6th Astana Economic Forum
22 – 24 May 2013
Indonesia-Kazakhstan:
Economic and Trade
Cooperation
Dr.Rizal-Affandi Lukman
Deputy Minister for International Economic Cooperation
Coordinating Ministry for Economic Affairs, Indonesia
Presentation Guidelines
 Overview of Indonesian Economy
 Summary of Indonesian Development: “Remarkable Indonesia”
 Indonesia – Kazakhstan Bilateral Cooperation
Comparative Basic Data
Countries
Land Size
(sq km)
Popu
lation
(milli
on)
Exports
(as of
2012
est.)-in
US$
Imports
(as of
2012
est.)-in
US$
Size of
Economy
as of 2012
(millions
of US$)
GDP/C
apita
as of
2012
(US$)
Public
Debt as
of 2012
(% of
GDP)
GDP
Growt
h as of
2012
(%)
Inflat
ion
as of
2012
(%)
Labor
Force
Indonesia
1,904,569
245
$188.7
billion
$179
billion
879 mil
1.2 bil
(PPP)
3,495
5,000
(PPP)
24.8
6
4.5
118
million
Brazil
8,514,877
201
$242
billion
$238.8
billion
2,395,968
12,594
43.3
1.3
5.5
107
million
Kazakhstan
2,724,900
17,8
$88.61
billion
$42.82
billion
196,419
11,357
12
5
5.2
8.54
million
South Africa
1,219,090
49
$101.2
billion
$106.8
billion
384,315
8,070
43.3
2.6
5.2
17.89
million
Source: various
Sound Economy: Maintaining the pace of growth.
Indonesia - Stable and Growing Economy
GDP growth rates (%)
Real GDP per capita (1996=100)
GDP growth rates
(%)
Indonesia
Korea
Malaysia
Thailand
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1992
-15
1996
2010
2008
2006
2004
2002
2000
1998
1996
1994
-10
Source: CEIC
-5
1992
0
1995
5
1994
10
180
160
140
120
100
80
60
40
20
0
1993
15
Real GDP Per Capita (1996 = 100)
Philippines
CEIC
Public Debt and Budget Source:
Deficit
(% of GDP)
120
Public debt and Budget
Deficit (% of GDP)
10
9
100
8
7
80
6
60
Inflation (2012)
Indonesian economy
grew by 6.5% in 2011,
and 6.2% in 2012. It is currently the second
fastest growing economy among G20
members.
5
3
2
20
1
0
Source:
inflation.eu
4
40
Indonesia is fiscally and monetarily more
sound compared to some European countries
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Public Debt (% of GDP) (LHS)
Budget Deficit (% of GDP) (RHS)
The Investment Coordinating Board of the Republic of Indonesia
Source: IMF
Source: CEIC
Investment and consumption drive GDP growth
Growing Middle Class
Private Consumption remains robust
Source: BKPM
Investment performance:
Strong Result in 2012
Government Target 2009-2014
Mobilization of Financial
Resources:
• Growth = 7.6%
• Incremental CapitalOutput Ratio = 5.2
• Investment/GDP = 40%
• Saving = Investment
• Current Saving/GDP =
33%
• Need Foreign Investment
Source: BKPM
Summary of Indonesian Development:
“Remarkable Indonesia”
 Stable and growing economy
 Growth is more widespread
 Role of natural resources
 Rising importance of domestic economy
 Demographic “dividend”
Indonesia – Kazakhstan
Economic and Trade Cooperation
 Indonesia recognized the sovereignty of Kazakhstan in December
1991, established formal diplomatic relations on 2 June 1993 and
opened its Embassy in Astana on December 2010.
 Diplomatic and economic relation has a long established history with
reciprocal presidential visits in 1995.
 In the same year, the Agreement on Economic and Technical
Cooperation, Banking Agreement between Bank Indonesia and Central
Bank of Kazakhstan and the Memorandum of Understanding on Health
and Medicines Cooperation were signed.
 President Nursultan Nazarbayev visited Indonesia in April 2012 and
agreed with Indonesia President Susilo Bambang Yudhoyono to
establish Indonesia-Kazakhstan Joint Economic Commission and set a
bilateral trade target of USD100 million in five years.
Indonesia – Kazakhstan
Economic and Trade Cooperation (cont’d)
 In May 2012, Coordinating Minister for Economic Affairs visited
Astana to establish the Joint Economic Commission and set up five
(5) Working Groups to intensify cooperation –On investment and
trade, Industry and Agriculture, Oil, Gas and Energy, Health and
Pharmaceutical Industry and Infrastructure and Logistics. The first
Joint Commission Meeting took place in Indonesia in November 2012.
Trade Between Indonesia and Kazakhstan
Trade Between Indonesia and Kazakhstan
 Market share of Indonesian products only made 0,1% of the total trade of
Kazakhstan. Meanwhile, Indonesia’s export share to Kazakhstan reached
the value of 0,13%. Indonesia’s export commodities to Kazakhstan
include, among others, palm oil and its fractions, tea, parts of cassette
player, tape recorder or image reproduction device, primary cell and
primary battery, wood, tobacco, cocoa oil, household appliances and its
spare parts, processed food, and automatic data processor.
 Trade volume between the two countries is relatively small. There are
opportunities to explore economic potentials of both countries following
through the existing bilateral agreements.
 Both countries need to work more intensively in opening up
communication, transportation and information constraints and improve
interaction among the economic actors of both countries.
 The setting up of Indonesia-Kazakhstan Business Council is a step in the
right direction.
Indonesia – Kazakhstan Bilateral Cooperation
During the 5th Astana Economic Forum and RI-Kazakhstan Business Forum, 7
MoUs were signed::
 Oil and gas cooperation between PT. Pertamina and KazMunayGas;
 Cooperation in the pharmaceutical industry and medicine between the Indo
Farma with Interek Group;
 Instant noodle plant between PT. Indo Food Success Makmur with Interek
Grop;
 Direct purchase of grain and the formation of joint venture between PT. Nidas
and Bereket Group;
 Traditional therapy center development between PT Bali Spa. Locus with
Interek Group;
 Cooperation in the post sphere between the PT. Heading to KazPost; and
 Cooperation in the logistic field between Indonesia-South Asia and Central
Asia Logistics Association with National Logistic of Kazakhstan.
Thank You