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

27 Strategic ports across 13 districs, forming the backbone of its regional transport infrastructure.

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