Indonesia’s economy has seen strong growth in recent years, earning the title of being the 16th largest economy in the world. While it has suffered a downturn in its GDP in 2020 due to the pandemic, it is predicted that the country’s economy will gradually bounce back in 2021.
Some of the industries that have helped maintain the steady growth of Indonesia’s economy include; the fintech industry, the petrochemical industry, the infrastructure industry, the agriculture industry and the healthcare sector.
Indonesia’s fintech sector is one of the most dynamic and competitive industries in the ASEAN region. Its growth can be attributed to Indonesia’s proactive government and the policies that have been introduced like peer-to-peer (P2P) lending, digital payments and open banking.
The government’s hope is for these new rules to encourage innovation in the country and increase financial inclusion. As a result of these favourable policies, the fintech industry in Indonesia has encouraged not only local investors but international attention as well.
Despite the surge of COVID-19, the fintech startups, in particular, have continued to receive international funding of over US $100 million since late 2019. The sources of this financial funding include Kredivo’s US $110 million and LinkAja’s US $200 million.
Fig 1. Coding (Source: Pexels)
Indonesia’s fintech industry will continue to thrive. With over 300 fintech companies and the emergence of more than 4 unicorns in the country, it is evident that Indonesia is a fertile ecosystem for financial technology to be explored and developed.
An internship in the fintech industry in Indonesia will open you to a variety of opportunities. The fintech industry is growing in demand and one of the best places to start this exciting career is in Indonesia. And with AIP, you will be able to expand your professional network as well as enhance your personal experiences.
The petrochemical industry is an integral part of the Indonesian economy. A strong demand for petrochemicals within the country, followed by increased investments and the development of new technologies through joint ventures are factors that guarantee the growth of this industry in Indonesia.
But with the onset of the pandemic, the industry saw a decline in the demand for petrochemicals in 2020. To ensure that this industry continues to flourish, market research and innovation is key, even when faced with uncertainties.
Market research for the petrochemical industry is important when preparing for the future of the business. To ensure the business is successful, the oil and gas industry intends to increase integration along the petrochemical value chain.
And now that a majority of operators in Indonesia have shifted to digital platforms, it is vital for the manual platforms in Indonesia to adopt these new methods of manufacturing to ensure the success of the industry.
Fig 2. Person in the lab (Source: Pexels)
Rudy Radjab, the Director of PT Kreasindo Resources, said, “In facing the current economic uncertainty and the slow progress of running projects it is better to develop human resources to their maximum potential as an asset for [the] future to be ready for [these] digital platforms.” (*)
Some of the national projects that have been introduced to boost domestic production of petrochemicals include the Refinery Development Master Plan and Pertamina’s USD 48B investment. The goal is to quadruple the country’s production capacity, surpass the domestic demand and allow new export revenue. If you plan on pursuing a career in the petrochemical industry, Indonesia is a great place to start.
The government’s vision for the sector is farsighted and adapted for the younger generation to enhance production with digital platforms. Start an internship in petrochemical with AIP and gain experience that will benefit both you professionally and personally.
The infrastructure industry in Indonesia offers a range of opportunities that enhances the country’s economy. It has recorded an annual growth rate of 6.8% from 2007-2019. The imposed restrictions by the government on projects and business curtailed company earnings and incomes. And the dip in fiscal performance was reflected in the GDP rating in 2020.
However, the industry is expected to stabilize and recover in 2021 with an expected growth rate of 7.1%, assuming operations are back to normal. Residential construction in the country accounts for 25% of the industry and the government aims to increase the housing sector’s contribution to 4% of GDP by 2024. (**)
Fig 3. Swatches for a new building (Source: Pexels)
For this goal to be accomplished, the country’s recovery will be driven by increased investments in infrastructure with a planned expenditure of US $25.4 bn in the 2021 budget. The government has also allocated US$2.6bn for the state-owned enterprises to boost their role in helping the recovery of the economy.
Explore your passion for architecture by completing an architectural internship in Indonesia and expand your knowledge on the latest trends and technologies in construction.
One of the sectors that stayed resilient during the pandemic is the agricultural sector. It has maintained steady growth in the market and contributed immensely to the economy. The government maintained its focus on this sector to ensure national food security was not disrupted.
One of the programs that were introduced to support the agriculture sector is the BNI Smart farming program. Through this program, BNI works and collaborates with different government sectors including the Ministry of Agriculture and a handful of agricultural startups.
Fig 4. Indonesia's countryside (Source: Pexels)
The aim of these collaborations is to initiate the Move Towards Agriculture 4.0 and help farmers improve cultivation results. The Smart farming program provides assistance to farmers in different ways. Some of these methods include soils and weather sensors to control land conditions in real-time.
The modern and advanced methods of farming can help facilitate the rich growth of crops in the archipelago. In the future, the country aims to develop a digital agricultural ecosystem that is able to reach farmers in all corners of the archipelago.
If you want to hop on the train of smart farming, Indonesia is a great place to start. An internship in agriculture with AIP will grant you a number of opportunities and you will learn a lot about the methods and policies of how digital farming and low-emission technologies work.
Just like with agriculture, digital healthcare in Indonesia is also growing. The pandemic accelerated this growth in the country with the rise in demand for healthcare services. The digital health ecosystem is now creating a plethora of business opportunities, partnerships and collaborations.
Fig 5. Medical tools (Source: Pexels)
With an already digitally engaged population, the shift to digital healthcare has been relatively smooth and is setting a strong foundation in the country. With digital healthcare, people receive health advice with increased precision and grants the consumer more control. And with the current condition of the world, digital healthcare has become the most practical and innovative solution to increasing and improving Indonesia’s healthcare system.
Start a medical internship in Indonesia and experience first-hand the shifts in the healthcare system of the country. With the current situation, the future of healthcare is digital and Indonesia is one of the countries that is getting a head start on this.
Start your internship in Indonesia with AIP! Explore your professional passion in one of the industries mentioned above and at the same time, indulge and explore the beautiful country of Indonesia. Visit our website for more information on our programs!
(*) Asian Downstream Insights. Indonesia’s petrochemical projects to boost the national economy, international standing. 8 Feb 2021. https://asiandownstreaminsights.com/petrochemical-power-how-indonesias-petchem-projects-are-boosting-their-national-economy-and-international-standing/
(**) GlobalData - Press Release - 27 Jan 2021 - Infrastructural investments to drive Indonesian construction output in 2021. https://www.globaldata.com/infrastructural-investments-drive-indonesian-construction-output-2021-says-globaldata/