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Analysis

Sharing the wealth: Expansion and growth is taking hold throughout the archipelago
OBG
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The real estate market has been focused on Jakarta for a long time, with a few other focus areas: Bali as a location for holiday homes, some industrial hives near resources and ports, and a few other exceptional areas. However modern development is starting to move beyond those areas. Several bedroom communities have sprung up to the east, west and south of Jakarta, which is remaking retail offerings…

Analysis

Without further delay: A new land acquisition bill will speed up much-needed development
OBG
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It is almost an universally held opinion in Indonesia that a long-promised land-reform bill will be a major catalyst for growth. After several years of delays, the reform, to make land seizures for public works easier, was finally passed by parliament on December 16, 2011. It is expected to take effect by January 16, 2012. This new law is the most anticipated of a series of coming legal reforms,…

Analysis

Beyond Bali: Encouraging visitors to travel further afield
OBG
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One of the six economic corridors outlined in Indonesia’s latest development master plan is Bali-Nusa Tenggara, with this region flagged up as a gateway for tourism and national food support. The Master Plan for the Acceleration and Expansion of Indonesian Economic Development 2011-25 (MP3EI) thus also recognises tourism as a prime economic sector. It also marks the geographical region including…

Analysis

Business destination: Expanding the quantity and range of MICE facilities
OBG
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Enjoying a period of sustained economic growth and heightened overseas investor interest throughout the global downturn, Indonesia has recently seen itself move up the league table of international business destinations. This has been good news for its meetings, incentives, conferences and exhibitions (MICE) segment, with the government keen to promote what the country has to offer on this score.…

Analysis

Enter the net: Increasing access across the archipelago
OBG
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In order to build a vibrant technology sector, internet access must be made easy. For this task Indonesia has developed several plans. The penetration of broadband in the country is estimated to be at 2.2% as of 2011. A major part of the problem has been Indonesia’s geography, which makes setting up a broadband network very complicated when compared to most other countries. Almost two-thirds…

Analysis

The day’s catch: Aiming to become the world’s largest fisheries producer
OBG
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As an archipelago consisting of around17,500 islands and with a coastline of some 81,000 km, Indonesia is uniquely endowed in its access to aquatic natural resources. The Indonesian fisheries industry produced a total of 10.85m tonnes in 2010, up from 9.82m tonnes in 2009 according to data from the Ministry of Marine Affairs and Fisheries (MMAF). This translated into export revenues of $2.66bn,…

Analysis

The sweet spot: Sector players are looking to capitalise on expected production boosts
OBG
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Adverse weather has hit the world’s third largest cocoa producer hard the past two years, first with La Niña bringing copious amounts of rain followed by a dry spell from May to August 2011 and a prolonged infestation of damaging cascular-streak dieback disease. These extremes have put the brakes on production and exports, which had been bullish for the past decade. “Economic fundamentals…

Analysis

Sharing resources: A maturing wireless sector prompts competitors to share towers
OBG
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With penetration rates nearing 100% and network coverage encompassing almost all of the country, Indonesia’s wireless communications sector is approaching maturity. Furthermore, average revenue per user is falling and the main providers are now looking for other ways to keep profits from sagging. It is at this point in the development of a wireless telephony sector that selling and sharing network…

Analysis

The big three: A battle for subscribers and profit
OBG
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While there are a host of telecommunications providers serving various niches in Indonesia, three companies stand out as the biggest and most closely watched: Telkomsel, Indosat and XL Axiata. These are the three dominant GSM providers and it is their competition that sets the overall tone for the sector. Each have reported drops in some key indicators over the past year, such as average revenue…

Analysis

Growing market: Sharia-compliant finance shows strong potential
OBG
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Although Indonesia may be home to more than 200m Muslims, its share of Islamic finance products compared to conventional financial instruments is still fairly small. With these specialised banking and financial services growing by as much as 20% per year, there remains significant potential for the country to capture a larger slice of this market and in the process offset a budget shortfall which…