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BISEA ROADSHOW TO THE UK 2017
DOING BUSINESS IN INDONESIA A country too Big to Ignore CHRIS WREN Executive Director of BritCham Indonesia
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CHAMBER BACKGROUND BritCham Indonesia is regarded as the most active foreign Chambers in Indonesia and with a large membership base of more than 1000 nominees from 240 corporates based in Indonesia, plus overseas membership. Proud to have engaged positively with the Indonesian Government and remains very pro-active both in the UK and throughout South East Asia in promoting business opportunities in Indonesia. Core Services: Feedback Lobbying Business Facilitation Services Advocacy CSR P: E: W: Stay
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British Business Centre
Chamber Background British Business Centre The OBNi provides market access support for export-focused British SMEs In 2015, BritCham Indonesia received accreditation from the British Chambers of Commerce UK Accreditation provides quality assurance across a range of services that include but are not limited to: Trade mission management Webinars / Video conferencing Business opportunities and partners Advice on local conditions, including competitors, regulation and standards Market research Pre-visit support, arranging appointments with target customers or potential business partners/agents Organisation of receptions, promotional events , for you to present your product or service P: E: W: Stay
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Economic & Political Overview Indonesia: A country too Big to Ignore
The ONLY permanent SEA member of the G20, well-positioned to influence global and regional initiatives Indonesia represents around 40% of the total GDP of ASEAN Indonesia consumer confidence has increased to 122 in Q3 2016 Indonesia’s economic growth projection 2017 is 5.3% 255 million people – 60% of the population in under the age of 30 In 2015, President Joko Widodo wrapped up his visit to the UK by sealing investment deals worth a total US$19 billion with number of British giants such as BP, Jardine Matheson Group and HSBC Foreign companies keen to invest in Indonesia need to liaise with the Investment Coordinating Board Guidance for foreign companies to see whether their sector of interest are viable for investment is called the “Negative List”. It consist of sectors that are closed, open and with conditions to investment. Source: ASEAN Economic Bulletin 2016, World Bank 2016, Nielsen 2016, McKinsey 2016 P: E: W: Stay
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Doing Business in Indonesia
Where Will Business Consider To Expand In 2017? 26% of business owners have expansion plans in Indonesia for 2017 Surabaya, Bandung, & Medan are increasingly considered as expansion targets for expanding the business Source: Joint European Chamber’s Business Confidence Index 2016 P: E: W: Stay
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Challenges Every country is different – a careful approach is need for Indonesia Law changes and implementation sporadic, red tape, lack of legal certainty; regulatory environment unpredictable Cultural matters – Business is done face to face P: E: W: Stay
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Challenges Source: Joint European Chambers’ Business Confidence Index 2016 P: E: W: Stay
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UK Presence in Indonesia
The UK is the seventh biggest investor, after Singapore, Japan, US, South Korea, Netherlands, and British Virgin Islands in Indonesia. Major British investors include BP, Jardine Matheson, Unilever, Shell, Standard Chartered Bank, HSBC, Premier Oil, BAT, Prudential, Rolls Royce, GlaxoSmithKline and Astra Zeneca. There is also a strong and growing UK retail presence including Marks & Spencer, Next, Debenhams, Top Shop, Ted Baker and Mothercare. P: E: W: Stay
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Key Sectors & Opportunities
Education Financial & professional services Infrastructure Oil & Gas Healthcare Retail & consumer goods Defence & Security Renewable Energy Environment ICT / Creative & media Manufacturing Hospitality / Tourism P: E: W: Stay
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6 Good Reasons To Invest In Indonesia
50% of ASEAN market and potential to be a regional hub The most competitive* of all BRIC and MINT markets, after China * According to WEF Booming, aspirational middle class set to reach 150 million by 2030 Track record and ongoing commitment to improving investment climate A large, youthful workforce: >50% of population aged under 30 Cost-competitive location for numerous project types Source: Indonesia Investment Coordinating Board, 2016 P: E: W: Stay
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THANK YOU ! CHRIS WREN EXECUTIVE DIRECTOR chriswren@britcham.or.id
Facebook.com/Britchamindo CHRIS WREN EXECUTIVE DIRECTOR BRITISH CHAMBER OF COMMERCE IN INDONESIA WTC 5 / Wisma Metropolitan 1, 15th Floor Jend. Sudirman Street, Kav 29-31 Jakarta 12920 Britcham_id The British Chamber of Commerce in Indonesia The British Chamber of Commerce in Indonesia Britcham_id
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