How Far can Indonesia's Consumption-Driven Growth Go?

loading A shopping mall in Indonesia.

At his lecture in Penang for the Asean Coalition for Clean Governance (ACCG) on December 4, 2012, former Indonesian president Dr BJ Habibie presented statistics about Indonesia's growing economic strength. The numbers were impressive, showing Indonesia’s rapid growth and vast GDP, both in leading position in the Asean region. But is this growth sustainable?

The economic boom is visible in Jakarta, where construction leads the capital city's entry into a 21st century economy; the drive from the airport into the central city is dominated by high-rise shopping and office complexes. Indonesia wants to be the second I in “Briic”, and is using its natural riches to become one of Asia’s newest engines of growth.

It is indeed natural resources that are driving economic growth both within Indonesia and in Asia as a whole; Indonesian coal powers many of China’s industrial plants, and its minerals make Asia’s expanding tech sector possible.

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