Surprising Indonesia

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Indonesia is on an accelerating growth path with huge potential for business into the future.

It could go faster still if only some structural downsides were fixed.

Published in: Business, News & Politics
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Surprising Indonesia

  1. 1. Indonesia:10 Insights from asurprising nation!
  2. 2. Asia 5 Bringing you a flavour of business trends in Asia...in just 5 minutes A Futures Coaching initiative www.futurescoaching.com
  3. 3. surprisingA country of 238 million - 4th most populous globallyLiving on over 17,000 islandsThe biggest Muslim nation in the WorldThe 15th largest economy by PPP3rd fastest growing GDP in G20
  4. 4. growthGrowth rates are staggering andremind me of levels seen in theWest in the 1960sGDP is forecast to grow at over6% to 2015A variety of markets areaccelerating: - flatscreen TVs + 24% Y-on-Y - washing machines + 33% - property developer Ciputra saw +84% sales - sales volumes at Indocement are up 25% (source: Jakarta Post)
  5. 5. on the groundThree observations from my trip to Jakarta last week:1. The nation still benefits from being a low wage economy:e.g. hotel workers are on hand to sponge away water leftby cars aircon2. The motorbike is the key symbol of freedom and success;five on a bike is not uncommon3. 15 years ago, Indonesian business meetings were excited& undisciplined; todays sessions are intense & professional
  6. 6. rice bowl Approximately 90% of the Indonesian population is still engaged in agriculture Whilst Indonesia has become self sufficient in rice, it has now become a net importer of oil
  7. 7. infrastructure 100 new cars appear on Jakartas streets every day Despite this, compared to 12 years ago, I thought the traffic flowed more smoothlyHowever, everything seems a one hour taxi trip away and when it rains, traffic slows to a crawl Jakarta needs huge investment in public transport before it can start to function as an efficient City
  8. 8. government is influential Indonesias economy is strongly influenced by the governmentOver 164 enterprises are run by the Stateand the prices of many basic productssuch as rice, electricity and fuelare administered by the government
  9. 9. traditional Overall, Indonesia remains conservative in its valuesThere will be protests from the Islam Defenders Front when Lady Gaga – accused of destroying the nations morals - arrives in June Women are, on average, marrying younger – many under 2084% think that abortion is never justifyable: homosexuality is similarly rejected by 89% of the population (source: World Values Survey, 2006)
  10. 10. tourismEstimates put the number of tourists visiting Indonesia at 8 million for 2012For many, Bali is the venue of choice but the growth trendis for business tourismBusiness-trip tourists will count for 3.2m this year and there is excitementaround Indonesias potential in the MICE market (Meetings, Incentives,Conventions and Exhibitions)Hotel Mulia Senayan, where I stayed,has a Grand Ballroom big enough for 4000,13 meeting rooms and 3 board rooms
  11. 11. health SystemThe limited number of health workers affects the delivery of health servicesin Indonesia. In 2006, the ratio of general practitioners was 19.9 per 100,000 population while ratio of midwifes per 100,000 population was 35.4 Both are very low by international standards
  12. 12. dark sideThe US Trade Representative put Indonesia on its 13-country Watch List for violatingintellectual property rights and copyrightsLocal authors like Andrea Hirata complain of huge lost sales due to pirating Indonesia is ranked 100th in the 2011 Corruption Index: leaving the country last week, a public official politely asked me for a bribe!
  13. 13. Enhance your research join forces with
  14. 14. What is Futures Coaching up to during May 2012?Helping reinvent the supermarket propositionPreparing an international innovations project for aindustrial global brandBuilding a Key Note for NGO Fundraisers in GenevaPitching to build an international development strategyfor a major European agencyParticipating in a brand positioning workshop in JakartaNetworking in SingaporeResearching banking technology trendsPitching some new book ideas to Pearson
  15. 15. LONDON • PARIS Website: www.futurescoaching.comBlog: http://futurescoaching.typepad.com Email: chris@futurescoaching.com

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