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Indonesia – Understanding Current trends & Challenges

Indonesia – Understanding Current trends & Challenges. Overview. Indonesia – brief overview Current Trends Challenges Current NZ trade. Indonesia - Area Comparison.

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Indonesia – Understanding Current trends & Challenges

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  1. Indonesia – Understanding Current trends & Challenges

  2. Overview Indonesia – brief overview Current Trends Challenges Current NZ trade
  3. Indonesia - Area Comparison
  4. Sustained economic growth above 6% (2nd only to China)Commodity exports – domestic consumption growth driverMassive fuel and electricity subsidies (19.1% of annual budget)Increasing car sales (growth 23%), declining motorbike sales (-13%)$US 1 trillion economy 2013-14271% increase in GDP per capita from 2005-2011 to US $3,543Lowering unemployment as well as growing size of workforce2nd highest ratio of active workforce vs retired people in the world60,000+ millionaires (same as Singapore) Overall Economic Indicators
  5. The view from Tim’s office window in Jakarta mid Jan 2013… 30 storey 5 star hotel
  6. Challenges Weakening economy in short-term due to lower commodity prices, high fuel subsidies and US quantitative easing tapering off 2014 Election year – New Parliament and new President for next 5 years – no clarity about policy backgrounds of candidates ASEAN single economic region 2015 Weakening rupiah – dropped about 25% in last 6 months
  7. Current Consumer trends Early Adapters Appreciation of worlds best brands Increasingly health conscious- Nutricuticals are big business Continued growth in MACs Currently about 74 million 2020 about 150 million 25 cities with MAC’s larger that 500,000, 54 by 2020 Low dependency ratio Very high financial confidence (91%) - 1million + new car sales 2012 High trust in traditional media Highly connected society – Over 100% mobile phone market penetration (250m+ handsets/SIM cards) Jakarta biggest Facebook city Indonesia biggest tweeters
  8. One of 173 shopping malls in Jakarta…
  9. Challenges for Trade FTA erosion by non-tariff trade barriers Quotas for beef and horticulture Complex import licensing regime Drive for self sufficiency Corruption Relatively poor transport infrastructure – expensive supply chain logistics
  10. Current NZ Trade with Indonesia Aviation Geothermal Agritech / Spec Manuf Food & Beverage Health ICT
  11. Questions?
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