About Indonesia

Ease of Doing Business in Indonesia

• Indonesia becomes the biggest market in ASEAN with a market value of US$ 529 billion
• 86% GDP is from from 71% urban population
• 7th largest economic in the world
• 115 million skilled worker needed
• Inside, the top 5 cities to start a business are Yogyakarta, Semarang and Surakarta that located in
Cental Java, Palangkaraya in Kalimantan and also Banda Aceh in Sumatra

Photo Source: Jakarta

Market & • Median age is 29.7 with 52% population
around 25 to 69, 17% from 16 to 24,
Behavior in household size average 3.9 based on world
bank data only 34.6% completed upper
Indonesia secondary education
• Average income 12 million idr per month
Sector Percentage (USD 892), income and spending increasing
Food and beverages 48.5% by the time after outbreak
Housing 11.6%
• Growing over the years reflect by increasing
Transport 8.9%
household spending so companies tried to
Energy 5.5%
differentiated and niche their market
Clothing and footwear 3.5%
ICT 3.3% • Due to increasing household expense, needs
Education 2.9% on credit is increasing. Dependency on loans
Health 2.2% and lending, and credit become more
Personal care 1.7%
Due to Covid-19
• 92% tried to find new shopping behavior, still in home activity
• Out-of-home activities is increasing in high-income consumers
• Online activities projected to keep increasing after outbreak
with the highest on online learning, video conferencing, with
rapid increase on online telemedical sector
Sumatera
Sumatra Island growth is taking role for 21,32% contribution of total
Indonesian GDP with huge development on Trans-Sumatra toll road that
support it’s huge sector which are plantation, tourism.

Photo: Sumatera Island

Greater Jakarta
The investment activity was mainly supported by infrastructure
investment like LRT and 6 roads in Jakarta inner ring road. Bank of
Indonesia projecting the Region’s GDP would grow up to 5% - 5,4% in
2021.

Photo : Gelora Bung Karno, Jakarta

West Java
The economy of West Java will grow up to 4% - 5% in
2021. The transportation and warehousing business field
has the highest growth of 35,82%.
Cental Java
Bank Indonesia predicts the growth rate for the
Regional Gross Domestic Product (PDRB) of the
Special Region of Yogyakarta (DIY) in 2020 of
5,3% - 5,7%. main thing is building investment
from the construction of the Yogyakarta
International Airport (YIA) national strategic
project (PSN).

East Java
The highest growth occurred in the information and
communication business sector at 9.77%, followed by
health services and social activities at 9.12%. Education
also grew positively by 6.07%. Real estate by 5.38%, and
construction by 5.31%.
Photo : Borobudur Temple
Mollucas Island and Papua
Papua economy based on the amount of Gross Regional Domestic Product (GRDP) based on the valid
price for the second quarter of 2020 reached Rp. 48.03 trillion and at constant price 2010 reached Rp.
33.41 trillion. Papua's economic growth was triggered by an increase in production at the PT Freeport
Indonesia metal ore mine during the second quarter of 2020 which brought mining and quarrying to grow
by 29.92%.

Photo : Papua New Guinea

Sulawesi
A survey by Bank Indonesia Representative of South Sulawesi Province predicts that South
Sulawesi's economic growth will reach 4 percent in early 2021. The prediction is by looking at the
economic development of South Sulawesi from the improvement in economic growth, even though it
is still in a negative position in the third quarter of 2020.

Photo : Makassar City

Kalimantan
While viewed from the structure of the economy, the contribution of the regions is still dominated by
East Kalimantan at 49.09 percent. Followed by West Kalimantan with 16.66 percent, South
Kalimantan at 14.41 percent, Central Kalimantan at 11.86 percent, and Kaltara at 7.98 percent.

And Being chosen as the island for new capital city of Indonesia
Domestic Major Player
Rank Company Country Sales Profits Assets Market
Value
347 Bank Rakyat Indonesia $10.5 B $2.4 B $102.1 B $22.5 B
Indonesia
487 Bank Central Indonesia $6 B $2 B $66.2 B $42.8 B
Asia
495 Bank Mandiri Indonesia $8.6 B $1.9 B $95 B $14 B
708 Telkom Indonesia $9.4 B $1.4 B $15.1 B $23.3 B
Indonesia
1053 Bank Negara Indonesia $5.4 B $1.1 B $60.9 B $5.1 B
Indonesia
1516 Gudang Indonesia $7.9 B $ 774.2 M $4.7 B $5.9 B
Garam
 FDI and Current Regulation

Main Investing Countries 2019, in% Main Invested Sectors 2019, in%
Japan 34,8 Manufacturing 42,9
Singapore 27 Financial Intermediation 13,8
United Kingdom 6,8 Wholesale and retail trade 12,6
Thailand 5,1 Mining and Quarrying 7,6
USA 4 Electricity, gas, and water supply 7,3
South Korea 4 Real Estate 5,9
China 3,8 Construction 4,7
Canada 3,7

With effective first day work at February 17th, NIA (National Investment Authority) would immediately
increase the LPI capital fivefold to $5 billion, of which $2 billion would be in cash (state budget) and the
remaining $3 billion in shares of state-owned enterprises (SOEs) and other state assets.
Omnibus law
FDI for Indonesia is now 2% of GDP (gross domestic product) and in the last five years, 1.5% of GDP
(gross domestic product), which leads to an optimistic forecast for this year’s FDI that is supported by
the execution of omnibus law

Build permit regulation will be cut down, AMDAL requirement will be specified to few companies with
“important effects on environment, social, economics, and culture”

Labor reform for basic severance remains unchanged, but other severance sets to be scrapped by
creating right and more fair calculation based on time work with the goals of production capability
increased
Indonesia as a market
An estimated 90 million Indonesians will have joined the consuming class by 2030.

110
145

180

195

170
Consuming class are people with 135
annual net income >$3600 or 85
around 50 million rupiahs 45

2010 2020 2030 2030

Consuming Class Others
Healthcare Industry
• 90% import of medical device
• Pharmaceutical 10 billion USD in 2019 Medical device 4,5 billion USD
Overseas health spending 2,8 billion USD
• Indonesia’s pharmaceutical industry has experienced annual
growth between 10-13 percent, boosted from the rollout of
national health insurance.
• Expected to reach US$10 billion by 2021.
Infrastructure Industry
• Development of new capital in Kalimantan Island
• 380 billion UISD for 311 national strategic project
• 7.13 percent economic growth per 2019
Technology and Information
• 2025 Digital Technology Economy around 130 billion USD
• 2.8 billion USD software spending in 2023
• 400 million USD for SaaS market in 2023
Renewable Energy
• 21 billion USD for current Geothermal market
• 12,9 billion USD for hydropower and 2,5 billion USD for Bioenergy
market
• Still depended on import of electricity energy and device
• Huge opportunity for battery and storage system
Financial Technology Sector
• Estimated 54 billion USD market size in 2025
• 240 fintech player in 2020
 BRIGHT Indonesia is a global trade and
investment development specialist
consulting firm that focuses on assisting
global business development in Indonesia
and Southeast Asia.
About Us
Established in the 5th of June 2008 with 1
Regional Hub in Jakarta to serve 9,75 trillion
USD economy and over 660 million people
market in Southeast Asia.
 1. An Indonesia Know-How with Global
Perspective.
2. Wide network of High Quality Contacts and
Direct Access to Senior Official / C-Level
Decison makers in Indonesia.
3. 20 years of its founders Entrepreneurial
And why with us Experiences to assist Global Businesses in
Indonesia
4. Demonstrating Integrity in Everything we do.
5. Creativity and Innovation at its Corporate
Core
6. Independent Boutique Consulting which Put
Your Interest First.
7. Get the Work Done
We provide a range of market entry development
solutions
Market Insight Research
Business Partnership
Engagement

Business Registration &

Establishment
Organization Setup
& Development
Stakeholder Relations
Management
Growth Strategy
Development
 We serve hundred of clients around the globe

63+ Partners & 5 Continents &

100+ Projects 118+ Country Network
Associations
Membership

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