MOS Teo Ser Luck leads 25 Singapore Companies on IE Singapore-SBF Mission to Indonesia
22 November 2014 [Singapore] - Minister of State (MOS) for Trade and Industry Mr Teo Ser Luck will lead 25 companies, including small and medium-sized enterprises (SMEs), on a business mission to Jakarta and Semarang, Indonesia from 24 – 27 November 2014. Co-organised by International Enterprise (IE) Singapore and the Singapore Business Federation (SBF), in partnership with the Association of Small and Medium Enterprises (ASME) and Singapore Manufacturing Federation (SMF), the mission aims to support Singapore companies, including SMEs, growing business interests in Indonesia. Also joining the trip are Mr Teo Eng Cheong, Chief Executive Officer (CEO) of IE Singapore and Mr Douglas Foo, President of SMF and SBF Council member.
Following Prime Minister Lee Hsien Loong’s official visit to Indonesia in October 2014 for the inauguration of Indonesian President Joko Widodo, this mission will connect Singapore businesses with the local government authorities and business community, and help them better understand the market opportunities.
Mr Teo Ser Luck said, “Indonesia continues to be a key economic partner for Singapore. Its promising long-term growth prospects, large market size, young labour force, and rising affluence of the middle class make Indonesia an attractive investment destination. Through this business mission, I hope more Singapore SMEs will seize these growth opportunities to build on existing ties and forge new partnerships with Indonesian businesses. We also look forward to working closely with the new Indonesian Administration to strengthen our economic engagement in mutually beneficial areas.”
Indonesia remains among the top three most common countries where Singapore SMEs are doing business in, and ranks second among destinations they intend to venture into1. In the past decade, Singapore has been among Indonesia’s largest investors. Singapore was the top investor in Indonesia in the first nine months of 2014, with US$4.9 billion in investments2.
Said Mr Teo Eng Cheong, CEO of IE Singapore, “IE Singapore is co-organising this business mission with SBF to meet the new Indonesia Administration and explore ways to enhance our partnership. In line with the priorities of the new administration, we see potential to partner them in industrial manufacturing and urban development. We have three trade associations and chambers on such a joint mission for the first time as we want to reach out to more SMEs. Through this mission, we hope to help them better assess Indonesia’s market environment, open more doors and introduce the right business partners to them.”
Connecting SMEs to key government officials and business partners
During the mission, the delegation will meet senior government officials and local business associations/groups to network and find out the latest developments. These include Indonesia’s Trade Minister Mr Rahmat Gobel, Jakarta’s Governor Mr Basuki Tjahaja Purnama, Central Java Governor, Mr Ganjar Pranowo, as well as representatives from Indonesia’s Investment Coordinating Board (BKPM), the Central Java Board of Investment, Indonesian Chamber of Commerce and Industry (KADIN), Indonesian Young Entrepreneurs Association (HIPMI), Young Entrepreneur Council (YEC) and the Singapore Chamber of Commerce Indonesia (SingCham).
Mr Douglas Foo said “This business delegation of 25 SMEs signals a good interest in the business opportunities offered by Indonesia. With the new administration and leadership of President Mr Joko Widodo, this mission is timely as our delegates can understand more about the latest developments in Indonesia and explore business opportunities. SBF and SMF will continue to play a significant role in creating inroads for Singapore companies to enter Indonesia.”
Opportunities in manufacturing
Manufacturing is the largest contributor to Indonesia’s economic growth, taking up close to 24% of its GDP last year. It also accounts for over half of Indonesia’s foreign direct investments. Multinational companies including Toyota, Samsung Electronics and Sanofi Aventis have established manufacturing operations to tap into Indonesia’s large domestic market and ready workforce. There are opportunities for Singapore to work together with the new Indonesian Administration in manufacturing, contributing to their focus on industrialisation and creating employment.
In West Java, the companies will visit the Lippo Cikarang Delta Silicon Industrial Estate in Bekasi, which houses more than 800 light, medium and automotive industries. They will also visit and hear from Cellini Design Center, an integrated Singapore manufacturer and retailer of conceptualised lifestyle furniture that has set up its factory in this industrial estate.
In Central Java, the delegation will visit Kendal Industrial Park (KIP), a new integrated township jointly developed by Sembcorp Development and Indonesia’s Jababeka. The 2,700-hectare property offers prepared land and ready-built factories for manufacturing activities, as well as commercial and residential land plots for third party development. They will also visit YCH Group’s factory in Candi Industrial Park.
Singapore SMEs make headway in Indonesia
On 27 November, MOS Teo will witness a Memorandum of Understanding (MOU) signing between Singapore’s Cyclect Energy Pte Ltd3 (Cyclect) and PT. Berkat Manunggal Jaya4 (BMJ). With this, the two companies will leverage each other’s networks to achieve greater global market reach. Cyclect will tap BMJ’s OEM expertise to enhance its heat recovery solutions, which will allow them to develop more efficient cogeneration and heat recovery products, and packaged generator set solutions. IE Singapore is also working with Cyclect to help the company strengthen its foothold in regional markets like Myanmar, the Philippines and Thailand.
In addition, two Singapore companies, Tat Wai Enterprise and Triton Investment Group, will explore investing in furniture and food additives manufacturing plants respectively in the KIP.
1 SME Development survey 2014 by DP Information Group
2 Indonesia Investment Coordinating Board (BKPM)
3 Cyclect is a specialist developer of cogeneration and trigeneration plants, and solutions provider for waste heat recovery solutions, energy efficiency and renewable energy implementations. It also packages solutions to convert waste heat into other resources, such as cooling, heating, distilled water and electricity.
4 BMJ is a one of Indonesia’s leading companies in the power business. Established in 1987, BMJ is a major player in Indonesia’s Independent Power Plant (IPP) and power generation market, and the sole distributor for Mitsubishi OEM packager in Indonesia.