Although private equity (PE) has faced the challenges of lower leverage and poor image since 2008, Indonesia is attracting a growing number of foreign and homegrown dealmakers. “PE is drawn to Indonesia given the strong growth prospects,” Destry Damayanti, chief economist at Bank Mandiri, told OBG. “Given Indonesia’s still shallow financial sector,...
What are the reasons behind Indonesia’s third consecutive trade deficit in July 2012, and what is your forecast for the 2013-14 period?
The top 15 lenders continue to be considered systemically important in Indonesia, controlling 74% of banking assets as of September 2012. The majority of the market is still controlled by the top 10, which held 65.4% of deposits, 64.1% of loans and 64.8% of bank assets in April 2012 according to Pefindo, a credit ratings agency. These shares rise to...
The Asian financial crisis triggered a downgrade in the country’s sovereign rating from an investment-grade level of BBB- by both Fitch and Standard & Poor’s in early 1997, to B and CCC, respectively, in early 2001. This was followed by a capital flight, depreciation of the rupiah by over 70% and turbulent shifts in the post-Suharto regime’s...
Investors have traditionally focused on the largest cities in Java, but as urbanisation and growth spread to more outlying regions in the last decade attention has broadened to provincial urban centres.
In the face of rapidly expanding consumer lending in recent years, Bank Indonesia (BI) raised down payment requirements for two- and four-wheel vehicles as well as mortgages from July of 2012. With credit ratings agencies forecasting a medium-term rise in non-performing loans (NPLs) from their record low in 2012, the regulator has also sought to act...
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