With more than one third of the ASEAN GDP, Indonesia is a key emerging market in Southeast Asia with remarkable growth rates and a burgeoning middle class. The Archipelago is the 4th most populous and the 10th largest economy in the world on a Purchasing Power Parity (PPP) basis, with an important say in international economic fora such as the WTO and G-20. The Indonesian economy has more than tripled its size in the last decade, and GDP growth in 2016 was 5.02%. Throughout 2016 Indonesia’s economy has regained a recovery momentum and macroeconomic stability has been maintained. the FDI to Indonesia grew steadily by 8.4% in 2016.
With Indonesia’s middle class expected to double to 141 million people by 2020, and household consumption accounting for 55% of GDP, increased incomes provide a massive opportunity for businesses. Over 40% of the population lie below the age of 30, are digital natives and are giving rise to the ”demographic dividend”.
Starting from 2015, Indonesia released a number of policy reform packages and legislative changes intended to stimulate the Indonesian economy. The reforms initiated by President Joko Widodo focus on improving industrial competitiveness through reducing red tape and other practical measures aimed at improving ease of doing business in Indonesia.