Bolstered by rising domestic consumption and comparatively low labour costs, Indonesia’s textile industry has reported years of steady expansion, with the value of exports estimated at more than $13bn in 2014. However, wage hikes and low productivity have cut into profits, while rising power costs in 2014 have had an adverse effect on the sector’s growth forecast for 2015....
Industrial development is perhaps the most important pillar of Indonesia’s long-term economic expansion strategy, and the nation has made significant economic strides in recent years as a result of its fast-expanding industrial sector. The country now is poised to outpace Thailand and Malaysia as a major regional manufacturing and export hub, and investors are increasingly...
With its target of becoming a highly developed nation by 2025, Indonesia is aiming to bolster industrialisation and value addition, as well as expand its labourintensive manufacturing industry as it implements the Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development (MP3EI.) An ongoing focus on industrial development has seen the government –...
E-commerce in Indonesia is booming, but it is not clear whether foreign investors can legally participate in the expanding field. In 2013 the government announced that online retailers would be treated like all others: any company without a shop larger than 2000 sq metres must be Indonesian-owned. By implication, that would mean all internet...
Alongside Indonesia’s emphasis on the importance of economic development, the country is at the same time working to protect itself from some of the unintended consequences of that development, especially in the retail sector. The emerging middle class will continue to help drive the economy forward, but the retail sector that serves it has the...
Indonesia has a fast developing retail sector, and all signs point toward it evolving quickly from highly fragmented and basic in terms of quality, service and efficiency to one similar to advanced ASEAN countries, with modern trade outlets and large groups leading the way. Indonesian consumers are active and increasingly prosperous. Firms are...
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