Recreational boating in Indonesia may become increasingly strategic in the future, which is why some companies in the industry are opening offices in Jakarta.
Indonesia, or more precisely, the Republic of Indonesia, is an archipelago state in Southeast Asia consisting of as many as 17,508 islands. With more than 279 million people, it is the fourth most populous country in the world (data from The Lancet) after India, China, and the United States.
Geography and Climate of the Country
Geographically, Indonesia is a land full of contrasts. It has uninhabited wilderness areas, which support some of the greatest biodiversity on the planet, and densely populated islands (Java alone has 148 million inhabitants). The characteristics of the land and the immense number of islands make Indonesia a popular destination for those who enjoy recreational boating.
Located across the Equator, Indonesia has a tropical climate that is warm all year round. June to October is a dry season, while December to April can see torrential monsoon rains. Because of its geographical size, however, Indonesia can be enjoyed by boaters year-round. During “inter-monsoon” periods, yachts tend to move from one island to another among the thousands that make up the country.
The Most Popular and Frequented Destinations
- Among the most popular destinations for boaters attracted to Indonesia is BALI: the famous “island of the gods” has more than four million residents, boasts some of the most beautiful beaches, and cultural attractions such as temples and museums. There is a good number of ports and marinas available in Bali, such as the Bali Marina, Big Boat Quay, the superyacht-friendly Benoa Marina, and the Royal Bali Yacht Club.
- JAKARTA, the capital of Indonesia, also offers interesting cultural experiences. The presence of ports and marinas, including the Batavia Marina, makes this location an accessible place for boaters.
- The less commercialized and crowded island of LOMBOK has several mooring options for superyachts. Marina Del Ray and Medana Bay Marina are just some of the ports in this location, which is particularly suitable for those who, alongside their passion for boating, cultivate one for hiking. Mount Rinjani and Tiu Kelep waterfalls are among the most welcome nature attractions.
- The KOMODO Archipelago, home to Komodo National Park, is among the favorite destinations for boaters. Volcanic islands are appreciated for their special nature, hiking, and a pink beach.
- RAJA AMPAT in the east is among the most sought-after cruise destinations, particularly between November and February. The sea here is popular for diving and snorkeling since it is home to more than 1,400 species of fish. Among the ports and marinas in Raja Ampat is the Meridian Adventure Marina.
The Favorable Situation in Bali
In the post-Covid era, interest in recreational boating in Indonesia has risen, and the boating market is steadily increasing. Bali seems to be the most promising city for local recreational boating growth, as several high-income people have moved here in search of a more relaxed lifestyle. This is also why companies in the marine industry are opening offices in this location.
At the same time, accessibility to waterways has increased; the Indonesian government has invested heavily in boat-related infrastructure projects, such as new marinas and renovations of existing ports. In addition, the rising incomes of middle-class families have led them toward more frequent purchases of pleasure boats for personal use.
A Market in Lights and Shadows
Boat sales increased both on the domestic production side and on the side of boats imported from other countries, such as Thailand and China. All this is strengthening the industry, including attracting foreign investors who can help modernize boat production facilities. Thus job opportunities grow, but so does technological upgrading within factories, resulting in the sale of higher quality products and lower prices.
One challenge to overcome, however, is the lack of trained personnel. Running a successful boat manufacturing facility requires skills that often do not exist in local teams. Manufacturers, therefore, find themselves hiring experienced staff from outside at higher costs, adding pressure on already slim profit margins.
Companies of Note
Among the companies aiming for growth in Indonesia is Yacht Sourcing, a leading Indonesian yachting company: in late March this year it announced a partnership with Yanmar Marine International Asia, a company specializing in marine propulsion systems.
Under the agreement, Yacht Sourcing becomes the dealer of Yanmar’s pleasure boats in Indonesia. Through this partnership, Yacht Sourcing will offer comprehensive sales, service, and support for Yanmar yachts throughout Indonesia.
A Show in Jakarta Dedicated to Boating
Among Indonesian events dedicated to recreational boating, one of the most significant is the Indonesia Boat Show. This year’s edition will be held between July 30 and August 1, at JIExpo Kemayoran in Jakarta, Indonesia. A wide range of boats and yachts, as well as marine accessories and equipment, will be showcased during the fair; the aim of the event is to present the latest and best technologies and trends in the boating industry, promoting meetings between experts and enthusiasts in the field.
More than 3,000 people are expected to visit the Boat Show. Predominantly, visitors will be boat builders and designers, service providers, and others involved in the marine industry. Seminars and workshops on nautical topics such as safety, navigation, and maintenance will also be held during the event.
Between February 15 and 25, the IBG (Indonesia Boating Gathering), a fair dedicated to recreational boating and maritime tourism, was held again at the JIExpo Kemayoran in Jakarta. It was created at the initiative of CMSI – Community for Maritime Studies Indonesia.
Community for Maritime Studies Indonesia
The CMSI association, established in 2007 through the initiative of some former naval officers, has been strengthened over time by the presence of academics, professionals, and entrepreneurs. Its main goal today is to grow interest and expertise in the maritime sector in Indonesia, increase collaboration among people, support responsible national governance, and foster environmental sustainability.
CMSI organizes events where people working in the nautical and maritime industry can share their experiences, carries out research programs on maritime history and archaeology, offers educational activities and workshops to teach disciplines such as sailing and boat building, and promotes initiatives to make maritime activities accessible at all levels.
INDONESIA – STATS & FACTS
ECONOMIC INDICATORS
- GDP growth (2022)
- +5,3%
- (World Bank data)
- GDP growth per capita (2022)
- + 4.6%
- (World Bank data)
- High Net Worth Individuals (2023)
- In 2023, there were around 1,479 ultra high net worth individuals residing in Indonesia. This was forecasted to increase to nearly two thousand by 2028.
- (data: Statist)
- Indonesia retail spending (November 2023)
- 2,1%
- (data: Trading Economics)
- Consumer Confidence (February 2024)
- 123.16 index points
- (data: Trading Economics)
- Unemployment (November 2023)
- 5,32%
- (data: BPS Statistics Indonesia)
- New car sales (February 2024)
- 70.657 units sold. In January, there had been 69,619.
- (data: Marklines)
BOATING MARKET INDICATORS
Cruise market:
- In 2024, in Indonesia, projected revenue in the cruise market is expected to reach $20.97 million.
- Revenues are estimated to register an annual growth rate (CAGR 2024-2028) of 3.69%, with a projected market volume of $24.24 million by 2028.
- By 2028, 24% of the total revenue generated in the cruise market will be through online sales.
- The Indonesian cruise market is gaining in popularity, especially when it is geared toward cultural experiences and ecological activities.
(Source: Statesman)
Indonesia ranks seventh among the world’s top 10 countries by trade balance in the inflatable craft sector.
(Source: Edison Foundation processing of ITC data)
RANKING OF THE WORLD’S TOP 10 COUNTRIES BY TRADE BALANCE IN THE AIR CRAFT INDUSTRY
Rank | Country | Commercial surplus |
1 | China | 317 |
2 | Italy | 56 |
3 | Turkey | 43 |
4 | Tunisia | 36 |
5 | Vietnam | 7 |
6 | South Africa | 7 |
7 | Indonesia | 5 |
8 | Czech Republic | 3 |
9 | Romania | 2 |
10 | Thailand | 1 |
Source: elaboration Edison Foundation on ITC data
Year 2022 (values in millions of dollars)