As the leading economy in South East Asia and a central business hub for many international companies, Indonesia provides the perfect location for entry into the South East Asian market helped by market stability and geographical location.
These are the factors driving the hunger for international interiors solutions:
The middle class population with its increased spending power has been steadily increasing in South East Asia. Indonesia alone has a middle class population of 75 million, larger than the total population of Great Britain, with a combined wealth of $350bn. These populations are also increasingly youthful, with 60% below the age of 30.
These shifting demographics are bringing in a fresh demand for international style and design.
Rapid urbanization is fueling a rise in incomes and the ability for consumers to spend increasing amounts on discretionary items. Expanding cities are requiring extensive residential and commercial construction projects which require interior and fit out products. Increasingly, these counties are looking outside the region for these solutions to meet the tastes and preferences of the new generation.
This number is increasing at more than 1% a year, representing a huge and rapidly expanding market.
The South East Asia region is one of the most popular tourist destinations in the world, with hundreds of millions of visitors every year. The tourism trade is worth around USD310bn annually in South East Asia and contributes around 12% of GDP.
This increasing tourism is driving the demand for more hotels to cater for all tastes and budgets. These hotels are actively looking for interiors and fit-out solutions from international manufacturers and distributors.
The ASEAN economic block has provided secure and fluid trading within the major economic powers within the region. It has helped to keep respective currencies strong and trade moving freely to promote economic growth in the region. ASEAN has helped regulatory reform, trade facilitation and financial development for domestic and foreign firms. ASEAN countries are also strategically places to do business with China, Japan and Australia.