Indonesia

Central to the exchange’s ambition of doubling market capitalisation by 2015 will be the new supply of shares from initial public offerings (IPO) and secondary rights issues. Recovering from a trough at the start of 2012, the frequency of Indonesian issuances has led the region alongside the Philippines, with a steady stream of smaller issues...

Labour relations emerged in 2012 as one of the key downside risks facing Indonesia. Already constrained by one of the world’s most restrictive labour laws, new rules in 2012 hiking the minimum wages in important industrial production areas and curbing the use of outsourced staff to circumvent rules on full-time employees have prompted protests from...

Although private equity (PE) has faced the challenges of lower leverage and poor image since 2008, Indonesia is attracting a growing number of foreign and homegrown dealmakers. “PE is drawn to Indonesia given the strong growth prospects,” Destry Damayanti, chief economist at Bank Mandiri, told OBG. “Given Indonesia’s still shallow financial sector,...

The top 15 lenders continue to be considered systemically important in Indonesia, controlling 74% of banking assets as of September 2012. The majority of the market is still controlled by the top 10, which held 65.4% of deposits, 64.1% of loans and 64.8% of bank assets in April 2012 according to Pefindo, a credit ratings agency. These shares rise to...

Investors have traditionally focused on the largest cities in Java, but as urbanisation and growth spread to more outlying regions in the last decade attention has broadened to provincial urban centres.

In the face of rapidly expanding consumer lending in recent years, Bank Indonesia (BI) raised down payment requirements for two- and four-wheel vehicles as well as mortgages from July of 2012. With credit ratings agencies forecasting a medium-term rise in non-performing loans (NPLs) from their record low in 2012, the regulator has also sought to act...