Industry
From The Report: Indonesia 2018
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As the largest economy in South-east Asia and the 10th-largest worldwide in terms of purchasing power parity, Indonesia’s vastly expanding middle-income base has enticed an influx of international manufacturers over the years. These factors have allowed the sector to perform well over the last decade, despite the global economic slowdown in consumption. Industry has long served as a vital engine of growth for the Indonesian economy, and it continues to play a pivotal role in the development of the business climate.

This chapter contains interviews with Airlangga Hartarto, Minister of Industry; Rosan Roeslani, Chairman, Indonesian Chamber of Commerce and Industry; and Hemant Bakshi, President Director, Unilever Indonesia.

Articles from this Chapter

Overview

Elevating productivity: Strides made in widening markets and easing reliance on imports
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As the largest economy in South-east Asia and the 10th-largest worldwide in terms of purchasing power parity, Indonesia’s vastly expanding middle-income base has enticed an influx of international manufacturers over the years. These factors have allowed the sector to perform sturdily over the last decade, despite the global economic slowdown in consumption. Industry has long served as a vital engine of growth for the Indonesian economy and it continues to play a pivotal role in the development…

Interview

Growing stronger: Airlangga Hartarto, Minister of Industry, on promoting industrialisation throughout Indonesia
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Interview: Airlangga Hartarto What is your view of the challenges facing the expansion of industrial activity in Indonesia? AIRLANGGA HARTARTO: The industrial sector is aware that the global economy is facing challenging times. What we are looking to do is to further enhance Indonesian industry under the challenge of lower economic growth. Our emphasis in the beginning will first be on the export side, promoting export-orientated industry that is more labour intensive. The next step will be promoting…

Analysis

Funding progress: New measures to improve access to finance for small businesses
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Even though Indonesia’s government has implemented a range of measures that seek to foster growth in the manufacturing sector – including enhanced investment incentives and the development of industrial zones – small businesses remain challenged by several fundamental structural issues that hinder their ability to access credit. The nation has welcomed the entrance of international manufacturers over the years, but the segment is still dominated by micro- and small enterprises, with…

Interview

Building up: Rosan Roeslani, Chairman, Indonesian Chamber of Commerce and Industry (KADIN), on strengthening competitiveness
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Interview: Rosan Roeslani What fiscal measures are needed to add higher value in the manufacturing sector? ROSAN ROESLANI: For more than 10 years we have enjoyed the boom of commodities, and this made us lag behind in building our manufacturing industry. Now the government has realised that we need to have a strong, healthy and sustainable manufacturing industry, and is giving a lot of incentives and promoting special economic zones. The political will is there, and the government has issued 14…

Interview

Emerging markets: Hemant Bakshi, President Director, Unilever Indonesia, on adapting to changing demands
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Interview:Hemant Bakshi What is the overall growth potential for the consumer goods sector in the near future? HEMANT BAKSHI: Overall, we are quite optimistic. We have a young population becoming more and more technologically savvy and people are willing to try new things. Consumption is something that Indonesians are quite excited about, so we believe that this will be a stable and fast-growing economy in the future. There are some amazing opportunities for consumer products companies like…

Analysis

Accelerating productivity: Car production drives economic growth as the country establishes itself as a regional automotive centre
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Driven by ambitious government targets, the Indonesian automotive industry is shifting into a higher gear, with plans for the industry to overtake Thailand as the largest car production centre in the ASEAN region. As a key pillar of the Indonesian economy, the car manufacturing segment continues to attract much-needed foreign capital, while also boosting employment figures. On the back of growing demand from an expanding middle class and sizeable investments from Japanese manufacturers,…

Analysis

Raising the bar: Initiatives are providing the workforce with competitive skills to create more efficient, labour-intensive industries
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With expansion being driven by its low-cost workforce, the progress of Indonesia’s manufacturing segment has bolstered employment figures over the years, providing 15.5m jobs and contributing 20.5% to GDP in 2016. With increased investment across a variety of subsectors, employment in the manufacturing sector is expected to grow by 5% in 2017 to a total of 16.3m workers, making the sector the fourth-largest employer behind the agriculture, trade and services sectors, which provide 37.8m,…