Indonesia Country Profile

A push to improve the business operating climate has allowed Indonesia to start realising its full economic potential. Here are some key features foreign businesses will want to know as well as a SWOT Analysis of Indonesia. To better understand if you’re ready to enter the market, click here to take our Readiness Check.

• 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.