Indonesia

Solid economic growth bodes well for Indonesia’s insurance sector, with forecasts that insurance premium and total asset levels will increase over the medium term. It is possible, however, that many of the smaller players in the market could be squeezed as competition for clients, especially in the life segment, heats up.

With the economy likely to post another year of strong growth in 2011, and a positive and stable outlook beyond, the Indonesian property sector, according to analysts, looks set to continue its steady advance.

Indonesia’s energy industry is looking to ramp up investments at home and abroad to boost output and help meet the growing demand from the domestic market while maintaining its position as a leading natural gas exporter.

As Indonesia moves into 2011 with excellent prospects for long-term growth, its place alongside giants China and India as one of the most important economies in the world is being increasingly widely acknowledged.

Indonesia plans to promote its natural and cultural attractions in order to reach its target of 7.6m tourist arrivals in 2011, with an emphasis on “eco-cultural” sights and activities. These are expected to attract well-heeled visitors who spend more and have less of an impact on the environment.

As the year comes to a close, Indonesia can look back on 2010 with no small degree of satisfaction. The economy is performing well, foreign investment is on the rise and there is continued political stability. However, concerns linger over rising inflation and the sustainability of the current growth cycle.