Indonesia market overview
Indonesia is the largest economy in Southeast Asia – key regional leader in South East Asia, with $5.3 trillion of global trade passing through South East Asia waters each year – and 14th largest economy in the world.
Indonesia is also the world’s fourth most populous country, with approximately half of Indonesia’s population of 269 million is under the age of 30.
It is a dynamic, emerging market predicted to be a global top 10 economy by 2030 – the 5th largest by some estimates – with the third-largest middle class in the world.
Indonesia’s economy will continue to evolve over the next few years into a modern economic powerhouse.
Drivers of demand will evolve as the country develops and its middle class grows. Already, private consumption makes up 60% of Indonesia’s GDP.
Queensland and Indonesia
In 2020 Indonesia was Queensland’s 13th largest merchandise trading partner, with coal and meat as Queensland’s top export commodities. Indonesia’s proximity and projected economic development will make it a strong trading partner for Queensland in the future.
In the 5 years to 2019, Indonesia’s imports originated predominately from its northern neighbours, ie China, Singapore and Japan.
Indonesia’s proximity to Queensland, demographics and ambitious development plans offer significant opportunities for Queensland companies.
Current in-demand services such as project financing, design and management of infrastructure projects will change in 5 to 10 years to include personal financial services.
Health care will change from the provision of basic public hospital infrastructure to more specialist private healthcare delivery.
The middle class will also increasingly demand more ‘quality of life’ services, including education, health care, financial and business services, and recreation and leisure services.
The Indonesia–Australia Comprehensive Economic Partnership Agreement (IA-CEPA) entered into force on 5 July 2020. Under IA-CEPA, 99% of Australian goods (by value) will enter Indonesia duty-free or under improved preferential arrangements. Service sectors to receive a boost include education and training, tourism, financial, mining and energy.
- Live cattle
- Education and training
- Project consultancy
- Smartphone solutions
- Coal, gas and geothermal
- Mass transit (eg increased air travel)
- Financial services
- More advanced health care
- Aged care
- Renewable energy
- Gourmet and functional food
- Sustainable design
- Eco living
- Alternative fuels
- Asialink, Doing Business in Indonesia | Asialink Business
- Austrade, Indonesia Market Profile, Market profile – Indonesia – For Australian exporters – Austrade
- Austrade, Market Information Package for Australian education institutions
- DFAT, Indonesia–Australia Comprehensive Economic Partnership Agreement (IA-CEPA)
- DFAT, Indonesia Market Insights 2021