Indonesia

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John Riady: Indonesia is on the cusp of a digital revolution. This is important because a country like the US has been through five digital cycles, while China has arguably seen two. In Indonesia this the first tech cycle where there has actually been the ecosystem to support a digital world. For digital businesses to work, consumers need to have certain habits, and there should be a specific threshold of smartphone availability as well as affordable broadband internet and qualified engineers, among other things. Without those things, you cannot have a digital world. Only today do we have everything in place. This is our first technological boom of many to come.

Last month the Indonesian government began the implementation of a tax amnesty to boost state revenue and investment, and ease pressure on the nation’s current account.

A move to step up the pace of spending on infrastructure in Indonesia is beginning to yield results, in line with the government’s broader growth targets.

The burgeoning purchasing power of Indonesia’s middle classes and the increasing role of alternative lenders such as multi-finance institutions are generating growth in the archipelago’s consumer finance market.

Government and private initiatives are set to broaden agriculture’s contribution to economic growth and boost smallholder operations by encouraging the use of more advanced technology in the farming sector.

To ensure energy security and meet growing demand for electricity, the Indonesian government is looking to expand its generation capacity through a mix of traditional and alternative sources, including geothermal and new coal technology.

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