Guide in doing international business in Indonesia

Indonesia is called the Emerald of the Equator for its sheer tropical beauty. Being a collection of about 18,000 islands and located in Asia, Indonesia is the world’s largest archipelago. The Indonesian government is a presidential representative democratic republic, whereby the president is both head of state and head of government.

Ranking 114th in the world in the ease of doing business, Indonesia imports goods and services worth approximately a quarter of its GDP.

While Indonesia is open to trade and foreign investment, business deals must follow proper due diligence process to ensure smooth sailing later. Enforcing of cursory contracts is not easy, and diligent pre-contract research is required to realize the vast International Business Potential that Indonesia offers.

Indonesia’s Vital Data (as of 2019)

Population (million) 270
GDP (billion USD) 1119
GDP per capita (USD) 4,136
GDP per capita PPP (USD) 12,335
Purchasing power per dollar, compared to the USA 301%
Surface area (sq km) 1,910,930
% of population living in urban areas 56%
% of GDP added by agriculture – industry – services 13% – 40% – 44%
Ease of doing business index (1 = best, 189 = lowest) 73

What are business opportunities in Indonesia?

With a multi-billion dollar international trade, the Indonesia international business sector offers several business opportunities. With regular trade fairs and business information updates, the Indonesian government and industry tries to provide a friendly environment for foreign business to explore business opportunities.

Where the action really is – international business and Indonesia

The top 5 imports into Indonesia are:

  • Oil
  • Machinery
  • Electronic Equipment
  • Iron and Steel
  • Plastics

What are Indonesia’s important events?

While Indonesia can be a great place with an international business culture for commercial opportunities, it is also a developing country. Income is distributed very unevenly and the people in Jakarta have the most spending power. Other big cities like Medan or Surabaja, or the touristic island of Bali follow. It is wise to start your commercial activities here. East-Java, South Sumatra and the other island have in general a poor population where only specific products would sell.

Diligent research, planning, and local partners are recommended to prevent complications later. Especially when dealing with the ‘grey’ economy in Indonesia with all its personal relationships and favours this is essential. Business agreements have to be well researched and thought out before being formalized.

Planning on doing international business in Indonesia brings you a shining opportunity. A professional partner and friend can collaborate with you to simplify business complexities and present solid opportunities for your growth and profit.

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