The situation of the Indonesian market in 2020 is quietly different from other years, especially with the COVID-19 pandemic that has its effect on the Indonesian market. Indonesia’s economy contracted in 2020 for the primary time in addition to two decades as COVID-19 crippled business activity across the archipelago. Consistent with data released, the gross domestic product of Southeast Asia’s largest economy plunged 2.07% from a year earlier, a marked downturn from 2019 when Indonesia recorded growth of 5.02%, and there is some increase and reduction in a number of the industry. Many things will happen during 2020 year, and if we would like to understand in more detail, we need a report. However, during these times, companies need tons of data while they are doing their business. The only solution to manage this is often to form reports.
Business reports are valuable and essential tools for any enterprise, no matter size or industry. With the assistance of report writing, correct decisions are often made within the business. They supply a way to trace and analyze the company’s performance while identifying areas for improvement and opportunities for growth. That is why this report is made to report fully on how the economy of the Indonesia market within the year 2020 and also the highlight of Indonesia Industries that show their growth in 2020. Thus, this report will help the corporate understand more about Indonesia’s whole market in 2020 and what decisions the corporate will make.
Economic of Indonesia Market
Indonesia is seen as a future economic giant. It is the most important economy in Southeast Asia and, therefore, the world’s seventh by purchasing power parity (Index Mundi, 2020). Due to the COVID-19 pandemic, the country registered negative GDP growth in 2020 for the primary time since 1998, going from +5% in 2019 to -1.5%. The standard critical drivers of the economy are private domestic consumption – stimulated by its huge market with a growing middle class of nearly 70 million people (55% of GDP) (Nordea Trade, 2021). Simultaneously, the main issues are the continued trade tensions between China and the US, the country’s two biggest trading partners, and the prolonged depreciation of the Rupiah.
According to the International Monetary Fund (IMF), the deficit rose from 2.2% of GDP in 2019 to 5.3% in 2020. The estimations stabilize the debt at 5%, before a reduction to three .7% in 2022. Inflation was estimated at 2.1% in 2020 and is predicted to be reduced to 1.6% in 2021 before increasing to 2.5% in 2022. debt has shown a significant improvement since the Asian Financial Crisis in 1998 (it reached up to 150% of GDP), but it rose slightly to 30.5% of GDP in 2019 before climbing again due to the COVID pandemic of 38.5%. Environmental protection also remains a serious challenge. The government hopes to take advantage of the country’s strategic location between Asia and, therefore, the Pacific within the current unfavorable international context (weakening demand from China and falling commodity prices). It aims to be within the top six largest economies by 2030 (Nordea Trade, 2021).
Indonesia Market Research
Since Indonesia aims to be within the top six largest economies by 2030, research of Indonesia market to help multinational corporations identify profitable growth strategies within the industry in Indonesia cities. Many promising industries from Indonesia, such as agriculture, artificial intelligence, automation engineering, the beverage industry in Indonesia, the health sector, and elsewhere. All the industries need research so you can learn more and understand more about them. Marketing research can determine how customers and potential customers might view your business and identify gaps in customer expectations. This is often a piece of vital information to have when completing your marketing strategy. Having good market intelligence helps to minimize risks when making critical business decisions.
Market Research can significantly help your marketing strategy because it helps supply critical insights and knowledge to the business. It can provide a deeper understanding of your customer and competitors. The research will help to know who is buying your product or service, who isn’t buying your product or service, what motivates them, and whether or not they are loyal to your brand – ultimately resulting in increased sales over time. Similarly, understanding the broader market environment can help identify new opportunities for your business. Because the market changes, it is essential to research still and know how you can improve your offering, supporting the changing consumer preferences or market dynamics. The more knowledge you know about, the better you understand the Indonesian market, the more you know how you do business in Indonesia.
What to Prepare to Penetrate the Indonesian Market?
Stepping into a replacement market and establishing a business there is rarely an easy task. The key to success is to research the market carefully, weigh risks and opportunities, define strategies and utilize the required resources. This is often no different in Indonesia. However, many helping hands and minds that want to form your initiative quickly. Various Indonesian government organizations like embassies, trade missions, and organizations offer entrepreneurs advice and knowledge on investment and business in Indonesia. They will provide information on markets and opportunities and help to determine the primary contacts.
If you chose to enter the Indonesian market, you would quickly meet many friendly people among the primary challenges typical for Indonesia. The openness and friendliness of the Indonesians are unique. Everyone you meet gives you new possibilities, recommends other references, and therefore the network usually grows much faster than expected. The seemingly lucrative offers of cooperation and assistance are piling up, and you get the great feeling of being a sought-after and welcome partner. This experience, including the prospect of winning an exciting growth market, quickly results in great optimism, even euphoria. Everything seems possible and already on the way—that is why we need to understand what to organize to penetrate the Indonesian market.
Read the full report here:
Do Business with BRIGHT Indonesia
The summary of BRIGHT Indonesia’s 2020 report should give you practical guidance about the Indonesian market and opportunities. With the reality remarks in mind, it is recommended for a foreign business to have an advisor with acute business acumen and good knowledge of the local market for an easier market entry process.
At BRIGHT Indonesia we will help your businesses to enter Indonesian market through services such as Business Partnership Engagement, Foreign Direct Investment Promotion, and Management and Strategy Consulting to secure the agreement between your company and your future Indonesian business partners, support your company from the private sector with the development of corporate/business unit strategies or helping your company from public sector organizations with public policy, and link your company both from the private and public sectors in global foreign direct investment (FDI).
For more information, email firstname.lastname@example.org.