Key View

• The importance of Indonesia as an emerging market opportunity for multinational pharmaceutical firms will remain over the coming years.
• Protectionist policies employed in Indonesia will however pose challenges to drugmakers.
• Domestic pharmaceutical firms to present significant competition.

Forecasts

As the largest medicine market

Key View

A growing trend towards more Westernised foods has emerged in Indonesia, as a result of a growing middle class located in urban areas with greater access to more food options. This is gradually pushing Indonesians towards products that traditionally are not staple parts of their diets. Middle income consumers are dining out more

Key View

• High-growth potential of Indonesia's pharmaceutical market represents a significant opportunity.
• With the introduction of a health insurance scheme imminent, demand for medicines will spike.
• Market is far more appealing to generic drugmakers and the growth of the domestic industry poses a risk to market-share growth for foreign firms

Key View: Indonesian President Jokowi’s pick of a prominent Muslim cleric as his running mate is likely to aid his reelection bid at the April 2019 presidential election, by dulling the opposition’s campaign against him on the religion front. However, this raises the prospect of political Islam gaining traction in the country. We expect the

Key View:

• In a bid to expand its portfolio, ride-hailing app Grab is partnering with HappyFresh to enter the online grocery delivery service market in South East Asia via Indonesia, Malaysia and Thailand.
• This strategic move would allow Grab to become an "everyday app", used by consumers for different needs and throughout the day, while also

Key View: The upcoming elections in Indonesia, scheduled to be held in June 2019, pose a downside risk to the construction sector's growth outlook. China-backed projects are particularly vulnerable if foreign investment and the high levels of debt associated with infrastructure projects become politically contentious issues over the coming months.

Jakarta and its surrounding provinces of West Java and Banten will continue lead Indonesia's construction industry in terms of growth and value, with strong project pipelines across the transport, utilities and real estate sectors. Infrastructure growth in less-developed provinces on Sumatra, Kalimantan and Sulawesi will be focused on improving

Indonesia's proposal to introduce taxes to clamp down on speculative land purchases and cool land-price increases is a potential threat to developers, many of which own large plots of land, says Fitch Ratings. Although more recently, the government has indicated developers may not be targeted. 

The government says speculative land purchases have