Indonesia: a promising, complicated and emerging market for Utah companies
By: Joanne Meng, Intern, Governor’s Office of Economic Development, International Trade & Diplomacy Office
The upcoming Utah Trade Mission to Indonesia (September 24-28) offers business owners an excellent opportunity to explore this unique country, with the world’s fourth largest population of 240 million and an economy anticipated to grow at an average rate of 8 percent over the next several years.
What specific opportunities does that create for the companies in Utah?
Currently, there are 19 scheduled and 41 chartered airline companies operating in Indonesia. Utah aviation industry has significant opportunities along all aerospace subsectors. Specifically, there is a pressing need for air traffic control systems, airport ground support equipment, safety and security equipment, IT infrastructure and services, and engineering and logistics surrounding the airport supply chain.
In January 2009, the Government of Indonesia issued new mining regulations covering mining areas, coal and mineral businesses, mining supervision, reclamation and post mining issues. The regulations are expected to increase investors’ confidence and help Indonesia’s mining industry reach $147 billion in real terms 2015. Utah businesses have prospects in supplying mining equipment and services to be utilized in various stages of mining operations.
As the fourth most populous country in the world, Indonesia relies heavily on imported medical equipment and supplies. Total imports of medical equipment grew from $508 million in 2009 to $543 million in 2010, with U.S. imports accounting for 20 percent of this market. This sector continues to present excellent opportunities for Utah companies with predicted strong growth over the next two years. According to the market research done by the U.S. Commercial Service, life support equipment such as ventilators, anesthesia equipment, patient monitoring equipment, electro-medical equipment, ultrasonic scanning machines, diagnostic equipment, and disposable products render the best prospects.
Albeit Indonesia’s market offers tremendous opportunity to Utah exporters of goods and services, small- and medium-sized firms entering the Indonesian market increase their likelihood of success working with strong local agents or distributors. The upcoming trade mission, led by the Governor’s Office of Economic Development, in conjunction with the World Trade Center Utah and the Small Business Administration, helps offset foreseeable red tape and establish valuable networks with other U.S. companies already doing business in Indonesia. The U.S. Commercial Service Jakarta helps interested companies identify and qualify potential Indonesian representatives.
The trip will include a variety of business meetings and networking opportunities, among other valuable activities. For an affordable rate, U.S. Commercial Service Gold Key Matching Services will be provided to companies interested in engaging and evaluating potential distributors, joint-ventures, and other partnerships.
For additional information on the mission, please contact Joanne Meng at the Governor’s Office of Economic Development at firstname.lastname@example.org or 801.538. 8693.