Indonesia, with its 240 million inhabitants, is currently the largest economy in Southeast Asia. Its GDP grows above 6% per year and its internal consumption is so vast that it has unbalanced the trade balance due to a massive increase in imports. Its population has doubled its purchasing power in 5 years and the middle class begins to be around 80 million inhabitants with an annual growth of 1.6%. Goldman Sachs predicts that it will be the 8th economy in the world in 2025, Fidelity has encompassed it under the MINT (Mexico, Indonesia, Nigeria and Turkey) and Spain has framed it within its PIDM priority countries. The local industry is insufficient and underdeveloped, being a country of net export of raw materials but of importation of manufactured products.
The life cycle of the market is currently in the growth phase, with the unconsolidated offer in many sectors and an unfriendly climate. Most of the sectors grow above the double digits, the taste for Western habits expands, industrialization grows, infrastructure development is in full swing and the construction sector is in the boom of the happy 90 Spaniards. However, the penetration of the country is complex due to the endless barriers and non-tariff barriers that exist. It requires high regulatory knowledge, continuous monitoring, a relationship-based game, a stable presence and local language management, among others. These high barriers that are an obstacle for the exporter and the investor at first, once overcome, become a protection against new competitors.
SECTORS WITH OPPORTUNITIES
Food and Beverage
A star sector that currently invoices 59,000 million dollars and grows above 10% annually. Although it is one of the sectors with the greatest commercial opportunities, so is the one with the greatest barriers. Limited import authorizations, difficulty importing samples, fees, records, extensive documentation, adaptation, legalizations, ...
Booming sector with an annual growth of 7.5%. It currently represents 10.25% of GDP. Cement consumption has doubled in the last 5 years and the price of imported construction materials increased 4.3% in 2012. This indicates an increase in the consumption of quality and differentiation products. Trimetrics qualifies it as a low risk market.
The energy sector is configured as one of the sectors to which more investment will be allocated in the coming years. The intention is to install 57 GW in the next 10 years, since 30% of the population has no power supply and demand growth is 9.5% every 5 years. Currently, an investment of approximately 20,000 million dollars is expected and in 2025 17% of the production is expected to come from renewable energy. There is sovereign guarantee, guarantees and funds for the financial viability of the projects and partial financing of the construction expenses in PPP projects.
Water Engineering Sector
Currently only 54% of the population had access to the water supplied. As a result, the Indonesian Government launched the largest water supply investment program in its history. This plan goes through a disbursement of 6,700 million between 2011 and 2015. In the area of APP there are 14 potential projects that are currently worth 1,816 million dollars.
Capital Goods Sector
With the incipient industrialization of the country, the demand for capital goods is suffering a sharp increase. The ones related to the food industry, the agricultural sector, the automotive sector, machine tools, packaging and packaging, the construction sector, the auxiliary extraction and extraction industry, those related to renewable energy and water supply stand out.
Other Sectors of Opportunity
Among many others, the automotive and auxiliary components sectors, the chemical industry, the pharmaceutical industry, cosmetics, the agricultural sector and, in general, those associated with consumer products linked to the growth of the middle class stand out.