Investment in pharmaceuticals and textiles has grown above double digits since last year, with the potential to continue. Players are targeting the domestic and export markets.
Uncertainty over government policies related to the domestic market obligation have caused fluctuating share prices of several coal companies.
Net profit from the palm oil business lines of Astra Group and Salim Group slumped by 23.8 percent and 47.7 percent, respectively, in the first half due to declining CPO prices.
The government plans to remove the luxury goods tax for yachts to boost marine tourism in Indonesia, especially for the upper class or premium segment.
Foreign developers are entering Indonesia’s medium-sized apartment market with a large investment value even though the market in this segment is oversupplied.
Passenger car competition in Indonesia is tightening. In June 2018, the Toyota Avanza took the best-selling car position from the Mitsubishi Xpander.
The relaxation of the LTV policy is deemed less encouraging for property investment and does not benefit developers, as currently people prefer to keep their funds.
The video streaming business is becoming more promising as technology and lifestyles develop. Following the launch of Vidio in 2015, telecommunication companies have expanded into this business.
Bankers and developers are optimistic easing the LTV ratio will trigger demand for property and mortgages amid sluggish demand and a potential increase in loan interest.
Alibaba is to open a regional office for Southeast Asia in Malaysia. Indonesia needs to be more aggressive in attracting global investment funds to become an Asean digital centre.