A fresh breeze is blowing on the face of the Indonesian economy. One that is characterized by the projected growth of a new class of Indonesian consumers that seems promising in the years ahead. This new consumer force certainly brings a positive effect on Indonesia's economic growth as domestic consumption has always been a pillar of economic support for the country. Agung Budiono, analyst at Jakarta-based Pol-Tracking Institute, takes a closer look at the topic.
The Business Columns section of Indonesia Investments provides in-depth columns that exhibit an analysis regarding subjects that are both important for understanding the Indonesian business climate and have high news value in the current state of Indonesia's economy. As a whole these columns should provide the reader a thorough and detailed picture of multiple Indonesian business sectors and be a source of ideas or inspiration to invest - or not to invest - in specific sectors of the Indonesian economy.
Whenever the topic of tourism in Indonesia is touched upon, most people will instantly think of Bali. This small but famous island harbors all sorts of entertainment that will appeal to various segments of international tourism: beautiful landscapes, Balinese Hinduism, lively nightclubs, beaches and more. But apart from Bali - and despite the fact that Indonesia has much to offer on other islands - the country has disappointed in attracting a large amount of foreign tourists so far.
Last February, the Indonesian government, through its Ministry of Trade, issued new rules with regard to Indonesia's franchise sector. This new regulatory framework - formulated in Ministry of Trade Regulation No. 7 Year 2013 on Partnership Development in Franchise Business Services for Food and Beverages (Permendag Nomor 7) - will have an impact on Indonesia's food and beverage services as limitations are set on the amount of outlets.
Within a timespan of a few years only, Matahari Department Store has shown impressive growth. Its market capitalization increased from IDR 146 billion (US $15 million) in late 2008 to a current IDR 31.95 trillion (US $3.28 billion). The company, which sells fashion apparel, accessories and beauty products, is now the largest company in Indonesia's retail sector, outperforming other giant retailers, such as Alfa Supermarket or Hero Supermarket.
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