Is Indonesia a Wealthy Country? From the perspective of a business magnate or executive the most important thing to do is to find opportunities/potential and develop a system to make it profitable through business, production, and marketing activities.
Many of the readers of this blog were mainly here to seek opportunities reviews and insights to do business. One particular topic to be dived upon is the potential of certain countries. This is a common occurrence because many of our readers are energy entrepreneurs.
One question that is often being asked to us through emails and other communications channel is: ‘Is Indonesia a Wealthy Country?’ This is because we have known that Indonesia is reach in resources and natural wonders they were proven rich archipelago since history was written.
But there are concerns that maybe, just maybe the Indonesians are not ready and not a good market even though they were rich in resources, but could they use them and afford the things that have been generated through their resources?
Condescending as it might be, the question of Is Indonesia a Wealthy Country? Is an important thing for any executive, business leader, and even Indonesian countrymen to understand and elaborate. So in this article, that’s what we will do, through data and nuanced explanation.
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The Concerning Question
In the late 90s, there is an enterprise that led the world in the energy sector: Enron. The story itself is magnificently corrupt, and a good lesson for any businessperson to conduct their activities. But one of the holy grails that makes them succumb is the failed Indian power plant plan.
This is one of the foundations that highlights the importance of the question of Is Indonesia a Wealthy Country?. Because in the late 90s, Enron hasn’t been carefully examined India, and thus after they built and invest in a massive power plant there, they lost millions.
The main reason for their loss is because, at that time, India hasn’t been able to afford the electricity that they would generate from their investments. India has yet to develop their technologies well and hasn’t built enough grids and generators to use it also.
So, that is the important reason for asking Is Indonesia a Wealthy Country? Not as a colonial Esque distastefully condescending question towards Indonesia, but to make sure that our investment and business actually could have a foothold and adequate market to startup.
Also Read: Is Indonesia An Emerging Market?
How Rich is Indonesia?
Indonesian per-capita income is between US$ 1000 – US$ 1500 per person. This makes them sit comfortably within the middle class of the world’s economic tiers. They haven’t had a very advanced financial structure like Singapore, or connectivity like Malaysia but size does matter.
One aspect in answering Is Indonesia a Wealthy Country? Is through the structure of the economy. They were mainly comprised of small businesses and little corporations that formed a safe ecosystem both internally and externally. Making them strong and durable in dynamics.
What we meant by that is the Indonesian economy is good at striking a balance between being connected to the international financial market and domestic strength. This benefits them because something like the 2008 financial crisis didn’t make their economic collapse.
Thus, Is Indonesia a Wealthy Country? They were easily the middle power country. But another important perspective is that are they an emerging market? Yes, very much! The Indonesian economy is steadily growing from 4% to 5% peaking at 6% in the early 2010s, but consistent.
Why is that? The Indonesian Gross Domestic Product has actually outgrossed Singapore and Malaysia. Indonesia is the 1 trillion economy that overshadow Singaporean 360 billion and Malaysian 330 billion GDP. Making them, by size the biggest market in South East Asia.
Can The People Afford it?
So Is Indonesia a Wealthy Country? by that metric yes? But let’s get back to the basics can the people afford the electricity? The main reason to say yes to it is because of the mandate that has been given by the government to the state’s electricity company.
That mandate is about the top cap for electricity pricing. There is also some other caveats in the mandate, for example – the state’s electricity enterprise (PLN) is being directed to spend, about 40% of its resources on renewables. So there is a market, even for a niche thing.
So, the pricing is quite stable. Some of you might ponder about Is Indonesia a Wealthy Country? And after listening to the government control, thinks about the socialist-leaning countries that were often in bankruptcy and insolvency, but it’s not Indonesia.
What you should understand about this is that, if you’re doing business both in the extracting, exploration, or even selling there is a government help that would help you either market it from a B2B perspective or direct to consumer model.
Is Indonesia a Wealthy Country? yes, they could afford the electricity that you might offer to generate or use the solar and petroleum-based engine fuel that you could offer them. Because the people’s economic situation is dynamically positive and the government would help.
The country often subsidizes and tries to arrange certain schemes and financial modeling to make sure that the gas prices or the fuel fluctuation won’t be able to overcome the growth and the resources generated by the people. This creates a safe environment for businesses and consumer.
The question of Is Indonesia a Wealthy Country? Is currently answered: yes, of course, they are wealthy enough to do business with. There is even a lot of further untapped potential as the country shifted the focus from the Java-based centralized economy.
This meant that your business might get the opportunity to market it easier and cheaper to the previously untapped market of the eastern Indonesian region of Papua and Maluku. These were often the territories that were previously undertaken because of the centralized development.
So the final answer to Is Indonesia a Wealthy Country? Is a definite yes. The more nuanced answer is that: because of the strong economic foothold, the business-friendly regulation by the government, and the continuous growth: Indonesia is one of the best place to do business.
Consulting Business? Contact Whatsapp +62 877-7180-0222