Interest in investment in Indonesia has grown enormously in recent years. It has always been a resource-rich country, but greater political stability and an active commitment from the government to support foreign investment has encouraged a thriving business environment.
Indonesia is South East Asia’s largest economy; its population of 240 million makes it the world’s fourth most populous country and its growth rate is predicted to exceed 6 per cent in 2011 and 2012. As significant infrastructure improvement will be required to meet these growth predictions and to satisfy the demands of an increasingly large middle class, huge potential exists for investors to participate in various sectors, from power (both generation and interconnection) to roads, ports, water and mining/minerals.
Although Indonesia can sometimes present as a challenging investment environment, the concerns often expressed in that regard can be overdone and tend to overlook the recent and real progress that has been made largely on account of a vibrant and independent media, an actively involved electorate and increasingly effective and independent regulation.
We conducted this survey to canvass opinion from the investment community, seeking input from investors, lenders and advisers. We wanted to build a clear picture of the challenges facing investment in Indonesia, to pinpoint current and developing trends, to consider the findings in the light of our own experience of working in Indonesia over the last 20 years, and to offer some insights into the findings.
Download the Indonesia inward investment - An industry survey (PDF, 1.28MB)
We wish to express particular thanks to all our respondents for participating in this survey.