4 Business Opportunities Emerging in Indonesia
In Southeast Asia, Indonesia is known as one of the countries with the strongest economy. The country even ranks in the 16th place for the largest economy in the world! In the past ten years, Indonesia has experienced a steady growth of 5.8% GDP. It’s not exaggerating to say that Indonesia is projected to become the seventh strongest economy in the world by 2030.
No wonder that many people are looking for business opportunities in Indonesia. There are even a lot of foreign investors trying to expand their businesses to this country. But what kind of business sectors that are worth observing and exploring in Indonesia?
Indonesia’s e-Commerce scene is quite exciting to follow. Last year, with sales volumes reaching US$2.7 billion, the country’s online market transactions were the highest in Southeast Asia. In 2020, it’s projected that Indonesian e-Commerce market will be rallied close behind China and Indonesia with the estimation of US$1130 billion.
That’s why e-Commerce has become one of the promising business opportunities in Indonesia. Not to mention that more and more e-Commerce startups in Indonesia start to gain their fortune. As a nation of more than 17,000 islands across 34 provinces, Indonesia offers many options for traveling experience. In 2015, there were up to 10 million foreign tourists traveling to Indonesia, and the number keeps increasing over the years.
Besides, the Indonesian government has issued the visa-free regulation for foreign tourists from 169 countries. This has opened wide opportunities for travel industries to grow. The development of the tourism industry has become a lucrative business area, especially for foreign investors.
Did you know that since the 1970s, manufacturing has become one of the major pillars of Indonesia’s economy? Yes, some of you might remember that this industrial sector once lost its momentum after the Asian Crisis in the late 1990s.
However, in terms, if Foreign Direct Investment (FDI), until today manufacturing still becomes one of the most popular and promising business opportunities in Indonesia. Moreover, the Indonesian government has stated that they will provide support in terms of the permits, license, and even incentive provisions.
Since President Joko Widodo (Jokowi) took office in 2014, he has stated over and over again that infrastructure development has become one of the things he prioritized. In 2018, the Indonesian government is said to spend IDR 404 million on various infrastructure projects, including bridges, roads, airports, and power plants throughout Indonesia.
With better physical infrastructures, this opens a huge opportunity for investors to take part in the development. And as you might already know, good infrastructure can lead to Indonesia’s economic development acceleration, which also serves as another strong reason why infrastructure becomes an emerging business opportunity in Indonesia.
Over the years, Indonesia has faced different challenges to make developments in every sector. While there’s still a long way to go, the country keeps proving itself that everything is possible as long as you’re open to improvement. And that’s why there are so many business opportunities emerging in Indonesia, including these four sectors we have mentioned above.