Indonesia

The country’s airlines are benefitting from rapidly increasing demand throughout the archipelago and beyond as they look towards international expansion. With one airline having recently signed the largest single deal in aviation history and expansion of airports underway the sector is experiencing a structural turnaround.

Jakarta’s property market is in the midst of a boom driving growth across both the sector’s residential and commercial segments. A combination of strong domestic demand, low interest rates and increased foreign investor confidence is thought to be behind the trend which is expected to continue during 2012, forming a key component of Indonesia’s economic growth.

While many markets struggled with debt and fall-out from the world economic crisis in 2011, Indonesia bucked global trends by recording its fastest rate of growth in 15 years. Buoyed by strong domestic demand and huge resource wealth, Indonesia’s economy grew 6.46% last year, making it a magnet for investors who have also been attracted by its macroeconomic stability.

Indonesia’s automakers are investing heavily in increasing and diversifying production to keep pace with rising demand in what is now South-east Asia’s largest vehicle market. Last year, Indonesia overtook Thailand to achieve the highest vehicle sales among ASEAN member states.

With GDP growth for 2011 expected to have hit more than 6% and home to a growing and savvy population, the future of Indonesia’s retail sector looks promising, though there are concerns that a recent influx of mall building has glutted the market temporarily.

Rising demand is expected to have seen consumer electronics sales in Indonesia reach IR28trn ($3.1bn) in 2011, according to the country's producers association. While the figure underlines healthy growth in the sector, industry leaders say improved incentives and better infrastructure could lead to faster progress.