Both Prabowo Subianto and Joko Widodo of the Indonesian presidential
election have pledged to spend big on transport links including roads, railways
and ports – Benefiting retailers who struggle to reach customers within remote regions
of the island nation. Whilst consumer companies within the fourth most populous
country of the world, trailed builders as the benchmark stock index elevated by
18% this year, the Indonesia Food and Beverage Producers Association claim
sales could be as much as 50% higher, if only access to rural areas were
improved.
Aberdeen Asset Management, which oversees approximately
$541billion, view consumer companies in Indonesia as a way of indirectly
playing the infrastructure. This is as they claim any pro-infrastructure policy
would make the economy more competitive, benefiting consumers.
London based research firm, Kantar Worldpanel forecasts
Indonesia to gain 80 million new consumers over the upcoming 15 years. This is
as Indonesia’s economy is forecasted to grow by 5.7% each year through 2016.
