Indonesia Services Sector

Services

The Outlook for Indonesia’s ICT Sector

Indonesia’s spending on ICT has been growing dramatically to make it the largest spender in South East Asia and ranked 19th globally. This article looks at some of the key trends within the sector and prospects for further areas of growth in the future.

Indonesia’s Tourism Industry and the Creative Economy

Indonesia’s creative economy provides a unique selling point for the country as it seeks to carve out a position in Asia’s highly competitive tourism market. This section looks at the government’s new initiative to combine the development of the tourism industry with the creative economy.

An Overview of Indonesia’s Telecommunication Sector

Indonesia’s telecommunication sector is a highly competitive, rapidly changing and dynamic industry that has come to reflect significant shifts in social behaviour and interaction. This section provides an overview of the sector and the latest trends impacting the industry.

Improving Internet Access in Indonesia

This section looks at the Indonesian government programs in place to improve the country’s internet penetration by providing greater access to regions outside of Java such as the Palapa Ring Program which will create a nationwide fibre optic network.

Transport in Indonesia: Roads & Railways

Indonesia’s land transport takes the bulk of both passengers and cargo, yet it is under strain and in need of a major overhaul under the National Long Term Transport Sector Plan. This section covers some of the planned projects including the MRT in Jakarta.

Indonesia’s Commercial Airline Industry

As the 12th largest aviation market in the world to date, Indonesia’s Commercial Airline Industry has an exciting future ahead of it. This section looks at some of the challenges faced by the sector as it braces itself for increased competition from the ASEAN Open Skies Policy in 2015.

Indonesia’s Shipping Sector

This section provides an overview of the developments in Indonesia’s shipping industry and reforms that are underway to improve efficiency in the logistics sector following the introduction of cabotage and the liberalisation of port management as of 2011.

The Rise of Modern Retail Outlets

Indonesia is gaining recognition as a major consumer market considering that domestic consumption accounts for over 60% of GDP. This section looks at how modern retail outlets such as hypermarkets and malls are gaining market share among Indonesian consumers.

Indonesia’s Creative Industries

Indonesia’s rich cultural diversity has given rise to a rapidly growing creative industry that is set to have an even more prominent role in the future as the country transitions to a knowledge based economy. This section looks at how the government is supporting innovation in this sector.

Challenges and Opportunities in the Creative Industry

Indonesia’s large and youthful domestic market is highly adaptive to new trends and technology. This section looks at some of the opportunities in the sector given the revision of the Negative Investment List and the challenges for new entrepreneurs in protecting their intellectual property.

Tourism: Untapping the Potential

Long known for the idyllic beaches of Bali; the rest of the Archipelago has yet to attract the tourism numbers that it deserves. This section looks at some of the obstacles holding back the tourism sector to date and reforms being undertaken to improve logistics and human resources.

Indonesia Services Snapshot

Contribution to GDP: 39.1% (2011)
Real Sector Growth: 6.7% (2011)
Number Employed: 45 million (2010)
Main Areas: Tourism, Retail, Transport, Media, Telecommunications, Finance, Hospitality.
Government Bodies: Ministry of Trade, Ministry of Culture & Tourism, Ministry of Transportation, Ministry of Manpower & Transmigration.