RECENT WORLDWIDE ACCLAIM “Prudent fiscal policies ” World Bank 2014 “ Remains an excellent opportunity for investment” McKinsey “ An economy driven by domestic consumption” Standard Chartered Bank Economic Analyst “Most optimistic middle class in the world” Nielsen “Steady economic growth in climate of political stabilit y” Bain & Company

254,000,000 Population (estimated June 2014) 74,000,000 Middle Class US$3,234 Per Capita Income 92.8 % Literacy

5.8% GDP Growth Largest Economy 3 In Asia (World Bank) Moody’s Indonesia’s sovereign rating :stable, external pressures manageable

Ranking in Global Competitiveness Index: Indonesia moved from 74 th in 2005 to 38th in 2013 US$2,058 Billion GDP 3-5% Inflation

53% Urban Population produce 74% of GDP 25 Cities home to at least 500,000 Middle Class 55Million Skilled Workers 0.5 Trillion market opportunity In consumer serviced, agriculture & fisheries, resources and education

Home to 15 million Cars 67 MILLION Motorcycles Cars: 5.5 MILLION Motorcycles: 8.5 MILLION Jakarta vehicle numbers: 14 million Jakarta Total Road 7650 Km 2 Meters per Car, if all came out same time it’s 11,000 Km World bank

99% Own mobile phones 250 Million (Sept 2013 ) Nobody is Working! Indonesian spent 181 minutes per day on smartphones Highest in the World

36 MILLION Internet Users

OUTLOOK

Over the next 15 years, Indonesia will gain 80 million new consumers, accounting for 40% of the new consumers in the Association of Southeast Asian Nations (Asean) over that period. 1 1

Estimates by the Brookings Institution indicate that Indonesia will become the fourth-largest middle-class country by 2030, behind India, China and the US.

Indonesia’s high consumer confidence scores consistently top and Indonesians typically report household budget flexibility that far exceeds the global average. Nielsen Global Rankings)

Modern retail sales in urban areas across Indonesia are expected to grow an average of 7.3 percent/year during 2012 to 2017 (Euromonitor).

46%of the products were categorized as premium, 32 percent were mainstream, and 22 percent were value-oriented. ( Nielsen study on 13 fmcgs) About 60 percent of the products that make up the super-premium basket are discretionary items in categories such as chocolates, biscuits and moisturizing creams. (Nielsen Global Rankings) Indonesian Shopping Basket

Companies will look to launch more high-end brand variants to cater to demand among upper- income consumers (whose purchasing power is likely to remain strong even in the midst of a weak economic environment) and ensure healthy profits.

Many companies will offer products in smaller packaging sizes in order to be able to offer more affordable prices aiming to expand their consumer bases to reach more price-sensitive consumers from lower to middle income groups.

Regional Economic Growth ECONOMIC GEOGRAPHY 17,000 Islands 1,904,569 sq km 5,271 km Length (N-S) 2,210Km Breadth (E-W) 673 Airports

2,6% Bali dan Nusa Tenggara 5,5% Jawa 57,49% 21,31% Sumatera 5,8% Kalimantan 7,31% Sulawesi 20 Sumber: SP 2010 Population Distribution

Population Indonesia by age. Median age 26.2 AGE

The majority of fastest growing cities are outside Java.

Indonesia's Population is Growing and Becoming More Affluent

Tourist Arrivals 8.5 million (2014 Estimate)

Projected to be top in region in Internet usage

Indonesia’s retail landscape is still dominated by traditional trade and small-format outlets

Dollar flies high Back to Normal

“Always Friendly”“ Strong! Are you? Yesterday Presidential Elections, Whatever the outcome, it looks good.

INDONESIA. Strong. Are you?INDONESIA. Strong. Are you?

Thank You