Indonesia Industry Articles & Analysis

Chapter | Mining from The Report: Indonesia 2018

Considered a powerhouse in the realm of mineral production, Indonesia’s mining sector has long served as a key pillar of economic expansion, acting as a significant contributor to GDP by attracting much-needed export dollars, while also creating employment opportunities across the nation’s diverse landscape. However, soft commodity prices, declining demand from China and regulatory changes...

With investment in industrial zones, SEZs, infrastructure and priority industries set to increase in the coming years, Indonesia remains extremely well positioned to capitalise on its position as a regional leader.

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While China’s decision to reduce coal production has pushed up prices more quickly than expected, local demand for coal in Indonesia continues to rise on the back of ambitious power generation targets. While the coal mining sector still holds much promise for the nation, a lack of coordination between the central and regional governments has...

 

Considered a powerhouse in the realm of mineral production, Indonesia’s mining sector has long served as a key pillar of economic expansion, acting as a significant contributor to GDP by attracting much-needed export dollars, while also creating employment opportunities across the nation’s diverse landscape. However, soft commodity prices,...

 

What is your view of the challenges facing the expansion of industrial activity in Indonesia?

 

With expansion being driven by its low-cost workforce, the progress of Indonesia’s manufacturing segment has bolstered employment figures over the years, providing 15.5m jobs and contributing 20.5% to GDP in 2016. With increased investment across a variety of subsectors, employment in the manufacturing sector is expected to grow by 5% in 2017...

 

What is the overall growth potential for the consumer goods sector in the near future?

 

Even though Indonesia’s government has implemented a range of measures that seek to foster growth in the manufacturing sector – including enhanced investment incentives and the development of industrial zones – small businesses remain challenged by several fundamental structural issues that hinder their ability to access credit.