Indonesia represents, at today, the fastest growing country in the World, with an expected GDP raising by 7,2% in 2019. It is currently the 16th economy globally and could reach the fourth position in the next 30 years.
The strength of the Indonesian economy is based on some focal points, such as:
- Rapid demographic growth: current population 250 millions, growing by around 4,5 millions per year
- High percentage of people of working age
- Political stability (gained only in 1998)
- Wealth of natural resources
Especially thanks to the natural resources the country’s economy is blossoming, so that it became the first global producer and exporter of palm oil, second exporter of coal and fourth for natural gas.
The opportunities for corporates in Indonesia
Italy is currently the third European commercial partner for Jakarta, with an exchange of about 2,96 billion dollars in 2016. Italy imports mostly raw materials, especially palm oil and coal, while exports are focused on capital goods (50% of the total), chemicals and building materials.
There are great opportunities for corporates (check out all the associated companies here), especially in the machinery field, considering the attention of the government for the economical development of the country. Even automotive is an interesting field, both for exports and FDI (foreign direct investments), considering that most of the production is destined to local markets.
In general, Indonesia imports: machinery and boilers; fuels; electrical and electronic equipment.
Nevertheless, there are some also some critical issues in the country among which stand out the excess of bureaucracy and uncertain regulations; the lack of infrastructure implying high logistic costs and a poor corporate culture. These factors mean that an entrepreneur must invest a lot of time and above all must have a well-defined strategy.
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