.01 MW 0% Uranium 3000 MW 30 MW 0% Three biggest priorities: Biomass, Geothermal and Solar PV National • Private companies that offer design “build-operate- commitment transfer” contract (BOT) and turn key solutions are more to reduce likely to succeed in the Indonesian market. carbon Waste Management • Key arrangements: guarantee agreement with the local emissions by government where the landfill is located on waste supply 26% in 2020 to the facility for the security of the investors, and a Power Purchase Agreement (PPA) with the state-owned electricity company, PT PLN. • Growing urban population and increase of people life-style standards ➔ rapid construction growth: 7-8% Green Building • 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 National Development Plan 2015-2019 “Sea Toll” Development Plan Indonesia’s Logistics Route 5 Hub Ports 19 Feeder Ports 1. Service: Shipping, Ship Building 2. Infrastructure/Logistics: Seaports, Cold Storage, Storage Tanks 3. ICT & Human Capital: ICT for Maritime, Capacity Building Source Bappenas 2015 20 AVIATION Growth reaching 8 to 9 percent in 2016 Indonesia is a home to 269 airports, of which 26 are commercial airports in big cities There are currently 9 airport management projects and 5 new airport projects that are offered to the private sector in Indonesia. Domestic flights are still in higher demand compared to international flights, since Indonesian citizens need to use air travel to get across the archipelago efficiently, with over 80 million domestic passengers and 14 million international ones in 2015 !22 !23 TOURISM Tourism industry has raised 124% growth in Foreign Direct Investment from 2013- 2016. It contributed 4.23% of total Indonesian investment in 2015 and it is Projected to rise by 8% in 2019. It has became one of the trigger for the development of HORECA Business !25 !26 !27 !28 !30 !31 INVESTMENT REGULATORY FORM !33 !34 !35 !36 !37 Steps to Market Entry in Indonesia • Manufacture in Free Trade • Establish a company Zones in Indonesia • Appoint an having in agent to mind your explore the planned business • Export market aims products working with local • Visit business the partners Indone sian market yourself EMBASSY OF THE REPUBLIC OF INDONESIA Visiting address: Fritzners gate 12, 0264 Oslo, Norway Postal address: PO Box 4057, 0244 Oslo, Norway T: +47 22 12 51 30 F: +47 22 12 51 31 TAKK FYRIR Hotline: +47 45 83 40 66 Email : [email protected] Te r i m a K a s i h Sri Kumala CHANDRA +33 781 4321 99 [email protected] www.eibn.org.