Executive Briefings

Indonesia Becomes More and More Attractive Place to Do Business

The Indonesian economy has surged forward to its highest level in years. While growth is expected to be 6.1 percent in 2012, on June 7 the Jakarta Globe reported the government reckons it to be 7.2 percent next year. (World Bank estimates previously had suggested 6.4% growth in GDP in 2013.)

That's not all. By the end of this year or early next year, Indonesia may join the club of 15 countries with an annual GDP of more than $1tr. In 2011, foreign direct investment reached a record $19.3bn and exports grew by 29 percent, reaching $203.62bn. Fitch Ratings in December granted Indonesia an investment-grade credit rating after 14 years of junk status, and Moody's Investors Service followed in January.

Indonesia's net foreign debt is now less than 10 percent of GDP, and a real possibility exists that the country might become a net creditor by the end of next year. Moreover, Indonesia's stock market is booming. It was one of Asia's best-performing markets, gaining 3.2 percent at a time when other exchanges suffered due to the global financial crisis. In April, the World Bank noted that "despite both domestic and international risks, Indonesia's economic fundamentals are solid."

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Keywords: international trade, 3PL, third party logistics, Indonesian trade and commerce, U.S.-Indonesia business and trade

That's not all. By the end of this year or early next year, Indonesia may join the club of 15 countries with an annual GDP of more than $1tr. In 2011, foreign direct investment reached a record $19.3bn and exports grew by 29 percent, reaching $203.62bn. Fitch Ratings in December granted Indonesia an investment-grade credit rating after 14 years of junk status, and Moody's Investors Service followed in January.

Indonesia's net foreign debt is now less than 10 percent of GDP, and a real possibility exists that the country might become a net creditor by the end of next year. Moreover, Indonesia's stock market is booming. It was one of Asia's best-performing markets, gaining 3.2 percent at a time when other exchanges suffered due to the global financial crisis. In April, the World Bank noted that "despite both domestic and international risks, Indonesia's economic fundamentals are solid."

Read Full Article


Keywords: international trade, 3PL, third party logistics, Indonesian trade and commerce, U.S.-Indonesia business and trade