Indonesia Industry

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Chapter | Industry from The Report: Indonesia 2019

With the largest land mass, population and economy in South-east Asia, Indonesia is set on becoming the region’s industrial powerhouse. A historical reliance on natural resources has left its industry lagging behind that of regional peers Thailand, Malaysia and Vietnam in terms of exports, even as the country continues to clock robust GDP growth. Excessive bureaucracy and protectionist...

The Indonesian economy had a strong year in 2018, with growth of 5.2% marking the fastest pace in half a decade. This came on the back of robust domestic consumption, increased foreign investment and continuing efforts to reform policy and simplify investment procedures, and despite challenges including a falling rupiah, a trade imbalance and global political issues.

How do you evaluate the regional and global competitiveness of Indonesian textile and garment manufacturers?

Rising domestic and international demand is driving new investment in Indonesia’s automotive industry, with increases in both manufacturing and materials capacity to boost the sector’s growth prospects.

Indonesia is looking to utilise advancements in modern technology to spur growth and improve competitiveness in the industrial sector, with the government unveiling a new plan aimed at increasing manufacturing output.

 

While China’s decision to reduce coal production has pushed up prices more quickly than expected, local demand for coal in Indonesia continues to rise on the back of ambitious power generation targets. While the coal mining sector still holds much promise for the nation, a lack of coordination between the central and regional governments has...

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