Indonesia Industry

Both manufacturing and retail is growing in Indonesia, due to a burgeoning domestic market and increasing cost competitiveness. But to make the sector competitive with rivals from ASEAN and other Asian countries, the government needs to improve the investment regime. “The country’s overall atmosphere for investment is positive, garnering the...

With sustained economic growth putting more money in Indonesians’ pockets than ever before (GDP expanded 6% in 2010 and is expected to rise around 6.5% in 2011) the country’s retail sector is experiencing solid expansion. Indeed, the retail sector as a whole grew 12% in 2010, with many businesses pushing ahead with outlet expansion. This wave has...

With economic growth of 6.1% in 2010 and widespread predictions of continued expansion in 2011, Indonesia’s industrial sector is attracting more attention from international investors than ever before. The country is also making a major effort both to shift away from resource-based industries to more value-added sectors, and to boost its fundamental...

Another recent beneficiary of Indonesia’s rapid economic growth has been the consumer goods industry, with domestic demand rising significantly for food and beverage (F&B), pharmaceuticals, cosmetics, textiles and footwear, and tobacco products (see analysis). Exports have also been growing, with the bar increasingly high for Indonesian...

With its internationally famous clove cigarettes, known as kretek, and an expanding domestic market, Indonesia is a centre for many global tobacco companies. The industry provides employment and income for tens of thousands of people, from growers to hand-rollers and retailers. With an estimated 60% of adult males smoking and a population of...