The Master Plan

The Master Plan of Acceleration and Expansion of Indonesia Economic Development (MP3EI) 2011 - 2015 was launched in May 2011. It is based on connectivity concept, involving 6 economic corridors with main economic activities:
SUMATERA
Palm Oil Rubber Coal Shipping Steel Sunda Strait Area

your gateway to invest in

IIPC NY

REMARKABLE INDONESIA

JAVA

Textilles

Food Beverage

Transport Equip.

ICT

Metrop Defense Shipping Jakarta Equip. Area

KALIMANTAN

Palm Oil

Timber

Oil&Gas

Steel

Bauxite

Coal

SULAWESI

Foodcrops

Cocoa

Fisheries

Nickel

Oil&Gas

BALI NUSA TENGGARA

Animal Tourism Husbandry Foodcrops

Fisheries

PAPUA MALUKU ISLANDS

Fisheries

Copper

Nickel

Oil&Gas

Source: MP3EI

Investment Incentives and Facilities

There are several government incentives and facilities under certain conditions: Tax Allowance 30% reduction of corporate net income based on investment value for six years, 5% (five percent) each year. Tax Holiday It is provided for 5 sectors: a. Basic metal industry, b. Oil refinery industries and/or basic organic chemicals originating from oil and natural gas, c. Machinery industry, d. Industries in the field of renewable resources, e. Communication device industries. Several conditions to obtaining tax holiday include be classified as pioneer industry and Rp. 1 trillion (around US$100 million) minimum investment. Import Duty Facilities It is allocated for goods, machinery and materials which are not domestically produced, or already locally produced but havent meet the required specification, or only available in limited amount and not sufficient enough for the industry.

Indonesia Investment Promotion Centre (IIPC) New York

office address: 370 Lexington Avenue Suite 1903 New York, NY 10017 Phone. +1 646 885 6600 Fax. +1 646 885 6601
yos.harmen@bkpm.go.id haryo.sedewo@bkpm.go.id

What can IIPC offer to you?

Indonesia Investment Promotion Centre (IIPC) New York is readily available to assist in setting up a new investment in Indonesia. Our office is open for consultation related to the investment regulations, incentives and facilities, investment statistics, new business opportunities. IIPC functions include: 1. Facilitating investors to start up business in Indonesia 2. Providing latest information on Indonesia investment climate 3. Arranging investment mission to Indonesia 4. Promoting investment through business forum, seminar, etc.

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www.bkpm.go.id

Why Indonesia?
Robust economy, growth reaching 6.5% in 2011, and 6.23% in 2012. With GDP around US$ 1.1 trilion, it is currently the second fastest growing economy amongst G20 members.

INVESTMENT TARGET AND REALIZATION (IN US$ BILLION)

56.32 B 43.37 B 34.8 B 27.92 B 31.5 B 26.67 B 23.17 B 17.79 B
PAPUA

TARGET

SUMATERA KALIMANTAN SULAWESI

Jakarta

21.4 B

REALIZATION

MALUKU ISLANDS

JAVA BALI

NUSA TENGGARA

2010

2011

2012

S1 2013 2014

Source: BKPM

The U.S. investment in Indonesia has increased since 2010 mainly in extractive industry such as oil & gas and mining followed by trading, transport equipment and food & beverage. In 2012, Indonesia was ranked 4th worlds most populous nation. Over 246 million people strong with 60% under age of 39, providing a dynamic and competitive young workforce. International credit rating agencies such as Japan Credit Rating Agency, Fitch Ratings and Moodys awarded Indonesia as investment grades.
Indonesia 246 mi China 1.3 bi India 1.2 bi USA 3.13 mi Brazil
Source: World Bank

THE U.S. INVESTMENT IN INDONESIA (IN US$ BILLION) 1.48 B 1.2 B 0.9 B 1.3 B

2010

2011

2012

S1 2013

Source: BKPM

The UNCTAD Investment report 2012 ranked Indonesia 4th in FDI destination. The abundant natural resources, increasing middle class and high domestic consumption contribute to around 60% of GDP. These strengths give advantages for businesses and investment, as well as, an attractive market for goods, products and services. The 2012 McKinsey Report forecasted Indonesia to be the 7th largest economy by 2013.

Based on the country of origin, during Semester I 2013, The U.S. investment in Indonesia was ranked 3rd largest with total investment reached US$ 1.3 billion.
Japan US$ 2.3 B (16.2%)

Others US$ 6.9 B (47.1%)

Singapore US$ 1.9 B (13.9%)

Indonesia today...

...and in 2030

USA US$ 1.3 B (9.5%) United Kingdom US$ 0.5 B (4.6%) South Korea US$ 1.2 B Source: BKPM (8.7%)

16th-largest

economy in the world

7th-largest

economy in the world

members of the of the 45 million members consuming class 135 million consuming class the population in cities of the population in cities 53% of producing of GDP 71% producing 86%of GDP 74% workers workers 55 million skilled 113 million skilled in the Indonesia in the Indonesia economy economy

Focus of Investments
According to Indonesias General Planning of Investment (RUPM), the government focuses investments in Food, Energy and infrastructure.

$0.5 trillion

market opportunity in consumer services, agriculture and fisheries, resources and education

$1.8 trillion

market opportunity in consumer services, agriculture and fisheries, resources and education

The U.S. Investment in Indonesia

The investment realization has increased steadily since 2010. During the last three years, the investment performance reached above the governments target, due to stable economic growth and improved investment climate. Aside from those primary sectors, the government also encourages investment in manufacturing industries, machinery industry, oil refinery and basic organic chemical.