Overview

Growth mode: New opportunities and rising demand lead to sector expansion
OBG
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While still small compared to its potential, Indonesia’s insurance market is attracting global underwriters and reinsurers. Only 6% the size of China’s market, according to SwissRe – at roughly Rp147trn ($14.7bn) in combined life and non-life premiums in 2012 – Indonesia’s market has sustained annual growth of over 20% in premiums and 26% in assets over the past five years, according to the…

Overview

Diversification under way: Hydrocarbons remain a key contributor to the economy, but the energy mix is steadily broadening
OBG
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The nation’s vast territorial expanse and established presence of experienced, well-financed international and domestic oil firms has led to the discovery and exploitation of a succession of sizeable oil and gas projects across the country for more than 125 years. Lured by attractive production contracts, considerable remaining reserves and strong energy prices, the country more recently has managed…

Overview

Moving into gear: Key changes to the legal framework buoy the sector’s prospects
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Buffeted by volatile global commodity prices and legislative uncertainty at home, Indonesia’s mineral output has fluctuated considerably in recent years. After recovering from a commodity price slump starting in 2008, the sector picked up steam in 2011, in part due to rising demand from emerging economies, resulting in higher levels of both prices and output for Indonesia. These gains proved short…

Overview

Back on track: Leveraging strengths to resume upwards trends
OBG
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Indonesia has all the makings of an industrial powerhouse: a young and talented population, relatively cheap labour and a large domestic market. The country has the capacity and the conditions to develop industry, specifically export-oriented industries. Manufacturing is also vitally important to Indonesia. Without it and without its growth, the country will have a difficult time addressing its current…

Overview

A favourable environment: Strong fundamentals are driving market expansion
OBG
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Rising capital values, favourable interest rates and strong demand have created a favourable environment for Indonesia’s real estate sector, which posted impressive expansion numbers in 2013. While the US and EU have struggled with the lingering effects of the global financial crisis, South-east Asia has powered on, with Indonesia topping the list of the world’s fastest growing luxury real estate…

Overview

Still growing: Infrastructure plans and demand for property drive the sector forward
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Increased government investment in infrastructure has helped to unleash a boom in Indonesia’s construction sector. With rapidly growing demand for residential real estate, office buildings, industrial estates and other property across the archipelago, the construction sector is tagging along for the ride. The Indonesian Contractor’s Association (AKI) noted an increase in the construction and building…

Overview

Middle class reconsidered: New highs and lows for both the sector and consumers
OBG
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A fast-growing middle class in Indonesia means more malls, products and higher sales. Recent numbers appear to demonstrate that this very dynamic, which has been heavily discussed and promoted over the past few years, was in fact holding in the country. After some signs of weakness in the middle of 2013, the retail market came roaring back with a string of strong indicators: retail sales were up 11.4%…

Overview

All down the line: An internet-literate populace provides solid foundations for IT growth
OBG
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While much IT-related activity in Indonesia is very basic, it is on a large scale and is growing rapidly. A density of use is being attained that is driving profitable advances. Significant development is also being seen at the business and enterprise level, suggesting that technology is starting to take root in the economy. Questions remain about infrastructure, inclusiveness and local development,…

Overview

By land or by sea: Private sector involvement could help integrate the transport network
OBG
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For an archipelago spread over 17,500 islands and spanning 5000 km from west to east, the need for Indonesia to have an efficient transport network that seamlessly integrates sea, land and air transport systems is manifestly evident. The transport sector is the backbone of the economy, accounting for more than 40% of overall infrastructure investment. Yet Indonesia fares poorly when it comes to the…

Overview

A change in focus: Plans are under way to expand access to utilities, boost the power supply and diversify the energy mix
OBG
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A result of decades of underinvestment, creaky infrastructure has long been the Achilles’ heel of the Indonesian economy. The archipelago has not been able to build the hard infrastructure essential for sustaining growth. The World Economic Forum’s “Global Competitiveness Report 2013-14” ranked Indonesia 61st out of 148 countries for the state of its infrastructure, and improvements have not…