Broad prospects for Indonesia's industry
The Blue Book focuses on economic themes and analyzes Indonesia (hereinafter referred to as Indonesia)'s macroeconomic and major industrial development dynamics, competitiveness and cooperation space from the perspective of comprehensive analysis of government policies, industrial structure, leading enterprises, and political culture. The new Indonesian government's series of measures to promote economic development have achieved some obvious results, but it still faces many challenges. The main challenges and risk factors are as follows: First, the policy level, including the entry restriction policies of some industries, the tendency of "wider exports and stricter imports" in foreign trade policies, policy stability and internal consistency issues. The second is the social and cultural level, including communication costs and business challenges caused by cultural differences, and the improvement of the business environment while still facing the challenge of corruption. The third is the challenges faced by investment cooperation in the field of infrastructure construction, including policy coordination issues, the ability of local state-owned partners, and construction land issues.
Indonesia's economic performance may be better than expected
The Blue Book believes that although Indonesia’s economic growth is facing export pressures and budgetary investment and financial constraints, continuous infrastructure improvements, especially the deeper economic and trade cooperation with China under the “Belt and Road” framework, can significantly increase energy supply, Logistics, transportation and processing and manufacturing capabilities, and the effect of strengthening the internal driving force of Indonesia's economic growth will gradually appear, and Indonesia's economic performance may be better than expected.
The financial industry has more room for development
The Blue Book pointed out that Indonesia's financial system is relatively underdeveloped and the coverage of financial services is still low. In the banking market, the four major national banks accounted for about half of the market share, and their scale growth has slowed in the past two years; foreign investment in the securities market and insurance market is relatively high. The stock market has seen a wave of mid-term rises since September 2015, but due to the external environment, there has been a negative net investment expansion in foreign capital in the market, indicating that foreign investors are worried about the market. As the current scale is still relatively small, and the government is determined to promote financial development, especially the expansion of banking and insurance coverage, there is a large room for industrial development.
Internet access and online retail will become key industries
The Blue Book pointed out that Internet access and online retail will develop into key industries in Indonesia; network hardware will maintain stable development with little fluctuation; software, mobile terminals, and information technology services will usher in a certain degree of rapid growth and may become new Industry growth point; telecommunication services may become a pillar industry of the information and communication industry. ,
The aviation industry has great potential for development
The Blue Book pointed out that with the rise of low-cost airlines and the increase of wealthy middle-class families, and most major cities in Indonesia are separated by mountains and seas, land or sea transportation takes a long time. Unique geographical conditions make Indonesia's aviation industry possess Huge potential for development. According to the forecast of Marketline, an international market research organization, by the end of 2020, Indonesian air passenger traffic will increase to 143.5 million passengers at a compound annual growth rate of 8.64%. The growth of domestic routes is particularly strong. It is estimated that by the end of 2020, the turnover of the aviation industry will increase to 15.265.7 billion US dollars at a compound annual growth rate of 15.33%.