Indonesia - EU : Towards Strategic Partnership

H.E. Arif Havas Oegreseno,Ambassador of Indonesia to the

European Union

TCD School of Business September 11, 2014

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIPDiscussion in TRINITY COLLEGE DUBLINH.E arif Havas Oegroseno - indonesian Ambassador to the EU, Belgium, luxembourg

Indonesian Mission to the EU, Belgium, Luxembourg

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIPGeography

Indonesian Mission to the EU, Belgium, Luxembourg

Indonesian Mission to the EU, Belgium, Luxembourg

5253 km

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP ?GEOGRAPHY

Indonesian Mission to the EU, Belgium, Luxembourg

5253 km

17,000 ISLANDS3 TIME ZONESTHE LARGEST ARCHIPELAGO2 MILLION KM2

6 MILLION KM2

ireland to cyprus 4428 KM

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP GEOGRAPHY

Indonesian Mission to the EU, Belgium, Luxembourg

Population of 246.9 million (2012)

4th Largest Population (China, India, USA)

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP POPULATION & DENSITY

Indonesian Mission to the EU, Belgium, Luxembourg

300 ethnics706 living languages6 major religions many beliefs

Bhineka Tunggal IkaUnity in Diversity

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP DIVERSITY

Indonesian Mission to the EU, Belgium, Luxembourg

71,191 churchesin Moslem Majority

37,000 churches in the UK10,000 mosques in the EU

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP THE LARGEST MUSLIM COUNTRY IN THE WORLD

Indonesian Mission to the EU, Belgium, Luxembourg

Istiqlal Mosque of JakartaThe Largest Mosque in South East Asia5th Largest in the world 150,000 capacity : Andorra, Monaco, LichtensteinDesigned by Frederich Silaban in 1954

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP TOLERANCE

Indonesian Mission to the EU, Belgium, Luxembourg

Jakarta Istiqlal Mosque is next to Jakarta CathedralIs this possible in the Western liberal democracies ?

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIPTOLERANCE

Indonesian Mission to the EU, Belgium, Luxembourg

Catholic Priests teaching in MadrasahIs this possible in the Western liberal democracies?

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP TOLERANCE

Indonesian Mission to the EU, Belgium, Luxembourg

Is this possible in the Western liberal democracies ?

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP TOLERANCE

Indonesian Mission to the EU, Belgium, Luxembourg

Regular Free Elections185,000,00070 % turnout10 partiesVery Free MediaStrong ParliamentRobust CSORule of LawTough ACC

voting is cool !voting is cool !

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP STABLE DEMOCRACY

Indonesian Mission to the EU, Belgium, Luxembourg

PERCEPTION OF MARKET TOWARDS INDONESIAN DEMOCRACY

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP STABLE DEMOCRACY

Indonesian Mission to the EU, Belgium, Luxembourg

4th largest in the world50% below 30 - 37% below 20 - 19 % below 10demographic bonus 66% 2010 - 68% in 2030education budget : 20% of budgetworkforce 144 million

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP DEMOGRAPHY OF 246 + MILLION POPULATION

Indonesian Mission to the EU, Belgium, Luxembourg

G20 : 16th largest economyUSD1.2 T GDPGDP per cap USD 3,300 (13) - USD 6,600 (16)90,000,000 middle class

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP STATE OF ECONOMY

Indonesian Mission to the EU, Belgium, Luxembourg

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP STATE OF ECONOMY

Indonesian Mission to the EU, Belgium, Luxembourg

Average Public Debt OECD : 112% (2014)

DSR 2014: Compared

US : 104 %Japan : 243 %Ireland : 123 %Singapore : 101 %India : 66 %

Indonesia : 24 % (1998: 150%)

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP STATE OF ECONOMY

Indonesian Mission to the EU, Belgium, Luxembourg

Indonesia Unemployment Rate 2013: 6.2%

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP STATE OF ECONOMY

Indonesian Mission to the EU, Belgium, Luxembourg

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIPSTATE OF ECONOMY

Indonesian Mission to the EU, Belgium, Luxembourg

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP STATE OF ECONOMY

Indonesian Mission to the EU, Belgium, Luxembourg

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP STATE OF ECONOMY

Indonesian Mission to the EU, Belgium, Luxembourg

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP STATE OF ECONOMY - COMPETITIVENESS

Indonesian Mission to the EU, Belgium, Luxembourg

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP STATE OF ECONOMY - COMPETITIVENESS

Indonesian Mission to the EU, Belgium, Luxembourg

BILLION USD

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP ARE THE INVESTOR COMING ?

Indonesian Mission to the EU, Belgium, Luxembourg

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP DIGITAL ECONOMY

Indonesian Mission to the EU, Belgium, Luxembourg

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP DIGITAL ECONOMY

Mobile services reach to 307 million

65% of 246 + m has mobile phone

2000 : 2 million internet user2014 : 107 million internet user

Internet Cafe: 260.000 (2011)

Indonesian Mission to the EU, Belgium, Luxembourg

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP DIGITAL ECONOMY

Indonesia rank 4 Asia’s internet

users (after China, India and Japan)

Internet users via mobile phone:

48 % (Indonesia)Malaysia 21%,

Thailand and Singapore 36%

Indonesian Mission to the EU, Belgium, Luxembourg

#4 Facebook User#5 Twitter Account#4 Social Network Users : 109,000,000Mobile phone sold : 236,000,000

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP ?INTERNET PENETRATION

Indonesian Mission to the EU, Belgium, Luxembourg

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP DIGITAL ECONOMY

Indonesia internet economy 2,5% of GDP (2015)

Larger than gas export

IT Start-Ups 1500 companies

1st Mobile 4G LTE

Indonesian Mission to the EU, Belgium, Luxembourg

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP DIGITAL ECONOMY

BANDUNG TECHNOPARK

Indonesian Mission to the EU, Belgium, Luxembourg

PT. PAL INDONESIA : Merchant and Naval Shipbuilding

ISO +

TUV

3 Units 50,000 DWT

2 units 20,000 DWT

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP ?STRATEGIC INDUSTRIES

Indonesian Mission to the EU, Belgium, Luxembourg

PT. DIRGANTARA INDONESIA: Aircraft Manufacturing

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP ?STRATEGIC INDUSTRIES

Indonesian Mission to the EU, Belgium, Luxembourg

PT. PINDAD : Weapon and Tactical Vehicles Manufacturing

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP ?STRATEGIC INDUSTRIES

INDONESIA – EU : TOWARDS STRATEGIC PARTNERSHIP STATE OF THE NATION 1998 : 16 years ago

Indonesian Mission to the EU, Belgium, Luxembourg

Indonesian Mission to the EU, Belgium, Luxembourg

Exchange rates - 80 %

Interest rates + 28 %

Stock market - 37 %

Growth - 13 %

GDP plunged $ 216B to $ 95B

Millions Demonstrations. Communal Violence.

Suicide Bombs

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP ?STATE OF THE NATION IN 1998 : 16 YEARS AGO

Indonesian Mission to the EU, Belgium, Luxembourg

WESTERN EXPERTS: BALKANIZATION OF INDONESIA

“The Balkanization processes are active in Indonesia” Neal G. Lineback, Proffessor of Geography at Appalachian State University, NC, USA - 2000

“Conditions in Indonesia today are eerily reminiscent of those in Yugoslavia in 1991-92”John Bolton, Scholar American Enterprise Institute, 2000

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP ?STATE OF THE NATION IN 1998 : 16 YEARS AGO

Indonesia - EU : TOWARDS STrategic Partnership ?CONTRAST : TODAY VS 16 YEARS AGO

Indonesian Mission to the EU, Belgium, Luxembourg

Growth - 13 %

DSR : 180 %

GDP $ 95B

Sickman of Asia

Middle Class : 7M

Growth 6%

DSR : 24 %

GDP $ 1.2 T

G-20 : 16th Largest

Middle Class : 90M

Indonesian Mission to the EU, Belgium, Luxembourg

Founding FatherJIM : Ending Indochina WarSouth China SeaThai - CambodiaThe Phil - MNLF

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP ?REGIONAL ROLE

Indonesian Mission to the EU, Belgium, Luxembourg

58 % of world shipping

$ 435 billion

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP ?REGIONAL ROLE

Indonesian Mission to the EU, Belgium, Luxembourg

Peace keeping commitment (since 1957 ; 30.000)

Securing strategic waters

Peaceful regional architecture

Counter-terrorism & organized crime

Climate change

Promoting Dialogue on Democracy

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP ?GLOBAL ROLE

Indonesian Mission to the EU, Belgium, Luxembourg

Education

&Culture

Environment &

Natural Resources

Health

Transport

Counter Terrorism

Partnership and Comprehensive

Agreement(PCA)

Among others:Civil SocietyCooperation

Human Rights

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP ?INDONESIA - EU PCA

Indonesian Mission to the EU, Belgium, Luxembourg

3 D

Democracy, Diversity, Development

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP ?INDONESIA - EU PCA

Indonesian Mission to the EU, Belgium, Luxembourg

EU’s Strategic Partners

Europe : RussiaAmerica : Canada,USA, Mexico, BrazilAfrica : South Africa

Asia : India, China, Japan, Korea

Indonesia’s Strategic Partners

Europe : FranceAmerica : BrazilAfrica : South Africa

Asia : India, China, Japan, KoreaPacific : Australia

France Signed Strategic Partnership With Indonesia 2011

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP ?INDONESIA - EU STRATEGIC PARTNERS

INDONESIA – EU: STRATEGIC PARTNERSHIP 3 STRATEGIC VALUES

Indonesian Mission to the EU, Belgium, Luxembourg

•1st Strategic Partnership With Moslem Country

•Sharing Experiences on Managing Pluralism

•Access to 250 Million Indonesian and 600 Million Asean

Indonesian Mission to the EU, Belgium, Luxembourg

More than 700 European companies in Indonesia

Manufacturing, Energy, Mining, and Financial

Total Investment US$ 70 billion

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP ?EUROPEAN BUSINESS IN INDONESIA

Indonesian Mission to the EU, Belgium, Luxembourg

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP ?INDONESIA HELPS EU INDUSTRY

Airbus lands $24B order from Indonesia's Lion Air

SECURE 5000 JOBS IN FRANCEMORE IN UK, GERMANY, BELGIUM

Indonesian Mission to the EU, Belgium, Luxembourg

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP ?INDONESIA HELPS USA TOO

BOEING lands $21B order from Indonesia's Lion Air

SECURE 5000 JOBS IN FRANCEMORE IN UK, GERMANY, BELGIUM

Indonesian Mission to the EU, Belgium, Luxembourg

Voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade (FLEGT-VPA), into force 1st May 2014

Recognition of Indonesian Legal Timber

Comprehensive Economic Agreement (CEPA) RI-EU

GI Protection

INDONESIA - EU : TOWARDS STRATEGIC PARTNERSHIP ?ECONOMIC RELATIONS

INDONESIA – EU : TOWARDS STRATEGIC PARTNERSHIP INDONESIAN EDUCATION MARKET

Indonesian Mission to the EU, Belgium, Luxembourg

1 BILLION USD ENDOWMENT

FUND FOR SCHOLARSHIP

INDONESIA – EU : TOWARDS STRATEGIC PARTNERSHIP INDONESIAN EDUCATION MARKET

Indonesian Mission to the EU, Belgium, Luxembourg

INDONESIA – EU : TOWARDS STRATEGIC PARTNERSHIP INDONESIAN TOURISM TO THE EU

Indonesian Mission to the EU, Belgium, Luxembourg

140,000 INDONESIAN TOURIST TO THE EU

ONLY A FRACTION OF APPLICANTSFRUSTRATED BY SCHENGEN

Thank you.

Indonesian Mission to the EU, Belgium, Luxembourg