Indonesia, the largest economy in Southeast Asia, is a member of the G20 and a powerhouse within the ASEAN region. With over 250 million inhabitants, the country is Canada’s largest trading partner and top investment destination in the region. While commodities continue to drive economic growth, the Indonesian government is taking steps to rebalance the economy and focus more on manufacturing. Not only will this diversify the economy, it will also help to serve the middle class’ demand for modern consumer goods and technologies. Indonesia has many opportunities in a variety of sectors, however, bureaucracy, lack of transparency and inadequate infrastructure continue to threaten investors. That said, the government has committed itself to combatting these issues and the business environment is showing signs of improvement. To succeed in Indonesia, Canadian companies must be prepared to invest time and resources to develop the necessary local relationships and conduct strong due diligence prior to entering the market.
- Oil & Gas