President Alassane Dramane Ouattara

Cultivating safety in Indonesia’s Surabaya

Surabaya, on the island of Java, boasts a population of nearly 3m, but the population of Greater Surabaya is estimated at more than 10m, making it the second-largest city in Indonesia. In addition to its size, Surabaya is the birthplace of Sukarno, the country’s founding father and first president, and home to one of the busiest ports in South-east Asia. “We managed to become a city with the second-highest resident satisfaction in the world, losing only to Chennai, which has better public transportation,” Surabaya’s mayor, Tri Rismaharini, said during an American Chamber of Commerce event in 2014. This satisfaction is in no small part due

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Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Lower commodities prices and regulations pressuring Indonesia’s coal industry

Though Indonesia was not a major coal exporter until well into the 1990s, the country’s coal producers have made up for lost time by rapidly boosting their shipments. Along the way, they have ascended to the top spot in the seaborne coal hierarchy, surpassing Australia in 2011 and maintaining the lead position through boom and bust cycles. Rich in carbon deposits distributed across the country, the country’s coal mining industry has long been a dependable contributor supporting both its domestic mining and energy sectors. The inexpensive fuel is the most widely utilised power source for domestic electricity production and industrial demand, while prolific exploration and

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Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Indonesia’s tourism sector to benefit from increased purchasing power of the middle class

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While Indonesia has long had a small and extremely wealthy elite, the steady economic growth and political stability that followed the departure of President Suharto and the Asian Financial Crisis in 1998 has lifted millions of people out of poverty and created a new middle class. The number of Indonesians in this category rose by 40% between 2003 and 2010, according to former minister of finance, Muhamad Chatib Basri. (salkantaytrekking.com) By some estimates the middle class, defined as having an annual income of at least $3500, now makes up about one-third of the population, making it bigger than the combined populations of Australia, Malaysia and

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George Richani-CEO-Al Ahli Bank of Kuwait

Marine segment offers great potential as Indonesia targets better accessibility

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With more than 17,000 islands spanning 54,716 km of coastline and some of the world’s most enchanting diving spots, Indonesia has major potential in the marine tourism segment. And while it is the world’s largest archipelagic country, the marine tourism sector has remained relatively undeveloped. Out of the Wilderness Although there are a number of boutique sailing cruises operating out of Bali towards the east and surfers who travel thousands of kilometres to catch a wave at some of the remote islands in the west, the large cruise ships that dock in neighbouring countries such as Malaysia and Thailand rarely make a stopover in Indonesia.

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Éric N’guessan-Managing Partner-EY Côte d’Ivoire

Protecting and developing Indonesia’s fisheries

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As the largest archipelago country in the world with more than 17,500 islands, Indonesia has both huge potential and abundant wealth lying within its territorial waters. Looking to tap into this potential, newly-elected President Joko Widodo has so far placed a high degree of emphasis on marine industry and security, stating in his inaugural speech in October 2014 that, “the time for us is to return to make Indonesia a maritime nation … to be as great in the oceans as our ancestors were in the past”. Maritime Security While this emphasis has strong connotations towards bolstering the country’s naval prowess (Widodo also quoted the

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Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Ensuring intellectual property protection and quality assurance in Indonesia’s pharmaceuticals sector

The introduction of universal health care is expected to have a major impact on Indonesia’s already thriving pharmaceuticals sector. Analysts have predicted that 2015 will be a watershed year for pharmaceuticals, with the full implementation of universal health care (known as JKN locally) expected to increase demand for prescription medications. Generics especially will benefit, because the government relies on them to keep costs under control. JKN is again the driver of this trend, as it covers the cost of prescription drugs in its formulary, the

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George Richani-CEO-Al Ahli Bank of Kuwait

Market for machines grows in Indonesia’s health care sector

Because Indonesia manufactures only a small number of the high-tech medical devices and equipment it uses domestically, the opportunities for foreign manufacturers, suppliers and distributors of medical devices are numerous. Devices and equipment used in clinical laboratories, diagnosis, surgery, cancer treatment, dental services and dermatology are all expected to see high demand as the nation’s Health Care and Social Security Agency (BPJS) is embraced by patients, clinics and hospitals. As the scheme rolls out and more Indonesians use health services, the number of people requiring diagnostic tests and imaging services, among other high-tech tools, will grow. These include CT scanners, X-ray machines, medical and dental

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George Richani-CEO-Al Ahli Bank of Kuwait

Boosting Indonesian educational institutions’ competitiveness and R&D in Indonesia

After President Joko Widodo’s administration took the reins of government in 2014, it implemented changes to the structure and mission of the education system. These changes aim to enhance the competitiveness of the workforce and increase the amount of research and development (R&D) activities conducted by students, researchers and entrepreneurs. A New System The restructuring reinforced the twotier system of education but changed its focus. Separating higher education from the (former) Ministry of Education and Culture, the reorganisation aimed to support a five-year plan to spur innovation and research in public and private universities and improving graduates’ competitiveness. Under the new system, basic and secondary

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Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Shake up in Turkey’s banking sector as some international banks exit while others explore entry

The foreign presence in the Turkish banking market is currently undergoing a shake up, with new entrants arriving looking to expand their presence in a large and dynamic emerging market, while others are looking to pull out due to external pressures. Raising the Stakes In 2011 Spain’s Banco Bilbao Vizcaya Argentaria (BBVA) bought 24.9% of Garanti Bank for €4.4bn. In November 2014 it raised this stake to 40% for an additional €2bn, giving it control of the bank’s board (with seven of 10 members) and reflecting its confidence in the Turkish market’s outlook, despite the economic slowdown and a dip in profitability, as well as

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Daouda Coulibaly-Managing Director-Société Ivoirienne de Banque

Rapid credit growth in Turkey leads to growing ratio of bad debt and NPLs in the banking sector

As the IMF and others have noted, the Turkish banking system’s non-performing loan (NPL) ratio is relatively low, despite the recent economic slowdown and foreign exchange risk. The ratio varies across the sector, however, with some banks more susceptible than others. While NPLs are not high by regional standards – and even by those of some eurozone members – and are well-provisioned, analysts and sector players have become increasingly aware of the risks of a rising ratio to balance sheets. After several years of rapid credit growth, a number of factors could drive NPLs upwards, including slowing economic growth, the fall in the lira, and

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