Transcript estimated June 2014

RECENT WORLDWIDE ACCLAIM
“Prudent fiscal policies”
World Bank 2014
“Remains an excellent opportunity for
investment”
McKinsey
“ An economy driven by domestic consumption”
Standard Chartered Bank Economic Analyst
“Most optimistic middle class in the world”
Nielsen
“Steady economic growth in climate of political stability”
Bain & Company
254,000,000 Population
(estimated June 2014)
92.8 % Literacy
US$3,234 Per Capita Income
74,000,000 Middle Class
5.8% GDP Growth 2013
10 Largest Economy
3 In Asia
(World Bank)
Moody’s Indonesia’s sovereign rating :stable, external pressures manageable
Ranking in Global Competitiveness Index: Indonesia moved
from 74th in 2005 to 38th in 2013
US$2,058 Billion GDP
3-5% Inflation
53% Urban Population produce
74% of GDP
25 Cities home to at least 500,000 Middle Class
55Million Skilled Workers
0.5 Trillion market opportunity
In consumer serviced, agriculture & fisheries,
resources and education
Home to 15 million Cars
67 MILLION Motorcycles
Jakarta vehicle numbers: 14 million
Cars: 5.5 MILLION
Motorcycles: 8.5 MILLION
Jakarta Total Road 7650 Km
2 Meters per Car, if all came out same time
it’s 11,000 Km
World bank
99% Own mobile phones
250 Million (Sept 2013)
Nobody is Working!
Indonesian spent 181 minutes per day on smartphones
Highest in the World
36 MILLION Internet Users
OUTLOOK
Over the next 15 years, Indonesia
will gain 80 million new
consumers, accounting for 40% of
the new consumers in the
Association of Southeast Asian
Nations (Asean) over that period.1
Estimates by the Brookings
Institution indicate that Indonesia
will become the fourth-largest
middle-class country by 2030,
behind India, China and the US.
Indonesia’s high
consumer confidence
scores consistently top
and Indonesians typically
report household budget
flexibility that far
exceeds the global
average.
Nielsen Global Rankings)
Modern retail sales in
urban areas across
Indonesia are expected to
grow an average of 7.3
percent/year during 2012
to 2017 (Euromonitor).
Indonesian Shopping Basket
46%of the products were
categorized as premium, 32
percent were mainstream, and 22
percent were value-oriented.
(Nielsen study on 13 fmcgs)
About 60 percent of the products
that make up the super-premium
basket are discretionary items in
categories such as chocolates,
biscuits and moisturizing creams.
(Nielsen Global Rankings)
Companies will look to launch
more high-end brand variants to
cater to demand among upperincome consumers (whose
purchasing power is likely to
remain strong even in the midst of
a weak economic environment)
and ensure healthy profits.
Many companies will offer products in smaller packaging
sizes in order to be able to offer more affordable prices
aiming to expand their consumer bases to reach more
price-sensitive consumers from lower to middle income
groups.
ECONOMIC GEOGRAPHY
Regional Economic Growth
17,000 Islands
1,904,569 sq km
5,271 km Length (N-S)
2,210Km Breadth (E-W)
673 Airports
Population Distribution
Sumatera
21,31%
Kalimantan
5,8%
Sulawesi
7,31%
2,6%
5,5%
Jawa 57,49%
Bali dan Nusa
Tenggara
20
Sumber: SP 2010
Population Indonesia by age. Median age 26.2
AGE
The majority of fastest
growing cities are outside
Java.
Indonesia's Population is Growing and Becoming More Affluent
Tourist Arrivals 8.5 million
(2014 Estimate)
Projected to be top in region in Internet usage
Indonesia’s retail landscape is still dominated by traditional trade
and small-format outlets
Dollar flies high
Back to Normal
Yesterday Presidential Elections,
Whatever the outcome, it looks good .
“Always Friendly”
“ Strong! Are you?
INDONESIA. Strong. Are you?
Thank You