By H.E. Mr. Arif Havas Oegroseno, Ambassador of Indonesia in Germany
Indonesia is ready to take centre stage as the official partner country of the Hannover Messe 2023, the world’s largest industrial trade fair. With a focus on showcasing innovative products and services, as well as forging new partnerships with international industry players, Indonesia is fully committed to leveraging this event to bolster its economy and solidify its position as a global player.
This is not Indonesia’s first time participating in the Hannover Messe, having been a partner country in 1995 and in the digital version in 2021. This time around, Indonesia is bringing around 150 companies representing various industries, from Automation, Motion & Drives, Digital Ecosystems, Energy Solutions, Engineered Parts & Solutions, Future Hub, and Global Business & Markets.
The theme of the partnership between Indonesia and Hannover Messe 2023 is “Infinite Journey,” which highlights Indonesia’s national target roadmap for Indonesia 4.0. This roadmap is an ambitious plan that aims to transform Indonesia into one of the world’s top 10 economies by 2030. It focuses on five key areas: human capital development, infrastructure development, creating a business-friendly environment to foster innovation and entrepreneurship, and industrial transformation.
Indonesia’s Economic Growth Trajectory and Its Potential for Foreign Investors
Indonesia is a must-consider destination for the global industry due to several factors, especially during these times. Indonesia’s economy has been on a steady growth trajectory for years, and the country has established itself as a key player in the global market.
One of the reasons why Indonesia is a perfect partner for the global industry is its abundant natural resources. From minerals to timber and palm oil, Indonesia has a wealth of resources that are in high demand around the world. In fact, in 2021 Indonesia was the world’s 13th largest exporter, with exports totalling US$191 billion. This is a clear testament to the country’s potential as a valuable trading partner.
Indonesia’s natural resources present many opportunities for foreign investors to collaborate with Indonesian companies and help them develop sustainable and environmentally friendly industries.
Another reason why Indonesia is an attractive partner for the global industry is its democracy and political stability. Indonesia is the world’s third-largest democracy, and its political system has remained stable for more than two decades. The country’s stable political environment provides a favourable investment climate, allowing foreign investors to focus on developing their businesses rather than worrying about political risks.
Indonesia’s huge market is another factor that makes it an ideal partner for the global industry. With a population of over 270 million people, Indonesia is the world’s fourth most populous country. The middle class is projected to grow from 74 million in 2020 to 135 million in 2030, according to a report by McKinsey & Company. This large population, with over 60% of the population under the age of 40, is not only large but also incredibly dynamic and innovative market. Combined with a growing middle class and a dynamic, digitally savvy youth generation, its presents enormous opportunities for foreign investors to tap into Indonesia’s consumer market. As of 2021, Indonesia’s digital economy was valued at $44 billion and is projected to grow to $124 billion by 2025. This growth is being driven by a young, dynamic, and digitally-savvy population, with over 170 million internet users in the country.
Indonesia and Its Global Commitment to Net-Zero Emissions
Indonesia is also part of the global solution in climate change and is in line with the global commitment to net-zero emissions. The country has set an ambitious target of reducing its greenhouse gas emissions by 41% by 2030, in line with the Paris Agreement. This commitment presents opportunities for foreign investors to collaborate with Indonesian companies in developing sustainable industries, such as renewable energy, waste management, and sustainable agriculture. This commitment to sustainability is also resonated in the Hannover Messe 2023 theme of “Infinite Journey,” which emphasizes the importance of finding the best balance of sustainable solutions for industry and the environment.
Lastly, Indonesia welcomes investment with partnerships for fair trade and cooperation. The Indonesian government has implemented various policies to attract foreign investors, such as simplifying regulations and offering tax incentives. Furthermore, Indonesia has signed various free trade agreements, including with Australia, China, and Japan, as well as ASEAN RCEP and in negotiation with EU for the Comprehensive Economic Partnership, that are providing a strong-solid avenue for the relations.
Indonesia’s Infinite Journey
In the Hannover Messe this year, Indonesia will showcase the national roadmap “Making Indonesia 4.0” and its implementation to date, the Indonesia’s Special Economic Zones, innovation in seven priority sectors of Industry 4.0, the green industry, and the start-ups innovations. And to complete the showcasing, several conferences covering topics ranging from sustainability and energy transition to human capital will also be presented.
Located in Hall 2 of the fairground, the 3000 sqm National Pavilion of Indonesia will take visitors on an “Infinite Journey” by presenting the iconic “Pinisi,” an Indonesian traditional sailing vessel that has been used by Buginese sailors since the early 20th century.
The Pinisi’s significance goes beyond its historical value. It serves as a powerful symbol of Indonesia’s infinite journey towards Industry 4.0, showcasing the nation’s readiness to embrace future challenges with resilience and determination, just as it has done throughout its maritime history. By showcasing the Pinisi and its timeless design, Indonesia aims to inspire visitors to embark on the infinite journey towards progress and innovation while staying connected to their cultural roots.
For further information
Hannover Messe: https://www.hannovermesse.de/en/
Embassy of Indonesia in Germany: https://www.kemlu.go.id/berlin/en
