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About Business in Indonesia

Indonesia is expected to become the 8th largest economy in the world before 2030, or the 4th largest if taking into account purchasing power parity. With around 260 million inhabitants, a middleclass expected to increase to 141 million before 2020 and continuing growth rates of around 5-6 per cent over the last ten years, Indonesia represents a huge potential for Danish companies.

ASEAN, with Indonesia as the largest player, continues to evolve and improve and the strengthened cooperation between the member states has had and will continuously have a positive effect on the region's economic situation.

A continuously growing economy and greater wealth among consumers combined with the Government’s 20-year development plan, spanning from 2005 to 2025, which targets education, health, infrastructure, business investments, energy, food security, and culture and technological innovation, exhibit that the demand for new and better products and solutions is vast. Further, there is a continuously increasing demand for smart, efficient and sustainable solutions to secure inclusive and sustainable economic growth for the present as well as for future generations.

Danish solutions, technologies and products are largely aligned with the Indonesian government’s priorities. Thus, Danish companies and institutions, expertise and technology are particularly well equipped to address the challenges and demands that exist in Indonesia and especially in the following sectors:

  • Cleantech – environment, waste, water, green growth, renewable energy and energy efficiency
  • Food industry and technology
  • Infrastructure
  • Education
  • Design and lifestyle
  • Health and life sciences
  • Maritime
  • Defence industry

Indonesia is a member of the WTO, however, a foreign company can expect to encounter trade barriers and general market barriers such as:

  • Barriers in connection to the culture and language
  • Bureaucracy
  • Difficulties in finding the right partner
  • Intellectual Property Rights (IPR)
  • Technical barriers
  • Infrastructure

These areas are under continuous change and incentives are constantly enforced to improve the situation. The commercial department has an extensive insight into what issues you might face as a company and is able to assist you in relation to market opportunities.