Indonesia

The INBC is a non-profit organization, dedicated to serving its members, the Indonesia Norway business community. Our members range from a small, independent or family-owned business and local chambers to leading industry associations and large corporations.
We understand that doing business in Indonesia has its unique challenge to conduct business. The country was ranked 109th in the World Bank’s Doing Business 2016 index. That is why we are here to help and support you the importance of having good network and making efforts to develop as well as maintaining the connection with the Indonesian business and government circles.

We connect between Indonesia and Norway Company’s representative by providing information regularly on business in Indonesia, business meetings to learn and discuss to improve business in Indonesia and organize social evening event for member to enjoy meeting each other and extend their networking line.

Sub Overview

EASE OF DOING BUSINESS

Indonesia has the fourth largest population in the world with a population of around 250 million.

Indonesia has interesting and large market opportunities in several sectors for Norwegian businesses. Among them the energy sector is the most central, and a number of Norwegian companies are in this particular field in the world lead,

The Chamber identifies challenges and opportunities in doing business in Indonesia, seeking support from Indonesian Government policies

Jakarta has proclaimed a “Blue Revolution”, an initiative launched in 2010 with the aim of boosting sales to global markets. Norway is currently are looking into increasing their sales in Indonesia, though at a total of $412 million in 2012, Indonesian imports are only a fraction of its exports.

Norway Investment in Indonesia

The chamber office is co-located with Innovation Norway‘s representative office in Jakarta’s central business district and also works closely with the Royal Norwegian Embassy as part of Team Norway.

The Norwegian Government and Innovation Norway will assist Norwegian energy companies to access a rapid growing market.

 

DOING BUSINESS

As the fourth most populous country in the world, Indonesia has been supported by good political and economic stability. The country’s large domestic market has offer a wide range of investment opportunities for foreign and domestic investors.

With a target economic growth range between 5.0-5.4% for the coming years, there are substantial priorities for the government of Indonesia to attract more foreign investment to reach the country’s investment target.

 

Investment Procedure

Further information can be obtained from the Indonesia Investment Coordinating Board website.

Further information on How To Do Business in Indonesia can be accessed from the Norway Embassy.

 

ESSENTIAL INFORMATION

Indonesia in General

Indonesia a vast archipelago comprising more than 17,000 islands of which six main islands: Sumatra, Java, Bali,Sulawesi, Kalimantan and Papua – contains a population numbering around 255 million people; a number that makes Indonesia the fourth most populous country in the world. These impressive numbers also imply that significant cultural, ethnic, religious and linguistic diversity can expected to be found within its boundaries, ranging from the daily Hindu rituals practiced on the island of Bali to the prevalence of Islamic sharia law in Aceh (Sumatra) or the semi-nomadic hunter-gatherer lifestyles of the Mentawai people.

The national language is Bahasa Indonesia. English is commonly used and understood in the big cities and across business communities.

Java is the most congested, developed and industrialised island. It is the centre of manufacturing activities, whilst Sumatra is dominated by agribusiness. East Indonesia (Kalimantan onwards) is the resources frontier.

Indonesia’s capital city is Jakarta, situated in Java. Jakarta is the headquarters of all governmental institutions, both domestic and foreign business, multinational and premium education or organisations.

 

Economic Overview

Indonesia is the emerging global power house of South East Asia, accounting for nearly 50% of the GDP of the region and having its own GDP growth consistently averaging around 6%. The Economist describes Indonesia as ‘The World’s Most Stable Economy in the Last Five Years.’

Strong domestic demand and particularly private consumption are two key drivers of Indonesia’s economic growth. With around 45 million people in the consuming class.

By2030, The McKinsey Global Institute (MGI) predicts Indonesia’s urban population could reach 71% of the total population, up from the current 53%, and contribute 86% of GDP.

Most cities outside of Jakarta that have apopulation of more than 150,000 are forecasted to grow at a much faster rate (more than 6%), cities with a population between 5 to 10 million people are forecast to grow the fastest(at 9.1%).

This growing population size means that domestic consumption or demand for products will increase significantly along with people’s purchasing power due to better economic circumstances. This condition inevitably will result in the growing potential for manufacturing companies or industries to cater for this increased demand.