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Indonesia’s transport sector is in the midst of a major overhaul, with government investment in infrastructure set to hit an all-time high, driven by new projects. All segments in the sector are set to benefit from a far-reaching infrastructure development agenda, with plans to construct 2500 km of new highway to complement ongoing upgrades across Indonesia’s vast network of ports and airports. Perhaps most promisingly, 2015 saw solid progress towards the delivery of a national rail network, with the signing of a new agreement for a high-speed link on Java, although land acquisition continues to pose challenges, raising doubts as to whether the project will be completed on time and within budget. At the same time, public funding is still insufficient to meet its long-term infrastructure goals, opening a host of new opportunities to foreign investors, with the government moving to revise its negative investment list to permit increased foreign participation. This chapter contains interviews with Elfen Goentoro, President-Director, PELNI; and Bambang Tjahjono, President-Director, AirNav Indonesia.

When Joko Widodo rode to power on a wave of pro-business rhetoric in Indonesia’s 2014 presidential election, a key plank of his economic development platform was rooted in shoring up the country’s outdated and inadequate infrastructure. Now firmly entrenched at the country’s helm, the Widodo administration is going to significant lengths to make good on these campaign promises by channelling an unprecedented amount of funds into domestic infrastructure projects. The spending spree began with the addition of Rp112.4trn ($8.2bn) in the 2015 supplementary national budget, which was earmarked specifically for infrastructure outlays. This represented a 39% increase over the 2014 budget, funded largely by fuel subsidy savings made possible in part by the drop in oil prices at the time. These additional funds are being dispersed far and wide, spread across projects in oil and gas, power, water supply and waste treatment, roads, urban transport, rail, ports and airports. This chapter contains interviews with Basuki Hadimuljono, Minister of Public Works and Public Housing; and Emma Sri Martini, President-Director, PT Sarana Multi Infrastruktur.

Development of Indonesia’s energy sector to meet rapidly rising demand and sustain economic growth is arguably the most daunting challenge facing the administration of President Joko Widodo. A combination of economic growth, increased urbanization and cheap energy supplies, resulting from fuel and electricity subsidies, has led to sharp demand growth. Total primary energy consumption has risen by 70% over the last decade, while electricity demand growth has exceeded annual GDP expansion over the same period. At the current rate of economic growth, demand for energy is forecast to rise by around 7% per year, while electricity demand is expected to grow by upwards of 8% per annum over the next decade, according to the Ministry of Energy and Mineral Resources. This chapter contains an interview with Amien Sunaryadi, Chairman, SKK Migas; and a roundtable with Heru Dewanto, President-Director, Cirebon Power; Roberto Lorato, CEO, Medco Energi Internasional; and Garibaldi Thohir, President-Director, Adaro Energy.

With strong premiums growth in recent years, a liberal investment environment and a low penetration rate, Indonesia’s insurance sector is poised for a period of rapid expansion. A slight market slowdown in 2013-14 – due in large part to regional economic volatility – appears to have reversed course in the first half of 2016, with positive implications for the country’s insurers, particularly its major players. As of June 2015 – the most recent date for which data was available – Indonesia was home to 129 policy underwriters, including 50 life insurers and 79 non-life insurers. Additionally, at this time the market was made up of five reinsurance companies, 161 insurance brokers and 35 reinsurance brokers. This chapter contains an interview with Yasril Rasyid, President-Director, Reasuransi MAIPARK Indonesia; and Chairman, Indonesian General Insurance Association.

With rising levels of public participation, a robust regulatory framework and high profitability at most institutions, Indonesia’s banking sector performed strongly in 2015-16, building on nearly a decade of expansion and rapidly increasing returns. The sector comprises 118 commercial banks and more than 1600 rural regional banks – the latter of which are allowed to operate only in a relatively small, predetermined geographical area. The industry boasted combined assets of Rp6198.15trn ($452.5bn) at the end of January 2016, the majority of which were held in a handful of leading institutions. This chapter contains interviews with Kartika Wirjoatmodjo, President-Director, Bank Mandiri; Asmawi Syam, President-Director, Bank Rakyat Indonesia; and Batari Sianturi, CEO, Citi Indonesia, and Chairman, International Banks Association of Indonesia.

With rising levels of public participation, a robust regulatory framework and high profitability at most institutions, Indonesia’s banking sector performed strongly in 2015-16, building on nearly a decade of expansion and rapidly increasing returns. The sector comprises 118 commercial banks and more than 1600 rural regional banks – the latter of which are allowed to operate only in a relatively small, predetermined geographical area. The industry boasted combined assets of Rp6198.15trn ($452.5bn) at the end of January 2016, the majority of which were held in a handful of leading institutions. This chapter contains interviews with Kartika Wirjoatmodjo, President-Director, Bank Mandiri; Asmawi Syam, President-Director, Bank Rakyat Indonesia; and Batari Sianturi, CEO, Citi Indonesia, and Chairman, International Banks Association of Indonesia.