Biggest Industry in Indonesia – As one of the biggest and the most promising developing countries, Indonesia has what it takes to be the next investment hub. Indonesian government and private sector alike is open for international partnerships and also the application of new form of innovations.
Indonesia has a very diverse industry, it didn’t specifically cater to a certain specialty because of it’s regional and cultural differences. There are several main things that become it’s pillar of economy and in this article, we will try to examine some of them, and how does it reflect overall economy.
What you will find here is that the Biggest Industry in Indonesia is very competitive, culturally strong, and also worth your consideration. It is very open for market disturbance – as in, new innovation came and the game is changed as a whole. This is what you could do to chip in in the investment hub of south east:
Consulting Business in Indonesia? Contact Whatsapp +62 877-7180-0222
The Billion Dollar Stalls
The Indonesian economy is unique because most of them were true to the principle of ‘built by the poor, so the poor could be rich’. This is because, unlike the more professionalized capitalistic companies in the US or Europe, Indonesia built it’s back on informal entrepreneurs.
These entrepreneurs made small businesses such as restaurants, small shops, retail centers and food stalls. These are the main face of the Biggest Industry in Indonesia. On yearly basis, they are expected to generate around 2 billion dollars in the economy alone.
The reason for it is mostly their cultural roots. These entrepreneurs were mostly local people who built on the community. The people built and expand organically because the demand is always there. Together, they were often the generate 500 million dollars in the span of a month.
The Biggest Industry in Indonesia, the small stalls were often mom and pops owned, but there are many stores that were actually invested by the funds from the local rich person or investors. They were also prone to new and more exciting investments such as Payment Platforms and other forms of technology.
They were not too conservative economically, thus the more pragmatic ways were mostly be chosen. The utilization of payment platforms such as the GoPay, OVO, DANA – and most currently, the PayLater services were often be the main driver of transaction and brought them growth to 5% per-annum.
If you need some reference, think of it as mittlestand in Germany. The mom and pop shops and establishments that were more strong and flexible. With that kind of growth, Biggest Industry in Indonesia is formed through the small stalls.
Also Read: Indonesia Electricity Demand, How Big?
Financials and Digital Banking
The next potential businesses in the face of more and more innovation is the financials and digital banking services. These were the fuels of the economy. They were making things most possible because they provides early loans for the small businesses, and the consumption credits for the consumers.
They became Biggest Industry in Indonesia because of the sheer size and volume of the transaction. The industry is saturated with more players coming in, but with the growing global and local consumption, it was fueled through the low interest rate and strong positive inflation.
The inflation in Indonesia is often be the reason that certain consumption came to halt. But the overall climate for the industry is good because of the strong credit returns and also the high credit returns. This fueled more trust in the lenders to inject more money to the economy.
The Biggest Industry in Indonesia is made possible by some of the newer digital banks and the increasingly growing number of players in the Indonesia’s economic environment. Made possible by the granted permission from the central bank to inject cash for the people.
For example, through Shopee and Tokopedia, there will be about 1 million people that has no credit before or even has knowledge about banking, to be involved in the digital economy. This is because of the PayLater and the easy cash that were available to the lowest common denominator.
This is why the marketplace became one of the Biggest Industry in Indonesia, their banking arm – or cooperation makes it happen through the venture capital to establish startups, consumer short term loan, and the utilization of digital platforms.
Retail: o’l Reliable
The retail will never die until we have invented a transporter like in the Star Trek, or we have ran out of people in the world. This is especially true in Indonesia. The two of the biggest retailer in the country: Indomaret and Alfamart – has recorded a 17% annual growth because of the consistent market.
Indonesia’s growing middle class and the non-stagnant condition of the upper class has marked it’s consistency as the go-to market in the south east asia. The retail rules the Indonesian economy through digital and brick-mortar establishments.
One of the things that make this a better bet than the digital marketplace is the proven mechanism and co-operations. For example, the main digital marketplace and one of the highest grossing: Gojek & Tokopedia (GoTo), has still a net loss on the book, whereas Indomaret and Alfamart is consistently profit.
The retailers were also having their digital arm on set, Alfa has AlfaGift, Indomaret has Klik Indomaret – ready to support the main business on the delivery and pay-per-order basis. This proofs further that the Indonesian market has grown mature and strong.
The strong economy of Indonesia is often didn’t look like our expectations. Biggest Industry in Indonesia is mostly comprised of wide serving companies that didn’t offer a specific technology – but have a strong foundation and clear path to profitability.
The main thing to be understood about Indonesia is the strong economy must be built organically. The strong and vibrant finances, the clear and understandable core brands, they have made the strong legs and especially sizeable market to strongly support the innovation and further expansion.
And that’s several short explanations on the Biggest Industry in Indonesia. You should note that this is an industry – not company. You can try to disrupt many things in the industry by offering new and exciting innovation for the company. If you try to connect and know more, Proconsultofficial.com will be the right place for you to begin your journey.
Consulting Business in Indonesia? Contact Whatsapp +62 877-7180-0222