DOING BUSINESS IN INDONESIA CHANCES AND CHALLENGES
BEST PRACTICE EXAMPLE
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Karl-Otto UeberbachVP BOMAG SingaporeWednesday, April 17th, 12:20-12:40; Munich, DE
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Where to start?
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• Basic data• Chances• Challenges• Example BOMAG• Contacts
Doing Business in INDONESIA
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•Basic data•Chances•Challenges•Example BOMAG•Contacts
Germany / Indonesia
Germany / Indonesia
Distance and Time
Distance: 11.100 km (FRA - CGK)Time difference: 5/6 h
Size compared to Europe
1.9 mil sqkm = # 15 in the world(5.3 times DE)North to South ~ 1,800 kmWest to East: ~ 5,000 km
Population: ~250 mil = # 4 in the world(~3.0 times DE / 1/3 of EU)
Urbanization: 44%
Indonesia: Part of ASEAN
ASEAN:Association of SEA NationsHQ in Jakarta, founded 1967Today 10 SEA Nations; ~ 600 mio people
Indonesia: Part of ASEAN-CHINA FTA
ASEAN-CHINA FTASigned 2002Effective since Jan. 2010~ 1.8 bn people
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•Basic data•Chances•Challenges•Example BOMAG
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Growth Potential…
Source: www.timetrix.com
Mining …
.
Palm Oil Industry ..
.
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Infrastructure ….
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Chances for all …
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•Basic data•Chances•Challenges•Example BOMAG•Contacts
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• Distance: 11.000km
• Size of country: 1.9 mil sqkm
• Language: Indonesian (Bahasa Indonesia)English for overseas
business
• Culture: Multitude of religionsIslam, Christianity, Hinduism, Buddhism
• Currency: IDR
Challenges
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1 EUR = 12 466 IDR(09/04/2013)
Exchange rates ….
1 USD = 9 739 IDR(09/04/2013)
FX rates over 10 yrs
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•Basic data•Chances•Challenges•Example BOMAG•Contacts
BOMAG in Indonesia
Since 1972 with one partner only: !
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BOMAG in Indonesia
BOMAG in Indonesia
40 Years anniversary in 2012
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•Basic data•Chances•Challenges•Example BOMAG•Contacts
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