The country’s urban areas have grown rapidly in recent decades, with Jakarta’s population more than doubling since the 1970s, driven by an influx of rural migrants seeking better opportunities. This growth has not been without consequences, as municipal governments struggle to absorb new residents, and infrastructure and employment gaps pose significant challenges to smooth...
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Articles & Analysis | Infrastructure investment works to keep pace with Indonesia's rapid urbanisation from The Report: Indonesia 2015
Interviews & Viewpoints | Bambang Brodjonegoro, Minister of Finance: Interview from The Report: Indonesia 2015
How will the government prioritise the reallocation of savings from the fuel subsidies cut to address the country’s economic weaknesses?
Articles & Analysis | Competition between China and Japan should benefit Indonesia from The Report: Indonesia 2015
The rising attractiveness of Indonesia as a regional destination for foreign direct investment (FDI) has been highlighted by its growing trade relationship with China, with leaders from both nations announcing over $60bn in potential new investments and financing in early 2015. Indonesia’s planned wave of national infrastructure projects is expected to gain from competition...
Articles & Analysis | Indonesia building an industrial base from The Report: Indonesia 2015
Indonesia is currently in the process of transforming from a resources- and consumption-based economy to a more manufacturing- and investment-oriented one, working to build an industrial base that will allow it to reduce its dependence on imports and keep more value within the economy. It is a vital transition, one that recognises the new realities of the global economy and at...
Articles & Analysis | Education seen as the key to more skilled workers and wealthier consumers in Indonesia from The Report: Indonesia 2015
The burgeoning middle class has been a crucial growth driver for Indonesia over the past decade, helping mitigate investment risks and solidifying the foundation of economic growth. Expansion of this demographic is expected to continue, driving urbanisation and expanding a consumer class that will bolster growth across a range of sectors. However, incomes are still...
Articles & Analysis | Restoring investor confidence in Indonesia from The Report: Indonesia 2015
Indonesia’s GDP growth rate has been slowing for a number of years, falling from 6.5% in 2011 to 5% in 2014 and 4.7% in first-quarter 2015 – the lowest rate since 2009. From third-quarter 2014 to fourth-quarter 2014 the economy contracted 2%, and then in January 2015 the country experienced deflation of 0.2%, according to Bank Indonesia (BI). Foreign direct investment (...