Indonesian Family Businesses Face Growing Economic Pressures

Key Findings from PwC Family Business Survey 2025

The latest PwC Family Business Survey 2025 has revealed significant challenges facing family businesses in Indonesia. The comprehensive survey, which included 1,325 family businesses across 62 countries and regions, provides valuable insights into the current state of family-owned enterprises globally and in Indonesia.

Economic Volatility: The Primary Concern

The survey highlights that 63% of Indonesian family business respondents identified economic volatility as their most pressing issue. This figure is slightly higher than the global average of 58% who shared similar concerns. The finding underscores the vulnerability of family businesses to economic fluctuations in Indonesia's emerging market.

Intensifying Market Competition

The research also reveals that nearly 90% of family businesses worldwide, including those in Indonesia, are operating in an environment characterized by increasingly intense market competition. This competitive pressure is forcing family businesses to adapt and innovate to maintain their market position.

Shifting Growth Expectations

Marcel Irawan, PwC Indonesia Private Leader, noted that 'the era of double-digit revenue growth has passed' for Indonesian family businesses, aligning with global trends. This observation suggests that family businesses must now focus on sustainable growth strategies rather than relying on rapid expansion.

Implications for Indonesian Family Businesses

The survey results have significant implications for family businesses operating in Indonesia. With economic volatility at the forefront of their concerns, these businesses must develop strategies to mitigate financial risks while maintaining competitiveness in a challenging market environment.

Strategic Recommendations

1. Risk Management: Implement robust financial risk management systems to navigate economic volatility
2. Innovation: Focus on innovation to maintain competitive edge in intensifying market competition
3. Sustainable Growth: Shift focus from rapid expansion to sustainable growth strategies

By adopting these strategies, Indonesian family businesses can better position themselves to withstand current economic challenges and capitalize on future opportunities.