Indonesia

Indonesia Overview

Indonesia has played a modest role in the world economy since the mid-20th century, and its importance has been considerably less than its size, resources, and geographic position would seem to warrant. The country is a major exporter of crude petroleum and natural gas. In addition, Indonesia is one of the world’s main suppliers of rubber, coffee, cocoa, and palm oil; it also produces a wide range of other commodities, such as sugar, tea, tobacco, copra, and spices (e.g., cloves). Nearly all commodity production comes from large estates. Widespread exploration for deposits of oil and other minerals has resulted in a number of large-scale projects that have contributed substantially to general development funds.

Although Indonesia has remained a major importer of manufactured goods, high technology, and technical skills since the early 1970s, the country’s economic base has shifted from the primary sector to secondary and tertiary industries—manufacturing, trade, and services. Manufacturing surpassed agriculture in terms of contribution to gross domestic product (GDP) in the early 1990s and has continued to be the largest single component of the country’s economy. A significant portion of the national budget has continued to be allocated to agriculture, however; consequently, the country has remained self-sufficient in rice production since the mid-1980s.

Source: britannica.com

Landscape and growth

Global State of the Market Report

In 2022, the Advisory Board Centre mapped professionals currently serving on Advisory Boards. This assessment identified over 5,500 professionals on Advisory Boards in Indonesia.

Advisory Board Landscape

The assessment has identified low numbers of Advisory Board professionals in Indonesia. Minimal participation in the market may indicate:

  • That Advisory Board structures engaged in the country are informal in nature;
  • Advisory Boards are referred as a different name, such as committees, councils or think tanks;
  • Traditional sourcing of advice is more customary for Indonesia’s current business environment; or
  • There is a language barrier stemming from the search for Advisory Board professionals being in English.

Future Growth Opportunities

As an emerging sector in Indonesia, connection and collaboration with the global Advisor community will present strong future growth opportunities. Further, focusing on key market sectors –petroleum and natural gas, textiles and renewable energy– as well as acknowledging start-up and emerging industries are essential. It will also be important for Advisory Board professionals in market to be credentialed to best practice and ethics as this sector grows over time.

Key Statistics

Population 281.21 million
GDP $1,186,093 USD million
Labour Force by occupation
Agriculture28.5%
Industry22.36%
Services49.14%
GDP by sector
Agriculture13.28%
Industry39.86%
Services42.82%
Import $223,720 USD million
Export $255,731 USD million
Global ease of doing business rank 74th
Global ease of doing business score 66.47/100