Doing Business In Indonesia

After three centuries of colonization by the Dutch, Indonesia got its independence in 1949. Indonesia has undergone rapid economic growth the past 50 years. It is the third largest economy in the world and the largest in South East Asia.

Due to its strategic geographical location and a booming economy, this country has a lot of advantage as a host to business ventures. Doing business in Indonesia will help entrepreneurs to take full advantage of the benefits of a growing middle and upper middle class purchasing power.


Here are 2 important reasons why you should consider doing business in Indonesia.

Geographical Location 

Indonesia borders the countries of Australia, Malaysia, Papua New Guinea, Singapore and the Philippines, all growing emerging markets ripe for international investment. It has one of the world’s largest waterways making it great for marine centered ventures such as transportation. This will be ideal for travelling in and around its 17,508 islands

Situated in the South East, consisting of 17,508 islands, Indonesia is the fourth most populated country in the world, and consists of the largest population of Muslims in any particular country in the world. Indonesia is an archipelago with the Indian Ocean located on the West side and Pacific Ocean on the East. Indonesia ranks 5th on the list of countries in the world with the largest waterways, which makes it a consummate place for conducting business.

Booming Economy

Under President Suharto, Indonesia has seen rapid economic growth from the early 80s to the mid 90s. However, the Asian Financial Crisis took a great toll on the Indonesian economy, but it has since rebounded into South East Asias largest economy and is part of the G20 group of Nations. Indonesia’s main trading partners are The United States, China, Japan, and Singapore.

Indonesia like most developing countries have had a problem with corruption. This has been a stumbling block for potential investors in the past. However, after the first democratic elections were carried out which ushered in Susilo Bombang Yudhoyono as president, this new regime was determined to fight corruption at all levels. This has had rather positive results as this anti-corruption campaign is very comprehensive.There are providers of intercultural training courses that could help you understand the nuances of doing business in Indonesia.

Indonesia’s economy marked the weakest in five years, which was affected by a slowdown in private and public spending and lowered exports. In January 2015, Indonesia posted the highest trade surplus in ten months as imports declined much quicker than exports. On February 13th 2015, the government passed the revised 2015 budget that calls for IDR 1,984 trillion in spending and IDR 1,761 trillion in revenue, resulting in a 1.9% fiscal deficit.

We hope you found this article useful. Please let us know if you have any comments or questions below.

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