Bangkok Bank targets investment options in Indonesia
Indonesia is one of the fastest-growing economies in the world, driven by government strategies, a large and youthful population of 284 million, and abundant natural resources. With these strong fundamentals, Indonesia's economy is expected to experience sustained growth over the next 20 years, said BBL president Chartsiri Sophonpanich during his visit to the bank's Indonesian branch, Permata Bank, last week.
Under the Golden Indonesia Vision 2045, the country's GDP is projected to become the fourth-largest in the world. Indonesia has the 16th-largest economy with a GDP of US$1.54 trillion, and is the No.2 investment destination in Southeast Asia, attracting total foreign direct investment inflows of $105 billion.
According to Permata Bank, in which BBL holds an 89.12% stake, Indonesia's GDP is projected to grow by 4.7% this year, down slightly from 5% in 2024. However, government agencies expect growth to rebound to 6.5% in 2026. Over the past decade, Indonesia's average annual GDP growth has been around 5%.
He said Indonesia's recent entry into the BRICS group enhances its appeal as an investment destination, especially for businesses seeking to mitigate geopolitical risks amid global economic uncertainties.
BRICS comprises 11 countries: Brazil, Russia, India, China, South Africa, Saudi Arabia, Egypt, United Arab Emirates, Ethiopia, Indonesia and Iran.
"With Indonesia's positive growth outlook over the next 20 years, the country presents significant opportunities for Thai businesses to expand their operations and investments. BBL is well-positioned to support local enterprises in their outbound expansion, leveraging the bank's 57 years of experience in the regional market," said Mr Chartsiri.
The bank already supports major Thai corporations investing in Indonesia in energy, trading, retail and manufacturing.
BBL plans to support more Thai small and medium-sized enterprises eager to expand into the Indonesian market.
As Thailand's largest lender and the seventh-largest bank in Southeast Asia by total assets, BBL is equipped to support both outbound and inbound investments across the region, he said.
In the first half of 2024, Thai investment in Indonesia reached $225 million. Between 2017 and 2022, Thai investors contributed $1.52 billion across more than 1,400 projects in Indonesia.
Indonesia remains a strategic trading partner for Thailand, with Thai exports valued at $10.3 billion in 2024.
Thailand was Indonesia's fourth-largest export market, with exports to Thailand totalling $7.22 billion.
Despite sluggish Thai economic growth, Mr Chartsiri said international banking will remain a driver of the bank's expansion, helping to strengthen its position as a leading regional bank.
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