Horizon Indonesia

“With nearly 40% of global GDP and growth rates exceeding 5% in several key economies, Asia-Pacific is a true accelerator of opportunities. Indonesia, with its 280 million inhabitants and dynamic digital ecosystem, is a perfect example. There are many promising sectors: energy transition, digital & fintech, agribusiness, healthcare, and infrastructure. French expertise can play a key role, but success requires strategic partnerships with local players. At Bpifrance, we help French entrepreneurs transform these opportunities into concrete successes. Asia is not something to be contemplated, it is something to be seized. Let’s build the future together.”

Elodie BARRIA
Regional Manager – Asia-Pacific – Bpifrance

KEY FIGURES

• Population : 280 million inhabitants
• GPD : 1476 billion (in USD)
• 16ème world economic power
• Currency : Indonesian Rupiah
• Exchange rate regime : administered floating

COUNTRY RISKS

• Growth vulnerability : in 2024, domestic demand would remain the main driver of GDP growth (nearly +5% according to estimates).
• Vulnerability of public accountss: the public deficit has returned below the constitutional threshold of -3% of GDP.
• External vulnerability : the slowdown in international trade and the fall in commodity prices have led to a slight current account deficit.
• Vulnerability of the banking sector : the banking system displays several parameters attesting to a certain solidity but records low liquidity ratios.

AREA OPPORTUNITIES

• Resilience of the banking sector : The Indonesian banking sector is characterized by solvency ratios exceeding Basel Committee requirements, high profitability and effective banking regulation.
• Business climate : the authorities are multiplying reforms to remove the numerous obstacles for foreign investors.
• Investment, the key to growth : the IMF is forecasting GDP growth of +5,1% per year on average over the period 2025-2029.
• Tax reform to boost revenue : after two years of high public deficit in 2020-2021, Indonesia managed to reduce it to 2,4% of GDP in 2022 then -1,6% in 2023 despite high spending to support purchasing power.

To discover the full content, check out our edition Horizon Indonesia.