In its first year in power, Indonesia’s new government has launched a major drive to boost the nation’s transport, power and water infrastructure. The administration in Jakarta is taking a leading role in helping to overcome the challenges facing the industry, and the private sector has been given a clearer, more efficient legal and administrative framework within which to operate. Many of the...
After years of treading water, Indonesia’s energy sector is finding new optimism in the fresh faces being appointed to key government positions by the new president, Joko Widodo, with the hope that they will be able to renew investor interest in the industry and spur a wave of development. The changes at the top come at a critical time, as myriad factors continue to buffet the sector in...
The Indonesian banking sector continues to strengthen after a lengthy period of expansion. Business remains sound with sufficient capital to support credit growth, and the regulatory environment setting up the industry for further expansion. Questions about consolidation and foreign participation remain, and the structure of the sector going forward is a matter of debate. Economic concerns...
Early moves made by the government of the new president, Joko Widodo, appear to be helping the economy considerably, especially on the FDI side. With the application of the right policies, the country could return to growth above 6%, and perhaps eventually reach the 7% target set by the new president. Indonesia is working off a sound economic base. The decline in GDP growth has been stopped,...
With full-year realised foreign direct investment (FDI) hitting a new record in 2014, Indonesia’s trade and investment flows have improved considerably over the last 10 years. The capital account deficit was brought back under 3% that year, and at the end of 2014 and in early 2015 the country reported a trade surplus after years in the red. Due to stronger economic growth and new policy...
With the July 2014 election of a new president, Joko Widodo, a new mood of confidence and optimism is palpable in Indonesia, the world’s third-largest democracy and most populous Muslim-majority nation. Hopes are high that a new dynamism in Jakarta will see many long-standing challenges addressed. At the same time, the country’s economic expansion is continuing apace, with a large, young...
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