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Business and Tourism

Indonesia continues to boast significant economic growth. According to the World Bank, the country’s gross national income per capita has steadily risen from $2,200 in the year 2000 to $3,563 in 2012. Meanwhile, in terms of macroeconomic stability, Indonesia has managed to fulfill many of its fiscal targets, including a significant drop in Debt-to-GDP ratio from 61 percent in 2003 to 24 percent in 2012.

The current development policy is divided into 6 corridors, each specifically planned to boost development in the regions according to their potentials and characteristics, also in terms of trade and investment. The said corridors are:

  • Economic corridor of Sumatra
  • Economic corridor of Java
  • Economic corridor of Kalimantan/Borneo
  • Economic corridor of Sulawesi
  • Economic corridor of Bali and Nusa Tenggara
  • Economic corridor of Papua and Maluku Islands

The policy has paid of, and each corridor continuously developing to their potentials. 

In terms of trade, Indonesian Bureau of Statistics noted that the trade balance surplus continuously also increasing. Growth in export, alligned with decreasing imports, boost trade surplus. (link here)

In investment, report by Schroders Global Investment Trends Report 2014, which involved 15,749 investors from 23 countries, including over 200 respondents from Indonesia shows that the level of confidence of Indonesian investors is the third-highest in the world, behind only India and Thailand, thanks to a positive economic outlook and a belief that investments will outperform savings.

The survey, conducted in January 2014, focused on investors looking to invest at least US$ 13,755 in the next 12 months. 76 percent of Indonesian investors exhibited confidence in the opportunities for investing this year. The level of confidence among Indonesian investors is higher than the global average, at 56 percent, and the Asian region’s average of 66 percent. (link here)

While trade and investment contributes greatly to Indonesian economy, tourism also has a prominent part in the economy. The World Travel & Tourism Council (WTTC) stated Indonesia's tourist sector recorded the highest growth of all G20 economies. WTTC recent data showed the country's tourism could contribute 8.4 percent to the nation's economy.

The council’s 2014 economic effect report said Indonesia recorded double digit growth in both international and domestic visitor expenditure, with 15.1 percent and 7.2 percent, respectively. Indonesia is indeed experiencing fast economic growth; its growing middle class travels a lot for business and leisure purposes.

There had been a high increase in the number of foreign tourists visiting the country, which had contributed to the nation's foreign exchange. WTTC’s research predicted the contribution of tourism to Indonesia's overall economy in 2014 would grow to 8.1 percent. The growth of international tourists to the archipelago was projected to reach 14.2 percent, exceeding the average growth of domestic tourists that was predicted to increase by 6.3 percent.

WTTC reported the tourist industry contributed US$7 trillion to the global economy throughout 2013. In 2014, the figure was projected to increase by 4.2 percent. Meanwhile, the contribution of this sector to labor, whether directly and indirectly, was 226 million jobs or 8.9 percent of total workers.  (link here)

 

 

To learn more about business and tourism in Indonesia, kindly visit the links below:

Trade

– Tourism

Investment

How to do Business in Indonesia