Page 33 - Forbes - Asia (December 2019 - January 2020)

SPECIAL ADVERTISING SECTION
INDONESIA:
SUSTAINABLE SUCCESS
The country’s leading businesses see growth in catering to Indonesia’s expanding consumer market
Having won a second term in office, Indo-
nesian President Joko Widodo and his
new government will be looking to con-
tinue their mission to develop the coun-
try’s infrastructure and attract foreign
investment. Jakarta announced a US$400
billion infrastructure plan following Presi-
dent Widodo’s re-election, including
more than two dozen new airports and
power plants, aimed at boosting eco-
nomic growth.
Both large conglomerates and newer
emerging firms are looking to capital-
ize on Indonesia’s continued economic
growth, even as they seek to contribute
back to society.
One company that has grown along
with Indonesia is Astra Group. Since its
founding more than 60 years ago, the
leading diversified conglomerate has
been committed to prospering with
Indonesia, a journey that it continues on
to this day. In order to realize this vision,
the group has been working to promote
sustainable growth in Indonesia that bal-
ances economic priorities with social and
environmental concerns.
In the consumer sector, Indonesian
companies have benefited from the
growing ranks of middle-class consumers
as they seek out ways to give back.
with higher purchasing power. One such
success story is PT Nippon Indosari Cor-
pindo Tbk, the leading bread company
in the country that owns the top-selling
brand Sari Roti. With an overwhelming
90% market share in Indonesia’s mass
production of bread, the company is
now looking to replicate its recipe for
success in overseas markets such as
the Philippines.
Retailers have also cashed in on the
rising number of shoppers with fatter
wallets. Alfamart has expanded over
the past 20 years to become one of
the largest minimarket chains in Indo-
nesia, serving over 4.1 million custom-
ers every day. Meanwhile, Kawan Lama
Group grew from a single kiosk in 1955 to
become a billion-dollar retail giant today
boasting market-leading brands such as
Ace Hardware.
Indonesia’s fast-growing technology
scene is another bright spot in Southeast
Asia’s largest economy. Indonesians are
among the world’s biggest users of Face-
book and Twitter, and a global leader in
digital applications such as ride hailing
and e-commerce. In 2018, the country’s
digital economy had an estimated value
of US$27 billion, and is expected to grow
further on the back of government incen-
tives including tax breaks.
Unsurprisingly, Indonesia’s startup
scene is one of the most dynamic in Asia.
During President Widodo’s first term,
Indonesia saw the emergence of four
startups, each with a value of more than
US$1 billion, including ride-hailing service
Gojek and online store Tokopedia.
With an aim to support the country’s
newest entrepreneurs, Alpha JWC estab-
lished itself as a leading venture capitalist
in Indonesia in less than four years. With
one of the largest VC teams in the coun-
try, Alpha JWC has a deep understanding
of local market conditions.
Amid the country’s growing prosper-
ity, Indonesia’s financial services sec-
tor is also stepping up to help manage
the growing wealth of its people. For
instance, Bank Mandiri, Indonesia’s larg-
est financial institution, has been a lead-
ing player in managing and growing the
assets of Indonesia’s affluent.
As uncertainty persists in the global
economy, these and other dynamic
Indonesian businesses will continue to
prosper on the back of resilient and sus-
tainable business models that have suc-
cessfully delivered superior value.
Indonesia 1