The latest news for Italian exports to Indonesia and the main sectors in which to invest

Indonesia is the largest economy in Southeast Asia and the tenth largest in the world in terms of GDP, with growth holding steady around 5-6%. 

Over the past ten years Indonesia's trade with the rest of the world quadrupled thanks to the Plan for Economic Acceleration and Development (MP3EI), through which the Indonesian government has set a goal of becoming one of the most developed economies by 2025. 

Regarding relations with Italy, trade exchange between our country and Indonesia is growing, although imports declined slightly between 2017 and 2019. In fact, if imports dropped from 1.87 bn in 2017 to 1.83 bn in 2019, Italian exports increased from 1.1 billion to 1.3 billion in the same year.

Italy is Jakarta's third largest EU trading partner, but there is still very strong potential for growth, especially in traditionally strong Italian export sectors, given that Indonesia has the largest consumer class in Southeast Asia.

The areas currently offering the most opportunities are:

- Medical Devices: Currently, the medical device market in Indonesia is valued at $1 billion and is expected to grow to $1.5 billion by 2025

- Building and construction: Rapid urbanization in metropolises will result in 70% of Indonesia's population (270 MILLION) living in urban centers by 2030

- Machinery and equipment: the industrial sector is one of the sectors on which government action is focused for the country's economic development. The revitalization of manufacturing in the various production sectors, including automotive, food and packaging, textiles and footwear can offer interesting opportunities for Italian companies

- Luxury goods: The number of high net worth individuals is expected to continue to grow, expanding the base of potential consumers of luxury goods

- Electricity, gas and renewables: power plants are expected to be built in the next few years to raise power generation to 35 GW, including with supply from renewable sources

Indonesia already has the following more than seventy Italian enterprises active in various sectors, from industry to machinery, agribusiness to services and infrastructure.

Some of the most successful examples are in the gas and energy and manufacturing sectors. In fact, important Italian companies have succeeded in winning exploration blocks for hydrocarbon extraction in Indonesia, while others are registering positive growth thanks to the legacy image of some brands, known for the high quality of Made in Italy manufacturing.