Indonesia is the country with the 5th fastest growing economies in the world; it offers dreams and opportunities for investors who want to expand their operations to a highly attractive market. One of our partners can help you to succeed in Indonesia. Cekindo Bisnis Grup is reputable market-entry consulting company based Jakarta, the capital of Indonesia.
Find out more through the 5 points below.
#1. 3rd Highest Consumer Confidence in The World
Indonesia got the consumer confidence index of 119 by Q2 of 2016, the 3rd highest in the world according research done by AC Nielsen. The index came from the positive and optimism of the customer. It’s a positive signal for the investors who want to expand their operations to Indonesia as the customers are open and able to buy products.
#2. The Accretion of Middle Class Society
According to data from the World Bank, the middle class society is divided into 4 (four) classes. The first class, people with an income of IDR 1 – 1.5 million per month (38.5%), the second class with an income of IDR 1.5 – 2.6 million per per month (11.7%), the third class with an income of IDR 2.6 – 5.2 million per month (5%), and the last, class with an income of IDR 5.2 – 6 million per month (1.3%). By 2010 the middle class will reach 134 million people, and is expected to keep increasing 7 million per year. The middle class are very influential on the Indonesian economy; the property sector in Indonesia relies heavily on the middle class as they tend to buy new houses as investment properties. Find out how to own property in Indonesia.
#3. Positive Development of Retail Industry
The retail industry is growing along with the increased size of the middle class. New malls, supermarkets and mini markets keep spreading all over big cities in Indonesia; In 2016, Jakarta had more than 170 malls. The development of retail business continues to increase with data taken from 2015 indicating that there was an increase of 11% for mini market, and 10.6% for supermarkets. The market size for mini-market business in 2015 was around IDR 73 trillion, with an annual growth of about 13.5%.
#4. The National Trade Balance Surplus
The Indonesian Economic 2015 Report which has been published by Bank Indonesia indicated that the Indonesian economic transaction still ran well in the middle of a slow global economy. It happened because of the national trade balance surplus, the reduction of exports was not as much as the reduction of imports. This situation can be a clue that Indonesia still offers a positive investment climate for the foreign investors, from business to business segment to the retail industry. Find out how to set up a business in Indonesia.
#5. E-Commerce Business Significant Growth
E-Commerce business in Indonesia keeps growing along with the increasing internet use that currently reaches 88.1 million individuals or about 30% of the total Indonesian population. Even though the sales generated from e-commerce only contributed 0.7% of Indonesia total retail sales, it means the e-commerce market presents a great opportunity to grow. EuroMonitor noted that in 2014, Indonesia online sales reached US$1.1 billion, this amount is higher than Thailand and Singapore. By 2016, the e-commerce industry in Indonesia is expected to reach IDR 295 trillion. The potential market in e-commerce business is one of the strongest reason why you should entry Indonesian Market.
Indonesia can provide your investment with much more than you can imagine. Cekindo Bisnis Grup will assist you with your entry into this promising country.
Get more information at www.cekindo.com. If you have any more questions, don’t hesitate to get in contact with us.