The Indonesian government is in the midst of pursuing an ambitious new growth strategy, emphasizing 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.
RAVI SHANKAR: Indonesia's upstream segment manufactures significant quantities of two raw materials: polyester and rayon. The two major fibres consumed in the textile industry are polyester and cotton, the latter of which is not currently being produced in Indonesia. Polyester production began in 1980, so we have a sizeable industry in Indonesia, but in the last 20 years capacity has mostly been developed in larger countries such as India and China.
Plans by a Chinese-led private investment group to pour $5bn into a new West Java industrial park signal that the Indonesian government’s efforts to attract additional foreign direct investment (FDI) may be yielding the desired results.
Representing the world’s fifth-largest tobacco market, Indonesia’s tobacco industry has soared in recent years, with manufacturers vying for market supremacy in a country with an estimated 85m smokers. The market has long been attractive to major international players such as Philip Morris International (PMI) and British American Tobacco (BAT), which both witnessed sharp...
With new export bans, investment reforms and a push for value addition driving a flood of new projects in the country, Indonesia’s manufacturing sector is slated for significant expansion in the medium term. Automotive manufacturing in particular is set to benefit, with the government’s low-cost green car (LCGC) programme witnessing strong growth when it was rolled out in 2013...
Stay updated on how some of the world’s most promising markets are being affected by the Covid-19 pandemic, and what actions governments and private businesses are taking to mitigate challenges and ensure their long-term growth story continues.
Register now and also receive a complimentary 2-month licence to the OBG Research Terminal.
Register Here×