The 3 big rating credit agencies about Indonesia
In December 2011, Fitch and Moody became the first of the three dominant international rating agencies to boost Indonesia to investment grade, citing steady economic growth, declining debt and general macroeconomic stability.
According to Ernst & Young “the middle class in Indonesia is growing fast, and in coming years could emerge as the largest middle class after China and India” . Finally, “Indonesia did not benefit from the real estate boom in 2006 to 2008 and the real estate market now appears to be immune from all global economic concerns”.
Indonesia – The emerging Tiger
Indonesia’s economy is on the rise and thus seeing the country take its rightful position as a major destination for foreign direct investment (FDI). In terms of future outlook, Indonesia is entering a ‘sweet spot’ as a convergence of its young, working population with that of relatively stable inflation and sustained economic growth is fuelling consumer spending. Finally, The country’s resilience over the course of the global financial crisis illustrated the merits of its immense population and economic self-reliance. Bucking the trend of most other G20 economies.
Indonesia continues to forge ahead as the world’s largest Islamic democracy with little tensions within the existing political power structures which are likely to impede significant reforms and economic growth. Following the ten-year administration of Susilo Bambang Yudhoyono, Joko Widodo was elected to office in July 2014 with a voter turnout of 70.6 percent. Significantly, this was one of the largest turnout rates to date and showed an increased participation by Indonesian citizens in the process, suggesting a strengthening of the legitimacy of the system.
At Invest Islands we believe this further confirms that Indonesia is the current place to be for investors.
Indonesia, the world‘s largest archipelagic country with approximately 17,000 islands, has a population just under 250m and is therefore the World’s fourth most populous country after China, India and the US. The annual population growth has been 1.5%, which represents “almost one new Singapore every year”. It is the largest economy in Southeast Asia and its only member of the G-20.
During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth.
Due to strong economic and demographic potential, Standard Chartered projects Indonesia will be part of the G-7 by 2040.
“Asia’s next tiger economy”
“Luxury property prices in 2012 jumped in Indonesia by more than Anywhere else in the world”
”Over the past decade or so, Indonesia has had the lowest volatility in economic growth among any advanced economy in the Organisation for Economic Co-operation and Development (OECD) or the BRICs (Brazil, Russia, India, and China) plus South Africa.”