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Indonesia Country Profile

It seems odd that Indonesia is sometimes overlooked in Asia by Western companies despite being the world’s fourth most populous country with close to 280 million people.

It seems odd that Indonesia is sometimes overlooked in Asia by Western companies despite being the world’s fourth most populous country with close to 280 million people.

Key Features of the Indonesian Market

  • Indonesia’s economy is largely driven by domestic activity rather than exports, which helped to cushion it from the global crisis of 2008-09
  • Palm oil, tourism, mining and other natural mineral resources sector are the economic engines
  • Indonesia is a market economy in which the state-owned enterprises (SOEs) and large private business groups (conglomerates) play a significant role to dominate the domestic economy
  • Indonesia’s micro, small and medium sized enterprises, which together account for 99% of the total amount of enterprises that are active in Indonesia and about 60% of Indonesia’s GDP and employs nearly 108 million Indonesians. This implies that MSME companies are the backbone of the Indonesian economy.
  • Strong nationalistic features and prides as part of consumer cultures.
  • Middle income countries with high average growth of 5%
  • Diverse country with 700 languages and 1,340 recognised ethnic groups spread across 17,000 Islands shows that the taste of consumers might be varied and widespread
  • Digitalisation in business plays a major role in growth
  • Strategic Location in which 60% of world trade passes by its maritime border
  • 71% population in the cities producing 86% of GDP.
  • A long archipelago distance from east to west is similar to 7 hours flight of London to Dubai posses a logistical challenges.

SWOT Analysis Indonesia

Strengths

  • High population and growth fourth in the world with 1.4% YoY growth)
  • Young democratic system.
  • Implementation of digital business
  • Strategically located between two continents and two oceans.
  • Young and growing labour force.
  • Sound economic policy.
  • Strong domestic growth market.

Weaknesses

  • Complicated regulatory affairs.
  • Some protectionist policy of the government.
  • Peculiar local business culture.
  • Mismatch between education graduates, output and job markets.
  • High logistical cost and supply chains.

Opportunities

  • Development of new capital and other infrastructure
  • Anything related to the consumer products.
  • Country’s transition to the green resource
  • Needs advance technology for country development.
  • The healthcare industry growth since Indonesia’s has the world largest universal healthcare systems.
  • The development of ten “New Bali” Tourism Destinations.

Threats

  • Global commodity prices fluctuations
  • Rebellious provinces and terrorism as security threat
  • Natural disasters from earthquake and volcano eruptions.
  • Competition from other countries for investment attractions.
  • Economic reliance on few major markets, i.e. China, EU, NAFTA and Japan/ Korea.

Our Experience

  • Established in 2008 with extensive experience in Marketing, Sales and Business Development in Indonesia.
  • Strategic partner of developed countries trade & investment agencies in Indonesia.
  • National expert consultants applying global standards

Our Reach

  • Deep outreach in the Indonesia’s business and government sector.
  • Part of global, national and local business associations or alumni networks.

Our Core Services

  • Market Entry
  • Market Expansion
  • Public Affairs & Government Relations
  • Investment Promotion
  • Sales/Business/Marketing Development

Are you ready?

Is your company considering expanding into Asian markets?

Talk to Us

Perhaps we can help you – so connect with us here. We’re ready to engage you – let us know how to help you improve your impact in Asia.