Although its growth hasn’t been as high as some other countries in Southeast Asia, Indonesia’s economic gains have stood out on the global stage and are expected to continue in the coming year – albeit at a somewhat slower pace. Accordingly, it’s become one of Sweden’s most important trading partners in the region.
This report presents the sixth edition of our Business Climate Survey of Swedish companies operating in Indonesia. The outlook for 2025 is definitely mixed. Respondents are significantly less upbeat regarding the Indonesian business climate, with the majority (54 per cent) sharing a neutral attitude. Yet, 77 per cent of respondent also reported their operations were profitable, an increase from last year’s survey of more than 10 percentage points.
The Indonesian government has announced plans to help ramp up its economic growth, including increasing foreign direct investment and boosting yearly investment to USD 215 billion by 2029. This can create many new opportunities for Swedish companies. The ‘Swedish brand’ remains a positive influence for Swedish companies in Indonesia. Just over 85 per cent of the respondents stated that Swedish brand reputation has contributed positively to their businesses. However, that’s down from 97 per cent in 2024.
Overall, Swedish companies are significantly less optimistic about the Indonesian business climate. Only 26 per cent of the respondents perceived the Indonesian business climate as good or very good, a major decrease from last year’s 65 per cent. Meanwhile, the percentage of respondents planning to maintain their level of investment is the same as last year (49 per cent), and those planning to increase investment only went up by one percentage point. These may indicate that the Swedish business community is not confident in significantly committing to the Indonesian market or starting to lose interest.
Increasing regulatory burdens may be contributing significantly to the declining business climate, as well as concerns about corruption, labour rights violations, and other issues.
Want to read a full overview of the survey results with detailed analysis? Download the report today.
ABOUT THE SURVEY
The Business Climate Survey is a global initiative undertaken by Team Sweden worldwide. It’s a tool that helps gain a deeper understanding of the experiences and perspectives of Swedish companies operating abroad, including their views of each market’s business climate and corresponding trends. This year’s Business Climate Survey for Indonesia was conducted with the participation of 40 Swedish companies active in the Indonesian market. There is a high level of diversity in terms of industry represented among the respondents, with a majority being large businesses employing more than 1,000 employees globally.
We extend our gratitude to all the companies that dedicated their time to provide their perspectives, which were invaluable in preparing this year’s edition of the Business Climate Survey in Indonesia. Team Sweden in Indonesia hopes the insights shared in this report can help build stronger bilateral relations between Sweden and Indonesia and help meet the needs of Swedish companies in the Indonesian market.
