Indonesia’s economic corridors to boost trade

Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/9/25/business/12074964&sec=business

Published: September 25, 2012

PETALING JAYA: There are a lot of business opportunities for small and medium size enterprises (SMEs) in Indonesia as the country foresees an upcoming trend on industrial estate and commercial property stemming from its six economic corridors which support relatively easy business set-ups and a huge local market, said Real Estate Indonesia president Rusmin Lawin.

“The government is also supportive of the SME sector where we have a Ministry of SME. Our SME ratio is still very small at just below 1%.

“On the other hand, we are also the largest economy in South-East Asia, with a large and young population, have a rapid urbanisation rate and are rich in resources.

Rusmin: ‘The government is supportive of the SME sector.’

 

“In Greater Jakarta alone, we have a population of 28 million and 55% are between the age of 20 and 50,” he said on the sideline after his presentation entitled Indonesia Property: The Giant Awakens? at the CIMB Asean SME Forum yesterday.

Rusmin, in his presentation, listed the six economic corridors which were located in Sumatra, Java, Kalimantan, Sulawesi, Bali as well as Papua and Maluku.

“The objectives of the corridors are to increase connectivity via better infrastructure, equitable economic growth and improve human capital resources via science and technical education.

“Indonesia’s local governments are expected to establish more industrial estates throughout the country via collaboration with the private sector.

“Growth of land sales and prices are likely to continue on the back of persisting foreign direct investment influx and strong domestic investment,” he said.