Why Indonesia is a Magnet for Global Manufacturing Investment

In a statement released last Friday, Nurul Ichwan, the investment promotion deputy at Indonesia’s Investment Ministry said that Indonesia is the current destination for global manufacturing sector investment, which he explained was due to several advantages.

According to reporting from Antara News, these advantages are:

  • Indonesia has the fourth-largest population in the world that can supply an adequate workforce for global corporations.
  • This is also supported by Indonesia’s demographic bonus, with the average age of workers being 30-years old. In contrast, other countries have an older workforce and experience difficulty in obtaining manpower, he pointed out.
  • In ASEAN, Indonesia is the largest country both in terms of population and economy. It is also a heavyweight based on production for the international market, which contributes 36-percent to the total ASEAN gross domestic product (GDP).
  • Indonesia is also a G20 member with a resilient economy and GDP growth of USD 1.3-trillion, with GDP per capita exceeding USD 5,000. According to data released by Bloomberg in April 2023, Indonesia is also expected to survive the recession forecast in the future, with the possibility of recession being just 2-percent.
  • Indonesia also has rich natural resources, including for the development of the electric vehicle (EV) industry. In fact, by 2025, at least 15-percent of nickel for the global EV battery industry is expected to be supplied from Indonesia.

Based on these aspects, Indonesia is the right country to become a destination for global manufacturing sector investment, Ichwan said.

To support Indonesia as a good investment destination, industrial areas that match investors’ needs have been prepared, Industrial Area Association (HKI) chairperson Sanny Iskandar said.

There are more than 100-industrial zones spread across Java and outside of Java.

The industrial area in Java Island is intended for high technology and digital industry, labor-intensive industry, and downstream industry.

Meanwhile, industrial areas outside of Java are intended for industries that have the goal of increasing the added value of natural resource-based products and industries that can trigger new economic development, say Antara News.

The development of industry investment in industrial areas across Indonesia is supported by quality infrastructure and facilities, Iskandar said, including power plants, industrial gas supply, information and communication technology networks, waste processing, toll roads, freight train lines, airports, and seaports.

Iskandar said that to support the implementation of the fourth industrial revolution, Indonesia has also developed smart-eco industrial parks complemented by eco-friendly digital infrastructure with high technology.

Indonesia is ready for the circular economy system as well as to become a digital hub, he said

Source: Antara News

Latest Article
Minister: Business Licensing Process to be Streamlined by Early 2025
Speaking at the Investor Daily Round Table (IDRT) event at the Ritz Carlton Hotel in South Jakarta on...
Giant Sea Wall Jakarta Open for Global Investors
  The Giant Sea Wall Jakarta project is a groundbreaking initiative to safeguard the city from the...
Indonesia, Microsoft Launch AI Education Program
Antara News is reporting that Microsoft has committed to invest USD 1.7 billion in a program designed...
Indonesia’s 6.5% Minimum Wage Increase: An Investment Risk?
  The Indonesian minimum wage increase in 2025 will see a 6.5% rise, a move designed to improve...
ICA-CEPA Finally Signed, Opening Market Access in North America
Antara News is reporting that after more than two years of negotiations, Indonesia and Canada have signed...

Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.

Per Fredrik Ecker

Managing Director of Seven Stones Indonesia, Jakarta

Per is the Managing Director of the Seven Stones Indonesia (SSI) Jakarta office and has more than 25-years’ experience in Indonesia, China, and Western Europe. He previously worked in senior management positions with Q-Free ASA, Siemens AG, and other companies in the telecom sector. Over the last six years, he has been the Chairman of the Indonesia-Norway Business Council (INBC) and recently become elected to be on the board of EuroCham Indonesia.

His most recent experience is within Intelligent Transport Solutions (ITS), Telecom, and other sectors within the Indonesian market. He is today through his position in SSI and by representing Norway Connect, promoting Nordic and European companies that would like to explore business opportunities in the Indonesian market. He’s also playing an active role to help create the Nordic House concept in Jakarta that will provide an excellent platform for Nordic companies entering Indonesia, where they’ll find a community that can offer support with trusted information and affordable services to enter this market.

Contact Our Consultants

Ridwan Jasin Zachrie

CFO of Seven Stones Indonesia, Jakarta

Ridwan is one of Indonesia’s top executives with a long and illustrious career in the financial world. He holds several professional certifications including being a Certified Business Valuer (CBV) issued by the Australian Academy of Finance and Management; Broker-Dealer Representative (WPPE); and The Directorship Certification for Directors and Commissioners, issued by the Indonesian Institute of Commissioners and Directors.

His experience includes being the Managing Director at one of the top investment banking groups in the region, the Recapital Group, the CFO at State-owned enterprises in fishery industry and the CEO at Tanri Abeng & Son Holding. He’s also been an Independent Commissioner in several Financial Service companies and on the Audit and Risk Committee at Bank BTPN Tbk, Berau Coal Energy Tbk, Aetra Air Jakarta as well as working for Citibank, Bank Mandiri and HSBC. His last position was as CFO at PT Citra Putra Mandiri – OSO Group.

Ridwan has won a number of prestigious awards including the Best CFO Awards 2019 (Institute of Certified Management Accountant Australia-Indonesia); Asia Pacific Young Business Leader awarded by Asia 21 Network New York USA (Tokyo 2008); UK Alumni Business Awards 2008 awarded by the British Council; and The Most Inspiring Human Resources Practitioners’ version of Human Capital Magazine 2010.

He’s a member of the Board of Trustees of the Alumni Association of the Faculty of Law, Trisakti University, Co-Founder of the Paramadina Public Policy Institute and actively writes books, publications and articles in the mass media. He co-authored “Korupsi Mengorupsi Indonesia” in 2009, which helps those with an interest in understanding governance in Indonesia and the critical issue of corruption. Ridwan speaks Indonesian and English.