Background
17.12.2021

INDONESIA - THE UNKNOWN GIANT

Indonesia offers many exciting op­por­tu­ni­ties for busi­nes­ses specia­lizing in tech­no­lo­gical in­no­va­tions, but un­ders­tan­ding how to best navigate the waters can sometimes be a daunting prospect for in­ter­na­tio­nal companies looking to expand into it.

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.

Va­lue­ham­me­rers Ltd.

Mailing address: Sturenkatu 26 LT 36, 00510 HELSINKI

Business ID: 2222706-2

OVT ID: 003722227062

Operator: Maventa


Tanja

MobileFI&WA +358 50 341 6185

E-mail: tanja(a)valuehammerers.com

 

Markku

MobileFI&WA +358 50 346 0036

markku(a)valuehammerers.com


hello(a)valuehammerers.com

Seven Stones Finland

Mailing address: Sturenkatu 26 LT 36, 00510 HELSINKI

Business ID: 2222706-2

OVT ID: 003722227062

Operator: Maventa


Tanja

MobileFI&WA +358 50 341 6185

E-mail: tanja(a)se­vens­to­ne­sin­do­ne­sia.com


hello(a)sevenstonesfinland.com

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