Indonesia

Long a stalwart of Indonesia’s economic development, particularly in terms of exports, the country’s mining and quarrying industry maintains a steady presence despite fluctuations in global commodity prices and domestic mining policies. Claiming some of the world’s most expansive reserves of valuable minerals and largest operational mines, the sector has seen some of the highest levels of...

Endowed with substantial energy reserves spread across its vast territory, Indonesia has been among the region’s largest producers and exporters of fossil fuels for decades. While this trend shows little sign of changing, the sector is in the midst of a dramatic shift in the composition of its resources. With crude production in decline, natural gas is taking on an increasingly important role in...

Indonesia’s insurance sector stands out as the fastest growing and most promising in South-east Asia, within a region that’s largely seen as the most attractive for the world’s major underwriters. Supported by rapid economic expansion spurred by domestic consumption in the past decade, the sector has averaged a compound annual growth rate of 20% in gross written premiums and 26% in assets since...

Indonesia’s domestic exchange is dominated by foreign investors motivated by capital gains. Less than 1% of the local population invests in Indonesia’s exchange, and those that do tend to prefer buy-and-hold strategies. Corporations have expanded their bond offerings amid a favourable market of low interest rates, high demand and a risk-free government yield curve. While the government works to...

Banking institutions currently account for around 77% of financial sector assets, while the sector’s overall penetration rate remains among the region’s lowest. The banking market remains highly fragmented, with 120 commercial lenders in 2012, alongside a much larger number of smaller institutions. Amidst rapid loan growth, average default rates for the country have dropped to historically low...

Indonesia’s place as the largest economy in ASEAN presents a strong value proposition for investors. Already achieving one of the world’s most consistent economic growth rates of above 6% since 2007, with only a minor dip to 4.6% in 2009, Indonesia has continued to impress global investors as more export-oriented economies have wavered. The BKPM has forecast that Indonesia will attract $40bn in...