Information about the partnership
With its emerging market, openness to reform and trade partnerships, and untapped potential, Indonesia is a promising business location. The main drivers of growth are the raw materials and agriculture sectors. Partnering in Business with Germany actively promotes partnerships between Indonesian companies with internationalisation potential and German companies looking to access the Indonesian market. To this end, targeted B2B meetings are arranged between entrepreneurs from both countries.
Focus areas and potential for cooperation with Indonesia
Indonesia is home to over 280 million people and accounts for more than a third of the Association of Southeast Asian Nations’ (ASEAN) economic output. The Indonesian government is currently seeking new international trade partnerships to establish itself as an alternative production location. This creates numerous opportunities, particularly given the lack of local competition.
Business in Indonesia – Opportunities for German Companies
The Indonesian economy has grown at an annual rate of around 5 per cent for two decades, achieving enormous increases in prosperity. The country has extensive natural resources, including coal, nickel, rubber and oil palm plantations, which generate considerable export revenue. Copper, tin, bauxite and gold are also available in large quantities.
Java is the economic heart of Indonesia, accounting for almost 60 per cent of the population and the country’s economic output. The textile and furniture industries are mainly located in Central and East Java. Most foreign companies outside the raw materials sector are based in Java. Jakarta is the undisputed economic centre, where almost all foreign companies have their headquarters. On the other large islands, economic activity focuses on agriculture and raw materials.
The expansion of further processing within the country, along with the resulting increase in demand for technological imports, is creating numerous opportunities for German companies across a range of sectors, including agriculture. The Indonesian government aims to achieve self-sufficiency in all agricultural goods that can be produced domestically by 2029 at the latest. To this end, large areas of agricultural land are to be developed and the sector is to be modernised. The growing demand for agricultural technology provides German companies with many opportunities for collaboration, particularly given the good reputation of German quality in Indonesia.
Germany is one of Indonesia’s most important trading partners within the European Union. Indonesia mainly imports machinery, chemicals, steel and vehicles from Germany. Conversely, Indonesia’s exports to Germany consist primarily of raw materials, agricultural products, and textiles.
Industry Focus and Participant Profiles
Partnering in Business with Germany is open to executives from all sectors.
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Your contact in Indonesia
Business Service Desk of the Indonesian Chamber of Commerce and Industry KADIN