Indonesia in transition
Asean’s biggest economy has become an investment hot spot, but regulatory uncertainty, endemic corruption and skilled labour shortages are big challenges, say Thai companies.
- Published: 5 Nov 2012 at 14.00
- Newspaper section: Asia focus
Rapid economic growth but a sharp rise in income inequality. Well-connected industries thriving and the number of millionaires forecast to triple by 2015 — even as half of all households hover near the poverty line. Such are the contrasts in Indonesia today.
“Indonesia is in a huge transition period from being an inwardly focused, lower-end economy to one that’s evolving very quickly with average growth of about 6.5% per year,” says Somsak Pipoppinyo, director of the Finance, Industry and Infrastructure Directorate of the Asean Secretariat.
“Being a consumer market of 240 million people, with more than 10% of this number in the middle to upper-income class, the self-reliant economy has a lot to offer for new investors.
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