The world is increasingly erratic. In the past two years, we have witnessed a trade war between the United States and China whose effects are broad and can be felt by all countries.
Digital Economy
Expanding the middle class can help Indonesia grow faster and share prosperity more broadly across the population, according to a report released today by the World Bank.
“We know that financial literacy has increased from 29.7 percent in 2016 to 38.03 percent in 2019. It has indeed increased, but the figure is still low.”
“Access to credit is a huge problem for Indonesian millennials, and we are solving for it through convenience, transparency and fairness.”
Telkom has blocked Netflix for its 112 million data customers on its network – though the company’s public relations officer said it “is not blocked, it cannot be accessed”.
“It would take 50 years to revise the laws one by one… this will be a big leap forward for our services to the people, businesses and small and medium enterprises which can contribute significantly to the economy.”
With the completion of the Palapa Ring, investors should expect new income streams for digital businesses as Indonesia’s digital economy rapidly expands with the increased high-speed internet access.
So far, WeChat Pay is the only foreign digital wallet service that has been able to obtain permission from BI to operate in Indonesia through a partnership with Bank CIMB Niaga.
Despite the forecast of slow global economic growth in 2020, Southeast Asia is expected to enter an economic golden age that will take the region well on the path to become the world’s fourth-largest economic bloc.
President Widodo’s determination to slash the cost of doing business in Indonesia could become a test of his political capital, with business interests pitted against powerful nationalist and pro-worker groups.
Indonesia is set to overhaul its nearly two-decade old labor law as Jokowi seeks to transition the economy from a commodity reliant one into a manufacturing hub.
Challenges like Indonesia’s inadequate infrastructure facilities coupled with a big income gap in its population throw up open significant opportunities for companies and investors alike.
Weaning fishermen off Facebook or engaging in “brutal” competition with the state – it all comes with the territory for Dian Siswarini, the woman running Indonesia’s second-largest mobile company.
Luhut Pandjaitan said that Japanese conglomerate Softbank offered to cover the cost of Indonesia’s new capital city development, which would likely reach USD 30 to 40 billion.
The private sector, including technology companies, must actively drive social and economic inclusion of the 14 per cent of Asean’s population that still lives below the international poverty line.
“Indonesia has a huge market for this segment… Student loans are relatively untouched by financial services and technology, so we think that this is the right time for us to address this.”