About Indonesia

Why Indonesia?

1. Economic Growth

• The Indonesian economy grew by 5.8% in 2013, outperforming all other economies in Asia, except for China
• In 2013, the World Bank predicted that the Indonesian economy would grow by 6.5% in 2014, and will keep improving its outstanding performance
• Indonesia is predicted to grow to be in the top 10 largest economies in the world by 2030

2. Economic Certainty

• Indonesia is the only G20 member from South East Asia and it holds nearly half of the South East Asia region’s GDP
• Indonesia’s economy has maintained a steady growth rate of 5-6% over the last 10 years, a much more stable rate than in any OECD country or BRIC country

3. Strategic Location

• By 2050, 60% of global growth is forecasted to be from the Asian countries, with Indonesia one of the key players
• Geographical proximity with Australia allows for lower transport/freight cost

4. Opportunity in food and drinks

• The Indonesian Food and Beverage Producers Association (GAPMMI) expects a growth in food and beverage sales by 6% in 2014

5. Government Support

There is already a Free Trade Agreement in place with Indonesia (AANZFTA) and the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) is in negotiation

INDONESIA AT A GLANCE

Capital: Jakarta
Surface area: 1,905 thousand sq km
Official language: Bahasa Indonesia
Population: 248.0 million (2013)
Exchange rate: A$1 = 10,701.01 Rupiah (Feb 2014)
GDP per capita (US$): 3,417
Real GDP growth (% change yoy):5.4
Inflation (% change yoy): 6.3

Australian merchandise trade with Indonesia, 2013: Total share: Rank: Growth (yoy):
Exports to Indonesia (A$m): 5,162 2.0% 10th 6.3%
Imports from Indonesia (A$m): 6,013 2.5% 11th -5.0%
Total trade (exports + imports) (A$m): 11,199 2.2% 12th 0.1%

Australia's trade in services with Indonesia, 2013: Total share:
Exports of services to Indonesia (A$m):1,202 2.3%
Imports of services from Indonesia (A$m): 2,485 3.9%

Indonesia's principal export destinations, 2013:
1 Japan 14.8%
2 China 12.4%
3 Singapore 9.1%
10 Australia 2.4%

Indonesia's principal import sources, 2013:
1 China 16.0%
2 Singapore 13.7%
3 Japan 10.3%
9 Australia 2.7%

Indonesia’s Fast Moving Consumer Goods (FMCG) Sector

• There is a strong demand for beauty and cosmetics product in Indonesia, with 14% sales growth in 2012, totalling $1.01 billion USD (Euromonitor)
• Changing Indonesia lifestyles may explain the 9% increase in sales of infant formula milk (Reuters).
• Since 2006, disposable diaper market in Indonesia has grown by an average of 35% per annum (Reuters).
• 17% growth in the demand for Carbonated Soft Drink (CSD) in Urban, which may be explained by the new brands being introduced in the market.
• Personal Care growth is still at peak, followed by positive growth of Beverages and Dairy.
• In Urban, FMCG value increased by 8% in 2014

• In Rural, FMCG value increased by 13% in 2014

 

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