1 Strengthening BKPM’s FDI Attraction Strategy Results of BKPM Workshop and Key Discussions Points Workshop facilitated by: Data ¦ Technology ¦ Consulting TPSA program is executed by www.wavteq.com | www.incentivesmonitor.com | www.fdiprofessionals.com | www.fdiaccounting.com company/wavteq @wavteq www.wavteq.com 1
W A V T E Q 2 OPENING REMARKS “About WAVTEQ” www.wavteq.com
WAVTEQ company overview 3 ABOUT US o WAVTEQ was founded in 2010 and has built the largest FDI consulting team worldwide with the most extensive global presence o WAVTEQ has established operations in the major source countries and is co-owner of International Investment Services GmbH (Europe) and Research Consultants International Inc. (North America). Over 75 FDI consultants with lead generation teams in Austria, Canada, China, Germany, Hong Kong, India, Ireland, Japan, Korea, Spain, UK & USA We have helped over 1,000 companies establish over $50 billion of greenfield investments covering all industries and types of project, including manufacturing, logistics, HQs, and R&D WAVTEQ develops the world’s leading corporate WAVTEQ is the technology and consulting partner of expansion intelligence and corporate location fDi Intelligence, Financial Times , with the USA, Canada, UK, benchmarking databases and CRM systems 100% Asia, and Middle East Franchises designed for EDOs/IPAs www.wavteq.com
WAVTEQ – the leading developer of FDI products & tools 4 ABOUT US World’s leading business expansion database, developed by WAVTEQ for the Financial Times. Tracks real time companies announcing, opening & considering greenfield FDI worldwide – an indispensable tool for www.fdimarkets.com attracting investment. Tracked over $12 trillion of greenfield projects Unique global database which has tracked over $1.4 trillion / 6 million+ jobs of incentivised greenfield projects since 2010. Includes advanced analysis tools to compare incentives worldwide, an Incentives Calculator , incentives policy information, company database, and decision maker www.incentivesmonitor.com contacts in investing companies. Includes investment and incentives Mapping tool . fdi365 is a customized global online business intelligence platform. Has tracked since www.fdi365.com 2017, 2,700 business expansion leads. A Research Consultants International FDI Inc. Unique global database of 25,000+ location advisors and influencers to get your location on the Investor’s Map and build business networks globally. Use the Client Access feature to provides investors with access to FDI Professionals to make their project happen in your location. Includes an www.fdiprofessionals.com interactive GIS Advisors Map which can plug-in to your EDO/IPA website. CRM compatible World’s first CRM systems designed and created specifically for IPAs and EDOs. Very easy -to-use, cloud-based and with a very flexible structure designed to minimize customization costs. Ready to use for lead generation, investment facilitation and aftercare/BRE Unique database tracking cost & quality competitiveness of nearly 1,000 countries, states & cities in 65+ sectors with nearly 1,000 data points on each location. Includes operating cost and SWOT models. Excellent for quickly understanding a location’s competitive position and for developing www.fdibenchmark.com value propositions. Developed by WAVTEQ for the Financial Times Unique software & data tool to track & measure inward investment successes, qualify projects, measure the involvement of your EDO/IPA and the quality of FDI attracted. Measures organizational performance and return on investment of IPAs/EDOs. Includes an Interactive GIS Investment Map . www.fdiaccounting.com Can be provided as an online location promotion tool through an API to a dedicated website to present FDI Accounting data to the world (e.g. see www.dubaifdimonitor.com ). Licensed by Select USA, Dubai FD I and other EDOs and IPAs . www.wavteq.com
Thought leadership in how to attract FDI 5 ABOUT US ₊ WAVTEQ's team is at the forefront of knowledge on FDI, with over 100 FDI publications and training guides . WAVTEQ provides a free publication portal for FDI studies subscribed to by over 1,000 EDOs and IPAs. Our most recent publications are shown below ₊ These studies used extensively by IPAs and international organizations to inform their investment promotion strategies and training needs Download our training guidelines and latest studies www.wavteq.com/publications www.wavteq.com
Guidelines for Investor Enquiry Handling 6 ABOUT US www.wavteq.com
National and international organizations 7 ABOUT US - Recent FDI consulting clients (2013 - 2018) www.wavteq.com
8 SESSION 1: WHAT IS AN INVESTMENT PROMOTION STRATEGY (IPS)? www.wavteq.com
Investment promotion strategy – 10 key components 9 WHAT IS AN INVESTMENT PROMOTION STRATEGY (IPS)? 1. Vision and mission statement 2. Strategic objectives 3. Benchmarking and image building 4. Sector and market strategies 5. Marketing and promotion 6. Product development: activities to improve the local investment climate 7. Budgets and resource allocation 8. Organization of resources: organizational diagram showing each department with functions and staff members and their responsibilities 9. Key performance indicators (KPI’s) for monitoring and evaluation 10.Action plan: short-term, medium-term and long-term actions required for each target and goal, outlining investment promotion tools and budgets www.wavteq.com
Group brainstorm – BKPM’s FDI strategy 10 WHAT IS AN INVESTMENT PROMOTION STRATEGY (IPS)? 1. Why attract FDI / objectives in attracting FDI? o Capital inflows, job creation, tax income, technology transfer o Bigger picture: how to maximize the benefits? o GDP growth, exports o Regional development 2. What type of FDI is BPKM is trying to attract? o Greenfield, Brownfield, M&A (increasing mode so we need strategy) 3. How much FDI does BKPM want to attract? o 765 trillion – FDI and DDI- 60% FDI realization – commitment figures approx. 3x higher o (2017 $30 billion) www.wavteq.com
Economic development benefits by type of FDI 11 WHAT IS AN INVESTMENT PROMOTION STRATEGY (IPS)? The type of FDI to target depends on the desired benefits Fixed Access to Type of Job FX Long term capital Technology export FDI creation earnings finance formation markets Greenfield High High High High High High FDI M&A Low Low Low High High Medium NFI/NEM Medium Medium High High Low Low Source: WAVTEQ o The type of FDI to target also depends on: + The sectors in the economy (e.g. R&D and tech sectors are driven more M&A and NFI/NEM types of FDI) + The existence of local firms both suitable for, and which have a clear desire for, engaging in M&A and/or NFI/NEM transactions with foreign investors + The capability of the IPA to promote and facilitate non-Greenfield types of FDI www.wavteq.com
IPA performance – example targets to monitor 12 KEY PERFORMANCE INDICATORS It is expected that IPAs will increasingly target FDI to achieve the UN Sustainable Development Goals (SDGs) relevant for their location Example key performance indicators for an IPA Source: ESCAP (2017) “The quality of inward FDI is more important than its quantity. FDI quality cannot be assessed simply by looking at aggregate FDI statistics” Columbia FDI Perspectives, Perspectives on topical foreign direct investment issues, No. 184 (October 10, 2016) 12 www.wavteq.com
13 SESSION 2: WHAT SECTORS SHOULD BKPM TARGET FOR FDI? www.wavteq.com
Framework for identifying target sectors 14 WHAT SECTORS SHOULD BKPM TARGET FOR FDI? WAVTEQ Three Force Model of target sector identification www.wavteq.com/publications 2. Competitive position 1. Economic 3. Market development demand objectives TARGET SECTORS www.wavteq.com
Sectors where Indonesia has a RCA>1 for FDI projects (2014-March 2018) 15 WHAT SECTORS SHOULD BKPM TARGET FOR FDI? Indonesia has a RCA mainly in low-technology and a few medium tech sectors – not in high tech sectors Beverages 2.71 Transportation 0.94 Coal, Oil and Natural Gas 2.29 Plastics 0.91 Hotels & Tourism 2.24 Indust. Mach, Equip & Tools 0.88 Ceramics & Glass 2.12 Pharmaceuticals 0.87 Metals 1.82 Electronic Components 0.83 Warehousing & Storage 1.72 Rubber 0.82 Wood Products 1.56 Building & Construction Mater 1.52 Software & IT services 0.81 Food & Tobacco 1.40 Leisure & Entertainment 0.81 Consumer Products 1.38 Aerospace 0.70 Consumer Electronics 1.31 Business Services 0.64 Chemicals 1.30 Financial Services 0.58 Automotive Components 1.29 Textiles 0.55 Renewable energy 1.28 Healthcare 1.23 Medical Devices 0.43 Non-Auto Transport OEM 1.21 Biotechnology 0.41 Automotive OEM 1.21 Semiconductors 0.25 Minerals 1.13 Paper, Printing & Packaging 0.23 Real Estate 1.04 Engines & Turbines 0.00 Space & Defence 1.02 Business Machines & Equipmen 1.00 Communications 1.00 www.wavteq.com Source: WAVTEQ based on fDi Markets data
Recommend
More recommend
