Indonesia is becoming one of the top choices for many multinationals looking to diversify their APAC portfolio as growth in China slows and India experiences high volatility
- Indonesia’s remarkable growth, which is drawing record numbers of global investors, is no longer limited to Jakarta and Java
- To take full advantage of Indonesia’s rapidly growing market, companies must strike a balance between market penetration and cost effectiveness
- Leading companies in Indonesia are accelerating their expansion outside of Jakarta and Java by focusing their efforts on:
- Prioritizing provinces and placing strategic bets
- Understanding the changing market landscape
- Leveraging relationships with local companies and distributors
B2C Companies Should Gauge Relative Opportunity by Tiering their Markets and by Monitoring Proxy Indicators to Add Depth to This Analysis*
- B2C companies should find a strong consumer base on the islands of Java and Sumatra, where the majority of Tier 1 and Tier 2 provinces are located
- Companies can conduct more in-depth studies by including proxy indicators and focusing on key cities during their tiering exercises; this should help them to expand strategically without spreading themselves thin
- Example: Monthly Expenditure, % of Households with Computers, CAGR of cellphone ownership
**Stay tuned for next post on Growth Opportunities in Indonesia B2B Market**
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