Economic Policy Package. Macro Economy Improvement

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Samantha Morrison
5 years ago
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1 10 November 2016

2 Condition Complicated procedure in obtaining investment licenses Tighter competition Increase in labor cost Economic Policy Package Macro Economy Improvement Benefits Enhance easiness of doing business in Indonesia Simplification in obtaining investment license Increase business certainty Operating efficiency Toll Road Land Acquisition Jombang - Mojokerto Bonded Logistic Centre East Kalimantan

3 Retail Business Manufacturing Agribusiness & Mining Infrastructure Property Digitalization Large Population (255 mio people) Potential sector: Automotive, Consumer Goods and Food & Beverage Domestic & Export Production Base Rich natural resources (oil, gas and minerals) Diverse forest and marine resources Potential renewable energy resources (geothermal, water, wind) Private sector involvement in Government s infrastructure project Potential sector: Toll road, Port, Airport and Power Plant Indonesia as a developing country High needs of commercial building and housing Information technology rapid growth E-Business and Digital services Establishment of Astra Life to cater life insurance needs Launch of LCGC 7 seater (Toyota Calya and Daihatsu Sigra) Export to Asian and Middle-East Countries Gold mining (Sumbawa Jutaraya) Going downstream : CPO refinery (Tanjung Sarana Lestari) Toll road (226.8 km) Development of Coal-fired Tanjung Jati power plant 2 x 1,000 MW Commercial office building (Menara Astra) Residential Property (Anandamaya apartment) OtoCare Anavigo OfisKita Axiqoe Residential development in East Jakarta with Modernland

4 2, 000 1, 800 1, 600 1, 400 1, 200 1, W Wholesale Market ( K units) and Astra Market Share 2W Wholesale Market and Honda Market Share Total 4W Market ('000 units) Astra m/s Total 2W Market Honda m/s 2,000 1,900 1,800 1,700 1,600 1,500 1,400 1,300 1,200 1,100 1, % 53% 51% 50% 1,208 1,013 1,080 1,100 60% 30% 0% 14,000 12,000 10,000 8,000 6,000 4,000 2,000-73% 73% 69% 64% 7,867 6,480 6,000 6,150 70% 60% 50% 40% 30% 20% 10% 0% AAL CPO Production & Sales CPO Production - K tons CPO Sales - K tons Heavy Equipment Market and Komatsu Market Share HE Market ('K units) Komatsu Share PAMA Mining Contracting Coal Production (mio tons)* OB Removal (mio bcm) 1,744 1,737 1,375 1,042 1,550 1,700 1,021 1,100 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 8,867 40% 36% 34% 5,912 6,400 7,200 35% 50% % % % % % 0 0

5 Synchronization of policy implementation in central and regional government Public sector for private Prioritize for domestic players Export incentives and protection Political and social stability

Summary of Indonesia Economic Stimulus Package I. Improving national industry competitiveness through deregulation, enhance law enforcement and business certainty II.

7 Summary of Indonesia Economic Stimulus Package I. Improving national industry competitiveness through deregulation, enhance law enforcement and business certainty II. Speed up investment licensing for industrial estates, interest rate tax cuts for exporters, and relaxation import taxes on capital goods in industrial estates and aviation III. Energy prices cut IV. Social security and people s welfare (fixed formula to determine increases in labor wages, soft micro loans for export-oriented of Small Medium Enterprise / SME) V. Tax reduction for asset revaluation and elimination of double taxation on Real Estate Investment Trust/ REIT ) VI. Specific Economic Zone (SEZ) in 8 regions VII. Boost national labor-intensive industry: waive income tax for workers in the nation s labor-intensive industries; free leasehold certificates for street vendors VIII. One map policy for land utilization, incentives for the development of oil refineries by the private sector and zero percent import duties for 21 categories of airplane spare parts IX. Building infrastructure for electricity and logistics X. Boosting FDI (Foreign Direct Investment) through the draft of revised negative investment list; as well as the protection of SME s XI. Export oriented credit, tax cut for Real Estate Investment Trust (REIT), dwelling time reduction and roadmap for the pharmaceutical industry XII. Enhance the ease of doing business in Indonesia by cutting procedures, permits and costs XIII. provide affordable housing for low-income people with simplified procedures

PT United Tractors Tbk

PT United Tractors Tbk Investor Bulletin, Fourth Quarter 2015 UT Recorded Consolidated Net Revenue of Rp 49.3 Trillion Operational: Y.o.y Komatsu sales volume fell 40%, coal production declined 4% and