PM Lee, President Joko Widodo grace Singapore-Indonesia Investment Forum on bilateral cooperation and business opportunities7 Sep 17 - The Forum was graced by President of the Republic of Indonesia H.E. Joko Widodo and Prime Minister Lee Hsien Loong, and attended by 500 business leaders and government representatives from the two countries.
- Participants will gain insights into Indonesia as the largest consumer market in ASEAN and business opportunities in tourism and infrastructure
- Singapore and Indonesia commemorate 50 years of bilateral and economic cooperation
Themed Business Opportunities in Indonesia’s Tourism Sector, the Forum was graced by Guests-of-Honour President of the Republic of Indonesia H.E. Joko Widodo and Prime Minister Lee Hsien Loong, and attended by some 500 business leaders and government representatives from the two countries.
As Singapore and Indonesia prepare to mark 50 years of bilateral ties this year, the Forum provided a timely update on Indonesia’s current business climate, policies as well as insights into tourism-related business opportunities in the rapidly growing economy.
Tourism has been identified as a key area of collaboration and an economic driver by the Indonesia Singapore Business Council (ISBC), jointly chaired by EDB and BKPM and vice-chaired by SBF and KADIN.
The Forum provided insights into growth opportunities in ASEAN’s most populous country, examining how companies can best position themselves to tap into niche sectors as Indonesia gears up to transform 10 cities earmarked to be modelled after the next Bali, and served as a networking platform for businesses and government officials to share ideas and explore different models for collaboration.
SBF Chairman Mr SS Teo said: “Indonesia emerges as the overseas market with the highest interest by our business community. We are also seeing more Singapore businesses looking to explore opportunities beyond Jakarta and Java, given that other Indonesia cities in the Central and Eastern parts of Indonesia are still growing rapidly and less saturated compared to West Java.”
Investment potential in Indonesia’s tourism sector
With sustained political stability and healthy economic growth, Indonesia holds vast potential for businesses as it allows access to a market worth over US$ 861 billion and is home to a sizeable population of over 260 million. As the largest economy in the ASEAN region and the world’s fourth-largest consumer market in terms of population size and a rapidly increasing middle class, it ranks behind only China, India and the US1.
The diverse archipelago nation ranks among the top investment destinations in the ASEAN region for foreign direct investments (FDI), attracting US$29 billion in FDI in 2016, with the biggest inflows coming from Singapore (US$9.2 billion), followed by Japan (US$5.4 billion) and China (US$2.7 billion).2
Tourism is a key driver of Indonesia’s economy, with Bali as a prime example with its progression into one of the wealthiest regions in Indonesia as compared to a mainly agriculture-driven economy some thirty years ago. To replicate this success, the Indonesian government has earmarked 10 cities collectively known as the Ten New Balis, which are expected to drive business opportunities in tourism and infrastructure projects.
According to SBF’s National Business Survey 2016/17, Indonesia ranks among the top six markets of interest in Southeast Asia (the other countries being Malaysia, Vietnam, Thailand, Myanmar and the Philippines), indicating its market importance to the Singapore business community.
Welcome Remarks by SBF Chairman Mr SS Teo
Opening Address by KADIN Chairman Pak Rosan P. Roeslani
Speech by Prime Minister Lee Hsien Loong
1 Source: World Bank: Indonesia – Country Statistics and Economic Data
2 Source: Indonesia Investment Coordinating Board (BKPM)