WONDERFUL INDONESIA FOR BUSINESS AND TOURISM A presentation by H.E. Maruli Tua Sagala Ambassador of the Republic of Indonesia to Hungary and the Republic of Macedonia September 12, 2013

GEOGRAPHY OF INDONESIA

SIZE OF INDONESIA Size of land area: 1,811,569 km2 Size of sea area: 7.9 million km2 Length of coastline: 54,716 km (second to Canada with 202,080 km) Archipelagic country: more than 17.000 islands Location: between mainland Asian and Australian continents and Indian and Pacific Oceans

Social-Culture Indonesia is home for 240 million people. It is the 4th most populous nation in the world.  Multiculture: more than 350 ethnic groups, with different local cultures and local languages Over 50% of the population is under the age of 29 and 60% of the population is under the age of 39. Around 52% of the population lives in urban areas.  These indicators show a dynamic labour market participation. For advancing human capital, Indonesia allocates 20% of its annual total expenditure on education and skill formation.

Economy The success of the Indonesian economic development has brought Indonesia into the G20. Since 2012 Indonesia has improved its position to be the 16th biggest economic capacity. Indonesia’s economic growth reached 6.3% in 2012 and is expected to have 6.3% this year, and will be 6.5% in 2014. However the growth for this year has been corrected to be 5.9%, as a more realistic target, due to the global economic uncertainty. The result of the prudent fiscal stewardship to reduce the debt burden, Indonesia’s debt to GDP ratio has steadily declined from 83% in 2001 to less than 25% by the end of 2011, the lowest among ASEAN countries.  Standard Chartered report: Future economic expansion is expected to include more inclusive growth as nominal per-capita GDP is expected to quadruple by 2020.

Economy Moody’s and Fitch has uplifted Indonesia’s credit rating to investment grade status. It reflects that Indonesia is economically strong, politically stable and reform minded.

World’s second largest exporter NATURAL RESOURCES Pricewaterhouse Coopers: Indonesia is a renowned market for resource extraction, seen as even more attractive than for instance, South Africa, Australia and Canada in terms of mineral prospectivity. Some natural resources of Indonesia function as its economic potentialities are the following: Crude Oil Natural Gas Thermal Coal Geothermal Palm Oil Cocoa Tin Rubber Key Metrics Over 3.5 bn barrels of proven reserves About 112 tn cubic feet of reserves World’s second largest exporter Home to 40% of world’s resources World’s largest exporter, producing about 19 mn tons per year At 770 thousand tons per year, world’s second largest producer At 65 thousand tons per year, world’s second largest producer World’s largest producer, at 2.4 mn tons

MASTERPLAN FOR ACCELERATION AND EXPANSION OF ECONOMIC DEVELOPMENT Indonesia is implementing the master plan for the period of 2011 to 2025. The objective is to drive the realization of high, balanced, fair and sustainable economic growth and transform Indonesia into one of the 10 major economies in the world by 2025. The private sector (SME’s) will be given a major role in economic development, particularly in the area of infrastructure. To achieve the plan, the economic development is directed to create regions to be the venues of the strongest sources of economic growth.

MAP OF THE MASTER PLAN

MASTERPLAN FOR ACCELERATION AND EXPANSION OF ECONOMIC DEVELOPMENT To make the plan applicable Indonesia is divided into 6 economic corridors which will be connected to one another. The six corridors are Sumatra; Java; Kalimantan; Sulawesi; Bali and Nusa Tenggara; Maluku and Papua. Along with it will build and improve infrastructure to connect all the regions having been strong sources of the economic growth in the intertwining of the six economic corridors. The connectivity will enhance the effectiveness and efficiency of the movement of people and commodities in Indonesia.

The Sunda Strait Bridge, 27 kms

BUSINESS OPPORTUNITIES More than 50 million people of the 240 million population of Indonesia are middle class accompanied by the uptrend of their income. They have strengthened the purchasing power of domestic consumption, which in turn positively contributes to the economic growth. The foreign investment with a total value of $18 billion (2012) has driven the economic activities. There are various immediate projects, such as the world’s longest suspension bridges of the Sunda Strait with the length of 27 kms (construction is expected to start in 2014) building 20,000 kms of roads, 15,000 MW of power plants, seaports, airports, railways, coal power plants, spring water projects, oil refineries and other supporting infrastructures.

THE 63TH MISS WORLD IN BALI, INDONESIA SEPTEMBER 2013

DISCOVER INDONESIA Geographically and culturally Indonesia is always depicted as the most beautiful equatorial pearls. Indonesia offers the most diverse attractive natural wonders and cultural diversity, which is different in their uniqueness and beauty from island to island and from region to region. Indonesia is rich with heritage sites such as the Borobudur Buddhist temple and the Prambanan Hindu temple (both built in the 9th century). Indonesia has the 3rd largest rainforest which is rich in biodiversity.

Borobudur Buddhist temple built in the 9th century

Prambanan Hindu temple built in the 9th century

DISCOVER INDONESIA Indonesia has begun to develop 50 national tourist destinations until 2025 within which there are 88 strategic areas of tourism and 222 potential tourist sites. Indonesia achieved 8 million international visitors in 2012 and will target 9 million in 2013 and 10 million in 2014. Based on the tourism achievement in 2011, tourism sector contributed 4.06% to the National GDP, 6.87% to total national workforce (7.44 million people).

awaits the visit of Hungarian business delegations Tanah Lot - Bali island awaits the visit of Hungarian business delegations Thank you! Köszönöm!