Rani Jarkas — Indonesia’s Economy is Asia’s Emerging Market
No doubt about the fact that Indonesia is a developing country that comes across as a nation with great economic potential; a potential that hasn’t been disregarded by part of the global community. Rani Tarek Jarkas, Chairman of Cedrus Investments, a global boutique investment firm acknowledges the fact that Indonesia is the largest economy in Southeast Asia.
Indonesia is a country loaded with various attributes that put this Asian nation in a great position for highly advanced economic development. Adding to it, there has been tremendous support from the central government to restrict the traditional reliance on (raw) commodity exports in recent years even though it was raising the role of the manufacturing industry within the economy.
Regarded as the largest economy in Southeast Asia, Indonesia happpens to eb one of the emerging market economies of the world. In fact, it’s also a member of G-20 major economies and classified as a newly automated country. By nominal GDP it happens to be the 16th largest economy in the world and is the 7th largest in terms of GDP (PPP). Indonesia is still largely dependent on domestic market.
Rani Jarkas believes that the constant downturn in demand for commodities — the fuel for the country’s economic growth in the past decade — has led to curbing GDP growth.
Indonesia was often mentioned as a suitable candidate for being included in the BRIC countries (Brazil, Russia, India and China). Another set of booming economies which seems to be grouped under the acronym CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa) — also got attention as it members have sensibly sophisticated financial systems and populations growing with quick pace. Many years ago the combined gross domestic product (GDP) of the CIVETS was foreseen to account for half the global economy by 2020.
Indonesia is a market economy in which the state-owned enterprises (SOEs) and large private business groups play a very essential role. There are several hundreds of various privately-held business groups in the country (together with the SOEs) that have upper hand on the domestic economy. Wealth’s reduced at the top of society (and there are hardly any close links between the corporate and political top of Indonesia).
Rani Tarek Jarkas understands that the micro, small and medium sized companies together accounting for 99% of the total amount of enterprises (active currently in the country) are crucial as well. This is because they account for nearly 60% of gross domestic product (GDP) of the country and create jobs to around 108 million people in Indonesia.