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Indonesia News E M B A S S Y O F T H E R E P U B L I C O F I N D O N E S I A I N S T O C K H O L M

June 2016

Expand Your Business Opportunities Tomorrow and Beyond, and Source at Remarkable Indonesia TEI 2016 will feature 5 (five) product zones, which are Manufactured Goods and Services; Furniture & Home

Decoration; Food & Beverages; Premium Craft, Beauty & Lifestyle; and Premium SME’s Products for detail, please visit: www.tradexpoindonesia.com

Content 31st Trade Expo Indonesia ………………………………..p.1

Indonesian baby clothing............................p.2-3

Investment News: Reasons to invest in Indonesia …....p.4

Investment opportunity:

F&B sector ......................p.5-6

Nihiwatu Sumba Resort: World’s Best Private Hotel ..........................................p.7-8

Indonesia News is compiled, printed, and published periodically by the Embassy of the Republic of Indonesia in Stockholm, Sweden. Visiting address: Kungsbroplan 1, 4 tr, 112 27 Stockholm, Sweden. Postal: Embassy of Indonesia, Box13062, 10302 Stockholm.

Ph: +46-8-54555880 Fax: +46-8-6508750 Web: http://www.kemlu.go.id/stockholm/en/default.aspx Email: stockholm.kbri@kemlu.go.id

12-16 October 2016 Jakarta Internal Expo, Kemayoran, Jakarta, Indonesia

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Product exposition

Indonesian baby clothings Clothing is a very important item for a baby who grows rapidly during its early years of development which requires the parents to keep buying new clothes. Baby clothes needs to have a high quality especially material wise because a baby’s skin is still sensitive, very thin and prone to allergies. Other than materials, the design of baby clothes must also pay attention various factors such as temperature and weather to keep a baby warm. With the development in fashion world, baby clothing is also now available in various types, designs, sizes and colors. Parents are no longer only prioritize the comfort of baby clothing but also want their babies to look more modern and wear the latest trend in clothing. Cultural difference also plays a role in choosing baby clothing which led to high demand in the international market. Indonesia is known as a leading garment producer and is supplying baby clothing to the international market. Indonesia is listed in the Top 10 of baby clothing exporter because the quality of Indonesian baby clothing is guaranteed. All families are waiting for a baby to be present among them and in certain groups or ethnics, the baby’ sex determines the lineage line of the father or mother. Parents tend to be protective on their babies due to their fragile natures against the outside world. Parents’ greatest concerns are clothing and food for their babies. Baby clothing is a primary need which is used especially to keep the babies warm. However, currently baby clothing is no longer just a necessity but also the manifestation of the parents’ “creativity” who want to dress up their babies so that they can be presented in a more adorable way by following the current trend. Parents have started to pay attention on designs, colors and types of baby clothing in accordance to the event, while keeping in mind the baby’s comfort. It is not unusual that parents have prepared baby clothing with various cute colors and designs before the babies are even born. Indonesian designers are following the trend of baby clothing and fully understand what the parents want by designing various baby clothing with soft colors and gorgeous design. In general, baby clothing is categorized based on sex, age, and usage, whether it is a formal or a relaxed event. The current trend among parents is “mini me” in which parents want to dress their babies in a similar way with what the parents wear, both color and design. The trend is usually according to the sex a baby girl will dress similar to her mother and a baby boy to his father. However, mothers do more of the “mini me” trend to their daughters as women clothing are far more varied than for men. It is not uncommon for parents to dress their babies with tuxedo and bow tie or mini dress, to name a few examples.

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Indonesian baby clothing products have been exported to the various countries in the world with countries located far away as the main customers. In January - September 2015, the United States dominated the destination market with an export value of US$143.13 million or 73.24% from Indonesia’s total export of baby clothing products in the period. The figure represented an increase of 20.23% when compared to the same period in 2014. Other major destination countries for Indonesian baby clothings were China with a

share of 2.85% from Indonesia’s total export followed by Canada (2.85%), Japan (2.66%), the United Kingdom (2.48%), the United Arab Emirates (2.02%), Germany (2.02%), Italy (1.73%), Hong Kong (1.21%), and Singapore (1.06%). Among the 10 largest destination countries, export of baby clothings to Singapore enjoyed the largest increase at 49.82% when compared to the same period in the previous year.

On the other hand, the world’s import of baby clothings also kept growing in the past five years. The import was US$9.28 billion in 2010 and increased with a trend of 1.02% with an import of US$10.29 billion in 2014. The United States was still the world’s largest customer for baby clothings. In 2014, the United States imported US$2.42 billion or 23.53% from the world’s total import. This figure represented an increase of 0.80% from 2013’s import and showed that the United States still has high demands for baby clothings and it is estimated that the demand from the United States will still increase. Other major importers are the United Kingdom with an import of US$860.93 million or a market share of 8.37%, France with an import of US$825.76 million (8.03%), Germany which imported US$610.84 million (5.94%), Spain with US$490.32 (4.77%) and Italy with US$423.26 million (4.11%).

Baby garments and clothing accessories of cotton knitted was the most imported group in 2014 with an import value reaching US$6.21 billion or 60.36% from the total import of baby clothing. The value was an increase of 3.80% when compared to the import value in 2013. Other most imported group was Babies garments and clothing accessories of cotton, not knitted” with an import of US$ 1.94 billion or 18.82% from the world’s total import of baby clothing. List of exporters:

BIGTHA TRYPHENA GARMENT INDUSTRY Jl. Raya Batujajar No. 137 (Km.13), Laksana

Mekar, Padalarang, Jawa Barat 40533, Indonesia. Phone: (+62-22) 6866111

Fax: (+62-22) 6866777 Website: www.bigtha.com

PT. RICHTEX GARMINDO Kawasan Industri Guna Mekar, Jl. Tambak Aji I,

Ngaliyan, Semarang, Indonesia. Phone: (+62-24) 8665666

Website: www.richtex.co.id PT. DAN LIRIS

Kelurahan Banaran, Kecamatan Grogol, Kabupaten Sukoharjo 57193,

Jawa Tengah, Indonesia. Phone: (+62-271) 740888, 714400

Website: www.danliris.com

LIZA CHRISTINA GARMENT INDUSTRY

Jl. Selabintana, Km 3,5 No. 41,

Kecamatan Sukabumi,

Jawa Barat, Indonesia Phone: +62 266 221426

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Reasons to Invest in Indonesia Indonesia is your investment destination. Abundant natural resources, a young and technically trained work force and a large and growing domestic market, combined with an improving investment climate and a higher global profile, are just a few of

Indonesia’s salient strengths. With stability firmly

planted after 17 years of vibrant democratic rule,

Indonesia’s vast economic potential is

primed for takeoff. Invest in

remarkable Indonesia.

Indonesia is an emerging global powerhouse in Asia. With the GDP expected to reach US$ 870 billion in 2014, Indonesia is the largest economy in Southeast Asia. Underlying Indonesia’s vibrant

economy is political stability. Since emerging from decades of autocratic rule 17 years ago, Indonesia has succeeded maintaining political stability in young democratic country. Following Indonesia's economic resilience during and after the global financial crisis, the government is going to continue reforming investment climate to make a safe and attractive investment destination. Indonesia abounds with natural resources extractions from being a major producer of liquefied natural gas and expansion of mining industry. Petroleum and mineral

make up majority exports. Indonesia is undergoing a major structural shift

namely demographic bonus. The percentage of productive age group in 2025-2035 would dominate the

population. As the 4th

biggest population in the world, more than 53% of the people live in urban areas with a modern lifestyle and increasing purchasing power. Indonesia is playing a more dominant role in global affairs. It is Southeast Asia’s only member of the G-20 and an active voice for developing world’s concerns.

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Investment opportunity

F&B sector

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Travel

NIHIWATU SUMBA RESORT: WORLD'S BEST PRIVATE HOTEL The reputable lifestyle Travel & Leisure magazine recently picked Nihiwatu Sumba Resort on the little known Indonesian island of Sumba in East Nusa Tenggara, as World's Best Private Hotel 2016,

selected from a list of 100 hotels across the globe based on the magazine's readers' survey for its annual World’s Best Awards. Nihiwatu Resort topped even other famous hotels like The Spectator, Charleston in South Carolina (USA), Huka Lodge, Taupo (New Zealand), and Southern Ocean Lodge, Kangaroo Island (Australia) and the Peninsula Shanghai with its fancy rooftop bar offeringa view of Shanghai skyscrapers. Nihiwatu Resort well deserves this accolade because of its luxurious accommodation built in local architecture set amidst some stunning landscape. Here the tropical forest, rice terraces, grasslands and protected white sandy beachfront of Nihi Beach blend harmoniously with authentic local experiences. Located 55 minutes flight from Bali, Sumba island is known for its superlative waves so popular with surfers. One of the world’s

most exclusive wave “Occy Left” remains its most famous draw, luring surfers from the world over, limiting itself to 10 surfers at the break per day.

Besides surfing Nihiwatu offers a wide range of activities that include spa options, waterfall hikes, biking, scuba diving and snorkeling, yoga, day trips or horseback riding. James McBride, Managing Partner of Nihiwatu stated that Nihiwatu offers a unique personal journey for those who stay there since it involves guests in developing surrounding villages through its social reponsibility program. The resort aims to follow the principles of sustainable tourism by donating profits to the Sumba Foundation, that funds malaria clinics, run poverty prevention programs, build water wells and schools for the locals on the island. During their stay, guests are introduced to the Foundation's efforts through an impactful presentation and short film. The resort is the largest employer on the island where locals make up more than 90% of its total workforce. For rates ranging from USD 650 for One Bedroom

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Villa to USD 12,000 for a Five Bedroom Estate, guests find their stay at Nihiwatu rewarding since with the Resort they also become benefactors and give back to local communities funds for education and development. "Hospitality-centric luxury has changed," Nihiwatu’s owner Chris Burch said in a press release. "It is more than just the finer touches. It has evolved to a custom-made itinerary, a personal journey, unexpected experiences, and a curiosity for the unknown. We have been extremely fortunate to exceed everything we set out to deliver with

the Nihiwatu concept." Travel behaviour of today’s consumer is changing rapidly. Today they seek a new type of luxury: one that is experiential in scope, activity-driven, culturally steeped and philanthropic, with attention to details that encourage guests to discover the very best in adventure, immersion, and fun. For more information log on to : www.nihiwatu.com The Top 10 private hotels named in Travel & Leisure's 2016 World's Best Awards are: 1. Nihiwatu Sumba, Indonesia 2. The Spectator, Charleston,

South Carolina, USA 3. Huka Lodge, Taupo, New

Zealand 4. Southern Ocean Lodge,

Kangaroo Island, Australia 5. Montage Kapalua Bay, Lahaina,

Maui, Hawaii, USA 6. The Lodge, Glendorn Bradford,

Pennsylvania, USA 7. The Willcox, Aiken, South

Carolina, USA 8. Casa Gangotena, Quito, Ekuador 9. Twin Farms, Barnard, Vermont,

USA 10. The Singular Patagonia, Puerto

Bories, Chile

Disclaimer: While every effort is made to ensure that the content of this publication is accurate, the publication is provided “as is” and the Embassy of the Republic of Indonesia in Stockholm, Sweden makes no representations or warranties relating to the content and use of this publication. Nothing on this publication should be taken to constitute or imply a formal recommendation by the Embassy.

photos: nihiwatu.com