The government’s Making Indonesia 4.0 strategy was launched in 2018 and outlines steps to enable the country to capitalise on the evolving trends of manufacturing provided by the Fourth Industrial Revolution. These include the application of new digital and automated technologies to improve production processes and service delivery. Key priorities of the roadmap include the development of…
As globalisation has increased, the world’s supply chains have become substantially more interconnected. Moreover, as emerging market economies have steadily come to account for a greater proportion of global GDP, goods often have more stages to pass through before reaching the end consumer. From national lockdowns to closed airspace and borders, the spread of Covid-19 in the first half of…
In recent years modest fashion inspired by Islam has shifted from a niche market to the mainstream, with designs that appeal to religious consumers appearing at major fashion weeks, and global clothing brands such as H&M, Macy’s, and Marks & Spencer launching their own labels. Now in the limelight, modest fashion is expected to grow substantially. Spending on modest apparel reached…
The completion of mass rapid transit (MRT) systems, intercity rail links and toll roads in recent years throughout Indonesia has heralded the emergence of transit-oriented developments (TODs) in real estate. These are intended to maximise the convenience of major transport centres, thereby reducing the collective dependence on private motor vehicles. TOD Communities A modern TOD typically…
Steel consumption in Indonesia is forecast to rise from 15.1m tonnes in 2018 to 22.7m tonnes in 2024. Most demand is expected to come from the government’s infrastructure drive; however, a limited production capacity and highly competitive prices for imported steel has led authorities to call for greater investment in its steel industry and for the expansion and diversification of value-added…
The relocation of the capital from Jakarta to East Kalimantan on Borneo looks set to create major investment opportunities if approved by Parliament. In August 2019 President Joko Widodo, better known as President Jokowi, stated that 20% of the estimated $33bn required for the development would be supplied by the state, leaving 80% open to state-owned enterprises (SOEs), public-private partnerships…
Indonesia’s data centre market is flourishing as global cloud solutions providers race to take advantage of the country’s booming digital economy. Financial benefits from using public cloud services could add as much as $36bn to Indonesia’s economy between 2019 and 2023. According to market research firm Frost & Sullivan, Indonesia’s cloud market could be valued at up to $1.2bn…
In keeping with its position as the largest economy in ASEAN, Indonesia is expected to eventually capture the largest share of rising consumer and enterprise revenues as a result of 5G deployment. A study by global management consulting firm Kearney suggests that the technology could lift consumer revenue across the region by 6-9% before 2025, and enterprise revenue by 18-22%, as operators…
With an internet adoption rate of 64.8% as of 2018 and a widening middle class, online travel agencies (OTAs) have become increasingly popular in Indonesia in recent years. OTAs do not require the same level of infrastructure, staff and working capital as traditional travel agencies, and the convenience they provide to businesses and individuals alike has been key to their expansion. Local…
Tourism in the Asia-Pacific region has seen impressive growth in recent years, aided by cheaper air fares, an expanding consumer class and increased exposure brought about by improved internet connectivity. Although these developments have led to significant economic benefits for countries across the region, they have also had some negative consequences, particularly for the environment. Around…
