Indonesia Business & Political Environment

Why Indonesia

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    [en_description] => Following a year of economic volatility over the course of 2018, Indonesia's economy is predicted to remain weak in 2019. This is in line with the rising political tensions ahead of the general elections, the ongoing trade war between China and the US, and the prolonged rupiah depreciation. 
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Indonesia's 2019 Economic Outlook: Challenging Times amid Political Turbulence

Indonesia's economy is predicted to remain weak in 2019

Indonesia's 2018 Economic Outlook: Modest Optimism, Challenges Remain

After a disappointing 2017, it is predicted that the Indonesian economy will improve, albeit slightly in 2018. This in line with the expected improvement of the global economy as well as the projected increase in domestic demand and household consumption.

Indonesia’s Second Semester Economic Outlook: Focusing on Investments

Weak economic performance in the first semester of 2017 has forced the Indonesian government to be more creative in shaping its economic policy throughout the remainder of the year. That is why investment will play a crucial role in Indonesia’s economy in the second semester of 2017.

Indonesia’s Economic Outlook in 2017: Remain Cautiously Optimistic

It is anticipated that Indonesia’s economic growth in 2017 is set to improve as the government’s economic policies begin to take effect on the economy. This should eventually attract more investment and boost the national economy.

Indonesia SMEs: Increased Government Support to Overcome Challenges

Indonesia’s Small and Medium Enterprises (SMEs) sector is currently grappling to overcome a host of tough new challenges. With the government now more determined than ever to push the growth of SMEs, the sector could be in a position to turn these challenges into exciting opportunities.

Indonesia’s Economic Outlook in 2016 and Beyond

Having weathered the worst of 2015, Indonesia entered 2016 with the expectation that the new year would offer a welcome reprieve to local industries under pressure. Despite what appeared to be positive momentum at the close of 2015, early results from this year suggest that Indonesia is not yet out of the woods.

Family Matters – A Guide to Family-Owned Businesses in Indonesia

Coinciding with a shift in the centre of modern business eastwards towards Asia, family-owned businesses stand to play an outsized role in future growth. In no market is the significance of understanding this type of business structure more apparent than in Indonesia, where 95% of local businesses are family-owned.

Indonesia Economic Outlook 2016 – Not at Mercy of Global Markets

Blaming global markets for economic woes at home has long been the hallmark of Indonesian policymakers when it comes to explaining less-than-favourable developments to the electorate. However, this defensive stance appears to be changing, which bodes well for the country’s economy in 2016.

Action Needed to Put Indonesia's Economy Back on Track

The fact that Indonesia largely has itself to blame for the slowdown is a good thing, for it means that the country is not at the mercy of fickle global markets, but that the government can take practical steps to reinvigorate the national economy.

Outlook: Indonesia's Economy in 2015

While the external environment will continue to have a profound impact on Indonesia's economy this year, only domestic structural reforms can secure the country's economic performance in the future.

Indonesia in 2015: Economic and Political Renewal Shifts Investment Focus

FDI in Indonesia has continued to grow strongly despite macroeconomic difficulties and political uncertainties. In the first three quarters of 2014, BKPM registered inbound FDI amounting to 228.3 trillion RP, up 14.6%.

Indonesia's Economic Potential: A Look Beyond Java

Supported by improving infrastructure, rising spending power and government incentives, regions outside of Java can outperform in terms of both investment and economic growth. Investors willing to look beyond the mainstays of Jakarta, West Java and Bali benefit from early-mover advantages.

New Government May Reinvigorate Indonesia's Investment Appeal

Public policies and statements by Joko Widodo could provide some clues as to where Indonesia is headed after the inauguration of the new administration in October 2014 and what it might mean for trade and investment.

Outlook: Indonesia’s Economy in 2014

In many ways, 2013 was a sobering experience for an economy that overflowed with self-confidence just two years earlier, and it begs the question as to what 2014 holds in store.

Why Indonesia

Indonesia’s economy is on the rise and thus seeing the country take its rightful position as a major destination for foreign direct investment. Having previously been overlooked in favour of other countries in Asia such as India and China; Indonesia is now hard to ignore.

Indonesia Snapshot

Capital: Jakarta
Population: 259 million (2016)
Currency: Indonesian Rupiah
Nominal GDP: $936 billion USD (IMF, 2016)
GDP Per Capita: $3,620 USD at Current Prices (IMF, 2016)
GDP Growth: 5.0% (2016)
External Debt: 36.80% of GDP (BI, Q2 2016)
Ease of Doing Business: 91/190 (WB, 2017)
Corruption Index: 90/176 (TI, 2016)