Indonesia is one of south-east Asia’s fastest growing economies, but its banking market is still in the embryonic stage, with sectors from investment banking through to microfinance shallowly penetrated. This means, however, that the vast Indonesian archipelago presents foreign and local banks alike with strong growth opportunities.
While headline economic growth in Indonesia may slow in 2014, with predictions of gross domestic product growth varying from Citi expecting 5.3% to local bank Danamon predicting a more sedate 2.9%, the country's longer term growth prospects are more impressive, with the emergence of a middle class set to drive growth for years to come.
