#1EMBASSY OF THE REPUBLIC OF INDONESIA BERLIN ASEAN INDONESIA 2023 卷 38th TRADEXPO Indonesia Exhibition | Seminar | Business Matching | Trade Mission Indonesia is B.I.G " Boosting green Infrastructure as Growth driver Bayu Wicaksono Asia-Pasific Forum Bayern Trade Attache Nürnberg, 26 July 2023#2Indonesia is a key player on the global stage--large size, strategic location, and rich natural resource endowment OVERLAY INDONESIA - EUROPE Copenhagen 38th TRADE XPO Indonesia Exhibition Seminar Business Matching Trade Mission Largest archipelagic in a strategic location with the world's fourth largest population Dublin Roma MOSCOW Sochi 17,500 islands with +108,000 km of coastline Population of 278 million people Located along major sea lanes connecting East Asia, South Asia and Oceania Twitter @havasoegroseno Rich in energy transition mineral reserves and high RE potential World's 2nd 6th biggest 7th biggest All bauxite Cu copper reserves reserves World's biggest Ni nickel reserves Sn biggest tin reserves 1. Renewable energy includes solar, hydro, wind, bioenergy, geothermal, and Ocean Source: Dukcapil, ESDM, Statista 437.4 GW of potential RE¹ ASEAN INDONESIA 2023 2#3Despite Global Turmoil, Indonesia's Macroeconomic Indicators are one of The Best in G20 Countries TRADE 38th PO Indonesia Exhibition Seminar Business Matching Trade Mission Strong Economic Growth Low Inflation rate Low Government Debt Stable Stock Performance Stable Exchange Rate ASEAN INDONESIA 2023 GDP Growth% 1Q23 - G20 Countries Latest Inflation% - G20 Countries Gov Debt to GDP% 2022 - G20 Stock Index YTD2023 Countries - G20 Countries Exchange Rate YTD2023 - G20 Countries India 6,1 Argentina 114,0 Japan 266 Turkey 39,6 Indonesia 5,0 Italy 151 UK 8,7 Japan Taiwan South Korea 25,3 Mexico 13,8 20,7 Brazil 10,8 US 137 15,5 K 5,1 China 4,5 Italy 7,6 Italy 14,9 Singapore 131 Indonesia Turkiye 4,0 Germany 13,8 Australia 7,0 Spain 118 Eurozone Eurozone 12,8 3,5 719 Spain 3,8 South Africa 6,3 France 113 US - S&P 12,7 India | 1,0 Canada 113 Germany 6,1 Mexico 3,7 Vietnam 12,4 Vietnam 0,4 UK 96 Euro Area 6,1 Spain 12,1 Canada 2,2 Euro Area 96 Hong Kong -0,3 Netherlands 6,1 France 10,2 India 89 Philippines -0,3 Netherlands 1,9 Mexico 5,8 Mexico 10,1 Argentina 81 Singapore -1,0 | Italy 1,9 Brazil 8,4 Singapore 5,1 Brazil 80 Taiwan Turkiye 3,8 -1,2 | Japan 1,9 France 5,1 China 72 India 3,4 Thailand -1,7 | Canada |4,4 South Africa 70 US 1,6 China 2,0 Australia -2,0 | US 40 Germany 69 US Dow Jones 1,8 Souh Korea Euro Area 1,0 -3,3 Netherlands 52 Indonesia 4,0 South Africa ■ 1,4 China -4,7 South Korea 1,0 Mexico 52 Brazil 3,9 Australia | 0,6 South Korea 47 Malaysia -5,7 France 0,9 South Korea | 3,3 UK -0,4 Turkey 42 Philippines -0,7 Japan -8,6 Singapore |0,4 Japan | 3,2 Switzerland 41 Singapore 18 South Africa -8,7 UK |0,2 Spain | 3,2 Indonesia 40 Indonesia -2,7 Russia -12,6 Russia | 2,5 Australia 56 Hong Kong 5,0 Turkey Germany -0,5 -27,7 Switzerland | 2,2 Saudi Arabia 33 Malaysia -7,1 Argentina -29,3 Russia -1,8 China 0,2 Russia 18 Thailand -10,8 Source: CEIC, Bloomberg, The Economist, European Commission, Consensus Economics, IMF; as of 27 June 2023 3#4Driven by Strong Macroeconomic Performance, Including Stable Investment Performance and Strong Export Growth 38th TRADE XPO Indonesia Exhibition Seminar Business Matching | Trade Mission ASEAN INDONESIA 2023 70 60 Stable Investment Performance: Capable of Double-digit Growth Investment Realization (percent, yoy) 63.6 50 42.1 FDI -Total 40 ⚫DDI 30 20 10 0 22.5 -10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2022 High Exports: Recorded a Surplus of 30 Consecutive Months Indonesia's Export (USD Billion) Realization 244 232 Projection 168 163 293 4 2019 2020 2021 2022#5Indonesia Is Ranked Second In The List Of Countries With a High-Level of Economic Optimism 38th TRADE PO Indonesia Exhibition Seminar Business Matching Trade Mission ASEAN INDONESIA ZOZ3 0 + Significant change Developed Countries Edelman Economic Optimism¹ (Percent) 58 59 55 55 58 59 68 88 64 65 61 12 72 73 73 80 Kenya Indonesia India UAE -2 -22 -9 +1 -19 -6 -7 -8 -11 Nigeria China Saudi Arabia Colombia Thailand Brazil S. Africa 43 35 36 36 28 29 30 31 46 28 26 88 23 18 19 15 12 6 -17-13-11-15 Mexico Argentina U.S. Singapore Malaysia Ireland Australia Sweden S. Korea -9 -10 -7 -10) -6 -11 n/a 11-11-20 -7 -4 Canada Spain UK The Netherlands Italy Germany France Japan Change, -6 -6-7 2022 to 2023 1. Percent who say my family and I will be better off in five years Source: Edelman Trust Barometer, 2023#6Indonesia will continue to leverage green growth initiatives as the driver of its economic growth and welcomes collaboration with global players 38th TRADE XPO Indonesia Exhibition Seminar Business Matching | Trade Mission ASEAN INDONESIA 2023 Drivers of Indonesia's green growth Large-scale deployment of renewables and accelerated CFPP retirement Accelerating EV adoption and proliferation of EV charging network Developing low-carbon liquid fuels to reduce emissions in hard-to-abate sectors Building EV battery and solar PV manufacturing value chains Leveraging forest and geological carbon sinks to remove and store CO2 emissions Targeted Sectors........ 4 How global players can partner with Indonesia Providing low-interest and concessional finance to green economy projects Providing offtake agreements for low- carbon industrial products Technology transfer for the latest low- carbon tech developments Supporting capability building initiatives for Indonesia's workforce development Engage in joint projects and studies to identify new decarbonization opportunities To achieve net zero emissions by 2060, Indonesia is trying to make an energy transition from fossil fuels to renewable energy 甲 Agriculture Waste Industry FOLU Energy Indonesia has high potential for new renewable energy, but only 11.61 GW has been installed (mostly hydro) 6#7Energy Needs for Industrial Estate and Special Economic Zones (SEZ) TRADE PO Indonesia Exhibition | Seminar Business Matching Trade Mission ASEAN INDONESIA 2023 0 1. KEK Arun Lhokseumawe Aceh Utara & Lhokseumawe, Aceh (PP No. 5/2017 - Februari 2017) Beroperasi Desember 2018 Kegiatan Utama: - Industri Energi AA 11. KEK Singhasari Kab. Malang, Jawa Timur - Industri Petrokimia dan Kimia Lainnya - Industri Pengolahan Kelapa Sawit -Industri Pengolahan Kayu - Logistik 2. KEK Sei Mangkei Kab. Simalungun, Sumatera Utara (PP No. 29/2012 Februari 2012) Beroperasi Januari 2015 Kegiatan Utama: - Industri Pengolahan Kelapa Sawit - Industri Pengolahan Karet - Pariwisata - Logistik 3. KEK Batam Aero Technic Kota Batam, Kepulauan Riau (PP No. 68/2019 - September 2019) Kegiatan Utama: - Pariwisata - Pengembangan Teknologi SLOC Malacca 12. KEK Sanur Denpasar, Bali (PP No. 41/2022 - November 2022) Kegiatan Utama: - Kesehatan - Pariwisata. 13. KEK Mandalika Kab. Lombok Tengah, NTB (PP No. 52/2014 - Juni 2014) Beroperasi Oktober 2017 Kegiatan Utama: Pariwisata 15 16 17 18 14. KEK MBTK Kab. Kutai Timur, Kalimantan Timur (PP No. 85/2014 - Oktober 2014) Beroperasi April 2019 Kegiatan Utama: - Industri Pengolahan Kelapa Sawit - Industri Energi - Logistik 19 15. KEK Palu Kota Palu, Sulawesi Tengah (PP No. 31/2014 - Mei 2014) Beroperasi September 2017 Kegiatan Utama: - Industri Logam Dasar - Logistik Type Total Potential (MW) Geothermal 8218 Wind 25013 Water 20775 16. KEK Likupang Kab. Minahasa Utara, Solar 110140 Sulawesi Utara (PP No. 84/2019 - Desember 2019) Kegiatan Utama: Ocean Current 15062 Pariwisata Biogas 14516 A 17. KEK Bitung Waste 225 Kota Bitung, Sulawesi Utara (PP No. 32/2014 - Mei 2014) Beroperasi April 2019 Microhydro & Minihydro 9649 Kegiatan Utama: - Industri Pengolahan Kelapa - Industri Pengolahan Perikanan Logistik (PP No. 67/2021 - Juni 2021) Kegiatan Utama: - Industri MRO (Maintenance, Repair, Overhaul) Pesawat 4. KEK Nongsa Kota Batam, Kepulauan Riau (PP No. 68/2021 - Juni 2021) Kegiatan Utama: -IT-digital - Pariwisata 5. KEK Galang Batang DA 6. KEK Tanjung Kelayang Kab. Bintan, Kepulauan Riau (PP No. 42/2017 Oktober 2017) Beroperasi Desember 2018 Kegiatan Utama: - Industri Pengolahan Bauksit - Logistik 10 ALKI-I 11 12 Kab. Belitung, Bangka Belitung (PP No. 6/2016 - Maret 2016) Beroperasi Maret 2019 Kegiatan Utama: Pariwisata #4 7. KEK Tanjung Lesung Kab. Pandeglang, Banten (PP No. 26/2012 - Februari 2012) Beroperasi Februari 2015 Kegiatan Utama: Pariwisata ALKI-II 8. KEK Lido Bogor, Jawa Barat ALKI-III (PP No. 69/2021 - Juni 2021) Kegiatan Utama: - Pariwisata - Industri Kreatif AL KI-III C ALKI-III B 9. KEK Kendal дл 10. KEK Gresik A Kab. Kendal, Jawa Tengah Kab. Gresik, Jawa Timur (PP No. 85/2019 Desember 2019) Beroperasi Mei 2021 (PP No. 71/2021 - Juni 2021) Kegiatan Utama: - Industri Tekstil dan Busana - Industri Furnitur dan Alat Permainan - Industri Makanan dan minuman - Industri Otomotif - Industri Elektronik Logistik Kegiatan Utama: -Indusri Metal - Industri Elektronik Industri Kimia - Industri Energi - Logistik 18. KEK Morotai Kab. Pulau Morotai, Maluku Utara (PP No. 50/2014 - Juni 2014) Beroperasi April 2019 Kegiatan Utama: - Industri Pengolahan Perikanan Pariwisata Logistik 19. KEK Sorong Sorong, Papua Barat (PP No. 31/2016 - Agustus 2016) Beroperasi Oktober 2019 Kegiatan Utama: - Industri Pengolahan Nikel - Industri Pengolahan Kelapa Sawit -Industri Hasil Hutan dan Perkebunan (Sagu) - Logistik Considering the potential of renewable energy sources in the SEZ location province, the difference between electricity demand in the coming year and current availability opportunities development of opens up the for power plants around SEZ. This opportunity opens investment opportunities both in the electricity supply and business activities 7#8There is a ripe opportunity to invest in Indonesia's EV ecosystem due to its automotive market, government support, and natural resources Large auto 38th TRADE XPO Indonesia Exhibition Seminar Business Matching | Trade Mission ASEAN INDONESIA 2023 Vehicle type Total fleet 2030 EV fleet targets market and ambition EV Passenger 20.9 mn cars targets Strong government support Motorcycles Presidential Regulation No 55 of 2019 Acceleration of the Battery Electric Vehicle (BEV) Program for Road Transportation 121.2 mn 2 mn 13 mn Presidential Instruction No 7 of 2022 Use of BEV as Operational and Individual Service Vehicles for Central and Local Government Current EV production capacity 14k/year 1 mn / year SOE Ministry Circular Letter (S- 565/MBU/09/2022) Support for the Acceleration of the BEV Program for Road Transportation Abundant resources for EV batteries #1 in the world for #6 in the world for Bauxite reserves Nickel reserves Source: Ministry of State Secretariat of Indonesia (2022), AISI, Gaikindo, Ministry of Industry, Ministry of Energy and Mineral Resources #7 in the world for Copper reserves 8#9North Kalimantan Industrial Estate Will Be the Biggest Green Industrial Park in the World Project Owner and Shareholder Structure TRADE 38th PO Indonesia ASEAN Exhibition Seminar Business Matching Trade Mission INDONESIA 2023 0 PT. Kalimantan Industrial Park Indonesia (PT KIPI) for the Green Industrial Park dan Affiliates (Blue Industrial Park) SERAWAK Pontianak Sibu O Sintang KALIMANTAN BARAT Bintulu SABAH Sandakan LABUAN Brunei Darussalam Investment and Output . Tawau Semporna Value • • Work Force Tarakan KALIMANTAN UTARA Tandjungselor PT KIKI in KIPI, North Kalimantan Area Kalimantan KALIMANTAN TIMUR Samarindal Balikpapan Investments: US$ 132.0 Billion (until 2029) Output Value: US$ 113.0 Billion Construction 100.000 employees Type of Industry Built • Operation : 60.000 employees Area: 16,400 Ha with the potential to add to 19,000 ha in phase I dan 30,000 Ha in phase II Green Aluminum, Steel, Polysilicon, Graphite New Energy Battery (Nickel Based dan LFP) Petrochemicals Solar Panel Airport Hotel and Employee Accommodation Polytechnic and Job Training Center Hydropower (10GW) and Solar Cell (10GW) for the Green area (KIPI) and Coal-fired Power Plant for the transition. Natural gas and other energy sources for the blue Industrial Park KALIMANTAN TENGAH Palangkaraya Selat Makassar KALIMANTAN Project Capacity/Year Capex (US$ Bn) Revenue/Year (US$ Bn) . Port Industrial Estate Facilities . • . Petrochemical 4*16 Million ton 56.0 67.0 Aluminum smelter 1,5 Million ton 8.0 7.5 Steel 5 Million Ton 1.7 2.1 Energy Source New Energy Battery 265 GWH 43.0 26.5 Industrial Silicon 1,2 Million Ton 3.7 8.3 • Polycrystalline Silicon 0,2 Million Ton 6.2 Project Phases Land & Auxiliary Facilities* 15.0 Total 132.0 113.0 Construction start : 2021 Commercial Operation: 2023 (first) 6#10Opportunity in pharma and medical device to cater the demand I. Why Invest in Indonesia Health Industry? Rising middle-class population and the rise of middle-class household income ☐ Upcoming demographic bonus ☐ Rising middle class lifestyle with increasing lifestyle-related diseases Rising health awareness in the general public Universal Healthcare Coverage as Indonesia's national priority are now supported with enhancement in multiple supporting system ☐ Indonesian government aim to achieve health system resilience, especially by improving pharma and med-devices sector ☐ As part of system transformation, Indonesia's Citizen-Health apps, integrating all patients-related records, was launched on August 2022 Current market structure offers solid growth with lucrative return which are open for majority-stake foreign ownership (as a priority sector) □ Wide market opportunity available to support the growth Major players in Indonesia have reported EBITDA Margin up to 33% in the last 5 years TRADE 38th PO Indonesia Exhibition Seminar | Business Matching Trade Mission ASEAN INDONESIA 2023 II. Innovation projects partnering with prominent industry players/institutions PHARMACEUTICAL 1. Papilloguard (HPV Vaccine) by Etana Biotechnologies Indonesia 2. Kgbio: Upgrade and Expansion of Biologic Manufacturing Facility by Kgbio (Kalbe Farma Group) 3. New TB vaccine by PT Bio Farma (SOE Pharma Holding Co). 4. Human Papillomavirus Vaccine (HPV) by PT Bio Farma Measles Rubella (MR) Vaccine by PT Bio Farma 5. 6. Indonesia Propolis for Therapy of COVID-19 by Universitas Indonesia Disclaimer: Please feel free to explore further details by reaching out to us MEDICAL DEVICES 7. Dialyser Project by PT Forsta Kalmedic Global 8. ViuMe by PT PathGen Diagnostik Teknologi 9. ColoMelt-Dx and PulmoAmp-Dx by PT PathGen Diagnostik Teknologi 10. HPV and EBV Cancer-associated infection molecular Screening Test by PT PathGen Diagnostik Teknologi 11. Cancer Prediction Model for Clinical Decision Support by PT PathGen Diagnostik Teknologi 12. CentriFlo High Flow Oxygen Therapy Device by Universitas Indonesia 13. Ventilator for ICU by Universitas Indonesia LPS/IDIC's role is to support the Bloomberg CEO Forum, a part of the G20 Summit Side Event. All information provided here should not be considered/interpreted/understood as a form of guarantee to obtain an investment offer, commitment and/or agreement. Commitment/agreement regarding investment is entirely the will of the party offering the proposal and the investor/donor. © Lembaga Penjamin Simpanan (LPS)/Indonesia Deposit Insurance Corporation (IDIC) III. Production facilities in Batang Integrated Industrial Zone (KITB) - the strategically located industrial zone Cluster 2 800 Ha Cluster 1 3100 Ha District 6 - FnB Industry Effective area: 800 Ha (8%) District 7-Township District 1- Electronic Industry Effective area: 263 Ha (16%) Electronic Industry Battery Industry District 2 - Textile Industry Effective area: 300 Ha (18%) Apparel Park 300 ha Gless Industry District 3- Automotive Industry Effective area: 665 Ha (40%) 3 domestic medical device companies will set up their plants • • • PT Tawada Healthcare; PT Jayamas Medika Industri (Onemed); and PT Mursmedic Jaya Mandiri District 8-Recreation District 5-Township District 4 - Chemical Industry Effective area: 287 Ha (17%) District 9 - Township Cluster 1 400 Ha 500 1,000 2,000 4,000 me#11Indonesia Continues to Strengthen Interconnectivity by Debottlenecking Land Transport TRADE 38th PO Indonesia Exhibition Seminar Business Matching | Trade Mission Indonesia has a concrete toll road development plan... Indonesia has accelerated toll road development significantly in the past 9 years through Trans-Jawa and Trans-Sumatra Toll Indonesia toll road development 775 km 1,848 km ...supported by solid programs for public transport development 1 Indonesia continuing development of public transport MAJ 2 SPAX mrt jakarta transjakarta 2 COMMUTER KERETA COMMUTER INDONESIA Strategic National Projects to further develop transportation modes across Indonesia 1978 - 2014 2014 - 2023 Non-exhaustive High speed railway Jakarta - Bandung* Railway KA Airport MRT Jakarta North-South * MRT Jakarta East-West * LRT Jakarta, Bogor, Depok * 17,864 km total toll road Indonesia has a detailed development plan for a total of 18 thousand km toll road connecting cities in Indonesia by 2050 Yogya - Kulon Progo Railway KA Tebing Tinggi-Kuala Tanjung Railway KA Prapat-Kota Pinang* LRT Metro Palembang Railway KA Makassar - Parepare Source: Rencana Umum Jaringan Jalan Tol PUPR; Kemenkomarves *under development ASEAN INDONESIA ZOZ3 11#12Indonesia Implements Sea Toll and Air Toll Programs to Connect and Drive Traffic Growth in The Outer Rural Areas 38th TRADE PO Indonesia Exhibition Seminar Business Matching Trade Mission ASEAN INDONESIA ZOZ3 Sea toll program grows the traffic in Eastern Indonesia through interconnectivity and economic supports Air toll program aims to grow the traffic and transform pioneering into commercial flights ☑ Since 2019, the sea toll program has connected... 130 seaports 33 main sea routes ...and propelled the growth of cargo in the east +60% (157k) ton of cargo +68% (13) fleet Since 2019, the air toll program has developed pioneering flights across Indonesia 21 coordinating points 220 pioneering passenger routes 41 pioneering cargo routes The government continues to subsidize flights operations to transform pioneering into commercial flights (fuels, labor, airport and navigation fee, ground handling, training, etc.) Source: Kemenkomarves, Kemenhub 12#1335 Infrastructures and utilities ADB 16 Consulting services letters of intention 13 Housing (LOI) have been received by IKN 11 Education team with details below: 10 Commercial and mixed-use Investment Opportunity in New Capital City 151 companies (local and foreign) have stated that they are interested to invest in IKN 110 HYUNDAI USAID TRADE 38th PO Indonesia Exhibition Seminar Business Matching | Trade Mission FINNISH GOVERNMENT ASEAN INDONESIA 2023 Roadmap to Carbon Neutral City Advanced Air Mobility Masterplan Smart City Nusantara Pilot environment and smart city solutions 10 Technology 7 Health sector Super priority sector: energy, housing, transportation, telco, water treatment and waste management. Priority sector: township management, technology, medical facility, commercial building, school and university, industrial zone. 4 State & Private Enterprises ISDB JICA 3 Goods & Services TONY BLAIR INSTITUTE FOR GLOBAL CHANGE + 1 Government Offices NIKKEI Asia Global Investor: 49 SDG tokens for development Quality control for construction, best practices Development in education and health sector ECONOMY Indonesia's Jokowi approves new list of tax holidays for Nusantara Capital authority receives 100 letters of intent, including from China, U.S. SALINAN Indonesian President Joko Widodo signed a new regulation on March 6 offering tax holidays for investments in Indonesia's planned new capital, Nusantara. (Source photo by AP and Erwida Maulia) ISMI DAMAYANTI and ERWIDA MAULIA, Nikkei staff writers March 9, 2023 17:57 JST NUSANTARA/JAKARTA - President Joko "Jokowi" Widodo has approved a new regulation that offers incentives to businesses investing in Indonesia's planned new capital, Nusantara, including tax holidays of up to 30 years and 95 years of Government Regulation No. 12 of 2023 • . • Published in 6 March 2023, Government Regulation No. 12 of 2023 on Business Licenses, Ease of Doing Business and Incentives on Investment for Private Sectors in Nusantara, is the implementing regulation as mandated in Law No. 3 of 2022 on New Capital City of Indonesia GR 12/2023 consists of 7 chapters and 73 articles: a) General Provisions; b) Business Licenses; c) Ease of Doing Business; d) Incentives on Investment; e) Monitoring; f) Evaluation; g) Others. Ministries and/or Institutions, including Ministry of Finance and Capital Authority, is currently designing implementing regulations to regulate details on the business licenses, ease of doing business and/or procedures for investment incentives as mandated in GR 12/2023. - PERAK RIAU ISLANDS Malaysia Singapore RAU SUMATRA WEST SUMATRA JAMB SOUTH SUMATRA LAMPUNG SARAWAK Java Sea Jakarta BANTEN Christmas Island Brunei NORTH KALIMANT Celebes Sea EAST KALIMANTAN Nusantara NORTH SULAWESI CENTRAL SULAWESI KMANTAN SOUTH KALIMANTAN WEST SULAWESIS NORTH MALUKU NDA SOUTH SULAWES Indonesia Banda Sea EAST JAVA BALI WEST NUSA TENGGARA EAST NUSA TENGGARA Timor-Leste ARC MALUKU Nusantara Capital Authority WEST PAPUA 13#14HOSTED BY: MINISTRY OF TRADE REPUBLIC OF INDONESIA ASEAN INDONESIA 2023 BE SURE TO VISIT TRADE 38th PO Indonesia Exhibition | Seminar | Business Matching | Trade Mission YOUR BEST PRODUCT SOURCING DESTINATION 18-22 OCT 2023 (Offline Exhibition) ICE - BSD City, Tangerang 18 OCT 18 DEC 2023 -> (Online Exhibition) Monas | Labuan Bajo | Bali | Borobudur 1. 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