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Indonesia Infrastructure Report Q3 2015

142 Pages BMI Research May 06, 2015 SKU: BMI5552898

Indonesia Infrastructure Report Q3 2015

BMI View: Growth in Indonesia's construction and infrastructure sectors will accelerate in 2015,underpinned by political stability, reform momentum and easing monetary policy. However, we highlightthat political threats and persistent land disputes continue to pose downside risks to our outlook. WithPresident Joko Widodo's vision of establishing Indonesia as a 'maritime axis', transport infrastructure willremain in focus, particularly the development of ports.

Key Trends And Developments

We believe growth in Indonesia's infrastructure sector is gaining traction and revise our real growthforecast to 7.0%, up from 6.0% in 2015. However, we highlight this is still conservative and is slowerthan the 10-year historical average growth rate of 7.2% per annum (between 2005 and 2014).

Following the election of Joko Widodo (commonly known as Jokowi) as President in October 2014, thestable political climate bodes well for the country's investment outlook. Coupled with the fullimplementation of the land acquisition bill beginning 2015, we believe this will boost infrastructureactivity.

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Indonesia Infrastructure Report Q3 2015

BMI Research
May 06, 2015

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