Indonesia is currently the 18th-largest economy in the world and the biggest economy in Southeast Asia region, reaching USD 1.016 bullion gross domestic product recorded in 2018, and is expected to grow by 5.3% by 2030. The diverse archipelago nation of more than 300 ethnic groups has an impressive economic growth, notably after the Asian financial crisis of the late 1990s, and has made enormous gains in poverty reduction, cutting more than half since 1999 to 9.8% in 2018. Moreover, the country has seen massive infrastructure development, tax reforms, as well as bureaucratic reforms during President Joko Widodo’s administration, positioning Indonesia to the rank 73rd of World’s Bank Ease of Doing Business in 2019.
Indonesia, home to more than 260 million population, is the fourth-largest country in terms of population size. The country’s economic outlook continues to be seen as positive, with domestic demand being the main driver of growth, backed by robust investment, stable inflation, as well as a strong job market. Its large population poses an excessively attractive customer base for businesses, as local and foreign companies enjoy its open environment to grab the local market.
Recognized as a member of G-20 and emerging middle-income country, Indonesia provides various opportunities for businesses to enter, grow, and expand. It is a country that contains great economic potential, with a number of characteristics that put the country in a great position for newly advanced economic development. Abundant and diverse natural resources, young large and burgeoning population with rapidly expanding middle class, political stability, prudent fiscal management, strategic location, as well as low labor costs are among Indonesia’s strengths.
The country is a market economy in which the state-owned enterprises (SOEs) and large private business groups play significant role and dominate the economy. But most importantly, Indonesia’s micro, small and medium enterprises, accounting for 99% of the total amount of active enterprises in Indonesia, also play significant role and is seen to be the backbone of the Indonesian economy.
Adding to that, the government has also given strong supports to cut Indonesia’s reliance on raw commodity exports in recent years. The industrial sector currently contributes most to the country’s annual GDP growth, with mining and manufacturing are two most important sub-sectors. The country is now making the strategy to raise the role of the manufacturing industry within its economy. According to the report from United Nations Industrial Development Organization (UNDO), Indonesia placed ninth in manufacturing value added, placed higher than other ASEAN countries.
The Ministry of Industry has also released the plan of “Making Indonesia 4.0” to upgrade five manufacturing sectors and make Indonesia as one of the world’s 10 biggest economies by 2030. Through this plan, the country is planning to develop several sectors, including food and beverage, textile and garment, automotive, chemical and electronic industries. The development is to be achieved through efficiency enhancements, improved public transportation, as well as the use of technology, such as artificial intelligence, robotics and the internet of things. The successful implementation of this plan is expected to drive Indonesia’s GDP growth to 6-7% in the period of 2018-2030.
Market Research Indonesia is a growth strategy and innovation marketing consultancy, which focuses on Indonesia and the Southeast Asia region. Our team of consultants will help clients in entering and also winning the Indonesian market. We help our clients to grow their businesses and understand Indonesian economic landscape through comprehensive market entry and growth strategy services in the provided B2B Indonesia market research and strategy recommendations. The team of Market Research Indonesia is acknowledged to be very hands-on in interpreting, analyzing, and strategizing based on solid Indonesia Market Intelligence. Through the implementation of this approach, we managed to earn many client recommendations as well as repeat engagement rate over 90%.
To support the Southeast Asia market growth expansion strategies of our clients’ businesses, Market Research Indonesia performs research and provides clients with insights and roadmap to capture a profitable market share in the region. Our team always uses the data that are obtained from hard-driven facts through our primary research methods, analysis from the actual market trends and industry perspectives, and also value chain partner opinions to subsequently derive marketing strategies and competitive intelligence for our clients so they can effectively compete in the Indonesian market. Our strong presence in the country guarantees in-depth market research that is able to help your business gaining revenues in Indonesian market.
Market Research Indonesia has offered services in Indonesia that help our clients comprehend the market landscape, size the market, assess industries, identify and profile competitors, analyze supply chains, locate production sites, segment customers and distribution channels, determine investment feasibility, and find local suppliers. The provided services will put our clients on the path to growth and profitability in Indonesia.