«Indonesia: the «Indonesia: the Archipelago Economy» Archipelago Economy» Mr. Luca Vianelli, Partner and Managing Director Mr. Luca Vianelli, Partner and Managing Director MDA CONSULTING S.E.A. – BANGKOK MDA CONSULTING S.E.A. – BANGKOK “ Strategy is important but execution is everything” Strategy is important but execution is everything” “ “ ASEAN: lo sviluppo dei mercati ASEAN: lo sviluppo dei mercati mondiali passa mondiali passa per il sud-est per il sud-est asiatico” asiatico” Confindustria Vicenza, 19 Confindustria Vicenza, 19 th th December 2012 December 2012 1
Transcript
«Indonesia: the «Indonesia: the Archipelago Economy»Archipelago Economy»
Mr. Luca Vianelli, Partner and Managing DirectorMr. Luca Vianelli, Partner and Managing DirectorMDA CONSULTING S.E.A. – BANGKOK MDA CONSULTING S.E.A. – BANGKOK
““Strategy is important but execution is everything”Strategy is important but execution is everything”
““ASEAN: lo sviluppo dei mercati mondiali ASEAN: lo sviluppo dei mercati mondiali passa passa per il sud-est asiatico”per il sud-est asiatico”
Confindustria Vicenza, 19Confindustria Vicenza, 19thth December 2012 December 2012
The 2007’s EU directive that makes mandatory to use at least 10% of biofuel in transportation by 2020 is also contributing to the growing demand.
Demand for exports is being driven by China and India’s rapid growth for use as edible oils in foodstuffs and for bio-fuel production.
Agriculture – Palm Oil Agriculture – Palm Oil
20
• Indonesia is the world’s 2nd largest natural rubber exporter after Thailand, while having the largest area of rubber plantations.
• Demand is predicted to reach 16.2 million MET by 2020 up from 11.2 million MET for 2011 (International Rubber Study Group).
• Consumption of national production is currently only at 15%.
Agriculture – RubberAgriculture – Rubber
• Investors may own up to 95% of a 25 hectare or more plot of land for cultivation and integrated downstream facility; this includes sheet rubber, thick latex and the crumb rubber industry.
(as per the Negative Investment List 2010)
21
• Indonesia is the world’s 3rd largest cocoa exporter for 18% of global market share with 470,000 MET produced in 2010.
• Demand is arising out of increased confectionary and chocolate consumption from markets such as China and India as well as the European Union.
• Indonesia’s cocoa production is concentrated in Sulawesi where 63% of the country’s raw cocoa is produced.
• The value added chain in cocoa is a priority area for the government with the target of $6.25 billion USD in export value by 2025.
• The target of 1 million MET annual output over the period 2013-2014 requires investments and meet
Agriculture – CocoaAgriculture – Cocoa
22
EnergyEnergy
23
Energy – Sector SnapshotEnergy – Sector Snapshot
Contribution to GDP: 11% (2010)Imports: $2.36 billion (2010)Proven Oil Reserves: 4.2 billion barrels (end 2010)Proven Gas Reserves: 108.4 trillion cubic feet Proven Coal Reserves: 5529 million METProven potential in Geothermal Energy: 27 GWProven potential in Hydropower: 75 GWOther Energy Sources: Coal Bed Methane, Biomass, Solar, Sea Current EnergyCurrent Energy Mix:
Relevant Law : Energy Law No.30/2007 Setting the National Energy Policy on course to secure energy security and pursue greater reliance on renewable energy by providing incentives for its development.
24
Energy Mix: 2010 vs. 2025Energy Mix: 2010 vs. 2025
Source: PLN
25
Energy - Coal’s volumes prodictionsEnergy - Coal’s volumes prodictions
26
Energy - Countries Ranked for Coal Energy - Countries Ranked for Coal (2009)(2009)
27
Renewable EnergyRenewable Energy
28
• Indonesia is the 2nd largest producer of coal bed methane (CBM) after China with reserves of 453 trillion cubic feet;
• Indonesia has the largest proven global reserves of CBM with the main sources being located in Kalimantan, South Sumatra and Riau.
• Production targets are set at 500 tcf (2015) and to 900 tcf (2020);
• The first CBM fed power plant located in East Kalimantan will come on stream in 2011 (operated by PT Ephindo in a consortium with GE).
• 5 further work areas are also expected in 2011.
• Pricing of CBM power for the domestic market is at $0.27 USD per kwh; 50% lower compared to diesel. PLN forecasts that CBM could produce as much as 2000 MW of power for the country by 2015.
Energy – Coal Bed Methane (2010)Energy – Coal Bed Methane (2010)
29
Energy – Bio-ethanol PlanEnergy – Bio-ethanol Plan
30
Energy – Biodiesel PlanEnergy – Biodiesel Plan
31
Renewable Energy PotentialRenewable Energy PotentialEnergy Resource Potential in Indonesia:
Contribution to GDP: 6% (2010) Existing Road Network: 476,337 km (2009)Existing Railway Network: 4,800 kmNumber of Airports: 187 (local and international)Number of Commercial Sea Ports: 111
Main Government Bodies: Ministry of Transport, BAPPENAS, Ministry of Public Works, Ministry of State Owned Enterprises through Directorate General of Highways, the Indonesian Toll Road Authority.
34
Indonesia’s vast size stretching over 5,000 km across the equator and being made up of over 17,000 islands has made the development of an efficient national transport network a challenge and priority.
•Rail – Accounts for less than 10% of passenger and less than 1% of freight transport. Jakarta is the largest city in the world without proper intra-city rail;
•Roads - 35% of subnational roads and 10% of national roads are classified as “Heavily Damaged”; subnational roads are 92% of network; •Ports - Indonesia has only 2 international hub ports; no investment for 25 years;
