Global Trade Growth continues to reshape international markets, and Indonesia has emerged as one of the top six countries leading this realignment. According to Standard Chartered’s Future of Trade: Resilience report, more than one in five global companies plan to increase or maintain trade and manufacturing activities in Indonesia over the next three to five years. This recognition highlights Indonesia’s rising importance in the global economy.
Indonesia Strengthens Global Supply Chain Role
Indonesia holds a strategic position in the regional and global supply chain. As Southeast Asia’s largest economy, it benefits from a young population, an expanding middle class, and strong connectivity with ASEAN and other key trade partners.
Trade corridors with Malaysia, Mainland China, Vietnam, and Thailand are expected to further enhance Indonesia’s supply chain integration. These factors position the country as a vital hub for sourcing and manufacturing.
Global Trade Growth Highlights Indonesia’s Future Potential
The Future of Trade: Resilience survey revealed Indonesia’s growing appeal among global firms. Over 20% of surveyed companies plan to strengthen trade and manufacturing ties with the country.
This reinforces Indonesia’s role as a preferred destination for businesses looking to diversify operations and build resilience. The findings show that while global trade faces challenges, Indonesia offers strong opportunities for expansion. Its scale, demographics, and strategic location make it a key player in shaping the trajectory of global trade growth.
Geopolitical Risks and Rising Costs Impact Trade
Despite optimism, the survey highlighted challenges that may affect future trade. A total of 76% of respondents identified geopolitical conflict as the leading risk. Meanwhile, 54% pointed to climate change and trade tariffs as significant factors. Rising costs remain another concern.
The report noted that 84% of Indonesian companies expect the cost of goods to increase by 10% to 19% in the medium term. On a global scale, six out of ten companies anticipate price increases between 5% and 14% over the coming years. These trends underscore the complexity of the future of trade.
AI and Smart Manufacturing Boost Supply Chain Resilience
To address mounting pressures, companies are adopting new strategies to enhance supply chain resilience. Many are restructuring operations, strengthening cash management, and accelerating digitalization. Artificial intelligence and smart manufacturing are playing a crucial role in boosting efficiency and reducing costs.
Sunil Kaushal, Global Co-head of Corporate & Investment Banking and CEO of ASEAN and South Asia at Standard Chartered, emphasized this trend. He stated, “Although trade fragmentation may pose short-term challenges to global growth, rising prosperity in developing countries and the adoption of new technologies keep the outlook for global trade promising.”
Indonesia Positioned as Top Trade Partner
Indonesia’s recognition among the top six countries underscores its growing role in global trade. Donny Donosepoetro OBE, CEO of Standard Chartered Indonesia, highlighted its significance. He said, “With our global network and local expertise, Standard Chartered is ready to support our clients in facing challenges, seizing opportunities, and contributing to Indonesia’s economic growth.”
His remarks reflect how global businesses increasingly view Indonesia as a strategic partner in building resilient and future-oriented supply chains. With strong trade connectivity and supportive policies, Indonesia is well-positioned to attract further investment.
Indonesia’s Trade Future Remains Bright
Indonesia’s inclusion among the top six countries in the Future of Trade: Resilience report reflects its rising global profile. As global trade growth continues, Indonesia stands out for its strategic advantages and readiness to adapt to new challenges.
By leveraging technology, strengthening resilience, and maintaining strong regional ties, the country is well-placed to capture opportunities in an evolving global marketplace. The future of trade may be complex, but Indonesia’s trajectory remains promising.
Source: cnbcindonesia.com
Image: Getty Images
