Indonesia, the largest economy in Southeast Asia, has seen a slowdown in growth since 2012, mostly due to the end of the commodities export boom. During the global financial crisis, Indonesia outperformed its regional neighbours and joined China and India as the only G20 members posting growth. 

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Economic momentum disappointed in the third quarter, with GDP growth only edging up a notch to 5.1% annually. The uptick was driven by accelerations in fixed investment and government spending, while household spending was stable at the previous quarter’s reading and inventories dragged on the result. An improvement in the business climate supported the robust growth in investment, while the government’s ambitious reforms and infrastructure program have also borne fruit. More recent data point to a soft start to the fourth quarter: The manufacturing PMI fell in October and consumer confidence eased. In the political arena, the parliament approved the 2018 budget at the end of October. The targeted deficit of 2.19% of GDP is ambitiously smaller than the revised 2.92% deficit planned for 2017. Notably, while infrastructure remains a high priority, its share of expenditure was broadly unchanged from 2017—a contrast from the Widodo government’s previous budgets, which ramped up its share of expenditure.

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Indonesia Economic Growth

Growth is projected to gradually strengthen as government spending and investment pick up pace. Key risks to the country’s outlook stem from rising political noise ahead of the 2019 election or a sharp slowdown in China’s economy. FocusEconomics panelists see GDP expanding 5.3% in 2018, which is unchanged from last month’s forecast. In 2019, the economy is seen growing 5.4%

 

Stock Market

For the last two years, the JKSE index shows an upward trending with large volatility. For the past year, JKSE rises by 17.27%. The stock market itself is not open to foreigners without resident permit. But investors can always use CFDs to get exposure to the stocks. Also, there are ETFs listed in major markets.

 

The Jakarta Stock Price Index is a major stock market index which tracks the performance of all companies listed on the Indonesia Stock Exchange. It is a modified capitalization-weighted index.

 

Promising sectors:

Infrastructure and utility. Indonesia’s road, bridge and other constructions still have large improvement space. But the corruption of the government may pose a problem. But the one belt one road is also beneficial to the infrastructure of this country. Electricity firms.

 

Tourism:

Indonesia is attracting more and more tourists from all over the world. 巴厘岛，雅加达。

Average spending 10 days and 2000 dollars per person.

 

It is actually similar to Vietnam.

 

Besides, the mineral processing industry is promising as well due to the government policy of restricting the export of original mines.