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Indonesia's new government serves as a catalyst to jumpstart the infrastructure sector
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Marking 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. As a result,…

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Power projects under way in the energy sector to meet Indonesia's rising demand
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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 Indonesia,…

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Plans to expand rail and ports in Indonesia
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With the new administration of President Joko Widodo committed to spending a greater share of the budget on improving the nation’s transport infrastructure and moves under way to provide an enhanced organisational and administrative framework for the sector, there is a new sense of energy with regards to transport in Indonesia. Indeed, with logistics costs equivalent to around 27% of GDP, any efforts…

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Supporting expansion of industry in Indonesia
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Industrial development is perhaps the most important pillar of Indonesia’s long-term economic expansion strategy, and the nation has made significant economic strides in recent years as a result of its fast-expanding industrial sector. The country now is poised to outpace Thailand and Malaysia as a major regional manufacturing and export hub, and investors are increasingly choosing Indonesia over…

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Consumer confidence boosting domestic consumption in Indonesia
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Home to a growing base of consumers, Indonesia has seen the rising purchasing power of its fast-expanding middle class drive the retail industry to new highs in recent years. Foreign and domestic retailers alike are investing heavily in new construction and expansion projects that will see traditional retail models increasingly supplanted by modern franchises and chains. Retail growth slowed somewhat…

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ICT industry expects stronger results as new services come on-line in Indonesia
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Despite its strong long-term growth prospects, 2014 was a challenging year for Indonesia’s telecommunications sector, as operators faced fierce competition and market saturation, while average revenue per user (ARPU) continued to decline. The IT sector, however, showed promising growth, which is expected to continue on the back of the burgeoning data centre, cloud computing and e-commerce segments,…

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Higher budgets and major plans to expand Indonesia's construction sector
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As a major contributor to the country’s economy, as well as a vital part of Indonesia’s future development, the construction sector today faces some major responsibilities, as well as major challenges. The segment has experienced continuous growth in recent years on the back of economic and population expansion, while also seeing an enlargement of its expertise and overall capability – with foreign…

Overview

Harun Hajadi, Managing Director, Ciputra; and Ervan Adi Nugroho, President-Director, Paramount Enterprise: Interview
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Interview: Harun Hajadi, Ervan Adi Nugroho Which of Indonesia’s real estate subsectors will underpin growth in 2015 and 2016? HARUN HAJADI: There are still many big cities in Indonesia where residential property development is lacking. Planning and implementing projects in these areas will help drive sector growth moving forward. At the same time, as the new government looks to promote and develop…

Overview

Driving higher demand for property in Indonesia
OBG
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After showing substantial growth across the board in recent years, the Indonesian real estate market began a period of consolidation in late 2014 that is likely to last throughout 2015. This slow down in price rises has been broadly welcomed, however, as indicative of a maturing of the sector as it heads off previous fears of over heating. Despite the slower pace overall, residential and industrial…

Overview

Reducing tensions between regions and rural and urban settings in Indonesia
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Since the policy of decentralisation was enacted in 2011, the country’s central government has ceded increasing amounts of control, both budgetary and political, to its provinces. Local governments have thus seen their remit expanded to include almost every aspect of public life, and their authority to chart the course of their regions’ growth is almost unlimited. However, the island of Java and…