If you’re looking to Indonesia for manufacturing, or if you’re considering selling your products in Indonesia, you’re not the only one. With a growing economy and the ability to still produce cheap goods, it should be tops on your list of potential locations for trade. Indonesia is quietly becoming a world economic leader. The island nation currently hosts Southeast Asia’s largest economy, and the sixteenth largest in the world. Indonesia is on the cusp of becoming a middle-income nation, and in fact is home to the world’s fourth largest middle class.
Indonesia has experienced an average of 5% growth in each of the past 10 years. Its development is largely due to its affiliation with ASEAN (the Association of Southeast Asian Nations), and also contributes to the size of its economy. But, with increasing disposable income among its citizens, US companies and businesses are taking advantage..
Over the past ten years, bilateral trade between the two nations has increased by 53%. The US is Indonesia’s fifth largest source of imports, which makes it an established market in the region. The two nations are developing a TIFA, Trade and Investment Framework Agreement, that would improve trade numbers. The hope is to make the process easier, cheaper, and safer for both sides.