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Indonesia, with its population of nearly 270 million inhabitants, presents a huge market for any company wishing to do business. Indonesia is the largest economy in Southeast Asia and the world's seventh by purchasing power parity stimulated by a growing middle class of nearly 70 million people (55% of GDP).


FDI flows into Indonesia have grown thanks to resilient economic growth, low government debt and prudent fiscal management. FDI growth is attributed to a set of economic policy packages that was implemented by the Indonesian government over the last years, mainly focusing on deregulation and improving business certainty and transparency.


The Indonesian government was able to improve the overall atmosphere of the market through structural reforms that have removed some investment risk. President Widodo has announced plans to improve the country's position in the Doing Business report published by the World Bank with the goal of reaching 40th position globally. Indonesia's current economic situation may well be the right time to invest in the country – green investments in particular.


Indonesia is committed to cut the greenhouse gas emissions by 2030 to 29% independently, and up to 38% with international cooperation and support under the Paris Agreement. Additionally, in 2014 the government revitalized its National Energy Policy that established a target to not only achieve a near-100 percent electrification by 2020 from the current rate of 96%, but also to achieve its renewable energy share in the national energy mix to 23% by 2025. Indonesia is equipped with abundant potential renewable energy sources such as hydropower, geothermal, biogas & biomass, solar power and even ocean.

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