A flurry of major infrastructure projects in Indonesia is set to boost the construction sector, although growth in the domestic building materials industry remains hamstrung by regional competition and government intervention in some cases.
Indonesia
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With global coal prices showing little signs of recovery, calls amongst industry players in Indonesia to limit production of coal and increase the focus on value-added operations are growing louder.
Hopes are rising that long-awaited reforms of state-owned enterprises and government initiatives can help Indonesia’s agriculture sector rebound from a year of commodity price shocks, which have taken their toll on the country’s biggest exports, particularly palm oil.
The textiles industry in Indonesia is growing steadily, nudging Jakarta closer to its long-term goal of rivalling China as a global leader in garment exports. However, sector players say stronger trade pacts are needed as well as more investment to maintain a competitive edge in the regional and international marketplace.
As incoming Indonesian president Joko “Jokowi” Widodo prepares to take the reins on October 20, speculation is growing that the way in which he tackles cutting the huge fuel subsidies may come to define his presidency.
A wave of energy exploration and extraction projects is expected to be rolled out in Indonesia over the coming months, with an increased focus on developing new offshore reserves.