With the GDP expected to reach US$ 1trillion this year, Indonesia is the largest economy in Southeast Asia. Much less affected by the global financial crisis compared to its neighboring countries, Indonesia’s economy grew by 6.3% in 2012, making it the fastest growing G20 economy after China.
Moody’s (Baa3) and Fitch (BBB-) had uplifted Indonesia’s credit rating to investment grade status. The rating reflects Indonesia’s resilience to the global financial crisis, improving government and external credit-metrics, and an ability to manage domestic political challenges. Further investment boom is expected, which will drive the country’s economic development.
With 240 million population, Indonesia forms the 4th largest populated country with steadily increasing buying power. Strong consumption growth largely driven by the country’s large, young population, of which over 53% lives in urban areas. Incomes are rising steadily, and a growing and affluent middle class is driving consumption.
The growth in consumption and changes in consumption patterns are presenting many opportunities for Indonesian companies.
Indonesia represents as the third fastest growing internet users country, wide upside opportunity exist as the penetration is currently capped at low level. We are in the right momentum to grow as critical-mass adoption of technology begins to be achieved at 20 percent to 25 percent household penetration.