Time to take an interest in Indonesia?
03 January 2018
Posted by: IOE&IT News
Indonesia is the world’s fourth most populous country and the largest in South East Asia. Extending over 18,307 islands with more than 742 different languages, Indonesia is currently the world's 16th largest economy. The new Doing Business in Indonesia Guide will help prepare UK businesses who are looking to trade with this important market.
With a population of 253 million, Indonesia can be a highly attractive export market for
UK businesses. The country's burgeoning middle class, which is larger than the population of Malaysia or Australia, are hungry for international brands and opportunities exist across the consumer and retail sectors. Other areas where British companies might tap into Indonesia's rapid growth are the creative industries, engineering, education, renewable energy, finance, infrastructure and transport. Indonesia is also an important gateway to other emerging Asian Markets and is a member of ASEAN which means that British companies producing and shipping goods within the region can also benefit from intra-ASEAN tariff reductions.
Indonesia is not without its challenges however, the infrastructure has not been developed or maintained to keep pace with the booming consumer-led economy and whilst deregulation has successfully reduced some barriers, non-tariff barriers remain widespread and the bureaucracy can still be cumbersome. Although significant anti-corruption measures have been undertaken by the Indonesian Government, corruption remains a concern for many businesses and you would be well-served to ensure that you have robust due diligence processes in place before you attempt to enter the market.
There are several ways to operate a business in Indonesia including setting up a joint venture company, establishing a representative office and appointing an agent or distributor. One of the most important issues when doing business in Indonesia is building a good relationship with your partners. This process is time consuming and requires that you present yourself more as a person rather than a businessman or businesswoman. For Indonesians it is very important to have a good and solid friendship with somebody before doing business, so expect to have to answer a lot of private questions about your life, family, network, hobbies, and so on whilst you get to know your Indonesian hosts.
Whatever approach you decide to take in your business dealings in Indonesia, the
Institute of Export & International Trade is always ready to help guide you through the ins and outs of doing business in this increasingly important country.
The guide is available to download on the website or you can download an app (from both the Apple App Store and Google Play Store). Alternatively, you can order a free full colour hard copy brochure here.
To see the full range of Doing Business Guides, go here: http://www.export.org.uk/page/DoingBusinessGuides