Friday, December 28, 2012

Y U NO OPTIMISTIC?

This is my answer for Quora question:
Indonesia: Why are some reasons to be optimistic about Indonesia's future?
Btw, checkout Quora. They're awesome!

McKinsey Global Institute predicted that Indonesia can be #7 biggest economy in the world by 2030 (from #16 today). The complete report listed several supporting trends such as:

1. The rise of Asia
Over the next 15 years, Asia is predicted to contribute 75% of  the additional 1.8 billion members of global consuming class. Indonesia already seeing its exports to other Asian economy accelerated strongly in recent years (15-20% p.a.). This will continue once the global economy pick up.

2. Urbanization
71% of Indonesians will be living in urban areas, up to 53% today. The cities can make up 86% of the GDP, up from 74% today. Second tier cities such as Pekanbaru, Makassar, Pontianak will grow the most, with more than 7% rates annually. 

3. Growing working-age population
Indonesia population could grow into 280 million from 240 million today, and the demography will remain positive until 2025. That is, the working force will be the main portion of the overall demography

4. An emerging digital and technology-driven nation
Internet access is growing at 20% annually at Indonesia, and expected to reach 100 million users in 2016. This greatly improves connectivity.

With those data, barring catastrophic scenarios, to borrow the trade minister Pak Gita Wirjawan saying, it is very difficult for me not to be optimistic about Indonesia's future

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