Bridging Business Horizons: Unlocking opportunities in Indonesia

Expanding into Indonesia presents opportunities for businesses, but it is not without its challenges. The country's fast-growing economy with a population of over 270 million people and a rapidly growing middle class make it a tempting market for companies looking to grow. However, businesses seeking expansion opportunities in Indonesia should be aware of the country’s unique regulatory landscape, diverse cultural nuances and administrative processes. To succeed in Indonesia, companies require a well-defined plan and an understanding of what makes this market tick, along with some local expertise.

Recognising these challenges, DBS recently hosted an event tailored for businesses considering expanding into Indonesia. Bridging Business Horizons, Indonesia Edition brought together industry experts to share their insights and give practical tips to help businesses find their footing in this market.

Chen Ze Ling, Head of Corporate Banking, Institutional Banking Group, DBS Singapore, set the stage by highlighting the growing interest among businesses to enter Indonesia. "Indonesia, with its vibrant economy and favourable demographics offers immense business opportunities," he said.

With DBS’ Bridging Business Horizons program, clients will be able to receive support in their regionalisation efforts through the stages of - Discovering new market opportunities, Developing market entry strategies, and Deepening their onshore networks by connecting with in-market experts and partners.
 

A Stable Environment for Business

Indonesia enjoys a stable political scene compared to other emerging markets like Brazil, making it an attractive destination for investors and businesses. During the opening presentation, DBS Chief Economist Taimur Baig said that while Indonesia might not grow as fast as some of its neighbours, primarily China, India and Vietnam, its steady growth and stability make it an attractive destination for long-term investments.

Adri Setyo Prayogo, Associate Director of Business Development at consultancy Vistra Indonesia shared the importance of understanding the country's regulatory requirements, which include the need to tap on local knowledge. 

Meanwhile, the Indonesian government has taken steps to make it easier for foreign businesses to operate in in the country. These include making licensing simpler and introducing digital tools, which have boosted business productivity. 

Capturing Trade Opportunities
 

To help businesses achieve cost savings in overseas markets, local SMEs can take advantage of Singapore's wide network of FTAs, which gives businesses preferential access to foreign markets, including Indonesia. Marcel Pang, Deputy Director of International Policy and Engagement at the Singapore Business Federation (SBF) said that knowing the details of these agreements can help to facilitate international trade more efficiently. 

Businesses can also utilise trade finance to help reduce business risk when venturing into new market(s). Chee Zheng Lun, Vice President of Documentary Trade Product at DBS, explained how the bank’s trade solutions can help mitigate risks, such as non-payment and country risks, which are often top concerns for businesses entering new markets. He also stressed the importance of working with a bank that has deep local knowledge and a strong network in Indonesia, highlighting DBS’s extensive presence in the country with over ten branches and Indonesia bank coverage across 23 banks. 

Sharing a Journey of Success

The event's standout session was a fireside chat with CK Lim, who leads Hin Holdings, an asphalt supplier, who shared key lessons from the company's 40-year journey in Indonesia. As a leader who took over the family business, Lim gave a realistic view of the opportunities as well as challenges that businesses might face when navigating the Indonesian market.

Apart from dealing with regulations, Lim stressed how essential it is to create solid ties with local partners and key players. He noted that businesses need to have deep local insights and contacts to navigate Indonesia's complex government layers—from central bodies to village officials. He also advised businessesto be prepared for a different rhythm and approach to business in Indonesia where face-to-face talks are often needed and things tend to take longer.
 

Wrapping up his talk, the seasoned entrepreneur shared three key tips for businesses looking to enter Indonesia: Be daring, be diligent, and don’t be disillusioned. He pushed businesses to make bold moves into the market, keep up their detailed research and operations, and get ready to face hurdles head-on. “Indonesia is a market where persistence pays off,” he said, urging entrepreneurs to navigate the challenges with patience and determination.

The event provided businesses with a wealth of insights and advisory, supporting their journey into the Indonesian market. From understanding the macroeconomic picture to dealing with tricky rules, the main point is clear: To succeed in Indonesia, businesses will need to prepare well, team up with strong local partners, and be ready to adapt to the cultural nuances of doing business.

Ready to expand your business regionally? Join the Bridging Business Horizons programme to gain exclusive access to expert insights, market entry strategies, and in-market connections tailored to your business needs. Sign up today and let DBS BusinessClass help you navigate your journey into Asia’s largest economy. Learn more and register here.