Embassy of the Republic of Indonesia Moscow INDONESIA March 24, 2015 INDONESIA. and the world
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1 Embassy of the Republic of Indonesia Moscow INDONESIA INDONESIA and the world
2 Embassy of the Republic of Indonesia Moscow INDONESIA Global Flows A common thread in economic growth for centuries, since the Silk Road, Mercantilist Colonial periods The Industrial Revolution.
3 Embassy of the Republic of Indonesia Moscow INDONESIA GDP s Today, the movement of goods, services, finance and people reached previously unimagined levels. Creating new degrees of connectedness among economies and playing an ever-larger role in determining the fate of nations Unconnected Companies, and individuals to fall behind.
4 Embassy of the Republic of Indonesia Moscow INDONESIA Trade 2014 Flows of goods, services, and finance reached $31 trillion or 36 percent of global GDP, 1.5 times the level in one in three goods crosses national borders, more than one-third of financial investments are international transactions.
5 Embassy of the Republic of Indonesia Moscow INDONESIA Growth In the next decade, global flows could triple, Powered by rising prosperity and participation in the emerging world and the spread of the Internet and digital technologies. Global flows could reach $54 trillion to $85 trillion by 2025, More than double or triple their current scale.
6 Embassy of the Republic of Indonesia Moscow INDONESIA Global Flows It is estimated that Global Flows add between $250 billion and $450 billion to Global GDP Growth or 15 to 25 percent of the total. (P.A.) Countries with a larger number of connections in the global network of flows increase their GDP growth by up to 40 percent more than less connected countries do. The penalty for being left behind is rising.
7 Embassy of the Republic of Indonesia Moscow INDONESIA Global Flows New Connectedness Index ranks 131 countries on total flows of goods, services, finance, people, and data and communication, adjusting for country size. Developed economies remain more connected than emerging ones:
8 Embassy of the Republic of Indonesia Moscow INDONESIA Advancing Countries Ranking Germany Hong Kong Singapore. Emerging economies are less connected to global flows Some climbing up the ranks rapidly between Morocco Gained 26 Places Mauritius gained 28 places Saudi Arabia rose 19 place (reflecting the rising value of oil exports and the recycling of oil wealth into global financial markets. India gained 16 places in this period, (growth in services) Brazil jumped 15 places (services and financial flows)
9 Embassy of the Republic of Indonesia Moscow INDONESIA World Finances Financial globalization Retreat? Reset?
10 Embassy of the Republic of Indonesia Moscow INDONESIA TECHNOLOGY Disruptive technologies Advances will transform life, business and the global economy Urban world: The shifting to global
11 Embassy of the Republic of Indonesia Moscow INDONESIA CHANGING PEOPLE S LIFE What are the main factors that will change the size of Global Flows: Connectivity Communication Hardware and Software development (technology) The Internet Social media Traditional Media.
12 Embassy of the Republic of Indonesia Moscow INDONESIA DO OR DIE? Grow Fast or Die slow!! Singapore Malaysia Korea China
13 Embassy of the Republic of Indonesia Moscow INDONESIA Growth trumps all. Grow or Die Slowly 3 pieces of evidence attest to the paramount importance of growth. 1 Growth yields greater returns. High-growth companies offer a return to shareholders five times greater than medium-growth companies. 2 Growth predicts long-term success. Supergrowers companies whose growth was greater than 60 percent when they reached $100 million in revenues were eight times more likely to reach $1 billion in revenues than those growing less than 20 percent. 3 Growth matters more than margin or cost structure. Increases in revenue growth rates drive twice as much market-capitalization gain as margin improvements for companies with less than $4 billion in revenues. There seems to be no correlation between cost structure and growth rates.
14 Embassy of the Republic of Indonesia Moscow INDONESIA Where is Indonesia? WHERE ARE WE. Where are Indonesia s Products? How do they Compete? What do they Need? Who can help them?
15 Embassy of the Republic of Indonesia Moscow INDONESIA Grow or die slowly Company leaders understand their growth trajectory and determine whether their current products and strategy are sufficient to reach their aspiration. Domestically, Regionally, Globally? Can Indonesia Leap Frog?
16 Embassy of the Republic of Indonesia Moscow The Internet (communication) The Internet puts Marketing in the spot Light The world is more connected than ever. Unparalleled reach of digital media (particularly Internet-based social media) Widespread adoption of mobility devices. V.O.I.P.
17 Embassy of the Republic of Indonesia Moscow The Internet The next five years are likely to bring a threefold increase in the number of computing devices in use Consumer adoption of social media will exceed the scale of all previous technologies.
18 Embassy of the Republic of Indonesia Moscow The Internet The Internet revolution impacted everything from Consumer video consumption to home security. Online Trading Education Online Marketing / Promotion Live Entertainment Global Sports (just ti mention a Few)
19 Embassy of the Republic of Indonesia Moscow The Internet (Human Rights) Three effects in particular, however, have very specific implications for online stores, Digital devices, Social media.
20 Embassy of the Republic of Indonesia Moscow INDONESIA The Internet (Human Rights) Twitter, blog postings, mobile Web and mobile device applications have now become core.
21 Embassy of the Republic of Indonesia Moscow INDONESIA Social Media The social consumer decision journey. Companies have learned that social media works: 39 percent of Multinational companies use socialmedia services as their primary digital tool to reachcustomers, Expected to rise to 47 percent within the next four years. (Fueling this growth is a growing list of success stories.)
22 Embassy of the Republic of Indonesia Moscow INDONESIA Facebook Facebook owns social data, it knows the interests and motivations of the entire consumer web. It does not necessarily know about intent the real time intentions of users. (Agencies do?)
23 Embassy of the Republic of Indonesia POLAND - INDONESIA INDONESIA An Emerging Economic Powerhouse in Asia 23
24 Embassy of the Republic of Indonesia Moscow Desk Top vs. Mobile ad Spending.
25 Embassy of the Republic of Indonesia Moscow INDONESIA 25
26 Embassy of the Republic of Indonesia Moscow INDONESIA General demographics : INDONESIA Tabel 1. Luas Daerah dan Jumlah Penduduk Berdasarkan Pulau-Pulau Besar Population Land Area M2 Sea Area #Islands Shore Line Dialects Ethnic Groups M Pulau Km 67 Bahasa 370 Suku Bangsa Island Luas Pulau Jumlah penduduk Jawa Km Sumatra Km Kalimantan Km Sulawesi Km Bali Km Irian Km Sumber : 26
27 Embassy of the Republic of Indonesia Moscow Tabel 2. Data Statistik Penduduk Indonesia tahun
28 Embassy of the Republic of Indonesia Moscow INDONESIA is known as: A Rich Country The Pearl on the Equator A Milk Pond A stick that can turn into a bar of Gold Our Anchestors were sailors INDONESIA s Richness: Among the 10 th richest countries that has Natural Resources. Has Fauna and Flora Spieces Startegicly located among 4 Continents and 2 Oceans The 4 th largest Market with 240 million people The second longest shore line on the globe The biggest Tourism Potential in the world. 28
29 Embassy of the Republic of Indonesia Moscow Categories of Nations 1. Rich Nations where the people are rich. USA, Australia, Canada etc. 2. Poor Nations where the People are poor. Uganda, Ethiopia,Bangladesh etc. 3. Poor Nation where the people are rich. Japan,Korea,Switzerland,Singapore,etc. 4. Rich Nations where the People are poor.???? 29
30 Embassy of the Republic of Indonesia Moscow INDONESIA Agricultur and Sea Potentials: 15 th largets in the world Land Wise 4 th Largest population 6 th Largest seed Base Agricilture 6 th largest Producer of Tea 4 th Largest Producer of Coffee 3 rd Largest Producers of Coffee 2 nd Largest Producer of C.P.O. 1 st Largest Producer of Spices (White and Black) Largest Prouducer of Nutmeg. 2 nd largest Producers of Rubber 4 th Largest producer od Sybtetic Rubber Largest Plywood Producers in the world 6 th largest producer of Fish (Suppossedly #1) 30
31 Embassy of the Republic of Indonesia Moscow Oil / Gas and Natural resources Potential Tin # 2 Coal # 9 Ore # 3 Oil # 11 Natural # 6 LNG # 3 Gold # 8 Aspal, Bauxit, Nikel, Granit, Silver, Uranium Marbel Penghasil Marmer serta Mineral ikutan lainnya 31
32 Indonesian Energi Potentials and the Asean Nations Embassy of the Republic of Indonesia Moscow 32
33 INDONESIA the LUNGS of earth. Indonesia, Brazil and Central Africa is where most of the Active Clouds are formed, and will determine the Global Climate. The Environmental condition in these area will determine global climate. Indonesia more than Brazil and Central Africa, due to it shallow waters and sun rays that converts more see water than any other country on the globe. Indonisian Rain Forest and the Amzone are the Lungs of the World and can absorb more CARBON DIOKSIDA (CO2 up to 2,5 KG METER3 / annum. Indonesia could make it as a negotiation trump card in any world agreement Howeever re Forestration is now a must and Indonesia will have to do its home work to correct thesituation. Embassy of the Republic of Indonesia Moscow 33
34 Embassy of the Republic of Indonesia Moscow Social Realities that are of concern Poor peopla 28,1 Million. Almost Poor 70,6 Million. Unemployed 11,1 Million. Half Unemployed 9,4 Million. (total 40,5 million of the 38% productive work force (107 million or 18,5% of the Population). 34
35 INDONESIA IN ASEAN (33 Provinces) Largest Archipelago: islands (5 main islands, 6000 islands inhabited) Stretching east to west in the equator for 5.150km (±3200 miles) Abundance of Natural Resources & Fertile Soil A vast, huge, diverse and polyglot nation with 250 million population, 500 ethnic groups and 700 dialects 35
36 Embassy of the Republic of Indonesia Moscow Facts and Figures AGE STRUCTURE % 42.3% 14.3% INTERNET USERS INDONESIA 15.82% WORLD 35.6% GDP PER CAPITA INDONESIA US$ 5,200 WORLD US$ 13,100 LIFE EXPECTANCY INDONESIA WORLD 70.8 LITERACY RATE INDONESIA 92.8% WORLD 84% UNEMPLOYMENT RATE INDONESIA 6.6% WORLD 5.86% SECTOR OF ECONOMY INDUSTRY SERVICES AGRICULTURE 46.6% 39.1% 14.3% 36
37 Embassy of the Republic of Indonesia Moscow Demographic and Economic Distribution Medan (2,11mn) 13,6% 16,4% 8,8% Bandung (2,49mn) Jakarta (9,79mn) Surabaya (2,78mn) 5,2% Semarang (1,57mn) 50,7% population live in urban areas 53,7% 2,3% 37
38 Embassy of the Republic of Indonesia Moscow INDONESIA ECONOMIC PROFILE Economic Growth Inflations Avarage 5 6% annually Avarage 4-6 % annually Unemployment Rate 5 6 % in the end of 2014 Poverty Rate 8 10 % in the end of GDP: USD 700 Billion Income/capita: USD 3, GDP: USD 800 Billion Income/capita: USD 3, GDP: USD 1,3 Trillion Income/capita: USD 5, GDP: USD 1,7 Trillion Income/capita: USD 5, GDP:? Income/capita :? 38
39 Embassy of the Republic of Indonesia Moscow Indonesian Economic Growth and the World Economic Growth The Economic Growth of the World * Central and Eastern Europe * ASEAN 5 (Indonesia, Malaysia, Philippines, Thailand and Vietnam) The Economic Growth of Indonesia * Estimation (IMF, 2014) 39
40 Embassy of the Republic of Indonesia Moscow INDONESIA S INVESTMENT PERFORMANCE Poland ranked 49 th (US$ 20 mn) Investment Realization: Country Origin Others Singapore Japan Netherlands UK Malaysia US$ 1.4 bn (6%) US$ 1.5 bn ( 7%) US$ 1bn (5%) US$ 2 bn (9%) US$ 10.9bn (50%) US$ 4.9 bn (23%) 40
41 Embassy of the Republic of Indonesia Moscow The History of our Relationship with Rusia Russia is one of Indonesia s major trading partners. The trade volume between the two countries in 2011 reached $1.8 billion in the year s first nine months, an increase of 50 percent from the same period in Russia, Indonesia are expecting a $5 Billion in Trade 41
42 Embassy of the Republic of Indonesia Moscow INDONESIA S MARITIME & FISHERIES POTENTIAL 42
43 Embassy of the Republic of Indonesia Moscow Government of Indonesia Policy on Maritime Creating Sea Highways Improving, revitalizing country s shipyards. Building new shipping vessels and fishing motherships Construction of new prime and secondary ports. 43
44 Embassy of the Republic of Indonesia Moscow Port : Commercial ports throughout the country - Only14 ports handle the international traffic - Expansion of ports capacity to handle TEU Vessels: ships (2013, Indonesia Ship Owners Association) - 17,89 million Gross Ton 44
45 Embassy of the Republic of Indonesia Moscow INDONESIAN FISHERIES PRODUCTION (million ton) Capture (million ton) Farming (million ton) CONSUMPTION (kg/capita) EXPORT ($ Billion) Source ; MOMAF-RI 45
46 Embassy of the Republic of Indonesia Moscow Indonesian Fishing Grounds 46
47 Embassy of the Republic of Indonesia Moscow CONCLUSSION: In other words, the future Of Indonesia is to become an integrated digital marketing world, that is based on : INFORMATION TECHNOLOGY COMMUNICATION
48 Большоеспасибо Bol'shoye spasibo Embassy of the Republic of Indonesia 48
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