Indonesia Industry

Chapter | Industry from The Report: Indonesia 2020

With the largest land mass, population and economy in South-east Asia, Indonesia has considerable potential to become the region’s industrial powerhouse. Nevertheless, with...

Indonesia is the world’s 16th-largest economy and presents an enticing opportunity for investors, with ongoing reform efforts and attractive demographics. Meanwhile, a booming start-up ecosystem signals the country’s rising consumer power and regional influence. While headwinds are expected to follow Covid-19, Indonesia’s strong foundations will help maintain momentum in the medium to long term.

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Indonesia has taken another step forward in its quest to become a leading electric vehicle (EV) player, with the world’s two largest producers of EV batteries recently announcing major projects in the country. However, the developments highlight the paradoxical centrality of carbon-intensive mining to EV production, despite hopes that the EV production process could be further decarbonised.

Investors, regulators and consumers around the globe are increasing their focus on environmental, social and governance (ESG) principles as they seek products and services that protect the environment, mitigate social risk and offer positive returns for stakeholders. 

 

What is being done to boost the export capacity of small and medium-sized enterprises (SMEs)?

 

What can be done to boost the position of Indonesian manufacturing within the region?

 

As globalisation has increased, the world’s supply chains have become substantially more interconnected. Moreover, as emerging market economies have steadily come to account for a greater proportion of global GDP, goods often have more stages to pass through before reaching the end consumer. From national lockdowns to closed airspace and...

 

With the largest land mass, population and economy in South-east Asia, Indonesia has considerable potential to become the region’s industrial powerhouse. Nevertheless, with a development model traditionally reliant on the export of natural resources rather than processed goods, the Indonesian industrial sector remains below its potential....

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