Business Climate Assessed
AmCham Indonesia’s Services Committee meeting views positive – and negative – developments
By Peter Meyer
Monday, August 28, 2017
After the Ramadan and Idul Fitri holiday season, AmCham Indonesia’s Services Committee was back again with its regular breakfast meeting on August 23, bringing together a full house of 29 members representing a cross section of industries.
The Services Committee meets roughly every two months in a format that allows AmCham members with the broadest possible backgrounds and expertise to share insights. Areas like banking, insurance, IT, property management, hospitality, moving and freight forwarding, security, accounting, the legal sector, retail, consultants addressing a host of specialties, the automotive sector, and the airline business are all covered.
In a casual setting around the table, everybody is expected to contribute their latest observations regarding the business climate, and the regular presence of American diplomats and various NGO representatives also enriches breakfast.
While more detailed information is best had by attending the breakfasts, here are a few comments noted during the session.
So far, some businesses are seeing more optimistic growth. IT is flourishing and especially financial technology, or fintech, is booming in Indonesia, attracting young entrepreneurs from overseas and hopefully starting to drive economic growth. Despite the delays to be expected with the formation of the National Payment Gateway, this project is still pretty much on track, although there is plenty of disagreement in the sector with the government’s “mandatory” approach and restrictions on foreign equity that disadvantage multinational players.
Another optimistic sector is banking, with positive expectations that the sector is growing and credit losses are stabilizing.
The recently published E-Commerce Roadmap is also seen as a positive thing. Many members have been looking forward to this and were excited when it came out, as it will help give more legal certainty to the industry.
Overall, it was a very informative meeting for all participants.