Domestic capital markets key to closing long-term investment gap - The Jakarta Post - Jakarta Post

Indonesia has become the world’s seventh-largest economy on the current Purchasing Power Parity (PPP) basis and one of its primary growth engines, powered by a young and innovative workforce — the world’s fourth-largest — and an inward flows of foreign direct investment. With President Joko "Jokowi" Widodo’s new administration in place, there is a sense of optimism that Indonesia can fulfill its economic potential and become the world’s fourth-largest economy by 2050. Achieving that milestone depends to a large degree on financing massive long-term investments in physical and social infrastructure, from roads and power to health care and education. Financing those investments sustainably will require a dramatic expansion of Indonesia’s domestic financial system, especially the sectors that can make long-term investments, such as l...

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