Investing in Indonesia presents several compelling opportunities due to its strategic location, large population, and strong economic fundamentals. Here are the key reasons why you should consider investing in Indonesia
🌏 1. Large and Growing Market
Population: Over 275 million people, the 4th most populous country in the world.
Middle Class Expansion: A rapidly growing middle class is driving consumption and demand for quality goods and services.
Urbanization: More than 55% of the population lives in urban areas, supporting sectors like real estate, retail, and infrastructure.
📈 2. Robust Economic Growth
Resilient GDP Growth: Despite global challenges, Indonesia maintains steady growth, around 5% annually.
Diversified Economy: Sectors include manufacturing, agriculture, mining, finance, tourism, and digital technology.
🌿 3. Abundant Natural Resources
Rich in coal, nickel, copper, palm oil, and natural gas.
Essential for green energy transitions, such as EV battery materials (nickel and cobalt).
🏗️ 4. Infrastructure & Development Focus
Massive investments in infrastructure: roads, ports, airports, and new capital city (Nusantara).
Government encourages public-private partnerships (PPPs) in development projects.
💡 5. Digital Economy Boom
One of the fastest-growing digital markets in Southeast Asia.
Over 200 million internet users and rising.
Start-up ecosystem is booming, with major players in e-commerce, fintech, and logistics.
💰 6. Favorable Investment Climate
Omnibus Law improves ease of doing business, simplifies regulations, and opens more sectors to foreign investment.
Tax incentives for strategic sectors and special economic zones.
BKPM (Investment Coordinating Board) actively supports foreign investors.
🌐 7. Strategic Location
Sits along major trade routes between Asia and Australia, and between the Indian and Pacific Oceans.
Member of ASEAN, providing access to a 600+ million consumer market.
🛡️ 8. Political and Economic Stability
Stable democratic government.
Strong central bank and prudent fiscal policies.
Rising investor confidence and improving sovereign credit ratings.
🔚 Summary:
Indonesia offers:
A massive, young consumer base
Rich natural resources
Digital transformation
Pro-investment reforms
Strategic trade positioning
Whether you’re looking at infrastructure, tech, manufacturing, green energy, or consumer markets, Indonesia provides a promising environment for long-term investment.
An economy benefiting to all Indonesians
From 74% in 1984 to 1.5% in 2024 reduce in extreme proverty rate
Credits: by Our World in Data
China reduced extreme poverty rapidly, but Indonesia hasn’t been far behind—
China is often the poster child for rapid reductions in poverty, and for good reason: in the early 1980s, over 90% of its population lived in extreme poverty, but by the early 2020s, that number had dropped to nearly zero.
Some people assume that China is the only reason global extreme poverty has declined. But that’s wrong: many other countries have seen dramatic reductions in poverty. Indonesia is one clear example; it’s shown alongside China on the chart.
In 1984, three-quarters of Indonesians lived on less than $2.15 per day. By 2023, this had fallen to less than 2%. While it didn’t quite match China’s decline, it has still been impressive. The number of people living in extreme poverty has fallen from 120 million to 5 million.
Note that the international poverty line is extremely low, defined as people living on less than $2.15 per day. But Indonesia has also made progress measured by higher poverty lines.
(This Daily Data Insight was written by Hannah Ritchie.)