Businesses from Singapore, Thailand and China eager to find business in Indonesia

Companies from Singapore, Thailand and China are seizing new business opportunities that have arisen from Indonesia’s large and burgeoning middle class, a United Overseas Bank (UOB) survey reveals.


The “UOB Asian Enterprise Survey 2014” finds that more than 90 million or 40 percent of Indonesia’s populations make up the country’s middle class, a large consumer base that is a major factor in attracting businesses from Singapore (26 percent), Thailand (25 percent) and China (21 percent) to Indonesia.


UOB Indonesia deputy chief executive officer of business, Iwan Satawidinata, said rising incomes, especially among this middle class, led to greater spending power, changing consumption patterns and higher expectations and these were all creating opportunities for Asian enterprises keen to expand into Indonesia.


“As incomes rise and urbanization continues apace, companies that offer products and services that meet the new needs of Indonesia’s middle class will be well positioned for sustainable growth. It is through seizing the opportunities that are now opening up in Indonesia that these Asian businesses are fueling their next phase of growth,” Satawidinata said in a release made available to The Jakarta Post on Wednesday.


Asian enterprises are keen to participate in building Indonesia’s infrastructure, says the survey, citing Indonesia’s domestic economy, which is supported by rising income levels and improved economic conditions.


UOB Group senior economist Ho Woei Chen, said Indonesia’s infrastructure boom had not gone unnoticed by its regional neighbors. Construction companies from Malaysia (50 percent), Singapore (40 percent), Thailand (33 percent) and Hong Kong (33 per cent) are most bullish about Indonesia’s infrastructure improvement plans, according to the survey.


“Construction spending to meet Indonesia’s infrastructural needs will also open up investment and business expansion opportunities for related industries such as the logistics, food and beverage, and hotel industries,” Ho said.


“To facilitate more foreign direct investment, government trade agencies are working across all ministries to reduce bureaucracy and to enhance Indonesia’s attractiveness as an investment destination.”


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