Tremendous opportunities in Indonesia’s infrastructure sector
Indonesia's large population and strong domestic demand is contributing to its positive growth outlook. With a population of 250 million, over 50% of whom live in urban areas, Indonesia has a large domestic market. And, a growing and affluent middle class supports GDP growth, where approximately 60% of GDP is derived from private consumption.
Infrastructure is a strong platform to support and sustain economic growth in Indonesia
Underpinning this positive outlook is the Government of Indonesia's pledge to improve infrastructure development. There is a significant need for infrastructure investment in roads, toll roads, ports, airports railways, water, and power plants. The Jokowi administration's plan for 2015-2019 increases infrastructure funding compared to the previous period by nearly US 10 billion dollars a year. Priority projects include the revitalization of 10 airports, a number of thermal and hydropower plants, toll roads, Mass Rapid Transit and the construction of new and upgrading of existing ports.
PwC's latest Capital project and infrastructure: Outlook to 2025 report has forecast that total infrastructure spending in Indonesia will rise from US$76 billion in 2015 to US$139 billion in 2025. Particularly fast growing sectors will include health and education, road, rail, and power generation/transmission. However, all sectors will grow substantially in dollar terms, including transport and energy more broadly.
The Government of Indonesia expects that between 2015 and 2019 the private sector will need to contribute around 30% of total funding. Many projects will therefore be offered under Public Private Partnership (“PPP”) arrangements.
If successful, this could kick-start a virtuous circle of improved infrastructure and faster economic growth.
EXHIBIT AT INDOMETAL 2018 TO:
- Launch new products for the first time
- Showcase the latest in technological innovations
- Demonstrate cutting-edge machinery
- Engage key decision makers and high net worth buyers
- Achieve on-site sales and procurement orders
- Tap on the burgeoning metal & steel market in Southeast Asia
indometal 2016 – Proven business platform for the region’s metal and steel industry, drew quality prospects and served as gateway to global trade opportunities in Southeast Asia
- Over 200 exhibiting companies from 24 countries displayed a wide range of machinery and solutions
- Top 5 reasons exhibitors chose indometal 2016 as their trade platform of choice:
- Networking with regular customers - 80%
- Representation, PR, image cultivation -77%
- Information on existing products - 76%
- Establishing new distribution channels - 72%
- Opening up new markets - 71%
- Acquiring new customers - 67%
- Exhibitors came from around the world, including Australia, Brazil, China, Germany, Italy, Japan, Norway, Singapore, South Korea, Spain, Switzerland, Taiwan, Thailand, USA, Vietnam, and many more.
Response at our stand has been very good, with my team talking to customers from around the region throughout the exhibition. I am confident our participation at indometal will help in our market expansion plans in Asia-Pacific and increase our footprint in these markets.
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