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 remaining stable at around 5-6%. 

Over the past ten years Indonesia's trade with the rest of the world has quadrupled thanks to the plan for economic acceleration and development (MP3EI), with which the Indonesian government has set itself the goal of becoming one of the most developed economies by 2025. 

As regards relations with Italy, trade between our country and Indonesia is growing, even if imports decreased slightly between 2017 and 2019. In fact, if imports decreased from 1.87 billion in 2017 to 1.83 billion in 2019, Italian exports went from 1.1 billion to 1.3 billion in the same year.

Italy is Jakarta's third EU trading partner, but there is still a very strong growth potential, above all in the traditionally strong sectors of Italian exports, given and considering that Indonesia has the largest consumer class in Southeast Asia.

The sectors that currently offer the most opportunities are:

– Medical Devices: Indonesia's medical device market is currently valued at $1 billion and is projected to grow to $1.5 billion by 2025

– Building and construction: Rapid urbanization in metropolises will lead 70% of the Indonesian population (270 million) to live in urban centers by 2030

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

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

– Electricity, gas and renewables: the construction of power stations to raise electricity production to 35 GW is expected in the next few years, also with supply from renewable sources

They are already present in Indonesia over seventy Italian companies active in various sectors, from industry to machinery, from agro-food to services and infrastructures.

Some of the most successful examples concern the gas and energy sector and manufacturing. In fact, important Italian companies have managed to win exploration blocks for the extraction of hydrocarbons in Indonesia, while others are recording positive growth thanks to the image inherited from the past of some brands, known for the high quality of Made in Italy manufacturing.