The culturally-rich Indonesia has among the largest economy in Southeast Asia and the world’s emerging market. Being a member of G20, Indonesia is known for its fast growing economy over the past few years. Lincoln group cited that business opportunities in Indonesia will keep growing. In 2019, Indonesia’s population has reached more than 260 million, making it the 4th most populated country in the world. This huge number of population has led Indonesia to be the key access of qualified local talent pools.
See also: Majority Women in Indonesia Believe Beauty Leads to Career Success: Report
Parag Khanna in Fast Company reported that Asian growth will continue to surge. Almost all the world’s fastest-growing economies are in Asia, including Indonesia. Thanks to the government’s efforts to improve the country’s business environment and attract foreign investment by upgrading its infrastructure, prosecuting corruption, and taking other steps to improve regulatory environment, Indonesia was named among the highest growth in the country in 2018.
Owing to the ongoing development of more infrastructure and other improvements, Indonesia has been successfully increasing its GDP growth. Asian Development Bank showed that GDP in Indonesia has increased 5.2 percent in the fourth quarter of 2018. In 2030, GDP growth rate is predicted to rise by 5.3 percent.
Not only GDP, Financial Times (FT) also cited that Indonesia is the world’s seventh-largest economy at purchasing power parity (PPP) by 2020. This rate is predicted to overtake Russian economy by 2023 as the sixth biggest. This improvement is predicted to help the country to be the leading market across Asia and the world.
McKinsey report also found similar findings. As cited in McKinsey report, Indonesia is the 16th largest economy in the world. As the fastest-growing urban centres with more than two million inhabitants, 45 million members of Indonesia are in consuming class that make it good for Indonesia to better its GDP. Additionally, McKinsey predicted that by 2030, Indonesia would add 90 million people to its consuming class. This shows a vital statistic that Indonesia will rely more on consumption rather than exports and manufacturing.
McKinsey also revealed that although Indonesia in a growing market and could be the next in market all over the world, the movement is not going to be easy. Indonesia needs to boost its productivity growth to 4.6 percent a year. This boost is 60 percent higher than past decade.
Nonetheless, McKinsey believes that Indonesia can tackle barriers in four key areas of economy that have significant potential. Three of the four are related to consumer services, agriculture and fisheries, and resources. The fourth problem is building worker skills to enable further diversification of economy. Although Indonesia will face barriers in becoming the next economy market, its growing efforts is undoubtedly one to watch.
Read also: Inclusive HR Indonesia: HR Community Present in Inclusiveness and Social Mission
