Indonesia in Brief – Part 1

By Brierley Penn

In part one of our focus on Indonesia, we take a look at the opportunities present for businesses in Indonesia. 

South East Asia is widely recognized as a booming region, illustrated by the strong annual GDP growth rates shown above. Indonesia’s 6.2% not only paced the region, but did so at a low 3.79% rate of inflation.

If Indonesia manages to meet or exceed projected GDP growth rate over the next few years, Indonesia will boast a considerable $1 Trillion USD economy. Currently there are 13 nations in the vaunted Trillion Dollar Club. Over the longer term, if Indonesia continues to grow as analysts predict, its economy should surpass both Germany and the UK by 2030.

Currently Indonesia is the fourth most populous country in the world. A significant portion of this population are young and thriving, with more than 50% aged under 30.

With the biggest middle class in South East Asia and the third largest globally, trailing only China and the United States, there is considerable opportunity for investment. In the foreseeable future, projected growth industries in Indonesia are lead by aviation, education, food & beverage, energy and technology.

Investors can feel more secure about their investments in Indonesia too, as S&P upgraded Indonesia’s sovereign rating to BB+ this year.

Check back for Part Two of Indonesia in Brief tomorrow, as we explore the challenges present to doing business in Indonesia.