Copyright © Business Accelerator Program Indonesia, BAPI
Indonesia is the 4th largest country in the world by population, with more than 260 million inhabitants. It is located on the equator, in the so called ring-of-fire. Since 1998 Indonesia is a democracy and has also engaged more in multilateral fora, including energy related organizations such as the International Energy Agency and Mission Innovation. It is a majority muslim country but all major religions are represented and the cultural and natural diversity across the archipelago is rich indeed.
Business opportunities in Indonesia
Indonesia is the largest economy in South East Asia (ASEAN)
Business Sweden monitors business opportunities in Indonesia on behalf of the Swedish private sector. In a report – Make Way for Indonesia – the outlook for growth in Indonesia is huge, especially in infrastructure related business, such as the transportation and energy sectors. This holds true even in a post Covid-19 world.
The growing consumer class and the young workforce population offers opportunities for continued economic growth, and Indonesia is forecasted to become the 5th largest economy in the world by 2035.
The energy market and related sectors
The Indonesian energy sector is still dominated by fossil fuels. However ambitious targets for electrification, renewable energy and reduced emissions of greenhouse gases have been adopted by the Government of Indonesia
The electricity market is vertically integrated with the state owned enterprise Perusahan Negara Listrik (PLN) as the dominating actor. This is also true for oil and gas with Pertamina and PT PGN respectively as dominating state owned companies.
The need for energy efficiency in industry and in the commercial properties sectors constitute opportunities for Swedish technology.
Environmental technologies for waste and water management are also sectors where there are opportunities, while responsibilities are at local and regional governments for these infrastructures.