Indonesia

Increased government investment in infrastructure has helped unleash a boom in Indonesia’s construction sector. With rapidly growing demand for residential real estate, office buildings, industrial estates and other property across the archipelago, the construction sector is poised to see significant expansion. And, although the sector has declined since 2012, a new law that allows foreign...

Indonesia has all the makings of an industrial powerhouse: a young and talented population, relatively cheap labour and a large domestic market. The country has the capacity to develop its industrial capacity, specifically in terms of export-oriented industries. Indeed, manufacturing is vital to the Indonesian economy. Without it the country would have a difficult time addressing its current...

Buffeted by volatile global commodity prices and legislative uncertainty at home, Indonesia’s mineral output has fluctuated considerably in recent years. The mining sector comprised 11.24% of GDP in 2013, down slightly on 11.8% in 2012, but an improvement on the 8.94% recorded in 2004. Coal contributed $26.64bn to domestic exports in 2013, followed by copper ore at $3.38bn, nickel ore at $1.88bn...

The nation’s vast territorial expanse and established presence of experienced, well-financed international and domestic oil firms has led to the discovery and exploitation of a succession of sizeable oil and gas projects across the country for more than 125 years. As of 2013, Indonesia’s total hydrocarbons reserves reportedly included 3.7bn barrels of oil and 103.3trn cu ft of natural gas. In...

Rising disposable incomes, consumption growth and sustained investment are key factors in the sector’s recent continued expansion and future potential growth. While still small compared to its potential, Indonesia’s insurance market is attracting global underwriters and reinsurers. The life segment, which comprised roughly two-thirds of premiums in 2012, is the market’s key growth driver. The...

Growth in Indonesia’s stock market in recent years has been driven by the steady expansion in the total number of shares listed, which increased from 296 in 2008 to 479 by September 2013. Once dominated by commodities, such as mining, energy and agriculture stocks, the local market is now led by consumer-related shares, such as financial services, infrastructure and utilities. Domestic investors...