Saturday, February 2, 2013

ECONOMY OUTLOOK of INDONESIA




Palm tree and coal


Indonesia Republic may not known whereabout for some readers compare to Singapore, Thailand, Japan or The Philippines. But from business point of view this country offer many business opportunities such as in Finacial market, Capital market nor Direct Investment.

Investment in Oil & Gas, Coal, Palm Oil are tree mayor products and highly Capital intensive make a very good fortune in the long run that Investors most welcome.

Manufactures such as textiles, shoes etc also welcome, but since it's labor intensive and the wages not as low as before, the labor organization push to a higher wages, should take carefull calculation before Investment done.

The opportunity base on the Economic growth, infra structure and safety. In Asia countries, Indonesia categorized in the bracket of the best economic growth after People Republic of China. Economic growth is 6,3% in year 2012. Not many countries in the World with such achievement in between slow Global economic growth like in Europe.

In the last 8 years in a row - except 2012 - Balance of Trade were positive, Export value more than Import, make Reserves of Foreign exchange in the hand of Central Bank not less US.$ 100 billions and keep the exchange rate stable, even National budget had to set huge amount of $ 30 billions for energy subsidize.

Capital market in the Capital, Jakarta is one of emerging market with high return in the World. Foreign share holders occupy the biggest share and Domestic players take advantage and follow foreign traders forecast. If any case foreign traders withdraw their capital suddenly, don't too worry, the market won't collapse, since Central Bank keep Foreign exchange reserves over US $ 100 billions to intervere the market.

Jakarta Financial districtIn order to achive high economic growth, Authority take firm controle of inflation as low as 4,3% and rate of interest relatively low 5,75 %. In such rate loan expansion of the Bank industries quite high as 23% in 2012.That is why some citizen categorized in the bracket of medium and high income. In the other hand most citizen are in low bracket and poor. But don't too worry about unrest, security is under controle.

Indonesian recently is not under develop or traditional country any longer. It's modern country as your country. Welcome.


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