Indonesia: Population 10 times that of Australia.
Over the last decade, it has changed from Autocratic to Democratic.
GDP is growing at 6.5%pa. Its Economy will exceed Australia’s within 7 years.
Australian tourists are flocking there but we are missing out on the massive business opportunities on our doorstop.
The OECD, a policy forum for 34 advanced economies, said Southeast Asia would see robust economic growth over the next five years, led by Indonesia, as the region’s increasing reliance on domestic demand buffers it from global economic volatility. Indonesia’s economy is a consumer-driven economy. In 2008 Indonesia’s was the only economy in the region that managed to grow. It expanded 4.6 percent in 2008, while Thailand, Malaysia and Singapore saw contractions.
Indonesia is fast becoming a darling of financial markets. Foreign investment in the country rose 52% in 2010, to $16.2 billion. Sober fiscal management has resulted in falling public debt ratios and growing foreign exchange reserves.
Fast growing consumption is powered by a growing affluence of the middle class. It is in a demographic “sweet spot” with 60% of the population under 40 - an opportunity that will prevail for the next 15 years.
Consumption Driven Economy. Private consumption is the biggest driver of Indonesia’s economic growth, representing 56% of total GDP output.
Indonesia’s Growing Middle Class. 50 million households in Indonesia, expected to triple to 150 million by 2015. Consumer goods companies should look at Indonesia seriously as the consumer spending boom is just getting started
UPDATE: December 2014: Indonesia's currency (against USD) is diving - not as much as Russia, but should be opening greater opportunities. Aged Australians get preferential treatment in moving to Indonesia - many are already have to places like Bali.
Wednesday, March 21, 2012
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