Located in Southeast Asia, Indonesia impresses not only with its natural resources but also with its economic growth potential. The active growth of the Indonesian economy encourages its government to continue advancing. In this article, we will explore the country's prospects, its development plans, and why you should consider investing and starting a business in Indonesia.
As the largest country in Southeast Asia, Indonesia holds a strong position on the world stage. Its territory, comparable to the size of the U.S., includes over 17,500 islands and is rich in natural resources. This wealth gives the country a competitive advantage, particularly in sectors such as mining, coal, natural gas, oil, palm oil, and the agro-industrial complex. Due to its strategically favorable geographical location, Indonesia plays a key role in international trade and shipping, controlling important maritime routes.
According to the World Bank, the country’s GDP growth will slow to 4.9% by 2024–2026 from the current 5%. The commodity boom is expected to subside, but infrastructure projects and reforms will boost both domestic and foreign investment. The service sector, including tourism, is expected to grow, while the export of goods will be limited by falling commodity prices. The country's revenue will increase thanks to tax reforms, and spending will return to pre-pandemic levels. Additionally, the report highlights the potential for economic development and stability through the reduction of greenhouse gas emissions. Transitioning to a low-carbon economy, adapted to climate change, could be the key to dynamic growth and effective poverty alleviation.
Let’s take a closer look at the Indonesian government's development plans.
The Indonesian government is committed to accelerating the development and modernization of its key industries. Since 2005, a 20-year plan has been implemented aimed at stimulating economic growth and improving the lives of its citizens. This plan is divided into 5-year stages, with the last one scheduled to be completed by 2025. Let’s examine the main directions covered in this strategy.
A fundamental aspect of the government’s plans is the development of infrastructure. This includes building new roads, bridges, and ports to ensure more efficient transportation of goods and services across the country. In addition, the expansion and modernization of airports are planned to boost international tourism.
For foreign investors and entrepreneurs, the business environment in Indonesia is becoming increasingly favorable. The government is focused on simplifying procedures for starting and running businesses, which includes removing bureaucratic barriers, reforming the tax system, and ensuring property rights protection.
The government has high hopes for the digital economy. Indonesia emphasizes the importance of developing high-tech industries and the IT sector. Efforts to create a favorable innovation ecosystem include supporting startups and attracting foreign investment in this segment.
Tourism is one of Indonesia's main economic drivers. The government plans to further develop Bali as a traditional holiday destination. Moreover, significant support will be provided to both local and foreign entrepreneurs starting a business in Bali. The next step involves promoting other, less-explored areas of the country to attract more visitors by expanding the infrastructure.
The COVID-19 pandemic has highlighted the need to strengthen the healthcare system. Expanding access to healthcare, improving the quality of services, building new high-tech clinics, and developing the pharmaceutical industry are key priorities in the coming years.
Increasing investments in the education system also occupies a central place in the government’s plans. Creating high-quality educational programs at all levels — from primary to higher education — will help train specialists essential for future economic growth.
Clean energy has become a priority development area. The government plans to reduce dependence on coal-fired power plants by actively investing in renewable energy sources such as solar, wind, and hydropower. The introduction of new technologies is expected to increase the efficiency of natural resources use.
Indonesia's path to prosperity lies in addressing the comprehensive modernization of all key sectors of its economy. By implementing these plans, significant progress is expected both at the national level and in terms of the country’s global competitiveness. With positive forecasts for continued stable economic growth, now is the best time to consider opening a business in Bali and other regions of Indonesia.
If you are interested in tapping into the potential of this country for your company, contact the specialists at Good Luck Group for reliable support at every stage of your business journey. With our help, you will register your business in Indonesia without bureaucratic hassles and unnecessary financial costs, open a bank account, and receive legal and accounting support, among other services. Send us your inquiry, and we will be happy to assist you!
