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.
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.
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.
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.
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.
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The latest news for Italian exports to Indonesia and the main sectors in which to invest
Indonesia is the largest Asian economy after China and Japan and the tenth largest in the world, with GDP growth stable at around 5-6% according to the International Monetary Fund. An expanding middle class and infrastructure investments support domestic consumption, and in the last ten years the country’s trade has quadrupled.
Italian exports to Indonesia increased from $1.1 billion in 2017 to $1.3 billion in 2019. Italy is the third trading partner of the European Union for Jakarta, but there is still strong growth potential for Italian companies that want to increase their market share.
The sectors with the most opportunities are three. Medical devices, whose market will grow from $1 billion in 2020 to an estimated $1.5 billion by 2025. Construction and real estate, with 70% of the population living in cities by 2030. Manufacturing, which includes automotive, packaging, textile and footwear.
The Indonesian government has launched an economic development plan worth 311 billion euros until 2025. It is being implemented through public-private partnerships that favor investments by domestic companies, especially in maritime and port infrastructure. The MP3EI economic acceleration plan had already been implemented previously, which contributed to quadrupling the country’s trade in ten years.
A small and medium-sized enterprise can start exporting to Indonesia with a consulting partner who assists it in finding distributors and in dialogue with local operators. Tudertechnica, a Padua-based company that manufactures rubber and silicone pipes, has followed this path with Octagona. The local partners were crucial in overcoming language and cultural barriers.
Octagona has successfully completed 750 internationalization projects in almost 20 years. In Indonesia, it accompanied Tudertechnica, a company from Padua specializing in rubber, silicone and technical and industrial tubes, in entering the market. The project started from scratch and led to the identification of distributors and business contacts.
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