The pulp and paper industry is one of the most successful sectors in Indonesia. It has been growing steadily since the late 1980s, generates almost $6bn in exports, accounts for about 1% of the country’s GDP and employs about a quarter of a million people. The sector has been a vital part of the Indonesian success story, in particular because of how...
The retail market in Indonesia has always had a strong luxury component. It is a country with many elites and super-wealthy, and global brands have been there to cater to them. What is happening now is altogether different and potentially more promising. The lower-upper and the upper-middle sections of the wealth spectrum are growing as the country...
The textile industry has been struggling with a number of problems. Wage rates are increasing and competition, especially from China, is rising dramatically. Furthermore, Indonesia’s main markets in the West are weak as the recession drags on in some places and consumers cut back. And the US has given preferential rights to some of Indonesia’s...
After a decade-plus of going nowhere, the value of real estate and rental rates are rising so fast that Jakarta has been identified by PwC and the Urban Land Institute as the most promising property market in the region in 2013. Many forces are at work, some short term and others more long term and significant.
In order to compensate for the inevitable decline of domestic oil production and supplement coal supplies, Indonesia is increasingly leaning on its natural gas reserves to satiate a growing energy appetite and boost export revenues. With production rates steadily increasing over the past decade and more fields expected to contribute in the near...
Many countries in Asia have historically had weak property rights, outright restrictions on foreign ownership, or both. However, most have a strong bias toward property investment, and often view the health of the real estate market as an indicator of overall economic well-being. The result is a patchwork of regulations from Jakarta to Beijing that...
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