Asia Financial Services

Indonesia’s insurance sector stands out as the fastest growing and most promising in South-east Asia, within a region that’s largely seen as the most attractive for the world’s major underwriters. Supported by rapid economic expansion spurred by domestic consumption in the past decade, the sector has averaged a compound annual growth rate of 20% in gross written premiums and 26% in assets since...

Indonesia’s domestic exchange is dominated by foreign investors motivated by capital gains. Less than 1% of the local population invests in Indonesia’s exchange, and those that do tend to prefer buy-and-hold strategies. Corporations have expanded their bond offerings amid a favourable market of low interest rates, high demand and a risk-free government yield curve. While the government works to...

Banking institutions currently account for around 77% of financial sector assets, while the sector’s overall penetration rate remains among the region’s lowest. The banking market remains highly fragmented, with 120 commercial lenders in 2012, alongside a much larger number of smaller institutions. Amidst rapid loan growth, average default rates for the country have dropped to historically low...