Slovak companies overlook market with 280 million customers despite wide export opportunities
Indonesia is one of the largest and most dynamic economies in Southeast Asia and one of the least exploited export markets for Slovak companies. In 2024, bilateral trade between Slovakia and Indonesia amounted to only around 180 million euros. This is why the next Eximbank Export Club, which will take place on 28 May 2026 in Bratislava, will focus on this country and the wider Southeast Asian region.
Business potential
Indonesia represents a natural entry point into the wider region, with growth prospects based on sectors in which Slovakia has technological know-how: defence, energy, water and environmental solutions, including waste management. At the same time, there is room for software solutions, where Eximbanka already has concrete business cases in the pipeline. Reciprocal trade remains underutilised given the size and dynamism of the Indonesian economy. In doing so, the room for growth is supported by upcoming system changes. The EU-Indonesia CEPA can facilitate trade and investment relations and reduce some barriers to entry. Indonesia is also among the priority countries in Slovakia’s strategic engagement with the Indo-Pacific region. The experience from the business mission in Jakarta and Bali, carried out in cooperation with the Ministry of Diplomacy, confirms the interest in Slovak solutions. In practice, it turns out that success on the market is conditioned by involvement in more complex projects and the ability to use local support, including the embassy in Jakarta.
Risks and barriers
When entering the Indonesian market, companies have to prepare not only for customs duties and import licenses, but also for local technical standards, product registrations and, in some sectors, halal certification. This is a combination of several administrative steps that add to the demands on both time and local expertise. The unpredictability of processes remains a challenge. Certification, permitting or customs procedures can be prolonged, increasing both costs and risks. “Most investors see Indonesia as a market with high potential and higher political risk, rather than one to avoid altogether,” says Tatiana Gécová of Eximbank’s risk management department. Risks include fiscal policy uncertainty, regulatory changes, lower market transparency, opaque ownership structures or currency volatility, as well as dependence on commodities such as coal, nickel, palm oil and metals. Positive factors, by contrast, include a strong domestic consumer market, manageable public debt relative to competitors, resilient GDP growth, improving infrastructure, and Indonesia’s strategic role in the nickel and electric vehicle supply chains.
Loans and security
Eximbank can help exporters with a combination of instruments: receivables and political risk insurance, pre-export contract financing, and a buyer’s credit to the Indonesian partner or its bank. It seeks to ensure that the supplier gets paid and the buyer can repay over time. “Indonesia is an attractive export market for Slovakia and the EU, mainly due to its large and fast-growing population,” stresses Milan Horváth from Eximbank’s Non-Marketable Risk Insurance Department. At the same time, the country is undergoing industrialisation, which opens up opportunities for the export of machinery, transport equipment or energy solutions. Eximbanka is involved in the preparation of a large-scale export financing project in Indonesia. This is an export buyer credit insurance product, whereby it plays the role of reinsurer and covers the supply of the Slovak share.
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Source: TREND.sk