IDN · snapshot 2026-08-09
Indonesia
MediumOverall risk score
45.4
Percentile of scored universe
47th
Data coverage
100%
vs Australia (16.1)
+29.3
Category breakdown
Political Stability & Governance
High6 indicators · 100% coverage
Economic Resilience
Low7 indicators · 100% coverage
Financial & Currency Risk
Medium5 indicators · 100% coverage
Business Environment
High4 indicators · 100% coverage
Security & Crime
High4 indicators · 100% coverage
Climate & Social Compliance
High4 indicators · 100% coverage
Technology & Digital
Medium4 indicators · 100% coverage
Cultural Distance
Medium9 indicators · 100% coverage · not in overall score
Key risks and considerations
Indonesia rates Medium for market entry — an overall risk score of 45.4, less risky than 53% of rated economies and 29 points riskier than Australia.
The main risk drivers are pervasive organised crime (6.8/10) and political instability.
Relative strengths: GDP growth, current account, currency stability all rate Low, the least-risky rating band.
Possible mitigations
- Organised crime. Expect extortion, counterfeiting, and cargo-theft exposure: harden supply-chain security, vet logistics partners and distributors carefully, and avoid cash-heavy channels.
- Payment fraud. Experts nominate this market as a cybercrime origin (World Cybercrime Index, 2021 survey): verify any change of bank details out-of-band, enforce MFA and dual authorisation on payments, and be sceptical of unsolicited counterparties.
- Cultural bridging. Large cultural distance: invest in local partners, bilingual advisers, and longer relationship-building timelines — assume negotiation and management norms differ materially.
Generated automatically from this snapshot’s indicator data — a starting point for analysis, not advice.
Indicators
| Indicator | Value | Risk score | Rating | Australia | Data source year | Source |
|---|---|---|---|---|---|---|
| Political Stability & Governance | ||||||
| Voice & accountability (WGI) | 53.8 | 55.4 | High | |||
| Government effectiveness (WGI) | 54.8 | 42.7 | Medium | |||
| Regulatory quality (WGI) | 56.8 | 40.2 | Medium | |||
| Rule of law (WGI) | 53.4 | 52.9 | High | |||
| Control of corruption (WGI) | 36.8 | 65.0 | High | |||
| Political stability & absence of violence/terrorism (WGI PV) | 55.5 | 74.2 | High | |||
| Economic Resilience | ||||||
| GDP growth (3-yr average, %) | 5.1% (3-yr avg) | 15.0 | Low | |||
| Growth volatility (10-yr std dev, pp) | ±2.3 pp | 24.3 | Low | |||
| Government net debt (% of GDP) | 38.7 | 35.0 | Medium | |||
| Inflation (CPI %, vs income-group target) | 1.9 | 35.0 | Medium | |||
| Current account (3-yr average, % of GDP) | -0.3% (3-yr avg) | 15.0 | Low | |||
| FX reserves (months of import cover) | 5.5 months | 30.0 | Medium | |||
| GDP per capita (PPP, current intl $) | $17,660 | 57.0 | High | |||
| Financial & Currency Risk | ||||||
| Capital-account openness (Chinn-Ito KAOPEN) | 0.42 | 60.0 | High | |||
| Currency stability (regime-aware classification) | Floating — low volatility (<8%) | 15.0 | Low | |||
| Sovereign credit risk (OECD country risk classification) | Category 3 / 7 | 28.0 | Medium | |||
| FATF listing (grey / black list status) | Not listed | 0.0 | Low | |||
| Double-tax agreement with Australia | In force | 0.0 | Low | |||
| Business Environment | ||||||
| FDI regulatory restrictiveness (OECD FDIRRI) | 0.28 | 68.3 | High | |||
| Logistics performance (World Bank LPI) | 3.0 | 44.6 | Medium | |||
| Business readiness (World Bank B-READY pillar average) | 62.9 | 39.8 | Medium | |||
| Investment protection with Australia in force (BIT or FTA investment chapter) | In force | 0.0 | Low | |||
| Security & Crime | ||||||
| Armed-conflict intensity (battle deaths per 100k, 5-yr) | 0.0 | 70.7 | High | |||
| Intentional homicide rate (per 100k) | 0.3 | 4.5 | Low | |||
| Organised crime pervasiveness (GI-TOC criminality score) | 6.8 | 87.8 | Very High | |||
| DFAT Smartraveller advisory level | Level 2 — Exercise a high degree of caution | 40.0 | Medium | |||
| Climate & Social Compliance | ||||||
| Physical climate vulnerability (ND-GAIN vulnerability) | 0.431 | 44.5 | Medium | |||
| Disaster risk (INFORM Risk Index) | 4.5 | 67.5 | High | |||
| Modern-slavery prevalence (per 1,000) | 6.7 | 61.6 | High | |||
| Modern-slavery vulnerability score | 48.6 | 52.2 | High | |||
| Technology & Digital | ||||||
| E-government development (UN EGDI) | 0.8 | 32.9 | Medium | |||
| Internet users (% of population) | 72.8 | 62.6 | High | |||
| Cybercrime origination (World Cybercrime Index) | 1.2 | 30.0 | Medium | |||
| Secure internet servers (per million people) | 2939.5 | 38.4 | Medium | |||
Per-indicator ratings are quartile bands of the 0–100 risk score. The Australia column shows the same indicator’s raw value for the Australian baseline in this snapshot.
Cultural distance
GLOBE 2004 societal practices · rated on distance from Australia · not in the overall score
Context — not scored
Unemployment
3.2%
Displayed, never scored: ambiguous for an entrant and unreliable where informal employment dominates. (2025, ILO modelled)
Trade agreement
Free trade agreement with Australia in force
Market access is decision-relevant but a benefit, not a risk — kept out of the rating.
Regional advisories
Higher levels apply in some areas (up to Level 3)
DFAT Smartraveller sub-national advice where it exceeds the overall level.
Compare with
A score means little on its own. These economies scored closest to Indonesia in this snapshot, which is the fastest way to see whether the rating is telling you something specific or something regional.