bauma 2013 - Indonesia Day
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Welcome
Best practice example
Philipp Parnitzke, HAVER NIAGARA GmbH
Area Sales Manager - Middle East and Southeast Asia
April 17th 2013
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Doing Business in Indonesia
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DOING BUSINESS IN INDONESIA
 Since 2010 active in the Indonesian mining market
 Participating in trade fairs as Coaltrans, Conbuild, and
Mining-Indonesia
 Working with local agents (case by case)
 Global operating Key-Accounts
 Networking is very important
 Working with Associations is recommended
 Contacts have to be addressed/involved continuously
 strong competition from Australia, Japan, USA, Canada
and China etc.
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DOING BUSINESS IN INDONESIA
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DOING BUSINESS IN INDONESIA
Experiences while travelling in Indonesia
 The archipelago consists of 17,500 islands
 Many airlines/flights are available, but often delayed
 Travelling time from Jakarta to Mine-site up to one day
 Most Head-Offices of Mining Companies are in Jakarta
 Meeting arrangements often on short notice / need
reconfirmation
 Visa for Immigration is needed
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DOING BUSINESS IN INDONESIA
Visa on arrival
 appliable after
landing
 costs: $ US 25
 length of stay:
max. 30 days
 single entry only
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DOING BUSINESS IN INDONESIA
Business Visa
 application through
Indonesian Embassy,
before travelling
 costs: $ US 100
 valid: 1 year
 length of stay:
max. 30 days
 multiple entry
 sponsor needed
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DOING BUSINESS IN INDONESIA
Service by
Contact details:
EKONID
German-Indonesian Chamber of Industry & Commerce
Deutsch-Indonesische Industrie- & Handelskammer
Perkumpulan Ekonomi Indonesia-Jerman
Jl. H. Agus Salim No. 115, Jakarta 10310
P.O. Box 3151, Jakarta 10031, Indonesia
Tel. : +62-21-3154685
Fax : +62-21-3157088, 3155276
E-mail : info(at)ekonid.or.id
Website : www.ekonid.com
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Opportunities & Challenges
of the Mining-Business
in Indonesia
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OPPORTUNITIES
 Indonesia is the world‘s 6th largest Mining Market!
 Mining Law 04/2009
 Beginning 2014 no unprocessed material (raw-material)
will be allowed to be exported. The material needs to be
processed in refineries and smelters. Nickel and Copper
has to be > 99 %.
 IUP-Holders (mining licence) have to submit a detailed
plan how to comply with in-house ores-processing from
2014 ongoing
 No local mining equipment industry existing.
 Market clearance, illegal and small mines will dissapear
 Politically stable
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OPPORTUNITIES
 Indonesia has large resources of raw-materials such as:
Thermal Coal - World‘s No one coal producer. 320 Mio/tons in 2011
Producer: Adaro Energy, PT Kaltim Prima Coal, PT Kideco, Antam etc.
Nickel-Ore (Laterite) - World‘s No. two producer in 2011 (33 Mio/tons)
Producer: PT Vale Indonesia, PT Antam, PT Freeport Indonesia
Tin - Worlds larges Tin-Exporter, 2nd largest Producer behind China
Producer: PT Koba Tin, Timah Tbk
Copper-Ore – Production in 2011 1.2 Mio/tons
Producer: PT Freeport Indonesia, PT Newmont Nusa Tengara, Gresik
Bauxite - Production 40 Mio/tons in 2011
Producer: PT Antam, PT Freeport Indonesia
Iron-Sand
Producer: PT Freeport, PT Padmanaba Putra Mandiri
Primary-Gold
Producer: PT Antam, Avocet Bolaang Mongondow- PT Freeport
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CHALLENGES
 Indonesia is the 6th largest Mining Market but only
ranked 46th in „investment climate“.
 Nearly 10,000 IUP (mining permit holders) holders and
some illegals.
 Market is dominated by 15 Companies doing more than
85 % of the business
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CHALLENGES
 Smaller mines are not professional operated, try to get
know-how only and buying cheap equipment later.
 Foreign investors provide equipment pocketing the mining
outcome and commit the Miners who lose their commercial
independence.
 The still not finally defined Mining Law makes investments
for mining operations without refining-, smelting and
processing plants riskful.
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SUMMARY
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SUMMARY
 Due to the mining law 04/2009 comprehensive new investments
have to be done. New demand on equipment is the logical
consequence.
 Indonesia has the potential to be one of the TOP 5 mining
countries, if its position in the investment climate comes higher
ranked.
 In South East Asia, Indonesia remains the top location for new
mining projects, followed by the Philippines and Vietnam.
A large number of these are greenfield and brownfield
exploration projects for coal and copper-gold prospects.
 McKinsey predicts Indonesia to be 7th largest economy
in 2030!!!
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TERIMA KASIH
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TEXT
HAVER NIAGARA GmbH
Robert-Bosch-Str. 6
48153 Münster
Germany
www.havertyler.com
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