Transcript ECONOMIC POTENTIAL OF INDONESIA

WONDERFUL INDONESIA FOR
BUSINESS AND TOURISM
A presentation by
H.E. Maruli Tua Sagala
Ambassador of the Republic of Indonesia to Hungary and the
Republic of Macedonia
September 12, 2013
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GEOGRAPHY OF INDONESIA
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SIZE OF INDONESIA
• Size of land area: 1,811,569 km2
• Size of sea area: 7.9 million km2
• Length of coastline: 54,716 km (second to Canada
with 202,080 km)
• Archipelagic country: more than 17.000 islands
• Location: between mainland Asian and Australian
continents and Indian and Pacific Oceans
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Social-Culture
• Indonesia is home for 240 million people. It is the
4th most populous nation in the world.
• Multiculture: more than 350 ethnic groups, with
different local cultures and local languages
• Over 50% of the population is under the age of 29 and
60% of the population is under the age of 39.
• Around 52% of the population lives in urban areas.
• These indicators show a dynamic labour market
participation.
• For advancing human capital, Indonesia allocates 20% of
its annual total expenditure on education and skill
formation.
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Economy
• The success of the Indonesian economic development has brought
Indonesia into the G20. Since 2012 Indonesia has improved its position to
be the 16th biggest economic capacity.
• Indonesia’s economic growth reached 6.3% in 2012 and is expected to
have 6.3% this year, and will be 6.5% in 2014. However the growth for this
year has been corrected to be 5.9%, as a more realistic target, due to the
global economic uncertainty.
• The result of the prudent fiscal stewardship to reduce the debt burden,
Indonesia’s debt to GDP ratio has steadily declined from 83% in 2001 to
less than 25% by the end of 2011, the lowest among ASEAN countries.
• Standard Chartered report: Future economic expansion is expected to
include more inclusive growth as nominal per-capita GDP is expected to
quadruple by 2020.
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Economy
• Moody’s and Fitch has uplifted Indonesia’s credit rating to
investment grade status. It reflects that Indonesia is
economically strong, politically stable and reform minded.
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NATURAL RESOURCES
• Pricewaterhouse Coopers: Indonesia is a renowned market for
resource extraction, seen as even more attractive than for
instance, South Africa, Australia and Canada in terms of
mineral prospectivity.
• Some natural resources of Indonesia function as its economic
potentialities are the following:
Crude Oil
Key
Metrics
Over 3.5
bn
barrels of
proven
reserves
Natural
Gas
About
112 tn
cubic
feet of
reserves
Thermal
Coal
World’s
second
largest
exporter
Geothermal
Palm Oil
Cocoa
Tin
Rubber
Home to
40% of
world’s
resources
World’s
largest
exporter,
producing
about 19
mn tons
per year
At 770
thousand
tons per
year,
world’s
second
largest
producer
At 65
thousand
tons per
year,
world’s
second
largest
producer
World’s
largest
producer,
at 2.4 mn
tons
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MASTERPLAN FOR ACCELERATION AND
EXPANSION OF ECONOMIC DEVELOPMENT
• Indonesia is implementing the master plan for the period of
2011 to 2025.
• The objective is to drive the realization of high, balanced, fair
and sustainable economic growth and transform Indonesia
into one of the 10 major economies in the world by 2025.
• The private sector (SME’s) will be given a major role in
economic development, particularly in the area of
infrastructure.
• To achieve the plan, the economic development is directed to
create regions to be the venues of the strongest sources of
economic growth.
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MAP OF THE MASTER PLAN
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MASTERPLAN FOR ACCELERATION AND
EXPANSION OF ECONOMIC DEVELOPMENT
• To make the plan applicable Indonesia is divided into 6
economic corridors which will be connected to one another.
The six corridors are Sumatra; Java; Kalimantan; Sulawesi; Bali
and Nusa Tenggara; Maluku and Papua.
• Along with it will build and improve infrastructure to connect
all the regions having been strong sources of the economic
growth in the intertwining of the six economic corridors. The
connectivity will enhance the effectiveness and efficiency of
the movement of people and commodities in Indonesia.
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The Sunda Strait Bridge, 27 kms
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BUSINESS OPPORTUNITIES
• More than 50 million people of the 240 million population of
Indonesia are middle class accompanied by the uptrend of
their income. They have strengthened the purchasing power
of domestic consumption, which in turn positively contributes
to the economic growth.
• The foreign investment with a total value of $18 billion (2012)
has driven the economic activities.
• There are various immediate projects, such as the world’s
longest suspension bridges of the Sunda Strait with the length
of 27 kms (construction is expected to start in 2014) building
20,000 kms of roads, 15,000 MW of power plants, seaports,
airports, railways, coal power plants, spring water projects, oil
refineries and other supporting infrastructures.
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THE 63TH MISS WORLD IN BALI, INDONESIA
SEPTEMBER 2013
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DISCOVER INDONESIA
• Geographically and culturally Indonesia is always depicted as
the most beautiful equatorial pearls.
• Indonesia offers the most diverse attractive natural wonders
and cultural diversity, which is different in their uniqueness
and beauty from island to island and from region to region.
• Indonesia is rich with heritage sites such as the Borobudur
Buddhist temple and the Prambanan Hindu temple (both built
in the 9th century).
• Indonesia has the 3rd largest rainforest which is rich in
biodiversity.
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Borobudur Buddhist temple built in the 9th century
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Prambanan Hindu temple built in the 9th century16
DISCOVER INDONESIA
• Indonesia has begun to develop 50 national tourist
destinations until 2025 within which there are 88 strategic
areas of tourism and 222 potential tourist sites.
• Indonesia achieved 8 million international visitors in 2012 and
will target 9 million in 2013 and 10 million in 2014.
• Based on the tourism achievement in 2011, tourism sector
contributed 4.06% to the National GDP, 6.87% to total
national workforce (7.44 million people).
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Tanah Lot - Bali island
awaits the visit of Hungarian business delegations
Thank you! Köszönöm!
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