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SWOT Analysis For Indonesia

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

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