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bauma 2013 - Indonesia Day. Welcome Best practice example. Philipp Parnitzke, HAVER NIAGARA GmbH Area Sales Manager - Middle East and Southeast Asia April 17th 2013. Doing Business in Indonesia. Since 2010 active in the Indonesian mining market
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Welcome Best practice example Philipp Parnitzke, HAVER NIAGARA GmbH Area Sales Manager - Middle East and Southeast Asia April 17th 2013
Since 2010 active in theIndonesianminingmarket • Participating in tradefairsasCoaltrans, Conbuild, and Mining-Indonesia • Working withlocalagents (casebycase) • Global operating Key-Accounts • Networking isveryimportant • Working withAssociationsisrecommended • Contactshavetobeaddressed/involvedcontinuously • strong competitionfromAustralia, Japan, USA, Canada and China etc. • DOING BUSINESS in indonesia
Experiences while travelling in Indonesia • Doing Business in indonesia • The archipelago consists of 17,500 islands • Many airlines/flights are available, but often delayed • Travelling time from Jakarta to Mine-site up to one day • Most Head-Offices of Mining Companies are in Jakarta • Meeting arrangements often on short notice / need reconfirmation • Visa for Immigration is needed
Visa on arrival • appliable after landing • costs: $ US 25 • length of stay: max. 30 days • single entry only • DOING BUSINESS IN indonesia
Business Visa • application through Indonesian Embassy, before travelling • costs: $ US 100 • valid: 1 year • length of stay: max. 30 days • multiple entry • sponsor needed • DOING BUSINESS IN indonesia
Service by Contactdetails: EKONIDGerman-IndonesianChamberofIndustry & CommerceDeutsch-Indonesische Industrie- & Handelskammer PerkumpulanEkonomiIndonesia-Jerman Jl. H. Agus Salim No. 115, Jakarta 10310P.O. Box 3151, Jakarta 10031, IndonesiaTel. : +62-21-3154685Fax : +62-21-3157088, 3155276E-mail : info(at)ekonid.or.idWebsite : www.ekonid.com • DOING BUSINESS IN indonesia
Opportunities & Challenges of the Mining-Business in Indonesia
Indonesia is the world‘s 6th largest Mining Market! • Mining Law 04/2009 • Beginning 2014 no unprocessed material (raw-material) will be allowed to be exported. The material needs to be processed in refineries and smelters. Nickel and Copper has to be > 99 %. • IUP-Holders (mining licence) have to submit a detailed plan how to comply with in-house ores-processing from 2014 ongoing • No local mining equipment industry existing. • Market clearance, illegal and small mines will dissapear • Politically stable • Opportunities
Indonesia has large resources of raw-materials such as: • Thermal Coal - World‘s No one coal producer. 320 Mio/tons in 2011 • Producer: Adaro Energy, PT Kaltim Prima Coal, PT Kideco, Antam etc. • Nickel-Ore (Laterite) - World‘s No. two producer in 2011 (33 Mio/tons) • Producer: PT Vale Indonesia, PT Antam, PT Freeport Indonesia • Tin - Worlds larges Tin-Exporter, 2nd largest Producer behind China • Producer: PT Koba Tin, Timah Tbk • Copper-Ore – Production in 2011 1.2 Mio/tons • Producer: PT Freeport Indonesia, PT Newmont Nusa Tengara, Gresik • Bauxite - Production 40 Mio/tons in 2011 • Producer: PT Antam, PT Freeport Indonesia • Iron-Sand • Producer: PT Freeport, PT Padmanaba Putra Mandiri • Primary-Gold • Producer: PT Antam, Avocet Bolaang Mongondow- PT Freeport • OPPORTUNITIES
Indonesiaisthe 6th largest Mining Market but onlyranked 46th in „investmentclimate“. • Nearly 10,000 IUP (mining permit holders) holders and some illegals. • Market is dominated by 15 Companies doing more than 85 % of the business • cHALLENGES
Smaller mines are not professional operated, try to get know-how only and buying cheap equipment later. • Foreign investors provide equipment pocketing the mining outcome and commit the Miners who lose their commercial independence. • The still not finally defined Mining Law makes investments for mining operations without refining-, smelting and processing plants riskful. • challenges
SUMMARY • Due to the mining law 04/2009 comprehensive new investments have to be done. New demand on equipment is the logical consequence. • Indonesia has the potential to be one of the TOP 5 mining countries, if its position in the investment climate comes higher ranked. • In South East Asia, Indonesia remains the top location for new mining projects, followed by the Philippines and Vietnam. A large number of these are greenfield and brownfield exploration projects for coal and copper-gold prospects. • McKinsey predicts Indonesia to be 7th largest economy • in 2030!!!
Text HAVER NIAGARA GmbH Robert-Bosch-Str. 6 48153 Münster Germany www.havertyler.com