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...
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Articles & Analysis | Education seen as the key to more skilled workers and wealthier consumers in Indonesia from The Report: Indonesia 2015
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 (...
Interviews & Viewpoints | Franky Sibarani, Chairman, Indonesia Investment Coordinating Board (BKPM): Interview from The Report: Indonesia 2015
It is argued that new investments should help position Indonesia as a production base, rather than an expansion market. Will this be a focus for BKPM?
Articles & Analysis | Foreign banking regulations in Indonesia seek to protect local institutions from The Report: Indonesia 2015
In an effort to protect its domestic banking industry from foreign competition, the Indonesian government has imposed restrictions on foreign banks operating in the country, introducing ownership restrictions in 2012, and drafting new regulations that would oblige foreign banks to become locally incorporated entities. The nation’s banking sector has been criticised as too...
Interviews & Viewpoints | SD Darmono, President-Director, Jababeka: Interview from The Report: Indonesia 2015
How can private, local firms help address investment obstacles and boost foreign direct investment (FDI)?
Articles & Analysis | Indonesia's trade ties with Japan have expanded in recent years from The Report: Indonesia 2015
Indonesia’s trade ties with Japan have shown tremendous growth in recent years, with Japan now its second-largest source of investment and second-largest trade partner, despite a decline in investment in 2014. Bilateral ties are expected to grow on the back of new opportunities in manufacturing, defence and energy, although a persistent trade imbalance between the two has led...