Indonesia - Export Britain

Export Britain

Indonesia

Find support in this market.

Capital
Jakarta

Largest city
Jakarta

Administrative divisions
34 provinces

Currency
Rupiah (Rp)

Area
1,904,569 km2

Population
(2012) 237,424,363

Calling code
+62

Official language
Indonesian

Latest Business Opportunities

See more opportunities for Indonesia.

Ease of trading across borders

Importing a standard container of goods into Indonesia requires:

7documents
23days
£407

Introduction

Indonesia has the largest economy in Southeast Asia and is one of the emerging market economies of the world. In 2012, Indonesia edged out India to emerge as second fastest G-20 major economy just behind China. Indonesia has undertaken wide-ranging reforms to address various structural weaknesses and improve competitiveness. Recent reform measures have put greater emphasis on improving regulatory efficiency, enhancing regional competitiveness, and creating a more vibrant private sector.

Economic snapshot (% annual growth rate)

201120122013-16
GDP 6.5 6.2 5.6
Export of goods and services 13.6 2 8.1
Import of goods and services 13.3 6.6 8.3
Inflation - - -
Short-term interest rates (%) - - -
Exchange rate (per £) - - -
Population 1.1 1 0.9
Unit labour cost -7 -3 0.3
Source: Oxford Economics

Economic outlook

In 2012, the Indonesian economy slowed down to a 6.2% GDP growth due to weak export figures due to depressed global demand and a slowdown in domestic consumption. The country's first annual trade deficit of $1.6 billion USD (Statistics Indonesia) also put pressure on the Rupiah causing a 6% slide, making it the worst performing Asian emerging market currency in 2012. The core pillars of economic growth are relatively sound fiscal and macro-prudential management, political stability, a growing middle class and vast natural resources.

Trade outlook

Indonesia’s intra-regional trade has picked up strongly in recent months, but exports to China, the US and the EU have continued to fall. Trade within Asia will be Indonesia’s fastest growing source of growth. China, India and become prominent trade partners overtaking Japan does. Exports to the Middle East and North Africa region are also expected to witness solid growth. Indonesia import needs will rise rapidly, both in terms of capital goods for infrastructure and consumer products for the domestic market. Vietnam and India will be Indonesia’s fastest growing import partners.


SWOT analysis

Strengths
Low public and external debt levels
Weaknesses
Infrastructure bottlenecks
Opportunities
Urbanisation
Rapidly growing productive population
Threats
Weakening currency
Inflation

Indonesia's trade with the UK

Sector segmentation growth

Sectors to watch:
  • food 
  • electronic components & boards
Manufacturing
  • repair & installation of machinery, 
  • soaps, detergents etc 
  • utilities.

Fastest-growing exporters into Indonesia

Rank2012
1 Mexico
2 India
3 Egypt
4 China
5 Korea
6 Vietnam
7 UAE
8 Malaysia
9 -
10 -

Total merchandise trade - Leading import partners

Total merchandise trade - leading import partners
Opportunities for UK businesses

The recent trend of increased foreign business interests in Indonesia is likely to continue. The government’s ambitious economic master plan, which aims to increase connectivity across the country through infrastructure development, provides opportunities for UK businesses. Important opportunities exist in mining and agribusiness equipment and services, telecommunications, education and professional training, research, medical equipment and construction.

Find support in this market.

Your local Chamber provides a range of export services and links to overseas markets.
Find your local Chamber here.

View the Cathay Pacific partner page View the Control Risks partner page View the DHL Express partner page View the Experian partner page View the UK Export Finance partner page