Indonesia Economy

Investors have traditionally focused on the largest cities in Java, but as urbanisation and growth spread to more outlying regions in the last decade attention has broadened to provincial urban centres.

Consistent performance and strong growth prospects are precious in an economically volatile world. The 17thlargest economy in the world with a GDP of just over $1trn in 2013, according to estimates from the International Monetary Fund (IMF), Indonesia’s place as the largest economy in ASEAN presents a strong value proposition for investors. Already...

Foreign direct investment (FDI) flows to Indonesia have consistently set new records since 2010 both in terms of value but also in the economic sectors and the geographic areas targeted. As Indonesia moves from a natural resource investment destination to claim its place as a central cog in the region’s industrial supply chain, despite continuing...

As a net oil importer, Indonesia’s most pressing fiscal challenge remains its large subsidy bill, which at around 20% of the 2013 budget – some $30bn – accounts for as much spending as education. Although there is widespread agreement that the subsidies are wasteful and disproportionately benefit more affluent Indonesians – the World Bank estimated...