Factors

Location
General
factors
Export/import
Consumption
Diplomacy
Norms
Habits
Trend
Social factors

Trend
E-commerce
Values
Attitudes relating to
foreign and
Attitudes domestic
relating to
products and services
foreign and domestic
products and services
Aesthetics
Business customs
Population
Demographics
Economic

Income
GDP per cap
Inflation
Infrastructure
Legislation
Political

Regulation
Trading blocs
Rules of origins
Legal

Tariffs
IPP
Limited transporting options: plane (3h), ship (4 day) Explanation
Far from
Import Vietnam
most from Vietnam, value rose fast USD 76.6 million in 2017 to USD 267.3 million in 2022
→
2021: top cost
time & 2; 2022: top 4
→
Toppotential
5 global for growth
consumption → large demand &Asiademand
Indonesia was the first country in Southeast with which Việt Nam established official diplomatic relations in 1955
In the future, Việt Nam and Indonesia will continue
Style of footwear is as varied as it is in any other part to of
strengthen
the worldtheir long-standing friendship
Presents
Various shoes outhouse - no shoes inhouse → same as Vietnam → ease of doing business
opportunities to foster trade and investment cooperation
Rainy: flip flops
Even have Sandal& sandals due to
Jepit = tông làothe hot climate
Dry: thicker shoes, such as boots and sneakers
Sneakers are the most favored type of shoes. At present, the trend of sneakers in Indonesia continues to grow.
Demand for sneakers is not high compared to other types of shoes.
9th largest market for eCommerce: CAGR 2023-2027 of 8.1%, projected market volume of US$92,422.5 million by 2027, fashi
eCommerce revenue
Brand name
China, is not
Malaysia required. Price
< Indonesia andKong
= Hong comfort matter. USA,
< Europe, → little brand loyalty
Japan
Indonesians should 'love local goods, hate foreign products': President Jokowi
Country
Strong of origin (COO)
preference is very important, not proud of their own Indonesianness → trust foreign brand
Few patterns; plainfor domestic
color brand (aesthetic
+ accessories shoelace)
Barely see green (green table = court in Muslim)
You be on time but Indonesian might be late. Business + yellow (death/disease)
card required.
Ananas:
Avoid colorful,
using the many
left handdesigns
(dirty → adaptation,
hand); no gift awareness
exchange; not showing your feet's sole
Population Rank: 4th
Similarity: hierarchy, formal,
Growth Rate: 0.77% (128th) handshake, respectful, relationship
More than
Capital: 300 distinct
Jakarta, ethnic
the most and linguistic
populous groups,
in Southeast theand
Asia largest and most
the 14th most dominant
populatedincity
terms of politics are the Javanese at over
on earth
Diverse population
Gross national income (GNI) per capita reached USD 4,580 in 2022, increased 9.8% -> regained upper-middle-income country
Income distribution: gini coefficient in Indonesia is forecast to amount to 0.38 in 2023. -> highest record for the last five years
Indo: $5100
interest rates by a total of 225 basis points. -> Inflaton management, Price interventions
-> Short
Indo: term: protecting
connectivity issues consumers from price shocks
still plague businesses in the country. Government announced a raft of infrastructure projects worth U
except
new for industries
airports specificallyofstipulated
and the development by Indonesian
over 2,000km laws and
of new highways, regulations,
among others the total investment of foreign inves
IDR 10 billion.
Risk-Based Online Single Submission (OSS), an integrated online system that streamlines almost all business licensing and p
environmental
ASEAN, AEC, requirements
RCEP, APEC, IPEF, WTO.
When the
double taxorigin of goods
avoidance is determined
agreements (DTAA) according to the RCEP rules , the 15 member states under RCEP are treated as one e
with Vietnam
the goods to obtain the origin qualification of the contracting
The RCEP sets to eliminate 92 percent of tariffs on goods countries,
tradedand finallyitsenjoy
among more preferential tax rates and trade tr
15 members.
inputs from the most efficient and cost effective source within the region
tariff
lack ofelimination
adequate and amongst AMS
effective was already
IP protection and completed
enforcement,bycounterfeiting
2018 under andthe piracy
ASEAN areTrade in Goods Agreement (ATIG
pervasive
Indonesia’s patent law continues to raise serious concerns, including patentability criteria and compulsory licensing
-> high levels of physical and online piracy
 Threats/ Score
Source
Opportunities (-5 to 5)
T -2 https://www.fluentcargo.com/routes/vietnam/indonesia
O 4 Figure 2https://economictimes.indiatimes.com/news/economy/policy/extend-implementation-o
O 5 Figure 1
O 4 https://vietnamnews.vn/opinion/1550323/viet-nam-and-indonesia-share-strong-political-ties-an
O 3 https://www.quora.com/What-types-of-footwear-do-Indonesians-wear-outside-of-the-house-on
O 3 https://www.quora.com/What-types-of-footwear-do-Indonesians-wear-outside-of-the-house-on
O 5 Figure 4
T -4 Figure 6
O 5 Figure 11https://ecommercedb.com/markets/id/allhttps://www.trade.gov/market-intelligence/in
O 4 Figure 7 + 8
O 4 https://www.academia.edu/4095103/The_Attitude_of_Indonesian_Consumers_towards_Dome
T -4 Figure 9 + 10
T -1 Nguồn do t tự đi xem từng brand giàyhttps://ux.stackexchange.com/questions/118139/why-do
T -1 https://culturalatlas.sbs.com.au/indonesian-culture/indonesian-culture-business-culturehttps://
O 4 https://worldpopulationreview.com/countries/indonesia-population
Indonesia Population 2023 (Live). worldpopulationreview.com. (2023). https://
O 3 https://minorityrights.org/country/indonesia/
Indonesia - World Directory of Minorities & Indigenous Peoples. Minority Righ
O 3 https://www.mla.com.au/globalassets/mla-corporate/prices--markets/documents/os-markets/e
Ramadhanti, I. (2023, August 18). What Does Indonesia’s Upper Middl
https://www.imf.org/external/datamapper/NGDPDPC@WEO/THA?zoom=THA&highlight=THA
T -1 Ilman, A., & Hapsari , I. (2023, October 17). Bucking the global trend: Insigh
https://blogs.worldbank.org/developmenttalk/bucking-global-trend-insights-inflation-indonesia
https://business-indonesia.org/transporthttps://www.aseanbriefing.com/news/indonesia-ratifies
T -4 https://trungtamwto.vn/file/21465/rcep%E7%94%B5%E5%AD%90%E6%8C%87%E5%8D%9
O 2 https://www.state.gov/reports/2023-investment-climate-statements/indonesia/
O 5 U.S. Department of State. (2023, July 26). 2023 Investment Climate Statemen
https://www.state.gov/reports/2023-investment-climate-statements/indonesia/https://www.ase
O 4 https://www.allbrightlaw.com/EN/10475/621866ffa1744ca3.aspxhttps://www2.deloitte.com/con
O 5 https://www2.deloitte.com/content/dam/Deloitte/sg/Documents/tax/global-trade-advisory-news
Teng, C. (2022, February 14). Vietnam: Assessing RCEP benefits and
T -3 https://www.state.gov/reports/2023-investment-climate-statements/indonesia/https://law.asia/t
A comparison of trademark law. Law.asia. (2023, June 7). https://law.a
cy/extend-implementation-of-quality-control-norms-by-12-months-for-footwear-industry-not-ready-yet/articleshow/99884012.cms

hare-strong-political-ties-and-deep-rooted-friendship-ambassador.htmlNgoc, N. (2016). BUSINESS COOPERATION BETWEEN INDONES

ear-outside-of-the-house-on-an-everyday-basis
ear-outside-of-the-house-on-an-everyday-basis#:~:text=In%20the%20summer%2C%20flip%20flops,such%20as%20boots%20and%20snea

e.gov/market-intelligence/indonesia-e-commerce-sectors

Consumers_towards_Domestic_and_Foreign_Products_A_Comparative_Study_to_a_Malaysian_Studyhttps://www.channelnewsasia.com/

m/questions/118139/why-do-indonesians-forbid-greenhttps://www.bahasakita.com/reading/color-and-culture-in-indonesia/
ure-business-culturehttps://asialinkbusiness.com.au/indonesia/conducting-business-in-indonesia/business-etiquette-in-indonesia?doNothing
review.com. (2023). https://worldpopulationreview.com/countries/indonesia-population Indonesia’s main areas of production are textiles and
ous Peoples. Minority Rights Group. (2020, November 17). https://minorityrights.org/country/indonesia/
Indonesia’s Upper Middle-Income Status Mean? InCorp Indonesia. https://www.cekindo.com/blog/upper-middle-income-status
zoom=THA&highlight=THA
ng the global trend: Insights on inflation in Indonesia. World Bank Blogs. https://blogs.worldbank.org/developmenttalk/bucking-globa
com/news/indonesia-ratifies-rcep-trade-agreement/
%E6%8C%87%E5%8D%97chapter-7-.pdf

vestment Climate Statements: Indonesia. U.S. Department of State. https://www.state.gov/reports/2023-investment-climate-statement

ps://www2.deloitte.com/content/dam/Deloitte/sg/Documents/tax/global-trade-advisory-newsflash-rcep-country-updates.pdf
sing RCEP benefits and linkages. Genericarticle. https://www.dbs.com.sg/research-vi/aics/templatedata/article/generic/data/en
23, June 7). https://law.asia/trademark-law-comparison/
w/99884012.cms

TION BETWEEN INDONESIA AND VIETNAM: Business Relations; Economics; Trade, Indonesia; Vietnam. Journal Sampurasun: Interdisc

s%20boots%20and%20sneakers.

www.channelnewsasia.com/asia/indonesia-love-local-hate-foreign-products-jokowi-growth-257926https://pdf.sciencedirectassets.com/2778

uette-in-indonesia?doNothing=1Cole, G. J. (1997). Passport indonesia: Your pocket guide to indonesian business, customs & etiquette. Wo
of production are textiles and garments, electronics, automotive, footwear, food and beverages, and chemicals.

per-middle-income-status#:~:text=Indonesia’s%20gross%20national%20income%20(GNI,earns%20divided%20by%20its%20p

opmenttalk/bucking-global-trend-insights-inflation-indonesia

estment-climate-statements/indonesia/ Medina, A. (2023, May 8). An overview of Indonesia’s double tax avoidance agreements. ASEAN

ata/article/generic/data/en/GR/022022/220214_insights_vietnam.xml
urnal Sampurasun: Interdisciplinary Studies for Cultural Heritage, 2(1), 73-73.

iencedirectassets.com/277811/1-s2.0-S1877042813X0014X/1-s2.0-S187704281301519X/main.pdf?X-Amz-Security-Token=IQoJb3JpZ2lu

ss, customs & etiquette. World Trade Press.

divided%20by%20its%20population

oidance agreements. ASEAN Briefing. https://www.aseanbriefing.com/news/an-overview-of-indonesias-double-tax-avoidance-agreeme

curity-Token=IQoJb3JpZ2luX2VjEKf%2F%2F%2F%2F%2F%2F%2F%2F%2F%2FwEaCXVzLWVhc3QtMSJGMEQCIFZxYsq1FvrCyT6lBrm

ble-tax-avoidance-agreements/
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UDsdeT9j5lLGaqkfVPxaJZ0YXBcGSOQUXEnpnCFPzfKUIgSNGobAwRXOYSptAsLXWGmX6ohEFhLr1kL%2BufhZ9UaASwy5U91Av0XjSi
ufhZ9UaASwy5U91Av0XjSiDp1N%2FNnOUT6EwPFoYPoSeI6ugcmcItla%2FLcnnAiblOnzzsS72hv35M7am%2Bj4OMwnzz0lin5TSyI4Pmlj
2Bj4OMwnzz0lin5TSyI4Pmljb5NsaA8zWzO5C0mLKDpskLs3eR7k0pZY8a5u6muJSExP6xM84LUpa59%2Bwcfx59mUwF%2BLw3TBIeKtkq
x59mUwF%2BLw3TBIeKtkqlRnTFPt9FqYSccHo06uzbZNP71iONYtYvq%2FTLh0MRv18pPjMIVbVL1iJy7%2F5q132T01J7V%2FVgfYylDqz
5q132T01J7V%2FVgfYylDqzsqyo7je%2Be4zO47oYzQvpNmSwXeVEwmRwbzK2dbzTVf0Fl%2FfZEhvKRU3JM5HJGoNeVUPE%2Fz%2FM
M5HJGoNeVUPE%2Fz%2FMx3rhEPkr%2BanhV%2BWqRbAptuV9iVPfbXJEod4GUdKBnlueES6BIOLhsYhZOLeyM5GMIhjWJHkXgHV1Qy
LeyM5GMIhjWJHkXgHV1QyCvdR77mTwooJFUTXOTWMjiX1bzuFZOgdDbS5Ma%2Bztv%2F2LBwGr7EJKbzCyjjiVU36MysvWLizLGgZcrLv
CyjjiVU36MysvWLizLGgZcrLvWAH3ecjwmsZ5klcRZOk4h%2BAtToFLs7IoHsotHrhUeVpbS%2BZWJquKQ1hY9g4SJZyksQ1PLv5w7WLK2j9
g4SJZyksQ1PLv5w7WLK2j9txH4VRSvD4bUtG8wkaUw0OntqgY6sgEENVxTLI1VtC2jkLdtZGsLB5%2FhZ3Ds36RKBuBTcwqHfWCL9gJXA
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LO9fzOm90LGl2Dd%2FdoPY%2Fs21vJW8gWoGV%2FWggDvdDmB5%2B7nVm49&X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-D
4-HMAC-SHA256&X-Amz-Date=20231120T161215Z&X-Amz-SignedHeaders=host&X-Amz-Expires=300&X-Amz-Credential=ASIAQ3PHCV
mz-Credential=ASIAQ3PHCVTYXJVLOW7S%2F20231120%2Fus-east-1%2Fs3%2Faws4_request&X-Amz-Signature=222d910b1caa6eaf5
nature=222d910b1caa6eaf563032c79c872e30c0f5ba065e7d3857f5a56749ef669e29&hash=9a4c18ca5139a6062923fa0ac9070fdd19151c
062923fa0ac9070fdd19151c36fdcbae9c45e8325ce93aaab1&host=68042c943591013ac2b2430a89b270f6af2c76d8dfd086a07176afe7c76
c76d8dfd086a07176afe7c76c2c61&pii=S187704281301519X&tid=spdf-10200df8-088c-44b7-ad73-6c8d727890d2&sid=a163986a7720f543
0d2&sid=a163986a7720f543278a8ba8c4fb5152d12fgxrqa&type=client&tsoh=d3d3LnNjaWVuY2VkaXJlY3QuY29t&ua=1001585d5855055e
29t&ua=1001585d5855055e50&rr=8291f930bf398b81&cc=vnhttps://www.quora.com/Why-do-people-in-Indonesia-prefer-to-buy-foreign-pro
sia-prefer-to-buy-foreign-products-than-products-in-their-country-Even-for-the-quality-of-the-same-they-still-choose-foreign-products-Is-it-th
ose-foreign-products-Is-it-the-mindset-of-Indonesians-that-Indonesia-is-not
https://www.statista.com/statistics/227278/leading-10-global-footwear-consumers-by-country/
Figure 1
Smith, P. (2023, September 8). Leading 10 global footwear consumers in 2022, by country. Statista. Retrieved from

https://www.statista.com/statistics/1230460/indonesia-footwear-import-value-by-country/
FIgure 2
Nurhayati-Wolff, H. (2023, May 2). Value of footwear imported to Indonesia in 2021, by country of origin. Statista. R

https://www.statista.com/statistics/1230435/indonesia-import-value-of-footwear/
Figure 3
Nurhayati-Wolff, H. (2023, May 2). Value of footwear imported to Indonesia from 2012 to 2021. Statista. Retrieved f
http://report.licorice.pink/blog/indonesia/prioritizing-quality-sneakers-become-indonesians-most-popular-shoe-choi
Figure 4

http://report.licorice.pink/blog/indonesia/prioritizing-quality-sneakers-become-indonesians-most-popular-shoe-choi
Figure 5
https://www.statista.com/outlook/cmo/footwear/indonesia#revenue
Figure 6

Deloitte Consumer Insights: Adapting to the new normal in Indonesia. (2021, February). Deloitte. Retrieved from
Figure 7
Purchasing drivers across product categories
https://www2.deloitte.com/content/dam/Deloitte/sg/Documents/consumer-business/sea-cb-deloitte-consumer-insig
Price Image Comfort Design Variety Taste
1 41.00% 9.00% 19.00% 10.00% 2.00% 12.00%
2 21.00% 21.00% 20.00% 10.00% 7.00% 13.00%
3 11.00% 17.00% 26.00% 15.00% 10.00% 11.00%
4 7.00% 12.00% 14.00% 26.00% 16.00% 13.00%
5 7.00% 14.00% 8.00% 13.00% 31.00% 11.00%
6 4.00% 13.00% 7.00% 11.00% 17.00% 28.00%
7 4.00% 8.00% 4.00% 9.00% 11.00% 9.00%
8 5.00% 6.00% 2.00% 6.00% 6.00% 3.00%
100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Deloitte Consumer Insights: Adapting to the new normal in Indonesia. (2021, February). Deloitte. Retrieved from
Figure 8
https://www.ipsos.com/sites/default/files/ct/publication/documents/2021-11/gts-2021-launch-report.pdf
Figure 9

https://www.ipsos.com/sites/default/files/ct/publication/documents/2021-11/gts-2021-launch-report.pdf
Figure 10
Ipsos. (2021, November). Ipsos Global Trends 2021 | Aftershocks and continuity. Retrieved from https://www.ipsos

Ipsos. (2021, November). Ipsos Global Trends 2021 | Aftershocks and continuity. Retrieved from https://www.ipsos
Figure 11
y. Statista. Retrieved from

ountry of origin. Statista. Retrieved from

2021. Statista. Retrieved from

ns-most-popular-shoe-choice/#:~:text=Sneakers%20are%20the%20type%20of,have%20even%20begun%20to%20emerge.

ns-most-popular-shoe-choice/#:~:text=Sneakers%20are%20the%20type%20of,have%20even%20begun%20to%20emerge.
Deloitte. Retrieved from

cb-deloitte-consumer-insights-id-2021-update.pdf
Country of origEnvironmental friendliness
4.00% 3.00% Purchasing drivers of lifestyle
3.00% 4.00%
products 1
2
4.00% 6.00%
5.00% 7.00% Price 3
7.00% 9.00% 4
Comfort 5
10.00% 11.00%
6
31.00% 24.00% Variety
7
36.00% 36.00% Country 8
100.00% 100.00% of origin

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1

itte. Retrieved from

aunch-report.pdf

aunch-report.pdf
ed from https://www.ipsos.com/sites/default/files/ct/publication/documents/2021-11/gts-2021-launch-report.pdf

ed from https://www.ipsos.com/sites/default/files/ct/publication/documents/2021-11/gts-2021-launch-report.pdf
n%20to%20emerge.

n%20to%20emerge.
festyle
1
2
3
4
5
6
7
8

0.8 0.9 1
Population density

Income

Inflation