Daxueconsulting+印度尼西亚+x+中国商业关系报告

Indonesia

x

Chinabusiness

relationsMarch

2023UECONSULTING.COMCONTENT

OUTLINE1.

Netizens’

searches:

Baidu

vs.Google2.

Where

inIndonesiaare

Chinese

investing3.

Case

study:

Palm

oil

andWilmar030507094.

Case

study:

Bubbletea,

ice

cream,and

Mixue5.

Bestselling

products

fromIndonesia

onTmall6.

General

perception

ofChina13147.

AboutDaxue

Consulting152©2022

DAXUE

CONSULTINGALLRIGHTSRESERVEDBaidusearchdata

exposes

ChineseperceptionsofIndonesiaIndonesianpolitics

andtourism-related

phrasesare

themostsearched

keywordsbyChinesecitizens.Associated

wordsonBaidu

Index*Suggested

topics

onBaidu

Search^*The

associatedwords

relatedtothe

nameofthecountry^The

suggestedtopicsaftertypingthenameofthecountryinthe

search

barSource:

Baidu

&Baidu

Index,2022.3©2023

DAXUE

CONSULTINGALLRIGHTSRESERVEDChinesenetizens

were

interested

inIndonesia’s

politics

andinternational

eventsChinese

netizens’search

frequency

of“Indonesia/印度尼西亚”

onBaidu•

The

G20

Summitwas

held

inBali.•

Pelosi‘s

itinerary

for

her

AsiaThe18thAsianGameswasheld

inJakarta,Indonesia.trip

wasincluded

avisit

toIndonesia.released,

which•

A

6.8

magnitudeearthquake

struckWestern•

77th

anniversary

of

Indonesia'sIndonesia.independence.Source:

BaiduIndexIndonesian

netizens’search

frequency

of“China”

on

GoogleChinese

companies

seek

to

shiftoperations

to

Southeast

Asia

duetothe

tradewar

withtheUS.Indonesia

wanted

to

secure

up

to

US$60

billionfrom

Chinese

investors

to

build

power

plants,factories,

ports

andinfrastructure.Source:

GoogleTrendsTimeframe:

Jun

2017

–Dec

2022©2023

DAXUE

CONSULTINGALLRIGHTSRESERVEDNote:

Google’simprovement

indata

collection

system4Where

inIndonesiaareChineseinvesting?(1/2)Popularareas

areconcentrated

in

thesouthern

partsofIndonesiaaroundJakarta.BANDUNG–Indonesia‘s

third

most

densely

populated

city

and

a

popularBalikpapantourist

destination:Bandung

is

expected

to

develop

primarily

in

the

hospitalitysector.

Priority

is

expected

to

be

given

to

residential

development,

as

the

citydoes

not

yet

have

a

high-end

residential

project

despite

vibrant

real

estatedevelopment.

Bandung

will

have

new

real

estate

investment

opportunities

inthe

medium

term

in

the

context

of

recent

infrastructure

development

plans(includingahigh-speedraillinkbetween

the

cityand

Jakarta).TangerangBandungSurabayaLombokTANGERANG–Industrial

and

manufacturing

hub:

Tangerang

is

a

majorsettlementforChineseIndonesians.Theregion’seconomyfocusedontrading,financial

services,

and

industrial

sectors.

Keppel

Land

announced

that

it

willcooperate

with

Metropolitan

Land

(Metland)

subsidiary

to

build

450

single-family

houses

in

Metland

Puri

City.

Thus,

there

will

be

an

influx

of

middle-class

people

in

Tangerang,

making

Tangerang

a

good

investment

choice

forreal

estateinvestors.Image

source:

Unsplash,Mrf,

2019A

street

inBandungSource:

Juwai5©2023

DAXUE

CONSULTINGALLRIGHTSRESERVEDWhere

inIndonesiaareChineseinvesting?(2/2)Someareas

becamepopularduetothegrowing

number

ofmiddle-classgroups,

developmentof

infrastructure,

tourism,andthechangeofthecapitalcity.BALIKPAPAN–The

future

capital

city

of

Indonesia:

The

capital

city

ofIndonesia

will

be

moved

from

Jakarta

to

Balikpapan

in

the

hope

of

tacklingoverpopulation

of

Java

Island,

especially

in

Jakarta.

It

will

also

reduce

thesocial

and

economic

gap

between

the

cities

and

regions.

Variousinfrastructureswould

bebuilt,making

Balikpapan

a

noteworthyinvestment.SURABAYA–A

great

choice

for

commercial

real

estate

and

residentialdevelopers

seeking

opportunities

outside

of

Jakarta:

Surabaya

has

agrowing

number

of

middle-class

residents.

In

addition,

the

land

bankavailability

and

progressive

infrastructure

building

make

Surabaya

aworthwhileinvestment

area.Image

source:Unsplash,

Tandya

Rachmat,2020Senggigi

Beach,WestLombokRegencyLOMBOK–A

well-established

resort

destination:

The

area

has

several

largehotels

and

high-end

boutique

hotels.

At

the

same

time,

there

is

plenty

ofentertainment

for

tourists,

such

as

bars

and

restaurants,

as

well

asspeedboats

from

Bali.Image

source:Unsplash,

Dony

Wardhana,

2020A

viewofBalikpapan

CitySource:

Juwai6©2023

DAXUE

CONSULTINGALLRIGHTSRESERVEDChina

hasstrongdemandforIndonesia's

palmoilproductionIndonesiaisthelargestproducerofpalmoilinthe

world,whilstChinaisone

ofthelargestimportersofpalmoilglobally.Top5

palmoilproducingcountries

by

share

of

globalproductionin

2019Top

importers

of

palmoilin2021OOuuttppuutt

((MMiilllliioonnttoonn))Globalshare(%)Share

oftotal

importedpalmoil56%IndiaChinaIndonesiaMalaysiaThailandColumbiaNigeria41.512318.9%20.828%4%11.7%2.91.62%1%Pakistan6.7%1Source:

International

TradeCentre•

In2019,

Indonesia

wasthe

largest

producer

with

41.5

milliontonsof

production,

accountingfor56.2%

oftotalworld

production,

mostofwhich

was

exported.•

Malaysiaisin

secondplace

with20.8

milliontonsofproduction(28.2%),

followed

byThailand

with2.9

milliontons(3.9%).•

Therestoftheproducing

countriesproduced

6milliontons,or8.2%ofthetotalglobal

palm

oilproduction.•

Indiaand

China

mainly

usepalm

oilforcooking.

Inthecaseofthe

EU,asignificantportionofimported

palmoilis

used

forbiofuel

production.•

About75%

oftotalpalmoilimported

byChina

is

consumed

in

thefoodsector.The

growth

potential

of

edible-grade

palmoilimports

inChinaishuge.Source:

CME

GroupSource:

MPOC7©2023

DAXUE

CONSULTINGALLRIGHTSRESERVEDCase

Study:

Wilmar

International

LimitedinChinaWilmarownsa45%marketshareofedibleoilin

Chinain

2021;65%oftherawmaterialsforpalmoiloriginatedfromIndonesia.•WilmarInternational

Limted,

formerly

knownasWilmar

Holdings,

isone

ofthe

world‘s

largest

edible

oilrefiners

and

wasranked

211th

ontheFortune

Global

500

in

2021.••Ithas

an

annual

turnover

of

over

US$10billion.Wilmar

was

founded

in1991

by

Martua

Sitorus,

anIndonesian,

and

KuokKhoonHong,aMalaysian.•

Yihai

Kerry

Investment

Co.

LTD

is

one

of

the

top

10companies

in

the

vegetable

oil

industry

in

China.Headquartered

in

Shanghai,

Yihai

Kerry

is

a

foreign-investedenterprise

jointly

established

by

Wilmar

International

and

TheArcher-Daniels-MidlandCompany

in

the

USA.•

The

extensive

industrial

presence

of

the

Yihai

Kerry

Group

inthe

Chinese

market

has

contributed

to

a

strong

reduction

inprocessing

costs.

It

has

30

edible

oil

refineries

in

China.

Theproduction

bases

cover

a

wide

range

of

first

and

second-tiercities

in

China

with

easy

access

to

shipping

and

highconsumption

levels

and

have

a

comprehensive

and

strongindustrial

presence

along

the

coast,

Yangtze

River,

and

inland

tocontrolraw

material

and

transportation

costs.•

The

Yihai

Kerry

Group

focuses

on

brand

building

to

create

animage

of

high-quality

edible

oil.

The

company

has

well-knownedible

oil

brands

such

as

“Golden

Dragonfish”,

“Hujihua

(胡姬花)”,

“Fulinmen

(福临门)”

and

“Luhua

(鲁花)”.

The

company‘sflagship

product,

“Golden

Dragonfish

(金龙鱼)",

has

becomeawell-known

trademark

inChina.•

Yihai

Kerry

Group’s

edible

oil

products

have

established

a

largenetwork

of

distributors

in

China

and

achieved

extensivecoverage

of

offline

sales

channels.

Yihai

Kerry

Group’s

hasmore

than

2,000

distributors

in

China,

covering

more

than

400large

and

medium-sized

cities

acrossthe

country.Source:

WilmarInternational

Annual

Report,CN

Info8©2023

DAXUE

CONSULTINGALLRIGHTSRESERVEDBubbletea

and

ice

creamare

gainingtraction

in

IndonesiaMillennials

and

Gen-ZtreatF&B

as

apart

of

theirlifestyle

as

they

are

often

prompted

by

influencers

who

are

making

culinaryreview

content

who

gained

massive

following.

The

tradition

of

consuming

sweet

food

and

hot

weather

reinforced

theirincreasedconsumption

of

icecreamand

bubble

tea.This

createsan

opportunity

forChinese

F&B

companies.Ice

creamBubble

teaTheicecream

industryin

Indonesia

isgrowing.Bubble

teais

gaining

enthusiasts

in

Indonesia.$527MILLIONin

2019CAGR

ofGREWMORETHANTHEGrabFood’sbubble

teasales10.4%8,500%HIGHESTGROWTHINASEANin

Indonesia

(2018)between

2015-2019Source:

MarketLine

(2020)Source:

GrabFood

(2019)••The

Indonesian

ice

cream

market

can

be

divided

intothree

different

categories:

artisanal,

impulse,

and

take-home

icecream.•••Brown

sugar

boba

milk

tea

is

especially

popular

during

the“relaxingafternoon”

periodbetween

14:00-17:00.On

average,

Indonesians

drink

3

cups

of

bubble

tea

permonthviaGrabFood

in

2018.Impulse

ice

cream,

which

is

ice

cream

in

the

single-serve

category,

is

the

major

type

sold

in

the

Indonesianmarket.Therefore,

there

is

a

possibility

of

higher

cups

purchase

permonthwhen

combined

with

theofflinechannel.Source:

MarketLine,

GlobalDataSource:

GrabFood9©2023

DAXUE

CONSULTINGALLRIGHTSRESERVEDCase

Study:MixueBingcheng

(蜜雪冰城)inIndonesia(1/2)Factorsthat

help

Mixue

succeedinIndonesia

include

affordable

pricesand

socialmediapromotion.1997200020212022Apredecessor

of

MixueBingcheng(Mixue),寒流刨冰,

was

launchedinZhengzhou.Itspecializesin

shaved

iceand

colddrinks.Thebrand

name蜜雪冰城

was

firstofficiallylaunched.Mixuefirstentered

Indonesia

byoperatingin

Bandung

in

March.

Itopened

itsfirststoreinJakartainNovember.Mixuehasmore

than

300shopsspread

acrossthreeIndonesian

islands.Sources:Baidu

&

LandX

(2022)•One

of

the

key

drivers

that

help

Mixue

succeed

in

Indonesia

is

thecheap

price

point.

In

Indonesia,

their

product

price

ranges

fromIDR

8,000

-22,000

(US$0.53

-

1.45).••Thecoldand

refreshing

product

of

Mixuealsosuitsthetropical

weather

ofIndonesia.Some

ofMixue’s

best-sellingproducts

in

Indonesia

are:••MixueIndonesia’s

Instagram

hasafollower

of

57.8

thousand

andthe

Jakarta

storeshasatotalofmore

than

3,700

reviews

onGoogle.▪

MixueIce

Cream▪

BobaSundae▪

FreshSqueezed

Lemonade▪

Strawberry

MiShakeTikTokalsoplaysasignificantrole

in

makingMixuefamous

inIndonesia.Source:

Instagram,Compiled

through

Google

by

DaxueConsulting,

LandXSource:

Tribunnews10©2023

DAXUE

CONSULTINGALLRIGHTSRESERVEDCase

Study:MixueBingcheng

(蜜雪冰城)inIndonesia(2/2)Thefranchise

modelhelpedthebrandexpand

quicklyin

Indonesia.Mixue

BingchengatDepok,WestJavaMixue

BingchengatSutoyo,Yogyakarta••Mixueutilizesafranchisemodel

toexpand,

bothlocallyin

Chinaand

globally.

Thefranchisefee

varies

based

onlocation.••Comparing

the

number

ofMixuestoresto

popular

brand

chainswithsimilarproducts,

Mixuehasthe

second

highest

storecount.LocationProvincial

capitalsCitiesFranchiseFeeBrandMixue

Chatime

KOIThé

Kokumi

XingFuTang53

92

25

16

11CNY11,000/year

(US$1,621/year)CNY9,000/year

(US$1,326/year)CNY7,000/year

(US$1,031/year)NumberofStores

inJakartaCounty-level

citiesDespiteplacingsecond,Mixuereached

that

number

within

twoyears

whileChatimeachieved

opening

92storesin

Indonesiasinceitsmarket

entryin

2011.InIndonesia,

thereare

already

around

300

Mixue

stores

onthreedifferent

islands:Java,Sumatra

and

Bali

by

June2022.Source:

LandX,

Mixue

BingchengSources:

Kumparan

(2022),

Chatime,

KOI

Thé,Kokumi

&Xing

FuTang11©2023

DAXUE

CONSULTINGALLRIGHTSRESERVEDSearch

trendsofMixue

onGoogle

inIndonesia•

Openedthe

firstMixue

outletin

theshopping

mallatthe

Mall

Olympic

Garden(MOG).•

Halalstatusof

MixueTimeframe:Dec2021

–Dec2022Related

queriesAbout88%ofIndonesia’sMixue

ice

cream

is

pricedpopulation

identified

themselves

asMuslims.

Halal

food

is

food

(anddrinks)

that

abides

by

Islamic

lawand

canbeconsumed

byMuslims.affordablyatIDR8,000(US$0.53),

which

created

abuzz

on

social

media

when

itwas

launched

in

Indonesia.IsMixuehalal?MixueicecreamSource:

GoogleTrends,IndonesiaInvestmentsNote:

Google’simprovement

indata

collection

system12©2023

DAXUE

CONSULTINGALLRIGHTSRESERVEDBest

selling

productsfromIndonesiaonTmall(Excludingtourism)PAPATONKWASUKAMILKITASHRIMPCRACKERSCHOCOLATE

PREMIUM

ROLLED

WAFERASSORTED

MILKLOLLIPOPPrice:

CNY25.90(US$3.81)Monthly

sales:3,000+Reviews:10,000+Price:

CNY19.90(US$2.93)Monthly

sales:400+Reviews:8,000+Price:

CNY29.90(US$4.40)Monthly

sales:200+Reviews:300+Popularitydueto:Longvalidityperiod,good

taste,cheapPopularity

due

to:

Very

crispy,

notgreasy,

richchocolateflavorPopularity

due

to:

Exquisitepackaging,greattaste,value-for-moneySource:

Tmall,

202213©2023

DAXUE

CONSULTINGALLRIGHTSRESERVEDWhatdoIndonesians

think

aboutChina?Indonesiansareinfavor

ofelectronics,householdappliancesandfashionitemsfromChina.••40%

ofIndonesians

believe

that

Indonesia’s

interestswould

notbeharmed

ifChina

gained

more

power.However,

the

citizensbelieve

thatthe

USeconomy

(18%)

is

more

important

for

Indonesia’s

economy

compared

toChina’s(12%).INDONESIAPercentage

of

Indonesians

infavor

ofinvestment

fromthe

following

foreign

country

(2021)There

hasbeen

agradual

shiftinperspective

regardingChinese

products

inIndonesia.SaudiArabia57%53%53%••••In

the

past,

products

from

China

were

viewed

as

cheap

low-quality

productsthat

mightalsoposehealthand

safetyrisks.SingaporeJapanHowever,

Chinese

products

now

have

higher

quality

whilemaintaining

itsaffordable

prices.MalaysiaUS47%Its

design,

features,

and

packaging

also

entice

Indonesianconsumers.42%41%AustraliaNetherlandsChinaElectronics,

fashion,

medical

equipment,

householdappliances,

and

personal

care

products

are

some

of

theproduct

types

from

Chinathat

arepopular

in

Indonesia.37%30%Number

ofrespondents

(approx.)

3,000

aged

18-65

across33

provinces

inIndonesiaSource:

LowyInstituteSources:

Blueray

Cargo,

Nusakini,AsiaCommerce14©2023

DAXUE

CONSULTINGALLRIGHTSRESERVEDAboutDaxue

Consulting<<TO

ACCESS

MORE

INFORMATION

ON

THEBEAUTY

MARKET

INCHINA,

PLEASE

CONTACT

DX@DAXUECONSULTING.COMOur

mission

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growth

inAsiaThrough

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research

and

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consulting,

we

equipbusinesseswith

the

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andguidanceto

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and

beyonddx@+86(21)53860380Who

WeAreYourMarketResearchCompany

inChinaCoveredTier-1citiesCoveredTier-2citiesCoveredTier-3(and

below)citiesWeareDaxueConsulting:•Amarket

researchfirm

specializing

ontheChinesemarket

since2010•With

3offices

inChina:

inShanghai,

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and

Hong

Kong•Employing

30+

full-timeconsultants北京BEIJING,

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40Dongzhong

Road,Dongcheng

District•Full,complete,national

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Office)Office

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District•Efficientand

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precise,

reliable

recommendations•With

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from

around

the

world香港HONG

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CHINA33-35

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Wan©2022

DAXUECONSULTINGALL

RIGHTS

INCLUDEDThevalues

we

embraceOurclients’goals

areour

goalsWeseeourselves

asanextensionofthe

client’sbusiness

inChinaor

theirtargetcountry,

hence,weadvise

themasifwewereintheirshoes

andinvesting

along

withthem.Embrace

change

enthusiasticallySimilartohowmarketsare

constantly

changing,

our

mindsetisalsoalwaysevolving.

Wevalue

routineonly

whenithelps

usimprove

andwe

valuechange

because

ithelps

tokeeppace

withour

time.Intellectual

humility

givesclarityOnlythrough

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ofhumility

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Atdaxueconsulting,weare

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scienceand

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Weinterpretdatainawaythatletsitspeak

foritself,

even

ifcontradictsour

hypothesis.Freedom

enriches

creativity&responsibilityFreedom

to

manage

andenvision

her

or

hismissionincreases

thesenseofresponsibility

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thatmission.Knowledge

ismeanttobe

sharedWhileour

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toclients,themediateamshares

insightspublicly.Atthesametime,

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ourteam,each

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