Indonesia

As with other economies around the world affected by the global crisis, growth slowed in Indonesia in 2012. However, the property market is bucking the national trend, with large real estate developers planning a wave of new construction and mid-sized companies launching office and apartment projects.

Having topped its goal of seeing 8m visitors last year, Indonesia is now targeting 9m tourist arrivals for 2013. A series of new and ongoing initiatives establishing niche segments is expected to aid in that goal.

Predictions of rosy export figures in 2013 for Indonesia’s palm oil sector offer the country a chance to answer claims that it is not living up to its agricultural potential. However, critics say more innovation and private sector development are needed if self-sufficiency and agribusiness goals are to complement each other.

Lower-than-expected economic growth for 2012 in Indonesia has been widely attributed to uncertainty in the global economy, with rising domestic demand and investment levels set to back growth in 2013.

A flurry of initial public offerings (IPOs) planned for December and early 2013 highlight how firms in Indonesia are trying to harness bullish domestic and global confidence to fund plans for expansion.

Strong domestic demand, combined with a recovery in export orders, is boosting growth in Indonesia’s manufacturing sector, although the prospect of rising labour costs has also highlighted the importance of ensuring efforts to increase productivity are maintained.