While still overwhelmingly a cash society, Indonesia has witnessed rapid growth in the number of credit and debit cards in circulation. The number of credit cards rose from 11m in 2008 to 15m by May 2012, expanding at 6.35% a year, and the number of cardholders is estimated at 4.3m for credit cards and 67m for debit cards in 2012, according to Bank...
As a net oil importer, Indonesia’s most pressing fiscal challenge remains its large subsidy bill, which at around 20% of the 2013 budget – some $30bn – accounts for as much spending as education. Although there is widespread agreement that the subsidies are wasteful and disproportionately benefit more affluent Indonesians – the World Bank estimated...
An upgrade of Indonesia’s sovereign credit rating by two of the three international ratings agencies in early 2012 was a watershed in the recognition of the country’s currently healthy investment outlook. Foreign investors, who are already the dominant players in the nation’s equity market and are growing in the bond segment, see significant...
THE COMPANY: Strong economic fundamentals are lending support to a positive view on Indonesia’s transportation services, specifically the car hire services industry in which Adi Sarana Armada (ASSA) is currently the second-largest player with an estimated 15% market share. The domination of corporate...
Since 2004, the Indonesian Banking Architecture (API) has framed the development of the sector and established resilient counter-cyclical safeguards that place lenders in a strong position to weather any possible shortfalls in economic conditions. Consolidation in the sector, an aim since the Asian financial crisis, has remained elusive. Amid...
Amidst Indonesia’s open capital markets the deterioration of the current account deficit (CAD) in 2012 was at the centre of investors’ concerns, weighing on the currency throughout the year. One of the main transmission mechanisms of the global economic slowdown on the Indonesian economy, the drop in exports was not matched by a slowdown in imports...
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