Executive Search in Indonesia– 2016 Outlook


Indonesia has a truly captivating story:  Javanese Folklore, batik art, colonial Dutch rule, army generals, a wildly fluctuating rupiah and emerging from this potpourri is Southeast Asia’s largest economic powerhouse with a 240 million strong population.

Indonesia has emerged as one of Asia Pacific’s most vibrant democracies with an Economic growth poised to accelerate in 2016.  Household and government spending is expected to increase, while recently unveiled economic stimulus packages (involving deregulation and tax incentives) will create a more robust investment climate for both foreign and domestic investment growth.

Economic growth in Indonesia can reach 6% in 2016 provided that government spending continues to improve and investors are convinced of Indonesia’s attractive investment climate.

Like many developing countries, there is strong growth in the engineering and manufacturing sectors in Indonesia due to relatively low labour costs and increasing demand for infrastructure. Based on recent studies the sectors expected to show growth are:

  • Automotive Sector:The Association of Indonesia Automotive Industries predicts that vehicle sales will increase 5 percent in 2016
  • Power & Energy: with initiatives from PLN there will be a boost in power project, sub stations and transmission lines projects in 2016
  • Property Sector:  the property industry is predicting 10 to 12 percent growth in the next few years
  • Retail Sector:  with new investments from China / Japan / Korea  the retail industry is expecting to reach 10 to 12 percent growth in 2016
  • Food and Beverage Sector: The industry is predicting 8 percent growth in 2016 thanks to the Asean Economic Community (AEC)
  • Information Technology Sector: The IT industry will continue to grow in 2016, with a boost in E-commerce and onset of Digital era.
  • Banking Sector: in the midst of global fluctuations , the banking sector is expected to  hit a  growth of 12 to 14 percent in 2016

Salary and remuneration is by far the most important factor in talent attraction and retention.  Companies with better HR practices have well designed plans to offer career progression, professional working environment and culture, programs for leadership development, stock options, retention schemes, incentives etc.

Companies have become more cautious about hiring because of the weakening rupiah and uncertain economic outlook and this has also led to a greater focus on retaining top talent and making counter offers.


Following the launch of the ASEAN Economic Community (AEC) at the end of December 2015, Indonesians along with others in the region will find the rules of the game changing and the new challenges of Southeast Asia’s free market.

The objective of the AEC is to improve economic stability in Southeast Asia, to address economic matters among ASEAN member countries and to improve ASEAN competitiveness and enable members to compete with China and India in attracting foreign investment.

One of the many positive impacts is that Indonesian investors may expand their businesses without facing restrictions in neighbouring countries. Conversely, Indonesia can draw investment from ASEAN investors.

Cornerstone Indonesia is uniquely poised as one of the top executive search and H R consulting companies to provide high quality consulting support and services to companies planning to invest and expand operations in Indonesia.

Cornerstone Indonesia consultants have a rich blend of global HR experience combined with local expert knowledge of FMCG, Manufacturing, Mining  and Metals , Banking & Financial services ; Energy and Power Sectors.  They are perhaps the only reliable consulting company with a proven track record of success  in both Executive Search also well as  HR Consulting support.

With its Global network of over 70 office worldwide, its strong association with AESC naturally makes Cornerstone Indonesia the preferred vendor of choice for new investments in Indonesia.