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Guide to Doing Business in Indonesia


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Indonesia is Southeast Asia’s largest economy and while Indonesia’s annual growth slowed down to 4.5% in 2009, it expanded to 6.1% in 2010. Some economists predict that Indonesia’s economic growth may reach 8% in 2011. During the difficult global conditions of 2009, Indonesia’s economy was among the top worldwide performers. Stock market valuation was up 87% in 2009 and 46% in 2010 and from 2000 until 2010, Indonesia’s average annual GDP growth was 5.17% with a stable currency and improved sovereign credit status.

The consumer market continues to grow in the world’s fourth-largest country. There are more than 237 million citizens, 50% of whom are under the age of 30. GDP per person exceeds its Association of Southeast Asian Nations (ASEAN) neighbors such the Philippines and Indonesia has a GDP per person three times that of Vietnam. Indonesia is a thriving democracy with significant regional autonomy. It is located on the world’s major trade routes and has extensive natural resources. It is a top-ten market for U.S. agricultural products and within the top 30 overall markets for U.S. exports. Indonesia has ratified the Cape Town Treaty, which gives U.S. aircraft exporters access to financing through international protection and registration of financial interests.

U.S. goods and services trade with Indonesia totaled $20 billion in 2009 (latest data available for goods and services trade combined). Exports totaled $6.5 billion; Imports totaled $13 billion. The U.S. goods and services trade deficit with Indonesia was $7 billion in 2009.

U.S. goods exports to Indonesia in 2010 were $6.9 billion, up 35.9% ($1.8 billion) from 2009, and up 147% from 1994 (the year prior to Uruguay Round).

U.S. goods imports from Indonesia totaled $16.5 billion in 2010, up 27.3% ($3.5 billion) from 2009, and up 153% over the last 16 years.

U.S. foreign direct investment (FDI) in Indonesia (stock) was $16.0 billion in 2009 (latest data available), 1.7% decrease from 2008.

*According to Office of the United States Trade Representative

Are you aware that Indonesia currently ranks number four in East Asia Pacific in Small Medium Enterprise new to market Export Success Stories? And number two in Southeast Asia?

Wouldn't you like your company to share in that success?

Here's a few facts about Indonesia:

  • The world's fourth largest country, with a population of over 237 million.
  • #1 for Twitter user penetration in the world.

  • #2 for Facebook users in the world (behind U.S.)

  • More 3G subscribers than China.

  • GDP is growing at over 6% annually, and is expected to reach 6.8% this year.

  • In 2010, U.S. Exports to Indonesia = $6.94 billion.

  • Households with US$5,000 to US$15,000 annual disposable income expected to increase from 36% to 58% of population by 2020.

  • 60 million Indonesians projected to move up into the middle class in the next 10 years.

  • Has by far the largest economy in Southeast Asia.

  • The world's third largest democracy, with a thriving open economy.

Resources

Embassy of the Republic of Indonesia in the United States

Embassy of the United States Jakarta, Indonesia

Export.gov: Doing Business in Indonesia

Export-Import Bank Support for U.S. Exports to Indonesia
The U.S. Export Import Bank (Ex-Im) provides both export insurance and working capital for U.S. exporters and guaranteed loans for Indian importers.

Office of the U.S. Trade Representative - Indonesia
Office of the U.S. Trade Representative (USTR) is responsible for developing and coordinating U.S. international trade, commodity, and direct investment policy, and overseeing negotiations with other countries.

U.S. Department of Agriculture (USDA) - Foreign Agricultural Service
The Foreign Agricultural Service’s (FAS) Office of Agricultural Affairs represents the U.S. Department of Agriculture in Indonesia and works closely with Government of Indonesia, U.S. exporters, Indonesian importers, and Indonesian universities, as well as U.S. land grant universities.

U.S. State Department Background Notes
Background Notes include facts about the land, people, history, government, political conditions, economy, and foreign relations of independent states, some dependencies, and areas of special sovereignty.

U.S. Trade and Development Agency - South and Southeast Asia
The U.S. Trade and Development Agency (USTDA) advances economic development and U.S. commercial interests in developing and middle-income countries. The agency funds technical assistance, early investment analysis, training, reverse trade missions, and business workshops that support the development of a modern infrastructure and a fair and open trading environment.

U.S. Trade with Indonesia - US Census Bureau
U.S. trade in goods with Indonesia
 

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