Doing Business in Indonesia
Welcome to the Jakarta office of the Export to Group in Indonesia. Our business exists to help businesses like yours develop and prosper in this huge market. We offer market entry and ongoing support to international companies who have selected Indonesia as a target market for their products, services or technologies or as an entry point for sales to neighbouring markets. We also offer our Indonesia based clients assistance regarding investment and trade opportunities in other markets where we have a local presence and will match their sourcing needs with the appropriate products and services from the best possible suppliers around the globe. Indonesia's recent economic growth record, skilled workforce and geographical location as a prime hub for regional market access make it a hugely attractive destination for exporters with the right products or services to offer. Indonesian consumers are young, with 60% under 30 years of age, highly IT literate and interested in new international brands.
Export to Indonesia- a few facts and figures
With an estimated population approaching 250 million, a swelling middle class of around 45 million people and an economy soon expected to join the trillion dollar club, Indonesia’s economic potential is significant. Indonesia, already the largest economy in Southeast Asia, is projected to be the world’s 7th largest economy by 2030.
Over the past ten years, Indonesia’s GDP growth has averaged over 5.8 per cent a year, well above growth in the previous decade. In 2012, Indonesia’s GDP grew by 6.3 per cent. Growth of 5.8 per cent was experienced in 2013, following an expected slowdown in investments, and 5.4% forecast for 2014. Strong economic growth is helping the country reduce poverty levels — the World Bank reports that between 1999 and 2011, the national poverty rate fell from 23.4 per cent to 12.5 per cent. Indonesia has also invested in basic services, particularly education.
With Indonesia and Australia as the two largest economies in the region, there is considerable potential for international companies to take advantage of the size, proximity and complementary opportunities of the two markets.
Businesses planning to export to Indonesia should not underestimate some of the challenges they will face. Complex bureaucracy, uncertain and unpredictable legal and regulatory environment, lack of transparency in many aspects of business, high logistics costs, under developed infrastructure, and a business culture where companies will rarely respond to emails. Exporters should bear in mind that a strong business case is less important than being a trusted partner. All that said, with the local assistance of the Export to group Indonesia offers a lot of opportunities for companies in a wide range of sectors. However, companies looking for a ‘quick win’ would be advised to look elsewhere. This is a long term market with incredible potential, the rewards of doing business in Indonesia can be considerable. However it can take time to develop the necessary relationships before any financial returns materialise. Companies should recognise this and plan their business entry strategy accordingly.
Key sector opportunities can currently be identified as:-
Infrastructure, Agribusiness and food, Education and training, Healthcare, ICT and telecommunications,
Automotive and advanced manufacturing, Financial and business services, Mining and oil & gas.
To make the most of this intriguing market contact us today to discuss that best strategy for you and your business to be successful in Indonesia.
Export to Indonesia
Wisma Metropolitan I Level 3A – Suite 25, Jl. Jend. Sudirman Kav.2│ Jakarta 12920 - Indonesia