#1fic Jakarta Investment Centre a city of collaboration. 444 jakarta wwwwww wwwwwww GREEN ENERGY INVESTMENT DKI JAKARTA PRESENTATION BOOK A definitive guide on macroeconomic condition, data & information, key contacts and investment projects in DKI Jakarta Province ww MARCH 2021 BANK INDONESIA BANK SENTRAL REPUBLIK INDONESIA#20000 A city of collaboration wwwwwww#360000 444 60000 90000 fic jakarta Investment Centre a city of collaboration 00000 B JAYA RAYA 2440 3#4Forewords In the last five years, the growth of Jakarta's Gross Domestic Regional Product has been around 5.98% in average, supported by investment and consumption. It is marked by major development of infrastructure, such as MRT, LRT, toll roads, offices and trade centers, hotels, housings, recreation areas and entertainment. Considering investment as the crucial part of Jakarta economic growth, the Jakarta Provincial Government commenced Jakarta Investment Centre (JIC) at June 31st, 2018, to support potential investment growth in Jakarta. Bank Indonesia-Jakarta Representative Office joins in JIC as well as collaborates in promoting Jakarta's potential investment to foreign investors in order to invest in Jakarta. JIC has been regularly publishing presentation book, as one of our program on investment promotion strategy. In this March 2021 edition, it will focus on potential investment at offices, hotels, transportation infrastructure projects, and also green investment projects. With the advantageous location and many benefit aspects, we believe that investment activities in Jakarta Province would be more attractive. Come and Grow with Jakarta, A City of Collaboration Onny Widjanarko Head of Bank Indonesia DKI Jakarta Representative Office Sri Haryati Assistant Secretary for Economy and Finance DKI Jakarta Provincial Goverment#5www MAIN INFORMATION Indonesia 01 Economic Performance Indonesia is one of the fastest growing economy in the world. Find how we perform relative to our peers. Green Investment Energy 021 Why Invest in Jakarta ? There is no better time than now to invest in Jakarta, Capital City of Indonesia. The ASEAN Biggest City for Business & Economy.#6Indonesia Economic Performance 01 wwwwwwwww#7www Strong GDP Growth' %,yoy Indonesia GDP Growth 5.05 4.96 2.97 5.06 5.01 6.0 4.0 2.0 0.0 -2.0 -4.0 -6.0 -5.32 I IV T III IV I III IV I |||||IV III IV I 2015 2016 2017 2018 2019 Favourable GDP Growth Compared to Peers² %,yoy 10.00 -2.19 -3.49 II III IV 2020 ⚫ The vaccination rollout and national policy synergy are expected to drive Indonesia's economic recovery momentum moving forward. Indonesia's economy contracted -2.19 (yoy) in the fourth quarter 2020, However it recorded a shallower contraction compared with -3.49% (yoy) in the third quarter of 2020. A fourth-quarter improvement was recorded across nearly all demand-side components and economic sectors. For the year, therefore, the economy of Indonesia shrank -2.07% in 2020. Looking forward, domestic economic growth, is projected to gradually gain momentum in 2021. • The economic improvements in the fourth quarter of 2020 were supported by stimulus realization and a positive external sector contribution. Government consumption expanded 1.76% (yoy) in the fourth quarter of 2020 due to the realization of government stimuli, dominated by social assistance disbursements, other goods and services expenditure as well as regional transfers and village fund disbursements. Meanwhile, household consumption growth recorded a shallower contraction to -3.61% (yoy) in the fourth quarter of 2020 compared with -4.05% (yoy) in the previous period in response to greater public mobility. Investment growth also experienced a slightly shallower contraction to -6.15% (yoy) in the reporting period compared with -6.48% (yoy) in the previous period. On the other hand, net exports enjoyed a positive position as export performance improved in line with economic recovery momentum in several of Indonesia's major export destinations amidst comparatively subdued import performance. • Most economic sectors recorded incremental gains in the fourth quarter of 2020. Sectors associated with healthcare as well as work-from-home and school-from-home activities continued to improve and maintained positive growth, including Information and Communication as well as Health Services. In addition, Agriculture and Education also recorded positive growth, while the Manufacturing Industry and Trade, accounting for large economic contributions, improved to experience shallower contractions. 8.80 7.40 5.00 6.10 4.00 0.00 Growth Prospect -5.00 -10.00 Bulgaria India Colombia Indonesia Institutions 2021 GDP growth (%YoY) 2021 Budget 5.0 Philippines -15.00 Bank Indonesia 4.3-5.3 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021* IMF (WEO, Jan 2021) 4.8 1. Source: Central Bureau of Statistics of Indonesia (BPS), **Including non-profit household consumption 2. World Bank (Global Economic Prospects, Jan 2021) 4.4 Source: World Economic Outlook Database - April 2020; * indicates estimated figure. ADB (ADOS Dec 2020) 4.5 Green Investment Energy 6 Consensus Forecast (February 2021) 4.5#84.00 2.00 0.00 -2.00 -4.00 Economic Improvement Trend Continues Alongwith National Economic Recovery (PEN) Program and New Normal Programs Some economic indicators indicate an improvement. Confidence in PMI Manufacture also hit a four-year level high. Increase in People's Business Credit (KUR), recovery in Consumer Confidence Index (CCI), increase in Direct Investment, and also increase in fintech lending 2019 Trade Balance (Billion USD) 20.00 Demand for People's Business Credit (KUR) IDR Trillions N 1.96 198.58 0.00 140.1 120.3 94 96.7 -20.00 22.75 -40.00 Trade Balance (Bn USD) Export-g (% YoY)-rhs -60.00 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 PMI Markit Indonesia 55 50 45 40 NG 35 30 25 52.2 27.5 Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Green Investment Energy 6 Jul-20 Sep-20 Nov-20 Jan-21 2020 721.3 2021 809.6 2015 2016 2017 2018 2019 2020 Target 30 T 100 T 110 T 120 T 140 T 190 T Total investment (FDI+DDI) Fintech Lending (Trillion IDR) In Trillion Rupiah Jan-18 Nov-18 Des-18 Jan-19 Nov-19 Des-19 Jan-20 Okt-20 Nov-20 826.3 2018 2019 117.82 124.40 2020 JAVA OUTSIDE JAVA AGGREGATE (TOTAL) Source: Bloomberg, Bank Indonesia, BPS, BKPM, Financing Policy Committee for MSMEs, IHS Markit 137.66 146.25#9Rank 50 60 70 80 90 2482 % 8 20 30 Higher rank is better 40 2007-2008 2008-2009 2009-2010 Global Competitiveness Index¹ 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018* 2019* 0 41 36 20 45 40 50 60 80 Higher rank is better (rankings at the time of annual report publication) Improving Global Perception ...with recent improvements on governance effectiveness Ease of Doing Business² ww 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 100 India 65 Worldwide Governance Indicators³ Indonesia Philippines *New Concepts by using the Global Competitiveness index 4.0 which captures the determinants of long-term growth. 120 140 Bulgana 160 Colombia 72 73 73 91 55 Indonesia 45 35 1. Source: World Economic Forum - The Global Competitiveness Report 2019; Source: World Bank - Doing Business 2020 Report; 2. 36 28 25 34 Higher rank is better 15 32 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 30 Voice and Accountability Government Effectiveness Rule of Law Political Stability/Absence of Violence Regulatory Quality 2012 2013 2014 2015 2016 2017 2018 2019 Control of Corruption Indonesia India Philippines -Bulgaria Colombia 44 60 Higher score is better 42 53 51 40 42 38 38 % Corruption Perception Index4 -India - Philippines Bulgaria - Colombia 43 42 41 41 40 38 37 36 36 34 3. 4. Source: World Bank - The Worldwide Governance Indicators 2020 Update; Source: Transparency International - Corruption Perceptions Index 2019 Report 7 Green Investment Energy#10www BBB+ BBB Investment Grade Country BBB- Investment Grade BB+ Below Investment Grade BB BB- Indonesia Rating S&P JCRA R&d Fitch Moody's B+ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Green Investment Energy 8#11JCR BBB+Stable December 2020, Rating Affirmed at BBB+/Stable "The ratings mainly reflect the country's solid domestic demand-led economic growth potential, restrained public debt, and resilience to external shocks supported by flexible exchange rate and monetary policies and accumulation of foreign exchange reserves. Additionally, the government has been maintaining the momentum of economic structural reforms even amid the pandemic, as evidenced by the enactment of the "Omnibus Law on Job Creation". Fitch Ratings BBB / Stable August 2020, Rating Affirmed at BBB/Stable The affirmation of the rating is underpinned by a favourable medium-term growth outlook and a low government debt burden compared with "BBB" category peers. S&P Global Ratings BBB Negative April 2020, Rating Affirmed at BBB, Outlook Revised from Stable to Negative "The affirmation reflects Indonesia's stable institutional settings, strong growth prospects, and historically prudent fiscal policy settings. The outlook negative reflects S&P expectation that Indonesia faces additional fiscal and external risks related to the COVID-19 pandemic in the next 24 months." MOODY'S Baa2/Stable Feb 2020, Rating Affirmed at Baa2/Stable "The affirmation of the ratings is underpinned by a number of credit strengths including Indonesia's robust and stable growth rates and a low government debt burden, preserved by consistent fiscal discipline and emphasis on macroeconomic stability - as well as persistent credit challenges." R&I BBB+ / Stable March 2020, Rating Upgraded at BBB+/Stable "The upgrade reflects the firm implementation of policies to strengthen economic growth potential on the back of a solidified political foundation. As the global spread of the novel coronavirus could strain growth in the Indonesia economy, the government and the central bank are working to shore up the economy and maintain macroeconomic stability. Given the country's underlying economic strength which remains intact, R&I expects the economy to start to recover if the epidemic is brought under control" 9 Green Investment Energy#12WHY INVEST IN JAKARTA ? 02 wwwwwwwww#13www The Largest Economy in Indonesia Growth Province Share Q4 2020 Average Growth (2015-2019) in 2019 Growth in 2020 (yoy) (yoy) Q4 Q1 Q2 Q3 Q4 DKI Jakarta 17.77% 5.98% 5.91% 5.04% -8.33% -3.89% -2.14% East Java 14.46% 5.49% 5.42% 2.92% -5.98% -3.61% -2.64% West Java 13.05% 5.35% 4.12% 2.77% -5.91% -4.01% -2.39% Central Java 8.40% 5.34% 5.33% 2.65% -5.91% -3.79% -3.34% North Sumatera 5.12% 5.16% 5.21% 4.25% -2.77% -2.60% -2.94% Riau 4.74% 2.04% 2.66% 2.11% -3.32% -1.74% -1.47% National 100% 5.16% 5.02% 3.22% -5.25% -3.42% -2.42% Source: Statistics Indonesia (BPS) 15 Green Investment Energy#14Jakarta Economic Outlook ww Household Consumption and Investment Growth %yoy %yoy 8.00 8.00 GDRP Growth 6.00 6.00 4.00 2.00 4.00 0.00 2.00 -2.00 0.00 -4.00 -2.00 -6.00 -8.00 -4.00 2015 2016 2017 2018 2019 2020 2021* 2015 Source: Statistics Indonesia (BPS) *Forecast from Bank Indonesia • 2017 2018 2019 2020 2021* Investment 2016 Household Consumption Jakarta economic growth also improved in the fourth quarter of 2020 in response to increasing realisation of government stimuli along with early signs of greater public mobility due to the easing of large-scale social restrictions (PSBB) policy. Jakarta's economy grew -2,14% (yoy) in the fourth quarter of 2020, rebounding from a -3,89% (yoy) in the previous quarter. • For the whole year of 2020, COVID-19 pandemic leads the slowing down of Jakarta's economic growth, mainly from household consumption and infrastructure investment. • In the mid term outlook, Jakarta's economy is expected to recover in 2021 in line with the recovery of global economy supported by vaccine availability and continued economic stimuli from government in 2021. Jakarta's economic growth will also be driven by major infrastructure projects and consumption. Green Investment Energy 16#15www Domestic Demand and Investment as Source of Growth GDRP Share by Expenditure (Q4 2020) Gross Fixed Capital Formation, 34.52% Non Profit Institution Consumption, 2.10% At current price *Source: Statistics Indonesia (BPS) Investment Share in GDRP in the Java Region (Q4 2020) Exports, 51.59% 40% 35% National 32.4% = 30% Government Consumption, 25% 19.74% 20% Household 15% Consumption, 10% 61.41% 5% 34.5% 24.1% 32.3% 28.3% 35.0% 34.7% Imports, - 67.14% 0% Jakarta West Java Central Java East Java Banten Yogyakarta At current price * Source: Statistics Indonesia (BPS) Investment contributes significantly to economic growth and to the overall development of Jakarta, including human development. With its share reaching 34.52%, investment is able to be the engine of Jakarta's sustainable economic growth. Jakarta investment is still higher than national investment ratio. Jakarta has the third highest investment ratio than other provinces in the Java region. 17 Green Investment Energy#16Services Sector ww -1.57 Processing Industry as Source of Growth GDRP Contribution by Sector Wholesale Retail, Car and Motorcycle Repairs Construction Accommodation and Food & Beverage Other Services Transportation and Warehouse Corporate Services Government Administration, Defense and... Electricity and Gas Procurement Education Services Q3 2020 -1.07 -0.76 -1.03 -1.43 -0.90 -0.91 -0.78 -0.18 -0.26 -0.31 -0.19 -0.23 -0.17 -0.07 -0.07 -0.06 -0.06 0.15 -0.04 ■Q4 2020 Mining and Excavation Water Supply -0.00 -0.02 -8.88 Agriculture, Livestock, Forestry, and Fisheries Real Estate Health Services and Other Activities 0.00 0.00 0.15 0.09 0.51 0.47 Financial Services Information and Communication -2.00 -0.50 0.59 1.30 1.29 -1.50 -1.00 -0.50 0.00 0.50 1.00 1.50 Economic growth of Jakarta in the fourth quarter of 2020 was supported by several sectors, mainly information and communication, financial services, and health services. In addition, performance of manufacturing industry sector and retail in Jakarta is better than the previous quarter. *Source: Statistics Indonesia (BPS) Green Investment Energy 18#17Large Productive Population The population of • Jakarta continuous to increase... • In 2020, the population in Jakarta was 10.56 million, with the population growth rate of 0,92% per year. On day time, the population can reach to 11.81 million, due to commuting workers from the outskirts of Jakarta. The population density was 18.6 thousand/km², the highest in the country. The population structure was dominated by productive age, with the majority of 35-39 years old. The Population of Jakarta Province Population Structure by Age (2020) 2020 10.56 65+ 2019 10.56 60-64 2018 10.47 55-59 50-54 2017 10.37 45-49 2016 10.28 2015 10.18 2014 10.08 2013 9.97 Age Group (year) 40-44 35-39 30-34 25-29 2012 9.86 20-24 15-19 2011 9.75 10-14 2010 9.61 5-9 2000 8.35 Million People 0-4 0 5 10 15 600000 400000 200000 0 200000 400000 600000 ■Male Female *Source: Statistics Indonesia (BPS) 23 Green Investment Energy#18Regional Human Resource Provincial Minimum Wage (IDR Million) 5.00 4.00 3.00 2.00 1.00 DKI Jakarta has variation in educational level of manpower, dominated by male manpower Minimum wage is IDR4,416,187 in 2021 (equivalent to USD310,4)* per month *BI transaction average exchange rate on Feb 26th, 2020 2009 21% Total Manpower Classified by Education Level in 2020 Higher Education (≥ Diploma) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Intermediate Education (Senior High School) 47% *Source: Statistics Indonesia (BPS) Green Investment Energy 24 Male 62% Female Elementary Education (≤ Junior High School) 32% 38% ww#19Communication Network Province Household Internet Access (%) 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 DKI Jakarta 74.32 76.96 85.7 89.04 93.33 76.93 75.78 76.99 76.16 78.42 East Kalimantan 55.03 62.68 69.06 78.98 84.17 74.43 74.47 74.3 76.36 76.88 Riau Islands 60.53 65.86 73.33 78.41 87.96 74.17 73.77 73.35 74.11 76.39 North Kalimantan 47.63 58.32 65.68 75.71 80.72 67.48 68.72 68.62 73.99 74.32 Bali 53.64 60.65 67.1 74.15 79.59 63.77 65.19 66.24 67.99 69.61 Yogyakarta 61.18 65.36 71.71 79.1 83.68 64.79 64.57 65.73 68.32 67.66 INDONESIA 41.98 47.22 57.33 66.22 73.75 56.92 58.3 59.59 62.41 63.53 *Source: Statistics Indonesia (BPS) Cell Phone Ownership (%) 27 Green Investment Energy#20www Electricity Support Electrification Ratio (%) 100% 100% 100% 2019 Installed Power (MVA) 21,866 20,872 19,880 2020* 2021* 2019 2020* 2021* * Estimated Number of Customer (Million) 2021* 2020* 2019 *Source: PT. PLN Green Investment Energy 28 4.62 4.85 5.09 Sales Trend (TWh) 41.27 41.33 34.10 32.78 31.29 28.07 2015 2016 2017 2018 2019 2020#21fic Jakarta Investment Centre 444 Jakarta a city of collaboration 555555555 wwww www GREEN ENERGY INVESTMENT 2021 wwwwwwww B AVARAVAT 333