NICHE JUNGLE Indonesia Outlook slide image

NICHE JUNGLE Indonesia Outlook

A story of growth • • Good past growth 2.000 Indonesian GDP trend from 1986 to 2026E 1750 • • Potential for credit growth . Potential to increase FDI trade surplus (already in) A chronic trade deficit turning into a 1500 1 250 1.000 500 250 101.22 138.26 190.91 274.72 15.32 174.51 1986 255.43 755. 558.58 396.29 892.59 891.05 1988 1990 1992 1994 1996 . • Tourism expansion Growth in high value industries Source: Statista Research 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022" • Supply chain diversification from China A story of catch-up: Indonesia shares with India economic model based on internal consumption, a good demography. India small caps rerated from during 2009-2023 Mar-02: Dec-02 Sep-03 Jun-04 Mar-053 Dec-053 Sep-06 Commodity price rally improves Indonesia's terms of trade FDI (US$ billion) Not incl. Oil & Finance Energy & constr. --Primary 2024 2026* 0.9 1561.9 1458-14 0.8 1 360 26 1256.28 0.7 1 120.04 1015.49 0.6 0.5 0.4 0.3 0.2 0.1 0 FDI (as % of GDP) Not incl. Oil & Finance Indonesia ASEAN Thailand Malaysia ASEAN (ex SG) % yoy 20.0 15.0 10.0 Commodity index (Nickel + Coal + CPO), end-2004 100-RHS Current account, % of GDP (RHS) -Balance of payment, % of GDP (RHS) Source: CIMB research Credit Growth Profile Jun-16 Mar-17 Dec-17 Sep-18 5% 180 160 0% 140 -5% 120 100 -10% 80 60 40 20 0 2004 2005 2006 5.0 0.0 -5.0 10.0 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Sources: Financial Services Authority, Bank Indonesia Jan-18 Jul-18 Jan-19 Jul-19 Total Growth Working Capital Loans Investment Loans Consumption Loans Jan-20 Jul-20 Jan-21 Mar-21 May-21 Jul-21 Sep-21 Nov-21 Jan-22 2007 2008 2009 Indonesia 5.19% 7.68 7.0% Vietnam 6.03 11.7% 5.58 Malaysia 6.65 Thailand 20.0% Mar-22 Philippines 22.5% Tourism as a % of GDP 2019 Source: OECD Investment Policy Reviews: Indonesia 2020 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Manufacturing Services Potential to increase value added manufacturing Source: World Travel and Tourism Council NICHE JUNGLE
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