IN CHARTS: best yet to come for Indonesia

Yet a look at Indonesia’s broader economy reveals room for improvement in all the ingredients of GDP (manpower, financial access, material, governance), meaning there’s potentially even better times ahead for the country. 

“[Indonesia’s growth is] particularly impressive considering the relatively slow growth in most global economy growth engines.” 

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The country’s demographic dividend is supported by a growing workforce, stronger focus on education and improvements in financial inclusion (although less than 40 per cent of adults have bank accounts).

In favour

Ratings agencies are beginning to take notice, with Standard & Poor’s moving last year to update the country’s sovereign rating to BBB-.

Indonesia is now seen by many as an attractive investment destination for financial assets (equities, bonds, loans) as well as direct investment (FDI).

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Three of the top 10 ASEAN banks by market capitalisation are Indonesian. These banks have both robust liquidity and robust capital.

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Bright spot

Indonesia’s syndicated-loan market was one of the few bright spots in the sector across the Asia Pacific region for 2017, up 36.8 per cent at September 2016 on the back of a few big-ticket transactions.

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Ronny FRM is Director of Loan Syndications & Specialised Finance at PT Bank ANZ Indonesia