OCTOBER 2017 FEATURE:

Indonesia is on track to become the world’s 7th largest economy by 2030, according to an IE Singapore paper.

With a market size of 250 million, a growing middle class and young labour force, it is also the largest economy in the Southeast Asia region. Thanks to a series of reforms by President Jokowi to improve the country’s investment environment, Indonesia had climbed 15 ranks from #106 to #91 on the World Bank’s Doing Business report in 2017.

The appeal of emerging markets such as Indonesia for business investments has increased tremendously with the slowdown of economies in developed nations. West Indonesia is a favourite with business owners but the real key to tap Indonesia’s full potential is to develop the markets in regions such as Central and East Indonesia. In lieu of an official definition, Central Indonesia refers to Central Java, DI Yogyakarta, East Java, Bali while East Indonesia refers to Kalimantan, Sulawesi, Nusa Tenggara, Maluku and Papua.

Opportunities abound in the Resources, Infrastructure and Manufacturing (R.I.M.) sectors and its geographical proximity coupled with first-mover advantage puts the country in a good stead compared to non-ASEAN competitors.

Businesses seeking sustainable growth would however need a long-term view for their investments in this region. Investors can take heart that the government has pledged to address the economic disparities and to prioritise the development of Indonesia’s rural areas via one of nine priorities in Jokowi’s National Medium Term Development Plan (Nawacita) 2015 – 2019. Preferential policies for businesses in less industrially developed regions have already been introduced such as the five Special Economic Zones (SEZs) being set up in East Indonesia.

The Indonesia Chamber of Commerce (KADIN) has also got into the act with the installation of the East Indonesia Development Fund (PT Investasi Indonesia Trust) in 2015. The main objective is to solicit funding and investments to accelerate development in East Indonesia, especially in the energy, infrastructure, food, maritime and fisheries and finance sectors.

The encouraging business landscape has also prompted SFIC to organise a Singapore Pavilion at INDEX Indonesia this year. INDEX Indonesia 2017 with leading events such as Mozaik, Jakarta’s leading homeware exhibition. The collaboration leverage on INDEX’s 27 years of international experience and relationships with Mozaik’s expert local knowledge and partnerships to create the only exhibition which specifically focuses on interior design, home furnishings, residential, commercial, fit-out, and gift industries in South East Asia.

A first for the council, five SFIC member companies are participating in the fair. They are 4321 Design Pte Ltd, C&R Interiors Pte Ltd, Golden Abundance Enterprise, Office Planner Pte Ltd and TraDesk Pte Ltd.

Over 200 interior and fit-out suppliers will have unique access to a mix of about 6,000 regional and international architects, designers, retailers, wholesalers, product specifiers and procurement specialists responsible for the commercial, retail, residential and hospitality sectors in this rapidly developing market. INDEX Indonesia is ideal for suppliers and manufacturers looking to capitalise on the huge domestic demand from Indonesia.

Click here to download our Index Indonesia 207 brochure.

Schedule an appointment with the participating companies via our Business Matching Service form here