| ECONOMY. Indonesia is a market-based economy | | | | economies of the European |
| but the government plays a significant role | | | | Union.INFRASTRUCTURE. Indonesia's domestic |
| in the country's economy with 160 | | | | telecommunication system is generally fair |
| government-owned enterprises. Indonesia's GDP | | | | while its international services can be |
| per capita ranks fifth after Singapore, | | | | categorised as good. Internet broadband |
| Brunei, Malaysia and Thailand. The Asian | | | | services are mainly concentrated in the major |
| economic crisis of 1997 adversely affected | | | | cities. Road systems are more developed on |
| the country economy and businesses and caused | | | | Indonesia's populated island of Java, fairly |
| spiralling prices of necessities resulting in | | | | developed in Sumatra and Sulawesi but poorly |
| social unrest. Future prospects of | | | | developed on the island of Kalimantan. |
| Indonesia's economy are bright with economic | | | | Besides sea ports serving the international |
| structural reforms in placed since the Asian | | | | shipping lines, Indonesia are also served by |
| economic crisis.Indonesia's GDP was US$258.3 | | | | smaller sea ports serving coastal shipping. |
| billion with a GDP per capita of US$1,193 in | | | | All the cities and major towns are connected |
| 2004. Indonesia's real GDP grew at an average | | | | by airline services.INTERNATIONAL TRADE. |
| of 4.6% annually from 2000 to 2004 driven by | | | | Indonesia's major trading partners include |
| domestic consumption accounting for nearly | | | | Japan, US, Singapore, South Korea and China. |
| three-quarters of Indonesia's GDP. Inflation | | | | Much of the imports from Singapore are |
| rose from 3.8% in 2000 to 11.9% in 2002 but | | | | Singapore's re-exports from other countries |
| eventually declined to 6.1% by 2004. GDP per | | | | and exports to Singapore are re-exported to |
| capita increased from US$801 in 2000 to | | | | other countries. Main exports from Indonesia |
| US$1,193 in 2004 but unemployment also | | | | include oil and gas, electrical appliances, |
| increased from 6.1% to 9.9% during the | | | | plywood, textiles and rubber products. Main |
| period.The manufacturing sector contributed | | | | imports include machineries and equipments, |
| towards 43.7% of Indonesia's GDP in 2004 | | | | transport equipments, chemicals, fuels and |
| while the service sector contributed 40.9%. | | | | foods.CONSUMER USAGE OF TECHNOLOGY. Mobile |
| Though nearly 45.0% of the country's | | | | phone penetration is just 13% of the |
| workforce is involved in agriculture, this | | | | populations, which is lower than Singapore |
| sector contributed only 15.4% of the | | | | (93%), Malaysia (67%) and Thailand (45%). |
| country's GDP during the period. Major | | | | Furthermore, there are only 10 million |
| industries include petroleum and natural gas, | | | | fixed-line telephones serving the whole |
| textiles, apparel, footwear, mining, cement, | | | | country. The penetration of computers is less |
| chemical fertilisers, plywood, rubber, food | | | | than 2% of the households and the country has |
| and tourism. Major agriculture products | | | | only 1.2 million internet subscribers with an |
| include rice, palm oil, rubber, cacao, | | | | estimated 12 million internet users i.e. a |
| peanuts, copra and cloves.DEMOGRAPHY. | | | | penetration of only 0.5% of the population. |
| Indonesia comprises nearly 18,000 islands and | | | | Most middle and high-income homes would own |
| has the largest population among the | | | | televisions but the penetration in lower |
| Southeast Asian countries with 217 million | | | | income homes is lower. Thus the household |
| people in 2004. Main islands are Java | | | | penetration of television in Java is nearly |
| accounting for 55% of the population followed | | | | 60% and in Sumatra 52%. Similar scenario |
| by Sumatra (18%), Kalimatan (5%) and Sulawesi | | | | exists for refrigerators.RETAIL MARKET. |
| (6%). Other less populated islands include | | | | Retail sales of food and non-food items |
| Irian Jaya, Bali and Nusa Tenggara.Indonesia | | | | totalled an estimated US$32 billion in 2004. |
| is a country of diverse ethnic and sub-ethnic | | | | Many Indonesians still shop at the |
| communities with different languages and | | | | traditional markets or "mom and pop" |
| dialects, cultures and foods. The Javanese | | | | establishments but shopping at modern |
| accounts for 45% of the population followed | | | | shopping malls, hypermarkets, supermarkets, |
| by Sundanese (14%) and Madurese (8%) and | | | | mini-markets and supermarkets is increasingly |
| coastal Malays (8%). Chinese who migrated to | | | | popular. There are nearly 5,000 such modern |
| Indonesia during the Dutch colonial period | | | | establishments in Indonesia accounting US$4.5 |
| account for nearly 5% of the population. | | | | billion in retail sales in 2004. Most of |
| Islam is the predominant religion followed by | | | | these establishments are concentrated on the |
| Christianity and minority religions include | | | | island of Java followed by Sumatra. Since |
| Buddhism and Hinduism. The national language | | | | 1998, the government opened the retail |
| is Bahasa Indonesia (similar to Malay used in | | | | industry to foreign investments and |
| Malaysia, Singapore and Brunei). English is | | | | participation.FOOD CULTURE. Indonesia's food |
| not widely used but many businesses and | | | | culture is diverse because of the various |
| government officials dealing with foreign | | | | ethnic and sub-ethnic communities that |
| companies and foreigners are fluent in the | | | | comprise the country's population. Typical |
| language.More than half of the population | | | | meals eaten are rice-based dishes and |
| live in the rural areas but the proportion of | | | | occasionally noodles. However, there are many |
| the urban population is increasing from 36.0% | | | | western franchise fast food outlets located |
| in 1995 to 45.0% by 2004. Major cities | | | | mainly in the major cities such as Jakarta, |
| include Jakarta with a population of 10 | | | | Surabaya, Bandung, Semarang and Yogyakarta. |
| million followed by Surabaya, Bandung, | | | | Mid to high-end bakery outlets serving |
| Semarang, Yogyakarta, Surakarta, Medan and | | | | western and local bakeries are also found in |
| Padang. | | | | the major cities.Khal Mastan is a Senior |
| | | | Consultant with Pegasus Business and Market |
| Nearly 25% of the population live below the | | | | Advisory ( based in Malaysia. He involves |
| poverty level while another 60% are from the | | | | himself in business and marketing research |
| lower income group. The remaining 10% belong | | | | and provides consulting services on markets |
| to the middle income and 5% in the higher | | | | in Southeast Asia namely Malaysia, Thailand, |
| income group. Though Indonesia has a | | | | Singapore, Indonesia, Philippines and Brunei. |
| relatively small proportion of middle to | | | | He has more than 20 years experience in the |
| high-income consumers, this equates to nearly | | | | region and work experience in various |
| 33 million consumers. This is more than | | | | industries. He holds a bachelors degree in |
| Singapore's 4.3 million population with a GDP | | | | Biochemistry and an MBA. He can be contacted |
| per capita on par with many advanced | | | | at or +6 (03) 7726 5373 in Malaysia. |