Indonesia and Japan have a strong partnership that is characterized by mutual growth opportunities – Indonesia offers a dynamic market landscape and abundant resources and Japan’s technological prowess continues to drive innovation across various industries. This synergy is further enhanced by the exchange of talent and expertise, with Japanese companies increasingly investing in local talent with diverse skill sets and global perspectives.
The backdrop of export growth, increasing individual consumption, and steady economic development make Indonesia a promising consumer market for Japanese companies. To harness the opportunities, over 1,000 Japanese companies, mainly in the automotive, electronics, and resources sectors, have set up operations in Indonesia. Indeed, Indonesia’s Gross Domestic Product (GDP) grew by 4.9% year-on-year in 2023, with Japan as Indonesia’s top five investment and trading partner – contributing to thousands of projects, millions of job employments, and decarbonization opportunities for Indonesia.
This being said, substantial changes in the economic environment, such as global warming and geopolitics, have challenged Japan’s competitiveness in the global arena, consequently making conventional business wisdom and approaches no longer applicable. For this reason, there is an urgency for Japanese companies to undergo transformation in various aspects to achieve sustainable growth in Indonesia and other overseas markets.
Japanese companies operating in Indonesia are at the forefront of this transformation. “In the ever-evolving global business landscape, Japanese companies are navigating shifts with strategic vision and adaptability, particularly in the Indonesian market”, says Heru Supriyanto, Japanese Services Group (JSG) Partner at Deloitte Indonesia. “Across sectors such as manufacturing, technology, new energy, and e-commerce, many of these companies are embracing innovative strategies and digital solutions facilitated by the Deloitte Indonesia JSG team, as part of Deloitte Southeast Asia; a trusted member of the Deloitte network in the region,” he added.
In response to heightened competition, Japanese companies in Indonesia are embracing agility and innovation to maintain their competitive edge. Cross-border collaborations and investments are on the rise, with Indonesian firms recognizing the value of partnering with Japanese counterparts to drive mutual growth and innovation. This collaborative approach extends beyond traditional business boundaries, fostering an innovative culture and shared success in the Indonesian market.
In the ever-evolving global business landscape, Japanese companies in various sectors such as manufacturing, technology, new energy, and e-commerce are navigating shifts with strategic vision and adaptability, particularly in the Indonesian market. They are embracing innovation and digital solutions facilitated by the Deloitte Indonesia JSG team, as part of Deloitte Southeast Asia, a trusted member of the Deloitte network in the region.
Heru Supriyanto, JSG partner at Deloitte Indonesia
Being 2,000 members strong with a good mix of local and Japanese professionals, the Deloitte Indonesia JSG team is committed to helping Japanese companies transform their overseas operations by leveraging the front-line knowledge and experience in a wide array of fields across Deloitte’s Southeast Asia, Asia Pacific and global networks, as well as our relationships across the various geographies.
With a robust presence and a team that has both international experiences and deep local expertise, Deloitte Indonesia JSG specializes in providing comprehensive end-to-end, one-stop services ranging from compliance, to mergers & acquisitions, to growth strategies. Be it navigating regulatory intricacies or executing strategic initiatives, we are committed to facilitating the expansion and success of Japanese businesses in Indonesia.
Deloitte Indonesia JSG plays a key role as a trusted advisor and transformation partner to Japanese companies as they navigate the complexities of the Indonesian market. Through our extensive network, deep industry insights, and collaborative approach, we are dedicated to helping our clients seize opportunities, mitigate risks, and achieve sustainable growth in Indonesia and beyond.
