1. Indonesia
The Largest Economy in South East Asia
Anasia Silviati
Senior Commercial Specialist
U.S. Embassy - Jakarta

2. Indonesia - The Largest Economy in South East Asia

3. Indonesia - The Largest Economy in South East Asia
A Giant Market
Population 4th Largest Country in the World
237 Million people - 5% Chinese Indonesians
Archipelago of 17,000 islands
More than 300 ethnic groups

4. Indonesia - The Largest Economy in South East Asia
A Country at the Crossroads
• Strategic location at crossroads of
Asian sea trade
• A member of the G-20
• #1 for Twitter user penetration in
the world
• #2 for Facebook users in the world
(behind US)
• More 3G subscribers than China
•Households with US$5,000 to
US$15,000 annual disposable
income expected to increase from
36% to 58% of population by 2020.
•60 million Indonesians projected to
move up into the middle class in the
next 10 years.

5. Indonesia - The Largest Economy in South East Asia
Democracy and Renewed Growth
(“The Year of Living Dangerously  “Eat Pray Love”)
• 2010 Growth and Democracy strengthened
Obama “Comprehensive Partnership”
Expanded growth to 6.1%
• 2009 Re-election of Susilo Bambang Yudhoyono
- Steady growth at 5.2%
• 2004 Election of Susilo Bambang Yudhoyono
– growth returns to 6%+
• 1998 - 2004 Restructuring economic & transition to
democracy
• 1997-1998 Asian Financial Crisis – GDP falls 14%
• 1965 – 1997 Suharto Era – annual growth of 7-8%

6. Indonesia - The Largest Economy in South East Asia
Security Conditions Improving
then …..
October 12, 2002 Bali Bombings Kill 202
August 5, 2003 Marriott Bombing
September 2004 Australian Embassy Bombing
October, 2005 Bali Bombings Kill 23
now …..
2006 – present No Bombings
Hundreds of Terrorists Jailed
May 2008 Travel Warning Lifted
Present Terrorists Being Contained

7. Indonesia - The Largest Economy in South East Asia
GDP Growth
GDP Growth
8.00%
7.00%
6.00% 6.40%
6.00% 6.70%
6.00%
6.34%
PerCapita GDP
5.00%
4.55%
4.00% 2009 = $4,149
3.00% 2010 = $4,346
2.00% 2011*= $4,657
*estimated
1.00%
0.00%
2011 2012
2007 2008 2009 2010
(forecast) (forecast)
GDP Growth 6.34% 6.00% 4.55% 6.00% 6.40% 6.70%
Year

8. Indonesia - The Largest Economy in South East Asia
Inflation Is Relatively Low
Consumer price inflation
12.00%
9.78%
10.00%
8.00%
6.96%
6.00%
6.03%
5.30% 5.30%
4.00% 4.81%
2.00%
0.00%
2007 2008 2009 2010 2011 (est) 2012 (est)
Consumer price inflation 6.03% 9.78% 4.81% 6.96% 5.30% 5.30%
Year

9. Indonesia - The Largest Economy in South East Asia
Steady Exchange Rate
Exchange rate
Rp12,000
Rp10,950
Rp10,312
Rp10,000
Rp8,942
Rp9,143
Rp8,996
Rp8,000
Exchange rate
Rp6,000
Rp4,000
Rp2,000
Rp0
2007 2008 2009 2010 (est) 2011 (est)
Exchange rate Rp9,143 Rp10,950 Rp10,312 Rp8,996 Rp8,942
Year

10. Indonesia - The Largest Economy in South East Asia
U.S. - Indonesia Trade: Indonesian Imports
• In 2009, U.S. was the
4th Largest Source of
Japan, 10.17% Indonesian imports
Other, 34.18%
Singapore, 16.06% after “Singapore”,
China and Japan
• Worldwide, rank of
Indonesia as U.S.
Export Destination in
2010 was 32th (0.5% of
U.S. Export, Jan-Oct
2010)
USA, 7.32%
• Rank of Indonesia as
Malaysia, 5.87%
Exporters to the U.S. in
China, 14.46%
Thailand, 4.76%
India, 2.28% Korea, 4.90%
2010 was 24th (0.86%
of U.S. Imports, Jan-
Oct 2010)
Source: Indonesian Statistic

11. Indonesia - The Largest Economy in South East Asia
U.S. Exports to Indonesia
Other commodities and Transportation
transaction, 28.80% Equipment, 26.20%
In 2010, U.S. Exports
to Indonesia = $6.94
Food
Manufactures, 10.60%
Agricultural Billion
Products, 20.60%
Chemicals, 13.80%
Source: U.S. Dept of Commerce - TradeStats Express

12. Indonesia - The Largest Economy in South East Asia

13. Indonesia - The Largest Economy in South East Asia
Market Opportunities
Energy & Mining:
• Demand increase 8%/year. By 2018 need additional of 57.4 GW
Imported Products $809 Million (Estimated 2010). By 2010-
2014, investment will reach $50.4 Billion
• Oil and Gas Investment $13.5 Billion in 2010 and
will reach $14.9 billion in 2011
U.S. products $324 million in 2010
39 New blocks will be offered in 2011
• GOI issued new Mining Law on January 2009
Imported products $1.06 billion in 2010 Ignatius Indriartoto
Investment reached $3.2 billion in 2010

14. Indonesia - The Largest Economy in South East Asia
Market Opportunities
Aviation :
• 19 scheduled and 41 chartered airline companies
• Number of domestic passengers reached 48 million in
2010 and will increase by 15% in 2011
• Imports of aircraft & parts in 2010: $1.5 billion
• U.S. products hold 80% market share
• Opportunities: leasing commercial aircraft, upgrading
airports facilities, supplying spare parts, private jets
• GOI issued new Aviation Law which fully ratifies the
Cape Town Convention  US Exim Bank Finance will
be available for Indonesia’s purchase for US aircraft
Anasia Silviati

15. Indonesia - The Largest Economy in South East Asia
Market Opportunities
Telecommunication Equipment and
Services:
• Market size $7B (2010), approx. 75% products, 25% services
• US origin – 20% of products, 5% of services
• Growth – 25-30%
• 10M fix line – 4% penetration
• 180M cell – 76% penetration
• Imports – 80%
• Broadband penetration : 3%
• Best products : WiMax base stations, ancillary and transmission
equipment, switching, smart handsets
• Best services : network optimization, billing, value added
services, financial services, content providers
Kalung Riang

16. Indonesia - The Largest Economy in South East Asia
Market Opportunities
Information Technology :
• Market size $3.7B (2010), approx 50% products, 50% services
• US origin – 40% products, 5% services
• Growth – 30-35%
• Imports – 80%
• PC penetration – 4%
• Internet penetration (Incl, via handsets and internet kiosk) – 15-20%
• Broadband penetration : 3% (cable + wireless)
• Best products : low cost notebooks and Wimax BWA BS
• Best services : education contents and remote services (tele Kalung Riang
medicine, e-government software)

17. Indonesia - The Largest Economy in South East Asia
Market Opportunities
U.S. Higher Education :
•First priority of U.S. Embassy in Jakarta, Indonesia
•U.S. Higher Education Mission in April bringing 56 U.S.
institutions, attracting thousands of prospective Indonesian
students and families
•Currently, 6,943 Indonesian students in the U.S., making
Indonesia as the top 18th country sending students to USA
•Majority of Indonesian students are at Undergraduate level
•In FY 2011, student visas issuance increased 25 percent from
FY 2010 to the highest figure within 10 years
Ignatius Indriartoto

18. Indonesia - The Largest Economy in South East Asia
Market Opportunities
Retail :
• Opened to foreign investment in 1998
• Sales in 2010 reached $9.68 billion
• Most foreign investment is in the hypermarket
sector
• Foreign retailers account only 8 percent of
outlets, but capture 40 percent of the total retail
sales
• U.S. retailers are strong in the specialty shop
and minimarket/convenient stores
Ignatius Indriartoto

19. Indonesia - The Largest Economy in South East Asia
Market Opportunities
Franchises :
• Home to 278 foreign and 92 local franchises
• Best prospective sub-sectors: Food and
Beverages, Education products and services
(including children’s education), Retail and
Business Services.
• American franchises dominate, but strong
competition come from
Singapore, France, Australia, the United
Kingdom, Thailand, and domestic franchises
• Estimated future growth around 5 percent.
Sharon Chandra

20. Indonesia - The Largest Economy in South East Asia
Market Opportunities
Medical Equipment Supplies:
• Estimated market was $573 million in 2010
• 2010 Imports estimate= $543 million: over 90
percent of the market are imported
products, over 20 percent is from U.S.
• Competitors: Japan, Germany, China, Korea
• Best Prospects: Ventilators, Anesthesia
equipment, Patient monitoring
equipment, Diagnostic equipment and disposable
products
Sharon Chandra

21. Indonesia - The Largest Economy in South East Asia
INFRASTRUCTURE PROJECTS
79 PROJECTS WORTH Rp 53.40 TRILLION OFFERED
WITH THE PPP FINANCING SCHEME
4 PRIORITY PROJECTS:
1. CENTRAL JAVA COAL FIRED PLANT, 2 x 1,000 MW, $3.2 billion
Developer : consortium Adaro, J Power, Itochu
2. SOEKARNO – HATTA AIRPORT MANGARAI STATION RAIL LINK
Waiting for new regulation
3. PURUK CAHU – BANGKUNANG COAL RAILWAY IN CENTRAL KALIMANTAN
Finished prequalification
4. UMBULAN WATER SUPPLY IN EAST JAVA
Finished prequalification
ROAD AND TOLL ROAD:
Development of 700 km expressway, including Trans-Java highway and the
Jabodetabek expressways.
PORT:
6 potential projects worth US$ 4.1 billion, including the development of Maloy
International Port (US$ 1.8 billion).
AIRPORT:
8 airport projects worth US$ 2.2 billion, including the Kertajati International Airport in
West Java and New Bali Airport. Anasia Silviati

22. Indonesia - The Largest Economy in South East Asia
MASTER PLAN FOR THE ACCELARATION AND EXPANSION
OF INDONESIA’S ECONOMIC DEVELOPMENT (MP3EI)
2011 – 2025
Aimed for:
One of the world’s 10 biggest economies by 2025, taking GDP to $4.5 trillion and increasing the per capita income from $3000
now to $15,000.
19 MP3EI projects worth Rp. 55.01 trillion included
• Bali`s Ngurah Rai airport (Rp1.2 trillion)
• 9,981 km of Sumatra`s Fiber Optic Nusantara Super Highway Ring(Rp87.4 billion)
•The Java-Kalimantan-Sulawesi-Denpasar-Mataram fiber optic project (Rp86 billion)
•The Mataram-Kupang Cable System (Rp6.8 trillion)
•Floating Storage and gas project Unit in West Java (Rp500 billion)
•Three units of 3.500 DWT tanker ships in Surabaya and Lampung (Rp109.49 billion)
•The upgrading project of Pertamina`s lubricating oil unit in Jakarta (Rp103.55 billion)
•A fuel oil transit terminal (depot) in Bau-Bau (Rp337.1 billion)
•A rig project in Jakarta (Rp393 billion)
•Alumina chemical grade project in West Kalimantan (US$450 million)
•Sei Mangkei industrial estate in North Sumatra (Rp3,68 trillion)
•Integrated steel in Banten (Rp26. trillion)
•The steel project South Kalimantan (Rp1.2 trillion)
•6.000 DWT tanker ship in Jakarta (Rp46.1 million)
•17.500 DWT tanker ship, stage I, (Rp245.1 million) and stage II (Rp294.1 billion)
Anasia Silviati

23. Indonesia - The Largest Economy in South East Asia
U.S. Commercial Service
U.S. Embassy Jakarta
Services Offered :
• Single Company Promotion
• Gold Key Service
• International Partner Search
• Market Research
• Video Conferencing
www.export.gov/indonesia
• Company Background Check
Email: office.jakarta@trade.gov

24. Indonesia
The Largest Economy in South East Asia
Thank You
Anasia Silviati
Email: Anasia.Silviati@trade.gov