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Indonesia Trade & Investment opportunities Trade & Investment opportunities Trade & Investment opportunities Trade & Investment opportunities Trade & Investment opportunities CONSULATE GENERAL OF THE REPUBLIC OF INDONESIA, MUMBAI, INDIA SPECIAL EDITION 2015 Tr Tr Tr Tr Trade & In ade & In ade & In ade & In ade & Invest in est in est in est in est in Remarkable INDONESIA Remarkable INDONESIA Remarkable INDONESIA Remarkable INDONESIA Remarkable INDONESIA Indonesia is an emerging global powerhouse in Asia. With the GDP expected to reach US$ 1 trillion in 2012, Indonesia is the largest economy in Southeast Asia. Much less affected by the global financial crisis compared to its neighboring countries, Indonesia’s economy grew by 5.8% in 2013, making “The World’s Most Stable Economy in the Last Five Years” according to The Economist Magazine. Indonesia grew by 6.2% in 2012 and in 2014, stronger economic growth is expected around the lower end of the 5.8-6.2% range. Future economic expansion is expected to include more inclusive growth as nominal per-capita GDP is expected to quadruple by 2020, according to a Standard Chartered report.A large part of our economic success is a result of growing middle class and stable economic growth. Indonesia is in list of MINT economies (Mexico, Indonesia, Nigeria and Turkey), namely those that were the most attractive to long-term investors due to their favorable demographic profiles. Indonesia’s debt to GDP ratio has steadily declined from 83% in 2001 to be less than 26% by the end of 2013, the lowest among ASEAN countries, aside from Singapore, which has no government debt. As a result, the Republic continued to receive good reviews. The rating reflects Indonesia’s resilience to the global financial crisis, improving government and external credit-metrics, and an ability to manage domestic political challenges to the reform agenda. Fitch Ratings (November 15, 2013) : affirmed Indonesia's sovereign credit rating at BBB- level with stable outlook. Rating and Investment Information, Inc (October 11, 2013) : affirmed Sovereign Credit Rating of the Republic of Indonesia at BBB-/stable outlook. Japan Credit Rating Agency, Ltd (July 22, 2013): affirmed Indonesia’s foreign currency long-term senior debt at BBB- with stable outlook. S&P (May 2, 2013): affirmed Indonesia’s sovereign credit rating, at BB+ level for long-term. Moody’s Investors Service (January 18, 2012): upgraded Republic of Indonesia’s foreign and local-currency bond ratings to Baa3 with stable outlook. INDONESIA COUNTRY FACTS Head of State : President Joko Widodo Capital : Jakarta Total area : 1,919, 440 sq.km Population : 245 million (2012) Language : Bahasa Indonesia Religion : Muslim, Christian, Catholic, Buddhism, Hinduism Currency : Rupiah (US $1 = 12,400 Rupiah January 2015) GDP Growth rate : 5.8% (2013) Main Islands : Java, Sumatra, Sulawesi, Kalimantan, Papua, Bali Natural Resources : Petroleum, Tin, Natural Gas, Nickel, Timber,Bauxite, Copper, Fertile Soils, Coal, Gold, Silver AgricultureProducts: Rice, cassava (tapioca), peanuts, rubber, cocoa, coffee, palm oil, Copra MajorIndustries : Pulp and paper, cement, basic metals and fertilizer, power generation, telecommunication, transportation Major Exports : Textile, electronic goods, footwear, oil & gas, plywood, sawn timber Major Imports : Chemical and pharmaceutical, fertilizer, cotton yarns, textile fabric, machines, motor vehicles.

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Page 1: Indonesia SPECIAL EDITION 2015 - kjrimumbai.net · SPECIAL EDITION 2015 Trade & Invest in Remarkable INDONESIA Indonesia is an emerging global powerhouse in Asia. With the GDP expected

Indonesia Trade & Investment opportunities Trade & Investment opportunities Trade & Investment opportunities Trade & Investment opportunities Trade & Investment opportunities

CONSULATE GENERAL OF THE REPUBLIC OF INDONESIA, MUMBAI, INDIA

SPECIAL EDITION 2015

TrTrTrTrTrade & Inade & Inade & Inade & Inade & Invvvvvest in est in est in est in est in Remarkable INDONESIARemarkable INDONESIARemarkable INDONESIARemarkable INDONESIARemarkable INDONESIAIndonesia is an emergingglobal powerhouse in Asia.With the GDP expected toreach US$ 1 trillion in 2012,Indonesia is the largesteconomy in Southeast Asia.Much less affected by theglobal financial crisiscompared to its neighboringcountries, Indonesia’seconomy grew by 5.8% in2013, making “The World’sMost Stable Economy in theLast Five Years” according toThe Economist Magazine.Indonesia grew by 6.2% in2012 and in 2014, strongereconomic growth is expectedaround the lower end of the5.8-6.2% range. Futureeconomic expansion is expected to include more inclusive growth as nominal per-capita GDP is expected toquadruple by 2020, according to a Standard Chartered report.A large part of our economic success is a result ofgrowing middle class and stable economic growth. Indonesia is in list of MINT economies (Mexico, Indonesia,Nigeria and Turkey), namely those that were the most attractive to long-term investors due to their favorabledemographic profiles. Indonesia’s debt to GDP ratio has steadily declined from 83% in 2001 to be less than 26%by the end of 2013, the lowest among ASEAN countries, aside from Singapore, which has no government debt.As a result, the Republic continued to receive good reviews. The rating reflects Indonesia’s resilience to the globalfinancial crisis, improving government and external credit-metrics, and an ability to manage domestic politicalchallenges to the reform agenda.

Fitch Ratings (November 15, 2013) : affirmed Indonesia's sovereign credit rating at BBB- level with stableoutlook.Rating and Investment Information, Inc (October 11, 2013) : affirmed Sovereign Credit Rating of the Republicof Indonesia at BBB-/stable outlook.Japan Credit Rating Agency, Ltd (July 22, 2013): affirmed Indonesia’s foreign currency long-term seniordebt at BBB- with stable outlook. S&P (May 2, 2013): affirmed Indonesia’s sovereign credit rating, at BB+ levelfor long-term.Moody’s Investors Service (January 18, 2012): upgraded Republic of Indonesia’s foreign and local-currencybond ratings to Baa3 with stable outlook.

INDONESIA COUNTRY FACTSHead of State : President Joko WidodoCapital : JakartaTotal area : 1,919, 440 sq.kmPopulation : 245 million (2012)Language : Bahasa IndonesiaReligion : Muslim, Christian, Catholic, Buddhism, HinduismCurrency : Rupiah (US $1 = 12,400 Rupiah January 2015)GDP Growth rate : 5.8% (2013)Main Islands : Java, Sumatra, Sulawesi, Kalimantan, Papua, BaliNatural Resources : Petroleum, Tin, Natural Gas, Nickel, Timber,Bauxite, Copper, Fertile Soils, Coal, Gold, SilverAgricultureProducts: Rice, cassava (tapioca), peanuts, rubber, cocoa, coffee, palm oil,

CopraMajorIndustries : Pulp and paper, cement, basic metals and fertilizer, power generation, telecommunication, transportationMajor Exports : Textile, electronic goods, footwear, oil & gas, plywood,

sawn timberMajor Imports : Chemical and pharmaceutical, fertilizer, cotton yarns, textile fabric,

machines, motor vehicles.

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BALANCE OF TRADE OF INDONESIA - Period : 2009-2014 (Sep 2014)(Value : Million US$)

Source: BPS, Processed by Trade Data and Information Center, Ministry of Trade

WHY INDONESIA - SOUND ECONOMYLarge population : Indonesia is literally a giant. Its market alone exceeds some 240 million people, making it the fourth largestcountry in the world in terms of its population after China, India, and the United States. Business should cater the needs of 65 millionhouseholds. About 138 million or about 60 % live on the island of Java, the most densely populated island in the country. Thosenumbers also translate into a vibrant labour force of skilled and educated workers.

A vast and fertile land rich in natural resources : The second reason why Indonesia is a perfect place for business is its vastand fertile land that enriches its natural resources. Ranked as the 16th largest country in the world, Indonesia, with its tropical climateand humidity, is rich in natural resources. Indonesia's crude palm oil is ranked as the first in the world, while its tin and cocoa occupythe 2nd position. Other natural resources such as nickel, gold and copper are ranked 5th, 7th and 8th,respectively, as well asnumerous marine resources.

Large numbers of Small and Medium Enterprises : The business people in Indonesia (42 million), of which mostly aredominated by local private business entrepreneurs, have built their small and medium enterprises while managing to make millionsof profit. This fact shows that the economy in Indonesia is not solely run by giant business companies, but also by simple localbusinessmen who have started with few pennies and turned them into businesses worth thousands of dollars.

Strategic location: vital international transport routes : Indonesia is located between 2 continents (Asia and Australia) and2 oceans (Pacific and Indian) which puts it in a strategic location for international transport routes. One of the most importanttransport routes vital for international transport and used by international shipping for business purposes is the Malacca strait.Malacca strait lies between Malaysia and Indonesia (Sumatera island). Many ships navigate through the Malacca strait en route toAustralia and other Asia countries.

Open and liberal market economy : The ASEAN Free Trade Area (AFTA) has now been virtually established. ASEAN MemberCountries have made significant progress in the lowering of intra-regional tariffs through the Common Effective Preferential Tariff(CEPT) Scheme for AFTA. The Free Trade Area will usher in the market economy in Indonesia with its open and liberal policies. Everysector in Indonesia is open for investment. With the simplification of rules and regulations, Indonesia's market economy will beopenly accessible for foreign investors.

INDONESIA - TRADE & INVESTMENT OPPORTUNITIES

Indonesia Trade & Investment Opportunities (Special Edition 2015) 3

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FOREIGN DIRECT INVESTMENT IN INDONESIAINVEST IN REMARKABLE INDONESIA

Indonesia is your investment destination. Abundant natural resources, a young and technically trained work forceand a large and growing domestic market, combined with an improving investment climate and a higher globalprofile, are just a few of Indonesia’s salient strengths. With stability firmly planted after 16 years of vibrantdemocratic rule, Indonesia’s vast economic potential is primed for takeoff. Invest in remarkable Indonesia.Forgeneral outlook on investment in Indonesia, please visit the Regional Investment Website (SIPID)http://regionalinvestment.bkpm.go.id/newsipid/index.php?lang=en

Indonesia Trade & Investment Opportunities (Special Edition 2015) 4

SOUND ECONOMY

With the GDP expected to reach US$ 1trillion this year,Indonesia is the largest economy in Southeast Asia.

INVESTMENT CLIMATE

BKPM has launched a one-door integrated service(PTSP) and an electronic automation platform forinvestment licenses and non-licensing services (NSWi)

DEMOGRAPHIC

Indonesia is the 4th most populous nation in the world.Apart from its remarkable fiscal and politicaltransformations during the last decade, Indonesia is alsoundergoing a major structural shift in terms ofdemographics.

GLOBAL INFLUENCE

Indonesia lies at the intersection of the Pacific Ocean,along the Malacca Straits and the Indian Ocean.

POLITICAL STABILITY

Underlying Indonesia’s vibrant economy is politicalstability. A decade ago, many analysts envisaged thatcertain break-away provinces would bring aboutIndonesia’s “balkanization”.

NATURAL RESOURCES

Indonesia is a renowned market for resource extraction,seen as even more attractive than for instance, SouthAfrica,

DOMESTIC MARKET

Havingg the 4th largest population in the world, Indonesiahas a large domestic market to offer, over 53% of whichlives in urban areas and adopts a modern lifestyle.

INDONESIA - TRADE & INVESTMENT OPPORTUNITIES

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Stronger Investment Climate : Indonesia’s economic policies areon a firm footing. So are its measures to attract foreign investment.

Below are a few of Indonesia’s latest improvements to our investmentclimate:

Investment Law No. 25/2007: This updated investment law redefines "capital investment" as all investments,whether by domestic or foreign investors, for the first time offering equal treatment to all investors. There is nolonger a limit of 30 years on foreign investment permits, and gone is the provision in Law 1/1967 for they're to bedivestment. Additionally, the new law allows for the unimpeded reparation of capital. Visit : http://www.bkpm.go.id/img/Investment_Law_Number_25-2007.pdf

One-stop-services (PTSP) and National Single Window (SPIPISE) : One Stop Services (OSS) organizescomplete Licensing and Non-licensing procedure of investment in single office that has the authority from relatedtechnical institutions or ministries to issue the Licensing and Non-licensing documents on particular sectors.Implementation of OSS in the field of investment by the Government enforced by BKPM at the Central Governmentlevel / PDPPM (The Regional Investment Board) at the provincial government level / PDKPM (The District / CityInvestment Board) at the level of local government district / municipality, on the basis of devolution / delegation ofauthority from the technical Minister / Head of the Non-department Organization (Government Officials) which hasthe authority over government affairs in the field of investment.Implementation of OSS is dedicated to provide easy,fast, precise, accurate, transparent and accountable Licensing and Non-licensing services. In addition to supportthe BKPM tasks in order to tailor competitive investment climate to support the quality of national economy. Visithttp://www2.bkpm.go.id/contents/general/16/one-stop-shop

INVESTMENT STEP BY STEP : Investors intending to invest should go through step-by-step procedure inaccordance with the prevailing laws and regulations in Indonesia. The procedure includes legal entity establishment,licenses, recommendations and facilities. The procedure for investing and doing business in the jurisdiction ofIndonesia consists of three steps :

• Step 1 : Preparation • Step 2 : Construction • Step 3 : Ready for Production/OperationVisit here for more information : www2.bkpm.go.id/contents/general/117127/investment-step-by-step

Foreign Investment in Indonesia - Important LawsTax Holiday A tax holiday regime is available for new domestic and foreign investment in specified businesssectors, under which beneficial tax treatment is granted to manufacturing projects in high priority sectors (i.e.base metals, oil refinery/ petrochemicals, machinery, renewable energy and telecommunication equipment) andremote areas. The tax holiday, which is an income tax break for five to 10 years, has been available since late2011 for newly-set up firms investing at least Rp 1 trillion (US $102.59 million).

INVESTMENT PROCEDURE* Licensing Procedure in BKPM:1.Principal license of investment is a license granted by the Central Government / ProvincialGovernment / Municipality Government (under their authority) as an initial government approvalthat must be obtained before conducting investment in Indonesia.2. Business License is a permit granted by Government / Provincial Government / MunicipalityGovernment, which is required to be obtained in order to start production / operational activitiesto produce goods or services, unless stated by the sectoral regulations. * The company is obliged to have operational license from regional and/or related ministries.UPDATE 27 March 2014

1.Started 1st December 2013, investment facilities application on Masterlist of capital goodsand materials are submitted online.2.Started 1st April 2014, BKPM conducts trial online application of Investment Principle (IP)license for companies that have not obtained legal entities. Trial term will commence for 2(two) months, while manual application in the Front Office BKPM is still permitted.3.Commencing on 1st June 2014, online application of Investment Principle (IP) license forcompanies that have not obtained legal entities must be done online.4.All online submission and complete instruction on Masterlist & IP license can be accessedvia online-spipise.bkpm.go.idVisit : http://www2.bkpm.go.id/contents/general/11/investment-procedure

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INDONESIA - TRADE & INVESTMENT OPPORTUNITIES

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INDONESIA - TRADE & INVESTMENT OPPORTUNITIES

Indonesian Investment Coordinating Board (BKPM) : BKPM is the Investment Coordinating Board of theRepublic of Indonesia. As the primary interface between business and government, BKPM is mandated toboost domestic and foreign direct investment through creating a conducive investment climate. Restored toMinisterial status in 2009, and reporting directly to the President of the Republic of Indonesia, this investmentpromotion agency's goal is not only to seek more domestic and foreign investment, but also seek qualityinvestments that improve social inequality and reduce unemployment. The agency works as a proactiveadvocate for investments as well as a matchmaker for investors. .For investment inquiries via email and phone, please contact : INVESTOR RELATIONS UNIT (IRU) P : +62 215292 1329-30 +62 21 5292 1334-35 E : [email protected] Visit : www.bkpm.go.idFor further enquiries please visit : http://www2.bkpm.go.id/contents/p20/contact-us/18

INDONESIA - KEY SECTORAL INVESTMENT OPPORTUNITIES

The Government of Indonesia is consistently sustaining the momentum of Public Private Partnership (PPP)development in order to accelerate the provision of infrastructure. The following projects summary are adoptedfrom “The PPP Book 2013”, which is primarily intended to inform potential investors, lenders and contractorsabout the opportunities available in Indonesia to become a private partner in a PPP Project. The PPP Book istherefore the presentation of PPP opportunities in Indonesia to the world. The PPP Book now consists of 27projects, arranged in three categories: potential, prospective, and ready for offer PPPs. In this 2013 edition thereare 14 prospective projects and 13 potential projects. To date, 21 projects listed in previous books have alreadygone to tender. I trust the information presented in this book will provide useful references to any party involved inthe development of PPPs in Indonesia. The PPP Book is primarily intended to inform potential investors, lendersand contractors about the opportunities available in Indonesia to become a private partner in a PPP Project. ThePPP Book is therefore the presentation of PPP opportunities in Indonesia to the world. The 2013 edition of theBook is richer in information than its, and now incorporates a description of recent regulatory changes and PPPdevelopment policy in Indonesia.Following a rigorous review and screening process in compliance with BappenasRegulation 6/2012, the PPP Book now consists of 27 projects, arranged in three categories: potential, prospective,and ready for offer PPPs. In this 2013 edition there are 14 prospective projects and 13 potential projects. To date,21 projects listed in previous books have already gone to tender. I trust the information presented in this book willprovide useful references to any party involved in the development of PPPs in Indonesia. Visit : http://www.bkpm.go.id/img/file/PPP%20BOOK%202013-compact.pdf

MASTERPLAN FOR ACCELERATION AND EXPANSION OF INDONESIA ECONOMIC DEVELOPMENTTo expedite the process of sustainable economic growth in Indonesia, the Indonesian Government developed andimplemented the Masterplan for Acceleration and Expansion of Indonesia Economic Development to drive therealization of high, balanced, fair and sustainable economic growth and provides the building blocks to transformIndonesia into one of the 10 major economies in the world by 2025.

Mapping of The Six Economy Corridors -The Masterplan identifies six economic corridors to boost economicdevelopment: 1. Sumatra, as a "center for production and processing of natural resources and as the nation's

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INDONESIA - TRADE & INVESTMENT OPPORTUNITIES

energy reserve" 2. Java, as a "driver for national industry and service provisions" 3. Kalimantan, as a "center forproduction and processing of national mining and energy reserves" 4. Sulawesi, as a "center for production andprocessing of national, agricultural, plantation, fishery, oil and gas, and mining" 5. Bali - Nusa Tenggara, as a"gateway for tourism and national food support" 6. Papua - Maluku Islands, as a "center for development of food,fisheries, energy, and national mining".

The Masterplan focuses on 8 main programs which consists of 22 main economic activities. The eight primaryprograms are: agriculture, mining, energy, industrial, marine, tourism, telecommunications, and the developmentof strategic areas. The strategic initiative of the Masterplan is to encourage large-scale investment in 22 primaryactivities: shipping, textiles, food and beverages, steel, defence equipment, palm oil, rubber, cocoa, animalhusbandry, timber, oil and gas, coal, nickel, copper, bauxite, fisheries, tourism, food and agriculture, the Jabodetabekarea, the Sunda Straits strategic area, transportation equipment, and information & communication technology.

EASE OF DOING BUSINESS WITH INDONESIAAccording to "Doing Business 2014", Indonesia is ranked 120thout of 189 economies on the ease of starting a business.

Ease of Doing Business Rank - 2014 (Out of 189)Overall Ease of Doing Business : 120Getting Credit : 86Protecting Investors : 52Starting a Business : 175 - Procedures (number) - 10 - Time (days) - 48Registering Property : 101Getting Electricity : 121Dealing with Construction Permits : 88Enforcing Contracts : 147Paying Taxes : 137Trading Across Borders : 54Resolving Insolvency : 144

To have perspectives on business related regulations and cost upon doing business in Indonesia, pleasevisit : http://www.doingbusiness.org/data/exploreeconomies/indonesia

TAXATION IN INDONESIAIncome Tax : Income tax in Indonesia is progressive and applied to bothindividual (s) and enterprises. A self-assessment method is used tocalculate the tax.

The Tax Rate For Individual(s)Taxable annual income Income Tax RateUp to Rp 50 million 5%Over Rp 50 million to Rp 250 million 15%Over Rp 250 million to Rp 500 million 25%Over Rp 500 million 30%

The Tax Rate For Corporate(s)Year Income Tax Rate2009 28 %2010 and onwards 25 %Limited Company which 40% oftheir shares trade in stockexchange market 5 % Lower than normal rateGross turnoverup to Rp.50.000.000.000 50 % deduction from normal rate

Repatriation of Profits : In the case of business profits in particular, a foreign investor will be able to transfer theprofit of his business in Indonesia straight to his homeland and convert into the currency of his homeland withoutany involvement by the central government. This is one of the advantages for foreign investors as there will be nocomplicated procedures in receiving their profits in the currency of their country. With respect to the foreignexchange systems, the central government of Indonesia does not restrict investments with regulations with theview to ease the process.Indonesia Trade & Investment Opportunities (Special Edition 2015) 7

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INDONESIA - TRADE & INVESTMENT OPPORTUNITIES

SCOPE FOR INDIA-INDONESIA BILATERAL RELATIONS

Implementation of ASEAN-India Free Trade Agreement (AIFTA) has contributed a lot to increase the trade rela-tions between our two nations. The bilateral trade between Indonesia and India has reached to US $16.99 billionin the year 2013 which has resulted to set a target of US $ 45 billion for the year 2015. This is a tremendousachievement if we compare the figure of the year 2004 when the bilateral trade figures reached only up to US $4.5billion.

Main items of India's Exports to Indonesia Petroleum products, telecommunication equipment's and parts,hydrocarbons and derivatives, oil seed, motor vehicle for goods transportation, animal feed, cotton, flat rolledproduct, alloy steel.

Main items of India's Imports from Indonesia Fixedvegetable fats & oils, Coal, Copper ores, natural rub-ber, pulp & waste paper, alcohols & phenols, hydro-carbon, machine tools, medicinal and pharmaceuti-cal products, fertilizers, paper and paperboard, car-boxylic acids, dyeing/tanning extracts, other chemi-cal products

Potential Areas of Synergy Machine tools and handtools. Forging, foundry and dies, Electric motors andswitches, Pumps and Compressors, Transmission towers, Cement, sugar and fertilizer plants, Power generatingmachinery, Computer software, Wood, paper & pulp, Palm oil, LNG & Gas

Further there is immense scope for both countries to increase their ties and cooperation in the fields of scienceand technology, agriculture, ecological conservation, information technology, biotechnology and other areas ofcommon interest.

INDIAN INVESTMENT IN INDONESIA

Indonesia Trade & Investment Opportunities (Special Edition 2015) 8

BALANCE OF TRADE BETWEEN INDIA & INDONESIA

(US $ billion)

YEAR TOTAL EXPORTSTO INDIA

IMPORTSFROM INDIA BALANCE

2006 4.79 3.39 1.40 + 1.99

2007 6.55 4.94 1.61 + 3.33

2008 10.06 7.16 2.90 + 4.26

2009 9.64 7.43 2.20 + 5.23

2010 13.20 9.91 3.29 + 6.62

2011 17.65 13.33 4.32 + 9.01

2012 16.80 12.49 4.30 + 8.19

2013 16.99 13.03 3.96 + 9.07

Source : Ministry of Trade, Republic of Indonesia

STATISTIC OF FOREIGN DIRECT INVESTMENT REALIZATION BY COUNTRY OF ORIGIN2007 – 2013

COUNTRY 2007 2008 2009 2010 2011 2012 2013

INDIAP I P I P I P I P I P I P I17 11,6 20 17.8 31 26,2 44 8,9 58 41.9 58 78.1 121 64.9

Source : Indonesian Investment Coordinating Board (BKPM):1.Excluding of Oil & Gas, Banking, Non Bank Financial Institution, Insurance, Leasing, Mining in Terms of Contracts of Work, CoalMining in Terms of Agreement of Work, Investment which licenses issued by technical/sectoralagency, Porto Folio as well as Household Investment.2. P : Total of issued Permanent Licenses3. I : Value of Direct Investment Realization in Million US$.4. Data received by BKPM until December 31, 2013

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India's investment in Indonesia is continuously increasing in various sectors such as textiles, metal, automo-tive, machinery, coal and electronics. Indian investors operating in India are among others Tata, Reliance, Bajajand TVS. While targeting the origin of the ASEAN countries, Japan, South Korea, and Taiwan which has been themain investment sources, BKPM now targets new investors from the Middle East region, China, and India. Inregards to potential investment, Indonesia offers investment opportunities in various sectors such as energy(conventional as well as renewable energies), Food, Infrastructure, Mining, Automobile, Power, Manufacturing,Agriculture, Textile and Information Technology.

Indonesia now looks India as a leading potential partner country. Lately investment has started flowing fromIndonesia to India With One Indonesian company, the Salim Group has invested in real estate and infrastructureprojects in India Other Indonesian companies who have recently expanded in India are;

Samudra Shipping Line Ltd, Mumbai - Logistics, Cargo ServicesTanindo Seeds Int, Ltd, Bangalore - Seeds, Agriculture ProductsGaruda Food, Bangalore - Food & BeveragesIndofood, Kerala - Food ProductsInbisco India Private Ltd, Chennai - Biscuits, Coffee, Candies, ChocolateJapfacomfeed, Pune - Production of poultry feed and breedingPT. Quantum Select Indonesia - Placement Services

India - Indonesia Relations: Opportunities & Challenges

Country facts: Being the 2nd and the 4th most populous and politically stable democratic countries of the world and, being richin natural resources India and Indonesia have great potential to better relation and boost bilateral cooperation in economy, tradeand investment as well as information and communication technology. So, the both countries' investors and business sectorsshould be made more aware of potential areas of trade and investment opportunities in each country respectively.

Regulations on trade and investment in Indonesia and India have yet to become more appealing to both the countries' businesssectors or companies so as to increase their interest and, later, their presence in the country respectively.

Potentials to tackle Food and Energy Security issues: India and Indonesia should take advantage of their potentials such as theirnatural resources and the advancement of agricultural technology to sustain their food and energy security of each countryrespectively.

November 2005, Indonesia and India signed a Bilateral Strategic Partnership Agreement in which the two countries agreed toincrease bilateral trade to $10 billion by 2010. This target was actually exceeded that year with total trade amounting to roughly$12 billion, tripling the $4 billion amount set in 2005;

In addition, in 2005, Indonesia and India signed a memorandum of understanding (MoU) to establish a Joint Study Group (JSG)to examine the positive aspects that would arise from signing a Comprehensive Economic Cooperation Agreement (CECA). TheCECA is to be an agreement that covers economic cooperation and trade in goods and services and investments, which wouldlead to a higher-level of mutually beneficial economic cooperation between the two countries;

In 2010, India implemented a Free Trade Agreement (FTA) with Indonesia which cut import duties on products such as seafood,chemicals and apparel. In return Indonesia slashed import duties on Indian goods.

Visa on Arrival (VOA) extended by Indonesia to Indian nationals and vice versa have increased the flow of Indian travellers toIndonesia.

The Commission of Corruption Eradication was formed in year 2002 and started operating in later 2003, the commission hasinvestigated, prosecuted and achieved a 100-percent conviction rate in 86 cases of bribery and graft related to governmentprocurements and budgets that has caused high impact on national economy. High dignitaries like the government officials,Ministers, governor and member of parlaiment have been sentenced by KPK due to their corruption and bribery acts.

Indonesia Corruption Watch (ICW) is a non-profit organization formed by a group of people committed to empowering citizensto engage and participate actively in the fight against corruption. ICW was founded in 1998 in the midst of reform movementsthat sought a post-Suharto government that was democratic, clean, and free of corruption. ICW's vision is to strengthen theposition of the people to control the country and participate in decisions leading to democratic governance.

There has been general ignorance among the Indian people about Indonesia, and vice versa. Both the countries have yet to seethe urgency of intensifying cooperation particularly in the economic, scientific and technological, and social and cultural.

The absence of direct flight from Indonesia to India since 1998 and vice versa has considerably reduced the number of visit'sof two countries' citizen. Compared to Singapore and Thailand, the number of Indonesian tourists coming to India and vice versais very low.

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Trade with Remarkable IndonesiaMake Your Visit Now

"THE 30th TRADE EXPO INDONESIA"7-11 OCTOBER 2015

at Jakarta International Expo (JIExpo), Kemayoran -Jakarta, Indonesia

Organized by : Ministry of Trade, The Republic of IndonesiaVisit : www.tradexpoindonesia.com www.kemendag.go.id

The 30th Trade Expo Indonesia 2015 is set to open on 07 - 11 October2015. Following its previous shows, Trade Expo Indonesia 2015 will show-case best Indonesian export products ranging from industrial, mining,agricultural to Craft sectors.

Last year, Tradexpo Indonesia successfully attracted more than 10.000buyers from over 100 countries, and generated in total trade transactionsvalued at over US$ 1.42 billion. The fact that thousands of buyers frommany countries come to visit Resources (Tradexpo) Indonesia every yearsdemonstrates a high commitment of our trading partners around the world; and also a solid prove that Indonesiais one of the potential and reliable suppliers of qualified and competitive consumer products.Therefore, you and your associates are cordially invited to pay a visit to The 30th Trade Expo Indonesia 2015, from07 - 11 October 2015 at Jakarta Fairground, Kemayoran, Indonesia.

Main Products : Automotive Components, Cocoa, Coffee, CPO, Electricity & Electronics, Footwear, Furniture,Rubber & Rubber Products, Textile and Textile Products,Potential Products : Essential Oil, Processed Foods, Handicrafts, Medical Herbs, Jewelry & Accessories, Leather& Leather Products, Medical Instruments & Appliances, Medical Hers, Spices.Multi products : Agricultural Products, Building Materials, Chemical Products, Food and Beverages, Glassware,Sport Equipments, Household Goods, Paper Products.

IF YOU PLAN YOUR VISIT TO INDONESIA - BUSINESS VISA APPLICATION REQUIREMENTSa.One copy of Visa application form duly filled in with one photograph (colored) affixedb.Invitation letter from the company in Indonesia directly faxed and addressed to The Consul General, ConsulateGeneral of the Republic of Indonesia, Mumbai (enclose one copy).c.Please enclose copy of KTP (Kartu Tanda Penduduk) card or KIM's.d.Covering letter (typed) from the Indian/local company (in case of business visa) addressed to The ConsulGeneral, Consulate General of the Republic of Indonesia, Mumbai, (One copy) giving details about his/her Com-pany details and profession.e.For Foreign Nationals : Applying for business visa clearance letter from Indonesian Immigration departmentrequired.f.Onward and Return ticket with two photocopies thereof.TRAVEL FORMALITIES : All travelers to Indonesia must be in possession of passport valid for at least sixmonths from date of arrival and have proof (tickets) of onward or return passage.

To have details of Indonesian Visa applicaiton please visit : http://www.kjrimumbai.net/consular/consular.htmwww.kjrimumbai.net/consular/VISA_REQUIREMENTS.htm (Visa requirement)

www.kjrimumbai.net/consular/visa_form.htm (Visa form download)www.kjrimumbai.net/consular/consularfees09.htm (Visa fees)

www.kjrimumbai.net/consular/vOA2010.htm (VOA - Visa on arrival)

INDONESIAN TRADE EVENTS CALENDAR FOR YEAR 2015

JAKARTA CONVENTION CENTRE JAKARTA INTERNATIONAL EXPO INDONESIAN EXHIBITION (JCC) (JI EXPO) COMPANIES ASSOCIATION www.jcc.co.id www.jiexpo.com (ASPERAPI) www.ieca.or.id

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IMPORTANT INDONESIAN TRADE CONTACTS AND LINKS

INDONESIAN MINISTRY OF INDUSTRYJl. Gatot Subroto Kav 52-53 Lt. II,Jakarta Selatan, Indonesia.Tel :(62-21)5256458,5251149,5200700 Fax:(62-21)5201606

Homepage : www.kemenperin.go.id

INDONESIAN MINISTRY OF TRADEJl. M.I. Ridwan Rais No.5 Blok I, Lt. III, Jakarta Pusat, Indonesia.

Tel :(62-21)3848667,6456318 Fax:(62-21)3846106Homepage : www.kemendag.go.id

DIRECTORATE GENRAL FOR NATIONAL EXPORTDEVELOPMENT

MINISTRY OF TRADE OF REPUBLIC OF INDONESIAMinistry of Trade Building II,

Jl. M. I. Ridwan Rais No. 5, 3rd, 4th, 13th, 14th Floor,Central Jakarta, Indonesia.

Phone : (62-21) 385 81 71 Fax : (62-21) 235 286 62Homepage: http://djpen.kemendag.go.id

INDONESIAN INVESTMENT COORDINATING BOARD (BKPM)Badan Koordinasi Penanaman Modal - BKPM

Jl. Jenderal Gatot Subroto No. 44, Jakarta 12190, IndonesiaTel : (62-21)5252008,5252649,5254981 Fax : (62-21)5254945

Homepage : www.bkpm.go.id E-mail : [email protected]

KAMAR DAGANG DAN INDUSTRI INDONESIAIndonesian Chamber of Commerce and Industry

Menara Kadin Indonesia Lt. 29Jalan HR Rasuna Said X-5 kav 2-3, Jakarta 12950 - Indonesia

Telepon : [62-21]-5274484 (hunting)Fax : [62-21] 5274331 - 5274332

Email : [email protected] [email protected]

Website : www.kadin-indonesia.or.id

INDONESIAN CHAMBER OF COMMERCE AND INDUSTRYIndia Committee

Chairman: Mr. Nalin RathopPT. Bakrie Global Sentura

Bakrie Tower 39th floor, Komplek Rasuna EpicentrumJl. H. R. Rasuna Said Kav. B2, Jakarta 12920, Indonesia

Tel : (62- 21)29912099; Fax : (62-21)29912090E-mail : [email protected]; [email protected]

Indonesian Chamber of Commerce and Industry

KADIN Business Support Desk (BSD)Menara Kadin Indonesia, 24th fl.,Jl. H. R. Rasuna Said X-5 Kav. 2-3,

Jakarta 12560, IndonesiaTel. +62 21 527 4503

E-mail : [email protected] : www.bsd-kadin.org

Bank IndonesiaJl. M.H. Thamrin No. 2, Jakarta 10350

IndonesiaTel : +6221 29810000 Web : www.bi.go.id

INDONESIAN TRADE PROMOTION CENTER IN INDIA

INDONESIAN TRADE PROMOTION CENTER (ITPC)3rd Floor Ispahani Center,

123/124 Nungambakkam High RoadChennai - 600034, INDIA

Phone : +91 44 4208 9196 Fax : +91 44 4208 9197Email : [email protected]

Web : www.itpcchennai.com

IMPORTANT TOURISM CONTACTS FOR INDONESIA

INDONESIAN MINISTRY OF TOURISMsapta Pesona Building, Jl. Medan Merdeka Barat No. 17

Jakarta 10110, IndonesiaTel. (62-21)383 8167 Fax. (62-21)384 9715

Web : www.budpar.go.id www.indonesia.travel

VISIT INDONESIA TOURISM OFFICE (VITO)B-31/A, Kalkaji

New Delhi 110019, IndiaPhone: +91 11 41550854

Fax: +91 11 41553034Mobile: +91 9811325456

Email: [email protected]

INDONESIAN MISSIONS IN INDIA

EMBASSY OF THE REPUBLIC OF INDONESIA50-A, Chanakyapuri, New Delhi - 110 021, India.

Tel : (91-11)26118642-47Fax : (91-11)26885460,26886763,26884402

E-mail : [email protected]

CONSULATE GENERAL OF THE REPUBLIC OF INDONESIA19, Altamount Road, Cumballa Hill,

Mumbai - 400 026, India.Tel : (91-22)23511678/23510940

Fax : (91-22)23510941E-mail : [email protected]

Website : www.kjrimumbai.net

INDONESIAN CONSULATE IN CHENNAI (HONORARY)2D,'Eldorado', 112,N.H. Road, Chennai-600 034

Tel : (91-44)28206845/28206085/28253337Fax : (91-44)28241411

E-mail : [email protected]

INDONESIAN CONSULATE IN KOLKATA (HONORARY)119 Park Street, 4C White House (4th Floor)

Kolkata 700016, West Bengal, IndiaTel : 00 91 33 22296557,22296658 F

ax : 00 91 33 22659023E-mail : [email protected]

INDIAN DIPLOMATIC MISSIONS IN INDONESIA

EMBASSY OF INDIAJalan H.R. Rasuna Said, Kav. S-1, Kuningan,

Jakarta Selatan 12950Tel : 62-21-5204150 /52 /57 /5264931

Fax : 62-21-5204160, 5265622, 5264932, 5226833Web : www.indianembassyjakarta.com

CONSULATE GENERAL OF INDIA19, Jl. Uskup Agung A. Sugiopranoto, Medan (Indonesia)

Tel.+62 61 4531308/ 4556452 Fax. .+62 61 4531319E-mail: [email protected] : www.congendiamedan.or.id

INDONESIAN IMPORTANT WEBSITES

Indonesian National Portal : www.indonesia.go.idIndonesian Ministry of Industry : www.kemenperin.go.idIndonesian Ministry of Trade : www.kemendag.go.idIndonesian Coordinating Ministry Economy: www.ekon.go.idMinistry of Tourism : www.indonesia.travelIndonesian Ministry of Foreign Affairs : www.kemlu.go.idIndonesian Investment Coordinating Board : www.bkpm.go.idBank Indonesia (Indonesian Central Bank) : www.bi.go.idIndonesian Central bureau of Statistics : www.bps.go.idDirectorate General for Customs & Excise : www.beacukai.go.idIndonesian Daily News (English) : www.antara.co.idIndonesian Daily News (English) : www.thejakartapost.comIndonesian Yellow Pages : www.yellowpages.co.idIndonesian site for expatriates : www.expat.or.idJakarta Convention Centre - Calendar : www.jcc.co.idIndonesian Exhibition Companies Asscn : www.ieca.or.idJakarta Int'l Fair Grounds - Calendar : www.jiexpo.comIndonesia Companies & Market Research : www.disb2b.comConsulting Group - Industrial Report : www.cic.co.idCastle Asia on Indonesia : www.castleasia.com

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