Doing Business in Indonesia
INTRODUCTION TO INDONESIA
Indonesia is composed of seventeen thousand islands that stretch over five thousand miles along the equator. The Malay peninsula and Indochina are situated to the northwest, and the continent of Australia lies due south. The Philippines and Micronesia lie northward.
Economic growth and structure
Indonesia has the largest economy in Southeast Asia, and is on track to become the world’s 7th largest economy by 2030, overtaking Germany and the United Kingdom (reported by McKinsey Global Institute). The report cites the country’s young population, new consumer class and the rapid urbanization of cities as reasons that will elevate Indonesia’s $850 billion economy up nine spots from its current place of 16th largest economy globally.
Unlike typical Asian “tiger” economies, Indonesia’s economy has grown as a result of consumption due to the rising middle class, not exports and manufacturing. By 2030, Indonesia will have added 90 million people to its consuming class—more than any other country except China and India…
