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About Indonesia

Indonesia’s population of 258 million makes it the fourth most populous country in the world. The country has a young, growing and rapidly urbanizing population that makes it one of the fastest growing consumer markets in the world. Its economy is ranked as the tenth largest in the world. Valued at US$ 941 billion, it is projected to grow by 5.5% in 2017.

The government has unveiled various measures to stimulate investment, strengthen competitiveness, and diversify the economy. Given its abundant natural resources; political stability; attractive investment climate; and strong focus on developing its infrastructure, Indonesia is poised to transform into a great economic power.

Population: 258.32 million
Inflation Rate: 3.8%
Currency: Indonesian Rupiah (IDR)
Ave Exchange Rate: IDR 13,483 : US$ 1
Imports: US$ 129.1 billion
Exports: US$ 144.4 billion
GDP: US$ 941 billion
GDP per capita (PPP) US$ 11,700
Real GDP Growth 5%
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INDUSTRY REPORTS

This report is designed to provide an overview of the medical technologies sector in Indonesia, which is valued at US$ 900 million. The country harbors ambitions to develop its local medtech sector, and local factories are starting to produce medical equipment such as laboratory tools, radiolo...

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This report is designed to provide an overview of the smart cities sector in Indonesia. The country offers a number of opportunities in the smart city space, bolstered by its rapid urbanization and development. According to market research firm International Data Corporation (IDC), the Indones...

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Indonesia Country Profile

The report offers a wide range of data and information collected from various sources that were built together in order to provide not just facts but deeper insights about the country. Unlike other country reports that focus more on macro-economic data, we think that the most valuable part of ...

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This report is designed to provide an overview of the water and wastewater sector in Indonesia, which is facing multifaceted challenges, given that almost 40% of Indonesians have no access to adequate sanitation facilities, while a third do not have clean drinking water. The Indonesian governm...

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Indonesia

ECONOMIC NEWS

Indonesia Announces New Economic Stimulus Package

Indonesia  -  November 2018

The Indonesian government launched the 16th economic package focused on relaxing regulations to stimulate investment. The package consists of steps in three areas: tax holiday expansion, adjustments to the negative investment list (DNI) and the provision of tax incentives for the mandatory saving of export earnings in Indonesian bank accounts. The new economic stimulus measures aim to help Indonesia weather external shocks, such as the tightening of monetary policy in the United States and reduce the country’s dependency on imports.

Tax Holiday: The economic stimulus expands the categories, duration and amount of tax holiday. The new tax holiday will benefit smaller industries in the country’s special economic zones (SEZs) and target two industrial sectors, agriculture-based manufacturing and digital economy. The benefits can easily be accessed in the Online Single Submission system.

New Sectors Open To Foreign Investment: DNI has been revised to exclude 87 business sectors. Out of the 87, 54 are open to foreign capital. The newly-opened sectors are offshore oil and gas drilling, clove and white cigarette production, certain categories of medical equipment production, dairy farming and fabric printing. This goes to promote Indonesia’s openness to foreign investors, as foreign ownership in 54 business sectors can now be up to 100% compared to only 30-67% currently.

Incentives For Export Earnings: Exporters who deposit at least 90% of earnings for more than six months, either in US dollars or Indonesian Rupiah, can enjoy zero percent final income tax cut. The new law mandates exporters to save their earnings directly in Indonesia’s domestic banking system. Otherwise, they might face sanctions such as export restrictions, fines and even permit revocation. Indonesia plans to grow its foreign exchange reserves from export revenues.

(Sources: The Jakarta Post; Straits Times)

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Mobile banking

ICT

LINE Introducing Digital Banking Services In Indonesia

Indonesia  -  November 2018

LINE Financial Asia Corporation, a subsidiary of LINE Corporation is acquiring 20% of the total outstanding shares of PT Bank KEB Hana Indonesia. Under the agreement, LINE Financial Asia will become the second largest shareholder of PT Bank KEB Hana. The move also makes way for LINE to introduce digital banking service in Indonesia in 2019.

PT Bank KEB Hana Indonesia was established under the name PT Bank Pasar Pagi Madju in 1971. In 2007 it was acquired by Korean Hana Financial Group. 

LINE is one of the most popular messaging platforms in Indonesia and it is now looking to grow its fintech capabilities. According to a report in Bloomberg in January 2018, LINE announced an expansion into financial services inluding cryptocurrency trading. It had established a holding company called Line Financial Corp. and applied for a license to open a cryptocurrency exchange in Japan. The report also said that LINE was exploring expanding cryptocurrency operations in to Hong Kong and Luxembourg. In July 2018, LINE announced plans to establish a cryptocurrency exchange called BITBOX, which would offer more than 30 popular cryptocurrencies for global users (except in Japan and the United States), with support in 15 languages.

PT Bank KEB Hana Indonesia will be able to leverage LINE’s user base, branding, technology, content and know-how to strengthen its digital marketing strategies. With the partnership, the two companies plan to introduce deposit/microcredit products, remittance and payment services in Indonesia. In addition, they are looking to implement and improve credit rating models through projects with local and international credit rating agencies and optimize identification process in accordance with local regulations.

(Source: Marketing Interactive)

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Biomass

ENERGY

EDF To Develop Renewable Energy Power Plants In Indonesia

Indonesia  -  November 2018

Electricite de France (EDF) Group, the French electricity utility company with a global presence, is partnering with Indonesian companies to build renewable energy power plants. The four Indonesian companies are the state-owned PLN, PLN subsidiary PT Indonesia Power, PT Kencana Energi Dunia and PT Adaro Energy. The collaboration would build upon EDF’s capability in Indonesia.

EDF has started a project with PT Adaro Energy, using the combination of biomass and solar energy to develop power plant on an island with 5,000 people. Furthermore, EDF has teamed up with PLN and PT Indonesia Power to conduct feasibility studies to develop power plants for islands and remote areas utilizing solar and hydro energies.

(Source: The Jakarta Post)

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Hospital

MEDICAL

Kendall Court Invests USD 55 Million In Indonesian Hospital

Indonesia  -  November 2018

Kendall Court, a Singapore-based private equity firm, pledged a USD 55 Million Investment in Indonesia’s Mandaya Medical International Pte Ltd (MMI). MMI is part of Selaras Group conglomerate which has businesses in hospitality, healthcare and property sector. MMI operates a 218-bed hospital in Karawang, located 50 km east of Jakarta.

The fund will be allocated to build a hospital in Jakarta, as the company targets the growing demand of quality healthcare for the local middle-class community. Through the investment, Kendall Court will own a majority stake of MMI’s preference shares. The 70,000 square meter MMI’s general hospital will start operating by the end of 2019, supplying 420 beds. The new hospital will be a general hospital with a neuroscience spine centre, an advanced cancer centre and a cardio-vascular arrhythmia centre. It will also host 10 other specialist centres including centres for women’s health and fertility, dental and oral surgery, medical fitness and rehabilitation. 

This investment follows a change in regulations regarding foreign investment in Indonesia's general hospital sector. Prior to 2017, foreign investors were only permitted to invest in specialist hospitals, and not in general hospitals. Through Presidential Regulation No. 44/2016 in 2017, the Indoensian government allowed foreigners to have a maximum ownership stake of 67% in general hospitals. For ASEAN investors the maximum figure is 70%.Foreign direct investment (FDI) in the healthcare industry of Indonesia rose steeply in the first half of 2017. This is expected to boost foreign investment and help address the issue of Indonesia having one of the lowest bed-to-population ratios in the world at around 1.0.  

Foreign investment in 2015 and 2016 in Indonesia's hospital industry stood at USD 0.8 million and USD 0.2 million espectively, in Indonesia's hospital industry. Investment in the sector rose to USD 14.3 million during the first half of 2017.

(Source: Business Times)

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Growing plant man forestation

ENVIRONMENT

International Tropical Peatland Center Established In Jakarta

Indonesia  -  November 2018

Following the 2018 Brazzaville declaration to promote better management and conservation of the world’s largest tropical peatlands, Indonesia, Congo and Peru, three countries with extensive tropical peatland areas, announced a collaboration to form the International Tropical Peatland Center (ITPC) in Jakarta. Indonesia will host an interim secretariat, coordinated by Ministry of Environment and Forestry and assisted by the Center for International Forestry Research (CIFOR). 

The ITPC will serve as a hub to connect different stakeholders, coordinating and supporting collaborative international relationships in strategies and practices for tropical peatland management. It will also carry out and disseminate scientific research and become a center of excellence for tropical peatland research to support policy development and provide capacity building and technical services.

For the long-term plan until 2025, the center aims to govern peatland knowledge to ensure sustainable ecosystems and human well being for national and international benefits. This include harnessing economic and environmental values of peatlands such as tourism, growing betel nut and paddy, collecting medicinal plants, fishing and hunting across the three countries. In the first year, the center plans to consult all stakeholders to map challenges and opportunities, contributions and commitments and the establishment of the secretariat in Bogor, Indonesia. In 2019, the center will also begin research on broad aspects of peatland management and establishing demonstration plots in Indonesia, the Democratic Republic of Congo, the Republic of Congo and Peru.

Indonesia is currently at a corrective period, following intensive large-scale agriculture, draining, severe fires and haze that significantly degraded peatland areas. The country is rewetting over two million hectares of dried out peatlands. The private sector could be involved in the restoration efforts.

(Sources: International Tropical Peatland Center; Forest News; Tempo)

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Power transmission electricity energy

INFRASTRUCTURE

USD 1.62 Billion Syndicated Loan For PLN's 35,000 MW Program

Indonesia  -  November 2018

State-owned electricity company PLN has successfully obtained syndicated loan facilities of USD 1.62 billion from 20 international banks to finance its 35,000 MW power generation program. The Syndicated Loan Facilities consisted of term loan facilities worth USD 1.32b with a five-year tenor and a revolving credit facility worth USD 300 million with a three-year tenor.

The Syndicated Loan facility was initiated with PLN’s presentation to banks in Tokyo and Singapore. Subsequently, PLN appointed seven banks as its Mandated Lead Arranger and Bookrunners (MLABs). They are Australia and New Zealand Banking Group Limited, Bank of China Limited, Citigroup Global Markets Singapore Ltd, Mizuho Bank, Ltd., Oversea-Chinese Banking Corporation Limited, Sumitomo Mitsui Banking Corporation (SMBC) Singapore Branch / PT Bank Sumitomo Mitsui Indonesia and United Overseas Bank Limited.

The successful credit indicates investors’ confidence in PLN’s credit ability, as the company managed to obtain fund exceeding its initial request of USD 1.5 billion. PLN’s credit rating is Baa2, BBB (Fitch Ratings) and BBB- (Standard & Poor’s).

(Sources: Ministry of Energy and Mineral Resources of the Republic of Indonesia; The Jakarta Post)

 

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Animal feed

MANUFACTURING

Dutch Feed Manufacturer Acquires Indonesian Company

Indonesia  -  November 2018

De Heus Group, a Dutch feed manufacturer, has acquired Universal Agri Bisnisindo, an Indonesian poultry, fish and shrimp feed producer. Universal Agri Bisnisindo is a private feed company held by a consortium of multiple private shareholders. The company has total annual sales volume of 300,000 feed tons.

The move strengthens De Heus’ position in the animal feed sector in Asia. In 2009, it first entered the Southeast Asian market by acquiring a feed company in Vietnam and now has eight factories across the country. The company also has two feed mills in Myanmar and is currently building a feed mill in Cambodia.

De Heus expects Indonesia’s feed market to continue growing, reaching 22 million tons by 2022. Currently, 83% of Indonesia’s animal feed goes to the poultry industry, while the remaining 11% and 6% are for aquaculture and cattle and swine sector respectively.

Indonesia is the largest protein consumption market in Southeast Asia with a population of 260 million people. The attractiveness of the market draws positive investment from foreign companies. Cargill plans to open a freshwater aquaculture hub in Ciseeng, Parung-Bogor. Farmsco, a subsidiary of South Korean livestock and feed manufacturer, Harim Group, bought the feed and poultry-breeding units of Indonesia’ Sujaya Group. Neovia bought Indonesia’s layer feed producer, Welgro.

(Source: Feed Navigator)

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Submarine military navy

DEFENSE / AEROSPACE / AVIATION

Indonesia Seeks To Expand Submarine Capacity

Indonesia  -  November 2018

France’s Naval Group, present at Indo Defence 2018, is looking to fulfil Indonesia's submarine requirements with its Scorpene submarine. It matches the navy’s requirement as Scorpene offers oceanic with shallow water capabilities. The company is also looking to partner with state-owned shipyard PT PAL and consider building in-country.

Naval Group is a recognized naval platform designer and manufacturer with Transfer of Technology export program, in line with Indonesian government New Defence Bill. Besides Naval Group, Thyssenkrupp Marine Systems TKMS and Howaldtswerke-Deutsche Werft are eyeing the same opportunity.

The Indonesian Navy targets a fleet of 10 to 12 submarines. Presently, it has four submarines in its fleet, with one Nagapasa-class still to be delivered. The Indonesian Navy is looking to acquire additional attack submarine, on top of the three Nagapasa-class boats in delivery. The Nagapasa-class is known as Chang Bogo class internationally. 

The next generation of India's conventional attack submarines, the Kalvari Class, is based on the Scorpene Class submarines. India is planning for a fleet of six vessels, with three currently in service and three under construction.

(Sources: Shephard; Defence Connect)

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RETAIL / FMCG

Chinese Dairy Giant Launches In Indonesia

Indonesia  -  November 2018

China’s largest dairy enterprise, state-owned Yili Group, announced its entrance into Indonesia. The decision was made based on Indonesia’s huge market potential.

In Indonesia, Yili Group has a wholly owned subsidiary, Green Asian Food Indonesia Co., Ltd and has launched 11 ice cream products under the brand Joyday. By the end of 2018, Yili targets its products to reach more than 20 cities in Indonesia, and then will it gradually expand to other Southeast Asian countries.

Yili Group is the earliest public listed company in the Chinese dairy industry. Its market capitalization at 2017 stood at around 30 billion US dollars. Currently, it has established branches in the United States, Europe and Oceania. It has also developed a presence in New Zealand through the establishment of Oceania Diary Co., Ltd.

(Source: PR Newswire)

Companies

1   customized agent   distributor search

Customized Agent/ Distributor/Reseller Search

Having completed over 1000 customized agent/distributor/reseller searches for our clients over the years, this is one of the most popular trade services that we offer to potential clients. Typic...

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5   sourcing services

Sourcing Services

There is a growing interest in sourcing for products from South East Asia for strategic and competitive reasons. Companies from around the world are looking for suppliers in Malaysia, Thailand, ...

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Business Incorporation/ Site Selection

We counsel businesses on where to locate their office and industrial operations and what the optimal business structure should be to meet local government and tax requirements. Some of the quest...

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3   market research

Market Research

To successfully export your products or services, you need to learn about your customers, your competitors and your industry. Our market research process starts off with brainstorming effective ...

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2   trade show support

Trade Show Support

Many companies participate in trade shows hoping to find customers or local agents or distributors. However, they come away from these events with less than desired results. But with our trade s...

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Additional Services

Based on past experience in helping companies that are looking to grow their exports to one or more markets in South East Asia, we have found that some of these additional services that we offer...

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Economic Development Agencies & Trade Associations

7   trade mission organization

Trade Mission Organization

Visiting a market to meet with prospective customers or partners is essential as business is built on developing personal connections and understanding the local culture. Traveling ...

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2   trade show support

Trade Show Support

Trade shows can be an excellent option for companies and trade organizations to make key business and industry connections overseas. But to maximize the benefit of participating in ...

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8   trade representation

Trade Representation

With over 20 years of experience providing dedicated representation in South East Asia to economic development organizations (EDOs) from North America and Europe, we offer EDOs the ...

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Market Research

Our strong track record in performing a targeted analysis of specific industry sectors in multiple markets has helped many economic development organizations (EDOs) to develop strat...

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9   investment attraction

Investment Attraction

Attracting investment from overseas can mean new or retained jobs in your area. Our investment attraction support services will position your economic development organization (EDO)...

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Additional Services

Having worked with government agencies and trade associations for over 20 years, we also provide a range of additional services customized to the requirements of these organizations...

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COMPANIES SEEKING AGENTS/DISTRIBUTORS/RESELLERS IN Indonesia

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eSentire

Canada
Others
Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam
eSentire delivers Managed Detection and Response (MDR) wh...
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Leonovus Inc.

Canada
Others
Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam
Leonovus is the cloud solutions software developer of a b...
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nanopay

Canada
Infocomm Technologies (ICT); Others
Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam
nanopay’s technology improves methods for speed, cost, se...
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Millard Towers Ltd.

Canada
Aerospace & Aviation; Others
Indonesia, Singapore, Vietnam
Millard’s frangible (aviation) applications include tower...
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ClaroNav Kolahi Inc.

Canada
Medical
Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam
NaviEnt is a simple, accurate and affordable Ear Nose Thr...
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Ramsoft Inc

Canada
Medical
Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam
Customizable and flexible radiology software solutions, P...
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