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GO EAST
One of the most vibrant and dynamic regions in the world, the countries of southeast Asia offer UK fi rms major scope for business, writes Janet Tibble
Established in 2004 and currently co-chaired by the Business Secretary Vince Cable, the Asia Task Force is playing a major part in the Government’s strategy to help the UK trade its way out of recession. The panel comprises senior business leaders, academics and country specialists who advise on strategies to increase trade and investment between the UK and the Asia region. Annually, a series of events are held throughout the UK, bringing together experts from the market with UK businesses. Find out more at
www.businessinasia.co.uk.
EMERGING STRENGTHS Indonesia has the largest economy in all of southeast Asia, a region acknowledged as having some of the world’s fastest- growing markets. It is also the world’s fourth most populous nation, with more than 240m people, largely centred in urban areas. There is an emerging middle class of
around 35m people, with the potential to grow signifi cantly over the coming years. These components, mixed together with a wealth of natural resources, offer compelling reasons why UK companies should consider Indonesia as a market of huge potential. “Indonesia performed well during
the recent global downturn due to its large domestic market, which is one of the major drivers of economic growth,” says Debbie Clarke, director of trade and investment at the British Embassy in Jakarta. “The country was largely insulated from the effects because it is less dependent on exports.
“One of the things that struck me
when I fi rst arrived was how familiar Jakarta felt. There is a visible UK business presence, with stores like Topshop, Dorothy Perkins, Next, M&S, Mothercare and Debenhams. Around the city you see Prudential, HSBC, BP and more, which indicates that this is an environment in which UK companies thrive. “Bureaucracy can be daunting to
companies new to the market, but the key is to fi nd a good local partner. They will know the appropriate product registration and customs procedures. We can help companies by providing advice on their business plans and growth potential in Indonesia. We offer a wide range of services that can be tailored to individual customers. For example, we can identify potential partners, arrange visit programmes and help with the communication process to ease a company’s introduction to the market. “I have found that face-to-face contact
is more important in Indonesia than anywhere else in Asia. You need to make several visits to get to know people before you can do business with them. Companies don’t always respond to emails or calls. Sometimes text messages
“INDONESIA PERFORMED WELL DURING THE RECENT GLOBAL DOWNTURN DUE TO ITS LARGE DOMESTIC MARKET, WHICH IS ONE OF THE MAJOR DRIVERS OF ECONOMIC GROWTH”
work better, but communication works best when it is face to face. The key advice is to be patient. It is possible to manage a relationship remotely once you have got the basics in place and fi nding the right partner makes things easier.” “Indonesian companies are very
open to building relationships with UK businesses. UK goods and services enjoy a strong reputation, particularly for quality. The key things is to have something that’s innovative and can offer a competitive advantage.” Opportunities exist in all sectors,
but areas particularly suited to UK expertise are oil and gas (sub-sea technology and coal bed methane development), infrastructure development (ports and airports) and fi nancial services, particularly for services relating to rights issues and privatisation. Education and skills is another good fi t. Local educational institutions are keen to develop relationships with UK counterparts and the introduction of professional qualifi cations is also an area of demand. Indonesians are technologically
savvy and the most prolifi c users of Facebook outside the US. Indeed, UK Trade & Investment in Jakarta uses the social networking medium to promote its key messages. ICT is one of the country’s most transparent sectors. Niche computer software is in demand and opportunities exist for mobile technology, particularly in the east of the country. Consumer goods are high on the shopping list of Indonesia’s burgeoning middle class.
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