Indonesia

It is certainly intensely competitive, but the size and growth potential of the Indonesian telecoms sector suggests that players that invest and innovate can enjoy considerable success.

Indonesia’s government is pushing forward with ambitious plans to reform the country’s health network, aiming to have a system of universal social health insurance coverage in place by 2014, though the project faces a number of challenges, not least of which are its sheer scale and cost.

Indonesia has set ambitious targets for tourism growth this year, as the country looks to realise its potential as a leading international destination for visitors and expand an important part of the economy.

The Islamic financial sector in Indonesia is hoping a mix of state-backed infrastructure projects and regulatory reforms will help the country’s sharia-compliant lenders to continue their rapid expansion, allowing the industry to realise its full potential and to come out of the shadows of other regional banking powers.

The need to relax rigid labour restrictions that enforce high severance pay and make it hard to fire staff is becoming a priority for Indonesia. With outdated employment laws affecting investor confidence and benefitting neither employers nor staff, the country is accelerating moves to update employment regulations.

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.