Trade & Investment
From The Report: Indonesia 2024
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Indonesia has experienced strong trade surpluses and a rise in foreign direct investment in recent years, especially following the easing of Covid-19 disruptions. Since 2020 the country has implemented significant reforms in trade, investment, immigration, labour and real estate laws, making it more attractive to international businesses. Designated trade and investment zones have further boosted foreign interest. While fluctuating export receipts pose challenges, Indonesia’s focus on expanding manufacturing and mining value chains should help stabilise export value as global commodity prices recover. The Regional Comprehensive Economic Partnership agreement has also enhanced Indonesia’s access to global supply chains, further driving export and investment growth.

However, the upcoming government transition in October 2024 adds uncertainty, although initial voting results indicate a smooth shift. If the new administration continues its focus on foreign investment and economic development, Indonesia’s economic growth is expected to remain strong. The country’s policy reforms and enhanced business environment position it well to capitalise on future opportunities. With steady leadership and a commitment to expanding key sectors, Indonesia is poised for continued economic expansion in the coming years, ensuring long-term stability and growth in trade and investment.

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Overview

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Analysis

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