Since the policy of decentralisation was enacted in 2011, the country’s central government has ceded increasing amounts of control, both budgetary and political, to its provinces. However, the island of Java and the country’s metropolitan capital, Jakarta, remain the main source of Indonesia’s economic power. As a result, efforts are being made to equalise and support growth and investment in...
As a major contributor to the country’s economy as well as a vital part of Indonesia’s future development, the construction sector today faces some major responsibilities and challenges. The segment has experienced continuous growth in recent years on the back of economic and population expansion, while also seeing an enlargement of its expertise and overall capability, with foreign...
2014 was a challenging year for Indonesia’s telecommunications sector, as operators faced fierce competition and market saturation, and average revenue per user (ARPU) continued to decline. The IT sector, however, showed promising growth, which is expected to continue on the back of the burgeoning data centre, cloud computing and e-commerce segments, with an increasing number of private...
Home to a growing base of consumers, Indonesia has seen the rising purchasing power of its fast-expanding middle class drive the retail industry to new highs in recent years. Foreign and domestic retailers alike are investing heavily in new construction and expansion projects that will see traditional retail models increasingly supplanted by modern franchises and chains. Although retail could...
Industrial development is perhaps the most important pillar of Indonesia’s long-term economic expansion strategy, and the nation has made significant economic strides in recent years as a result of its fast-expanding industrial sector. The country is now poised to outpace Thailand and Malaysia as a major regional manufacturing and export hub, and investors are increasingly choosing Indonesia...
With the new administration under Joko Widodo committed to spending a greater share of the budget on improving the nation’s transport infrastructure and moves under way to provide an enhanced organisational and administrative framework for the sector, there is a new sense of energy with regards to transport in Indonesia. Indeed, with logistics costs equivalent to around 27% of GDP, efforts to...
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