Unveiling The Top 5 Industries Of Indonesia

From the resilient agricultural sector and the thriving digital healthcare landscape to the dynamic infrastructure and petrochemical industries, Indonesia’s economic tapestry unfolds as a vibrant canvas blending tradition with innovation.

Indonesia, the world’s largest archipelago, boasts stunning landscapes ranging from tropical rainforests to pristine beaches. Rich in cultural diversity, it’s home to vibrant traditions, ancient temples, and warm hospitality. Explore the economic pulse of Indonesia through this journey into its five major industries. From the resilient agricultural sector and the thriving digital healthcare landscape to the dynamic infrastructure and petrochemical industries, Indonesia’s economic tapestry unfolds as a vibrant canvas blending tradition with innovation.

Major Industries in Indonesia

Fintech Industry
Indonesia’s fintech sector stands out as one of the most competitive in the ASEAN region, thriving due to proactive government initiatives introducing policies such as peer-to-peer lending, digital payments, and open banking. These regulations aim to stimulate innovation and enhance financial inclusion, garnering both local and international investor interest. Despite the challenges posed by COVID-19, fintech startups in Indonesia have consistently attracted significant international funding, with notable examples being Kredivo securing US$110 million and LinkAja receiving US$200 million since late 2019. Indonesia’s fintech sector is poised for sustained growth, boasting a landscape populated by over 300 fintech companies and the emergence of more than four unicorns. This highlights Indonesia as a fertile ground for the exploration and development of financial technology.

Petrochemical Industry

The petrochemical sector plays a vital role in Indonesia’s economy, driven by robust domestic demand, increased investments, and technological advancements through collaborative ventures. However, the industry faced a downturn in 2020 due to the pandemic’s impact on petrochemical demand. Ensuring sustained growth involves prioritizing market research and innovation, especially in uncertain times. The oil and gas sector aims to enhance integration along the petrochemical value chain for business success. The industry’s shift to digital platforms necessitates manual platforms to adopt these modern manufacturing methods for continued success.

Infrastructural Industry

The infrastructure sector in Indonesia serves as a significant economic driver, exhibiting an annual growth rate of 6.8% from 2007-2019. Government restrictions on projects impacted earnings and GDP in 2020. Nevertheless, a rebound is anticipated in 2021, with a projected growth rate of 7.1%, contingent on normalized operations. Residential construction, constituting 25% of the industry, aims to contribute 4% to GDP by 2024. Achieving this goal hinges on increased infrastructure investments, with a planned expenditure of US$25.4 billion in the 2021 budget, alongside a US$2.6 billion allocation for state-owned enterprises to aid economic recovery.

Agricultural Industry

The agricultural sector, resilient amid the pandemic, has sustained market growth and significantly contributed to the economy, with the government prioritizing national food security. One initiative supporting this sector is the BNI Smart Farming program, a collaboration between BNI, the Ministry of Agriculture, and agricultural startups. The program aligns with the move towards Agriculture 4.0, employing modern methods such as soil and weather sensors for real-time land condition monitoring. The goal is to enhance cultivation results and, in the future, establish a digital agricultural ecosystem accessible to farmers across the archipelago.

Health Industry

Similar to the agricultural sector, the digital healthcare landscape in Indonesia is experiencing notable growth, amplified by the pandemic-induced surge in demand for healthcare services. This burgeoning digital health ecosystem has spawned various business opportunities, partnerships, and collaborations. Leveraging an already digitally engaged population, the transition to digital healthcare has been seamless, establishing a robust foundation in the country. Digital healthcare empowers individuals with precise health advice, offering consumers greater control, and in the current global context, it stands as the most practical and innovative solution for enhancing Indonesia’s healthcare system.