On September 19, 2017, our Manufacturing Industry Team proudly hosted an informal market briefing on export opportunities in Indonesia with Andrew Billard, commercial attaché at the U.S. Embassy Jakarta. Presented by the U.S. Commercial Service Connecticut office, the program offered insight into the Indonesian market, Southeast Asia’s largest economy, and provided an overview of export opportunities. In addition, Mr. Billard met with attendees to discuss their company’s market potential in Indonesia.
Thank you to both Andrew and Melissa for an outstanding program!
Indonesia ranks 8th in the world based on purchasing power parity, and averaging over 5% growth over the last decade. Growth is projected by the IMF to reach 5.1% for 2017 due to strong private consumption. President Joko Widodo (known as “Jokowi”) took office in October 2014 and has pledged to improve infrastructure, diversify the economy, and reduce barriers to doing business in Indonesia as a means of increasing economic growth.
More background on the Indonesian market is available in the Country Commercial Guide.
MARKET OPPORTUNITIES: A SNAPSHOT
- Consumer-related market opportunities continue to lead growth in the world’s fourth- largest country, and expansion in the retail, health, education, telecom and financial services sector have boomed in the last few years. The Indonesian consumer is ranked as one of the most confident in the world, and 50% of Indonesia’s 255 million citizens are under the age of 30.
- Indonesia’s aviation market is growing at 20% per year and favors U.S. products. Aircraft replacement parts and services are a valuable and significant market. There is also demand for air traffic control and airport logistics services and ground support equipment.
- Indonesia’s under-developed public infrastructure remains a major national challenge and could present significant opportunities in aviation, rail, ports and land transport, as well as in municipal infrastructure projects such as water supply and wastewater systems.
- As the Indonesian military expands its budget, there are opportunities for U.S. defense manufacturers to sell a range of military aircraft, vehicles, communications systems, spare parts, and maintenance services. Monitoring and protection of sea-borne traffic for both national security and fisheries enforcement presents new opportunities.
- Important opportunities outside of Jakarta remain in energy and electricity transmission services. The Government of Indonesia has announced its intention to increase electricity generation by 35,000 MW by 2019. It is not going to meet that goal, but growth in power generation projects, conventional and renewable, and including Independent Power Producers, is expected to continue for the next decade.