Despite the widespread use of hedging instruments offshore, Indonesia’s derivatives market has been slow to develop. Bank Indonesia (BI) regulations in late 2008 following significant losses linked to onshore structured products have restricted foreign-exchange (FX) and interest-rate derivatives to over-the-counter (OTC) trading between banks. A...
While still small compared to its potential, Indonesia’s insurance market is attracting global underwriters and reinsurers. Only 6% the size of China’s market, according to SwissRe – at roughly Rp147trn ($14.7bn) in combined life and non-life premiums in 2012 – Indonesia’s market has sustained annual growth of over 20% in premiums and 26% in...
THE COMPANY: Established over 60 years ago, Garuda Indonesia (GIAA) is the country’s first carrier and the only premium airline serving the local market, with an extensive network including 22% of domestic market share and 38% market share in cargo.
How much progress has been made in terms of easing cross-border restrictions within the ASEAN banking integration framework?
In the world’s most populous Muslim nation where over 85% of the population ascribes to the faith, Indonesia’s sharia-compliant insurance segment (takaful) remains marginal at a mere 3.9% of industry assets in 2012, according to a June 2013 report by rating agency Fitch. While proportionately small compared to neighbouring countries like...
Over the past decade, Indonesia’s capital markets have gone from strength to strength, buoyed by the commodities super-cycle, sustained economic growth and a resilient domestic consumption story. Long dominated by foreign institutional investment, they remain vulnerable to shifts in global emerging market risk appetite. “We are still in the...
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