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Already one of the fastest-growing major capital exchanges in the world, Indonesia’s equity and bond markets saw increased activity in late 2016 and early 2017 after a lacklustre performance in 2015. This recent resurgence is based on the country’s strong economic fundamentals and aided by short-term trends which saw a recovery in commodity prices, increased government infrastructure spending and improved liquidity at home as a result of the government’s tax amnesty programme. Consequently, the Indonesia Stock Exchange (IDX) continues to grow more quickly than the majority of markets in developed and developing economies – not just in Asia, but around the world. This chapter contains an interview with Loh Boon Chye, CEO, Singapore Exchange.

With a population of over 250m and the fourth-largest economy in Asia, Indonesia is one of the world’s biggest potential banking markets. Growth in profitability, loans and assets has been stronger than in other ASEAN countries, although an economic slowdown in 2015 and early 2016 curbed sector growth before an upswing in 2017. The Indonesian market has historically been – and continues to be – highly profitable in comparison to more developed economies. The banking sector still offers plenty of untapped potential and room for competition, leaving opportunities for higher margins and new product development. This chapter contains interviews with Kartika Wirjoatmodjo, President Director, Bank Mandiri; Jahja Setiaatmadja, President Director, BCA; Suprajarto, President Director, Banks Rakyat Indonesia; and Batara Sianturi, CEO, Citi Indonesia; and Chairman, International Banks Association of Indonesia.

Given Indonesia’s diversity, the country’s regional policy is crucial to sustainable progress. In the past, under Jakarta- and Java-based regimes, centralisation was seen as the best way forward. The post-Suharto era, however, has seen Indonesia move away from this concentration of power towards an approach that seeks to distribute authority and investment more evenly throughout the country’s many diverse regions. While this policy has not always lived up to expectations, it has seen a greater flow of investment into Indonesia’s second-tier cities, opening up new opportunities for investors. This chapter contains interviews with Tri Rismaharini, Mayor of Surabaya; and Sri Sultan Hamengku Buwono X, Governor, Yogyakarta Special Region.

Macroeconomic growth gained momentum in 2017 on the back of improved global commodities prices, increased foreign direct investment and robust domestic consumption. Although the country has not yet returned to the near-6% average annual GDP growth recorded in the five years leading up to 2012, its macroeconomic fundamentals remain robust, with an improved current account balance and a sweeping tax amnesty programme supporting a recent sovereign credit rating upgrade. New sovereign and corporate bond issuance will help fund Indonesia’s substantial infrastructure agenda over the medium term, providing a critical finance channel for infrastructure development stakeholders. This chapter contains interviews with Jim Yong Kim, President, World Bank Group; and Hiroshige Seko, Minister of Economy, Trade and Industry of Japan.

Consistent, robust economic growth, a 255m-strong population and a favourable position as South-east Asia’s largest economy have driven Indonesia to become an increasingly important actor in global trade. The country’s trade with the US and China has recorded double-digit growth in recent years, and it stands as the largest market for intra-ASEAN investment, with middle-class expansion and a steady rise in domestic consumption expected to keep it at the forefront of the ASEAN trade agenda. This chapter contains interviews with Thomas Lembong, Chairman, Indonesia Investment Coordinating Board; and Shinta Widjaja Kamdani, CEO, Sintesa Group.