Market Studies

Due to its vast cultural, linguistic, and income gaps, Indonesia's business environment, driven by a strong economy and diversified consumer market, requires thorough market research. Digitalization and e-commerce expansion show the sector's potential.

Primary Reasons For

Investing in Indonesia

Heading into 2020 and before the COVID-19 pandemic, the Indonesian economy was sustaining growth rates hovering around 5% a year. McKinsey analysts suggest that, with focused effort, Indonesia has the potential to become the world’s seventh-largest economy within a decade of recovering from the pandemic.

The government’s conservative fiscal and monetary policies have kept the national debt relatively low at 29 percent of national GDP. Inflation rates are also still within the Central Bank’s target range, keeping Indonesia’s economic outlook stable and manageable.
Growing Consumer Market

Indonesia's 270+ million population and growing middle class fuel a strong consumer market, driving demand for diverse goods and services. This presents abundant opportunities for businesses in sectors like retail, technology, healthcare, and education.

Digital Economy Potential

Indonesia's digital economy thrives in Southeast Asia, particularly in e-commerce, ride-hailing, and fintech. Growing internet and smartphone usage offer businesses in the digital sector a prime opportunity to capitalize on this expanding market.

Strategic Location and Natural Resources

Indonesia's prime location in the Asia-Pacific region grants it a pivotal role in global trade. The nation's vast reserves of coal, minerals, palm oil, and natural gas create a favorable environment for industries such as mining, agriculture, and energy.

rating agency

The Potential Growth

and Performance of

Indonesia's Economy

In February 2020, Moody's reaffirmed Indonesia's Baa2 credit rating with stable outlook, supported by strong growth, low government debt, and fiscal discipline. In April 2020, Standard & Poor's rated Indonesia BBB with a negative outlook, while Fitch maintained a BBB rating with a stable outlook.

Indonesia's growing economy positions it as a prime foreign direct investment (FDI) destination. With a young workforce, stable inflation, and robust economic growth, it experiences a favorable "sweet spot" for consumer spending. Its resilience during the global financial crisis sets it apart from other G20 economies.
future development

The 10 New Balis

Indonesia's "10 New Bali" project aims to transform 10 destinations into sought-after tourist hotspots, following Bali's success. Notable locations like Borobudur, Labuan Bajo, and Lake Toba are being upgraded to meet global standards, enhancing their appeal for travelers worldwide.

The government's strategic investment in infrastructure focuses on improving accessibility and amenities in these emerging tourist destinations. This initiative stimulates both local and foreign investment, as Indonesia seeks to create vibrant and attractive locations that offer unique experiences to visitors.

Indonesia's Political Landscape:

Navigating a Dynamic Democracy

Since the uprising of 1998, which resulted in the fall of General Suharto after 30 years of authoritarian control and the collapse of the Rupiah, Indonesia has undergone a political transformation.

The 2014 election of Joko "Jokowi" Widodo was met with tremendous optimism, as it represented the emergence of a new type of politician within the young democracy. As the son of a wood merchant and a furniture maker, Jokowi is often regarded as a man of the people and in contact with ordinary Indonesians.

In the 2020-2024 Medium-Term National Development Plan (RPJMN), the government offers foreign investors the chance to engage and participate in the development of sustainable infrastructure in Indonesia. The Indonesian government is making significant efforts to ensure that foreign investors have ample opportunities to increase their investment opportunities in the country.

New Reforms Implemented

Indonesia's infrastructure development centers around connectivity, crucial for economic growth in a nation of 17,000 islands. The focus on connectivity demonstrates a strong commitment to fostering tourism and overall economic expansion across the archipelago.

Indonesia's government implements 13 economic policy packages, streamlining business establishment, permits, and reducing administrative costs. Measures supporting small and medium-sized businesses, along with fiscal incentives, aim to attract investments and foster economic growth.

Jokowi's economic reform includes allowing increased foreign ownership, creating more investment opportunities. Revised regulations enable foreign investors to purchase and develop property in Indonesia without a local nominee, promoting foreign investment and economic growth.

Indonesia Political Stability index
(-2.5 weak; 2.5 strong)

For that indicator, The World Bank provides data for Indonesia from 1996 to 2019. The average value for Indonesia during that period was -1.05 points with a minimum of -2.09 points in 2003 and a maximum of -0.37 points in 2016.

Ease of Doing Business Index

Indonesia is ranked 73 among 190 economies in the ‘Ease of Doing Business’, according to the latest World Bank annual ratings. The rank of Indonesia remained unchanged at 73 in 2020 from 73 in 2019. The Ease of Doing Business index ranks countries against each other based on how the regulatory environment is conducive to business operations.

Prosperity Index

According to the Legatum Prosperity Index 2019, Indonesia performs best on Social Capital and Economic Quality and scores lowest on Living Conditions.The biggest positive change, compared to last year, came in Social Capital.

Indonesia's Political Stability

Reigns Unshakeable

In Southeast Asia, Indonesia has the greatest economy. Indonesia outperformed its regional allies and joined China and India as the only G20 members experiencing growth. The annual budget deficit in Indonesia is limited at 3% of GDP, and the government has reduced its debt-to-GDP ratio from a high of 100% shortly after the Asian financial crisis in 1999 to 34% today. The World Bank's most recent 'Ease of Doing Business' index ranks it 73rd out of 190 economies.

An Opportunity for

Foreign Investment

in Indonesia

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