Indonesia has almost 300 million inhabitants and a median age of 31. Its growing middle class and industrial expansion support demand and investment. Indonesia also provides access to the wider ASEAN region. The upcoming Indonesia-EU Comprehensive Economic Partnership Agreement (CEPA) is expected to strengthen trade and market access from 2027. 

Business opportunities 

Industrialisation, digital transformation, urbanisation, and sustainability targets are creating business opportunities across Indonesia. 

  • Green transition and energy 
    Indonesia targets net-zero emissions by 2060. Plans to add over 75 gigawatts of solar and wind power create demand for energy efficiency, electrification, smart grids, and sustainable infrastructure. 
  • Manufacturing and industry 
    Manufacturing accounts for around 20 per cent of Indonesia's GDP. Industrial expansion and technological upgrading create opportunities in automation, Industry 4.0, industrial equipment, and digital production. 
  • Digitalisation and technology 
    Indonesia has over 200 million mobile internet users. E-commerce could reach USD 194.5 billion by 2030, increasing demand for digital infrastructure, cybersecurity, data centres, fintech, and logistics solutions. 
  • Healthcare and medical technology 
    Nearly 98 per cent of the population is covered by national health insurance. Public and private investment supports opportunities in medical technology, digital health, hospital development, and healthcare infrastructure. 
Growth potential for Swedish companies 

Swedish expertise in energy efficiency, automation, digital systems, and healthcare aligns with Indonesia's development priorities. Opportunities exist in renewable energy, advanced manufacturing, digital infrastructure, and medical technology. Indonesia can also provide a platform for growth across ASEAN. 

Potential challenges 

Regulations and licensing processes can be complex and change frequently. Foreign ownership caps or local-partner requirements apply in some sectors. Corruption and limited transparency remain business risks, particularly in public procurement and dealings with authorities. Strong local relationships and market understanding are important for long-term success. 

How we support Swedish companies in Indonesia 

Business Sweden has operated in Indonesia since 2012 and has an office in Jakarta. We provide strategic advisory, market insights, and local business networks. We also help companies identify partners and customers, establish operations, and accelerate growth in the market.