Indonesia, the largest economy in Southeast Asia, aims to achieve high-income status by 2045. This ambition is supported by consistent economic growth, averaging over 5% annually, and a strategic push to penetrate global markets to sustain this growth and diversify the economy. Indonesia’s current economic growth, largely dependent on natural resources and driven by domestic consumption, is not sustainable for achieving developed country status. To enlarge its economic pie, Indonesia must penetrate global markets, transitioning from a consumer to a producer of goods and services for the world. Achieving this goal requires strategic planning and concerted efforts from all stakeholders, particularly in the economic and business sectors.

Despite these advantages, the internationalization of Indonesian products and services remains stagnant. To address these issues, this research aims to explore the challenges and opportunities in the international market. By understanding the factors that hinder or facilitate international expansion, this study seeks to provide strategic insights for improving the global competitiveness of Indonesian products.

This report is based on research conducted by Doctrine UK and Equatorise aimed at understanding the challenges faced by Indonesian enterprises and exploring the potential competitive value of Indonesian products in global markets. The research incorporates insights from interviews with the Ministry of State-Owned Enterprises, C-Level and management level executives of state-owned enterprises, and directors and managers of private sectors, alongside applying Porter’s Five Forces Framework and the National Competitiveness Framework together provides a comprehensive view of the competitive environment and key factors determining Indonesia’s global competitiveness. These attempts helped build a final framework that Indonesian companies can utilize to go global and will help Indonesian enterprises to devise more efficient internationalization strategies tailored to current market dynamics.

The later chapter of this report will be related to the literature review, research methodology, main result and highlight result from each stage of data collection. In conclusion, the internationalization of Indonesian enterprises is crucial for sustaining economic growth and achieving high-income status by 2045. By leveraging government support, embracing innovation, and adopting robust competitive strategies, Indonesian companies can successfully penetrate global markets and enhance their global competitiveness. Insights from recent academic research and industry interviews underscore the potential for Indonesian enterprises to thrive on the global stage.

The full report can be downloaded here.

We are looking for contributors to write articles on Doctrine UK’s website. For this programme, the contributors must be the members of Doctrine UK. For your guidance, please have a look at article submission guidelines as attached.

If you have fresh ideas translated into a short text (500-800 words) either in Bahasa Indonesia or English, please let us know. Send your ideas or writing to: km@doctrineuk.org.

We are looking forward to your contribution.

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