|
|
RECENT ECONOMIC REPORTSINDONESIA: TRADE AND INVESTMENT HIGHLIGHTS
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
Jan-Sep |
Jan-Sep |
Percent
Increase |
|
|
2004 |
2005 |
2005/2004 |
|
Exports |
51.4 |
62.3 |
21.2 |
|
Oil and Gas |
11.5 |
13.9 |
20.8 |
|
Non-oil and Gas |
39.9 |
48.3 |
21 |
|
Agricultural |
1.8 |
2.2 |
22.2 |
|
Industrial |
35.2 |
40.7 |
15.6 |
|
Mining and Others |
2.9 |
5.5 |
89.6 |
|
|
|
|
|
|
Imports |
35.5 |
43.7 |
30.4 |
|
Oil and Gas |
8.2 |
13.3 |
62.2 |
|
Non-oil and Gas |
25.3 |
30.4 |
20.2 |
|
|
|
|
|
|
Balance of Trade |
17.9 |
18.6 |
3.9 |
Source:
Central Bureau of Statistics (BPS)
Industrial
exports, which account for 65.2 percent of total exports, expanded
15.5 percent YoY to USD 40.7 billion from January through September.
Machinery and electrical tools, fats and palm oils, and
mechanical tools were Indonesia's top three non-oil and gas exports
for the period comprising 10.9, 6.8 and 6.5 percent of total exports
respectively. Japan
remains Indonesia’s largest export destination, followed by the
United States and Singapore.
Table 2: Indonesia: Top 10 Non-oil and Gas
Export Categories, Jan-Sep 2005
(in USD billions)
|
Commodity
|
Jan-Sep
|
Jan-Sep
|
Percent
of Total |
|
|
2004 |
2005 |
Jan-Sep
'05 |
|
Machinery/Electrical Tools |
4.8 |
5.3 |
10.9 |
|
Fats and Palm Oils |
3.1 |
3.3 |
6.8 |
|
Mechanical Tools |
2.7 |
3.1 |
6.5 |
|
Coal
|
1.9 |
3.1 |
6.4 |
|
Wood and Wood Products |
2.4 |
2.3 |
4.7 |
|
Garment – not knitted |
2.1 |
2.2 |
4.6 |
|
Chemical Organic |
1.0 |
1.1 |
2.3 |
|
Fish and Shrimps |
1.0 |
1.1 |
2.2 |
|
Nickel
|
0.4 |
0.8 |
1.7 |
|
Steel and Iron Goods |
0.3 |
0.4 |
0.9 |
Source: Central
Bureau of Statistics (BPS)
SBY
Optimistic Over Export Growth
President
Susilo Bambang Yudhoyono on October 5 expressed optimism that
Indonesia will achieve its export growth target of 6 to 8 percent for
2005. President Yudhoyono
noted that the government would continue to take steps to achieve
further growth in exports, such as:
- Simplifying export procedures and other trade regulations;
- Developing more efficient distribution systems through improved transportation infrastructure;
- Improving Indonesia export competitiveness through value-added diversification and bilateral, regional and multilateral cooperation towards greater market access;
- Promoting and maintaining an Indonesian brand image of high product quality, design and packaging; and
- Harmonizing tariffs, expediting tax refunds and implementing trade-financing schemes.
Table 3: Indonesia: Main Non-Oil and Gas
Export Destinations, Jan-Sep
(in USD billions, FOB value)
|
Country of
Destination |
Jan-Sep |
Jan-Sep |
Percent
of Total |
|
|
2004 |
2005 |
2005 |
|
Japan |
5.9 |
7.0 |
14.6 |
|
U.S.A |
6.1 |
6.9 |
14.4 |
|
Singapore |
3.7 |
5.3 |
11.0 |
|
China |
2.4 |
2.8 |
5.9 |
|
Malaysia |
2.1 |
2.4 |
4.9 |
|
South Korea |
1.3 |
1.8 |
3.7 |
|
European Union |
6.4 |
7.3 |
15.1 |
|
Taiwan |
1.1 |
1.3 |
2.6 |
|
Australia |
0.8 |
0.8 |
1.7 |
|
Others |
9.9 |
12.5 |
25.8 |
|
Total |
39.9 |
48.3 |
100 |
Source: Central
Bureau of Statistics (BPS)
Table 4:
Indonesia: Import by Broad Economic Categories, Jan-Sep 2005 (in USD
billions, CIF value)
|
In US Billions |
Jan-Sep |
Jan-Sep |
Percent Increase |
Share of Total |
|
CIF
Value |
2004 |
2005 |
2004/2005 |
Jan-Sep
05 |
|
Total
Import |
33.5 |
43.7 |
30.6 |
100.00% |
|
|
|
|
|
|
|
Consumption
Goods |
2.8 |
3.3 |
19.6 |
7.60% |
|
Raw
Materials |
26.2 |
34.3 |
30.9 |
78.40% |
|
Capital
Goods |
4.5 |
6.1 |
35.3 |
14.00% |
Source: Central
Bureau of Statistics (BPS)
Investment
Approvals Rise
According to the BKPM, realized foreign investments reached USD 7.64 billion from January through September 2005, more than double the USD 2.94 billion recorded during the same period in 2004. Meanwhile, realized domestic investments from January to September 2005 reached Rp 11.97 trillion (USD 1.2 billion), a 21 percent increase YoY. The transportation, warehousing, communications, chemicals and pharmaceutical sectors have attracted the greatest investor interest in recent months.
Foreign direct investment (FDI) in Indonesia’s automotive and transportation sector continues to grow. October 24 BKPM data shows that FDI in the sector reached USD 315.1 million during the first nine months of 2005 and accounted for 4.1 percent of total realized FDI. According to BKPM, the automotive and transportation sector created some 6,600 jobs from January through September 2005 and ranked 7th largest recipient sector for FDI. One automotive industry representative in Indonesia, however, noted that the 87 percent increase in gasoline prices on October 1 was already dramatically affecting October 2005 auto sales.
Table 5: Indonesia: Foreign Investment
Realization In Automotive and Transportation Sector
|
Year |
Projects |
Investment
Realization |
|
|
|
(in
USD millions) |
|
2001 |
12 |
91.7 |
|
2002 |
11 |
90.0 |
|
2003 |
29 |
313.5 |
|
2004 |
22 |
402.6 |
|
2005 (1) |
25 |
315.1 |
Note: (1)
January-September.
Source: BKPM
National
Trade Negotiation Team
On October 18, President Susilo Bambang Yudhoyono signed Presidential Decree No.28/2005 establishing an interagency “Indonesian National Trade Negotiation Team”. The team will aim to protect Indonesia’s specific trade interests and enhance its active role in bilateral, regional and multilateral trade forums and negotiations.
According
to the decree, specific objectives include:
-
Enhancing
Indonesia's active engagement and asserting and advancing its
interests in bilateral, regional and multilateral trade forums and
negotiations;
-
Effectively
analyzing the substance, processes, results, and impacts of
international trade negotiations in the context of protecting and
advancing national interests;
-
Formulating
Indonesian positions and strategies for trade negotiations with the
objective of expanding its global market access and national economic
growth; and
-
Educating
relevant government agencies and the Indonesian public on the progress
and results of international trade negotiations through coordination
meetings, workshops, seminars and the print, broadcast and electronic
media.
Key
members of the team include:
-
Coordinating
Minister for the Economy (Coordinator);
-
Minister
of Trade (Chair);
-
Ministry
of Trade Lead International Trade Negotiator (Executive/Vice-Chair);
- Ministry of Trade Director General for International Trade Cooperation (Executive/Vice-Chair); and
- Indonesian WTO Ambassador: (Executive/Vice-Chairman).
Textile
Transshipments
Minister
of Trade Mari Pangestu on October 13 admitted that transshipments of
Chinese textile and garments through Indonesia were increasing.
To combat the problem, Pangestu said the MOT would re-activate
the electronic visa verification system (ELVIS), increase pre-shipment
inspections (PSI), and restrict the issuance of certificates of origin
(COOs) to specific trade offices across Indonesia.
The MOT will also study methods of transshipment in order to
develop more effective enforcement measures.
The
MOT on October 7 issued regulations (Decrees No.03/DAGLU/2005 and
No.04/DAGLU/2005) governing the issuance of COOs for general and
special export products, specifically sensitive items like shrimps and
textiles and garments. The
regulations limit the issuance of certificates of origin for shrimp
exports to the following 14 trade offices:
- North Sumatra;
-
South
Sumatra;
-
Lampung;
-
Jakarta;
-
West
Java;
-
East
Java;
-
Central
Java;
-
South
Sulawesi;
-
South
Kalimantan;
-
East
Kalimantan;
-
Tarakan
City, East Kalimantan;
-
South
East Sulawesi;
-
Cirebon
Regency, West Java; and
-
Bali.
The
regulations further limit the issuance of certificates of origin for
textiles and garments to the following 14 trade offices:
-
North
Sumatra;
-
Riau;
-
Jakarta;
-
West
Java;
-
Central
Java;
-
East
Java;
-
Bali;
-
Jogjakarta;
-
Surakarta;
-
Riau
Island;
-
Batam
Industrial Development Authority;
-
Cakung
Bonded Zone, Jakarta;
-
Tanjung
Priok Bonded Zone, Jakarta; and
-
Maruunda
Bonded Zone, Jakarta;
Hutchison
to Invest in Indonesia Telecoms Industry
Hong
Kong telecom operator Hutchison Telecommunication International
announced on October 10 that it plans to pursue a syndicated loan of
USD 1 billion to fund expansion of its telecommunications operations
in Indonesia, India and Vietnam.
According to press reports, members of the lending syndicate
financing the investments may include HSBC Holdings, Standard
Chartered, Calyon, ABM Amro and WestLB.
Hutschison says it plans to launch mobile services in Indonesia
starting in the second quarter of 2006.
The company’s investment in Indonesia alone is expected to
reach USD 773.8 million.
Indonesia’s
Motorcycle Production Decreases
The
Indonesian Motorcycle Industries Association (AISI) announced on
October 17 that Indonesia's motorcycle production in September 2005
decreased 7.72 percent to 473,421 units, compared to 513,021 units the
previous month. AISI
expressed concern that Indonesia’s recent fuel price increases had
lowered consumer purchasing power and demand.
However, overall motorcycle production for the first nine
months of 2005 reached 3,926,497 units, a 35.8 percent increase YoY. Japanese brand Honda remains the most popular motorcycle in
Indonesia with a market share of 51.5 percent.
Automotive
Component Exhibition
The
Ministry of Industry, with support from the Indonesian Chamber of
Commerce (KADIN), held an automotive component exhibition in Jakarta
from October 17 to 18. Coordinating
Minister for Economy Aburizal Bakrie opened the event, which aimed to
develop links between major automotive producers and Indonesian
domestic auto and electronics components industries. As many as 78 domestic and foreign manufactures participated
in the exhibition, including Japanese automotive producers Toyota,
Honda, Yamaha, and Daihatsu, as well as electronic producer Panasonic.
Table 6: Indonesia: Automotive Component
Industry Growth
|
|
2003 |
2004 |
2005 |
|
Number of companies |
230 |
250 |
250 |
|
Investment (USD billions) |
0.7 |
0.8 |
0.8
|
|
Production (USD billions) |
0.9 |
1.3 |
0.7 |
|
Labor |
53,583 |
54,670 |
55,980 |
|
Exports (USD billions) |
0.8 |
1.0 |
0.6
|
|
Imports (USD billions) |
1.8 |
2.3 |
1.2 |
Table 7: Indonesia: Electronic Component
Industry Growth
|
|
2003 |
2004 |
2005 |
|
Number of companies |
174 |
183 |
188 |
|
Investment (USD mn) |
0.13 |
0.16 |
0.16 |
|
Production value (USD mn) |
|
|
|
|
Labor |
140,000 |
147,000 |
148,000 |
|
Exports (USD billions) |
3.5 |
3.4 |
1.6 |
|
Imports (USD billions) |
0.7 |
0.8 |
0.4 |
Source: Ministry
of Industry
GOI
To Cut Port Fees
Following
a meeting with Indonesian port operators, Minister of Transportation
Hatta Rajasa announced on October 21 that the GOI would reduce
terminal handling charges (THC) at seaports effective November 1,
2005. Under
the new fee structure, THC for 20-foot containers will be USD 95, a 58
percent reduction. The
move is aimed at boosting the competitiveness of Indonesian exports
and reducing Indonesia’s high cost economy.
Terminal handling charges at other regional ports reportedly
range between USD 90 to USD 107 per 20-foot container, and USD 135 to
USD 158 per 40-foot container. Indonesian
Textile Association Chairman Benny Soetrisno commented that the
reduction in THC costs would help Indonesia’s textile and garment
industry remain competitive internationally.
However, November 10 press reports indicated that some foreign
shipping lines had not agreed to the reduced THC and continued to
charge fees above the rates announced by Minister Rajasa.
Table
8: Indonesia: Terminal
Handling Charge (THC), Effective November 1, 2005 (US Dollar)
|
Container
Type |
Container
Handling Charge |
Surcharge |
Total
THC |
|
20 feet |
70 |
25 |
95 |
|
40 feet |
105 |
45 |
150 |
Source: Ministry
of Transportation
***
Download
this document in PDF
fi
Trends | Reports | Energy | Petroleum | Investment
U.S.
Embassy Jakarta Home Page
Information
Resource Center | IRC
Reference
Form |
Visa
Information | American
Citizen Services
Top | Feedback | Site Index | Search | Privacy Notice | Bahasa Indonesia
Please contact our Webmaster
with questions and comments.
This page is produced and maintained by American Embassy
Information Resource Center, a state-of-the-art research facility
with access to a wide variety of print and electronic resources.
DISCLAIMER: Links to non-U.S. government Internet sites should not be construed as an endorsement of the views contained therein.