As a high potential and relatively stable market for foreign companies and an investment destination in Southeast Asia, Indonesia has many great business opportunities to offer.
Indonesia is the world’s largest island state on an area of 1.9 million square kilometers. With a population of 260 million, Indonesia is the world’s fourth most populous nation in the world. The country has become a high potential market for foreign companies and already a major business and investment destination in Southeast Asia.
Like every other country in the world, Indonesia was hit hard by the Corona Pandemic. Favorably, the nation has come through the crisis much better than any other member of ASEAN, except for Vietnam, and many industries are on the up again. Besides it has seen enormous increases in prosperity over the past two decades with its current GDP counted around 4000 US dollars. Therefore, many foreign investors are looking for emerging business opportunities in Indonesia.
- ICT & Digital Economy
Indonesia is entering the era of the industrial internet since the country has one of the highest numbers of internet users in the world. As of December 2019, 171.26 million out of the country’s total population of over 270 million were active internet users. This momentum provides opportunities for businesses to thrive in the ICT and Digital Economy sectors including IT, software, and telecommunications in the form of direct investment, partnership ventures, technology export, consulting, and training.
- Manufacturing
Indonesia’s manufacturing industry is the strongest component of its economic growth which contributes around 20% to the country’s GDP in 2019. This sector is increasingly more growth since the country was chosen to be the partner country of the biggest industrial fair “Hannover Messe 2021”, bringing the initiative “Making Indonesia 4.0”.
- Construction
The construction sector in Indonesia has been a growth driver in the last few years due to its rapidly urbanizing population. This sector’s condition is enough solid and the government has a strong commitment to providing infrastructure that can be seen through the revealed government’s spending budget in infrastructure in 2021 which will be in the IDR 417 Tn mark – still higher than the budget at the pre-pandemic level. The ongoing COVID-19 vaccination program should further provide optimism among investors anticipating a return to normalcy in the country’s construction sector.
- Energy Efficiency in Industry
The positive economic development of the last few years can be seen among other things can be traced back to a prosperous industrial sector. Despite the steadily increasing energy demand associated with the economic rise, the industry has hardly taken any energy-saving measures, which is why there is a great need for energy efficiency technology. The Indonesian Ministry of Energy forecasts for the industries of petro-chemical (17%), food (15%), steel (32%), textiles (35%), pulp and paper (20%) and cement (22%) considerable maximum savings potential.
Indonesia offers excellent opportunities for the sale of energy efficiency technology to industrial companies due to the size of the Indonesian economy and the considerable savings potential. The economic strength and potential for saving more than outweigh the risks and disadvantages of the Indonesian market.
- Health & Medical
Healthcare is indeed a priority in Indonesia’s national development agenda, especially amidst the corona pandemic. Thus service providers, medical device manufacturers/distributors, pharmaceutical companies, and medical technology firms have a solid opportunity to tap a large market while assisting the nation to improve its healthcare system. Indonesia’s large population and consistent economic growth present excellent opportunities for foreign companies. For now, the country will remain heavily reliant on imports to meet the demands for equipment in its fast-growing healthcare sector and the Indonesian market will continue to grow with little competition from local manufacturers.
