Direct Selling in Indonesia

National Economy

  • Indonesia is the largest economy in Southeast Asia and is one of the emerging market economies of the world.
  •  The country is also a member of G-20 major economies. It has a market economy in which the government plays a significant role through ownership of state-owned enterprises (the central government owns more than 160 enterprises).
  • Indonesia regained its investment grade rating from Fitch Rating in late 2011, and from Moody’s Rating in early 2012, after losing its investment grade rating in December 1997 at the onset of the Asian financial crisis which Indonesia spent more than Rp450 trillion ($50 billion) to bail out lenders from banks. Fitch raised Indonesia’s long-term and local currency debt rating to BBB- from BB+ with both ratings is stable. Fitch also predicted that economy will grow at least 6.0% on average per year through 2013, despite a less conducive global economic climate. Moody’s raised Indonesia’s foreign and local currency bond ratings to Baa3 from Ba1 with a stable outlook.
  • Full-year GDP growth for 2012 was 6.2 percent, down slightly from 6.5 percent in 2011. The World Bank projects 6.2 percent growth in 2013, a notch below the previous forecast of 6.3 percent. Growth in 2014 is projected to be 6.5 percent (unchanged from previous projections). The risks to these projections remain skewed to the downside, while moving growth significantly higher will be challenging.

Direct Selling Market

  • With a population of more than 237 million some 8.3 million of them are direct sellers.
  • Indonesia broke into the Direct Selling’s Billion Dollar Markets in 2011, with $1 billion in total sales and 10 percent total sales growth over 2010 statistics.

Sources