The fifth edition of the Indonesia Hotel Watch highlights Indonesia’s current hospitality landscape, analysing domestic and international demand and hotel supply dynamics of classified and non-classified hotels.
Indonesia is one of the fastest growing economies in Southeast Asia with a population of around 255 million inhabitants in 2015.
While 2016 has been an uncertain year on a global level with the United States (US) presidential election leading to a slowdown in trade and economic deceleration in China, Indonesia’s economy picked up as the local government initiated major infrastructure projects and inaugurated policies to ease restrictions on foreign investment.
Indonesia’s real Gross Domestic Product (GDP) expanded 5.1% in 2016, from 4.9% in the previous year. Working towards economic growth, the government has put in effort to improve the country’s infrastructure and strengthen commercial and strategic ties with key countries in Asia.
Indonesia is boosting private and government investment with improved fiscal policies, driving growth in private consumption and is export trading. Thereby, the Real GDP is expected to grow in the mid-term.
Inflation & Currency Exchange
Indonesia’s Consumer Price Index (CPI) fell sharply from 6.4% in 2015 to 3.5% in 2016, recording the lowest growth since 2012.
Indonesia was strongly impacted by the decrease in commodity prices (crude oil, crude palm oil & coal), a sluggish global economy, and in particular China’s slowing economy in 2016. With commodity prices expected to recover in the midterm, Indonesia’s CPI is expected to range between 4% and 5%.
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Victoria Chan is a Senior Analyst with HVS Singapore. She graduated with a Bachelor of Science degree in International Hospitality Management from École hôtelière de Lausanne.
During her time with HVS, she has covered market research, feasibility studiesandvaluations acrossregionalmarkets,that include Indonesia, Malaysia, Maldives, New Zealand, Papua New Guinea, Thailand, South Korea and Singapore For further information, please contact: email@example.com