The first Swedish company came to Indonesia more than a century ago. Today, at least 50 Swedish companies are making steady progress in Southeast Asia’s largest economy of 270 million inhabitants. Although the business landscape is currently fraught with uncertainty due to the Covid-19 crisis, the projections indicate that Indonesia will regain its momentum in 2021.
This is not surprising given Indonesia’s impressive economic performance since the Asian Financial Crisis of 1997. In fact, the country has maintained an annual GDP growth rate of 5.6% for the past 50 years and extreme poverty has substantially reduced.
This consistent positive trend has sustained profitability for Swedish companies operating in Indonesia. Spending power is fast rising and the middle class is expanding at a rate of five million people per year. Indonesia is now classified a middle-income country and the domestic consumer market is the engine of growth.
Despite the pandemic’s disruption, our latest Business Climate Survey shows that 54% of Swedish companies are planning to increase their local investments over the next 12 months. 63% of Swedish companies believe that “brand Sweden” contributes to their local success.
This Business Climate Survey maps the opportunities and challenges that Swedish companies face in Indonesia, and was conducted 2-12 March 2020.
The report is divided into four sections:
- Economic outlook
- The market
- Key success factors
- Acting sustainably
Download for the inside perspective – and please get in touch if you want to assess your company’s growth prospects in the Indonesian market.