The Second Golden Era of Indonesia-Russia Relations H.E. Mr. M. Wahid Supriyadi Ambassador of the Republic of Indonesia to the Russian Federation and the Republic of Belarus St. Petersburg, 14 of May 2018
The First Golden Era RI–USSR
Indonesia-Russia’s strong relations through historical objects in Indonesia Gelora Bung Karno Stadium National Monument Monument of Hero/Tugu Tani Statue of Youth Persahabatan Hospital Krakatau Steel Manufacture
The Second Golden Era
President Jokowi visited Sochi on 18-20 May 2015 (20 th Anniversary of ASEAN-Russia Summit) • 5 MoU on Defence, Archives (National & Foreign Ministry), Cultural, and IUU Fishing were signed; • Commitment of USD 20 billion investments; • Commitment to increase bilateral relations.
Facts on Indonesia 1. Largest Moslem population 2. Largest Archipelagic State (17,508 islands) 3. The most diverse nation (over 600 ethnic groups with distinct languages) 4. Third biggest democracy 5. The world’s fourth largest country by population (258 million) 15 th biggest economy 6. The Biggest invisible thing on earth? It’s called Indonesia and it is waking up. (Elizabeth Pisani-The Guardian 21 Nov 2016) 6
F acts & F igures Russia and Indonesia Russia Indonesia 17,075,400 sq km (1 st ) 1,904,443 sq km (16 th ) 1. Total area 2. Population 146.5 million 261.9 million (2017 est) 3. GDP USD 1,28 trillion USD 1.004 trillion (2017) 4. GDP per capita USD 10,038 (2017) USD 3,858 (2017) 12 th 15 th 5. Size of economy 6. Economic growth 0.6% 5.07% 2 nd 14 th 7. Global Power Index 43 rd 36 th 8. Global Competitiveness Index 9. Global Peace Index 151 st 52 nd 10. Trading partner China, Germany, Netherlands China, US, Japan, Singapore Sources: the economist, world bank, Institute for Economics and Peace, Global Firepower, and Federal Customs Service
Bilateral Cooperation on TTI (trade, tourism & investment) • Trade volume Indonesia-Russia (by Federal Custom Service of Russia): - 2016 USD 2.61 billion - 2017 USD 3.27 billion (increase 25.28%) • Russian tourist to Indonesia (by Ministry of Tourism of Indonesia): - 2016 80.514 - 2017 110.529 (increased 37.28%) • Russian investment in Indonesia (by Indonesian Investment Coordinating Board): - 2016 USD 5.493 million (32 projects) - 2017 USD 7.4 million (49 projects)
Bilateral Trade Between Indonesia and Russian Federation 2017 Indonesia ’ s Export to Russian Federation (USD Million) No Product Code Product Label Value 1 8419 Machinery, plant or laboratory equipments 704,021 2 1511 Palm oil and its fractions, whether or not refined (excluding 551,476 chemically modified) 3 4001 139,751 Natural rubber, balata, gutta-percha, guayule, chicle and similar natural gums, in primary forms or in plates, sheets or strip 4 1513 97,222 Coconut "copra", palm kernel or babassu oil and fractions thereof, whether or not refined, but not chemically modified 5 0901 93,500 Coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee in any proportion 6 1804 Cocoa butter, fat and oil 75,702 7 6403 56,683 Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather 8 8504 47,551 Electrical transformers, static converters, e.g. rectifiers, and inductors; parts thereof 9 1516 Animal or vegetable fats and oils and their fractions, partly or wholly 43,154 hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared 10 6404 35,102 Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials (excluding toy footwear) Source: Trademap
Machinery
Bilateral Trade Between Indonesia and Russian Federation 2017 Russian Federation Export to Indonesia (USD million) No Product Code Product Label Value 1 1001 Wheat and meslin 200,973 2 3104 Mineral or chemical potassic fertilisers (excluding 148,427 those in tablets or similar forms, or in packages with a gross weight of <= 10 kg) 3 7207 Semi-finished products of iron or non-alloy steel 119,355 4 2701 57,118 Coal; briquettes, ovoids and similar solid fuels manufactured from coal 5 7601 Unwrought aluminium 47,448 6 2709 40,416 Petroleum oils and oils obtained from bituminous minerals, crude 7 8411 23,094 Turbojets, turbopropellers and other gas turbines 8 9999 Commodities not elsewhere specified 21,951 9 2524 21,122 Asbestos (excluding products made from asbestos) 10 4804 Uncoated kraft paper and paperboard 16,875 Source: Trademap
10 Best Export of Indonesia No Product Code Product Label Precent change in 2017 over 2016 1 94 Furniture; bedding, mattresses 185% 2 24 Tobacco and manufactured tobacco substitutes 164% 3 89 Ships, boats and floating structures 142% 4 80 Tin and articles thereof 133% 5 55 Man-made staple fibers 112% 6 29 Organic chemicals 73% 9 Coffee, tea, maté and spices 66% 7 8 39 Plastics and articles thereof 65% 9 95 Toys, games and sports requisites; parts and accessories 56% thereof 10 46 Rubber and articles thereof 46%
10 Best Export of Russia No Product Code Product Label Precent change in 2017 over 2016 1 84 Nuclear reactors, boilers, machinery and mechanical 1,290% appliances; parts thereof 2 72 Iron and steel 743% 10 Cereals 592% 3 4 76 Aluminum and articles thereof 107% 5 40 Rubber and articles thereof 80% 85 Electrical machinery and equipment and parts thereof 47% 6 7 48 Paper and paperboard; articles of paper pulp, of paper or 41% of paperboard 8 29 Organic chemicals 30% 9 31 Fertilizers 22% 10 27 Mineral fuels, mineral oils and products of their 17% distillation; bituminous substances; mineral waxes
Reforms in Indonesian • Indonesia gains investment grade from all reputable international ratings agency: S&P, Moody’s, Fitch, JCRA and R&I. By 2030 Indonesia will become 5 th biggest economy (CNBC). • Ease of Doing Business 2018 is improved from 91 to 72. Indonesia also recognized as one of the Top Improvers. Currently Indonesia position is above India, Brazil and Philippines. • Indonesia and Switzerland are considered as the countries with the highest level of trust to the Government. • Indonesia position improves from 91 to 36 in Global Competitiveness Index 2017-2018 . 9 of 12 pillars of measurement is getting better score such as: institution, infrastructure, macroeconomic, health and primary education, technological readiness, business sophistication.
Trade de Balanc nce Indo donesia-St. Petersb sburg ( (201 2017) Total Trade: USD 136,588,000 Indonesia’s Import from St. Petersburg: USD 58,262,000 Indonesia’s Export to St. Petersburg: USD 78,326,000 Indonesia’s Import from St. Petersburg No. HS Code Product Value 1. 10 CEREALS 43,144 2. 48 9,167 PAPER AND CARDBOARD; PRODUCTS FROM PAPER WEIGHT, PAPER OR CARDBOARD 3. 76 ALUMINUM AND ITS PRODUCTS 2,684 4. 27 1,812 FUEL MINERAL, OIL AND PRODUCTS OF IT; BITUMINOUS SUBSTANCES 5. 28 PRODUCTS OF NON ORGANIC CHEMISTRY; 928 COMPOUNDS NON ORGANIC OR ORGANIC PRECIOUS METALS, RARE-EARTH METALS, RADIOACTIVE ELEMENTS OR ISOTOPES
Trade B e Balance I ce Indon ones esia a and S St. P Peter ersburg ( (2017) Indonesia’s Export to St. Petersburg No. HS Code Product Value 1. 15 FATS AND OILS OF ANIMAL OR VEGETABLE ORIGIN AND THE 36,742 PRODUCTS OF THEIR SPLITTING 2 84 5,235 REACTORS NUCLEAR, BOILERS, EQUIPMENT AND MECHANICAL DEVICES 3. 24 TOBACCO AND INDUSTRIAL SUBSTITUTES OF TOBACCO 3,340 4. 94 FURNITURE; BED ACCESSORIES, MATTRESSES 3,047 5. 38 OTHER CHEMICAL PRODUCTS 2,972 6. 56 VATA, FELT OR FETER AND NONWOVEN MATERIALS; SPECIAL 2,830 YARN; BERRIES, ROPES, ROPES AND CABLES AND ARTICLES THEREOF 7. 85 ELECTRICAL MACHINES AND EQUIPMENT, THEIR PARTS 2,465 8. 80 TIN AND ITS PRODUCTS 2,409 9. 48 PAPER AND CARDBOARD; PRODUCTS FROM PAPER WEIGHT 2,320 10. 21 MISCELLANEOUS FOODSTUFFS 1,279
Whats’s FTA Next? between Indonesia and EurAsian Economic Union Strategic Increasing trade, What’s industry, Partnership Next investment Underway ? cooperation Strengthening Strengthening people-to people Cooperation contact in multi- on Politics and sector activities Defence
Potential Economic Cooperation in the Future with St. Petersburg High demand of Cereals/ Wheat from Indonesia Energy Cooperation. Indonesia needs 35.000 MW. Huge Russian energy supply such as oil and gas Indonesia is biggest supplier of palm oil. High demand of coffee and tea from Russia. Transfer of technology and knowledge in IT Sector
До встречи в Индонезии! T erima K asih! Спасибо большое!
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