MARKET STUDIES

INDONESIA | THE EMERGING TIGER

COUNTRY
ANALYSIS

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”.

MAIN REASONS FOR INVESTING IN INDONESIA

Renowned organizations such as Standard Chartered, Ernst & Young, Jones Lang La Salle, Knight Frank and PWC have all recently cited their opinions on what is happening in Indonesia. At Invest Islands we believe this further confirms that Indonesia is the current place to be for investors.

1

The world‘s largest archipelagic country

with approximately 17,000 islands, Indonesia occupies a strategic location along major sea-lanes between East and West Asia.

2

The world’s 4th most populous country

with a population of just under 250 million; slightly less than the population of China, India and the US. It is home to a 135 million consumer class, a sign of a growing middle- and upper-class with high purchasing power.

3

The largest economy in Southeast Asia

and its only member of the G-20. Due to strong economic and demographic Indonesian potential, Standard Chartered projects Indonesia will be part of the G-7 by 2040. It is also predicted to be the 5th largest economy in the world by 2030.

4

Strong democracy

despite of its vast cultural diversity which empowers the country with agility and flexibility to meet future needs and development.

National motto: “Unity in diversity”

5

245 national strategic infrastructure projects

covering 6 development regions, building new airports & seaports across the country as the gates for trade and tourism. The country is also improving electrical capacity with an additional 35.000 MW

6

10 “New Balis” plan

that aims to replicate the economic effects of tourism in Bali nationally, and set a target of welcoming 20 million foreign tourists by 2019.

7

High investment incentives

such as ease-of-doing business are set to attract more foreign direct investment.

8

Rich in natural resources

and ready to produce goods for global markets.

10 New Balis

The Indonesian Ministry of Tourism has listed the destinations earmarked under the 10 New Balis plan for further development, which includes the upgrading of airports and construction of new amenities.

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