Thai businesses tap Indonesian market as domestic opportunities shrink
Indonesia’s large domestic market could justify to set up a local production, while import restrictions and quotas had further prompted some Thai businesses to consider investing locally rather than exporting directly from Thailand.
Thai enterprises are expanding their reach into Indonesia's market, driven by the need for larger consumer bases and economies of scale in Southeast Asia. As Thailand's domestic market becomes increasingly saturated, companies are seeking opportunities beyond their borders. Kobsak Pootrakool, a senior executive at Bangkok Bank, noted that Thailand's market is too small for scale, with only 60 million people to cater to.
Manufacturers are capitalizing on the growing trend of assembling products in one country and exporting them to neighboring markets. The bank's local presence in Indonesia since 1968 and its acquisition of Permata Bank in 2020 has enabled it to facilitate connections between Thai businesses and their Indonesian counterparts. During a recent three-day business-matching trip to Jakarta, the delegation explored various sectors, including sugar, energy drinks, plastic packaging, poultry, agriculture, machinery, and convenience stores.
Indonesia's vast domestic market provides a compelling incentive for Thai firms to establish local production facilities. Import restrictions and quotas have also prompted some businesses to consider investing locally instead of exporting directly from Thailand. Bangkok Bank's network of 37 Thai executives and investors in Jakarta is actively linking Thai companies with Indonesian partners and distribution channels, paving the way for new economic opportunities in the region.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
