Indonesia

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.

Growth in Indonesia’s manufacturing sector continues to outstrip the rest of the economy, with gains in most industries well above those of the national average. Some regions away from Java posted even higher rates of expansion, though there are lingering concerns some of this growth is underpinned by a reliance on commodities imports – one that fuels the current account deficit.

Indonesia is eyeing higher export levels in the second half of 2014, despite continuing concerns over the impact of a controversial ban on shipments of a key commodity.

Concerns that one of Indonesia’s best-known tourism destinations, the tropical island of Bali, is being overrun by foreign holidaymakers and that its very popularity is putting at risk the natural attractions that draw so many visitors have prompted renewed calls to broaden the base of the country’s tourism industry, with greater emphasis put on developing new and sustainable resorts.

A shift of emphasis is under way in the regime governing Indonesia’s foreign direct investment (FDI), as the country moves to boost capital inflows in some areas of the economy through regulatory changes, while closing other sectors to international players.

The stock market in Indonesia is set for another busy year, with 30 or more companies having already announced plans to undertake an initial public offering (IPO) despite looming elections. The wave of new listings, along with new requirements announced by regulators, is set to sustain improved liquidity and activity on the exchange.