Indonesia

Since the global financial crisis hit in late 2007, portfolio investors worldwide have cast a wider net, looking for capital gains in a world where economic growth is far from certain. In their search for markets that have shown resilience, many have turned to the countries of South-east Asia.

With nine parties represented in the Indonesian legislature – and six of those present in the cabinet – the political landscape of the country is clearly very multifaceted. Though three parties tend to dominate the scene, no one group has been able to gain a majority in parliament and shifting coalitions and alliances ensure a wide variety of...

Although the country has already made strides to improve its investment climate, further bureaucratic reforms meant to streamline procedures and encourage private investment are central to Indonesia’s ambitions over the next 15 years. After years of centralised rule under Suharto, the initial “big bang” of decentralisation in 2001 wrought its own...

THE COMPANY: In line with expectations, Kalbe Farma (KLBF) reported increased earnings in the first half of 2011. Sales grew approximately 5.14% year-on-year (y-o-y) to Rp4.94trn ($592.8m). This figure is equal to around 44.07% of the full-year projection of Rp11.22trn ($2.38bn). Pharmaceutical packaging...

While government spending has not been a key driver of growth thus far, monetary policy has remained the key instrument of macro-economic management. Affected by balance-of-payments crises exacerbated by currency volatility, the central bank has maintained a watchful eye on the rupiah, which rose 14.4% against the dollar in 2010 and stands as the...

With GDP growth at 6.1% in 2010 and forecast to reach 6.6% in 2011, on the back of buoyant consumption, expectations are high for insurance in Indonesia.