19 August 2019

Indonesia country snapshot

This article is produced by The Economist Intelligence Unit

Indonesia’s economy has been growing and is very likely to continue at a steady pace, as its consumer market remains one of the region’s largest. An expanding urban population and rising numbers of high-net-worth individuals settling in Indonesian cities should further translate into a bigger market for high-end consumer goods.

Besides free trade agreements (FTAs) signed as a member of the Association of Southeast Asian Nations (ASEAN), Indonesia has independent bilateral agreements with Pakistan, Japan and Chile; the last will be the most recent to come into effect. It is also part of the Preferential Tariff Arrangement–Group of Eight Developing Countries which include Bangladesh, Egypt, Iran, Malaysia, Nigeria, Pakistan and Turkey.

The country’s business environment is improving, as highlighted in the latest EIU Business Environment Rankings, owing in part to a significant progress in the political sphere. Jokowi embarking on a second five-year term bodes well, in terms of both political stability and effectiveness in the coming years, reflecting the impact of ongoing regulatory reforms and stronger economic fundamentals.

Indonesia has similarly improved its ranking in the EIU Technological Readiness Rankings, which assesses how well prepared 82 of the world’s largest economies are to address technological changes. The government has recently focused its attention on digitising the economy. Bank Indonesia announced plans to issue additional policy circulars to strengthen its 2017 regulatory framework which details establishing a National Payment Gateway, an online public-services payment platform. Consumers will thus be able to procure more essential services online, such as electricity and mobile phone data plans—all of which removes friction from economic activity and encourages growth.

Cybersecurity, however, may well remain an area of weakness for the country. Despite co-operating with regional neighbours and the Singapore government in particular¾to strengthen its cybersecurity agency, this problem poses a persistent challenge. Outdated and pirated software are largely to blame for the shortcoming and to help overcome such hurdles, the Ministry of Information and Technology has pledged to expand government programmes and foster more technology partnerships. These include both universities and local start-ups, which have been sources of innovation and economic growth in other nations such as the US and China.

Want to learn more? Click and browse by country

Issued by HSBC Holding plc

Interested in expanding your business to ASEAN? Let us help.


The Association of Southeast Asian Nations (ASEAN)

Written by The Economist Intelligence Unit.

While every effort has been taken to verify the accuracy of this information, The Economist Intelligence Unit Ltd. cannot accept any responsibility or liability for reliance by any person on this article or any of the information, opinions or conclusions set out in this article. The findings and views expressed in the article do not necessarily reflect the views of the sponsor.

The articles are intended for those who access it from within Singapore and is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation.

The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch (“HSBC”) makes no representation or warranty (express or implied) of any nature nor is any responsibility of any kind accepted with respect to the completeness or accuracy of any information, projection, representation or warranty (expressed or implied) in, or omission from, the articles. No liability is accepted whatsoever for any direct, indirect or consequential loss (whether arising in contract, tort or otherwise) arising from the use of or reliance on the articles or any information contained herein by the recipient or any third party.

No part of the articles may be reproduced, stored in a retrieval system, or transmitted, on any form or by any means, electronic, mechanical, photocopying, recording, or otherwise.

The information contained in the videos embedded on this website may include information from third parties who HSBC believe to be reliable but such information will not have been independently verified by HSBC. HSBC makes no representations that involvement in any particular location, sector or industry is suitable for your circumstances. HSBC encourages you to obtain legal, financial and any other relevant advice before entering into a transaction.

How can we help?

You are leaving the HSBC Commercial Banking website.

Please be aware that the external site policies will differ from our website terms and conditions and privacy policy. The next site will open in a new browser window or tab.