#February2024 #ASEAN #Market #Strategy

Indonesia’s Promise: CEOs are confident but cautious

‘So long as they maintain political stability and reasonably good government, Indonesia will get money for investment. They've got consumers who want more of everything.’

‘Prabowo will win, which wouldn't necessarily be bad for business.’

‘The government has a big bet on downstreaming minerals into manufacturing. It won’t work unless they clear up all the other problems that go on in manufacturing.’

‘The Japanese auto companies are trying to partner with Indonesia to get some money from the US Inflation Reduction Act. To do so, they need to find projects clean from corruption, but they are having difficulty finding one.’

‘Start early to think about who your stakeholders are going to be. Ministers and staff within the ministries will be important to know.’

Chinese investment fueled a 27% jump in FDI into Indonesia last year, and per capita income is on track to soon reach middle-income country status of US$7,000 - when demand for consumer products takes off. However, shadows remain on the economic outlook tied to uncertainties surrounding the upcoming elections, persistent corruption, and problematic industrial policies.

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