Diese Präsentation wurde erfolgreich gemeldet.
Die SlideShare-Präsentation wird heruntergeladen. ×

Why indonesia & Why Now

Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Wird geladen in …3
×

Hier ansehen

1 von 20 Anzeige
Anzeige

Weitere Verwandte Inhalte

Ähnlich wie Why indonesia & Why Now (20)

Anzeige

Weitere von Ridho Fitrah Hyzkia (20)

Aktuellste (20)

Anzeige

Why indonesia & Why Now

  1. 1. www.kominfo.go.id @kemkominfowww.kominfo.go.id @kemkominfo 1 “ The Indonesian government has done a lot to enhance the quality of the business environment for the private sector, particularly in the last three years. “ - Rodrigo Chaves, World Bank Indonesia Country Director Investing in Indonesia : Why now? https://news.bcpriok.info/wp-content/uploads/2017/03/cropped-bg4.jpg Property of MCIT, Republic of Indonesia. For Discussion Only
  2. 2. www.kominfo.go.id @kemkominfowww.kominfo.go.id @kemkominfo WHY INDONESIA WHY NOW? 2 ▪ Steady economic growth in the past 10 years ▪ Investment grade by all major rating firms ▪ 5th largest economy in the world by 2030 ▪ 135 million consuming class by 2030 ▪ 180 million population in productive age by 2030 ▪ Significant improvement in regulatory environment as reflected in Ease of Doing Business ▪ Most aggressive infrastructure development in Indonesia’s history ▪ Extra incentive for investments in industrial, tourism and special economic zones ▪ Fiscal reform for long term sustainable growth ▪ Law reform to ease business and investment ▪ Concrete policy for eradication of corruption ▪ Citizens’ trust on the Indonesian Government is at all time high ▪ Strong investors’ confidence to invest further in Indonesia ▪ Policies reform in ICT sectors
  3. 3. www.kominfo.go.id @kemkominfowww.kominfo.go.id @kemkominfo 3 Source: Indonesia Investment2017, Bank Indonesia 2017 WHY INDONESIA? STEADILY IMPROVING ECONOMIC PERFORMANCE Source: Bank Indonesia 2017, BKPM 2017 EVEN DURING GLOBAL ECONOMIC SLOWDOWN, INDONESIA STILL RECORD REPUTABLE GROWTH THAN MOST COUTRIES 2017 ALSO MARKS THE TIME INDONESIA REGAINED INVESTMENT GRADE ACROSS ALL MAJOR RATING AGENCY
  4. 4. www.kominfo.go.id @kemkominfowww.kominfo.go.id @kemkominfo 4Source How will the global economic order change by 2050, PwC 2017 GDP FORECAST IN MARKET EXCHANGE RATE (USD in Billion) GDP FORECAST IN PURCHASING POWER PARITY (USD in Billion) No 2016 2030 1 United States 18,562 China 26,499 2 China 11,392 United States 23,475 3 Japan 4,730 India 7,841 4 Germany 3,495 Japan 5,468 5 United Kingdom 2,650 Germany 4,347 6 France 2,488 United Kingdom 3,530 7 India 2,251 France 3,186 8 Italy 1,852 Brazil 2,969 9 Brazil 1,770 Indonesia 2,449 10 Canada 1,532 Italy 2,278 16 Indonesia 941 No 2016 2030 1 China 21,269 China 38,008 2 United States 18,562 United States 23,475 3 India 8,721 India 19,511 4 Japan 4,932 Japan 5,606 5 Germany 3,979 Indonesia 5,424 6 Russia 3,745 Russia 4,736 7 Brazil 3,135 Germany 4,707 8 Indonesia 3,028 Brazil 4,439 9 United Kingdom 2,788 Mexico 3,661 10 France 2,737 United Kingdom 3,638 WHY INDONESIA? INDONESIA IN POSITION TO BREAK THE TOP 5 LARGEST ECONOMY
  5. 5. www.kominfo.go.id @kemkominfowww.kominfo.go.id @kemkominfo 5 Source: Taking Advantage of the Demographic Dividend in Indonesia, UNFPA 2015 Indonesia An Inevitable Choice of Economic Transformation, Waltham Economy of Asia Review, 20114 Unleashing Indonesia Potential, McKinsey Global Institute 2012 Antara News, 2016 WHY INDONESIA? GROWING PRODUCTIVE POPULATION AND CONSUMING CLASS ESTIMATED 180M POPULATION IN PRODUCTIVE AGE, AT THE PEAK OF DEMOGRAPHIC DIVIDEND 90 MILLION INDONESIANS COULD JOIN THE CONSUMING CLASS BY 2030
  6. 6. www.kominfo.go.id @kemkominfowww.kominfo.go.id @kemkominfo 6 “ We are once again confronting challenging times in Indonesia. The world looks full of uncertainty and risk. What does it all mean? It means that today is the time to invest - the best time to invest. “ President Joko Widodo at Singapore-Indonesia Business Dialogue 2017 http://www.todayonline.com/sites/default/files/styles/photo_gallery_image_lightbox/public/23111382.JPG?itok=WXPxxh-8 Property of MCIT, Republic of Indonesia. Not for redistribution.
  7. 7. www.kominfo.go.id @kemkominfowww.kominfo.go.id @kemkominfo 7 WHY NOW? NEW CENTERS FOR ECONOMIC GROWTH Special Economic Zones Industrial Zones Strategic National Tourism Zones Source: Coordinating Minister for Economic Affairs, 2017 NEW ECONOMIC ZONES TO SPUR MORE EQUAL AND DIVERSED GROWTH NEW INFRASTRUCTURES TO SUSTAIN GROWTH ▪ 2650 km public roads ▪ 1000 km toll road ▪ Rapid transit bus in 29 cities ▪ MRT in 6 metropolitans and 17 large cities ▪ 24 sea ports ▪ 60 ferry ports ▪ Increase number of vessels ▪ 15 airports ▪ Increase pioneer flights ▪ 2159 km city rails ▪ 1099 inter-city rails ▪ 97.2% electrification ▪ 35000 MW power plan ▪ 33 Dams ▪ 30 hydroelectric power plants ▪ Irrigation systems for 1 m ha ▪ Oil refineries with 2 300.000 barrel capacity ▪ Increase the capacity of existing oil refineries
  8. 8. www.kominfo.go.id @kemkominfowww.kominfo.go.id @kemkominfo 8 • Deregulation • Strategic Project Acceleration • Encouraging housing for low- income I • 3 Hours Permit Issuance Program • The abolition of VAT for the transport industry • Integrated Logistics Facility II • Lowering Fuel and Electricity Price • Simplification of Land Permit for Investment activity • Expanding Small Business Loan Recipients III • Fair Wages system, simple and can be projected • The ease and affordability of Small Business Loans IV • Decrease in Tax Revaluation of Assets • Eliminating double taxation of REITs V 5 Nov 2015 • Development of SEZ • Ease of Water Supply • Simplifying the Import Licensing for Pharmaceutical products VI 4 Dec 2015 • Acceleration of Land Certification Process • Tax Incentives for labor intensive industry VII 21 Dec 2015 • One Map Policy • Refinery construction • Incentives for the Aviation Industry VIII 27 Jan 2016 • Acceleration of Construction for Electrical Infrastructure • Meat Price Stabilization • Deregulation in the Logistics Sector IX 11 Feb 2016 • Ease of Investment Restrictions X 29 Mar 2016 • Publishing REITs and KURBE (export- oriented business loans) • Indonesia Single Risk Management - ISRM • Pharmaceutical Industry Development XI 28 Apr 2016 • Simplification of Licensing Procedures, Duration and Cost of Starting a Business in Indonesia XII E C O N O M I C P O L I C Y P A C K A G E I N D O N E S I A 2 0 1 5 - 2 0 1 99 Sep 2015 29 Sep 2015 7 Oct 2015 15 Oct 2015 23 Oct 2015 24 Aug 2016 • Accelerating development of affordable housing, by reducing, integrate, and accelerate the licensing process XIII 10 Nov 2016 • Creating a roadmap for the nation's e- commerce industry: • easing and widening access to funding • offer tax incentives, etc. XIV WHY NOW? ECONOMIC POLICY PACKAGES FOR BUSINESS AND INVESTORS 15 Jul 2017 • Cost reduction for freight and logistics • Opportunities for logistic insurance and vessel maintenance • Strengthening National Single Window XV STIMULUS TO HELP BUSINESS AND INVESTORS DURING GLOBAL ECONOMIC SLOWDOWN 31 Aug 2017 • Task Force for business licensing process, checklist licensing at economic zones and data sharing for licensing • Regulator reforms and single submission system XVI
  9. 9. www.kominfo.go.id @kemkominfowww.kominfo.go.id @kemkominfo 9 ▪ Central Government Task Force and Provincial Units ▪ Multi-sectors, from logistics, public services to education ▪ 17,600 reports in the first 50 days ▪ By July 2017 : 917 sting operations, 1834 suspects processed and Rp 17 billion confiscated ▪ Presidential directive to halve 42,000 existing regulations by 2019 ▪ By end of 2016, 324 regulations were revoked and 75 regulations were revised across 20 Ministries and 3,143 regulations in Ministry of Home Affairs and at Local Governments level ILLEGAL LEVIES ERADICTION TASK FORCE [SABER PUNGLI] SIMPLIFICATION OF REGULATION WHY NOW? CONCRETE MEASURES FOR LAW REFORM Areas of Law Reform package I : 1. Legislation management 2. Reforming law enforcement agencies 3. Creating legal culture I 26 Oct 2016 Areas of Law Reform package |I : 1. Simplification of regulations 2. Accessibility of legal assistance 3. Early warning system for radicalism and terrorism II 17 Jan 2017 LAW REFORM PACKAGES TO IMPROVE BUSINESS AND INVESTMENT CLIMATES Source: Setkab, 2016, Kompas 2017, Detik 2017
  10. 10. www.kominfo.go.id @kemkominfowww.kominfo.go.id @kemkominfo 10 Source: Government at a Glance 2017, OECD WHY NOW? HIGH CONFIDENCE ON INDONESIA TRUST OF INDONESIAN CITIZENS TO THE GOVERNMENT IS AT ALL TIME HIGH INVESTORS WILLINGNESS TO INCREASE INVESTMENTS PLACED INDONESIA AS 3rd in ASIA Source: Asia Business Outlook Survey 2017, The Economist Corporate Network 2017
  11. 11. www.kominfo.go.id @kemkominfowww.kominfo.go.id @kemkominfo 11 WHY NOW? COMPETITIVENESS AND REGULATORY ENVIRONMENT (Rank) 2014 2015 2016 2017 Singapore 1 3↓ 2↑ 2 - Malaysia 17 22↓ 23↓ 24↓ Thailand 46 46 - 46- 26 ↑ Indonesia 120 106 ↑ 91 ↑ 72 ↑ Viet Nam 93 91 ↑ 82 ↑ 68 ↑ (Rank) 2014 2015 2016 2017 Singapore 2 2 - 2 - 3 ↓ Malaysia 20 18 ↑ 25 ↓ 23 ↑ Thailand 31 32 ↓ 34 ↓ 32 ↑ Indonesia 34 37 ↓ 41 ↓ 36 ↑ Viet Nam 68 56 ↑ 60 ↓ 55 ↑ EASE OF DOING BUSINESS GLOBAL COMPETITIVENESS RANK 2019 40 Source: World Economic Forum 2017, World Bank 2017
  12. 12. www.kominfo.go.id @kemkominfowww.kominfo.go.id @kemkominfo 12 WHY NOW? ICT POLICIES UPDATE DEVICES NETWORKS APPLICATIONS ▪ Domestic component requirements ▪ Certification process for mobile, handheld and tablet computers ▪ Affirmative policy to ensure universal access of telecommunication ▪ Business Classification: Digital Platform ▪ Safe Harbor ▪ Revision of GR 82/2012: Data localization ▪ Over the Top Service ▪ Next Indonesia Unicorn
  13. 13. www.kominfo.go.id @kemkominfowww.kominfo.go.id @kemkominfo 13 WHY NOW? PRESIDENTIAL DECREE NO.74/2017: INDONESIA DIGITAL ECONOMY ROADMAP 31 INITIATIVES TO BE COMPLETED IN 1-YEAR-TIME Source: Kominfo 2017
  14. 14. www.kominfo.go.id @kemkominfowww.kominfo.go.id @kemkominfo 14 Thank You
  15. 15. www.kominfo.go.id @kemkominfowww.kominfo.go.id @kemkominfo SUPPLEMENT 1 PALAPA RING Source: Kominfo 2017
  16. 16. www.kominfo.go.id @kemkominfowww.kominfo.go.id @kemkominfo 16 SUPPLEMENT 2 INCENTIVES AT SPECIAL ECONOMIC ZONES 1. Income Tax (PPh) a. Main activity: ▪ > Rp 1 T investment : 20-100% reduction of PPh for 10-25 years ▪ Rp 500 B- 1 T investment: 20-100% reduction of PPh for 10-15 years ▪ <Rp 500 M investment: 20-100% reduction of PPh for 5-15 years for special activity 2. Value Added Tax and Sales Tax on Luxury Goods (PPN and PPnBM) ▪ Import: not imposed ▪ Transaction between entities in Special Economic Zone: not imposed ▪ Transaction between entities in different Special Economic Zone: not imposed 3. Custom and Duties ▪ Import: free custom and postponed import duties ▪ From Special Economic Zone to domestic market: import duties follows the prefential tariff based on domestic components 4. Property ownership (Special Economic Zone for Tourism ▪ Free of PPnBM and PPn for luxurious goods ▪ Foreigners/foreign business entities can own property built on land based on agreement with rights holder of the land 5. Main Activity in Tourism • Qualify for Local Tax reduction • Qualify for Local Retribution reduction b. Outside of main activity (Tax allowance) ▪ 30% reduction of net income for 6 years ▪ Earlier depreciation and amortization ▪ 10% PPh dividend paid to foreign tax payer (WPLN) ▪ Compensation for losses 5-10 years Source: Coordinating Ministry for Economic Affairs 2017
  17. 17. www.kominfo.go.id @kemkominfowww.kominfo.go.id @kemkominfo 17 Source: Bank Indonesia, 2017, Bloomberg 2017 “More upgrades are possible, with Fitch and Moody’s potentially moving Indonesia up the scale further into investment grade. All these may be a cause for a raucous celebration, but also quiet reflection. Tough reforms got Indonesia to this point. ” - Wellian Wiranto, Oversea-Chinese Banking Corp. “This is a well-deserved upgrade thanks to its prioritization of fiscal sustainability at the expense of growth in 2016,” - Trinh Nguyen, Natixis SA Hong Kong CREDIT RATING AS JULY 2017 THE INVESTMENT GRADES WERE HARD EARNED THROUGH SERIOUS REFORM BY THE GOVERNMENT SUPPLEMENT 3 INVESTMENT GRADE BY MAJOR RATING FIRMS
  18. 18. www.kominfo.go.id @kemkominfowww.kominfo.go.id @kemkominfo 18 SUPPLEMENT 4 INVESTORS’ CONFIDENCE Source: BKPM, 2017 GROWTH OF GDP CONTRIBUTION IS OBSERVED ACROSS ALL TOP SECTORS (in USD b, YoY growth 2016) CONSISTENT INCREASE IN INVESTMENTS IN THE PAST THREE YEARS 4.3% 3.3% 3.9% 5.2% 1.1% 7.7% 8.9% 3.2% 8.9% 3.8%
  19. 19. www.kominfo.go.id @kemkominfowww.kominfo.go.id @kemkominfo 19Source: Kominfo 2017
  20. 20. www.kominfo.go.id @kemkominfowww.kominfo.go.id @kemkominfo 20

×