Jakarta. Top executives and investment bankers are optimistic about business growth in Indonesia, particularly in the commodity and service sectors, citing strong economic fundamentals and political stability.
Economic growth in Indonesia has been supported by rising confidence, buoyed by the most stable political climate in the country since the ouster of strongman Suharto in 1998.
The economy expanded by 4.5 percent last year and is forecast to grow by 6.1 percent this year and 6.2 percent the following year, the central bank has said.
James Riady, vice chairman of the Lippo Group, estimates that Indonesia’s nominal GDP will be worth $8 trillion in the next 30 years, compared with $600 billion currently.
“That means many will do much better in the coming years, and that would be an opportunity for business,” he said.
He also noted that buoyant economic growth in Asia, including Indonesia, would attract more overseas funds.
“It’s logical that the capital will go here. We can see the trends, where the money goes - to banking, to telecommunication, to health care services, to IT and then to consumer sectors,” he said.
James, as well as Elvyn G. Masassya, investment director of state pension fund Jamsostek, and Edgar Ekaputra, president director of state fund Danareksa, believe the mining, agriculture, consumer and service sectors are likely investment targets in the coming years.
The Jakarta Globe is affiliated with the Lippo Group.