Indonesia / Country Profile

Indonesia Business Guide

FLIGHTS

Direct flights are carried out to Indonesia’s capital, Jakarta and Bali, from Turkey by Turkish Airlines. It is possible to go to Jakarta Soekarno-Hatta International Airport from Istanbul 7 days a week with a flight of 11 hours and 40 minutes. You can travel from Istanbul to Bali Denpasar (Ngurah Rai Airport) with THY in 13 hours and 25 minutes.

LOCAL TIME

Western Indonesia (all provinces in Sumatra and Java, and provinces in Western and Central Kalimantan) are seven hours ahead of GMT (Greenwich Mean Time). Central Indonesia (provinces in East and South Kalimantan, all provinces in Sulawesi, Bali, West and East Nusantenggara and East Timor) are eight hours ahead of GMT. Eastern Indonesia, covering ‘Maluku and Irian Jaya provinces, is 9 hours ahead of GMT.

PHONE CODES

Indonesia: 62, Bandung: 22, Jakarta: 21, Medan: 61, Surabaya: 31

INTRODUCTION

The goal of Indonesia, the country of South-East Asia Region that attracts attention with its economic development, is to be among the top 10 countries with the largest economy in the world in the next 10 years.

Indonesia is the 4th most populous country in the world and the most populous Muslim country in the world, with a population of 267 million.

Indonesia is the 4th most populous country in the world and the most populous Muslim country in the world, with a population of 267 million.

In Indonesia, which is the first economy of South-East Asia and the 16th economy in the world, per capita national income is around 4 thousand 182 USD per year (as of the end of 2019). Mixed Economy Model is applied in the country.

In Indonesia, which is the first economy of South-East Asia and the 16th economy in the world, per capita national income is around 4 thousand 182 USD per year (as of the end of 2019). Mixed Economy Model is applied in the country.

Its total exports in 2019 were $167 billion. Its total imports in the same year amounted to 170 billion dollars. As of May 2020, the inflation rate of the country increased to 2.72%.

Its total exports in 2019 were $167 billion. Its total imports in the same year amounted to 170 billion dollars. As of May 2020, the inflation rate of the country increased to 2.72%.

Indonesia, one of the founding members of the Association of South-East Asian Nations (ASEAN), is the only G-20 member country in ASEAN.

Indonesia, one of the founding members of the Association of South-East Asian Nations (ASEAN), is the only G-20 member country in ASEAN.

Indonesia is a unitary republic. Presidential elections in the country were held for the first time in 2004 with a direct public vote. The President and Vice President are elected by a referendum for a 5-year term.

Indonesia is a unitary republic. Presidential elections in the country were held for the first time in 2004 with a direct public vote. The President and Vice President are elected by a referendum for a 5-year term.

The People’s Consultative Assembly consists of two chambers: the 560-member House of People’s Representatives (DPR) and the 136-member Regional Representatives’ Council (DPD). The People’s Consultative Assembly meets at least every 5 years and retains the powers to amend the constitution, appoint the president and vice president, and also dismiss them based on the constitutional provisions.

The People’s Consultative Assembly consists of two chambers: the 560-member House of People’s Representatives (DPR) and the 136-member Regional Representatives’ Council (DPD). The People’s Consultative Assembly meets at least every 5 years and retains the powers to amend the constitution, appoint the president and vice president, and also dismiss them based on the constitutional provisions.

Turkish citizens holding an ordinary passport are exempt from visa for up to 30 days of residence. Turkish citizens holding a diplomatic, special and service/official passport are exempt from visa for up to 30 days of residence.

Turkish citizens holding an ordinary passport are exempt from visa for up to 30 days of residence. Turkish citizens holding a diplomatic, special and service/official passport are exempt from visa for up to 30 days of residence.

Free Trade Agreement negotiations between Turkey and Indonesia are ongoing

Free Trade Agreement negotiations between Turkey and Indonesia are ongoing

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Sectoral Information

Sector Energy

Indonesia has a massive potential to generate geothermal, hydropower, tidal, and solar energy.

  • 91.17 thousand Megawatt Total Installed Capacity of Energy - 2023
  • 214.13 Gigawatt Demand for Electrical Energy (2021)
  • 3.68 thousand Gigawatt NRE potential (2023)
  • 1.04 % Contribution to GDP (2023)
Sector Trading

The government is committed to penetrating export markets to non-traditional countries and utilizing trade agreements with partner countries to increase national exports.

  • 943.8 million USD FDI (2023)
  • 258.8 billion USD Export Value (2023)
  • 12.94 % Share to GDP (2023)
  • 4.85 % Sector Growth (2023)
Sector Construction

Indonesia will continue to carry out developments so that the construction sector in Indonesia continues to show increased activity, both in housing construction and infrastructure construction.

  • 9.92 % Sector Contribution to GDP (2023)
  • 30.96 thousand person Expert Construction Workers (2023)
  • 74.22 thousand person Skilled Construction Workforce (2023)
  • 190.68 thousand Unit Number of Construction Companies (2023)
  • 1.52 quadrillion IDR Completed construction value (2023)
Sector Mining

Indonesia memiliki target produksi minyak sebesar 1 juta barrel per hari (BOPD) dan gas sebesar 12 miliar kaki kubik per hari (BSCFD). Selain itu, Indonesia juga memiliki target pengolahan mineral dalam kurun waktu 2021-2024 sebanyak 53 smelter

  • 68 Basins Unexplored Oil and Gas Basins (2021)
  • 2.41 BBO Proven Oil Reserves (2023)
  • 35.3 TSCF Proven Gas Reserves (2023)
  • 10.52 % Contribution to GDP (2023)
  • 60 Basins Explored Oil and Gas Basin (2021)
  • 5.14 billion USD FDI (2022)
Sector Fishery

Indonesia sebagai negara kepulauan terbesar dengan luas wilayah laut yang dapat dikelola sebesar 5,8 juta km2, sektor perikanan menjadi sektor yang potensial di Indonesia.

  • 0.04 % Share Export to GDP (2022)
  • 463.53 trillion IDR Production Value (2023)
  • 2.66 % Share to GDP (2023)
  • 25.7 million USD FDI (2023)
Sector Transportation

Sebagai negara yang memiliki lebih dari 17.000 pulau, menjadikan pembangunan konektivitas di Indonesia terutama di sektor transportasi darat, laut dan udara sebagai bagian penting dalam pembangunan nasional

  • 9 Project Investors-seeking PPP project (2023)
  • 5.89 % Share to GDP (2023)
  • 76.66 billion USD FDI (2023)
  • 10 Project Ongoing PPP projects (2023)
Sector Industry

Indonesia has a vision of industrialization in the 2015-2035 National Industrial Master Plan (RIPIN), which is to make Indonesia a tough industrial country characterized by a strong, deep, healthy and just industrial structure, highly competitive at the global level, and based on innovation and technology.

  • 6.78 quadrillion IDR Output Value (2023)
  • 18.7 % Contribution to GDP (2023)
  • 13.24 % Share Export to GDP (2023)
  • 28.69 billion USD FDI (2023)
Sector Agriculture

The Indonesian government aims to construct agriculture as an advanced, independent, modern sector by utilizing the latest innovations and technologies to increase added value and competitiveness in the context of import substitution and export orientation.

  • 2.04 billion USD FDI (2023)
  • 53.98 million ton Production (2023)
  • 9.87 % Share to GDP (2023)
  • 2.82 % Share Export to GDP (2023)
Sector Tourist

Indonesia sebagai negara terindah di dunia (Forbes, 2022), menawarkan daya tarik pariwisata yang sangat kompetitif, dimana terdapat 54 Taman Nasional, 5 World Cultural Heritage Area UNESCO, 10 Intangible Cultural Heritage UNESCO, 4 Natural World Heritage Area UNESCO dan 5 UNESCO Global Geopark Area.

  • 825.8 million trips Number of Local Tourists (2023)
  • 3.72 % Contribution to GDP (2023)
  • 1.63 thousand USD Average Spending of Foreign Tourists (2023)
  • 2.57 million IDR Average Spending of Local Tourists (2023)
  • 11.68 million visits Number of Foreign Tourists (2023)
Sector Finance

Amid a weakening economy and high global inflation, the Indonesian financial services sector continues to be maintained, and the intermediation performance of financial service institutions consistently grows in line with the domestic economy's performance.

  • 4.16 % Contribution to GDP (2023)
  • 6.16 % Capital Market Growth (2023)
  • 2.72 % NBFC growth (2023)
  • 11.35 % Banking Growth (2022)
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