13-5-2024 (JAKARTA) Singaporean businesses are increasingly turning their gaze towards Indonesia, drawn by the allure of its expansive market and burgeoning industries. According to Enterprise Singapore, the government body facilitating international business endeavours, more than 300 Singaporean companies received support in 2023 to establish their presence in Indonesia.
This figure represents a significant surge compared to the amalgamated total of 200 companies in 2022 and 100 in 2021, as elucidated by Lim Jing Jun, Director for South-east Asia at EnterpriseSG. These enterprises span a spectrum of sectors, ranging from healthcare and industrial infrastructure to the green and digital economies.
In 2023 alone, the ventures undertaken by Singaporean companies in Indonesia resulted in approximately $111 million in overseas sales, underscoring the economic viability of cross-border collaborations.
This burgeoning partnership was underscored during the Singapore-Indonesia Leaders’ Retreat held in Bogor, West Java, on April 29. Prime Minister Lee Hsien Loong and Indonesian President Joko Widodo affirmed their nations’ commitment to cooperation, particularly in nascent domains like the green and digital economies.
Bilateral trade between the two countries reached US$69 billion (S$93.5 billion) in 2023, with Singapore’s foreign direct investment in Indonesia escalating by 15.8 per cent from the previous year to reach US$15.4 billion.
Indonesia’s stature as the world’s fourth most populous nation, with over 280 million inhabitants, coupled with an annual economic growth rate hovering around 5 per cent, renders it an attractive investment destination. Moreover, Indonesia’s gross national income (GNI) per capita, standing at US$4,580 in 2022, has propelled it back into the realm of upper middle-income countries, after a brief hiatus induced by the economic upheaval wrought by the Covid-19 pandemic.
Lim noted that this robust economic synergy between Singapore and Indonesia is underpinned by the close collaboration between the respective governments. EnterpriseSG diligently liaises with Indonesian governmental bodies to identify investment prospects that bolster Indonesia’s economic landscape.
The agency facilitates Singaporean enterprises’ entry into the Indonesian market through its overseas hubs in Jakarta and Surabaya. These centres serve as conduits for familiarising companies with the Indonesian business milieu and forging strategic alliances.
Furthermore, EnterpriseSG orchestrates joint business forums and excursions across the archipelago to spotlight investment prospects, particularly in burgeoning sectors such as the green and digital economies.
In a notable excursion in March 2023, over 130 Singaporean government officials and business luminaries ventured to Indonesia’s forthcoming capital, Nusantara, situated in East Kalimantan. This three-day sojourn, supported by EnterpriseSG, aimed to illuminate the manifold opportunities burgeoning within the new city.
Among the Singaporean enterprises venturing into the Indonesian terrain is Zuno Carbon, an environmental, social, and governance management platform provider. Founded in 2020, Zuno Carbon sought to capitalise on Indonesia’s economic momentum, particularly in emissions-heavy sectors like manufacturing and logistics.
Hari Nair, the Chief Executive and Co-founder of Zuno Carbon, remarked on the indispensable support rendered by EnterpriseSG in facilitating connections with Indonesian counterparts, thereby amplifying the company’s outreach in an unfamiliar market.
Another success story is Mesh Bio, a health tech startup offering predictive analytics for chronic disease management. Despite encountering hurdles in localising their platform and elucidating its utility, Mesh Bio found a steadfast ally in EnterpriseSG, which facilitated crucial collaborations and mentorship opportunities.
Andrew Wu, the Chief Executive of Mesh Bio, emphasised the significance of approaching the Indonesian market with an open mind and an adaptive disposition, crediting such flexibility for their successful expansion endeavours.
