Maritime and Defence

The maritime sector became a core focus to make Indonesia a Global Maritime Axis, given the country’s strategic position in global sea trade, situated as it is on a crossroads between the Pacific and Indian Oceans, bridging 2 continents: Asia and Oceania.

Current estimates put the total population at over 260 million, the world’s 4th largest. Approximately 141 million of whom belong to the Middle-Class and Affluent Consumer (MAC) by 2024, opening up market opportunities for European companies, especially in view of an annual average of a 5.29 per cent of GDP growth during the past 20 years.

Indonesia’s logistics sector has long been one with great potential for growth. As Indonesia’s competitiveness grows, so does its rate of exports, which enables logistics services to operate more. 2018 Logistics Performance rank Indonesia at 46th globally

The growth of the sector is prevalent across the ASEAN region, aided by further economic integration and growth between the emerging economies. The Indonesian Government continues to work upon reform efforts conducted through formerly introduced deregulation packages, as well as development of upcoming Omnibus Laws.

The government is looking at boosting the economies competitiveness within the ASEAN and enhancing connectivity, in anticipation of keeping to the target of 5.1% annual GDP growth.

Advances towards infrastructure development and simplification of customs procedures could further streamline processes for exporters, importers, and logistics companies. Further planned online systems may assist the sector further.