Indonesia’s business landscape must anticipate several challenges in 2023 due to multiple economic factors, including inflation, higher interest rates and disrupted global supply chains. Thus, business practitioners must comprehend the conditions to set up their business performance this year.
Heaptalk, Jakarta — Entering the new year of 2023, Indonesia‘s business practitioners encounter the post-pandemic era, marked by the revocation of the public activity restriction (PPKM) policy. Despite the threat of a global recession, Indonesia’s economic recovery trend is predicted to generate a stable enhancement.
As estimated by the Bank of Indonesia, the national economic development will amplify in the range of 4.5% – 5.3% in 2023 before growing to 4.7% – 5.5% by 2024, bolstered by private consumption, investment, and outstanding export performance. Although Indonesia‘s economy in 2023 is projected to perform a fantastic output, numerous entrepreneurs must be vigilant to face uncertain economic situations.
The CEO of SIRCLO Group, Brian Marshal, explained, “Indonesia’s business landscape must anticipate several challenges in 2023 due to multiple economic factors, including inflation, higher interest rates and disrupted global supply chains. Thus, business practitioners must comprehend the conditions to set up their business performance this year”.
According to the SIRCLO Group‘s CEO, to attain long-term business development, Indonesia’s entrepreneurs must prepare to conduct splendid business practices under the uncertain economic climate in 2023. The following are the strategic ways to amplify business operations:
1. Detecting general prediction of Indonesia’s economy in the post-pandemic
Business practitioners are anticipated to oversee the big economic picture of the country during the post-pandemic to adjust the consumers’ requisites, consumption patterns, and financial conditions. Through these innovative ways, numerous experienced entrepreneurs are believed to develop new business strategies that focus on long-term improvement while avoiding dramatic actions, including a sudden price spike in response to inflation or recession.
2. Accepting a small volume of sales
Ignoring small volume sales could generate a dreadful mistake for a business. Most of Indonesia’s MSMEs traded daily necessities. Around 63 MSMEs, with a contribution level of 60% towards the Gross Domestic Product (GDP) in the archipelago, have provided numerous job vacancies for society, attaining 97%. For this reason, business practitioners must broaden their business focus on this small volume.
3. Minimizing the production cost and escalating the sales value
Product price reduction could be one of the strategic solutions to swell business profits by diminishing production expenses and stipulating the market price. Business practitioners can boost their market share by gradually diluting costs while maintaining the profit margins earned from each sale.
In addition, business practitioners can also implement a Comparative Advantage, an economic theory to modify the production system for competitiveness. This scheme would allow entrepreneurs to offer their more affordable products and service from the other competitors, expecting to increase profit margins.
4. Enriching business collaboration and partnership
During the post-pandemic, reinforcing business cooperation and partnership is considered critical to resolving numerous challenges across industries and aligned with a fragmented market in Indonesia. On the other hand, a business partnership is a wise strategic move in significantly demonstrating the company’s positive performance, specifically in this digital era.
