The destination of TIME 2018 is Indonesia.
Being one of the emerging markets of the world with the largest economy in Southeast Asia, Indonesia is often mentioned as a suitable candidate to be included into the group of the BRIC economies. The country can be seen as a pole of economic stability as its average annual GDP growth rates have been stable around 5.5% since 2000. Also for 2019 The Organization for Economic Co-operation & Development expects a growth of 5.4% for its GDP.
The emerging middle class is the main driving force behind Indonesia’s economic growth. This results in higher demands for retail, consumer electronics and agriculture and food sectors. Mechanical engineering and chemical products are also two sectors that are expected to grow the upcoming years.
Since 2005, the Indonesian government has been implementing the Masterplan for Acceleration and Expansion of Indonesia's Economic Development (abbreviated MP3EI). It is an ambitious plan to accelerate the realization of becoming a developed country of which the fruits and prosperity will be enjoyed equally among the people. By utilizing the MP3EI, Indonesia aims to earn its place as one of the world’s developed countries by 2025 with expected per capita income of USD $14,250-$15,500 and total gross domestic product of USD $4.0-$4.5 trillion.
Besides having a strategic location to do business with China, India, Australia and Japan, Indonesia is one of the ten members of the Association of Southeast Asian Nations (ASEAN), which has a free trade zone. Currently it is the 6th country in the region that started negotiations for a Free Trade Agreement with the EU, of which two countries already have completed negotiations for bilateral agreements. Bilateral Free Trade Agreements between the EU and ASEAN countries will serve as building blocks towards a future EU-ASEAN agreement, which remains the EU's ultimate objective.
There are many opportunities in the upcoming years in the following sectors:
- Boilers and machinery
- Mineral fuels
- Electrical and electronic equipment
- Transport materials
- Chemical products
Combining the previous facts with the government’s ambitious masterplan MP3EI, leads us to the conclusion that Indonesia is a great country for doing business.
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