Indonesia: Daman Junikatriawan
Indonesia is one of the region’s most important countries and on track to become a key global player. With nearly 250 million people, it has the world’s fourth largest population. However, the size of Indonesia is just one aspect of its promise. Indonesia’s demographics are incredibly favourable with more than 60% of the population aged 20-65, or of working age. Another 27% of the population is aged below 15, meaning the economy has enormous potential for labour productivity gains as this cohort moves through education and brings a higher skill set into the labour force.
The growing size of the working age population, and the labour force with it, is just one part of the equation. The average earning of the labour force is increasing at fast clip. Monthly minimum wages increased by around 20% in 2013 and increases for 2014 were above 20%. With the aggregate income formation dynamics so strong, the proportion of the population moving into so-called “consuming class” is growing very strongly. In recent years the size of new middle class has grown steadily, constituting an increasing potential market for products such as cars, motorcycles, electronics devices, financial products and many other consumer goods. Overall, consumer share of GDP is likely to be rising as the consuming class in Indonesia grows.
Indonesia also has a vast amount of natural resources, such as land, water, minerals, metals and so on. All of these natural resources contribute to Indonesia’s standing as one of the leading commodity producing countries. Exports account for around 25% of Indonesia’s GDP - approximately 50% of these exports are commodities such as coal, oil, natural gas, copper, CPO, coffee, rubber, cocoa and tea.
Indonesia is a country of archipelago and nicely placed geographically to take advantages of large domestic and international trades. Located just a few miles away from China, Indonesia’s position is now becoming very important as a big player in the world trade system in the globalisation era. With Indonesia’s infrastructure of seaports gradually being improved, it will enable the country to make more of its advantageous position in one of the world’s most dynamic trading regions.
Daman currently works as an Emerging Markets FX and rates trader at ANZ Banking group. Prior to joining ANZ, was working at Barclays Capital as an interest rate trader and at DBS Bank as a bonds trader and ALM trader. Daman took International Securities and Investment Banking at the ICMA Centre, part of Henley Business School, graduating in 2006.