1. EU-Indonesia Business Network Exploring Business Opportunities in Indonesia via the EIBN Nicosia, 17 May 2016

2. World’s Most Populous Country 4 th 250 million Population (in 2013) 17,508 islands Biggest Archipelagic Nation 10 th World’s Largest Economy G 20 Member State after China 1 trillion USD GDP (PPP) 4,876 USD GDP per capita (PPP) IND ONESIA 2 nd fastest growing

3. Market Potential Indonesia Market Potential Challenges EU-Indonesia Business Network Sectors

4. Indonesia, Internationally Political & economic key player regionally and globally Free trade agreements with: – ASEAN – Japan – China – South Korea Member of international organizations Founding member and biggest economy of ASEAN Political & economic key player regionally and globally Free trade agreements with: – ASEAN – Japan – China – South Korea Member of international organizations Founding member and biggest economy of ASEAN Association of Southeast Asian Nations Political & economic organization 10 Member states 600 million inhabitants Association of Southeast Asian Nations Political & economic organization 10 Member states 600 million inhabitants Market Potential Challenges EU-Indonesia Business Network Sectors

5. Sustained growth rates Macroeconomic and politically stable environment Large & growing domestic consumption base Key member ASEAN Indonesia Market Potential Challenges EU-Indonesia Business Network Sectors

6. …Challenges in the Indonesian Market Market Potential Challenges EU-Indonesia Business Network Sectors

7. Market access restrictions & excessive bureaucracy Legal Uncertainty & insufficient IPR protection Poor infrastructureCorruption Challenges Market Potential Challenges EU-Indonesia Business Network Sectors

8. Market access restrictions Numerous protectionist laws in place Obtaining licenses can still be cumbersome Legal uncertainties Unclear and incoherent laws Overlapping ministerial responsibilities Insufficient IPR protection Market Potential Challenges EU-Indonesia Business Network Sectors

9. Poor infrastructure Bottlenecks & high costs of transport of goods and people Economic Master plan 2011-2025 to tackle infrastructure shortcomings Corruption Notorious, especially in public tenders Political initiatives (e.g. KPK) are improving situation Market Potential Challenges EU-Indonesia Business Network Sectors

10. The EU-Indonesia Business Network (EIBN) Market Potential Challenges EU-Indonesia Business Network Sectors

11. What is the EIBN? EIBN EKONID INA EuroCham Britcham IFCCI CCI Barcelona EUROCHAMBRES A consortium of 7 European chambers of commerce Market Potential Challenges EU-Indonesia Business Network Sectors

12. About EIBN Promotion of Indonesian market among EU companies Business support services for companies, especially SMEs, from all EU28 member states Mission Joint expertise, knowledge and experience of 7 chambers of commerce Extensive network in Indonesia and Europe Expertise Initiated & co-funded by EU, launched 2013 Located in Jakarta, Indonesia Origin & location Team of European & Indonesian experts from all 7 chambers Long-standing experience of more than 40 years in the Indonesian market Resources Market Potential Challenges EU-Indonesia Business Network Sectors

13. Knowledge Center Know- ledge Center Interactive webportal Publications Studies & Reports NewsletterDatabase Market Potential Challenges EU-Indonesia Business Network Sectors

14. Register on our Web Portal to for information and full access to our Intelligence Unit! Enquiries Helpdesk Contact EIBN market experts directly in Jakarta Inquire about tailor-made business consultations Discover the opportunities in your sector in Indonesia Business Directory Available for free EU Indonesia Business Players Direct Contact Virtual Market Place Free online services and match-making opportunities Submit & receive business opportunities Facilitated B2B interaction

15. Market Entry Helpdesk /Inquiry Pre-market check, market & sector analysis Business partner search Business delegatio n Market Potential Challenges EU-Indonesia Business Network Sectors

16. Sector Potential Market Potential Challenges EU-Indonesia Business Network Sectors Indonesia’s Sector Potential Overview Engineering Automobile Chemistry Construction & Infrastructure Electronics Information technology Environmental and sustainable technology Mining Healthcare sector Energy Food and beverage Maritime

17. Maritime Key Facts & Market Potential Key national focus: Global Maritime Axis Strategic Location: Situated between Pacific and Indian Oceans Link between Asia and Oceania Main Subsectors: Shipping, shipbuilding, port development & port management In numbers… Almost 3/4 of Indonesia’s territorial area is seawater Coastline of almost 94,156 km (4 th largest after Canada, USA, Russia) Logistics amount to almost 25% of GDP (!) Potential could reach $329.2 billion per year

18. Medical Devices & Healthcare Key Facts & Market Potential In numbers… In 2014, President Jokowi launches National Health Insurance System – 250million people Medical Devices is expected to reach annual growth rates of 10% in the upcoming years 97% of device registrations in 2015 belonged to foreign manufacturers Key Facts Increasing need for European technology, machinery and equipment Requires license from Ministry of Health – but no restrictions! Many times, training to local staff necessary as part of post-sales services Main Subsectors: dental, medical and laboratory equipment Increasing demands for health IT, food and health supplements, household healthcare devices and Islamic medicine

19. Food & Beverage Key Facts & Market Potential In numbers… Makes up 7.42% of GDP 5,865 companies in the sector 832,830 employed workers 4 th exporter of coffee in the world Food Main products & consumption: Rice, corn, soybeans Packaged foods Main Imported Products: Wheat Beverages Main products & consumption Hot coffee, soft drinks, tea To keep in mind… Halal standards!

20. ICT Key Facts & Market Potential In numbers… 3% of ASEAN GDP is brought by Indonesian telecommunications sector Largest spender on IT in South East Asia – Ranked 19 th in the world In 2013, Jakarta was largest 1 st Twitter city Indonesians are 4 th largest groups of Facebook users Improved national (inter- island) connectivity with ‘Palapa Ring’ Poor infrastructure Looking to boost e-services High (global) demand in e- commerce, e- logistics, and financial service sectors

21. EU Outreach Roadshow host cities EIBN Partner Branches Roadshows in over 13 Member States

22. Regional Coordination among the EU - ASEAN Business Networks European Association for Business and Commerce in Thailand

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25. Thank you for your attention. Questions, Comments? Get in touch with us! www.eibn.org irma.orlandi@eibn.org www.eibn.org