Indonesia

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Even though Indonesia’s government has implemented a range of measures that seek to foster growth in the manufacturing sector – including enhanced investment incentives and the development of industrial zones – small businesses remain challenged by several fundamental structural issues that hinder their ability to access credit.

 

Indonesia has a significant and growing shortfall of affordable housing. Existing supply is in poor condition, with rising demand for new units set to push the deficit beyond 15m units in 2018. Rising urbanisation is exacerbating the problem, and more than one-fifth of the urban population is now living in slums, presenting a major challenge...

 

What segments are driving growth in the sector?

 

As of late 2016 Indonesia had overall internet penetration of 51.8%, according to data from the Indonesian Internet Service Provider Association (APJII). This rate is up substantially from as recently as 2013, when the penetration rate was estimated at well under 30%. The rapid jump in usage is the result of an increase in smartphone ownership...

 

There is little doubt that Indonesia’s burgeoning e-commerce industry has high growth potential: the Ministry of Information and Communications Technology estimates the segment could reach a value of $130bn by 2020, which would make it the third-largest e-commerce market in Asia behind China and India. As the fourth-most populous country in...

 

In the wake of pro-business reforms and infrastructure development commitments, some of the world’s largest retailers have been expanding their presence in Indonesia. At the same time, the continued liberalisation of the sector has brought decreased levels of risk and increased market penetration. Today, Indonesia is home to a mix of modern...

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