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Analysis

Government initiatives target wider broadband coverage in Indonesia
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The government is moving to boost internet usage via an ambitious five-year broadband plan. Acting as one of the country’s first IT blueprints, the plan targets expanding internet access to the most remote rural areas, enhancing e-services across a number of sectors and improving network performance nationwide. The plan has been welcomed by citizens, especially those outside of Java, where infrastructure…

Analysis

Indonesia's new regulations expanding opportunities for foreign property ownership
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With the sector booming and many more projects still to come as part of Indonesia’s drive to boost its infrastructure, foreign companies are also looking to take a slice of the country’s construction pie. In the past, entering the local market was sometimes considered challenging, but today moves to boost foreign ownership limits and major regional changes are easing the path to the Indonesian…

Analysis

Collaboration between the state and private sector helping to finance construction projects in Indonesia
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Despite the major war chest of state funding Indonesia’s government has assembled from fuel subsidy cuts and other revenue raisers, Jakarta is still short of meeting the financial targets necessary to fund its ambitious infrastructure roll out. Finding ways to bridge the gap is thus a key point of discussion in the state capital. That said, one major way to meet this challenge that has already been…

Analysis

Benefits and drawbacks to slowing development of shopping centres in Indonesia
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Following concerns that a boom in the construction of retail malls was causing increased congestion, as well as threatening the livelihoods of many smaller retail operators, in 2011 Jakarta’s then-governor Fauzi Bowo initiated a moratorium on further mall building. Since then, this moratorium has been renewed by his successors. The freeze on mall development has had a major impact on the modern retail…

Analysis

Indonesia's affordable housing schemes providing a step up
OBG
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Unlike other global economies, Indonesia largely surfed over the 2008-09 financial crisis, with the economy bucking Western trends and going into a strong, expansionary mode – chalking up 6.5% GDP growth in 2011 and over 5% growth in the years since. This came in the wake of strong economic growth in the years prior to 2008 as well, leaving the Indonesian per capita income in 2013 at a level five…

Analysis

Transport infrastructure a key part of Medan's development plans
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The capital of North Sumatra, Medan, is the fourth most populous city in Indonesia and the largest city outside of Java. Located on the Deli River, which flows into the Straits of Malacca, its trading port has made it a strategic location for most of its history, as well as a gateway to the island of Sumatra. Remnants of architecture reflect Medan’s Dutch colonial past, with City Hall, an iconic…

Analysis

Altering Bandung's landscape
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The capital of West Java, Bandung, is cool. Not only does it sit at a high altitude and have low average temperatures – 700 metres above sea level and 23°C, respectively – it is also a centre for education, culture and technological innovation. Some 60% of Bandung’s 2.4m people are younger than 40 and they are the main drivers of the city’s so-called “creative economy”, as entrepreneurs…

Analysis

Cultivating safety in Indonesia's Surabaya
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Surabaya, on the island of Java, boasts a population of nearly 3m, but the population of Greater Surabaya is estimated at more than 10m, making it the second-largest city in Indonesia. In addition to its size, Surabaya is the birthplace of Sukarno, the country’s founding father and first president, and home to one of the busiest ports in South-east Asia. “We managed to become a city with the second-highest…

Analysis

Lower commodities prices and regulations pressuring Indonesia's coal industry
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Though Indonesia was not a major coal exporter until well into the 1990s, the country’s coal producers have made up for lost time by rapidly boosting their shipments. Along the way, they have ascended to the top spot in the seaborne coal hierarchy, surpassing Australia in 2011 and maintaining the lead position through boom and bust cycles. Rich in carbon deposits distributed across the country,…

Analysis

Indonesia's tourism sector to benefit from increased purchasing power of the middle class
OBG
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While Indonesia has long had a small and extremely wealthy elite, the steady economic growth and political stability that followed the departure of President Suharto and the Asian Financial Crisis in 1998 has lifted millions of people out of poverty and created a new middle class. The number of Indonesians in this category rose by 40% between 2003 and 2010, according to former minister of finance,…