Have you ever thought about Indonesia?

Indonesia is an unknown giant in Finland. It is a vast tropical arc­hi­pe­la­go with countless natural wonders, a rich history, firm culture, and warm­hear­ted people. With a po­pu­la­tion of 275-million people, Indonesia is the largest nation in Southeast Asia, the fourth most populous country globally, and the seventh-largest economy by purc­ha­sing power parity. Indonesia is offering enormous business op­por­tu­ni­ties for Finnish in­no­va­tions in services and tech­no­lo­gies.

Eco­no­mical facts

• Real GDP (purc­ha­sing power parity): 3000 trillion $. GDP (official exchange rate) 1100 trillion $ (the World Factbook/Economy).
• Real GDP per capita: 11 400 $ (Finland 47 300$)
• Real growth rate: 5%
• Inflation: 2,8%
• Status: A lower-middle-income country

Indonesia's cha­rac­te­ris­tics

• Po­pu­la­tion: 275 million in­ha­bi­tants with a huge domestic consumer market and growing middle class. The po­pu­la­tion is projected to increase to 320 million by 2045 (the World Factbook/People and society).
• De­mo­grap­hics: Young po­pu­la­tion with a median age of 31 (in Finland 43).
• Ur­ba­niza­tion: 57% (Finland 86%)
• Arc­hi­pe­la­go: Some 13 500 islands, of which more than 900 are per­ma­nent­ly inhabited, result in de­pen­dency on marine resources and maritime logistics (the World Factbook/Geography).

Where is Indonesia heading?

As an emerging country, Indonesia faces tre­men­dous chal­len­ges, but it’s de­ter­mi­ned to overcome them.

De­ve­lop­men­tal chal­len­ges

• Poverty and unemplo­y­ment
• Ina­dequa­te in­fra­struc­tu­re
• Cor­rup­tion and complex re­gu­la­to­ry en­vi­ron­ment
• Ina­dequa­te Healthca­re
• Ina­dequa­te Education

En­vi­ron­men­tal and climatic chal­len­ges

• Energy from fossil fuels 85%
• Water pollution
• Waste ma­na­ge­ment
• De­fo­res­ta­tion

New capital city challenge

Building a new capital city with smart trans­por­ta­tion, building, energy, water, waste ma­na­ge­ment, and services.

What is needed in Indonesia?

Eve­ryt­hing… and es­pecial­ly

• Clean energy
• Safe drinking water
• Waste and was­tewa­ter ma­na­ge­ment
• Sus­tai­nable agricul­tu­re and aquacul­tu­re de­ve­lop­ments, and use of natural resources
• Smart city concept

Finland's exports to Indonesia

Exports to Indonesia in 2020 were some 150 million euros in 2020. The most sig­ni­ficant exports products were:

• Machinery and mec­ha­nical equipment
• Elect­rical and elect­ro­nic machinery and equipment
• Wood, pulp, and paper
• Iron and steel

Finland's imports from Indonesia?

Imports from Indonesia in 2020 were some 150 million euros in 2020. The most sig­ni­ficant import products were:

• Machinery and mec­ha­nical equipment
• Elect­rical and elect­ro­nic machinery and equipment
• Vegetable fats
• Chemical and rubber products
• Clothes and footwear

What kind of op­por­tu­ni­ties are there?

Exporting

Sectors where Finland can make a dif­fe­rence:

• Aquacul­tu­re
• CleanTech
• Health/MedTech
• ICT&Di­gi­ta­liza­tion

Out­sourcing

Ma­nu­fac­tu­ring base for the products. As­sembling and ma­nu­fac­tu­ring high-tech products in Indonesia enables to operate in the ASEAN free trade area. It is apprecia­ted by the go­vern­ment, too, because knowledge transfer benefits Indonesia to raise the skills level of the workforce.