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bauma 2013 - Indonesia Day

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Welcome

Best practice example

Philipp Parnitzke, HAVER NIAGARA GmbH

Area Sales Manager - Middle East and Southeast

AsiaApril 17th 20132

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Doing Business in Indonesia

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Since 2010 active in the Indonesian mining marketParticipating 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.

DOING BUSINESS IN INDONESIA

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DOING BUSINESS IN INDONESIA

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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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Experiences while travelling in Indonesia

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DOING BUSINESS IN INDONESIA

appliable after landing

costs: $ US 25 length of stay:

max. 30 days single entry only

Visa on arrival

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DOING BUSINESS IN INDONESIA

application through Indonesian Embassy, before travelling

costs: $ US 100 valid: 1 year length of stay:

max. 30 days multiple entry sponsor needed

Business Visa

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DOING BUSINESS IN INDONESIA

Contact details:EKONIDGerman-Indonesian Chamber of Industry & CommerceDeutsch-Indonesische Industrie- & Handelskammer Perkumpulan Ekonomi Indonesia-Jerman

Jl. H. Agus Salim No. 115, Jakarta 10310P.O. Box 3151, Jakarta 10031, IndonesiaTel. : +62-21-3154685Fax : +62-21-3157088, 3155276E-mail : info(at)ekonid.or.idWebsite : www.ekonid.com

Service by

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Opportunities & Challenges of the Mining-Business

in Indonesia

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OPPORTUNITIES

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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

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Indonesia has large resources of raw-materials such as:

Thermal Coal - World‘s No one coal producer. 320 Mio/tons in 2011Producer: 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/tonsProducer: PT Freeport Indonesia, PT Newmont Nusa Tengara, Gresik

Bauxite - Production 40 Mio/tons in 2011Producer: 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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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

CHALLENGES

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CHALLENGES

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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

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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 GmbHRobert-Bosch-Str. 6

48153 MünsterGermany

www.havertyler.com