Danish businesses eye Indonesia’s rising global profile

Economic expansion and growing middle-class have made Indonesia an attractive market to an increasing number of Danish companies wishing to export to this Southeast Asian country. But widespread corruption in Indonesia remains an obstacle to trade.

Indonesia, the world’s fourth most populous country, is experiencing a massive economic growth that goes hand in hand with huge consumer spending. This presents exciting business opportunities for Danish exports, Mathias Gredal Nørvig, Senior analyst at EFK, Danish Export Credit Agency, said in an interview with Jyllands Posten.

There is an increasing demand for construction materials and machinery for cement-production as the country tries to improve its infrastructure. The demand is driven by  private and public construction projects.

Indonesia has been put in the attractive Next-Eleven category by investment bank Goldman Sachs, as the country is said to be on track to become a new global power in addition to the BRIK-countries.

Indonesia GNP has risen by 35 percent since 2009, which makes it attractive for foreign investors.

The upcoming parliamentary election in April and the presidential election in July in a country that consists of some 17000 islands, has put the foreign investments on hold, and a lot of companies are waiting to see any move towards market reform will be agreed upon. Indonesia is ranked high on the global corruption perception index, and the financial sector is mired in widespread corruption, which could dampen the sentiments of some Danish companies.

Source: Jyllands Posten, February 20.

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