Indonesia

6
Country starter pack
Introduction to Indonesia
Potential business opportunities in Indonesia abound
– and on a wide front. Austrade, the Australian
government’s overseas trade promotion agency which has
a large presence on the ground in Indonesia, has identified
a number of key areas and sectors where it believes
Australian companies and institutions have the expertise
and resources to become more actively and profitably
involved. Broadly, Austrade says the main emerging
opportunities in Indonesia for Australian businesses are
in consumer goods and services, education and training
services, knowledge-based industries and technology.
Australian businesses are highly skilled and well-resourced
in numerous consumer market segments that are part
of the burgeoning Indonesian economy. Among the
segments identified for their potential are:
• Design and product development
• New materials, market research and testing
• Retail concepts and online marketing
• Food science and processing
• Cold chain and logistics management
• Consumer finance.
A wide range of Australian service industries are also
well placed to benefit from strong growth in consumer
spending in Indonesia. Opportunities exist for businesses
involved in:
• Higher education
• Vocational education and training
• Financial and healthcare services
• ICT and telecommunications
• Tourism, recreation and leisure.
Education
The rapid expansion of Indonesia’s economy is generating
large additional demand for education, which Indonesian
tertiary institutions have been unable to meet. Demand
for more education and training services is to a large
degree being determined by skills shortages in key
Indonesian industries considered vital to the economy.
The shortage of skills training in Indonesia represents a
valuable opportunity for Australian educational institutions.
This is aided by the strong perception in Indonesia – and
indeed in some other Asian countries – that education
abroad, such as in Australian universities, and from foreign
education providers in Indonesia, is of a higher quality.
Australia is the number one destination for Indonesians
studying abroad. However – perhaps indicating the
potential for growth in the sector – Indonesia still ranks
only eighth among the sources of foreign students in
Australia across all sectors (schools, higher education,
TAFE /VET), with China and India the biggest sources.
A total of 17,151 Indonesian students were enrolled in
Australia in 2013, rising to 17,925 in 2014.
Apart from the many Australian institutions that
have been taking in Indonesian students, a number of
universities have moved to set up campuses in Indonesia
and establish partnerships with Indonesian universities.
However, competition in the international education
sector is intensifying. In response, Australia and its
institutions will have to continue working hard to promote
their image as providers of high-quality, career-focused
education.
Considering doing business in Indonesia?
1. Do your Research
• Speak to industry experts
• Connect with Australian businesses
operating in Indonesia
• Go to industry events & information
seminars
• Seek professional advice.
2. Become aware of cultural differences
and ways of doing business in Indonesia
• Gain an understanding of your customer
& local business partners
• Be flexible & open to difference
• Understand the local culture and
prepare before meeting with local
business partners
• Practise Indonesian business etiquette.
3. Building relationships is crucial in
Indonesian culture, but it can take time
• Be patient with developing relationships
• Follow up and maintain contact with
your networks.