KOMITE EKONOMI NASIONAL REPUBLIK INDONESIA

Indonesia - The Worlds Next Economic Power

Chairul Tanjung
Chairman of National Economic Committee (KEN)

 Indonesia Future Outlook Key Economic Drivers

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Looking to the long term, Indonesia will become a high income country
PREPARATI ACCELERATION ON CONTINUATION $46,900 $38,600 $30,400

Indonesia becomes a high income country with GDP per capita USD 14,250-USD 15,500

GDP Nominal per capita $3,005 2010 $5,300 $9,000

$22,500 $14,900

2015

2020

2025
4,257 286

2030
6,793 302

2035
9,706 319

2040
12,98 9 336

2045
16,57 8 353
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GDP Nominal (US$ Billion) 711 1,335 2,416 Population (Million people) 237 253 269

Indonesias economic growth has far surpassed the projections of the Indonesia Forum Foundation
Projected GDP per capita - Indonesia Vision 2030
1992 Lower Middle Income Country 2015 2023 Upper Middle High Income Country Income Country

Economic Projection 2011 - 2045 Indonesia Vision 2030 GDP per capita reached US$3,005 in 2010

Source: Indonesia Forum Foundation (Yayasan Indonesia Forum), team analysis

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IMF projects Indonesia to achieve the second fastest growth amongst the worlds 18 largest economies during 2009-2015
GPD Nominal Growth (2009 2015)
Russia Indonesia China India Brazil South Korea Turkey USA Japan
4.1% 4.0% 10.0% 9.9% 12.4% 12.1% 11.7% 15.7% 14.5%

ASEAN
Indonesia)

(excl.

9.6%

ce :

International Monetary Fund, World Economic Outlook Database, April 2011

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Indonesias economy will become more dominant in ASEAN and larger than several countries in Europe
Indonesia Economic Growth (nominal) (USD Billion)
CAGR 14.5%

Indonesias economy as % of ASEAN-6 ASEAN

(Total 11 Countries)

40% 38%

48% 46%

53% 52%

European Countries: Spain Netherlands 50% 91% 60% 105% 91% 165%

urce: International Monetary Fund, World Economic Outlook Database, April 2011; Proyeksi Ekonomi Indonesia 2011 2045; Analisa Tim
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 Indonesia Future Outlook Key Economic Drivers

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The increase of the productive population will fuel stable and rapid economic growth
Expected Population Pyramid (20002020) Expected Population Pyramid (20002020)
Male Indonesia2000 100 100 95 90 85 80 75 70 65 60 55 50 45 40 35 30 25 20 15 10 55 00 Female Male Indonesia2020 100 100 95 90 85 80 75 70 65 60 55 50 45 40 35 30 25 20 15 10 55 00 Female

15

12

12

15

15

12

12

15

Population (in millions)

Population (in millions)

Total (million) Male (million) Female (million) Productive population (2055 years old)
Source: 2008 UNDP World Population Prospects

205 102 102 99 (48%)

254 127 127 132 (52%)

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Natural Resources, Infrastructure and Consumers will also drive economic growth
Economic growth, including key emerging markets driving demand Hard commodities, e.g. metals, oil, coal, etc. Soft commodities, e.g. rubber, palm oil, etc.

Natural Resources

Infrastructur e

Continued development of infrastructure: transportation, energy, communications, water & waste, etc.

Consumer
Rise of Consumer Spending Power Based on 2010 GDP per capita (US$3,005), Indonesia has reached the critical threshold rapid growth in consumption, discretionary and luxury spending o o o o o Financial Services Automotive Retail Tourism etc.

(as well as supporting sectors such as industry and construction)

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This economic growth is also supported by conducive national conditions

Political Environment

Maturing democracy Regional autonomy Supportive regulations balanced open markets Strengthening institutions

Increasingly integrated networks

Regional improving efficiency of domestic production and distribution chains Global geographic position provides excellent access to India, China, Japan, etc.

Resilient Financial System

Government debt and foreign reserves at healthy levels Improving investment climate Indonesian banks performed well during global crisis

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Indonesia has entered the Golden Era of economic growth huge opportunities for businesses
Projection of Indonesias GDP Growth in 2025
(USD Billion)

4,257 3,546 711 2010 711 2025

Indonesian economy will grow 5-fold through 2025 The stable government combined with strong economic growth will provide great opportunities for all businesses Currently China already has 115 people in Fortune's list of World Billionaires, while Indonesia has only 14 people. By 2025, the number of Indonesian billionaires could surpass 115
Source: Masterplan Percepatan dan Perluasan Pembangunan Indonesia
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Closing

Indonesias is expected to continues its strong performance This robust growth is driven by favorable demographics, strong natural resources and consumer sectors and developing infrastructure, as well as broad based geographic growth Indonesia is moving forward to address challenges in funding, infrastructure, bureaucracy, human resources, and technology Indonesias economy is projected to grow 5-fold by 2025, thereby making Indonesia the worlds next economic power

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Thank You

Chairul Tanjung
Chairman of National Economic Committee (KEN)