The Republic of Indonesia

Indonesia is a country in Southeastern Asia, situated between the Indian Ocean and the Pacific Ocean. It has a strategic location astride major sea lanes and is an archipelago of more than 17,000 islands. Some of these islands share borders with Timor-Leste, Malaysia, and Papua New Guinea.

Income group

Upper middle income

Region

Southeast Asia

Capital

Jakarta

Currency

Indonesian Rupiah (IDR)

Administrative divisions

34 provinces (five main islands and four archipelagos)

Mainland area

1,916,906.77 km²

Internet penetration

66.5% (2024)

Mobile phone penetration

126.80% (2024)

Demographic profile

Population hit

0 M

58.9%

Urban population (2023)

41.1%​

Rural population​ (2023)

50.3%

Male (2023)

49.7%

Female (2023)

11.37%

Baby boomer (2023)

19.94%

Gen X (2023)

24.87%

Gen Y (2023)

25.53%

Gen Z (2023)

Employment profile

The labor force reached

0 M

people in 2023​

69.48%

Participation rate (2023)

94.7%

Employment rate (2023)

97%

Labour force at SMEs (2023)

9.9%

High-skilled labour ratio (2017)

US$ 222.5

Monthly average income (2023)

15.1%

Attrition rate (2023)

29.3%

Employment in Agriculture (2022)

21.9%

Employment in Industry (2022)

48.8%

Employment in Services (2022)

Economic profile​

Indonesia ranks as the

0 th

US$ 1370B

GDP (2023)

US$ 5270

GDP per capita (2023)

US$ 82B

Digital economy GMV (2023)

US$ 42B

ICT market size (2023)

99%

Percentage of MSMEs (2023)

US$ 2.85B

Total capital invested in startups (2023)

The largest economy in Southeast Asia

FDI inflows

Indonesia's foreign direct investment attracted nearly US$ 50.27 billion by 2023

Export turnovers

Indonesia's export turnovers reached US$ 258.8 billion by 2023

GDP, by industry

Manufacturing contributed the most to Indonesia's GDP in 2023

Deal value of startup funding, by industry

Marketplace startups secured the highest total funding in 2023

US$ 50.27B

FDI Inflow (2023)

Leading FDI sectors

Metal, Except Machinery, and Equipment Industry

23.4%

Transportation, Warehouse, and Telecommunication

11.2%

Chemical and Pharmaceutical Industry

9.5%

Mining

9.4%

Paper, Paper Based Goods and Printing Industry

6.8%

US$ 258.8B

Export turnovers​ (2023)

Oil and gas

Natural gas

3.4%

Oil products

2.1%

Crude oil

0.7%

Non oil and gas

Manufacturing

72.1%

Mining and other products

20%

Agricultural, Forestry and Fishery

1.7%

GDP, by industry (2023)

Top industries

Manufacturing

18.7%

Wholesale and retail trade, repair of motor vehicles and motorcycles

13%

Agriculture, forestry and fishing

12.5%

Mining and quarrying

10.5%

Construction

9.9%

Deal value of startup funding, by industry (2023)

Top industries by value (Million US$)

Marketplace

1,513

Fintech

2.1%

Aquatech

0.7%

Electric vehicles

72.1%

Healthtech

20%

Doing business in Indonesia

Opportunities & challenges

Opportunities

• A growing middle class

• Diverse natural resources

• Open policies for international investments

• Sound fiscal position

• Huge domestic market

• Low labour costs and demographic dividend

Challenges

• Exposure to shifts in Chinese demand

• Large infrastructure investment gap/low fiscal revenues

• Market fragmentation

• Lack of skilled workforce

• Highly exposed to natural disasters

Looking to expand in Indonesia?
Drop us a line

Thank you for your interest in H&CO! To help us assist you better, please complete the form.
Kindly note, responses may take some time due to the high volume of inquiries.

Scroll to Top