Indonesia central to ASEAN - High potential for international trade

The three day World Economic Forum (WEF) on East Asia 2014 commenced in Manila yesterday, receiving over 600 leaders, entrepreneurs and thinkers together.

Issues will be discussed, including the optimal way to compose the 10 member Association of South East Asian Nations for the ASEAN Economic Community planned for next year, which is to allow freer flows of capital and lower trade barriers.

Collectively, the ASEAN member states structure one of the largest economies of Asia, with gross domestic product (GDP) at approximately $2trillion and a population of over 600million people.

Indonesia, the largest economy of South East Asia, may benefit from freer trade under the AEC. Its automotive sector rival’s Thailand’s, as it assembles and ships vehicles locally and internationally. Japanese vehicle producers have recently been raising their investments in Indonesia, acknowledging the demand for cars, motorcycles and trucks remains strong. The nation’s youth population, alongside low labour costs makes it an appealing investment location for overseas companies including the Foxconn Technology Group, who produce the iPhones and iPads for Apple.

'Indonesia's market has the highest potential of the Asia Pacific'

Sony Mobile Communications has claimed Indonesia’s market has the highest potential of the Asia Pacific, as the country’s middle class continues to rise. Indonesia was said to be a significant for Sony, owing to its growing population. As the middle class and population increases, so does the demand for smart phones. Sony aims to take this opportunity to grow its sales within Indonesia, using heavy investment only within Indonesia throughout the Asia Pacific.

A GFK study ranked Sony as second in the mobile phone market by value. Sony had received orders for over 1,200 Z2 phones since it was launched in early March this year.