Deutsche Messe has announced its debut as an operator on the Indonesian exhibition market. On July 8 a contract coverig the future operation of the Indonesia Convention Exhibition center (ICE) was signed in Jakarta by PT Indonesia International Expo (PT IIE), Media Sinar Global (MSG) and Hannover Fairs International GmbH, a subsidiary of Deutsche Messe AG. PT IIE is a subsidiary of Sinarmas Land Group and Kompas Gramedia Group, Indonesia’s leading real estate developer and the country’s leading media enterprise, respectively.
The investors Sinarmas and Kompas Gramedia are commissioning Hannover Fairs International with the complete operational management of ICE. To this end the partners are establishing a joint venture known as “PT Deutsche Messe Venue Operations Indonesia”. Hannover Fairs International will hold a 51 percent stake in the joint venture. The starting shot has already been fired for rentals of the facility, with initial client inquiries already coming in, and the first events planned for 2015.
The fourth largest population in the world At the contract signing Andreas Gruchow, member of the managing board at Deutsche Messe AG responsible for the joint venture, analyzed the deal as follows: “With 247 million inhabitants, Indonesia has the fourth largest population in the world and is Southeast Asia’s biggest economy. Apart from the BRIC nations, Indonesia is one of the world’s leading growth markets. A key objective of our foreign strategy is to grow our expertise as an operator of exhibition facilities abroad, and Indonesia offers the ideal prerequisites for expanding our tradeshow business: The economy there continues to grow, international industry is actively involved and the investment climate remains stable”.
The Indonesian trade fair market is growing rapidly, in particular in the capital goods sectors of mechanical and plant engineering, energy, construction and mining. Supported by government programs and investments in education, this Asian nation is quickly developing from a raw materials supplier into a production location with a high readiness by industry to invest. Since 2010 annual economic growth has averaged roughly 6 percent and is projected to reach 7–8 percent in the near future. In expanding the infrastructure in the run-up to 2050, investments of 40 billion US dollars are planned for railways, port facilities and road-building projects. The capital city of Jakarta, with a population of 25 million, is the country’s leading exhibition venue and serves as a trading hub for the Southeast Asian nations Singapore, Malaysia, Myanmar and Vietnam as well as Thailand, Japan, Australia and China.
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