Economy Bangkok Bank Backs Thai SMEs in Indonesian Expansion

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Pictures courtesy of Bangkok Post

 

Bangkok Bank (BBL) has signalled its support for Thai medium-sized enterprises (SMEs) aiming to expand into the burgeoning Indonesian market. The recent developments were highlighted during the 2025 Indonesia Investment and Trade Forum, jointly organised by Bangkok Bank and its Indonesian affiliate, Permata Bank.

 

BBL president Chartsiri Sophonpanich addressed the forum, underscoring Indonesia's robust economic prospects. The nation’s GDP per capita has climbed from US$3,370 (around 108,000 baht) in 2015 to US$4,980 (approximately 160,000 baht) recently, signalling its attractiveness as an investment destination.

 

Bangkok Bank is poised to assist not only large corporations but also SMEs. These smaller enterprises are vital players within various supply chains, spanning sectors such as food and beverage, renewable energy, automotive parts, manufacturing, and infrastructure.

 

Chartsiri emphasised that Indonesia’s expanding middle class and increasing national wealth present significant opportunities for Thai SMEs. However, he also advised businesses to remain vigilant amidst global challenges, including climate change, technological progress, geopolitical tensions, and the shifting dynamics of deglobalisation.

 

"The strategic expansion into high-growth markets like Indonesia can mitigate risks while unearthing new ventures," Chartsiri remarked.

 

Despite the recent suspension of Thai Prime Minister Paetongtarn Shinawatra by the Constitutional Court, Chartsiri assured that government operations are expected to proceed smoothly, with no immediate threats to stable governance.

 

On the bilateral investment front, Pandu Sjahrir, Chief Investment Officer of Indonesia's sovereign wealth fund, Daya Anagata Nusantara, noted a steady increase in trade and investment between Thailand and Indonesia. By the first quarter of 2025, Thai investments in Indonesia had reached US$1.4 billion (approximately 45 billion baht), with significant activities in chemicals, renewable energy, and automotive sectors.

 

Major Thai investors such as PTT Global Chemical, Ratch Group, Egco Group, SCG, and Thai Summit Group are key players in this economic collaboration. Their contributions are pivotal to Indonesia’s sustainable development and green transformation.

 

Sjahrir highlighted Indonesia's focus on eight priority sectors: minerals, renewable energy, digital infrastructure, healthcare, financial services, utilities and infrastructure, industrial estates and property, and food and agriculture. These areas, he said, offer promising avenues for Thai businesses seeking to establish a foothold in the Indonesian market.

 

With the backing of Bangkok Bank and a strategic focus on burgeoning sectors, Thai SMEs are well-placed to leverage Indonesia's growth, fostering a mutually beneficial economic partnership.

 

  Adapted by ASEAN Now from The Thaiger 2025-07-03