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Indonesia country brief

Indonesia is South East Asia’s largest economy and with its improving growth prospects, it looks set to become the newest member of the “BRIC” (Brazil, Russia, India and China) grouping of leading emerging markets.

New Zealand’s trade relationship with Indonesia has been growing steadily and, in the year ended December 2010, Indonesia was New Zealand's seventh largest export market and the largest in South East Asia.

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In January 2010, a multi-lateral free trade agreement between New Zealand, Australia and the Association of South East Asian Nations (ASEAN), including Indonesia, came into force. This agreement liberalises and facilitates trade in goods, services and investment.

Logistics

Qantas has four flights a week between Jakarta and Sydney. The New Zealand-Sydney-Jakarta route is popular for freight and passengers.

Tasman Orient has multi-purpose vessels on a 14-day fixed frequency that go to Jakarta and Surabaya directly from the North Island. P&O Nedlloyd, APL (American President Line), HAPAG Loyd, K Line, Maersk Sealand, Mitsui OSK, NYK Line, OOCLT and Malaysian International Shipping Corporation (MISC) also operate out of New Zealand and trans-ship containers to feeder vessels in Singapore for shipment to Jakarta and Surabaya.

Night view of Jakarta. (TRANZ / Corbis)

Opportunities

There is a growing demand for high quality meat cuts, especially for Indonesia’s well-developed luxury hotel market. Similarly, growing demand for dairy products, seafood and consumer food is related to the increasing sophistication in tastes of the burgeoning upper class.
New Zealand wood pulp and timber are sold as raw ingredients for Indonesia’s paper, newsprint and furniture export industries. Indonesia can absorb all the pulp that New Zealand can produce and would take more if supply was available.
Demand for overseas education is high. State tertiary institutions can’t meet demand. There has been increased interest in the tertiary sector and teacher and corporate training opportunities.
The halal sector great promise, particularly for New Zealand’s food and beverage sector as well as cosmetics and beauty products.

Cultural and business tips

New Zealand citizens entering Indonesia on business or as a tourist have to have a valid visa.
Learn a little Bahasa. A small amount of Indonesian language endears you to your audience.
Leave a small gift if you can. The giving of gifts such as books on New Zealand (preferably hard cover for someone important) is desirable. Corporate gifts such as pens are sufficient when making company calls.
Accept that appointments may be hard to get and your hosts’ schedules can change at short notice.