Expand Your Business to Indonesia
Your Next Big Growth Market

Indonesia GDP Continues Its Upward Trajectory

The Indonesia GDP reached over USD 1.4 trillion in 2024, solidifying its position as the largest economy in ASEAN and the 16th largest in the world. This figure is expected to grow steadily, backed by consumer spending, industrialisation, and foreign investment. Projections suggest the GDP could cross USD 1.7 trillion by 2027, placing Indonesia among the top 10 global economies by purchasing power parity (PPP).

This growth isn’t just statistical it represents real purchasing power, rising wages, and increasing demand for quality products, services, and experiences across the country. Additionally, Indonesia’s government is increasingly investing in disaster risk finance mechanisms to protect its fiscal resilience against natural hazards strengthening the overall stability of the national economy and enhancing investor confidence.

Indonesia Inflation Remains Under Control

While global economies are battling volatility, Indonesia’s inflation has remained relatively stable. The central bank’s prudent fiscal policies and careful subsidy management have kept inflation rates in check—hovering around 2.9% to 3.2% in 2024. This stability is crucial for foreign investors, as it creates a predictable business environment and ensures that consumer purchasing power remains intact.

Inflation control also contributes to lower interest rates and a growing appetite for retail credit, further fueling e-commerce and retail growth. For SMEs planning long-term operations in Indonesia, this environment supports profitability and sustainable scaling.

Indonesia is a digital powerhouse. With over 215 million internet users and an 80% internet penetration rate, Indonesia is among the largest online markets globally. Most Indonesians access the internet via smartphones, spending over 8 hours per day online—much of it on e-commerce platforms, social media, and messaging apps.

This digital behavior is powering a massive boom in online commerce. The country’s e-commerce Gross Merchandise Value (GMV) is expected to reach US$94.5 billion by 2025, a 55% increase from 2023. Platforms like Tokopedia, Shopee, and TikTok Shop are thriving, making Indonesia a magnet for digital-first businesses.

What does this mean for Singapore brands?

• It’s easier and cheaper to launch in Indonesia online before committing to physical infrastructure.
• Indonesians are already used to buying from cross-border sellers.
• Localization tools—like language translation and local payment gateways—are widely available.
• Government grants like the MRA allow you to offset 50% of your digital market promotion costs.

Whether it’s social media ads, influencer campaigns, or setting up shop on local marketplaces, the Indonesia growth market offers a low-barrier, high-potential channel for entry.

Indonesians are discerning, digitally native, and increasingly quality-focused. According to a 2024 Mastercard–CrescentRating study, the top three consumer drivers are:

• Quality of product
• Halal certification
• Value for money

Nearly 48% of Indonesians say they prefer international brands because they believe they offer better quality. This is particularly true in categories like:

• Personal care and health
• Baby and family products
• Food and supplements
• Home and lifestyle goods

Singaporean products are perceived as safe, trustworthy, and premium, allowing SMEs to justify higher prices—especially if the branding is culturally relevant and customer support is responsive.

In fact, nearly 47% of Indonesian online shoppers buy from overseas, primarily for quality reasons. That makes the Indonesia growth market incredibly receptive to direct-to-consumer (DTC) models from Singapore SMEs, especially when paired with strong digital engagement.