Citi is in 100 countries though we operate in 160 countries. Indonesia is categorized as an invest-and-grow country in the overall context and strategy of Citi. The firm wants to invest and grow the franchise in Indonesia. It is an important franchise globally, in Asia, and ASEAN. In 2018, we will celebrate 50 years in Indonesia as we started operations in 1968. We have an internal tagline: 50 years for Indonesia instead of 50 years in Indonesia. We have been here for 50 years and want to be here for the next 50 years and the following 50 as well. The Indonesian banking sector has grown tremendously with certain uniqueness. We are the perfect fit for investors who want to invest in Indonesia, be it in the financial sector, portfolio segment, or real estate. We were pleased that Indonesia's investment grade was upgraded and its position on the World Bank's ease of doing business index jumped from 91 to 72. 2017 was a great year for the banking sector. The banking sector is well capitalized, the capital adequacy ratio is around 23%, the banking sector has ample liquidity, and the loan-to-deposit ratio hovers around 18%. The banking sector is experiencing a low interest rate environment and the central bank has got the benchmark rate of eight times since the beginning of 2016.
CEO, Citibank Indonesia
Regional Director, Lufthansa Group Airlines
Lufthansa Group has experienced solid growth in the Indonesian market; the number of customers from this market increased by more than 50% in 2017 compared to 2016. Other than Jakarta, we also see traffic coming from Denpasar, Surabaya, Medan, and Manado. These cities are connected with our partner Singapore Airlines via Singapore. For Denpasar and Surabaya, Garuda Indonesia and Jetstar also offer connectivity via Singapore. Our partnership with Singapore Airlines allows us to offer greater connectivity and flexibility to connect more secondary Indonesian cities to our hubs. We connect our Indonesian customers via Singapore to Frankfurt, Zurich, and beyond. We recently adjusted and enhanced our sales force in Indonesia. And with that completed, we can now focus on developing and strengthening our presence in this key Southeast Asian market with both corporate and individual travelers. One of the priorities is continuing our work to enhance the joint venture scope and include more travel options for our customers in this region. Next, on the Lufthansa Group level, we continue to include elements of digitalization and modernization into our products and services for our customers. We have set an investment of EUR500 million until 2020 into digitalization and innovation. Lufthansa Group is also investing EUR36 billion on fleet modernization between 2016 and 2025 that sees 252 new aircraft joining the fleet.
President Director, BMW Group Indonesia
As a luxury car manufacturer, we choose our products for this market based on our customers' demands. With that in mind, we are currently assembling most of our flagship products—X1, X3, X5, 3 Series, 5 Series, and 7 Series—in Indonesia. Our local partner, PT Gaya Motor, under the supervision of BMW AG, can assemble up to 18 units per day. Almost 85% of our total sales come from locally assembled products and, based on this, we look forward to increasing our assembling capacity to offer even more premium cars to our customers in Indonesia. The electrification of road cars is inevitable. In Indonesia, synergy between the government and industry players, through the key components of infrastructure support and tax regulations, will lead to the success of this new segment. 2018 is set to be an exciting year, as we plan to introduce a series of new products in the SUV and sedan segments, including an unprecedented all-new product. Overall, we will launch more than 10 new vehicles in 2018. We are extremely thrilled about these new products complementing our current offerings and bringing sheer driving pleasure to more people in Indonesia. We will also offer more locally assembled products. We hope this will further expand our business in Indonesia and also increase our market share.