Doing Business In Indonesia: 2012 Country - Export.gov

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private companies to involve in transmission and distribution business. Private companies are allowed to provide electricity from its generation plant for 30 years. It is estimated that the value of imported products from the U.S. will increase by another 15 percent in 2012. Indonesia imported $1,010 million of electrical power equipment in 2010. The market share of U.S. products was 32 percent of imported products. The other major suppliers in Indonesia are from China, Singapore, Japan, France and Germany. Indonesian companies usually imported U.S. products directly or through an agent/distributor in Singapore. Sub-Sector Best Prospects Return to top U.S. companies are strong competitors in boilers, parts for boilers, parts for turbines, electrical generating equipment, transformers, lightning arresters, junction boxes, panel boards, and electrical conduit. Opportunities Return to top The new National Electric Generation Plan (RUPTL) 2011-2020 predicted that the electricity demand will grow 8.5% per year. By 2020, the electricity demand will reach 328.3 TWh (terrawatthour), electrification ratio 94%, and 69 million of customers. During 2011-2020, it is estimated that the total investment needed for electricity development will reach US$ 96.2 billion. Development of power plants will need US$67.8 billion, transmission network US$ 14.9 billion and distribution network US$ 13.4 billion. From the total investment, PT PLN will have to invest US$ 60.5 billion and the rest will come from IPPs. Construction of power plants, transmission and distribution lines in Indonesia should bring significant commercial opportunities for U.S. companies that supply engineering services and equipment such as turbines, substations, transmission, transformers and distribution equipment. Web Resources Return to top Directorate General of Electricity, Ministry of Energy and Mineral Resources Website: http://www.djlpe.esdm.go.id/ PT Perusahaan Listrik Negara Website: http://www.pln.co.id
Franchises Overview Return to top 2010 2011 2012 (estimated) 2013 (estimated) Total numbers of franchises 370 380 399 423 Local franchises 92 97 102 112 Foreign franchises 278 283 297 311 U.S. franchises 153 155 158 162 Data Source: Indonesian Franchise Association Indonesia is a great long-term market for franchise businesses. The local industry started with three franchises in the 1970s and grew to some 35 franchises with 308 outlets by the early 1990s. The franchise industry began to gain widespread popularity in the early 1990s when many well-known American franchises arrived in Indonesia. By August 1997, the number of franchises reached 253 with a total of more than 2,000 outlets. The industry faced a sharp downturn in 1997-1998 as a result of the Asian monetary crisis. The industry began to recover in late 1999 when 17 new foreign and nine domestic franchises entered the market. Presently, there are approximately 283 foreign and 97 local franchises operating in Indonesia covering a wide range of franchise sectors. American franchises dominate the franchise industry in Indonesia. Until recently, estimated future growth in the franchise industry was considered to be around five percent per year. Sub-Sector Best Prospects Return to top Food and Beverages (F&B) is the most popular and has the greatest potential. Other high potential sectors include education products and services (early childhood education), and retail (specialty stores). Opportunities Return to top Local investors are very receptive to U.S. franchises. Indonesia’s rising disposable incomes and growing young population make it an attractive opportunity. Although the Indonesian franchise market is very competitive, the high demand for U.S. franchises, especially in the food and beverage sector, presents significant opportunities for U.S. franchisors. U.S. franchises are generally well received by Indonesian consumers and compete successfully with franchisors from other countries. Quality, name recognition, and innovation all play a big part in the success of U.S. franchises with Indonesian investors. In addition to product pricing, U.S. franchisors must consider adapting to local taste to guarantee success in the Indonesian market.
Page 1 and 2: Doing Business in Indonesia: 2012 C
Page 3 and 4: • More than 60 million low-income
Page 5 and 6: capital and manpower into making th
Page 7 and 8: Return to table of contents Chapter
Page 9 and 10: conducting trade activities and sal
Page 11 and 12: advantages over a foreign trade rep
Page 13 and 14: Electronic Commerce Return to top T
Page 15 and 16: eceiving 63 percent of advertisemen
Page 17 and 18: efforts to protect IP and stop coun
Page 19 and 20: Return to table of contents Chapter
Page 21 and 22: Indonesia’s major airports are al
Page 23 and 24: Computers & Peripherals Overview Re
Page 25 and 26: Education & Training Overview Retur
Page 27: Electrical Power Systems Overview R
Page 31 and 32: Medical Equipment & Supplies Overvi
Page 33 and 34: Mining Equipment Overview Return to
Page 35 and 36: • Ancillary services such as equi
Page 37 and 38: Based on market observations and di
Page 39 and 40: CAPEX for nine operators (GSM and C
Page 41 and 42: Sub-Sector Best Prospects Return to
Page 43 and 44: Soybeans Return to top Indonesia is
Page 45 and 46: Wheat Return to top In MY 2009/10 U
Page 47 and 48: soybeans, fertilizer, and feed ingr
Page 49 and 50: decree includes a requirement for p
Page 51 and 52: • Accreditation • Publication o
Page 53 and 54: language, numbers, and letters othe
Page 55 and 56: higher education, the Negative List
Page 57 and 58: testing. The law seeks to clarify r
Page 59 and 60: Expatriates are issued a Limited St
Page 61 and 62: Transparency of Regulatory System R
Page 63 and 64: Private enterprises can compete wit
Page 65 and 66: state. Outside of those parameters,
Page 67 and 68: countries and the United States). A
Page 69 and 70: • Global Integrity, a nonprofit o
Page 71 and 72: are not required to apply for addit
Page 73 and 74: Table 3. FDI by Country of Origin i
Page 75 and 76: East Kalimantan 39 405 160 13 80 1,
Page 77 and 78: international trade, and improve In
Page 79 and 80:
BANK OF AMERICA Jakarta Stock Excha
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-- The International Development As
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Project financing is crucial in suc
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Travel Advisory Return to top Trave
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Singapore or their home countries f
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Monday, October 8 Columbus Day (U.S
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317 Madison Avenue, Suite 1619 New
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U.S. Trade and Development Agency (
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Ministry of Trade Jl. M.I. Ridwan R
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U.S. Commercial Service Mr. David G
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U.S. Consular Agency, Denpasar, Bal
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Website: www.indonesiahouston.net C
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Contact: Mr. James Castle, Principa
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Expertise: Corporate market researc
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Plaza Mutiara, 7th Floor Jl. Lingka
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development, media and broadcasting
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Return to table of contents Chapter
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