Indonesia : Presentation at the Università degli studi di Napoli L'Orientale

Indonesia in a nutshell

Embassy of the Republic of Indonesia, Rome

14 April 2010

Indonesia : Location in the World

Indonesia : Map

Map Source : EIU

Indonesia : Basic Data

Info source : EIU

Land area

Population

Climate

Language

Currency

Time

Public holidays

Indonesian (Bahasa Indonesia), as well as more than 300 other regional languages and dialects. English is widely spoken in government and business circles

1,904,443 sq km

240m (estimate)

Tropical

Rupiah (Rp).

€ 1 = Rp. 12059 (7 April 2010)Divided into three parts: Western Zone 7 hours ahead of GMT, Central Zone 8 hours ahead, Eastern Zone 9 hours ahead

New Year, January 1st; Independence Day, August 17th; Christmas, December 25th. Other moveable holidays: Nyepi, Easter, Miraj, Ascension Day, Waisak, Eid al-Fitr, Eid al-Adha, Islamic New Year, Maulud

Weather in the Capital (Jakarta)

Hottest months, April-May, 24-31°C; coldest months, January-February, 23-29°C; wettest months, January-February, 300 mm average rainfall

Indonesia : Political Highlights

Economic and political reform which was started in 1998 has now transformed Indonesia to become the third largest democracy in the world. Indonesia is also the home of the largest muslim population in the world, demonstrating that Islam, modernity and democracy can live side by side in peace, harmony and synergy for conducive development environment.

The current president, Susilo Bambang Yudhoyono, won a second five-year term in the presidential election in July 2009, with the running mate former Governor of Indonesian Central Bank, Boediono.

The next presidential and parliamentary elections are due in 2014, and as per Indonesian Constitution, Mr Yudhoyono could not contest for a third term. The 2014 presidential election will be the third direct election in the reform era.

Indonesia has committed zero tolerance towards corruption. Anti Corruption Commission has recovered over US $ 400 millions.

Indonesian Foreign Policy doctrine “bebas aktif” or “free and active” is now translated in the colloquial jargon “one million friends and zero enemies”, reflecting Indonesia’s aspiration to bond strong relationship with all members of the international community.

Indonesia : Foreign Policy

Product of a nation’s history, culture, collective memories, geo-politics and leaders’ response to national and international realities

Response to challenges and opportunities

Expression of Value: Based on Pancasila (Five Principles), Preamble of the 1945 Constitution

Muhammad Hatta’s Speech: Rowing Between Two Reefs (1948)

Free and Active Foreign Policy: Indonesia will always avoid from entering into any military/defense pact, active to promote peace and justice in the world

Connectivity: Asia-Africa Conference in Bandung 1955, Founding ASEAN in Bangkok 1967

Current catch phrase : “One million friends, zero enemies”

ASEAN as the corner stone of Indonesian Foreign Policy and active engagement in other multilateral fora (UN, G20, ASEM, APEC, etc)

Objectives of Indonesia’s foreign policy: Attainment of an Indonesia that is just, democratic, prosperous and secure in its unity, as enshrined in the 1945 Constitution

Indonesia : ASEAN as cornerstone of Indonesian Foreign Policy

Association of South East Asian Nations (ASEAN) was established in Bangkok on 8 August Association of South East Asian Nations (ASEAN) was established in Bangkok on 8 August 1967.1967.

10 Member countries : Indonesia, Malaysia, Singapore, Thailand, The Philippines (1967), Brunei Darussalam (1984), Viet Nam (1995), Laos and Myanmar (1997), Cambodia (1999).

Bangkok Declaration 1967:

To accelerate economic growth, social progress and culture development

To promote regional peace and stability through abiding respect for justice and the rule of law in the relationship among countries in the region and adherence to the Principles of the United Nations Charter

ASEAN Community Building 2015.

ASEAN Political and Security Community

ASEAN Economic Community

ASEAN Socio-Cultural Community

Indonesia : ASEAN as cornerstone of Indonesian Foreign Policy

Single Market and Production

Base

Equitable Economic

Development

Competitive Economic Region

Integration to theGlobal Economy

POLITICAL-SECURITY

SOCIAL CULTURE

ECONOMY

Strengthening of the foundation of social

cohesion

Enhancing environmental sustainability

Managing social impact of economic integration

Building a community of caring societies

Conflict Resolution

Conflicts Prevention

Shaping & sharing of norms

Political Development

Post Conflict Peace building

Indonesia : Prominent Regional and Global Player

Indonesia lies at the intersection of the Pacific Ocean, along the Malacca Straits and the Indian Ocean

Over half of all international shipping goes through Indonesian waters.

Indonesia is the only member from Southeast Asian Countries to the G-20, being the latest global grouping for transnational economic policy.

Indonesia is a leading member of ASEAN. After struggling for many years, Indonesia has finally pushed the other ASEAN Member States to the establishment of the ASEAN Human Rights Body in ASEAN.

Indonesia is emerging as a key player on cross-cutting international policy issues as climate change, which will have direct and indirect impacts on business and investment decisions.

Increasingly, Indonesia is playing a more dominant role in global affairs.

Indonesia : Economic Highlights

GDP in 2009 is nearly of US$ 550 billion

The third fastest growing economy in Asia and the largest economy in Southeast Asia.

Much less affected by the global financial crisis than its neighboring countries

Indonesia’s economy grew by 4.5% in 2009 and is predicted to climb to 5.6% in 2010 and 5.9% in 2011.

Indonesia’s debt to GDP ratio has steadily declined from 83% in 2001 to 29% by the end of 2009, the lowest among ASEAN countries.

Indonesia is ranked 1st among Asia-Pacific sovereigns by Standard & Poor’s for best fiscal balance.

Indonesia : Comparative GDP, 2008

Info source : EIU

Gross domestic product(US$ bn; market exchange rates)

Gross domestic product per head(US$; market exchange rates)

Indonesia : Market Opportunities

Info source : EIU

GDP per head(US$ at PPP)

The Indonesian consumer market is the largest in South-east Asia, being worth an estimated US$316.7bn in 2009.

Economic integration between the members of the Association of South-East Asian Nations (ASEAN) will vastly increase the size of the market into which firms based in Indonesia can sell without encountering trade barriers.

Infrastructure development will create opportunities, particularly in the telecommunications and energy sectors.

Indonesia : Economic Outlook

Info source : EIU

Economic outlook(% real change)

2010 2011 2012 2013 2014Real GDP growth 5.6 5.9 6.2 6.2 6.3

Private consumption 4.5 5.3 5.4 5.5 5.6

Government consumption 11.1 6.0 5.3 4.6 4.6

Gross fixed investment 8.0 8.5 8.7 8.7 8.9

Exports of goods & services 13.5 7.6 7.7 7.9 7.8

Imports of goods & services 17.5 9.0 8.3 8.6 8.4

Indonesia's average real GDP growth rate is expected to accelerate to 6% a year in 2010-14, from 5.6% in 2005-09.

Consumer price inflation is expected to average 6.2% a year in 2010-14, down markedly from 8.9% in 2005-09.

The current account will remain in surplus in 2010-14, and the ratio of external debt to GDP will continue to fall.

The president, Susilo Bambang Yudhoyono, has prioritised reforms to the business operating environment in a bid to attract more FDI. Mr Yudhoyono has pledged to continue to pursue a reform agenda that increases the country's appeal to foreign investors

Efforts are being made to prosecute those believed to be involved in corruption, while infrastructure projects are being promoted and the tax regime is being streamlined.

Indonesia : Tourism Potential

• Indonesia possesses the second longest shoreline in the world with its tropical climate, nature and unique culture.

• Indonesian Tourism offers white sand beaches and blue sky imagery and unique culture. • Beach resorts and hotels were developed in many of Indonesia islands, with Bali, Toraja, Prambanan and

Borobudur, Yogyakarta, Minangkabau and Bunaken are among the most popular destinations• Tourist attractions:

• Eco Tourism :forest in Java and Sumatra, Bali, Lombok, Bintan and Nias Island, Karimunjawa, Togan Islands, and Banda Islands

• Diving Sites: Bunaken in Sulawesi, Candidasa, Menjangan, Nusa Lembongan and Nusa Penida in Bali, Gili Air, Gili Manuk and Gili Trawangan in Lombok

• Surf Breaks: 33 Spots in Bali all across the island, 18 Spots in Sumatera. The common time for surfing is around May to September with the trade winds blowing from east to south-east. From October to April, winds tend to come from the west to north-west, so the east coast breaks get the offshore winds.

• National Parks: There are 50 national parks in Indonesia, of which six are World Heritage listed, in Sumatera, Papua, Nusa Tenggara and Java.

• Cultural Tourism: Indonesia consists of at least 300 ethnic groups, spread over a 1.8 million km² area of 6,000 inhabited islands. This creates a cultural diversity, further compounded by Hindu, Buddhist, Islamic and European colonialist influences.

• Metropolitan Tourism: Shopping, Golfing, Night Life, Spa, etc

Indonesia : Challenges and opportunities in the next several years

The current political stability is likely to remain. The security situation has improved considerably in recent years, but the bombing of two luxury hotels in the capital, Jakarta, in July 2009 shows that the threat of terrorism still exists.

Democracy will continue to flourish and enter into a more mature stage, with the Indonesian people become more accustomed to direct elections in regional levels as well as with more open and transparent media. Challenges to be overcome is among others the issue of decentralization and regional autonomy, with some cases of differing understanding about law and regulation between central and regional governments.

Relations among different religious and ethnic groups in Indonesia will become stronger. People have been fatigue of provocations that brings ethnic or religious symbols.

Indonesia’s business environment rankings will continue to improve in 2010 14. The relative strength of ‑Indonesia's economy as the global economic recession ends means that it scores well in the macroeconomic environment category. The challenge will be to boost the pace of privatisation and to protect the labour market.

Indonesia’s economic growth is expected to reach an average of 6% a year in 2010-14, up slightly from 5.6% in 2005-09. Indonesia performed well during the recent global economic recession because of the strength of domestic demand, and private consumption will continue to drive growth during the forecast period. Strong investment growth is also expected.

Indonesia : Highlights of Bilateral Cooperation with Italy

Italy recognized Indonesia’s sovereignty on 29 December 1949. Indonesian Office in Rome was established in March 1952, while Italian Office in Jakarta was opened in October 1951. Both countries agreed to elevate their respective offices to Embassy level in December 1953.

Bilateral relations between Indonesia in Italy is in a very good condition.

The two countries signed the MoU on Political Consultation in 2009 which would be the umbrella of other cooperation between the two countries.

Close cooperation in Inter-faith and inter-cultural dialogue.

Italy – Indonesia inter-parliamentary commission.

Italy – Indonesia friendship association.

Indonesian Police officers are trained in COESPU, Vicenza.

Our two countries support each other for candidacy in international organizations.

No political friction between Italy and Indonesia.

Indonesia : Highlights of Bilateral Cooperation with Italy

Recent high level visits of Indonesian officials to Italy:

Visit of Indonesian Defense Minister (19-21 April 2007)

Visit of Indonesian Agriculture Minister for the ” 60th Campionaria Internationalle Expo 2008” (7-15 June 2008)

Visit of Indonesian Trade Minister (16-18 May 2008)

Visit of Indonesian Foreign Minister (4 March 2009)

Visit of Indonesian Head of Investment Office (20 May 2009)

Visit of Indonesian Head of Oil and Gas Office (19 June 2009)

Visit of Indonesian Vice President, in lieu of the World Food Summit (November 2009)

In economic cooperation, trade relations between Indonesia and Italy always shows surplus for Indonesia side. In 2008, total trade betwen Italy and Indonesia reached USD 2.899 billion, with Indonesia’s export to Italy of USD 1.38 billion, and Indonesia’s import from Italy of USD 667.5 million.

Main export products from Indonesia to Italy comprise of coal, footwear, palm oil and its fraction, video recording, natural rubber, furniture, coffee, chemical woodpulp, tin, and seat. While main import products from Italy to Indonesia include leather goods, accessories for motor vehicles, electronic apparatus for line telephone, etc

Indonesia : Highlights of Bilateral Cooperation with Italy

RANKING OF FOREIGN DIRECT INVESTMENT REALIZATION OF EUROPEAN COUNTRY, JANUARY 1 – DECEMBER 31, 2009

NO. COUNTRY No of Project US $ Million %

1. The Netherlands 32 1.198,7 11,1

2. United Kingdom 61 587,7 5,4

3. Switzerland 11 132,1 1,2

4. Germany 18 103,9 1,0

5. Italy 11 41,1 0,4

6. France 12 29,0 0,3

TOTAL 145 2.092,5 19,4

Source : BKPM, 2010

Indonesia : Highlights of Bilateral Cooperation with Italy

Info Source : http://darmasiswa.diknas.go.id

Darmasiswa Scholarship. DARMASISWA is a scholarship program offered to all foreign students from countries which have diplomatic relationship with Indonesia to study Bahasa Indonesia, arts, music and crafts. Participants can choose one of 45 different universities located in different cities in Indonesia. This program is organized by the Ministry of National Education (MoNE) in cooperation with the Ministry of Foreign Affairs (MFA).

The main purpose of the DARMASISWA program is to promote and increase the interest in the language and culture of Indonesia among the youth of other countries. It has also been designed to provide stronger cultural links and understanding among participating countries.

Darmasiswa RI Program is conducted in 2 schemes, i.e :

Regular 1 (One) Year -Darmasiswa RI scholarship Program. This is a one-year scholarship program offered to foreign students from countries which have diplomatic relationship with Indonesia to study Indonesian language and Art (traditional music, traditional dance, and Indonesian craft) in selected Indonesian Higher Education Institutions.

Regular 6 (Six) Months - Darmasiswa RI scholarship Program. This is a six-month scholarship program offered to foreign students from countries which have diplomatic relationship with Indonesia to study Indonesian language in selected Indonesian Higher Education Institutions.

Monthly allowance will be received by participant is Rp 1.500.000,00 (one million and five hundred thousand rupiah), and will be transferred to the University/college where they study. The participant is advised to bring enough money in US dollar for unexpected additional expenses in Indonesia

Indonesia : Highlights of Bilateral Cooperation with Italy

Info Source : http://darmasiswa.diknas.go.id

Procedures. The applicant should apply through the following procedures:

Indonesian Embassy/Consulate General in the country of residence.

Visit the website at: www.darmasiswa.diknas.go.id. applicants should notify to the Indonesian Embassy/Consulate General before applying online.

In 2009, the Government of the Republic of Indonesia offered to the Italian public a total of 10 Darmasiswa Scholarships with the following breakdown: 8 for the 1-year programme and 2 for the 6-month programme.

Due to personal circumstances, both candidates for the Short Course chose not to take up the Scholarship. While for the Regular Program, 5 out of 8 confirmed. In total, the Italian public utilizes 5 out of 10 scholarships offered by the Indonesian Government.

Previously in 2008, there were 6 scholarship given, 9 scholarship in 2007, and 4 scholarship in 2006.

Indonesia : End of Presentation

TERIMA KASIH BANYAK DAN SAMPAI BERJUMPA KEMBALI.

GRAZIE MILLE E CI VEDIAMO.

Embassy of the Republic of Indonesia - RomeTel. 06 4200911Fax. 06 4800280http://embassyofindonesia.it