SWOT Analysis for Indonesia

Indonesia is a country situated in South East Asia. It is part of the ASEAN community and is the 4th most populous
country in the world with the 10th biggest economy by GDP. Indonesia in home to a big number of diverse cultures.
Indonesia is having more and more importance in the world economic sphere and is set to be a global importance
in the 21st century. Transitioning from an agriculturally based economy to a more industrial manufacturing and
service economy, we will make a SWOT analysis to understand how Indonesia is taking more and more importance
as a strong emergent economy.

Strength Weaknesses Opportunities Threats

1. Large domestic market (260
millions), with a strong and
increasing demand
2. Diverse Natural Resources
(energy, mining, agriculture)
3. Low labor cost
4. Strong cooperation with the
ASEAN community
5. Strong financial system
1. Very dependent on Chinese
market demand
2. High current account deficit
3. Lack of infrastructure
4. Economy very dependent on
FDI (big challenge in 2019 with
the growing interest rates)
5. 21% of the population still lives
under the poverty line
1. Large population which mean a
large domestic market
2. Strong connection with the rest
of the neighboring countries
3. Increasing FDI in emerging
economies
4. Increasing access to the
internet (10% in 2018)
1. Increasing political instability
2. 26 million people still under the
poverty line
3. Growing terrorist threats from
within the country and abroad
4. Growing interest rates which
could affect FDI
5. Education sector still
debilitated (only 9% of the
pop. over 25 with a bachelor’s
degree in 2016)
Conclusion

 After this analysis we can conclude that Indonesia is on the right path to become a strong and successful
economy thanks to its large population which is its main asset. They have also gained a very strong
importance in South East Asia as they have a big labour force for low quality products. Also they have
benefited from their strong mining, agricultural and energy sector which is helping the country grow as well
as a strong FDI.
 While they are striving in certain sector Indonesia should strongly invest in public spending to help their
population strive. Today still 21% of the population live under the poverty line and this issue could turn in to
a major threat later on. Indonesia should also address the issues of corruption and political instability which
could cause fear upon investors which account for more than 30% of the investments made in the country.
They also have to invest in their education as 70% of the population will be working age adult by 2030.