MARKET STUDIES
INDONESIA | THE EMERGING TIGER
Heading into 2020 and before the COVID-19 pandemic, the Indonesian economy was sustaining growth rates hovering around 5% a year. McKinsey analysts suggest that, with focused effort, Indonesia has the potential to become the world’s seventh-largest economy within a decade of recovering from the pandemic.
The government’s conservative fiscal and monetary policies have kept the national debt relatively low at 29 percent of national GDP. Inflation rates are also still within the Central Bank’s target range, keeping Indonesia’s economic outlook stable and manageable.
“By 2050 we project China will be the largest economy in the world by a significant margin, while India could have edged past the US into second and Indonesia have risen to fourth. The EU27’s share of global GDP could have fallen to below 10%. We also think the world economy will more than double in size between now and 2050, far outstripping population growth.” — International professional services firm PwC in its The World In 2050 report.
PRIMARY REASONS FOR INVESTING IN INDONESIA
Renowned financial organisations 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.
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.
