COUNTRY PROFILE Island life: A rich and colourful archipelago POLITICS Rising to the challenge: Growth and reform have continued despite difficult conditions Interview: President Susilo Bambang Yudhoyono At the helm: Chairing ASEAN presents an opportunity to increase regional influence Interview: Abdullah Gül, President of Turkey Interview: Marty Natalegawa, Minister of Foreign Affairs Party lines: Political groups share similar ideologies but differ in leadership styles A focus on unity: Bringing diversity together Interview: Surin Pitsuwan, Secretary-General, ASEAN Viewpoint: Hillary Clinton, US Secretary of State Viewpoint: William Hague, UK Secretary of State for Foreign and Commonwealth Affairs ECONOMY At the centre of attention: Growth continues, driven by private consumption and investment Interview: Hatta Rajasa, Coordinating Minister of Economy Interview: Agus Martowardojo, Minister of Finance On again, off again: The central bank responds Investors welcome: Efforts to enhance incentives Interview: Prijono Sugiarto, President Director, Astra International Interview: Gita Wirjawan, Minister of Trade and Chairman, Investment Coordinating Board Portfolio prospects: Strong fundamentals support a positive outlook for markets Defending a stable rate: The central bank steps in Prime target: Foreign investors return A driving force: Private consumption boosts economic growth Interview: Bobby Umar, President Director, Bakrie & Brothers Viewpoint: Maxime Verhagen, Deputy Prime Minister and Minister of Economic Affairs of the Netherlands BANKING Size and scope: New opportunities emerge as infrastructure plans are realised A rising star: Sharia-compliant financing is an increasingly popular alternative Interview: Darmin Nasution, Governor, Bank Indonesia Interview: Gatot M Suwondo, President Director, Bank Negara Indonesia A closer look: Profiles of the leading banks Roundtable: Jahja Setiaatmadja, President Director, BCA; Michael Young, President Director, HSBC; Zulkifli Zaini, President Director, Bank Mandiri; and David Fletcher, President Director, Permata Bank Managing downside: The rate of loan defaults declines as bankers grow more cautious CAPITAL MARKETS New heights: The IDX rallies while the regulator is increasing options for investors and boosting transparency Added liquidity: The subject remains an issue Clear targets: A stronger regulatory framework will promote a stable financial system Interview: Nurhaida, Chairman, Bapepam In the mix: Investor appetite for Indonesian bonds continues Stocks & bonds: Share analysis & data provided by Bank Negara Indonesia Aneka Tambang: Mining & metals XL Axiata: Telecommunications Kalbe Farma: Pharmaceuticals Agung Podomoro Land: Real estate AKR Corporindo: Distribution Jasa Marga: Toll roads INSURANCE The contest for coverage: Major players prepare to profit from long-term potential Going micro: Targeting low-income markets Interview: Hotbonar Sinaga, CEO, Jamsostek Life lines: Rapid growth in unit-linked coverage A large margin: Health care coverage is modest but profitable INFRASTRUCTURE Realising potential: Jumping the economic hurdles of connectivity and transport Footing the bill: Development funding is being met by a mix of sources Interview: Kuntoro Mangkusubroto, Head, Presidential Delivery Unit ENERGY Mixing it up: New acquisitions and expansions in hydrocarbons and electricity Interview: Evita Legowo, Director-General, Oil and Gas Directorate, Ministry of Energy and Mineral Resources Interview: Karen Agustiawan, President Director, Pertamina Gassing up: A renewed focus on producing for domestic consumption Roundtable: Jim Taylor, President Director, ConocoPhillips; Sammy Hamzah, CEO, Ephindo; Terry McPhail, President & General Manager, ExxonMobil; and Hilmi Panigoro, President Commissioner, Medco Into the deep: Firms see greater potential in coal bed methane extraction Natural potential: Laying plans for renewables development MINING Forward momentum: Increasing domestic production is capitalising on high prices Gold standard: Two companies lead production of gold and copper Interview: Martiono Hadianto, President Director, Newmont, and Chairman, Indonesia Mining Association Elemental production: Varying tin prices impact local manufacturing output INDUSTRY & RETAIL A stronger foundation: The focus remains on becoming an industry-based economy Interview: Sudhamek AWS, President Director, GarudaFood Interview: John Gledhill, President Director, HM Sampoerna An evolving tradition: Traditional tobacco products continue to lead the segment A matter of choice: Growing disposable income is creating demand for new products Roadrunners: Buying an automobile is an option for increasing numbers of citizens Plug in, switch on: The market for electronics is growing quickly Viewpoint: Fransiscus Welirang, Director, Indofood Interview: Suryo Sulisto, Chairman, Indonesian Chamber of Commerce and Industry New demands: Expansion continues, while impact from free trade agreements begins to be felt CONSTRUCTION & REAL ESTATE Ready to be realised: If regulatory barriers can be overcome, massive potential awaits Putting it all together: Cement companies are preparing for significant growth Making it work: The government is setting up agencies to encourage investment Keeping it green: New environmental initiatives Room for change: Huge expansion and demand Interview: Muktar Widjaja, Chairman, Sinarmas Land Interview: Trihatma K Haliman, President Director and CEO, Agung Podomoro Land Without further delay: A new land acquisition bill will speed up much-needed development Outside looking in: Reforms to laws could see foreign investment bolster the economy Sharing the wealth: Expansion and growth is taking hold throughout the archipelago On the market: Several developers are listed on the Indonesia Stock Exchange TRANSPORT & LOGISTICS Stepping up to the task: The government speeds up development of connections Rise in the skies: Increasing airport capacity Liberalised but protected: Shipping law welcomes private sector participation Interview: Emirsyah Satar, President & CEO, Garuda Indonesia Interview: Shanti L Poesposoetjipto, Chairman, Samudera Indonesia Group Greater connectivity: Building partnerships for increased infrastructure development Easing congestion: Getting traffic moving On the move: Addressing bottlenecks Charting a safe course: Domestic fleets work to meet rising demand Back on track: A dramatic rail overhaul planned TELECOMS & IT A time of change: Thin markets see hope in a future of sophisticated data services Sharing resources: A maturing wireless sector prompts competitors to share towers Interview: Rinaldi Firmansyah, President Director, Telkom The big three: A battle for subscribers Roundtable: Erik Aas, President Director & CEO, Axis; Hary Sasongko, President Director, Indosat; Sarwato Atmosutarno, President Director, Telkomsel; and Hasnul Suhaimi, President Director, XL Getting connected: The challenges are many, but so are the potential rewards Enter the net: More access in the archipelago PLANTATIONS & AGRICULTURE Preparing for the harvest: The government is creating growth zones and enhancing rules The day’s catch: Aiming to become the world’s largest fisheries producer Interview: Franky Widjaja, Vice-Chairman for Agribusiness, Food and Livestock, Indonesian Chamber of Commerce and Industry The sweet spot: Sector players are looking to capitalise on expected production boosts TOURISM Focused approach: Visitor numbers rise Business destination: Expanding the quantity and range of MICE facilities Interview: I Made Mangku Pastika, Governor of Bali Beyond Bali: Encouraging visits further afield EDUCATION & HEALTH A system test: Funding and regulation are set to be overhauled with a range of reforms Interview: Ir Ciputra, Founder and Chairman, Ciputra Group Forging connections: New international student exchange programmes and partnerships Striking a healthy balance: Growing demand and changing profiles are driving a new approach Pharmaceuticals in play: The country is an increasingly attractive market for drugs firms Interview: Dr Endang Rahayu Sedyaningsih, Minister of Health RELIGIOUS AFFAIRS Politics of faith: Finding a place for religion in a democratic, harmonious and responsible society Interview: Suryadharma Ali, Minister of Religious Affairs Growing market: Sharia-compliant finance shows strong potential MEDIA Breaking news: Growing opportunities for domestic and international media investors The bigger picture: Cinema and television are both expected to see increased demand Online, but switched on?: The country has rich potential for highly profitable online marketing REGIONS Local governance: Decentralisation has presented both challenges and opportunities Viewpoint: Satish Mishra, Managing Director, Strategic Asia A star performer: South Sumatra receives recognition for its strong potential And the winner is…: Regional Champions stand apart with their economic development TAX PricewaterhouseCoopers Reshaping the environment: An overview of the tax system and regulations for investors Collaborating for success: Regulatory reforms accelerate private sector participation in infrastructure development Viewpoint: Irhoan Tanudiredja, Senior Partner, PricewaterhouseCoopers LEGAL FRAMEWORK Lubis Santosa & Maramis The costs they cause: The government enacts new rules on cost recovery Laws and regulations: An overview of the current legal environment in Indonesia Viewpoint: Todung Mulya Lubis, Senior Partner, Lubis Santosa & Maramis THE GUIDE Waking up to tourism: Aceh’s many wonders Hotels: A home on the islands Listings: Important numbers Facts for visitors: Useful information

You have reached the limit of premium articles you can view for free. 

Choose from the options below to purchase print or digital editions of our Reports. You can also purchase a website subscription giving you unlimited access to all of our Reports online for 12 months.

If you have already purchased this Report or have a website subscription, please login to continue.

Cover of The Report: Indonesia 2012

The Report

This article is from the Table of Contents chapter of The Report: Indonesia 2012. Explore other chapters from this report.

Covid-19 Economic Impact Assessments

Stay updated on how some of the world’s most promising markets are being affected by the Covid-19 pandemic, and what actions governments and private businesses are taking to mitigate challenges and ensure their long-term growth story continues.

Register now and also receive a complimentary 2-month licence to the OBG Research Terminal.

Register Here×