The Business Columns section of Indonesia Investments provides in-depth columns that exhibit an analysis regarding subjects that are both important for understanding the Indonesian business climate and have high news value in the current state of Indonesia's economy. As a whole these columns should provide the reader a thorough and detailed picture of multiple Indonesian business sectors and be a source of ideas or inspiration to invest - or not to invest - in specific sectors of the Indonesian economy.
Indonesia is one of Southeast Asia’s fastest-growing eCommerce markets and a key opportunity for global brands. Fueled by high smartphone usage, rapid digital adoption, and a young, mobile-first population, the market has grown quickly in recent years. Indonesia is now the world’s 10th largest eCommerce market, with total GMV projected to reach USD 140 billion by 2030.
In recent years, many companies have been modernising their technology to enhance efficiency. However, the replacement of employees with technology or automated systems has often led to layoffs. While the Employment Law provides protection through severance pay for affected employees, the core issue for employees goes beyond post-termination benefits. The real challenge is how employment relations can remain resilient and adaptive amid the rapid advancement of technology.
It is uncertain whether Indonesia can impose the B50 stage of its biodiesel program in 2026 (which would be the next step after launching the B40 stage in Q1-2025). Currently, the B50 stage is still being studied. In fact, government officials are currently discussing whether it is better to opt for a B45 stage first.
Based on data from the Energy and Mineral Resources Ministry of Indonesia, total installed geothermal power capacity in the country currently stands at 2.74 gigawatt (GW). This puts Indonesia on second place in terms of utilization of geothermal power, after the United States (with installed capacity of 3.9 GW).
The views expressed in these business columns are the views of the authors or the interviewed persons only and therefore do not necessarily reflect the views of Indonesia Investments. The authors are free to ventilate their opinions about the Indonesian business climate. Facts presented in these columns are the result of the author's own research or indicated sources, read disclaimer.
