THE COMPANY: AKR Corporindo (AKRA) is the largest private distributor of petroleum products and basic chemicals in Indonesia, with an extensive logistics and supply network, covering 15 sea and river ports. Five of the river ports have storage tank terminals with more than 543.14 kl. AKRA serves customers in the mining, power plant, industrial and bunker sectors. In January 2011 AKRA succeeded…
Home to the world’s largest Muslim population, Indonesia is in theory fertile territory for the development of Islamic finance, the practice of lending, investment, finance and insurance without interest rates or speculation. Still, in the South-east Asian region, it is neighbouring Muslim-majority Malaysia, which is a fraction of the size of Indonesia, that has historically been the market leader…
THE COMPANY: Aneka Tambang (ANTM) is a vertically integrated, export-oriented, diversified mining and metal company in Indonesia. It is a state-owned enterprise in which the government is a majority shareholder, with 65% of the shares. The remaining 35% shares belong to public investors. The company does exploration, exploitation, production and trading for its main metal products. The company…
As one of the founding members of ASEAN, 2011 has been a special year for Indonesia, as it has assumed the chair of the 10-member regional group. At a time when Asia is becoming increasingly important in global affairs, this is an opportunity for the country to demonstrate its growing influence. The year has been one of growing uncertainties too, within the global economy. At the same time,…
Strong domestic spending has proved a key advantage for Indonesia, with its 240m consumers helping to insulate it from global economic tailwinds. Private consumption has risen sharply above pre-1997 levels, becoming a key driver of Indonesian economic growth – aggregate domestic consumption now accounts for around 70% of GDP, similar to the structure of a postindustrial economy. The Japanese…
The large low-income consumer market has become a testing ground for many industries in Indonesia, and insurance is no exception. The microinsurance segment, although still marginal relative to the industry as a whole, has recently been attracting the attention of mainstream underwriters in this regard. With over half of Indonesia’s population living on less than $2 a day, potential demand is…
The country’s regulator for the capital markets, Bapepam, has developed and carried out a series of master plans that will guide and pace the development of the Indonesia Stock Exchange (IDX) and other local financial platforms. The current master plan, which was introduced in October 2010 and addresses 2010-14 period, begins with a reflection on the financial crisis and how it has served as…
As an archipelago comprising some 17,500 islands, Indonesia has an ethnically and religiously diverse population – a characteristic long the source of both opportunities and challenges. Indeed, different perceptions of this diversity have engendered conflict in recent decades. However, the past few years have seen a major reduction in political risks and a corresponding increase in foreign investment…
Life insurance premiums in Indonesia have been growing faster than non-life for a decade. The Life Insurance Association (Asosiasi Asuransi Jiwa Indonesia, AAJI) estimates that there are around 33.2m policyholders nationwide, of which 9.3m have individual policies. There is room to expand the pool of 16.75m existing life insurance clients, which has already been growing rapidly – 48% year-on-year…
At the forefront of a regional wave of bond sales in 2010, Indonesia continued to enjoy a similar trend in 2011, with several major sales during the year. Moreover, Indonesia’s sovereign debt rating was increased to investment grade in December 2011, which could lower the cost of funds. That should be the catalyst needed to deepen markets for primary corporate debt sales, secondary trading and…
