Construction & Engineering

Opportunities for UK businesses in

Melati Bangi Business Development Coordinator Overseas Business Network , 18th February 2016 British Chamber of Commerce in Indonesia OVERVIEW

Indonesia’s Facts

• Indonesia is a country of huge potential market. It has a population of more than 250 million people.

• Construction, Infrastructure and engineering development is one of the main priority for Indonesia government.

• USD 180 billion will be invested in these sectors by the government under the Master Plan for the Acceleration and Expansion of Indonesia Economic Development (MP3EI). Opportunities for UK businesses in Indonesia

Roads The Government has set of adding 3,650 km of new roads (including 1000km tolled) and maintaining 46,770 km roads, which will require £40bn of investment by 2019.

Rail The Government has set a target of adding 3,258 km to the existing railway network (2,159 km intercity and 1,099 km urban), which will require £14bn of investment between 2015 and 2019. In addition, a share of £5.7bn allocated for Urban Transport is aimed at constructing Mass in six metro cities and 17 large cities across Indonesia.  Jakarta MRT Project  Soekarno-Hatta Airport Rail Link  Greater Jakarta LRT Project Opportunities for UK businesses in Indonesia

Port The Government has targeted the expansion or construction of 24 ports in total – five port hubs and 19 feeder ports across the archipelago. This will require £45bn of investment by 2019.

Airports The Government has set a target of £82bn of investment in the airport sector, including maintenance of existing airports and construction of new airports and Air Traffic Control facilities. Advanced engineering

The Indonesian manufacturing sector has capacity and capability constraints. Main opportunities include:

 manufacture of machinery, components and parts  assembly of components and parts  industrial and packaging machinery  health and safety equipment  aerospace, automotive, marine Market Entry Strategy

• UK companies must visit the Indonesian market in order to properly choose an appropriate agent, distributor or potential partner from Indonesia’s vibrant and experienced international business sector.

• Important factors affecting purchasing decisions in Indonesia are pricing, financing, technical skills, and after-sales service.

• Although it is possible for UK companies to sell directly to the government and state-owned companies, local agents or distributors are often critical (and at times, required by law) for successful project development and delivery of products or services. Question:

Answer: www.britcham.or.id

BritCham Indonesia:

Melati Bangi Business Development Coordinator of Overseas Business Network

WTC 5, 15th Floor Jl. Jend. Sudirman Kav. 29-31, 12920 Jakarta, Indonesia

[email protected]

www.britcham.or.id

British Chamber of Commerce in Indonesia British Chamber of Commerce in Indonesia @Britcham_id