Indonesia: poised right after China, India
Over at the CNBC’s Squawk Box segment they speak to Karim Raslan, columnist with The Edge Malaysia and CEO of consultancy the KRA Group, about Indonesia taking its rightful place next to the ‘BRICs’ emerging economies of note.
“Unlike Russia, the population is younger and growing,” he says. The economy is currently around US$750 billion and will probably hit $1 trillion by 2015, more if Indonesia can sort out its various physical infrastructure issues. “Imagine when the highways, the ports, are all up and running properly.”
He acknowledges there’s a great geographic disparity along with the economic one, but that recent decentralization of the economy has unleashed the ambitions of millions across Indonesia. The government has been “assiduous” in courting teachers and civil servants, bringing them into the mainstream economy with wage increases. There is also the question of the “push and pull” effect on Indonesia’s sensitive environment, as Indonesia balances its need to protect its natural resources with the voracious appetite of a fast growing economy.
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- Infrastructure, construction boom in Southeast Asia: Reuters