For businesses looking beyond familiar markets, Indonesia presents a compelling case. It is the largest economy in Southeast Asia, home to roughly 280 million people, and a market where major investments are underway in infrastructure, clean energy, agri-food supply chains and digital connectivity.
But as Sean Emmond, CITP, EDC’s Chief Representative for Indonesia, explained during a recent FITTskills Live session, opportunity is only the starting point.
“I think Indonesia is a fascinating market. Maybe not an easy market, but one of those markets where, if you invest in it, you can certainly find considerable success.”
That distinction was central to the session. A promising market is not automatically the right market. Businesses need to look past the headline numbers and assess demand, competition, regulations, buyer dynamics, local partners, payment considerations and their own internal capacity before committing resources.
For companies considering Indonesia, Emmond’s message was clear: success depends on doing the work before entering the market.
Start by understanding the scale and complexity
One of the first points Emmond emphasized was the size of the country itself. Indonesia stretches about 5,000 kilometres from end to end, roughly the distance across a continent-sized market. It spans three time zones, includes thousands of islands and is home to hundreds of languages.
That scale matters for international businesses because Indonesia cannot be approached as a single, uniform market.
Java, where more than half of the population lives, includes sophisticated urban centres with modern infrastructure. Other regions may have different levels of development, logistics capacity, customer behaviour and business requirements.
For businesses assessing the market, this means research must go deeper than national level statistics. A company needs to know where, specifically, its product or service fits. Selling into Jakarta may require a different approach than serving customers in another region. Bali, for example, has its own characteristics as a tourism driven economy, while Sulawesi is known as a major mining destination.
The actionable takeaway: define the geographic market before defining the market entry strategy. “Indonesia” is too broad to be the whole answer.
Look for opportunity in areas of national investment
Emmond identified four broad areas where international companies are seeing significant opportunity in Indonesia: infrastructure, cleantech and renewables, protein and agri-food, and digital industries.
Infrastructure has been a major driver of the country’s growth, with ongoing investment in roads, ports, airports, rail and logistics. Clean technology and renewable energy are also important areas of focus, especially as Indonesia looks to reduce its reliance on coal-fired power generation and invest in solar, wind and geothermal energy.
Agri-food remains a strong area of opportunity for companies with the right products, expertise or technologies. Food security is a critical priority for the country, even though parts of Indonesia, including Java, are highly fertile.
Digital industries are another major opportunity. Indonesia’s geography has made digital infrastructure especially important, helping connect the country across islands and regions. Investments in connectivity, e-commerce infrastructure and data centres are creating openings for companies with relevant technology, services or expertise.
The key lesson is not simply to chase high growth sectors. Businesses should look for the intersection between market demand, government priorities and their own capabilities. If a company’s offer aligns with national priorities such as food security, energy security or human capital development, it may have a stronger case for market entry.
Understand who really drives demand
In Indonesia, understanding the buyer landscape is essential.
Emmond explained that government and government linked entities play a major role in the economy. He noted that more than 50% of the economy is controlled by government or government linked entities, which means government priorities can have a direct effect on demand for certain products and services.
For companies selling into sectors such as electricity, oil and gas, mining or aerospace, working with state owned enterprises is likely. These buyers operate differently from private sector customers and may be influenced by national policy priorities, public sector procurement processes and state asset management decisions.
Private conglomerates are also significant. Emmond described Indonesia as home to large, sophisticated and well-run conglomerates that make up a substantial portion of GDP.
Selling to these companies may involve a very different process than selling to a state-owned enterprise.
The practical takeaway is to map the full buying environment:
- Who is the direct customer?
- Who influences the decision?
- Is the opportunity tied to a government priority?
- Are you selling to a private conglomerate, a state-owned enterprise or another type of buyer?
These questions should be answered before serious time and money are invested.
Prepare for strong competition
Indonesia’s opportunity also attracts competitors.
Companies entering the market may face strong local firms as well as regional and global competitors. Emmond pointed to the presence of Korean, Japanese and Chinese companies, along with firms from Western Europe and the United States.
That makes differentiation essential. International businesses should be prepared to clearly communicate why their product, service, technology or expertise is relevant to the Indonesian buyer.
A general value proposition will not be enough in a competitive market with established players.
Businesses should ask themselves what problem they solve, why their solution is credible, how it compares with local and international alternatives, and what proof they can provide.
Assess regulatory and certification requirements early
Regulation, documentation and certification are another important part of market feasibility.
Emmond noted that there can be a significant regulatory burden in Indonesia. While trade agreements can create preferential tariff opportunities, companies still need to understand the extent to which certification, documentation or compliance requirements apply to their specific offering.
For food exporters, halal certification is one of the clearest examples. Emmond advised companies looking at food exports to make sure they have access to halal certification before going too far down the path.
The broader point applies across sectors.
Before entering any new market, businesses should identify the certifications, documentation, approvals, tariffs, payment considerations and compliance requirements that apply to their specific product or service.
These factors are not administrative details to handle later. They can affect cost, timing, pricing, market access and feasibility.
Choose local partners carefully
Local partners, distributors and representatives can be critical to success in Indonesia.
“You will need a local partner,” Emmond said, describing this as a key element of market entry.
The right partner can help a company understand local conditions, engage with buyers, navigate business culture and build credibility. The wrong partner can create delays, misalignment or missed opportunities.
Companies should evaluate potential partners based on both market knowledge and their ability to work effectively with foreign companies. A partner should understand the local business environment, but also be able to communicate clearly, represent the company’s interests and support long term growth.
This is not a decision to rush. Partner selection should be treated as a strategic step in the market entry process.
Invest in relationships and presence
One of Emmond’s strongest takeaways was the importance of showing up.
In Indonesia, as in many emerging markets, a physical presence matters. Frequent market visits can help companies test assumptions, build trust, meet buyers, understand local dynamics and develop stronger relationships with partners, regulators and customers.
Emmond shared a comment he once heard from an exporter:
“If you don’t know the names of your business partner’s kids, it’s very unlikely that you’ll find success in the Indonesian marketplace.”
The point is not that every business relationship must become personal. Rather, trust is built through time, familiarity and repeated engagement. Companies that expect quick results from a distance may struggle. Those that invest in relationships are better positioned to build traction.
Emmond also highlighted the role of memorandums of understanding in Indonesia. While MOUs may sometimes be viewed in other markets as symbolic, he explained that in Indonesia they can function as a “license to engage.” They signal that two organizations know each other and are beginning a business relationship.
The insights above are only part of the conversation. FITT members can access the full webinar recording, including the Q&A portion where audience questions brought out additional practical advice on entering and succeeding in the Indonesian market. Explore FITT membership to view the full recording and access more expert-led resources created for international trade professionals.
Investigate before you invest
Indonesia offers meaningful opportunities for international businesses, especially in sectors aligned with infrastructure, clean energy, agri-food, digital connectivity and national development priorities. But it is also a complex market where success depends on preparation.
The strongest lesson from Emmond’s presentation was that market entry should be grounded in careful assessment.
Businesses need to look at demand, regional differences, buyer structures, competition, regulations, certification, partners, payment considerations, political risk and internal capacity.
A large market can be attractive. A growing market can be exciting. But the right market is the one where a business understands the opportunity, the risks and the work required to compete.
For companies considering Indonesia, the next step is not simply to ask whether the market has potential. It is to ask whether the opportunity is a true fit and whether the organization is ready to pursue it properly.
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