European companies are increasingly attracted by Indonesia’s growing consumer population and its promising food, beverages and agricultural market. EU Commissioner for Agriculture and Rural Development, Phil Hogan, said at the 6th EU-Indonesia Business Dialogue (EIBD) on Tuesday (Nov. 8, 2016) that many companies in the EU are interested in investing in Indonesia.
Indonesia’s food, food crop and plantation industry are among the top 10 sectors for foreign direct investment (FDI) in the country, numbers of the Indonesian Investment Coordination Board (BKPM) show. According to reports of the Indonesian Chamber of Commerce and Industry (Kadin) the EU invested EUR 13.3 billion in Indonesia within the past five years. The bilateral trade in goods between Indonesia and the EU was worth EUR 23.5 billion in 2015.
The household consumption is Indonesia’s most important economic driver. Data from Indonesia’s Central Statistics Agency (BPS) reveal that household consumption has traditionally contributed to more than half of the country’s economic growth. In the third quarter of this year it stands at 55.3 percent. Agriculture, together with forestry and fishery, is another of Indonesia’s important business sectors as it posted the highest quarterly growth after transportation and warehousing.