Muhammad Fadli 3078393 International Management Content Introduction Energy Outlook Economic Outlook Urbanitation Current condition Trending Why Strategic Planning
Indonesia contains the most Rafflesia arnoldi, the world’s Palm oil plantation, the world’s volcanoes in the world largest individual flower largest producer of palm oil.
Raja Ampat Islands, one of the The Komodo Dragon, the Borobudur temple, UNESCO Heritage world’s richest marine biodiversity world’s largest lizard sites, (Biggest temple in the World) Introduction
Fact about Indonesia : • 17508 Islands • 742 Local Languages • 300 Etnics
Republic of Indonesia Motto : Bhinneka Tunggal Ika (Unity in Diversity) Independence Day : 17 August 1945 (from Netherlands) Government : Unitary presidential constitutional republic Capital City : Jakarta Official Language : Indonesian Religion : Islam 87%, Protestant and Catholicism 10%, Hiduism 1,5 %, Buddhism 1% Government : Republic Area : Land : 1.904.569 km2 and Waters : 3,257,483 km² (60% Water) Islands : 17.508 with 34 Provinces Population (2015) : 255.461.700 Currency : Rupiah (IDR) Energy outlook
( In 2025 ) ( Curent Condition ) (Renewable) / Hydropower ( Gas ) / Solar / Geothermal / Wind
(Coal) (Fuel)
/ Tidal & wave
Source: Energy Ministry Department Republic Indonesia 2015 Economy
Indonesia coal exports by destination, 2012
• Indonesia is the largest coal exporters, but in the next decade exporting coal will be decreased until 2030. • Since four years back, decreasing coal price impact to Indonesia economic. • The others area such us agriculture and fisheries will take place in the next decade. Economy GDP/Capita and Economic Trending in 1993-2013
Coal Price
Economic crisis in Asia countries (not Trending decreasing, only Indonesia). To get back up, because coal price is decline Indonesia is funded by IMF rapidly. (international monetary funding) Urbanisation Countries and Population
• 32 million people are expected to move from rural to urban areas over th period 2010 to 2030
more than 60% indonesia population are living in Java Urbanitation Jakarta in same place but different time 1960 2013
Urbanisation in Indonesia is an increasingly important stimulus to economic growth Jakarta Megacity
Only 27.65 % local etnics living in jakarta
• By 2030, additional 72 million people could live in urban areas. • Jakarta could become a megacity, defined as a city with 10 milion or more inhabitants-with a population of more than 12 milion bt 2030. Urbanisation
Urbanitation prediction in Indonesia (%)
• Urbanitation continue incline until 2035 • Unbalance economic growth between each countries • Dominating cities which have better GDP located in Java
Source: BPS-Bappenas 2013
Why Urbanisation to Java ? 1 3
2 4 Why Urbanisation to Java ?
1. Job and better income • Most of head office located in Jakarta • Many International Company
• Not only indonesian people, but also foreign employess come to indonesia for work • foreign workers increased in the last five years • 70% work in energy sector
Why Urbanisation to Java ?
2. Education West Java East Java
DKI Jakarta
North Sumatra Mosty Universities located in Java, and 80% the top 20 Middle Java universities are in west java.
South Sulawesi
DKI Yogyakarta Strategic Planning
1. Longterm planing to balance economic growth are outside Java. (devolopment cities) 2. Regulation for Urbanitation 3. Improve Infrastructure
Jakarta tunnel Project, Many infrastructures are improving in the last decade, Balikpapan
Balikpapan is a one of devolopment cites outside Java which has GDP growth more them 7%. • Since 10 years back, balikpapan become a central ceconomic growth in Kalimantan (energy sector) • Not only national company, but also international company located in Balikpapan • Sepingan Airport in Balikpapan has been renovated since 2 years ago, because economic growth therefore flight schedule are more busy. Conclusion Energy Sector 1. Because the price of coal is predicted to decrease, therefore the coal export will decline from 73% in 2015 to 46% in 2025. 2. Renewable energy will subtitute fuel from 5% in 2015 to 23% in
2025 Urbanitation continue rising over 50% until 2035 Unbalance economic growth between cities is the main reason why urbanitation in Indonesia continuesly increase every year. Improving the infrastructure in each city to support economic growth and also to integrated between cities. Develop and funding support towards the cities especially outside java depends on potencial natural products and the ability of society
References “General Planning National Energy 2015-2050 Republic Indonesia”. Ministry of Energy RI. 27 November 2015 “Central Statistic Indonesia”. 10 Juni 2010 “Central Statistic Indonesia”. 2010-2015 “Jakarta Central Statistic in Indonesia”. 2010 ABB, Trends in global energy efficiency: Indonesia country report 2011, 2011. The Economist, “Jam Jakarta: The race to beat total Grodlock,” February 4, 2010. McKinsey & Company Report, The archipelago economy: Unleashing Indonesia’s potential. September 2016 Wikipedia and internet literature.
Terima Kasih Thank You