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Analysis

And the winner is…: Regional Champions stand apart with their economic development
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Early October 2011 saw the Indonesian government announce the winners of its second round of “Regional Champion” contests, with seven new provinces gaining the coveted title. The Regional Champions are provinces selected by the Indonesia Investment Coordinating Board (BKPM) for their success in promoting investment, business and economic growth. APPRAISE: The award focuses attention on…

Analysis

Forging connections: International student exchange programmes and partnerships are being forged to develop civic responsibility
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In 2011, the Ministry of National Education (MoNE) named five priority programmes: early childhood education; ensuring all children aged 7 to 15 attend school; vocational education; improving university competitiveness in research and innovation; and giving scholarships to lecturers to earn doctoral degrees. The last item – teacher qualification – constitutes a major challenge. The 2005 Teacher…

Analysis

A star performer: South Sumatra receives recognition for its strong development potential
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The year 2011 could turn out highly important for the Indonesian province of South Sumatra, as it prepares to host the South East Asian (SEA) Games, an event that will focus regional attention on an up-and-coming investment destination. Indeed, the province also hopes to benefit widely from the attention it has received as one of the country’s Regional Champions – provinces that are to…

Analysis

Pharmaceuticals in play: Rising domestic demand and export potential make the country an increasingly attractive market for drugs firms
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The growth of Indonesia’s middle class has resulted in an increasing demand for branded pharmaceuticals. However, efforts to attract additional foreign investment into the pharmaceuticals industry are hampered by an array of challenges, including price controls, weak intellectual property (IP) law enforcement, corruption, lack of skilled labour and a poor regulatory framework. Competition in…

Analysis

Online, but switched on?: The country has rich potential for highly profitable online marketing
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Indonesians are clearly avid internet surfers, but can they be made to pay? Convergence is the name of the game, with GSM operators banking on triple-play packages while fast-growing groups like James Riady’s Lippo Group are launching online news portals. While the lines have blurred between service and content providers, the challenge of how to monetise this online community remains a difficult,…

Analysis

The bigger picture: Cinema and television are both expected to see increased demand
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The market in both pay-TV and cinema remains highly concentrated, but developments in 2011 and the prospects of strong growth point to a greater level of competition in years to come. Indonesian pay-TV is currently expanding at the slowest rate of all in Asia, with household penetration at a mere 3% in 2010 – roughly 1.3m households across the country. However, operators are bullish, expecting…

Analysis

Collaborating for success: Regulatory reforms accelerate private sector participation in infrastructure development
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Indonesia, with an average GDP growth of around 5-6% per annum during the past three years, has emerged as one of world’s potential economic powerhouses. As a member of the G20, Indonesia is already in the process of transforming into one of the developed nations. This fourth-most-populous country in the world has most of the requirements to reach a higher economical level. Natural resources,…

Overview

Island life: A rich and colourful archipelago, looking to raise its global standing
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Spread between Asia and Australia, Indonesia is comprised of around 17,500 islands, of which over 6000 are inhabited. The archipelago is on a crossroad between the Pacific and the Indian oceans, and bridges the Asian and Australian continents. This strategic position has influenced the cultural, social, political and economic life of the country. After years of political upheaval and a major…

Overview

At the centre of attention: Growth continues driven by private consumption and investment
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In the midst of turbulent international economic conditions, Indonesia’s growth and investment potential is increasingly attractive. Authorities seek to leverage on the economy’s key competitive advantages to attract the long-term investment needed to realise their goal of turning the country into one of the top 10 economies by 2025. Already the world’s 17th largest with a nominal GDP of…

Overview

Realising potential: Jumping the economic hurdles of connectivity and transport
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Although the country’s economy is a multi-faceted one, in which energy, agriculture, manufacturing and financial services are key parts of the mix, the attention in 2011 was not on the economy’s heavy hitters, but rather on the playing field in which they operate. The hot topic across the archipelago is improving infrastructure, as fast as possible. Doing it slowly or doing nothing could…