SBA Member, 14.07.2017
Jul 13, 2017 08:30 AMSina Steininger, Switzerland Global Enterprise . Today, Switzerland Global Enterprise (S-GE) is opening a new Swiss Business Hub (SBH) in Jakarta. The most important responsibility of this new hub is helping small and medium-sized companies (SMEs) from Switzerland and Liechtenstein to gain entry into the future market of Indonesia.
The new Swiss Business Hub (SBH) is located on the premises of the Swiss embassy in Jakarta. Wolfgang Schanzenbach, head of the new S-GE field office, and his team will provide advice and support to export-oriented Swiss and Liechtenstein SMEs looking to gain entry into the Indonesian market, including market evaluation support and providing business contacts.
Support for SMEs entering the market of the future
"As the largest country in Southeast Asia with a population of about 250 million, Indonesia already offers incredible potential to Swiss companies. The largest country in the ASEAN region is also a key future market for local exporters, and its global economic significance will only continue to grow," said Daniel Küng, CEO of S-GE, at the opening of the new SBH. "Finally, exporters with an additional foothold in this growth region can better offset the risks associated with currency and economic fluctuations. However, market entry in a far-off country like Indonesia requires a high level of preparation – and that's precisely where the new Swiss Business Hub in Jakarta can help companies from Switzerland and Liechtenstein."
With its new base in Indonesia, S-GE, in cooperation with the Federal Department of Foreign Affairs (FDFA), is now operating 22 Swiss Business Hubs worldwide.
Indonesia as a future economic power
As the 16th largest economy in the world, Indonesia generates roughly 40% of the GDP of the Association of Southeast Asian Nations (ASEAN). In 2016, it grew by 5%. The currency has stabilized, wages and consumption have gone up, and unemployment has fallen (World Bank). The most important growth factors for the years to come are the rapidly growing middle class and the resulting increased spending on infrastructure. By 2030, Indonesia could have the fourth-largest middle class in the world, after China, India and the United States (Brookings Institution).
Opportunities for medical technology, ICT, food processing, consumer goods and more
For Swiss companies, this means business opportunities in consumer goods sectors including capital goods industries, particularly for:
- medical technology such as surgical equipment, image diagnostics, IT solutions for hospitals; driven by the expansion of healthcare; Indonesia has virtually no local medical technology industry
- ICT, including for financial and security technology
- Food processing technology, such as automation, compressors, pneumatics and vacuum technology, storage technology, packing machines
- Consumer goods, such as FMCG and quality food products, high-quality cosmetics, luxury and lifestyle products
In 2016, Switzerland exported a total of more than CHF 455 million in goods to Indonesia. 42% of these exports were pharmaceutical and chemical products, 32% were machines and electronics and roughly 9% were precision instruments and watches. Negotiations are currently underway for a free trade agreement with EFTA.
Switzerland Global Enterprise (S-GE)
Switzerland Global Enterprise (S-GE) guides its clients on the path to new markets. On behalf of the Swiss Confederation (State Secretariat for Economic Affairs SECO) and the Swiss cantons, S-GE promotes exports and investments by helping its clients to realize new potential for their international businesses and thus to strengthen Switzerland as an economic hub. As the driver of a global network of experts and as a trusted and strong partner to clients, cantons and the Swiss government, S-GE is the first point of contact in Switzerland for all questions relating to internationalization.
S-GE is represented abroad by Swiss Business Hubs. These local teams are based at a Swiss Embassy or Swiss Consulate-General. The Swiss Business Hubs support Swiss companies expanding their activities in their respective countries and inform foreign companies about the advantages of Switzerland as a business location. All hubs have a first-rate network of contacts abroad on account of their official status.