INDONESIA-

KAZAKHSTAN
RELATION

Kadin Indonesia - Business Service Desk 1

 Indonesia Overview
Total Area Land GDP GROWTH
1.9 million km 2 1.8 million km 2 6
5.03 5.07 5.17 5.03
4 4.08
Water Coastline
93 thousand km 2 54,716 km 2

%
0
2016 2017 2018 2019 2020 2021
-2 -2.07

270 Million -4

(BPS, 2020) INFLATION

• ± 300 ethnic 4
groups 3.61
• ± 700 languages 3 3.02 3.13
2.7
51% 49% 5,100 km ; >17,000 islands; 3 time zones 2

%
1.68 1.56
1
Demographic Bonus
Age Group
0
90-94 2016 2017 2018 2019 2020 2021
80-84
70-74
34 70% 16th 500 144.7
60-64 Trade Balance
50-54
40-44 Provinces Working Age Rank of Global USD Billion USD Billion of 40 35.33
30-34 Population Economy - Market Foreign Exchange 30 21.7

in billion USD
20-24 1.119 trillion USD Reserve 20
9.53 11.84
10-14 (2019) 10
0-4
0
15 13 10 8 5 3 0 3 5 8 10 13
-10 2016 2017 2018 2019 2020 2021
Population (in Million) -8.69 -3.59
-20
Male Female Kadin Indonesia - Business Service Desk
Source : BPS, CIA Factbook
The Year of Recovery
2022 becomes the start point to accelerate Indonesia’s economic recovery. Moreover, IMF has lowered its prediction for Indonesia's
economic growth to 5.6 percent as the country's health situation improves, allowing consumer demand and investor confidence to return.

Impressive Trade Balance Growth

Indonesia Economic Growth (y-o-y) 2016-2021
8 7.07
250,000
6
200,000
4

In Million USD
5.06 5.05 5.01 4.96 5.02 150,000
2 2.97 3.51
100,000
%

0 50,000
0.74
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
-2 0
2019 2020 2021
-2.19 2016 2017 2018 2019 2020 2021
-4 -50,000
-3.49
-6 Export Import Trade Balance
-5.32

In 2021, the Indonesian economy made a remarkable The number of people who received all doses Indonesia's trade balance was in surplus
recovery, and the country officially exited the recession prescribed by the initial vaccination protocol has for the entire year of 2021, totaling USD
zone. The economy rebounded spectacularly, with a reached 57.47% of the total population as of 30 35.34 billion. The surplus value is the
year-over-year growth rate of 4.08 percent, which was March 2022 highest it has been in 15 years.
more than predicted. Moreover,

Kadin Indonesia - Business Service Desk

 Indonesia Investment Overview
Foreign Direct Investment
Realization 2021

BASED ON SECTOR BASED ON LOCATION BASED ON COUNTRY OF ORIGIN

Metal Industry not Banten Japan
Machinery & USD 2.18 USD 2.2 billion
Other Electronic Industry billion United States of
USD 11.8 USD 6.9 billion America
billion (22.4%) USD 2.5 billion
Central
(23.7%)
Sulawesi Singapore
USD 2.71 West Java USD 9.4 billion
billion USD 5.21 billion
Mining
Food Infdustry USD 3.8 billion China
USD 2.3 billion (12.3%) USD3.2 billion
(7.5%)
Transport, Storage &
Communication
Electricity, Gas North Maluku
USD 3.18 billion
& Water Supply USD 2.81 billion Jakarta
(10.2%) Hong Kong
USD 2.9 billion USD3.33 billion
USD 4.6 billion
(9.5%)

Kadin Indonesia - Business Service Desk 4

Source: Ministry of Investment/BKPM
 Investment Sector Priorities
Export-oriented Industry In the continuous effort to boost
Indonesia’s economic growth, President
Joko Widodo has stated that there are
three economic strategies:

Green Economy

Pharmaceutical and
Automotive Electronic
Medical Devices Digitalization

Renewable Energy Mining Infrastructure Downstream Industry

Kadin Indonesia - Business Service Desk 5

Source: Ministry of Investment/BKPM
 Investment Recovery Strategy

01 Execute Pending or Stalled Investment Projects

02 Design The Regional Investment Potential Map

03 Facilitation Of Foreign Investment Relocation To Indonesia

04 Deregulation And License Integration

05 Implement Debottlenecking and After Care for The

Investments by Performing Mentorship for The Investors

Kadin Indonesia - Business Service Desk 6

Source: Ministry of Investment/BKPM
Why Indonesia?
Strong Reform Commitment + Omnibus Law

The Omnibus Law is an innovative regulation with its principal objective to change many laws into a
single legal instrument that hamper the investment climate for Indonesians by promoting more
significant investment growth. It amends, removes all the provisions and/or adds many requirements in
78 existing laws covering various sectors.

Benefit
Solve overlap problems
Efficient law Eliminate
among government
making process sectoral ego
institution

Kadin Indonesia - Business Service Desk 7

Impact of Implementing Risk Based
Approach (RBA) in Business Licensing
Indonesia's Regulation No. 5 of 2021 establishes a risk-based approach to company license issuing. Business activities will be
evaluated based on the magnitude of the risks they may pose (low risk, medium-low risk, medium-high risk, and high risk). The
lower the risk, the more concise the permit. Before issuing a business license, the government will conduct a risk analysis of each
application to establish the level of risk.

License Approach (previous regulation)

Business
=
Location Slow
Legal
Entities + Identifi-
cation + Business
Licensing + and
Commercial
&
Inefficient
License
Number

Risk Approach (Government Regulation Number 5 of 2021)

Business
Legal
Entities + Identifi-
cation = Fast &
Efficient
Number

Kadin Indonesia - Business Service Desk 8

 Indonesia Trade Overview 2021
Top 5 Indonesia’s Import Partner Top 5 Indonesia’s Export Partner
China China
28.0% 22.4%

Singapore United States of America

8.7% 13.2%

Japan Japan
7.5% 9.6%

United States of America Singapore

6.1% 7.6%

Malaysia India
4.9% 7.4%

Top Import Products Top Export Products

Machinery Electrical machinery Iron and Steel Mineral fuels, lubricants, and Animal and Iron and Steel
related materials vegetable oils

Plastics Organic Chemicals Vehicles other

Electrical machinery
Kadin Indonesia - Business Service Desk than railway 9
Source: ITC Trade Map
 Trade Overview
Indonesia and Kazakhstan
Value in Thousand USD Jan - Feb Change%
2019 2020 2021 2021 2022 2021-2022
Export 207,135.60 19,786.60 13,348.60 2,148.20 455.40 -78.80%
Import 141,804.80 130,082.10 277,896.50 1,057.70 81,967.90 7649.64%
Trade 65,330.80 -110,295.50 -264,547.90 1,090.50 -81,512.50 -7574.78%
Balance
Total Trade 348,940.40 149,868.70 291,245.10 3,205.90 82,423.30 2470.99%
300,000
250,000
200,000
150,000
100,000
IN THOUSAND USD

50,000 Export
0 Import
-50,000 2019 2020 2021
Trade Balance
-100,000
-150,000
-200,000
-250,000
-300,000

Kadin Indonesia - Business Service Desk 10

Source : Ministry of Trade, UN Comtrade
 Trade Overview
Indonesia and Kazakhstan

Top 5 Import Products from Kazakhstan in

Top 5 Export Products to Kazakhstan in 2021
2021
Animal or vegetable fats and
oils Iron or steel
21%
Nuclear reactors, boilers, 25%
machinery and mechanical Mineral fuels
appliances
40% Electrical machinery and
6% equipment and parts thereof Pharmaceutical products

Soap, organic surface-active

6% agents Raw hides and skins (other than
furskins) and leather
Preparations of vegetables
11% Articles of iron or steel
75%
16%
Others
Other

Kadin Indonesia - Business Service Desk 11

Source : Indonesia Statistic
 Investment Overview
Kazakhstan Investment in Indonesia
Year Value Projects Top FDI Location:
1. Jakarta
2. East Java
2019 < USD 1,000 3 3. Bali

2020 < USD 1,000 6 Top FDI Sector:

1. Trade and Repair
2. Other Services
2021 USD 5,200 2

Kazakhstan Investment in Indonesia

2019-2021
6,000.00 7

5,000.00 6
5
in Million USD

4,000.00

Projects
4
3,000.00
3
2,000.00
2
1,000.00 1
0.00 0
2019 2020 2021

Value Projects

Kadin Indonesia - Business Service Desk 12

Source : Ministry of Investment/BKPM
 Trade Overview
Top 10 Export Potential from Indonesia to Kazakhstan
The most prominent potential goods from
Indonesia to Kazakhstan, such as:
• Vegetable oils & fats,
• Machinery and electricity,
• Apparel & Footwear
• Metals,
• Food products.

Export Potential

Realized Potential (in %)

Kadin Indonesia - Business Service Desk 13

Source : ITC Export Potential
Trade Overview
Top 10 Export Potential from Kazakhstan to Indonesia
The most prominent potential goods from
Kazakhstan to Indonesia, such as:
• Ferrous metals,
• Metals,
• Wheat,
• Cereals,
• Chemical products.

Export Potential

Realized Potential (in %)

14
Source : ITC Export Potential Kadin Indonesia - Business Service Desk
Tips for Doing Business in Indonesia

Identify the
right local
partner

Engage the Understand

right the business
consultants culture in
Indonesia

Understand the
licensing system for Understand
investment and the business
business climate

Kadin Indonesia - Business Service Desk 15

KADIN Business Service Desk
KADIN Indonesia Business Service Desk (KADIN BSD) is the international business services
unit of KADIN Indonesia. KADIN BSD provides an independent view on new opportunities and
developments in Indonesia.

Specifically, it offers an experience, network, and service; overall working closely with the
Government of Indonesia and business stakeholders. Thus, we are the first contact point for
foreign companies and a conduit to the progressive Indonesian private sector.

Business Member Market Research Business Project &

Matching Outreach & Advisory Event Strategic Partnership

Kadin Indonesia - Business Service Desk 16

KADIN Indonesia
KADIN Indonesia stands for ‘Kamar Dagang dan Industri Indonesia‘, or the Indonesian Chamber of Commerce and
Industry. It is the umbrella organization of the Indonesian business chambers and associations. KADIN Indonesia is
focused on all matters relating to trade, industry and services, and is highly committed to tapping potentials and
synergies of the national economy, offering a strategic forum for Indonesian entrepreneurs. It is privately financed,
hence an independent spokesperson of private sector interests.

It is also the only nation-wide business organization mandated by Law No. 1/1987 to speak on behalf of private
business, maintaining a privileged liaison to Government Officials and covering all relevant sectors. 34 regional
Chambers (KADIN Daerah) and 514 district branches ensure national coverage. Because of this huge network, KADIN
Indonesia is the preferred partner for foreign companies initiating their engagement in Indonesia become a member of
KADIN Indonesia.

KADIN Indonesia - Business Service Desk 17

 Thank you!

Contact:
KADIN Indonesia
Business Service Desk
Menara KADIN Indonesia, 24th floor
Jalan H. R. Rasuna Said X-5 Kav. 2-3
Jakarta 12950, Indonesia
www.kadin.id
www.bsd-kadin.id
Email:
info@bsd-kadin.id

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