Market Profile

  • Population (2020) : 275 million, about 50% below 40 
  • GDP (2020) : USD 1,060 billion
  • Government : Presidential Republic
  • Main Language : Bahasa Indonesia
  • Currency : Indonesian Rupiah (IDR)
  • World Bank “Ease of Doing Business” Rank : 73

Why Indonesia ?

  • Indonesia has a strategic location, located in the Indian and Pacific Oceans with Australia in the south
  • Indonesia is the largest economy in Southeast Asia, a diverse archipelago nation of more than 300 ethnic groups and has charted impressive economic growth since overcoming the Asian financial crisis of the late 1990s
  • Indonesia is recognized globally as a fast-emerging developing country with strength in the industrial and services sectors


Doing Business in Indonesia

  • Having maintained political stability, Indonesia is one of East Asia Pacific’s most vibrant democracies, emerging as a confident middle-income country
  • Indonesia provides a very diverse environment for foreigners willing to work in the country, depending on their situation: large cities like Jakarta, touristic destinations like Bali, or remote islands and countrysides
  • Indonesia’s large workforce make the country and ideal hub for industrial production. The country’s large cities are transforming into specialized industrial and service hubs to help the modernization of its economy, notably through the industries of machinery, electronics, automotive and auto-parts


Impact of COVID-19

  • Prior to the COVID-19 crisis, Indonesia was able to maintain consistent economic growth, recently qualifying the country to reach upper middle income status
  • However, the global crisis caused by the COVID-19 pandemic brings unprecedented complications for Indonesia to achieve its development goals
  • To respond to the shock of the COVID -19 pandemic, the government implemented emergency fiscal packages equivalent to 3.8% of GDP (actual spending) in 2020 and to 4.2% of GDP (tentative data) in 2021, to deal with the health impact, provide relief to households and firms, and support the vaccine roll-out, and the recovery

Main Industries in Indonesia

Top 5 Main Export Partners

Top 5 Main Import Products in Indonesia

  • Indonesia is ranked 73rd in the World Bank’s 2020 Ease of Doing Business rankings, compared to Malaysia’s 12th position. Foreign companies may find it difficult to enter the market without first having establish a network of contacts as well as having a solid, on the-ground understanding of the country, in addition to eventually finding a partner or setting up in the country
  • Despite Indonesia being one of the largest natural gas resources and exporters in the world, it still lacks in LNG infrastructure. This has been a major challenge for the LNG sector
    • With its large land area and tropical climate, Indonesia is rich in natural resources such as oil and minerals, timber and raw of semi-transformed agricultural products
    • The Indonesian government has forecast development drilling this year will return to the highest level since 2014 as global crude prices maintain their recovery
    • In order to increase oil and gas production, the government will optimize the existing production fields using technologies such as infill drilling and Enhanced Oil Recovery (EOR) technology
    • Equipment and service providers for deep-sea development can expect increasing demand in Indonesia, because most of the country’s potential for new hydrocarbon discoveries lies offshore.
    • The government targets long-term, sustainable growth and attractiveness through a business-friendly taxes that helps both small and large companies
  • Companies must visit the Indonesian market in order to properly choose an appropriate agent or distributor in Indonesia
  • Indonesia ranks particularly low on procedures to start a business as well as contract enforcement. As such, companies may need to hire local law consultants to assist with business set-up procedures
  • Companies may enter the Indonesian market through direct investment, an agency/joint venture agreement, or via a local branch setup
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  • Indonesia has the largest oil and gas reserves in Southeast Asia which represents 42.23% and ranked 23rd by reserves of crude oil in the world as of 2020
  • The nation is ranked 15th by reserves of natural gas in the world and has 57% times more than Malaysia’s
  • Indonesia’s oil reserve to production (r/p) ratio stands at 8.7 years, while its gas r/p ratio is 21.2 years as of 2019
  • Indonesia is the largest oil and gas producer in Southeast Asia and was the only Asia-Pacific member of the Organization of Petroleum Exporting Countries (OPEC) in 2016
  • Indonesia imported $5.11B crude petroleum, becoming the 26th largest importer of Crude Petroleum in the world as of 2019




Directorate General of Oil and Gas

  • Responsible for formulating and implementing policies in the field of development, controlling, and supervision for any activities on oil and gas in accordance with laws and regulation

SKK Migas

  • The body  that monitors and regulates the work commitments of local and foreign oil and gas operators
  • Ensures operators adhere to the prevailing local content requirements
  • Implementing the management of upstream oil and gas business activities under Cooperation Contract

Indonesian Investment Coordinating Board

  • Government agency that responsible to attract and facilitate foreign investment into Indonesia
  • Coordinate policies and services in the field of investment based on the provisions of laws and legislation
  • Fostering implementation of the investment, and aid the completion of various obstacles and consulting problems faced by investors in carrying out investment activities


Chevron Pacific Indonesia

One of the largest crude oil producer, operates in Sumatra, Deepwater development and trading

ExxonMobil Cepu Limited

Holds 45% market share in Cepu Block, Indonesia

Pertamina EP Cepu

Engaged in upstream oil and gas business activities with the mining working area in Cepu Block

Pertamina Hulu Mahakam

Operator of the Mahakam work area in East Kalimantan, has commenced work on three offshore platforms


Through its subsidiary, Petronas has made an oil discovery at the Hidayah-1 exploration well, offshore East Java, Indonesia. Operator for the Bukit Tua oil and gas field offshore East Java

China National Offshore Oil Corporation

Owns working interests in two PSC blocks; Tangguh LNG and Madura Strait in Indonesia

Other operators:

  • PT Pertamina Hulu Energi OSES
  • PT Pertamina Hulu Energi ONWJ
  • Medco E&P Natuna LTD
  • Petrochina International Jabung LTD
  • ConocoPhillips

OGSE Companies

PT Wintermar Offshore Marine Tbk

Offshore service provider such as rig move and anchor handling, air diving and ROV support, seismic survey support , etc

PT Hutama Karya (Persero)

Provides Engineering, Procurement and Construction (EPC) services

PT Mahakarya Geo Survey

Leading provider of marine survey and underwater services such as marine seismic exploration, metocean services  and airborne geosolutions

PT Meindo Elang Indah

Offshore EPCI, onshore EPC, brownfield services and yard fabrication



Sapura Energy Bhd

Engineering, Procurement, Construction and Installation (EPCI) and pre-commissioning activities.

Serba Dinamik Holdings Berhad

Provides Liquified Natural Gas (LNG) transportation services from Bontang to Kariangau in Indonesia

Uzma Berhad

Provides directional drilling together with manpower services for the drilling of Sumatera 1 exploitation wells.

Mir Valve Sdn Bhd

Supply of four pieces of MV5-SS subsea fully welded ball valves for PSJP TBBM Pengapon terminal

KNM Group Bhd

Design, engineering, and supply of Column-I (SK) and Column-II (SK) respectively for the Refinery Development Master Plan (RDMP) RU-V Balikpapan Project

Java Offshore Sdn Bhd

Provides geophysical and geotechnical site investigation

Contact Details


Embassy of Malaysia in Indonesia 
Jl. H.R. Rasuna Said Kav.X/6, 
No. 1-3 Kuningan 12950 Jakarta Selatan

Web: www.kln.gov.my/web/idn_jakarta
Email: maljakarta@kln.gov.my
Tel +62 21 5224947


Embassy of Malaysia
Malaysia External Trade Development Corporation (MATRADE)

12th Floor, Plaza Mutiara
Jl. Lingkar Kuningan
Kav. E.1.2, No. 1 & 2
Kawasan Mega Kuningan
Jakarta 12950 Indonesia

Name: Mr. Har Man Ahmad
Email: jakarta@matrade.gov.my
Tel: +62 21 576 4322/4297
Web: www.matrade.gov.my

Click i-ogse@mprc.gov.my to request more information