Indonesia

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Chapter | Transport & Logistics from The Report: Indonesia 2012

With logistics costs among the highest in ASEAN at around 25-30% of GDP, transportation improvements are high on the priority list when it comes to boosting Indonesian growth. Indonesia is investing in plans to boost the road network from 4400 km to 8666 km of roads by 2015. Rail is set for a similar upgrade, with plans that include the Trans-Java high-speed railway. Meanwhile, with 17.6% growth...
Jakarta’s property market is in the midst of a boom driving growth across both the sector’s residential and commercial segments. A combination of strong domestic demand, low interest rates and increased foreign investor confidence is thought to be behind the trend which is expected to continue during 2012, forming a key component of Indonesia’s economic growth.
While many markets struggled with debt and fall-out from the world economic crisis in 2011, Indonesia bucked global trends by recording its fastest rate of growth in 15 years. Buoyed by strong domestic demand and huge resource wealth, Indonesia’s economy grew 6.46% last year, making it a magnet for investors who have also been attracted by its macroeconomic stability.
Indonesia’s automakers are investing heavily in increasing and diversifying production to keep pace with rising demand in what is now South-east Asia’s largest vehicle market. Last year, Indonesia overtook Thailand to achieve the highest vehicle sales among ASEAN member states.
With GDP growth for 2011 expected to have hit more than 6% and home to a growing and savvy population, the future of Indonesia’s retail sector looks promising, though there are concerns that a recent influx of mall building has glutted the market temporarily.

Within its vast territory, Indonesia contains enough renewable energy sources to enable the country to more than quadruple its current power-generating capacity. According to data from the Directorate-General of New and Renewable Energy and Energy Conservation (EBTKE), the combined renewable energy potential of Indonesia’s hydro, geothermal and...

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