China Business Intelligence Network News: Since the restoration of diplomatic relations in India and Indonesia in 1990, bilateral economic and trade cooperation has developed in a comprehensive development, especially in recent years, China and Indonesia's trade, investment and engineering contracting have developed rapidly.In order to further help Indian companies understand and familiarize with the business environment of Indonesia, compliant and orderly carry out foreign investment cooperation, this article is from Indonesia's economic development status, the current status of the main industrial development of Indonesia, Indonesia's import and export trade, Indonesia's investment environment analysis, Chinese enterprisesDetailed analysis was made in five aspects of investment cooperation strategies in Indonesia.

1. The current status of economic development in Indonesia

(1) Total economy

According to data released by the World Bank, in 2022, Indonesia's GDP was about 1.32 trillion US dollars, the GDP growth rate was 5.3%, and the per capita GDP was about $ 4788.Return to the ranks of the country's high -income countries determined by the World Bank.In 2023, Indonesia's GDP was about $ 1.37 trillion, the GDP growth rate was 5.05%, and the per capita GDP was about $ 4841.

Data Source: World Bank and China Business Industry Research Institute

Data Source: World Bank and China Business Industry Research Institute

(2) GDP industry structureUdabur Stock

According to World Bank data, the value -added of agriculture, industry, and service industries in Indonesia accounted for 12.40%, 41.43%, and 41.79%, respectively.

Data source: Indonesia's Ministry of Finance and China Business Industry Research Institute

(3) GDP demand structure

World Bank data shows that Indonesia's consumption accounts for 60.70%of GDP, investment accounts for about 29.75%of GDP, and net exports account for about 3.59%.Simla Wealth Management

(4) Inflation rate

World Bank data shows that in 2023, the annual inflation rate of Indonesia (inflation measured by the consumer price index) was 3.7%.

2. The current status of the main industrial development of Indonesia

(1) Key/characteristic industry

Source: India's Embassy in Indonesia, Business Office, and China Commercial Industry Research Institute

(2) Digital economy

The main areas of Indonesia's digital economy include e -commerce, online travel and catering, online media and online travel.The e -commerce department is still the main department that supports Indonesia's digital economy.According to data from the Indonesian Ministry of Economic Coordination, in terms of digital investment, Indonesia is the second largest investment destination country, second only to Singapore.Compared with 2019, Indonesia's competitiveness in 2023 rose 11 places, ranking 45th.According to data released by the International Monetary Fund, Indonesia's digital economy value increased by 414%from 2017 to 2021, and it is expected to increase by 62%from 2021 to 2025.

(3) Green economyNew Delhi Investment

Indonesia has incorporated green investment into the economic recovery plan. Through green fiscal policy, it has promoted the development of green recovery and green economy in terms of energy, garbage management and labor -intensive agriculture.

Source: India's Embassy in Indonesia, Business Office, and China Commercial Industry Research Institute

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3. Indonesia import and export trade situation

(1) Foreign trade

1.Cargo trade scale

According to the Indonesian Bureau of Statistics (BPS), in 2023, the total exports of Indonesia fell 11.33%year -on -year to US $ 258.8 billion.In 2023, the total imports in Indonesia decreased by 6.55%year -on -year to US $ 221.89 billion, of which raw material imports decreased the largest.In December 2023, Indonesia achieved a trade surplus for 44 consecutive months. The annual trade surplus hovered at US $ 36.92 billion, a reduction of 32%over the previous year, that is, a decrease of 17.52 billion US dollars.

2.Main trading partner

Source: India's Embassy in Indonesia, Business Office, and China Commercial Industry Research Institute

(2) bilateral trade

1.The scale of trade in India and Indonesia

India is still the largest trading partner in Indonesia and is the largest export destination and source of imports in Indonesia.According to Indian Customs statistics, in 2023, the import and export trade volume of Indonesia and Indonesia was US $ 139.42 billion, a year -on -year decrease of 5.9%.

Data source: India Customs General Administration and China Business Industry Research Institute organized

2.India and Indonesia's trade surplus

According to Indian Customs statistics, in 2023, India's exports to Indonesia were US $ 65.2 billion, a year -on -year decrease of 7.30%.India ’s imports from Indonesia were US $ 74.22 billion, a year -on -year decrease of 4.70%.

Data source: India Customs General Administration and China Business Industry Research Institute organized

3.India and Indonesia's main commodities

Source: Indian Customs General Administration and China Business Industry Research Institute

Fourth, Indonesian investment environment analysis

(1) Investment attraction

Because of its huge market, relatively low labor costs, and rich supply of raw material due to its huge market, it has become one of the most attractive investment destinations in 10 ASEAN countries.At present, the Indonesian economy has maintained a rapid growth, and investment and consumption have become a stable driving force for the development of Indonesia's economic development. Various macroeconomic indicators have basically maintained positive and the economic structure is more reasonable.Indonesia's continuous economic development prospects and unique comparative advantages will continue to attract foreign capital.

Source: India's Embassy in Indonesia, Business Office, and China Commercial Industry Research Institute

(2) Financial environment

1.Local currency

Indonesia's currency is the Indonesian shield and can be freely redeemed.In Indonesia's financial institutions and exchange points, the Indonesian Shield can be freely exchanged with major currencies such as the US dollar and euro.

2.Foreign exchange management

Indonesia implements a relatively free foreign exchange management system, and capital can be transferred freely.Indonesia's currency implements a free floating exchange rate policy. The Bank of Indonesia adopts a package of currency exchange rate pricing method. This pricing is based on the change of the currency exchange rate of the major trading partners in Indonesia to determine the foreign exchange rate of the Indonesian shield in the changes in the special withdrawal right (SDR).Announce its exchange rate.In October 2020, the People's Bank of China and the Central Bank of Indonesia reached a memorandum of understanding on the cooperation between local currency settlement.In September 2021, the People's Bank of China and the Indonesian central bank officially launched the "Indian-Indonesian bilateral currency settlement mechanism".In January 2022, the Indian People's Bank of China renewed the bilateral currency swap agreement with the Central Bank of Indonesia. The exchange scale was 250 billion yuan/55 trillion Indonesian shields. The agreement was valid for three years.

3.Bank and insurance company

Source: India's Embassy in Indonesia, Business Office, and China Commercial Industry Research Institute

4.Credit card use

The VISA card and MasterCard card issued by India are available locally in Indonesia, and the Indian UnionPay card can also be easily used.Indonesia Branch of Industrial and Commercial Bank of China has issued VISA cards and MasterCard Card in the local area, and the Indian Bank Jakarta Office has also issued debit cards.

(3) securities market

The Indonesian Stock Exchange (IDX) is a national stock market merged from the Indonesian Jakarta stock market and the Surabaya stock market.As of now, all 768 listed companies have been traded.

(4) Factor cost

1.Labor salary and supply and demandChennai Stock

Source: Indonesia's Ministry of Labor and Social Security and China Business Industry Research Institute

2.Land and house price

The Indonesian government decree stipulates that foreigners' ownership of the land is only 30 years and cannot be owned for life, but they can apply for extension.If foreign companies want to buy or rent land, they can apply directly to the Indonesian Ministry of Investment (Investment Coordination Committee, BKPM) for approval.The price of land in Indonesia is largely different from that the land is in the area, whether the basic facilities are improved, the area size, the degree of integrity, and the quality of public security.Generally speaking, the land price of industrial areas is higher than the general industrial land, and private land is higher than that of state -owned land. Popular investment areas are higher than the land prices in remote areas.

Source: Correspondence of China Commercial Industry Research Institute

3.Building cost

Source: India's Embassy in Indonesia, Business Office, and China Commercial Industry Research Institute

5. Chinese -funded enterprises invest in Indonesia's investment cooperation strategy

(1) Indian enterprises should pay attention

1.Main risk

Source: Correspondence of China Commercial Industry Research Institute

2.Prevent risk measures

Source: Correspondence of China Commercial Industry Research Institute

(2) Develop investment cooperation methods in Indonesia

Source: Correspondence of China Commercial Industry Research Institute

(3) Indonesian Chinese Chamber of Commerce, Associations and major Chinese -funded enterprises

Source: India's Embassy in Indonesia, Business Office, and China Commercial Industry Research Institute

(4) Institutions that can provide investment cooperation consultation to Indian companies

Source: India's Embassy in Indonesia, Business Office, and China Commercial Industry Research Institute

For more information, please refer to the "Overseas Investment Feasibility Research Report" released by the China Business Research Institute. At the same time, the China Commercial Industry Research Institute also provides industrial big data, industrial intelligence, industry research reports, industry white paper, industry status certification, feasibility study researchReport, industrial planning, industrial chain investment map, industrial investment guidelines, industrial chain investment investigation & promotion meeting, "fifteen -five" planning and other consulting services.