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As the top nickel producer globally in 2013, the second-biggest coal exporter in 2015 and host to one of the largest copper and gold mines in the world, Indonesia has the capacity to compete with the most prolific mining nations. However, this potential has not necessarily been translated into strong production figures in recent times, and the domestic mining sector has suffered markedly over the past three years due to deteriorating global commodity prices and, more specifically, slowing growth in China, the leading purchaser of Indonesia’s mineral and coal products. Efforts to increase downstream production should be supported by the state’s infrastructure investment programme, while any recovery in the current downturn in commodity prices will boost the industry’s outlook. This chapter contains an interview with Pandu Sjahrir, Chairman, Indonesian Coal Mining Association.

The world’s fourth-most-populous nation, Indonesia boasts unique cultures, World Heritage Sites, pristine beaches, unparalleled diving and some of the world’s rarest wildlife. Its tropical climate and balmy temperatures of between 28°C and 34°C in coastal areas with little variation from one season to the next, make the archipelagic nation an ideal beach holiday destination. Indeed, Indonesia should be one of the world’s leading tourist destinations, yet it has consistently ranked behind neighbouring Thailand and Malaysia in tourist arrivals. Since taking office in 2014, the government of President Joko Widodo has been working hard to change that. It has recognized tourism as a major pillar of economic growth and set a target of 20m foreign visitors by 2020, when the industry is expected to be Indonesia’s biggest source of foreign exchange earnings. This chapter contains an interview with Arief Yahya, Minister of Tourism.

The construction sector will likely be a bright spot in an otherwise subdued economic growth story in 2016, as the widening infrastructure gap and recent fuel subsidy reforms have driven a surge of new government spending into a massive public infrastructure programme. Despite recording moderate recent increases in sales and prices, residential growth has slowed from the double-digit heyday of 2011-13, while oversupply in the office market is beginning to weigh on prices and rental rates, particularly in Jakarta. A few bright spots stand out, however. The booming retail segment is expected to perform well in 2016 on the back of growing demand, while Indonesia’s secondary cities hold considerably high potential across all segments. This chapter contains interviews with Rizkan Chandra, President-Director, Semen Indonesia; and Eddy Hussy, Chairman, Real Estate Indonesia.

In terms of ICT connectivity, Indonesia is currently in the midst of a national transformation. Over the past decade the country has seen dramatic improvements in telecommunications availability; technology awareness and usage; investment in digital infrastructure by both the government and private sector players; regulatory oversight; and development planning. These trends have been driven by rapidly expanding demand for ICT products and services among the large population and thriving business community. Following on the heels of a challenging year in 2014, the ICT sector recovered somewhat in 2015 and the first half of 2016, primarily on the back of rising investments in data hosting services and e-commerce. On the telecoms side, late-2015 saw the rollout of 4G LTE high-speed data services by the country’s mobile operators. This chapter contains a viewpoint from Rudiantara, Minister of Communications and IT; and an interview with Nadiem Makarim, CEO, GO-JEK.

Now comprising a mix of traditional markets and modern retail outlets, Indonesia’s retail sector has been swiftly evolving since the late 1990s, when the country’s economic development began to accelerate. Gross national income per capita at current prices grew from $570 1999 to $3440 in 2015, more than a 500% increase over 15-year period, according to World Bank data. Fuelled by this economic explosion, a large domestic consumer base, second to none in South-east Asia, and a burgeoning middle class, the retail sector has emerged over the same time as a force in its own right and as a result has attracted substantial investment from domestic and international sources over the past decade and a half. This chapter contains an interview with Hadi Wenas, CEO, MatahariMall.com.

Historically, Indonesia’s industrial sector has long been content to target the low-hanging fruit of its sizeable captive domestic market for much of its output, while exporting primarily raw materials or low-value-added products abroad. But in line with the evolution of the country’s economy, a strategic shift has been accelerating over the past decade, which is aimed at diversifying the industrial manufacturing sector and deriving greater value from domestic resources, in addition to providing more and higher-quality jobs for the growing population. This chapter contains interviews with Ryamizard Ryacudu, Minister of Defence; Rosan Roeslani, Chairman, Indonesian Chamber of Commerce and Industry; Lee Kang Hyun, President, Korean Chamber of Commerce; and Simon Linge, President-Director, Bluescope Steel Indonesia.