Indonesia is a member of the G20, the largest economy in Southeast Asia, and has been growing at 5%+ for the past 10 years. With more than 270 million people, the country is Canada’s largest trading partner and top investment destination in the region. Indonesia’s growing middle class provides ample opportunities for Canadian exporters and investors, including cleantech and renewables, infrastructure and agriculture and agri-food, as the government rebalances its commodity-reliant economy.

Despite challenges, the business environment continues to improve as outlined in the World Bank’s Ease of Doing Business Index, and the growing presence of multinational companies in its economy.

Yet, challenges remain. Certain sectors of the economy remain dominated by large state-owned enterprises (SOEs) and private conglomerates. Also, regulation governing sensitive activities, like forestry, can be weakly enforced in some jurisdictions. There’s also an ongoing trend for a decentralization of powers to regional governments, which has resulted in some jurisdictions being more efficiently governed than others. The economy continues to be dominated by the island of Java, home to 60% of the population.