Sector-specific opportunities


You should carry out as much market research and planning as possible before exporting to Indonesia, using both desk research and visits to the market. You need to determine if there is a market for your product or service and whether your pricing is competitive.

DIT’s trade specialists can help you identify local representatives for your products in Indonesia. See:

DIT provides free international export sales leads from its worldwide network. Find export opportunities in Indonesia at:


Government tenders in Indonesia

It is recommended a local agent or distributor is used for most government procurement, as successful bids are often based on long-established relationships, and participants not well-known in the market may be excluded.

The Indonesian National Planning Agency (BAPPENAS) at: (site not in English) provides official lists of major projects identified by the government which are open to foreign bidders.


Advanced engineering and marine

Significant investment is needed in education and vocational training, as well as industrial equipment due to:

  • capacity and capability constraints of Indonesian manufacturing sector

  • growth in number of foreign companies setting up manufacturing and assembly operations under the Java Integrated Industrial and Port Estate initiative. See:

Indonesia aims to become a global maritime axis taking advantage of its location along some of the world’s busiest sea lanes. The Batam-Bintan-Karimun Free Trade Zone (FTZ) is being developed into a shipbuilding centre. See:

Opportunities include:

  • shipyards and shipbuilding

  • maritime, aerospace, automotive

  • manufacture of machinery, components and parts

  • assembly of components and parts

  • industrial and packaging machinery

  • health and safety equipment

Contact Deputy Director of Trade and Investment: for more information on advanced engineering and marine opportunities.

[Source: DIT/]


Consumer and retail

The Indonesian retail sector is huge and continues to grow faster than the overall economy as a result of:

  • rising incomes

  • increasing population

  • changes in middle-class lifestyles

Increasing numbers of global brands are entering the market for the first time or expanding by adding retail stores or brand portfolios.

There are promising opportunities for UK brands to establish a presence in the market.

Opportunities exist in:

  • fashion for clothing, footwear, accessories, sportswear

  • baby products

  • personal care including personal hygiene and cosmetics

Contact Trade and Investment Manager: more information on consumer and retail opportunities.

[Source: DIT/]


Defence and security

Indonesia intends to increase its defence budget from the current 0.8% of GDP to 1.5% of GDP by 2019. Militarily, the plan is to achieve its goal of a Minimum Essential Force by 2024. This involves substantial increases in capability for all three services of the Tentara Nasional Indonesia (TNI) including:

  • fighter jets and surveillance aircraft

  • main and medium battle tanks

  • offshore patrol vessels and submarines

The Indonesian Government is focused on building a self-sufficient local defence industry. Regulations and offset policy are aimed at ensuring:

  • local purchase where possible

  • foreign companies partner with Indonesian companies (especially the major State Owned Enterprises: PT PAL, PT Pindad and PT Dirgantara Indonesia) if local purchase not possible

  • technology transfer is included for non-local purchase

Current local capability means that sophisticated equipment is still bought overseas and this is where opportunities lie for UK companies.

Disaster response is one of TNI’s roles. Humanitarian operations are planned in concert with other agencies such as BASARNAS ( and the National Disaster Management Authority, BNPB (

Indonesia’s maritime vision for the Navy and newly-formed coastguard (Bakamia) involves maritime surveillance and security to prevent incursions on sovereignty such as illegal fishing. See:

The Indonesian Police have a particular focus on cyber security and counter-terrorism.

Contact the UK Government’s Export Control Joint Unit (ECJU) at: to check your goods you are meeting legal requirements for export.

Contact Trade and Investment Manager: tom.o’ for more information on defence and security opportunities. 

[Source: DIT/]



With a population of 260 million, the Indonesian school system is the third-largest education system in the Asia region and the fourth largest in the world. It comprises over 50 million students and 2.6 million teachers in more than 250,000 schools, 92 Public Higher Education Institutes and over 3,000 private universities.

Indonesia also hosts over 8,000 international students and sends over 84,000 Indonesians abroad for study each year.

Education is central to the Indonesian Government’s development agenda and spending has increased significantly in the years since the economic crisis, now accounting for over 20% of total government spending.

Two ministries are responsible for managing the education system. 84% of schools are under the Ministry of Education and Culture ( and the rest under the Ministry of Religious Affairs ( The system is large and highly decentralised, with more than 500 district governments playing a strong role in its management.

Indonesia has a 100% enrolment rate for primary level education, whilst enrolment for secondary and tertiary levels are 62% and 16% respectively.

Private schools play an important role too, making up:

  • 7% of primary schools

  • 56% of junior secondary

  • 67% of senior secondary

The sector is developing due to:

  • government reform programme designed to lift educational standards

  • growing middle class with more money to spend on education

There are opportunities for UK institutions to establish a presence in the market and also in:

  • vocational training

  • private English language training

  • corporate training

  • teacher recruitment

  • teacher training

Contact Senior Trade and Investment Manager: for more information on education opportunities.

[Source: DIT/]


Financial services

Indonesia is home to 120 commercial banks. Less than 50% of the population has access to finance and the banking industry is only growing at 10% annually.

IT spending in the finance sector is expected to grow and focus on adoption of financial technology (fintech).

Indonesia has the world’s largest Muslim population making up 12.9% of the world’s total. Sharia finance was only 4.9% of Indonesia’s £278 billion total banking assets in 2014 despite nearly 90% of the 250 million population adhering to Islam. This is low compared to Malaysia where Islamic banks held 21% of total market share of £398 billion assets in 2014 despite only 61% of the 61 million Malaysian population being Muslim.

Opportunities for UK firms include:

  • sukuk bond issuance

  • Islamic finance legal advice

  • Islamic finance best practice and capacity building through training courses and degrees

  • core banking system upgrades

  • credit risk management solutions

  • deposit/loan and microfinance software and hardware

  • training for the human resources

Contact Senior Trade and Investment Manager: for more information on financial services opportunities.

[Source: DIT/]


ICT and creative industries

Indonesia is emerging as a major market for ICT. Indonesia is the fourth-largest mobile market in the world and in the world’s top ten 3G markets.

Indonesia has established a creative economy agency to support its creative industries and strengthen economic development.

There are opportunities in:

  • e-commerce

  • digital content for gaming and mobile applications

  • media content for film and animation

  • digitisation of television broadcasting

  • advertising technology and content

Contact Trade and Investment Manager: more information on ICT and creative industries opportunities.

[Source: DIT/]


Infrastructure and transportation

The Indonesian Government plans to spend £276 billion to deliver major infrastructure plans in the transportation sector. £84.6 billion of this will be through Public Private Partnerships (PPP).

Opportunities for the UK are in:

  • pre-feasibility studies

  • technical advisory

  • architectural design

  • financial and legal advisory

  • project management

  • operation and maintenance

The major infrastructure projects in Indonesia are:

  • Soekarno-Hatta Intenational Airport Rail Link (SHIARL)

  • Soekarno-Hatta International Airport terminal expansion

  • Jakarta Mass Rapid Transit

  • Bandung Light Rail Transit

  • Surabaya Mass Rapid Transit

  • Kertajati (West Java) Airport

  • Kulonprogo (Jogjakarta) Airport

Contact Senior Trade and Investment Manager: for more information on infrastructure opportunities.

[Source: DIT/]


Oil and gas

The oil and gas industry remains strategic to the economic development of Indonesia. The country has abundant energy resources with available reserves amounting to:

  • 3.6 billion barrels of oil

  • 104.4 trillion cubic feet (tcf) of proven natural gas reserves

It is estimated that around US $1.7 billion will be spent on the development of deepwater exploration and production in Indonesia in coming years. There will be significant opportunities for:

  • drilling and completion

  • equipment

  • pipelines

  • control lines

Other opportunities exist in:

  • Enhanced Oil Recovery (EOR) technology to increase oil production

  • supply of subsea equipment and services

  • Liquefied Natural Gas (LNG) receiving terminals and re-gas facilities

  • education and training

  • coalbed methane (CBM) and potentially shale gas

Contact Senior Trade and Investment Manager: more information on oil and gas opportunities.

[Source: DIT/]


Power generation

New power plants and electricity infrastructure development is urgently needed due to:

  • government aim to provide electricity access to 91% of Indonesia’s population by 2019; only 75% currently have access

  • 6-7% economic growth projection expected to increase demand

  • electricity demand growing at around 7% to 9% per annum

As a result Indonesia has a plan to increase power generation by 35,000 MW within the five years 2015 to 2019. PLN, a state-owned power utility company, which currently provides 85% of electricity capacity, will build power plants to produce an extra 10,000 MW, see: The rest will come from Independent Power Producers (IPPs).

The government allows foreign investors to have 95% ownership of power plant projects, built under PPP, during the project concession period.

Opportunities in the power sector include the need for:

  • construction of new power plants (mostly coal-fired plants)

  • development of transmission and distribution network

  • substation equipment

  • refurbishment and upgrade of state-owned generating plants

  • asset management

Contact Senior Trade and Investment Manager: or more information on power generation opportunities.

[Source: DIT/]


Renewable energy

The government has set a target to increase use of renewable energy from 6% at present to at least 23% in 2025. There are Feed-In Tariff (FIT) schemes to encourage the growth of renewable energy projects. They are available for biomass, biogas and municipal waste.

Indonesia has 40% of the world’s known geothermal resources.

There are opportunities for projects in:

  • biomass

  • hydropower

  • solar

  • wind

  • geothermal

The government is also funding multi-million dollar water and waste management projects, mainly through PPP.

Contact Senior Trade and Investment Manager: more information on renewable energy, waste and water opportunities

[Source: DIT/]


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