Rich in natural resources, with a rapidly growing middle class and a young, well-educated population, Indonesia offers significant business opportunities.

– Both the public and private sectors are seeking Swedish innovations, quality products, and sustainable solutions. Companies in consumer goods, manufacturing, infrastructure, and healthcare will find many interesting opportunities, says Erik Odar, Sweden’s Trade Commissioner in Indonesia.

Private consumption accounts for around 60 percent of the country’s GDP. Rising purchasing power, a tech-savvy workforce, and extensive public investment programs are driving growth and opening up new markets. More and more international companies are now choosing to expand their presence in the country.

To further promote growth, the Indonesian government has launched extensive reforms, including tax incentives and investments in new industrial zones.

One of the world’s leading manufacturing nations

Indonesia, which stretches across nearly 14,000 islands from Sumatra in the west to New Guinea in the east, presents geographic challenges. This creates strong demand for solutions and services that facilitate delivery, logistics, and remote collaboration.

Today, the country is one of the world’s ten largest manufacturing nations, and the extensive public investments are generating new business opportunities across a range of sectors. Indonesia is also actively working to reduce its dependence on coal and is investing heavily in renewable energy, with plans to add over 75 gigawatts of solar and wind power from new installations in the coming years.

Personal contact is highly valued

Swedish companies have a long history in Indonesia. Ericsson established operations here as early as 1907, and today, around 80 Swedish companies are active in the country. Interest is growing, but there are also challenges to be aware of, notes Erik Odar:

– Regulations change frequently and can be difficult to keep up with. Many rules are also designed to favor local production and the use of domestic partners, which companies need to plan for. Corruption is another risk to be aware of. The most important thing is to prepare thoroughly, seek advice from local experts, and invest time in building strong relationships. In Indonesia, as in many other Asian countries, personal connections often carry as much weight as the product itself.