Overview of best prospect sectors, major infrastructure projects, significant government procurements and business opportunities.
Last Published: 2/4/2019

  • •Consumer-related market opportunities continue to lead growth in the world’s fourth- largest country, and expansion in the retail, health, education, telecom and financial services sector have boomed in the last few years.   The Indonesian consumer is ranked as one of the most confident in the world, and approximately 50% of Indonesia’s 262 million citizens are under the age of 30.

    •Indonesia’s aviation market is growing at 20% per year and favors U.S. products. Aircraft replacement parts and services is a valuable and significant market. There is also demand for air traffic control and airport logistics services and ground support equipment.

    •Indonesia’s aviation market is predicted to grow 29.6% by 2018 while in 2017 it grew by 20%. With high growth, Indonesia aviation market require infrastructure, training, and components in order to keep their business running. Maintenance, Repair and Overhaul (MRO) in Indonesia is estimated to reach 2 Billion USD per year for the next five years.

    •A competitive and expanding banking market offers significant opportunities for IT and banking equipment, software and technology providers.

    •There are opportunities for telecommunication infrastructure such as satellites and ground stations, handheld devices, and also integration devices or Enablers.

    •Indonesia’s under-developed public infrastructure remains a major national challenge and presents opportunities in aviation, rail, ports and land transport, as well as in municipal infrastructure projects such as water supply and wastewater systems.

    •As the Indonesian military expands its budget, there are opportunities for U.S. defense manufacturers to sell a range of military aircraft, vehicles, communications systems, spare parts, and maintenance services. Monitoring and protection of sea-borne traffic for both national security and fisheries enforcement presents new opportunities.

    •Important opportunities outside of Jakarta remain in energy and electricity transmission services.  The Government of Indonesia has announced its intention to increase electricity generation by 35,000 MW by 2019.  It is not going to meet that goal but growth in power generation projects, conventional and renewable, and including IPPs, is expected to continue for the next decade.

    •Telecommunications equipment and services and satellites remain excellent areas for American products and services, which have a comparative advantage technologically.

    •Education and professional training, medical equipment and high-quality American agricultural commodities all retain their market edge even with premium prices.

    •The U.S. has consistently been a desired destination for Indonesian students seeking to study overseas. Currently there are 8,776 Indonesian studying in the U.S.

    •Emerging opportunities include palm oil, biofuel processing, clean energy and technology to improve local production capacity, and potentially cold storage and fish processing equipment and services.

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