One does not think of Indonesia as one of the Asian 'tigers', but its growth rate is respectable: 6,5% last year and 6% estimated for this year. And in any case what counts, in terms of outlet markets, is not only the growth rate but the size of the market: Indonesia is the fourth most populous country in the world (about 240 million inhabitants). It is a poor country: the per capita GDP in purchasing power parity in 2010 was $4347 (China: 7544, Italy 29480), but precisely for this reason the opportunities are immense. Growth rates are creating a middle class capable and willing to spend. Last year consumer loans grew by 24% (2011 on 2010); and between 2009 and 2011, credit card transactions grew by 34%. Ikea will open in Indonesia: a sign that that market is considered ripe for both mass and quality consumption.
Not only is Ikea entering the archipelago: Carrefour, Starbucks, Samsonite are also investing in Indonesia. The infrastructures are not good, railways and transport generally leave something to be desired. But the public budget is not in crisis (the deficit this year is estimated at 2.2% of GDP) and monetary policy is becoming expansive: in February the central bank lowered the guide rate to 5.75%, as a 'premium' to a lowering of the inflation rate (to 4.0%).
http://www.bloomberg.com/news/2012-04-29/ikea-joins-indonesia-rush-to-tap-demand-amid-6-5-growth-retail.html
