As Southeast Asia’s largest economy, Indonesia continues to offer significant long-term opportunities for Swedish companies. Strong domestic demand, a large population, industrial expansion, and growing sectors such as mining, infrastructure, energy, telecommunications, and manufacturing continue to make Indonesia an attractive market across multiple industries.
At the same time, companies report a more challenging operating environment. Regulatory complexity, customs procedures, local content requirements, certification processes, and political and economic uncertainty continue to affect competitiveness and investment decisions. Companies also point to compliance-related costs and policy unpredictability as ongoing concerns.
Cooperation between Sweden and Indonesia remains strong within sectors such as industrial equipment, mining, automotive, telecommunications, energy, and sustainable technologies. The expected implementation of the EU–Indonesia CEPA from 2027 is also viewed positively by many Swedish companies, particularly regarding lower import duties and simplified trade procedures.
Competitiveness in Indonesia is closely linked to partnerships, cost efficiency, local market knowledge, and strong commercial relationships. The Swedish brand continues to be associated with quality, reliability, and premium products.
Indonesia is widely regarded as a market with strong long-term potential and significant business opportunities. However, companies also point to regulatory barriers, customs-related challenges, and policy uncertainty as ongoing obstacles.
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ABOUT THE SURVEY
To assess the opportunities and challenges faced by Swedish companies in international markets, Team Sweden conducts annual Business Climate Surveys across multiple markets worldwide. This year’s survey in Indonesia includes responses from 42 Swedish companies operating in the country. Industrial companies represent a significant share of respondents, while professional services and consumer companies also make up a considerable share. The majority of respondents have been active in Indonesia for more than five years.
We would like to extend our sincere appreciation to all participating companies and respondents who contributed to this report. Team Sweden in Indonesia hopes that the findings will serve as a basis for continued dialogue with Indonesian authorities and other relevant stakeholders.
