October 20, 2021 / Internationalization

Export to Indonesia: a road ready to go

For this very reason, we point out how in recent years a’important opportunity for Italian companies eager to export abroad and increase their market share: this is the Indonesia's economic development.

Summary

Why is the Southeast Asian country so interesting?

Because Indonesia is the largest economy in Asia after China and Japan, and the tenth largest in the world with GDP growth holding steady around the 5-6% annual, according to data from the International Monetary Fund. Over the past decade, Indonesia's trade with the rest of the world has quadrupled thanks to the Plan for Economic Acceleration and Development (MP3EI), with Italy also benefiting: Italian exports in fact increased from $1.1 billion in 2017 to $1.3 billion in 2019.

Why invest here?

Since 2004, Indonesia has grown steadily at rates above the 5%, exceeding between 2010 and 2012 the 6%, despite the global crisis. Such growth has been The highest in the entire Asian region., the result of infrastructure investment and increased domestic consumption by an expanding middle class.

In the late 1990s and early new decade, Indonesia was able to emerge from a major financial crisis and build a robust democracy widely regarded as a success story, thus winning the confidence of international markets that view the Jakarta government's prudent fiscal and monetary policies favorably.

In addition, the government has launched an economic development plan worth 311 billion euros until 2025, to be pursued through public-private partnerships that encourage investment by domestic companies especially in the maritime and port infrastructure sector.

Made in Italy in Indonesia

In addition, l’Italy is Jakarta's third-largest EU trading partner', but there is still very strong growth potential for Italian companies. The sectors currently offering the most opportunities are:

- Medical Devices: market value will increase from $1 billion (2020) to $1.5 billion (estimated by 2025);
- Building and construction: The country's development will result in 70% of Indonesia's population living in urban centers by 2030;
- Manufacturing sector: the government's action is pushing the industrial sector in different manufacturing sectors, such as automotive, packaging, textile and footwear.

Octagona's experience in Indonesia

There are already many active Italian companies in Indonesia in the sectors highlighted above, some of them very successful. We at Octagona we can say that we have contributed to this growth by accompanying abroad Tudertechnica, a Padua-based company engaged in the manufacture of rubber, silicone, industrial, technical, rigid mandarin, flexible, high-performance and low-pressure hoses.

“Octagona has allowed us to start from scratch our internationalization process in the Indonesian market and to find distributors with whom we have made excellent business contacts. The quality and success of the project can definitely be attributed to the Collaboration between Octagona and local partners: essential to overcome the language and cultural barriers that arise.”.

The numbers show a strong trend: Indonesia is experiencing a period of expansion, and products Made in Italy Are already the most appreciated ones. The road is already mapped out and ready to be walked, just as Tudertechnica is doing.

Octagona can point you to and accompany you in seizing market opportunities and thus supporting the growth of your business. Our experience, the result of 750 projects of internationalization successfully completed in nearly 20 years, enabled Tudertechnica to enter the Indonesian market from scratch.

Do you want to seize the right opportunities? The next successful company in Indonesia could be your own. Click below and fill out the form to find out: we will contact you to study the best solution with you.