Vinaora Nivo SliderVinaora Nivo SliderVinaora Nivo SliderVinaora Nivo SliderVinaora Nivo Slider
Saturday, 17 November 2018


We intensively analyze major industries in Indonesia throughout
our premium articles and in-depth report for those who seek details information.

Read More



We understand how important market research is as an assessment tool to enter the market, we realize how important to provide only valid and reliable data.

Read More



If you are looking for business partner as a part of marketing strategy to expand your market into Indonesia, we are more than capable to give a hand.

Read More



Known as the “the lost Atlantis”, Indonesia has become the main supplier of several natural resources. We provide details report of the supplier

Read More

Visitors Counter

mod_vvisit_counterThis week1566
mod_vvisit_counterLast week1681
mod_vvisit_counterThis month4221
mod_vvisit_counterLast month5917
mod_vvisit_counterAll days494167

Online Now: 4
Your IP:
Today: November 17, 2018

Overview of Indonesia Investment Summit 2012

Indonesian Investment Coordinating Board (BKPM) incorporated with International Herald Tribune (IHT) has once again successfully delivered the message to local and global investors of how important Indonesia as an ideal place to invest during the Indonesia Investment Summit, which is attended by more than 500 registrants. On the first day, global economic situation was exclusively presented by Bert Hofman as a world Bank's Chief Economist for South East Asia.

Bert delivered impressive thought of Indonesian economy outlook. Another important panelists were also Enrico Tanuwidjaja from RBS, Morten Rosse from McKinsey, Tom Byrne from Moody and others. These panelists have given clear message to global investors that Indonesia is an ideal place to invest.

With the economic slowdown from US and Europe, the world's attention has been shifting to Asia. It is plotted that Asia with his ASIAN economic power would create economy balance between western and eastern world. Until 3rd quarter of 2012, Indonesia's economic growth is predicted to reach 6.1% and would not make big differences until end of 2012. At first, economist from world bank, IMF and local including Bank of Indonesia, Ministry of Finance and more had predicted it would reach in between 6.3% to 6.4% maximum. 

Indonesia is now the 16th largest economic countries in the world, its GDP is mostly contributed by large population with more than 259 million people. Surprisingly, investment and farther than that is domestic consumption which cover more than 70% of Indonesia's GDP. An interesting thought was delivered by Nicole Fall as a founder of ASIAN Consumer Intelligence and other speakers stating that key driver of Indonesia's economic growth is mostly driven by its middle class power that reaches 45 million people.

How do we define "middle class" people? Well Debnath Guharoy from Roy Morgan Research has conducted in-depth survey that counts people who has television set, refrigerator and car / motorcycle are classified as middle class people. Even Guharoy predicts that 50% of Indonesian people will be "middle class" by end 2013, while there was "only" 28% of population back in 2008.

McKinsey added that driven by this 45 million people, Indonesia has surpassed its neighbors such as Singapore, Malaysia, Thailand, Vietnam and other South East Asian Countries. Another several facts have also been delivered by key speakers during this event:

- Mike Wiluan as a CEO of Infinite Frameworks: Indonesia is the 3rd largest market for Twitter

- Mike Wiluan, Indonesia has more than 170 million television viewers out of total population 259 million people

- Siladitya, Associate Director from P&G said Indonesia's women who economically active, highly literate are the one making purchasing decisions

- Varma, a Managing Director of YUM! Restaurant International Asia said both KFC and Pizza Hut had to adjust with Indonesian culture. Originally KFC served with no rice and Indonesia was the only exception country that include rice in the menu. Eventually, this differentiation strategy has been followed by other countries too.

Now we have heard good things about how potential and prospective Indonesia market is, Enrico previously said if Indonesia could reach 8% of economic growth, he responded quickly and said yes, yet the question is how. Minister of Trade H.E. Gita Wirjawan said investors in Indonesia can look forward to share of $36 trillion big cake. Now let's see how Indonesia can boost its economic growth to 8%.

1. Education seems to play important role here, increase number of literate people will drive urbanization to big cities and ultimately upgrade status of low class to middle class consumer. 

2. Win-win solution between investor and labor. It has been known that labors in Indonesia demand outsourcing should be eliminated. Indonesia manpower / labor law only permit ours sourcing for practices such as cleaning service, catering, security, transportation and mining supporting jobs related. Obviously, in the practice most of labor works in Indonesia are employ to handle jobs beyond this allowed section. Henceforth, Budiono, Vice President of Indonesia emphasized on how important creating win-win solution for all stake holders.

3. Removing oil subsidy, this may not look as an instrument to reach economic growth. It has been burden for government to allocate its budget for fuel subsidy and indirectly it may be one of the key driver that upgraded low class people to middle class. If fuel subsidy is revoked, middle class consumers will definitely hold their consumptive behavior adjusting to their budget. Thus, we might not fully agree to say that Indonesia will by the 7th largest economy countries by 2030. 

Ultimately, Indonesia middle class consumers are still "luckily" driven by the full advantage of fuel subsidy. Let's say one liter of gasoline costs IDR 4,500 or equivalent to USD 46 cents. One passenger type vehicle may contains 30 liters of subsidized gasoline amounting USD 14, let's assume that the weekly expenditure costs around USD 50, the remaining USD 36 can be allocated for other purposes. This gap enhanced the benefit of middle class people to allocate this USD 36 for other consumption goods such as cellular phone, car / motorcycle installment, insurance and other things).

If this subsidy is eventually revoked by the government, well the impact will cause this middle class consumers to adjust their expenditures and at the same time, hold their breath to purchase other things. China and India are also listed as the most populous countries in the world and for sure, their population and local consumption drive the national GDP as well.

However, trade balance of China last September 2012 has widen to USD 26.7 billion compared to Indonesia with only USD 1 billion surplus of trade balance. Key indicators of China economy is mainly driven by export performance and inbound investment as well as local consumption. 

Thus, the question arises, should Indonesian government take off the fuel subsidy and thus allocate this subsidy to develop other priorities such as education, provide house and job for people. Or hold this subsidy allocated to rise this middle class people and boost the Indonesian economic power to the 7th largest by 2030? (Source: Invisindo)

--- °C
Weather details


Aceh Bali Bangka Belitung Banten Bengkulu Gorontalo

Jakarta Jambi Jawa Barat Jawa Tengah Jawa Timur Kalimantan Barat

Kalimantan Selatan Kalimantan Tengah Kalimantan Timur Kepulauan Riau Lampung Maluku

Maluku Utara NTB NTT Papua Papua Barat Riau

Sulawesi Barat Sulawesi Selatan Sulawesi Tengah Sulawesi Tenggara Sulawesi Utara Sumatera Barat

Sumatera Selatan SumateraUtara Yogyakarta

Invisindo Commercial Newsletter


We work closely with industries to monitor the development inside. That way, we are more than capable to provide on sight information

Read more

In Depth Studies


When it goes deep, there are more to see. We believe that in-depth report provide your need.

Read More

Investment Desk


Blessed with abundant resources, Indonesia is one of the must countries to consider, supported with competitive labor rate, skillful worker as well as the 4thmost populous countries in the world.

Read More

Indonesia sets to shift to GMT +8, How Effective would it be

Effective - 78.8%
Not Effective - 10.6%
No Idea - 10.6%

Total votes: 66
The voting for this poll has ended on: 29 Jun 2012 - 01:33

Support Online

Indonesia Trade News Official Blog

Written By admin2 on Monday, 30 September 2013 23:03

 mentioned (, the Indonesia's mid power consumer group totaling 45 million people play an important role to Indonesia's economy. And not by surprise to say that Jakarta as a capital...

Zero Growth Policy On Indonesia's Military Defense Equipment

Written By admin2 on Friday, 24 May 2013 02:47

Indonesia sets to become a production center for Primary Weapon Defense System (Alutsista), Indonesian Defense Minister, Purnomo Yusgiantoro in his discussion during Executive Business Breakfast Meeting explained Indonesia aims to...

Wine, A Lucrative Business to Invest

Written By admin2 on Monday, 22 April 2013 02:41

Introduction to Wine Industry in Indonesia   Global wine trend shifting to AsiaRemarkably ever since a decade ago, the popularity of wine has been increasing in Asian countries like China, Singapore, and...

The Curse of Being Natural Resources Country

Written By admin2 on Friday, 01 March 2013 02:20

Indonesia is endowed with abundant "unlimited" of natural resources, as the largest archipelagos in the world and according to Professor Arysio Santos (, Indonesia is the most awaiting "lost Atlantis"....

Jakarta Hits For Mass Transit System in 2015

Written By admin2 on Thursday, 14 February 2013 05:17

Several mega projects are likely to be completed within few years and among these projects are infrastructures related such as Sunda Strait Bridge, Bojonegara Port, Kalibaru, expansion port of Tanjung...

2013, Revival of Commodities Price

Written By admin2 on Friday, 04 January 2013 02:15

Main commodities price of mining and agricultural are predicted to recover in 2013 following the strong indication of US economic recovery. The increase of commodities price is likely to boost...

Internet Users in Indonesia Hit 62.9 Million

Written By admin2 on Friday, 02 November 2012 02:10

Last year of 2011, internet users in Indonesia were 55 million. These users are classified as mobile internet, PC, smart phone, tablet and others. At the end of first half...

Progress of Mega Projects, a Sunda Strait Bridge

Written By admin2 on Wednesday, 31 October 2012 07:47

Exoticism of Banten Province seem to keep glowing in the midst of Europe economic crisis. Hundreds of investors have committed their investment plan into this province. One of the success...

Deceleration of Economic Infrastructure

Written By admin2 on Monday, 22 April 2013 05:34

Indonesian Government plans to adjust subsidized fuel for private vehicle (four wheels) owners have been debated for more than few weeks. Implementation on 2 subsidized fuel may not create significant impact for the acceleration of Indonesian economy. In the mid of 2011, Indonesian government through BAPPENAS (National Development Planning Board)...

MP3EI Groundbreaking Projects Start This Year

Written By admin2 on Wednesday, 16 January 2013 04:21

Indonesian Government is likely to accelerate 82 projects of MP3EI (Indonesian Economic Acceleration Master Plan) in 2013 worth IDR 143.08 trillion out of total projects amounting IDR 545.76 trillion. According to Wahyu Utomo, Deputy Assistant of Regional Development and Infrastructure from Ministry of Finance said these 82 projects are likely...

Developing Indonesia Through PPP and MP3EI Projects in 2013

Written By admin2 on Wednesday, 09 January 2013 03:08

At least 58 infrastructure projects are likely set for PPP (Public Private Partnership) scheme amounting USD 51 billion. Water supply has the most in-hand projects with 18 projects, followed by toll road with 14 projects and others. While in case of priority project, total of 26 projects consist of airport,...

Hotel, a Lucrative Sector to Invest

Written By admin2 on Monday, 07 January 2013 01:24

Slowly but sure, inflow investment to Indonesia is no longer dominated by "used to be" prominent sectors such as mining, plantation and manufacture. Yet, it has been shifting to services industries such as Hotel and Restaurant. BKPM, an Indonesian Investment Coordinating Board recorded investment realization on Hotel have gone nearly...

The Golden Age of Investment

Written By admin2 on Tuesday, 23 October 2012 02:46

Despite of slump trend of ICP (Indonesian Coal Price) and world's coal price index (CPI), mining investment remains promising and prospective in Indonesia. Investment realization in mining industries reach IDR 37 trillion during period January - September 2012. Chemical and pharmaceutical industry rank as the second largest investment with IDR...

Indonesia Offers Five Mega Scale Projects to Japan

Written By admin2 on Tuesday, 09 October 2012 07:50

Indonesian government through the National Development Planning Board (Bappenas) is aiming Japanese investor to finance five mega scale infrastructure projects. These five projects are inclusive into flagship projects through the MP3EI scheme (Indonesia's Economic Master Plan). Projects include industries such as sewerage at Jakarta, expansion of Soekarno Hatta International Airport,...

Realization of Investment Worth IDR 290 Trillion

Written By admin2 on Friday, 31 August 2012 07:28

Realization of investment in the first half of 2012 has shown tremendous growth with more than 50% compared to same period in 2011. Total of USD 29 billion has been implemented into construction for both local and global investors. Indonesia government through investment coordinating board ministry (BKPM) is processing seven (7)...

Foxconn Eyes for Indonesia's Electronic Market

Written By admin2 on Tuesday, 21 August 2012 17:11

The world's largest employer and electronic producers Foxconn eyes for Indonesia's electronic market. With more than 259 million people, Indonesia is lucrative for electronic's industry both local and global. Import on electronic products and components are relatively high with more than 80%, local electronic assemblers have large dependency on import...

Matahari to Invest IDR 1 Trillion This Year

Written By admin2 on Monday, 09 April 2012 07:10

Entering the Year of Water's Dragon, more and more companies are expanding their business, including PT. Matahari as one of the largest retailers in Indonesia. About 17 new outlets of supermarket and 17 outlets of health and beauty are likely to be done within this year. The budget has included...

Tiki JNE is targeting IDR 1 trillion for company's sales

Written By admin2 on Monday, 02 April 2012 04:39

Prospect of logistics business in Indonesia remains prospective along with the implementation of National Logistics System. Chairman of ALI (Indonesian Logistic Association), Mr. Zaldi Masita explained that logistics business in Indonesia is very promising considers Indonesia as the most emerging nation in South East Asia has the capability to support...

Importation on Horticultural Products Limited to Certain Ports Only

Written By admin2 on Thursday, 23 August 2012 01:31

Preface:In 2012, the Indonesian government had decided to impose restriction in importing horticultural products. This restriction is likely to be imposed through several ports and airports. Previously imports on horticultural...

Government Postpones The Enactment on Provision for Importing Horticulture Products

Written By admin2 on Tuesday, 19 June 2012 05:00

Indonesian government has finally decided to postpone the enactment on provision for importing horticulture product that was formerly to be effective on June 15, 2012 and now with the delay,...

Indonesia's Government to Heighten Import

Written By admin2 on Tuesday, 05 June 2012 05:44

During the first quarter of 2011, import of capital goods and raw materials rose 16.2% in parallel with the growth of foreign direct investment into Indonesia. To overcome flooding of...

New API (Importer Identification Number) is Needed Effective on January 1st, 2013

Written By admin2 on Wednesday, 16 May 2012 09:09

To import product legally from overseas for both producer and trader, Indonesia's government obliges all parties to have API (Importer Identification Number), API-P is for producer and API-U is for...

Government to Set Export Quota on Mineral Export

Written By admin2 on Wednesday, 16 May 2012 01:26

Indonesian government is likely to set quota on mineral export, maximum 25% of the export realization in 2009 / 2010 is allowed until new policy takes place for the year...

Cellular's Importer "must" Gain Producer's License

Written By admin2 on Monday, 14 May 2012 03:47

To overcome illegal cellular products in Indonesia, both Depkominfo (Ministry of Communication and Information) and Kemendag (Ministry of Trade) are likely to impose new license for current import system of...

Mining Companies Are Still Allowed to Export Raw Materials

Written By admin2 on Tuesday, 01 May 2012 04:58

The new government regulation no 24 year 2012 has automatically amended the previous regulation no 23 year 2010 regarding implementation of mineral and coal mining. Through that regulation, government has...

FDI Investment is Directed to High Tech

Written By admin2 on Wednesday, 18 April 2012 03:08

The Indonesian Government is trying to shift the trend of electronic industry to high tech through the incentive scheme and disincentive. Directorate General of High Tech Base Superior Industry, Budi...