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Consolidate to accumulate: A reduction in the number of players could help shore up ARPU
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In some ways, little has changed in Indonesian telecoms over the past year. The country still has eight operators and average revenue per user (ARPU) is still among the lowest in the world because the market is so crowded. In other ways, everything has changed. Mergers are in the works and the market is poised for consolidation. Once the number of providers is reduced to seven, it is expected that…

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A day in the sun: Changes to the tourism offering could see big gains in the medium term
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Boasting some of the world’s greatest biodiversity and dynamic landscapes, Indonesia has long been a popular destination amongst tourists. The appeal lies in experiencing life on one of the country’s 17,000 islands, sampling the famous South-east Asian gastronomy, or seeing the orangutan and Komodo dragon in their natural habitats. After oil and natural gas, palm oil, coal and rubber, tourism…

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All change: Plan to provide universal care has opened up a host of opportunities
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While Indonesia has traditionally had limited resources to commit to health, it has provided a decent basic service to its citizens. According to the World Health Organisation (WHO), the country has an adequate level of primary care, delivered through both health centres and sub-centres. Indonesia has faced significant setbacks in the past, but it has made real progress in health care provision, and…

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Keeping the ball rolling: Efforts to boost efficiency and sustainability are under way
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Tasked with providing sustenance for the country’s nearly 250m citizens while contributing a steady stream of export revenue, the Indonesian agriculture sector remains an indispensable industry with an influence that extends across a broad spectrum of the social, economic and political landscape. The country’s vast territory combined with favourable soil and climactic conditions have given rise…

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Subjects of change: The government’s top-down initiatives are proving a challenge
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The Indonesian educational system is large, well funded, fast growing and quickly improving. Despite some difficult years as a result of the 1997-98 Asian financial crisis and some ineffective policies instituted in its aftermath, the government has made a significant commitment to the sector. Both the central and local authorities are required to spend at least 20% of their budgets on education. This…

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Evolving environment: Changes to the tax system and regulations for potential investors
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The Indonesian tax system continues to evolve but for several years has been mainly based on three primary tax laws: the General Tax Provisions and Procedures Law, the Income Tax Law, and the Value-Added Tax (VAT) and Luxury Sales Tax (LST) Law. These tax laws are routinely amended to accommodate the country’s rapidly changing business environment and support the government objectives of improving…

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Facts for visitors: Useful information for first-time visitors
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Etiquette A handshake is usually the first introduction in a business setting and is used for both greeting and farewell. It is recommended that men be addressed as Pak (equivalent to Mr) and women as Ibu (Mrs). Visitors should try to use the right hand when giving money and objects to others. Visitors are expected to show respect toward religion, culture and local values. One may hear oneself being…

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Fighting corruption: Strengthening the system for the sake of the whole
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In terms of corruption, Indonesia performs poorly. In 2012 Transparency International ranked Indonesia 118th out of 176 countries, with a Corruption Perception Index score of 32 on a scale of 0-100. Endemic and systematic corruption is a major factor hindering development and is a bane to foreign investment. Corruption has been responsible in crafting pandemonium in Indonesia, not only from an economic…

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Here be dragons: The many attractions of the Komodo National Park
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Throughout his trip to Europe at the beginning of 2013, President Susilo Bambang Yudhoyono was intent on promoting Indonesia as a “complete tourism destination” with a host of interesting and unique places to offer other than Bali. Komodo National Park is such a destination and one which has escaped the attention of many tourists. While more mainstream destinations retain their allure, this World…

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Strong fundamentals: The sector is well positioned to experience sustained growth
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Banking remains a highly profitable sector in Indonesia despite being limited in its reach. Leading banks’ average profits were the highest amongst major economies in 2012, according to Bloomberg data, a remarkable feat in an era of falling bank profits globally. Credit and savings remain marginal, however, with loans accounting for 32.85% of GDP and deposits 39.13% by December 2012, according to…