Oil and Natural Gas
Indonesia is rich in oil and gas resources. The government has announced oil reserves of 9.7 billion barrels, equivalent to 1.31 billion tons, of which verified reserves amount to 4.74 billion barrels, or 640 million tons. The country’s natural gas reserves stand at 35.3 trillion standard cubic feet (TCF), equivalent to 1 trillion cubic meters. Pertamina, the state-owned oil company, is the largest oil enterprise in Indonesia.
According to the Fortune Global 500 ranking released in 2024, Pertamina ranks 165th, down 24 places from the previous year. It reported a revenue of $75.788 billion and a net profit of $444.1 million, both of which increased compared to the previous year.
Agriculture, Forestry, and Fisheries
Indonesia is a major agricultural country with approximately 80 million hectares of arable land. The main cash crops include palm oil, rubber, coffee, and cocoa.
The country’s forest coverage rate is 54.25%, amounting to 100 million hectares, and it is home to the world’s third-largest tropical forest. Sinar Mas is the largest forestry and paper enterprise group in Indonesia.
Indonesia is also rich in fishery resources, with over 7,000 species of marine fish. The government estimates that the potential catch could exceed 8 million tons per year.
Mining Industry
Indonesia is abundant in mineral resources, which are widely distributed. The main minerals include aluminum, nickel, iron, copper, tin, gold, silver, and coal. The major state-owned mining companies are Antam and PT Timah Tbk. The mining industry has long been a traditional hot spot for foreign investment in Indonesia.
Indonesia’s mineral resources are extremely rich, making it an important source of supply for the international market of coal and metal minerals such as nickel, iron, tin, and gold. This has attracted a large amount of foreign investment in the upstream mining sector.
In particular, in May 2012, the Indonesian government imposed a 20% export tax on 65 types of mineral products and required foreign investors to establish smelting and processing plants in Indonesia. These measures have stimulated foreign investment in the downstream mining industry. Currently, the mining industry has become the largest sector for foreign investment in Indonesia.
Manufacturing Industry
Indonesia’s level of industrialization is relatively low. The manufacturing sector comprises over 30 different types of departments, including textiles, electronics, wood processing, steel, machinery, automobiles, pulp, paper, chemicals, rubber processing, leather, footwear, food, and beverages. Krakatau Steel, the state-owned steel company, is the largest steel enterprise in Indonesia.
Tourism
Indonesia is extremely rich in tourism resources, boasting many beautiful tropical natural landscapes, diverse ethnic cultures, and historical relics. It has unparalleled advantages in developing the tourism industry.
Major tourist attractions include Bali, the Borobudur Temple in Yogyakarta, Prambanan Temple, Sultan’s Palace, Jakarta’s Miniature Park and National Monument, the Bogor Botanical Gardens in West Java, Mount Merapi, Mount Bromo in East Java, Lake Toba in North Sumatra, Komodo Island in East Nusa Tenggara, Manado in North Sulawesi, and the Raja Ampat Islands in West Papua.
In 2023, a total of 11.68 million foreign tourists visited Indonesia, marking a year-on-year increase of 98.3%.
-End-
In the next issue, we will introduce the “Economic Overview of Indonesia in 2025 (Part III): Infrastructure.”
We hope this article is helpful to you. If you are interested in exploring business opportunities in Indonesia, feel free to leave a comment or contact us.
Wanxinda Industrial Park in Batang National Economic Zone, Indonesia, is located within the Batang Industrial Special Economic Zone (KEK Industropolis Batang) in Central Java, Indonesia. It offers flexible factory and land rental and sales services, and helps enterprises quickly establish a presence in Indonesia through a “one-stop” service.
