To confirm Indonesia as an Investment opportunity it is a no brainer

Facts:

• Indonesia is a near Trillion $ economy.
• Indonesia is South East Asia's largest economy.
• Pesident Widodo has gone on record at the CEO conference stating all of Indonesia's infra-structure needs.  Thus throwing Indonesia open to all.
• Indonesia has over the last 20 years relied on resources to sustain their economy.

As resources have declined in demand and therefore their value. Indonesia has to now re-orientate itself towards Infra-structure and manufacturing.

Finance Minister Bambang Brodjonegorohas stated that they are looking for a manufacturing base and have removed many bureaucratic requirements in order to develop such a base.  However, be aware; Indonesia have recently levied many import taxes onto finished products as well as high duties on wines, spirits imported cars etc.  In some ways this has been seen as to have protectionist tendencies. However, this has been defined as a further incentive to import raw or part built materials into Indonesia for final assembly. Perhaps such a move is a further indication as to their serious intent to maximize their available labour force. 

Incentives:

• Tax holidays enjoyed by a few sectors have been raised from 10 years to 20 years and now open to many more areas of manufacturing.
• Special economic zones will be established (detail to be defined) in order to enjoy many other benefits.

 Proposed:

•  2016 Corporation tax will be reduced to 18% - 20%.  Currently levied at 25%.
• Deregulation in the financial sectors

You have to bear in mind Indonesia is a country with some 250M inhabitants. Most of which survive on less than a $ a day, perhaps much less. There are considered to be 40M middle class. This is expected to grow to 110M in 10 years.

Indonesia lags far behind their neighbours in their development. Which is again another indication as to why Indonesia is a location to grasp, it offers by far one of the best dynamics for sustainable growth.

When we talk about infra-structure you should bear in mind that Indonesia is a vast archipelago, an archipelago if it was lift off the map and placed on Europe it would stretch from London to Tehran.  This alone gives rise to a vast need for roads, ports, railway etc. 

This is just a small taste as to the opportunities that are real, and they are here and now.  Of course Statura would very much like to provide services to any organization wishing to dip a toe into Indonesia.

Facts:

• Indonesia is a near Trillion $ economy.
• Indonesia is South East Asia's largest economy.
• Pesident Widodo has gone on record at the CEO conference stating all of Indonesia's infra-structure needs.  Thus throwing Indonesia open to all.
• Indonesia has over the last 20 years relied on resources to sustain their economy.

As resources have declined in demand and therefore their value. Indonesia has to now re-orientate itself towards Infra-structure and manufacturing.

Finance Minister Bambang Brodjonegorohas stated that they are looking for a manufacturing base and have removed many bureaucratic requirements in order to develop such a base.  However, be aware; Indonesia have recently levied many import taxes onto finished products as well as high duties on wines, spirits imported cars etc.  In some ways this has been seen as to have protectionist tendencies. However, this has been defined as a further incentive to import raw or part built materials into Indonesia for final assembly. Perhaps such a move is a further indication as to their serious intent to maximize their available labour force. 

Incentives:

• Tax holidays enjoyed by a few sectors have been raised from 10 years to 20 years and now open to many more areas of manufacturing.
• Special economic zones will be established (detail to be defined) in order to enjoy many other benefits.

 Proposed:

•  2016 Corporation tax will be reduced to 18% - 20%.  Currently levied at 25%.
• Deregulation in the financial sectors

You have to bear in mind Indonesia is a country with some 250M inhabitants. Most of which survive on less than a $ a day, perhaps much less. There are considered to be 40M middle class. This is expected to grow to 110M in 10 years.

Indonesia lags far behind their neighbours in their development. Which is again another indication as to why Indonesia is a location to grasp, it offers by far one of the best dynamics for sustainable growth.

When we talk about infra-structure you should bear in mind that Indonesia is a vast archipelago, an archipelago if it was lift off the map and placed on Europe it would stretch from London to Tehran.  This alone gives rise to a vast need for roads, ports, railway etc. 

This is just a small taste as to the opportunities that are real, and they are here and now.  Of course Statura would very much like to provide services to any organization wishing to dip a toe into Indonesia.

How To Make More! Huge Opportunity! 250M People To Join The Middle Classes

Wednesday, 30 September 2015

How To Make More! Huge Opportunity! 250M People To Join The Middle Classes

Mostly, I write balanced bullish articles about Indonesia, its beauty and its opportunity.  This article is no different.  I am also convinced that with 250M people it offers itself and the world a truly foreseeable, sustainable economic growth.  After all, Indonesia has a successful entrepreneur at its helm, a wealthy man in his own right.  He is portrayed as a man of the people and appears to have no truck with the old ways of corruption and graft.

However, all is not moving at the required speed so what's wrong? Particularly given Indonesia's past, their new desire to move forward and implement procedures;  they are at least giving us the sight of a level playing field. But, all is not as it seems.

• Indonesia wants retirees, they want them to buy land and villas and live here in peace and quiet. That continues to not be possible as the rules around land and property ownership are vague, i.e. Can you own? Can you lease? Is the lease's legal today and will they still be legal tomorrow?.

• Indonesia wants outside investment, so why not?  I would caution that regulation and consistency are still an issue; as and when this is resolved its clear that Investment will come.  After all, where better than a green field site with a country determined to build an Infrastructure, along with a vast labour force willing and able to work.

However, new roads, sea and rail links, bringing access to high population hubs are only part of the story. It is factories and manufacturing that will alleviate the unemployment. Unemployment which has occurred from the worldwide resources' downturn. The factories that will come are from China, Europe and the Americas.  Therefore, regulation needs clarity and consistency.

As an example and perhaps a role model.  Nearby countries have for a long time encouraged growth, encouraged foreign firms and incentivized investment. Malaysia provides superb infrastructure, ports, glitzy buildings and a relaxed regulatory environment.  In fact their policies are not only pro foreign investment they are remarkably consistent.  Consistencies are a staple for us in the West, in Indonesia they appear a luxury; this has to be addressed.

The success of Malaysia whilst it is good, it would pale into insignificance against a burgeoning Indonesia as and when this opportunity lifts off. Business forums complain of red tape, that regulation appears to be introduced whimsicaly. Regulations are then changed in a hasty manner. It is generally felt that the Indonesian government infer a take it or leave it attitude towards foreign investment. The result of which foreign investors are firmly sitting on their hands when it comes to Indonesia.

Indonesia has grounds to be proud, they have indeed made tremendous progress, you can easily see this as you look to the Jakarta skyline. They do have a sizeable domestic market and all things being equal, it is they that should benefit from it. But, other countries have also had sizeable markets, but, they have for a long time realized, enjoyed and benefited from outside assistance.



In 1997 Indonesia along with Asia experienced a currency and economic crisis.  It was only by chance, due to Indonesia's archipelago being rich in resources, that in 2004 a resources led recovery took hold. That recovery has now ended as the world economy and in particular China has slowed.

Therefore, the government is right in their ambitions to move the economy away from resource dependency and more towards manufacturing and consumerism.  But, Indonesia is losing the perception game and it must now support a more friendly approach to the global investment world, if it is to realize its dreams.

I now dream of the day that the people can realize their ability and perhaps their right to move towards the middle classes.  Participating as paid up, tax paying members of the Indonesian economy as well as the global community. Since there is not a more deserving and long-suffering race of people.

I have real faith that the Indonesians have chosen a good leader. As I believe he has the right initiatives in place; what we are seeing are just teething problems from an introverted government, transforming into that of an extrovert launching itself onto the International stage.

So as, I have said in the past it is the early bird etc..

More inspiration from the pages of statura.co.uk

Wednesday, 30 September 2015

How To Make More! Huge Opportunity! 250M People To Join The Middle Classes

Mostly, I write balanced bullish articles about Indonesia, its beauty and its opportunity.  This article is no different.  I am also convinced that with 250M people it offers itself and the world a truly foreseeable, sustainable economic growth.  After all, Indonesia has a successful entrepreneur at its helm, a wealthy man in his own right.  He is portrayed as a man of the people and appears to have no truck with the old ways of corruption and graft.

However, all is not moving at the required speed so what's wrong? Particularly given Indonesia's past, their new desire to move forward and implement procedures;  they are at least giving us the sight of a level playing field. But, all is not as it seems.

• Indonesia wants retirees, they want them to buy land and villas and live here in peace and quiet. That continues to not be possible as the rules around land and property ownership are vague, i.e. Can you own? Can you lease? Is the lease's legal today and will they still be legal tomorrow?.

• Indonesia wants outside investment, so why not?  I would caution that regulation and consistency are still an issue; as and when this is resolved its clear that Investment will come.  After all, where better than a green field site with a country determined to build an Infrastructure, along with a vast labour force willing and able to work.

However, new roads, sea and rail links, bringing access to high population hubs are only part of the story. It is factories and manufacturing that will alleviate the unemployment. Unemployment which has occurred from the worldwide resources' downturn. The factories that will come are from China, Europe and the Americas.  Therefore, regulation needs clarity and consistency.

As an example and perhaps a role model.  Nearby countries have for a long time encouraged growth, encouraged foreign firms and incentivized investment. Malaysia provides superb infrastructure, ports, glitzy buildings and a relaxed regulatory environment.  In fact their policies are not only pro foreign investment they are remarkably consistent.  Consistencies are a staple for us in the West, in Indonesia they appear a luxury; this has to be addressed.

The success of Malaysia whilst it is good, it would pale into insignificance against a burgeoning Indonesia as and when this opportunity lifts off. Business forums complain of red tape, that regulation appears to be introduced whimsicaly. Regulations are then changed in a hasty manner. It is generally felt that the Indonesian government infer a take it or leave it attitude towards foreign investment. The result of which foreign investors are firmly sitting on their hands when it comes to Indonesia.

Indonesia has grounds to be proud, they have indeed made tremendous progress, you can easily see this as you look to the Jakarta skyline. They do have a sizeable domestic market and all things being equal, it is they that should benefit from it. But, other countries have also had sizeable markets, but, they have for a long time realized, enjoyed and benefited from outside assistance.



In 1997 Indonesia along with Asia experienced a currency and economic crisis.  It was only by chance, due to Indonesia's archipelago being rich in resources, that in 2004 a resources led recovery took hold. That recovery has now ended as the world economy and in particular China has slowed.

Therefore, the government is right in their ambitions to move the economy away from resource dependency and more towards manufacturing and consumerism.  But, Indonesia is losing the perception game and it must now support a more friendly approach to the global investment world, if it is to realize its dreams.

I now dream of the day that the people can realize their ability and perhaps their right to move towards the middle classes.  Participating as paid up, tax paying members of the Indonesian economy as well as the global community. Since there is not a more deserving and long-suffering race of people.

I have real faith that the Indonesians have chosen a good leader. As I believe he has the right initiatives in place; what we are seeing are just teething problems from an introverted government, transforming into that of an extrovert launching itself onto the International stage.

So as, I have said in the past it is the early bird etc..

More inspiration from the pages of statura.co.uk

Indonesia the road to prosperity and rail and sea and air

The Investment Opportunities of the 21st Century

Indonesia a South East Asian nation of many picturesque Islands consisting of thousands of active volcanoes.  Home to many cultures, many languages as well as varying religious doctrines which are dominantly devout.

Borobudur

Indonesia is famous for beaches, sun, surf and vast jungles. Jungles of which are rich in themselves; sheltering Elephants, Tigers, Komodo Dragons etc..  Indonesia is steeped in traditions; mythology, legends, gods which grace us with their mysterious presence by wandering this vast archipelago. magic, Susuk (the most powerful charm needles in Indonesia), potions, healing powers, spiritual enlightenment, yoga, spas and sensual massage are freely practiced often in sumptuous surroundings.  

Java Indonesia' main island plays host to Indonesia's capital Jakarta, by all accounts a sprawling modern metropolis of rich with opportunity, activity as well as providing a breath taking journey of adventure.  Indonesia a nation that until 70 years ago was colonized by the early Dutch settlers.  Monuments, museums, statues and icons depicting their struggle for independence. 

Yet I romanticize this vast archipelago, which if placed on Europe would stretch from London to Tehran.  

• 250M people and growing, a burgeoning middle class which is vastly increasing, 
• 2006 6M households were deemed middle class, 
• 2015, 13M households
• By 2020 this is expected to reach 30M families.

Jakarta Skyline

Indonesia is today the growth story of the world, vast potential as this archipelago modernizes, bringing wealth, expansion, hope, prosperity through employment to the far flung reaches of this vast volcanic set of fiefdoms.

Tenders are out, projects are defined:

• Road expansions, new tolls, highways and municipal byways are defined, set out in ink by the planners of this nation.  
• Water is in focus, dams are defined, reservoirs mapped and waste will be efficiently managed.  
• Power plants are abound, designed to be environmentally friendly driven by HSD (High Speed Diesel), Marine fuels as well as LPgas.  Bali has recently introduced a new power plant design as specified above.  This Power station produces 200Megawatts of clean energy full filling the needs of a Paradise (Paradise being the Bali brand) on earth. 



New Power Station Bali

• Sea Ports, deeper, bigger, more mechanized, further linking this vast archipelago, bringing economies of scale (Today a bag of cement in Java costs $4 in Papua $12 approx).

Investors are encouraged to participate! This is not a public exercise more the expectation that the private sector will participate.  A sector that will assimilate with the once in a life time opportunities that are available in one location.  Participation is mandatory as we recognize the world is already saturated with such modern services.

Telecoms are strong, mobile networks utilize state of the art technology, 4G roll out has been defined. Braodband and Satellite Internet providers are in abundance which care for the Internet speed requirements.

Factories will flourish the middle classes will upgrade. Luxury brands will be adorned.  Brands long being the staple of success for an Asian to show their wealth.

Sea Ports in Jakarta

This country is undergoing a renaissance, it is blessed with an honest government which has emerged from a history of Cronyism, graft and self serving.   The government of Joko Widodo has embarked on ambitious project to weed out the archaic self serving elements.  The Governor of Jakarta  a man of equal stature to that of the President, a man who shares the same values and aspirations of Indonesia has indeed made significant inroads and successes curtail the historic poor governance.  Rivers are clean, Shanti towns are cleared municipal homes with modern facilities are provided for previous destitute residents.

Regulations have been relaxed, land acquisition laws have been drafted, submitted and passed through the government unhindered. 

The risks are of course there but where would we be without risks.  It is the entrepreneur that thrives in such an environment, grasping perhaps in this case the low hanging fruit as this nation emerges from what we would call the dark ages.

Early Adopters:

New Airport Toll Road Bali

China Railway Construction Corporation signed an agreement to invest in the 30-kilometer Sunda Strait Bridge project linking the Indonesian islands of Sumatra and Java. And last year, Japan’s J-Power consortium won the bidding to build a new power plant in Central Java, which would provide electricity for 8 million people by 2016. 

An eminent quote: 

"The progress in infrastructure development in the last two years has been much better than expected,” says Shobana Venkataraman, IFC Principal Investment Officer. “Indonesia’s economy has improved and its sovereign rating has been upgraded to investment grade, making infrastructure investments more attractive to investors and lenders."

More from the pages of Statura.co.uk 

The Investment Opportunities of the 21st Century

Indonesia a South East Asian nation of many picturesque Islands consisting of thousands of active volcanoes.  Home to many cultures, many languages as well as varying religious doctrines which are dominantly devout.

Borobudur

Indonesia is famous for beaches, sun, surf and vast jungles. Jungles of which are rich in themselves; sheltering Elephants, Tigers, Komodo Dragons etc..  Indonesia is steeped in traditions; mythology, legends, gods which grace us with their mysterious presence by wandering this vast archipelago. magic, Susuk (the most powerful charm needles in Indonesia), potions, healing powers, spiritual enlightenment, yoga, spas and sensual massage are freely practiced often in sumptuous surroundings.  

Java Indonesia' main island plays host to Indonesia's capital Jakarta, by all accounts a sprawling modern metropolis of rich with opportunity, activity as well as providing a breath taking journey of adventure.  Indonesia a nation that until 70 years ago was colonized by the early Dutch settlers.  Monuments, museums, statues and icons depicting their struggle for independence. 

Yet I romanticize this vast archipelago, which if placed on Europe would stretch from London to Tehran.  

• 250M people and growing, a burgeoning middle class which is vastly increasing, 
• 2006 6M households were deemed middle class, 
• 2015, 13M households
• By 2020 this is expected to reach 30M families.

Jakarta Skyline

Indonesia is today the growth story of the world, vast potential as this archipelago modernizes, bringing wealth, expansion, hope, prosperity through employment to the far flung reaches of this vast volcanic set of fiefdoms.

Tenders are out, projects are defined:

• Road expansions, new tolls, highways and municipal byways are defined, set out in ink by the planners of this nation.  
• Water is in focus, dams are defined, reservoirs mapped and waste will be efficiently managed.  
• Power plants are abound, designed to be environmentally friendly driven by HSD (High Speed Diesel), Marine fuels as well as LPgas.  Bali has recently introduced a new power plant design as specified above.  This Power station produces 200Megawatts of clean energy full filling the needs of a Paradise (Paradise being the Bali brand) on earth. 



New Power Station Bali

• Sea Ports, deeper, bigger, more mechanized, further linking this vast archipelago, bringing economies of scale (Today a bag of cement in Java costs $4 in Papua $12 approx).

Investors are encouraged to participate! This is not a public exercise more the expectation that the private sector will participate.  A sector that will assimilate with the once in a life time opportunities that are available in one location.  Participation is mandatory as we recognize the world is already saturated with such modern services.

Telecoms are strong, mobile networks utilize state of the art technology, 4G roll out has been defined. Braodband and Satellite Internet providers are in abundance which care for the Internet speed requirements.

Factories will flourish the middle classes will upgrade. Luxury brands will be adorned.  Brands long being the staple of success for an Asian to show their wealth.

Sea Ports in Jakarta

This country is undergoing a renaissance, it is blessed with an honest government which has emerged from a history of Cronyism, graft and self serving.   The government of Joko Widodo has embarked on ambitious project to weed out the archaic self serving elements.  The Governor of Jakarta  a man of equal stature to that of the President, a man who shares the same values and aspirations of Indonesia has indeed made significant inroads and successes curtail the historic poor governance.  Rivers are clean, Shanti towns are cleared municipal homes with modern facilities are provided for previous destitute residents.

Regulations have been relaxed, land acquisition laws have been drafted, submitted and passed through the government unhindered. 

The risks are of course there but where would we be without risks.  It is the entrepreneur that thrives in such an environment, grasping perhaps in this case the low hanging fruit as this nation emerges from what we would call the dark ages.

Early Adopters:

New Airport Toll Road Bali

China Railway Construction Corporation signed an agreement to invest in the 30-kilometer Sunda Strait Bridge project linking the Indonesian islands of Sumatra and Java. And last year, Japan’s J-Power consortium won the bidding to build a new power plant in Central Java, which would provide electricity for 8 million people by 2016. 

An eminent quote: 

"The progress in infrastructure development in the last two years has been much better than expected,” says Shobana Venkataraman, IFC Principal Investment Officer. “Indonesia’s economy has improved and its sovereign rating has been upgraded to investment grade, making infrastructure investments more attractive to investors and lenders."

More from the pages of Statura.co.uk