Market Studies Indonesia | Invest Islands




Heading into 2020 and before the COVID-19 pandemic, the Indonesian economy was sustaining growth rates hovering around 5% a year. McKinsey analysts suggest that, with focused effort, Indonesia has the potential to become the worlds seventh-largest economy within a decade of recovering from the pandemic.

The governments conservative fiscal and monetary policies have kept the national debt relatively low at 29 percent of national GDP. Inflation rates are also still within the Central Banks target range, keeping Indonesias economic outlook stable and manageable.

“By 2050 we project China will be the largest economy in the world by a significant margin, while India could have edged past the US into second and Indonesia have risen to fourth. The EU27s share of global GDP could have fallen to below 10%. We also think the world economy will more than double in size between now and 2050, far outstripping population growth.” — International professional services firm PwC in its The World In 2050 report.


Renowned financial organisations such as Standard Chartered, Ernst & Young, Jones Lang La Salle, Knight Frank, and PWC have all recently cited their opinions on what is happening in Indonesia. At Invest Islands we believe this further confirms that Indonesia is the current place to be for investors.


World‘s Largest Archipelagic Country

With approximately 17,000 islands, Indonesia occupies a strategic location along major sea-lanes between East and West Asia.


World’s Fourth Most Populous Country

Indonesia’s population of a little under 250 million positions it behind only China, India and the US. It is home to a consumer class of 135 million, a sure sign of a growing middle- and upper-class with high purchasing power.


Largest Economy in South East Asia

Indonesia is also the only member of the G-20. Due to strong economic and demographic Indonesian potential, Standard Chartered projects Indonesia will be part of the G7 by 2040. It is also predicted to be the seventh largest economy in the world by 2030.


Strong Democracy

In spite of its vast cultural diversity, Indonesia is a nation largely united, with the agility and flexibility to meet future needs and development.

National motto: “Unity in diversity”


245 National Strategic Infrastructure Projects

Covering six development regions, the Indonesian Government is building new airports and seaports across the country as it widens its doors to trade and tourism. The country is also improving electrical capacity with an additional 35.000 MW


10 “New Balis” Plan

The tourism diversification project aims to replicate the economic effects of tourism in Bali nationwide and has earmarked 10 areas of the country for massive investment.


High Investment Incentives

With recent law changes set to improve ease of business in Indonesia, the country is focused on attracting more foreign direct investment.


Rich in Natural Resources

Indonesia already produces goods for Asian markets, but is also growing in global trade too.

10 New Balis

The Indonesian Ministry of Tourism has listed the destinations earmarked under the 10 New Balis plan for further development, which includes the upgrading of airports and construction of new amenities.

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