Scaling your Business in Indonesia

Indonesia

Indonesia is becoming one of the top choices for many multinationals looking to diversify their APAC portfolio as growth in China slows and India experiences high volatility

  • Indonesia’s remarkable growth, which is drawing record numbers of global investors, is no longer limited to Jakarta and Java
  • To take full advantage of Indonesia’s rapidly growing market, companies must strike a balance between market penetration and cost effectiveness
  • Leading companies in Indonesia are accelerating their expansion outside of Jakarta and Java by focusing their efforts on:
  • Prioritizing provinces and placing strategic bets
  • Understanding the changing market landscape
  • Leveraging relationships with local companies and distributors

B2C Companies Should Gauge Relative Opportunity by Tiering their Markets and by Monitoring Proxy Indicators to Add Depth to This Analysis*

  • B2C companies should find a strong consumer base on the islands of Java and Sumatra, where the majority of Tier 1 and Tier 2 provinces are located
  • Companies can conduct more in-depth studies by including proxy indicators and focusing on key cities during their tiering exercises; this should help them to expand strategically without spreading themselves thin
  • Example: Monthly Expenditure, % of Households with Computers, CAGR of cellphone ownership

**Stay tuned for next post on Growth Opportunities in Indonesia B2B Market**

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