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Stepping up to the task: The government speeds up the development of land, sea and air connections
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Faced with ever-growing congestion in the movement of people and goods across the archipelago, the government is clear that improving and diversifying Indonesia’s logistics network stands at the heart of its efforts to boost economic growth above 7%. Air passenger traffic has continued to grow, with the large domestic market flocking to the growing pool of low-cost airlines (see analysis). As…

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A time of change: Thin markets see hope in a future of sophisticated data services
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With close to 200m mobile phone customers, Indonesia’s telecommunications sector is active, competitive and vibrant. It is not, however, a profit machine. The constant race to capture price-sensitive customers, combined with the steady need to spend on network development, means that telecoms companies must be careful on costs, creative with promotions and have a well-articulated strategy in…

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Preparing for the harvest: The government is creating growth zones and enhancing regulations
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Following the well-established path towards rapid economic development, Indonesia has long relied on selling its vast reserves of natural resources. At the same time, more markets have been eager to snap up raw materials such as crude palm oil (CPO), cocoa, rubber and other products to fuel their manufacturing. This trajectory has shown signs of altering in 2011 as the government has become more…

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Focused approach: Visitor numbers rise as the country widens its offering and targets new markets
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Known throughout the world for its key tourism destination, Bali, Indonesia has been trying to broaden visitors’ itineraries in recent times by developing other tourist areas and activities. At the same time, the country is trying to build its profile as a business travel venue, a policy helped along by ongoing economic growth. The country is also seeking to leverage its appeal as a vast archipelago…

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Getting connected: The challenges of wiring the world’s fourth-most-populous country are many, but so are the potential rewards
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Following the dissemination of studies by the World Bank and others that show a link between technology take-up and economic growth, the developing world has become awash with road maps, master plans, frameworks and other strategies to get connected, train young workers and move into the knowledge economy. In 2010 Indonesia’s Ministry of Communication and Information Technology (MCIT) surveyed…

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A system test: Funding and regulation are set to be overhauled with a range of ambitious reforms
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In the past 15 years, spending on Indonesia’s education system has dramatically increased, along with enrolment rates. Indeed, basic education is now mandatory and in theory accessible to all, in line with one of the country’s Millennium Development Goals. Moreover, recently there have been great improvements in the quality of basic and, to some extent, secondary education. With improvements…

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Politics of faith: Finding a place for religion in society that is democratic, harmonious and responsible
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Long cited as an example of a successful Muslim democracy by political and religious leaders from a wide array of faiths and nationalities, Indonesia’s cultural blueprint continues to provide a stable bedrock for increasingly welcoming political and economic climates. “We are a Muslim majority nation, but democracy also works very well here,” the head of the centre of information and public…

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Breaking news: Growing opportunities for domestic and international media investors
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Since TVRI’s 25-year monopoly in television was ended by the launch of RCTI in 1989 by Media Nusantara Citra (MNC), and Surya Citra Media’s SCTV shortly thereafter, the media sector has taken great strides in Indonesia. A number of large diversified conglomerates have emerged since, though these now face competition from smaller-sized firms. Indonesians have the luxury of choice, with 10 free-to-air…

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Local governance: Decentralisation has presented both challenges and opportunities
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Since 1999 and the beginnings of the current democratic era in Indonesia, the country’s regions have had a much greater say in their own governance and economic development. A process of decentralisation begun in 1999 has continued to impact business and investment until today, with the results often controversial. At the same time, certain regions have emerged as important destinations in…

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Striking a healthy balance: Growing demand for care and a changing disease profile are driving a decentralised approach
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In recent times, increased life expectancy and reduced infant mortality rates signal vital, important advances in Indonesia’s health care system. Yet these are often offset by the country’s high rates of maternal mortality and child malnutrition. For the 2010-14 period, the government has given health services a series of priorities: improving maternal and child health, continuing to develop universal…