Courtesy of Emerging Market Insight, a look at Indonesia:

Indonesia is becoming one of the top choices for many multinationals looking to diversify their APAC portfolio as growth in China slows and India experiences high volatility

• Indonesia’s remarkable growth, which is drawing record numbers of global investors, is no longer limited to Jakarta and Java
• To take full advantage of Indonesia’s rapidly growing market, companies must strike a balance between market penetration and cost effectiveness
• Leading companies in Indonesia are accelerating their expansion outside of Jakarta and Java by focusing their efforts on:
• Prioritizing provinces and placing strategic bets
• Understanding the changing market landscape
• Leveraging relationships with local companies and distributors

B2C Companies Should Gauge Relative Opportunity by Tiering their Markets and by Monitoring Proxy Indicators to Add Depth to This Analysis*

• B2C companies should find a strong consumer base on the islands of Java and Sumatra, where the majority of Tier 1 and Tier 2 provinces are located
• Companies can conduct more in-depth studies by including proxy indicators and focusing on key cities during their tiering exercises; this should help them to expand strategically without spreading themselves thin
• Example: Monthly Expenditure, % of Households with Computers, CAGR of cellphone ownership