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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 and traditional retail outlets, with an uptick in e-commerce activity, which is both advancing the growth of the modern retail sector and creating new opportunities for entrepreneurs. This chapter contains interviews with Hans Prawira, President Director, Alfamart; Kusumo Martanto, President Director, BliBli.com; and Florian Holm, CEO, Lazada Indonesia.

As the largest economy in South-east Asia and the 10th-largest worldwide in terms of purchasing power parity, Indonesia’s vastly expanding middle-income base has enticed an influx of international manufacturers over the years. These factors have allowed the sector to perform well over the last decade, despite the global economic slowdown in consumption. Industry has long served as a vital engine of growth for the Indonesian economy, and it continues to play a pivotal role in the development of the business climate. This chapter contains interviews with Airlangga Hartarto, Minister of Industry; Rosan Roeslani, Chairman, Indonesian Chamber of Commerce and Industry; and Hemant Bakshi, President Director, Unilever Indonesia.

Road, port, airport and rail upgrades are a critical priority for the government of President Joko Widodo, with his administration having overseen an infrastructure and transport spending surge since taking office in 2014. The main aims of this increased resource allotment are to lower transportation costs – which are among the highest in South-east Asia – reduce congestion, and improve the sector’s business and investment climate. Progress is being made on all fronts, and infrastructure spending is forecast to hit a record high in 2017. This chapter contains interviews with Elvyn Masassya, President Director, Pelabuhan Indonesia II; and William Sabandar, President Director, Mass Rapid Transit Jakarta.

An infrastructure boom is under way in Indonesia, after the administration of President Joko Widodo committed to developing $414.6bn of new public works projects between 2015 and 2019, including large-scale transportation, utilities and ICT projects, as well as new schools, hospitals, and water supply and treatment plants. In recent years the government has mobilised a coordinated effort to deliver planned projects, with dozens of state actors collaborating to develop new infrastructure policy, including an organised framework for public-private partnerships, new finance models and risk management reforms. Public expenditure on infrastructure is expected to hit a historic high in 2017. This chapter contains interviews with Bambang Brodjonegoro, Minister of National Development Planning; and Jin Liqun, President, Asian Infrastructure Investment Bank.

Once a key pillar of the Indonesian economy, the energy sector has declined in influence as oil and gas production has fallen. The hydrocarbons segment, which is valued at an estimated $20bn, contributed 3% to state revenues in 2016, down from 14% in 2014 and 25% in 2006. Yet the value of Indonesia’s energy sector cannot be reduced to its direct contribution to national GDP, as the power and oil and gas sectors remain a critical component of the infrastructure necessary to sustain economic growth across every other industry. This chapter contains an interview with Garibaldi Thohir, President Director, Adaro Energy.

Indonesia’s economy and, with it, the financial services sector, has experienced growth since 2015, spurring demand for a diverse portfolio of insurance products. Life insurance is the dominant segment, accounting for nearly two-thirds of the sector, but demand for general insurance products has risen in recent years. Growing interest has been driven by a number of factors, including successful education efforts by the public and private sector, leading to rising awareness of insurance products among different demographics. Prudent investment practices, the overall strength of the national economy and more robust reinsurance coverage has also led to a trend of increased uptake. This chapter contains interviews with Ben Ng, President Director, AIA Financial Indonesia; and Jens Reisch, President Director, Prudential Indonesia.