Indonesia Industry

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An expanding middle class and a broadening economic base have been cited as two of the driving forces behind the forecast for rapid expansion of the Indonesian automotive industry, with predictions that domestic and regional demand will combine to boost growth over the next few years. However, rising interest rates and a weaker rupiah may put a damper on sales in the more immediate term.
From cocoa to mobile phone handsets and cement to aircraft, Indonesia’s industry sector is surging as firms look to make inroads within the region and further abroad. However, a lack of infrastructure remains a limiting factor on growth.

The food and beverage industry is changing along with the rest of the country, and facing very much the same opportunities and challenges. As Indonesia becomes more prosperous, business becomes better; but just as food and beverage firms experience the demand that comes with prosperity, they are also facing some of the more frustrating aspects of...

What are the main competitive advantages that put Indonesia ahead of other regional countries in terms of foreign investment in the auto industry?

The pulp and paper industry is one of the most successful sectors in Indonesia. It has been growing steadily since the late 1980s, generates almost $6bn in exports, accounts for about 1% of the country’s GDP and employs about a quarter of a million people. The sector has been a vital part of the Indonesian success story, in particular because of how...

The textile industry has been struggling with a number of problems. Wage rates are increasing and competition, especially from China, is rising dramatically. Furthermore, Indonesia’s main markets in the West are weak as the recession drags on in some places and consumers cut back. And the US has given preferential rights to some of Indonesia’s...

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