Indonesia’s young population is central to the strong economic growth that the country has experienced over the past fifteen years. Between 2014 and 2020, no less than 53 million people are expected to join the Indonesian middle class. This means new opportunities for those companies willing to expand and increase their presence in the country.
Well aware of the many challenges faced by foreign companies – corruption, government red-tape, talent scarcity – the current government under President Joko Widodo has adopted a number of reform packages to attract investors and improve the business climate.
Swedish companies operating in Indonesia tend to be most successful when they pursue a long-term growth strategy and make real efforts to train and develop their employees. Swedish values such as openness and tolerance are also important to the daily operations. Furthermore, when asked, Swedish businesses stresses the need to deepen and develop their networks in order to build strong and long-term and business relationships. This is key in the Indonesian context.
Taking the experiences of Swedish companies in Indonesia as its starting point, Business Sweden’s report Think Big, Grow Smart, describes common obstacles encountered by businesses. The report also points to good examples of how these obstacles may be addressed and highlights areas wherein which Swedish companies have particular interest.
The “Swedish brand” is solid in Indonesia but Sweden is still underrepresented when it comes to foreign direct investments and presence. It is our hope that Think Big, Grow Smart can contribute to a shift in the conversation from “if”, to “how” your company can expand to, and in Indonesia – the world’s third largest democracy and eight biggest economy.
Trade Commissioner Anders Wickberg comments on the study: