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Sustainability: Indonesia

September 2021

Indonesia ranks 79th in the environmental sustainability index, as the country fails to protect endangered species and tropical forests and remains reliant on fossil fuels for energy generation. It also fails to tackle urban air pollution, while poor treatment of municipal waste means plastics ends up in the ocean. Indonesia has high levels of precipitation to irrigate agricultural yields yet lacks water treatment and sanitation facilities to ensure universal access to drinking water.

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The Country Briefings series examine market potential, economic and consumer trends impacting each country and how they are set to change.

Each Country Briefing covers one of these topics:

Economy, Finance and Trade: Understanding the structure, health and potential risks of an economy are important for decision-making within an existing operating environment as well as for expansion strategies. Real GDP growth, inflation and exchange rate fluctuations will directly impact consumer market potential. Import and export trade profiles help gauge how open an economy is to trade and investment, while analysis of government finances can be used to explore macroeconomic stability and susceptibility to economic shocks.

Income and Expenditure: Insights into income, wealth and expenditure of consumers are vital in helping businesses make strategic decisions with regards to which country (or even which region within a country) to enter, which consumer segment to target, which products or services to market, and at which price point. Other factors such as the size and expansion of the middle class and income inequality are also important in helping companies gauge the potential of a country market.

Households: Global shifts in gender, ageing, migration and housing are transforming the size, location,  general make-up as well as income and expenditure of households around the globe, with diverse implications for governments and companies. Households insights can help identify the decision-making processes and consumption tastes of different household groups and types within a country, and assess household appliance and digital readiness that is key for formulating market technology and internet strategies.

Business Dynamics: A stable and competitive business environment is vital to operate efficiently and attract inward investment. Businesses can assess these factors alongside challenges such as corruption, political instability and terrorism, also gain insight into business operating environment and make strategic investment decisions. Transport infrastructure, ICT readiness and labour force dynamics will also identify potential issues with a supply chain and the level of workforce skills.

Sustainability: Insights on key sectors directly related to the environmental sustainability of a country such as energy, water, pollution, environmental resilience, forest and biodiversity and food and agriculture help businesses to make strategic decisions in relation to environmental and sustainability trends, improve brand reputation and ensure long-term operations while ultimately growing the bottom line.

The briefings cover 103 countries and identify topics of crucial interest to planners, marketers and researchers.

Sustainability: Indonesia



Indonesia lags behind regional countries in renewable energy development
Although waste generation per capita is one of the lowest globally, the country suffers from severe pollution
Rapid deforestation poses serious risk to the country’s biodiversity
Water resources are abundant due to high precipitation levels
Indonesians suffer from high levels of food insecurity
Indonesia is one of the most disaster-prone countries in the world


Chart 1 Environmental Sustainability Index Indonesia Chart 2 Global Sustainability Ranking: Indonesia Chart 3 Energy Ranking: Indonesia Chart 4 Energy Availability Landscape in Indonesia Chart 5 Energy Efficiency, Security and Equity Landscape in Indonesia Chart 6 Pollution Ranking: Indonesia Chart 7 Air Pollution in Indonesia Chart 8 Waste and Water Pollution Landscape in Indonesia Chart 9 Forest and Biodiversity Ranking: Indonesia Chart 10 Forest and Biodiversity Landscape in Indonesia Chart 11 Water Ranking: Indonesia Chart 12 Water Availability, Equity and Security Landscape in Indonesia Chart 13 Water Security and Efficiency Landscape in Indonesia Chart 14 Food and Agriculture Ranking: Indonesia Chart 15 Food and Agriculture Landscape in Indonesia Chart 16 Role of Agriculture in the Economy of Indonesia Chart 17 Environmental Resilience Ranking: Indonesia Chart 18 Environmental Resilience Landscape in Indonesia

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