The Australian Consortium for ‘In-Country’ Indonesian Studies (ACICIS) and BRIGHT Indonesia – Webinar: The Dynamics of Indonesian Market Access
The Australian Consortium for ‘In-Country’ Indonesian Studies (ACICIS) collaborated with BRIGHT Indonesia in delivering an introduction to the Indonesian economy and business environment seminar as part of the 2022 ACICIS Virtual Business Professional Practicum (BPP). The event was held on January 06, 2022, also in collaboration with Professor Ian Satchwell of the Sustainable Minerals Institute, The University of Queensland.
Primadi Wahyuwidagdo Soerjosoemanto, Co-Founder and Principal Partner of BRIGHT Indonesia explained how BRIGHT Indonesia showcases the prospect of Indonesia’s dynamic markets.
The ACICIS Business Professional Practicum (BPP) was launched in 2015, and is a program is suitable for undergraduate students, postgraduate coursework students, and early career professionals. The BPP provides an opportunity for students of business, management, and marketing, or early-career business professionals, to gain valuable experience working in the field of business and commerce in Indonesia.
Host Organisations are drawn from a wide range of Jakarta’s business and industry sectors including banking and finance, infrastructure and mining, small and medium enterprises (SMEs), creative industries, as well as chambers of commerce.
The Indonesian Economy
Based on Indonesia’s economic outlook 2022 data, manufacturing is the largest industry in Indonesia, with food and beverages the largest subsector, exports dominated by primary products. Indonesia’s exports are still dominated by raw or semi-processed materials. Covid-19 hit the economy hard, but recovery is promising. Indonesia has key policy levers like the National Economic Recovery (PEN) program, Omnibus Job Creation Law, and accelerating vaccinations.
Doing Business in Indonesia
The Omnibus Law amends many government regulations to strengthen the economy by increasing competitiveness, creating jobs, and making it easier to do business in Indonesia. The main goal is to stimulate domestic and foreign investments to help transform Indonesia’s economy, based on data from the World Bank and OECD Product Market Regulations.
Cooperation between Indonesia and Australia
According to Prof. Ian Satchwell, the Indonesia – Australia cooperation framework is comprehensive, covering trade and investment agreements, comprehensive strategic partnership, economic development and trade cooperation, security cooperation, and second track activities. The Indonesia Australia Comprehensive Economic Partnership Agreement (IA – CEPA) is a new kind of economic agreement – beyond trade, building investment, towards economic integration (world’s virtual 9th largest economy).
Quoting Prof Rory Medcalf, trade is transactional, investment involves trust. Outcomes of IA – CEPA are comprehensive, economic, and partnership. There are pillars for IA – CEPA such as economic cooperation, trade in goods, trade in services, investment, and movement of natural persons, plus ‘powerhousing’ to build supply chains.
The Future Prospects for Indonesia Market Access
Based on data from McKinsey & Co., Indonesia is expected to have enormous potential by 2030. Indonesia became the 7th country with a broad economic sector. 71% of the urban population is producing 86% of Gross Domestic Product (GDP).
Indonesia also has USD 1,8 trillion in market opportunities. There are diverse promising sectors in Indonesia including renewable energy sectors such as solar, wind, water, wave, and other sectors.
Consumer goods sectors such as food and beverages, fashion, e-commerce, retail, electronics, and other sectors. 10 “New Bali” tourism destinations such as hotel and tourism-related business.
Indonesia has opportunities in various sectors including healthcare, infrastructure, technology and information, advanced manufacturing, electronics, renewable energy, and financial technology. Several things need to be considered to enter a new market, three of which are as follows.
1. Build necessary groundwork.
2. Collect business intelligence about your sector.
3. Focus and support the Indonesian business.
In the face of the new normal, Indonesia has a strategy for maintaining its economic growth. There are several themes for next normal Indonesia’s pillars for post COVID recovery, including the following.
1. Healthcare
A 2019 McKinsey study estimated that between 2014 and 2023, automation will create more jobs in Indonesia than are lost, with the most aggressive scenario forecasting up to 23 million more jobs. In addition, the structure of the country’s economy will change as the population generally becomes wealthier. Labour demand will increase in some sectors, such as construction, manufacturing, education, healthcare, and retail and wholesale trade.
2. Government and regulation
Identify the need for detailed protocols for safe operations. In 2018, the World Bank ranked Indonesia’s logistics infrastructure 46th among 160 countries analysed, an increase from 53rd in 2014, reflecting the government’s efforts.
3. Technology and innovation
Accelerate use of online channels and digitization of businesses. Already, companies such as Astra Indonesia and technology start-up Gojek have expanded training programs to focus on new skills needed for senior executives and engineers.
Enter the Indonesian Market with BRIGHT Indonesia
Because of the huge impact of the economy and business sector in Indonesia, of course, it takes a lot of in-depth research about market access in Indonesia. So, to enter the Indonesian market, you need the right local partner to assist you.
BRIGHT Indonesia is an ideal business partner for you. We will assist you on the ground, including virtual assistants during the mission, logistical planning, and detailed communication. It can cause your company to focus on developing partnership cooperation rather than the hassles of the business trip.
BRIGHT Indonesia provides several services such as Market Insight Research, Business Partnership Engagement, Management and Strategy Consulting, and Foreign Direct Investment. The services will help your business to:
- Assist you in expanding and developing your business by identification of potential partners.
- Secure the agreement between client companies and future Indonesian business partners by providing a list of potentially suitable partners, arranging business meetings, and acting as a liaison.
- Supporting our foreign client companies from the private sector with developing corporate or business unit strategies or helping your company from public sector organizations with public policy.
- Link client companies both from the private and public sectors in global foreign direct investment (FDI) through training and assisting your company in entering FDI source countries to gather investment for your company’s local markets.
For more information, email info@brightindonesia.net.
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