indonesia finance

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Finance

Opportunities in Indonesia’s Banking Industry

The robust growth of the banking sector since its recovery from the Asian financial crisis is making the sector highly attractive to investors. This section looks at some of the current opportunities to be found in the burgeoning industry.

Capital Markets Overview

As the best performing index in the Asia Pacific region over 2010, Indonesia’s capital market is flourishing and will play a larger role in economic development. This section provides an overview of the key trends and the outlook for the bourse in the medium term.

Indonesia’s Islamic Banking Sector

Being the largest Muslim majority country in the world, the finance industry has high hopes for the future of the Islamic banking sector in Indonesia. This section looks at the main developments of the sector and some of the key opportunities within it.

The Prospects for Indonesia’s Insurance Industry

Offering a young population and a low penetration rate; Indonesia’s insurance industry is the fastest growing of the ASEAN. This section looks at the trends for the full range of Indonesian consumers from micro insurance to unit linked products.

Capital Markets: Widening the Local Investor Base

Despite the encouraging performance of Indonesia’s capital markets over recent years, the participation of domestic investors still pales in comparison to that of foreigners. This section looks at steps being taken to educate the public and widen the local investor base.

Methods of Entry into Indonesia’s Banking Sector

Indonesia’s banking sector is attracting global investor interest; this section looks at the strategic approaches that can be taken to enter the industry by covering the main laws and regulations, as well as the pros and cons of differing methods of entry.

Making the Banks Work for the Real Economy

While the Indonesian banking sector continues to book healthy profits, the high rate of lending has led to criticism over the industry’s contribution to real economic development. This section looks at the challenges being faced to improve lending.

Sector Snapshot - Banking

Contribution to GDP: 3% (2010)
Real Sector Growth: 27%
Number of Commercial Banks: 121; 4 State Owned, 10 Foreign, 14 Joint Ventures, 31 Non Foreign Exchange, 26 Private Export-Import, 26 Regional Development Banks.
Number of Islamic Banks & Units: 27
Total Assets: 3,065.8 trillion RP (2010)
Government Bodies: Bank Indonesia, Ministry of Finance. BAPEPAM-LK.
Relevant Law: Foreign ownership permitted up to 99%; shares of over 25% are subject to authorisation from Bank Indonesia.