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Hot growth markets in the spotlight: Indonesia-Whats in it for companies entering Indonesia - EY - Global

Hot growth markets in the spotlight: Indonesia

What's in it for companies entering Indonesia?

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If companies don't look at Indonesia as an investment destination, they're missing out on a great opportunity.

With flourishing global trade, a young population and burgeoning ranks of middle class consumers, Indonesia is an attractive candidate for both global and domestic companies looking to expand into new markets. Giuseppe Nicolosi, our Indonesia Country Managing Partner, offers key insights on the facets of the country that investors should be looking at.

Great market opportunity

"If a company doesn't look at Indonesia as a potential investment destination, I think they're missing out on a great opportunity," Nicolosi says. He notes that Indonesia has a strong domestic market as well as rich natural resources. For example, it is the world's largest producer of crude palm oil and a key global exporter of coal, cocoa, nickel, rubber, copper and gold. And with 26 million people entering the middle class of consumers every year, "you can imagine the opportunities that this country can create for foreign investors."




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Innovation and entrepreneurship

"There is plenty of room for entrepreneurial businesses of all types to flourish in Indonesia," says Nicolosi, adding that Indonesia is the second pilot country after Egypt selected by the US government to launch its Global Entrepreneurship Program. This initiative began in 2010 to support and empower entrepreneurs in several nations. While he cautions that policies favoring entrepreneurship are still "a work in progress," Nicolosi believes that it is high on the government's agenda.




Video on entrepreneurship/innovation in Indonesia

Talent

Nicolosi points to the fact that Indonesia is the largest economy in Southeast Asia, with 245 million people and with annual population growth of 1.5%, which represents "one new Singapore every year." He adds that a young and an increasingly skilled labor force (thanks to the government's growing emphasis on education) is another potential attraction for global investors.




Video about talent in Indonesia




"If you look at the GDP per capita on the basis of purchasing power parity, today Indonesia is about US$3,300 per capita. In 2016, it is projected to be US$6,000 per capita, which in the minds of many economists is the threshold to be reached for people to live a quality life."


Giuseppe Nicolosi, Country Managing Partner, Indonesia


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