Indonesia Economy

Which areas present the greatest opportunities for investment in 2016/17?

During the years of former President Suharto’s rule, Indonesia’s political and economic power was concentrated in Jakarta. But with democratisation has come decentralisation, a trend that has gathered momentum since direct local elections were introduced in 2005, in turn creating a new breed of grassroots politician. After all, it was...

Indonesia is tailoring its exports and foreign direct investment (FDI) growth strategies towards enhancing its relationship with China, where authorities are hoping to transform the economy from an investment- to a consumption-based one. At the same time, falling commodity prices, particularly for coal and crude palm oil, have emphasised the...

Although Indonesia’s history has been marked by periods of protectionism and closed trade, the administration of President Joko Widodo has made major strides in liberalisation since coming to power in late 2014. This is especially apparent with the recent announcement that the country plans to join the Trans-Pacific Partnership (TPP), which...

The Indonesian government is in the midst of pursuing an ambitious new growth strategy, emphasising investment over domestic consumption as a primary growth driver in the wake of depressed commodity prices, lagging household consumption and lower-than-anticipated government revenues.

As South-east Asia’s largest economy and the world’s fourth-most-populated country, Indonesia is an important trade partner within ASEAN, as well as for Japan, China and the US. The country has averaged more than 5% annual GDP growth over the past decade through sound macroeconomic policies, rising domestic demand driven by a burgeoning middle...