Overview

The contest for coverage: Major players prepare to profit from long-term potential
OBG
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With GDP growth at 6.1% in 2010 and forecast to reach 6.6% in 2011, on the back of buoyant consumption, expectations are high for insurance in Indonesia. The industry has enjoyed stable growth since the 1997-98 Asian financial crisis, particularly over the past five years, with gross premiums growing an average of 23% annually since 1996 to reach a total of Rp133.5trn ($16.02bn) in 2010, a 25%…

Overview

New heights: The IDX rallies while the regulator works to increase options for investors and boost transparency
OBG
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Since the global financial crisis hit in late 2007, portfolio investors worldwide have cast a wider net, looking for capital gains in a world where economic growth is far from certain. In their search for markets that have shown resilience, many have turned to the countries of South-east Asia. Although in the past, a crisis elsewhere could hurt the region’s export-dependent economies, these…

Overview

Size and scope: New opportunities emerge as infrastructure plans are realised and lending grows
OBG
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Despite a turbulent history in financial services, Indonesia has plenty to offer overseas bankers. Some of what is compelling has long been so, such as the huge potential inherent in the world’s fourth-most-populous nation. Indonesia has for decades had a significant and largely untapped customer base – only about 20% of the country’s adults have any sort of ongoing financial services relationship.…

Overview

Rising to the challenge: Growth and reform have continued despite difficult global conditions
OBG
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Since declaring independence from the Netherlands in 1945, Indonesia has become one of the world’s fastest developing and most economically promising nations. Transforming itself repeatedly over the years, it has also now established itself as an emerging regional giant. Indeed, while many countries felt the strong negative effects of the global financial crisis, Indonesia continued to build…

Overview

Forward momentum: Increasing domestic production is capitalising on high prices
OBG
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Even as economic woes continue to grip the world’s developed economies, Indonesia’s mining sector has been on an impressive roll, with strong demand bolstering sales. Unlike the previous global downturns of 2007 and 2008, commodity prices surged in the first half of 2011 before dropping off slightly in the fourth quarter. This led to a windfall for many of the mining companies operating in…

Overview

A stronger foundation: The focus remains on becoming an industry-based economy
OBG
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With economic growth of 6.1% in 2010 and widespread predictions of continued expansion in 2011, Indonesia’s industrial sector is attracting more attention from international investors than ever before. The country is also making a major effort both to shift away from resource-based industries to more value-added sectors, and to boost its fundamental economic infrastructure in ways that will directly…

Overview

New demands: Expansion continues, while the sector begins to feel the impact of the ASEAN-China free trade agreement
OBG
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With sustained economic growth putting more money in Indonesians’ pockets than ever before (GDP expanded 6% in 2010 and is expected to rise around 6.5% in 2011) the country’s retail sector is experiencing solid expansion. Indeed, the retail sector as a whole grew 12% in 2010, with many businesses pushing ahead with outlet expansion. This wave has also spread beyond the traditional economic…

Overview

Mixing it up: New acquisitions and expansions in hydrocarbons and electricity are changing the landscape of the sector
OBG
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2025, Indonesia’s primary energy mix should contain 33% coal, 30% natural gas, 20% crude oil, 5% each of biofuels, geothermal and other renewable sources, and 2% liquid coal. CALLING THE SHOTS: Created in 2001 to take over the role of regulator from state-owned oil and gas company Pertamina when it was incorporated as an limited liability company, the Executive Agency for Upstream Oil and…

Overview

Ready to be realised: If regulatory barriers can be overcome, massive potential awaits
OBG
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As with many economic activities in Indonesia, it is the country’s unlikely geography that has determined the size, scope and characteristics of the construction industry. Indonesia is the world’s largest country composed only of islands, and the 15th largest by land area. Building ports, airport, bridges and other pieces of crucial infrastructure has always been a priority. The sector, consequently,…

Overview

Room for change: Huge demand underpins projected expansion
OBG
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The real estate sector is a microcosm of Indonesia’s entire economy. The market features surging demand, good value in a regional context, a bright future, and bureaucratic bottlenecks that, if unaddressed, could create problems in the future. As is often the case, it is the demographics that loom largest, and in the real estate sector this means a massive need for low-cost housing, something…