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Manufacturing | Consumer Goods
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Indonesia Raises Import Tariffs on Consumer Goods

As the latest step taken by a government looking to address slowing growth in Southeast Asia’s largest economy, Indonesia in July 2015 moved forward with plans to raise import tariffs on a broad array of consumer goods including coffee, tea, meat, cars and clothing.

Creative Industries

Indonesia’s Creative Industry: Set to Become the Next Economic Powerhouse

Indonesia’s creative industry is forecasted to become a new economic driver for the country. In order to achieve this, the government has prepared a number of incentives to facilitate investments to the sector.

Indonesia's Creative Economy & Heritage Products – A Wealth of Opportunities

Indonesia's rich cultural heritage reflects in its long history of crafts, arts and entertainment and provides a valuable foundation for the creative industries. To fully realize their export potential, however, producers need to sustain sufficient quantities of consistent quality.

Electronic Components

Indonesia’s Electronic Component Sector: 4G Smartphones A Future Growth Driver

Despite Indonesia having one of the largest number of cell phone users in the world, the sector’s contribution to the country’s economy is still low due to the reliance on imported devices.

Electronics and Home Appliances Manufacturing in Indonesia; Finding its Edge

Indonesian consumers keenly spend their rising personal earnings on electronics and home appliances. Setting up shop in Southeast Asia's largest economy offers global manufacturers of consumer electronics the chance to tap rising demand in Indonesia and the wider region.

Indonesia’s Electronics and Home Appliances Sector

Indonesia’s domestic market for electronics has been showing a broad upward trend for the past decade in line with improved per capita purchasing power and greater consumer sophistication. This section looks at the changes in consumer habits and the main players in the industry.

Rising Local Content Requirements for 4G Smartphones in Indonesia

Indonesia in early 2015 issued a draft regulation mandating the use of at least 40% local content in the manufacture of 4G smartphones sold within the country. Scheduled for implementation on 1st January 2017, this law brings about new opportunities to cooperate with local OEMs.

A Look into Indonesia’s Special Economic Zones

Buoyed by the success of the country’s existing FTZs, the Indonesian government in early 2014 announced its plans to develop three areas into new special economic zones. The introduction of these zones comes at a key time as neighbouring countries also begin gearing up to attract investment in the lead up to the ASEAN One Market in 2015.

Furniture

Indonesia’s Furniture Industry: Competitive Advantages Hampered by Bureaucracy

Indonesia has long been known as one of the world's leading furniture manufacturers. However, various bureaucratic hurdles have hampered the growth of this sector.

Indonesia’s Furniture Sector; Sitting Comfortably

Local furniture manufacturers have flourished over the past decade and are on course to further reap the benefits of Indonesia’s growing prominence as a furniture producer following the implementation of a legal verification system for timber sourcing.

Indonesia's Furniture and Homeware Sector

Indonesia has an established reputation within the furniture and handicrafts sector within the regional and global market due to the country’s strong historical traditions in woodwork and artistic crafts such as batik. This article looks at some of the key trends and business opportunities in the sector.

Trading Timber: Business Insights into the Indonesia-EU VPA

On the 30th of September 2013, Indonesia and the European Union signed a landmark Voluntary Partnership Agreement (VPA) a move that is expected to boost the country’s already burgeoning timber industry and open up opportunities in related sectors.

Indonesia Manufacturing Snapshot

Contribution to GDP: 18% (2015)
Sector Growth: 5.5% (yoy, 2015)
Number Employed in the Sector: 16 million (2016)
Highest Minimum Wage by Province: 3,350,000 IDR/month (DKI Jakarta)
Lowest Minimum Wage by Province: 1,631,245 IDR/month (West Nusa Tenggara)
Main Areas: Automotive, Electronics, Textile & Garment, Footwear, Food & Beverages, Metal Products, Chemicals.
Main Export Markets: USA, Japan, China, Turkey, South Korea, Germany, Singapore, Thailand, Philippines, Saudi Arabia, Malaysia.