PwC Survey: 75% of Indonesian CEOs Ready to Expand Beyond Core Business
Business leaders in Indonesia are increasingly aggressively pursuing business transformation by seeking new sources of growth outside their core industries. This approach is being pursued despite continued short-term economic pressures casting shadows over business prospects.
PwC’s latest survey in its 29th Global CEO Survey shows that 75% of CEOs in Indonesia plan to expand their businesses into sectors outside their core industry within the next three years. This figure is significantly higher compared to the global average of 53% and the Asia-Pacific average of 37%.
The survey, which involved 4,454 CEOs across 95 countries, reflects companies’ drive to adapt to an increasingly complex business environment whilst seeking new growth engines.
This diversification strategy is already showing results. Some 56% of CEOs in Indonesia reported having entered new industries in the past five years, up from 45% in the previous year. This figure exceeds both the global average of 42% and the Asia-Pacific average of 29%.
Companies that have expanded are also beginning to see tangible contributions, with an average of 22% of revenue coming from new sectors, higher than the global contribution of 20% and Asia-Pacific’s 19%.
Whilst continuing to drive transformation, CEO outlook on short-term conditions tends to be more cautious. Only 51% of Indonesian CEOs forecast that the global economy will improve within the next 12 months, whilst expectations for revenue growth have fallen to 32% from 35% in the previous year.
PwC Asia-Pacific Chairman Sri Nair said that global growth slowdown, continued high inflation, and geopolitical uncertainty mean that companies must be more adaptive in determining the direction of their business strategy.
“2025 tests global resilience with slowing growth and continued geopolitical uncertainty. CEOs who succeed are those who can see opportunities beyond traditional industries and position themselves early on the next source of growth,” he said in an official statement on Monday.
The survey also showed that short-term focus still dominates corporate agendas. Some 84% of CEOs in Indonesia prioritise strategies within a zero to five-year horizon, which is also reflected in more selective investment decisions.
Over the next 12 months, approximately 64% of Indonesian CEOs do not plan to make international investments. Companies that do expand abroad prioritise Singapore, Malaysia, and China as primary destinations.
Beyond organic expansion, approximately 41% of Indonesian CEOs also have the potential to undertake at least one major acquisition within the next three years, higher than the Asia-Pacific average of 28%.
On the technology front, the adoption of artificial intelligence is beginning to have an impact, although it is not yet widespread. Some 22% of Indonesian CEOs reported that AI has increased company revenue, whilst 28% see reductions in operational costs.
PwC Indonesia Territory Senior Partner Eddy Rintis assessed that AI’s still-moderate benefits indicate a gap between adoption intent and implementation readiness.
“Many organisations already have the culture and environment that supports AI integration, but practical foundations such as data access, investment, and technical talent remain major challenges,” he said.
Overall, the survey demonstrates that CEOs in Indonesia remain aggressive in driving business transformation, but are taking more measured steps amid short-term global economic uncertainty.