PATHWAYS TO PROSPERITY
Investing in Indonesia
Indonesia is growing to stand as one of the main investment destinations for international players. There are a few factors that attract potential investors to invest in the country. Firstly, Indonesia is the largest economy in the Southeast Asia region with high economic growth; the country was expected to experience a 5% economic growth in 2023 and 2024 consecutively. In Asia, Indonesia also boasts a USD 1.3 trillion GDP and continues to climb. This growth is supported by rising domestic consumption, and strong performance in manufacturing and services.
KEY CONSIDERATIONS
An Overview of Indonesia’s Investment Landscape
Huge Market Size & Strong Economic Growth
- Largest economy in ASEAN with GDP surpassing USD 1.4 trillion.
- Consistent growth trajectory averaging 5% annually over the past decade.
- Projected to be the world’s 4th largest economy by 2045.
Strong Natural Resources & Renewable Energy Potential
- One of the world’s largest producers of palm oil, nickel, coal, gas, and fisheries.
- Significant potential for solar, hydropower, geothermal, and green hydrogen supporting long-term sustainability
Demographic Dividend & Skilled Workforce
- Population 280+ million with a median age of 29.
- 950,000+ skilled workforce, access to large pool of skilled and semi-skilled talent supported by 17 vocational institutes and leading universities in Surabaya.
Strategic Location at the Heart of ASEAN
Positioned along the world’s busiest trade routes, connecting Asia, Australia, Middle East, and Europe.
Stable Political Environment & Pro-Investment Policies
Stable democratic governance with predictable macroeconomic policy direction.
STRATEGIC OUTLOOK
The Potential of East Java
Java has been a hub for trade since the 9th–10th century AD, with these activities shaping not just the island, but also the surrounding territories. It’s no surprise that it has become one of the main trade points in Southeast Asia. West Java remains one of the most popular regions for manufacturing industries. However, its popularity comes with challenges. Logistics are often hindered by heavy congestion.
Strategic Location
East Java, on the other hand, is brimming with potential, poising as Indonesia’s next economic hub. Its strategic location is backed by six major ports for inter-island shipping and efficient transportation networks that connect East Java to both established and emerging markets in the east. This infrastructure also supports a wide range of marine and fisheries industries, which are important towards
the region.
Strategic Ports
Key Advantages
- Easing pressure on West Java
- Reducing congestion and improving efficiency
- Lower operational costs
Future Outlook 2030: Strategic Opportunities in East Java
Agribusiness and Food Processing
Enhancing agricultural practices to boost regional food production and supply
Maritime and Fisheries
Expanding seafood processing by leveraging East Java’s coastal advantage
Fast Moving Consumer Goods (FMCG)
Scaling up production and supply chains for consumers in Eastern Indonesia
Mining and Mineral Processing
Supporting downstream mineral processing and refining activities linked to Eastern Indonesia.
Renewable Energy
Launching solar, wind, and bioenergy projects to meet national energy needs
Technology and Electronics
Driving innovation and manufacturing to support digital transformation
Heavy Equipment
Manufacturing and distribution to serve construction and mining in Sulawesi, Maluku, and Papua
Logistics
Developing ports, warehousing, and transportation for smoother goods movement
Special Chemicals
Strong potential to drive innovation in consumer goods to meet global demand
Defense
Supporting Indonesia’s military modernization through advanced manufacturing
Healthcare
Expanding infrastructure and high-tech medical devices to serve rising demand in Indonesia
