THEIndonesia it has established itself over the last few years as one of the most promising emerging markets. Characterized by sustainable GDP growth rates of between 5% and 6%, its economic performance has enjoyed recognition from international rating agencies and organizations which have raised Indonesia's rating to investment grade (OECD category 3/7 ; Moody's Baa3; Standard & Poor's BB+, even if not belonging to the investment grade category, is still very close to it).
Founding member of ASEAN and considered among the economic areas of greatest international interest in view of the establishment in 2015 of the AEC (ASEAN Economic Community), which will promote an economic union of these Southeast Asian countries, the Indonesian archipelago stands out for its extraordinary endowment of natural resources and for a highly dynamic and promising domestic market.
In contrast with the trend of previous years, 2013 was a critical year for Indonesia, marked by the worsening of some economic indicators which highlighted certain weaknesses in the archipelago's economy, which closed the year with a GDP growth rate of 5,8%, down on the 6,2% observed in 2012.
There were numerous elements that influenced this result, including: the huge flow of foreign capital that left the country; the reduction of the country's exports; the worsening current account deficit; rising inflation and currency depreciation.
Nonetheless, these tensions on the development of the archipelago's economy are believed to be temporary in nature: in fact, a improvement of the various economic indicators of the country as early as the second half of 2014, in conjunction with the new presidential elections that will take place in July this year, and a recovery, already since 2015, of the growth rates that have characterized Indonesia's economic performance in recent years. L'outlook on the country's economic future is positive and the Indonesian market remains a promising destination for foreign investment, which will be further encouraged by the authorities in order to increase the country's attractiveness and counteract the slowdown in the growth rates of the archipelago's economy.
The further opening to foreign investment of some sectors, such as pharmaceuticals, advertising and energy, which marked the beginning of 2014, is in fact to be understood as an anticipation of this trend. The business opportunities are many and to be sought especially in the medium-long term in the sectors that have been indicated as priorities by the policy makers in the national development plan (in particular the infrastructure, services, ICT and energy production sectors).
An in-depth study on the country's current economic situation, future growth prospects and the most promising and interesting sectors of the Indonesian market is attached.
Attachments: FIRST_Indonesia_some tension, but the fundamentals remain good.pdf
