Today, February, Indonesian President Prabowo launched 77 indicative National Strategic Projects (PSNs), including 29 new projects and 48 ongoing or carryover projects, which will be prioritized between 2025 and 2029.
A PSN is a project or program that has strategic value and has a significant impact on achieving national development goals. A PSN can be implemented by the central government, local governments, state-owned enterprises (BUMNs), or private enterprises.
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29 new national strategic projects (PSN)
PDAEXSEA uses the examples of the Free Nutritious Meal Program (MBG) that is being prepared and implemented and the construction of 3 million houses to analyze the huge potential opportunities it brings to related industries in China.
Free nutritious meal plans
It is understood that since its launch on January 6 this year, Indonesia's free nutritious meal program for children, primary and secondary school students, pregnant women and breastfeeding mothers has covered 38 provinces.
Free nutritious meal plan related investment opportunities
Menus are adjusted according to the food production situation in different regions.
The combination of carbohydrates, side dishes, fruits and vegetables varies from region to region.
For example, the Sumatra region mainly uses rice, chicken and tofu, and papaya as fruit; Mentawai provides sago and taro, shrimp and fish, and fruits include durian and jackfruit; while Kalimantan uses taro and cassava as carbohydrates, fish and beef. Menus in other regions are also adjusted according to the characteristics of local ingredients, such as corn, sorghum, fish, beef, etc.
(2) Seasoning production:
Indonesia has a rich food culture and uses a lot of seasonings. It is recommended to focus on the increase in demand for products such as chili sauce, sweet soy sauce, fried chicken seasoning powder, shrimp paste, bean paste, fish sauce, etc.
(3) Kitchen supplies:
In order to ensure that each MBG kitchen can operate normally, it must be equipped with various stoves, cooking utensils, knives, tableware and other equipment, as well as various kitchen appliances and gadgets such as mixers and electronic scales.
Currently, the tableware used in the plan includes plastic and stainless steel products. Stainless steel tableware needs to be recycled and cleaned before use, so the demand for kitchen cleaning products will also increase.
It is recommended that relevant companies keep paying attention, look for local production capacity gaps and alternative opportunities, and seize the demand opportunities of the free nutritious meal plan.
3 million housing construction plan
Chinese construction companies can rely on their rich experience and technical strength in infrastructure construction and housing construction to participate in the engineering contracting of Indonesia's housing construction projects, and undertake the entire process of construction from foundation construction to housing completion.
As the project continues to advance, the commercial construction market is expected to reach US$45.64 billion by 2029, with an annual compound growth rate of 8.05%. The plan will greatly boost the demand for upstream and downstream industrial chains such as building materials and home furnishings.
Take traditional building materials such as cement, steel, tiles, and glass as an example. These products occupy most of the market share, but the local production capacity of major building materials such as cement and steel is not enough to meet the existing demand.
Among them, cement is the largest single product category, accounting for about 30% of the entire market. Chinese companies such as Conch Cement and Red Lion Cement have already set up factories 10 years ago.
Steel and tiles account for about 20% and 15% of the market share respectively. Xinyi Glass has also opened a factory in Indonesia. These categories are relatively mature in Indonesia and are also subject to government policy regulation. For example, the import of steel and tiles not only requires quotas, but also requires Indonesian national standard SNI certification.
In addition, with the increase in environmental awareness, the government has promoted the green building materials market such as sustainable construction, insulation materials, waterproof materials, energy-saving glass and environmentally friendly coatings, which has great potential.
The overall growth in demand for building materials in Indonesia has brought good opportunities for Chinese companies to expand the global market.
However, the Indonesian market is vast and consists of an archipelago, which brings huge logistics and distribution challenges. To distribute Chinese building materials products, a strong distribution network is required.
Therefore, there are two keys to breaking through the Indonesian building materials market. One is to implement localization, with warehouses, goods and services in the local area, and the other is to insist on win-win cooperation, stand from the perspective of supply chain and manufacturers, and empower local channels.
PDAEXSEA Indonesia empowers Chinese companies to deepen localization
As a professional service organization that has been deeply involved in the Indonesian market for a long time, PDAEXSEA Indonesia has always been committed to providing enterprises with full-cycle overseas solutions based on its political and business resource network and localized operation team accumulated over the years. With a deep understanding of Indonesia's policies, regulations, industrial ecology and cultural environment, we can provide enterprises with:
Tailor-made business inspection plans, accurately connecting with local characteristic industrial cluster resources such as manufacturing and retail;
Through in-depth market research to gain insight into consumption trends, we help enterprises seize the structural opportunities of Indonesia's 270 million population market;
Relying on government cooperation channels and industry databases, we build a service closed loop for investors from policy consultation, document application, resource matching to investment implementation;
In view of Indonesia's complex fiscal and taxation regulatory system, PDAEXSEA provides localized fiscal and taxation compliance consulting and implementation support to assist enterprises in accurately interpreting tax policies, optimizing cost structures, avoiding compliance risks, and ensuring that the entire operation process complies with Indonesian laws and regulations and international accounting standards.
Indonesia's open investment policy and huge economic potential have created unprecedented opportunities for Chinese companies to enter the Indonesian market. PDAEXSEA is willing to become a strategic partner for companies to explore the Indonesian market and help Chinese companies build a sustainable development model with both commercial value and social benefits with professional services.
PDAEXSEA Indonesia looks forward to your visit:
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