Five Best Potential Industries for Investment in Indonesia

Indonesia publishes economic achievements every year, including a projection for the next year's potential to attract foreign investment.?

This strategy aims to strengthen Indonesia’s status as the largest economy in Southeast Asia. To attract local and foreign investors, the government is working towards a business-friendly regulatory framework in the region.?

By 2023, Indonesia had attracted a total investment of IDR 1.4 trillion, with 52% originating from foreign sources. This is supported by Indonesia's expanding labor force, abundant natural resources, and strategic location as a key economic center in Southeast Asia.?

Given the favorable conditions, there is a significant opportunity to reach a total investment of IDR 1.6 trillion by the end of 2024. Singapore, China, Hong Kong, Japan, and Malaysia were the top foreign investors in Indonesia in 2023, each investing significantly in high-potential industries.

These five industries represent prime investment opportunities in Indonesia's dynamic economic landscape for 2024:

eCommerce

The growth of e-commerce in Indonesia has been fueled by the increased usage of the internet and smartphones. This is due to the rising income of the young, tech-savvy population, which has led to an estimated 131 million e-commerce users in the country.

Travel and Tourism

The travel and tourism industry contributes nearly 5% to Indonesia's growing economy, making it a promising investment prospect with a target of 17 million tourists.

Infrastructure

As part of efforts to improve infrastructure development in all regions, the government is actively promoting public-private partnerships (PPPs) in infrastructure sectors. The goal is to encourage more foreign investment in the growing infrastructure and construction industries..

Mining

Indonesia's position in the global mining sector has led to the implementation of various government initiatives aimed at supporting its growth, such as raw material export bans and measures to increase the value of mining products.. These initiatives have created further opportunities for foreign investment in this sector.

Aviation

Indonesia is the top aviation market in Southeast Asia and ranks 7th globally. Projections indicate that the demand for air travel in Indonesia will increase significantly by 2030 with around 390 million passengers expected to arrive and depart. This presents an opportunity for foreign investments to develop and expand airport infrastructure.

Capitalizing on the Market

Indonesia has a diverse range of lucrative industries that offer significant economic benefits and opportunities for both local and foreign investors. Unlock your business potential in Indonesia's promising sectors with InCorp Indonesia's high-quality services. Contact us today to get started.

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