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.
2. Asia 5
Bringing you a flavour of business
trends in Asia...in just 5 minutes
A Futures Coaching initiative
www.futurescoaching.com
3. surprising
A country of 238 million - 4th most populous globally
Living on over 17,000 islands
The biggest Muslim nation in the World
The 15th largest economy by PPP
3rd fastest growing GDP in G20
4. growth
Growth rates are staggering and
remind me of levels seen in the
West in the 1960s
GDP is forecast to grow at over
6% to 2015
A variety of markets are
accelerating:
- 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. on the ground
Three 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 left
by cars' aircon
2. The motorbike is the key symbol of freedom and success;
five on a bike is not uncommon
3. 15 years ago, Indonesian business meetings were excited
& undisciplined; today's sessions are intense & professional
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. infrastructure
100 new cars appear on Jakarta's streets every day
Despite this, compared to 12 years ago,
I thought the traffic flowed more smoothly
However, 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. government
is influential
Indonesia's
economy
is strongly
influenced by
the government
Over 164 enterprises are run by the State
and the prices of many basic products
such as rice, electricity and fuel
are administered by the government
9. traditional
Overall, Indonesia remains conservative in its values
There will be protests from the Islam Defenders Front when Lady Gaga –
accused of destroying the nation's morals - arrives in June
Women are, on average, marrying younger – many under 20
84% think that abortion is 'never justifyable': homosexuality is similarly
rejected by 89% of the population (source: World Values Survey, 2006)
10. tourism
Estimates put the number of tourists visiting Indonesia at 8 million for 2012
For many, Bali is the venue of choice but the growth trend
is for business tourism
Business-trip tourists will count for 3.2m this year and there is excitement
around Indonesia's 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. health System
The limited number of health workers affects the delivery of health services
in 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. dark side
The US Trade Representative put Indonesia
on its 13-country 'Watch List' for violating
intellectual property rights and copyrights
Local 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!
14. What is Futures Coaching up to
during May 2012?
Helping reinvent the supermarket proposition
Preparing an international innovations project for a
industrial global brand
Building a Key Note for NGO Fundraisers in Geneva
Pitching to build an international development strategy
for a major European agency
Participating in a brand positioning workshop in Jakarta
Networking in Singapore
Researching banking technology trends
Pitching some new book ideas to Pearson
15. LONDON • PARIS
Website: www.futurescoaching.com
Blog: http://futurescoaching.typepad.com
Email: chris@futurescoaching.com