Indonesia

Indonesia’s current economic situation is characterized by steady growth alongside emerging macroeconomic pressures. GDP expanded by 5.03% in 2024, supported by low inflation at 1.57%, and early 2025 data indicate moderated but resilient growth of around 4.7% in Q1. Nevertheless, a widening current account deficit and depreciation pressures on the rupiah - driven by global monetary tightening and domestic political uncertainty - pose risks. For Swiss exporters, softer external demand and potential currency volatility require careful pricing strategies and proactive risk management.

In 2024, Indonesia’s trade performance showed moderate growth, with exports rising by 2.29% to USD 264 billion and imports increasing by 5.6% to USD 233 billion. Bilateral trade with Switzerland, however, fell by 29.7%, driven mainly by a sharp decline in Indonesian gold imports. Swiss exporters can benefit from preferential market access under the Indonesia–EFTA CEPA and should focus on high-potential areas supported by Indonesia’s current trade trends, such as agriculture and selected manufacturing segments, which recorded solid export growth. Careful sector analysis remains essential, as services-related export data - such as digital services - are not yet consistently reflected in official statistics.

Swiss companies can tap into strong opportunities in Indonesia’s renewable energy sector, particularly in hydropower, which remains an important pillar of the country’s energy transition plans. Swiss expertise in hydropower engineering, grid integration, and sustainability standards is well aligned with Indonesia’s current investment priorities. In addition, Swiss firms can build on their strong reputation in medical technology and pharmaceuticals, as Indonesia continues to rely heavily on imported medical devices and seeks international partners to upgrade healthcare infrastructure. Success in both sectors will depend on forming local partnerships and navigating regulatory requirements effectively.

Swiss exporters should focus on sectors like renewable energy, medical technology, and pharmaceuticals. The renewable energy sector, particularly hydropower, is expanding and aligns with global sustainability goals, offering Swiss companies opportunities to leverage their expertise. Additionally, Swiss firms have a strong reputation in medical technology and pharmaceuticals, which can be capitalized on through strategic collaborations and navigating regulatory frameworks in international markets.

Swiss exporters face several key challenges when engaging in the Indonesian market. Currency volatility - both the strong Swiss franc and fluctuations of the Indonesian rupiah - can affect pricing and competitiveness. Regulatory complexity, including evolving import rules and local content requirements, adds administrative burdens and may necessitate local partnerships. In addition, geopolitical tensions and global supply chain disruptions can impact delivery timelines and market access. To mitigate these risks, exporters should employ effective currency-hedging strategies, monitor regulatory developments closely, and build resilient supply and distribution structures.