Indonesia Economy

While the Republic of Indonesia is just over seven decades old in its current form, the South-east Asian nation of more than 17,000 islands has a much longer history under other names. The name Indonesia was first used in 1850 by British anthropologist James Richardson Logan in referring to the extensive group of islands that was known at the...

Long considered South-east Asia’s economic powerhouse, Indonesia has seen growth decelerate in recent years as commodities prices fall and demand in China weakens, while currency depreciation in light of US monetary easing has impacted its manufacturing and industrial sectors, as well as small and medium-sized enterprises (SMEs).

Standing as a critical pillar of the Indonesian economy, small and medium-sized enterprises (SMEs) are the country’s largest employers and a significant contributor to GDP growth, although they have been hit by Indonesia’s economic slowdown, with many struggling to access credit and export markets, in addition to feeling the pain of a...

As Indonesia grapples with an economic slowdown, decreased export revenues and subdued GDP growth, the creation of new jobs – particularly permanent, full-time positions – is not expected to keep pace with the over 2m Indonesians who enter the labour force each year. The country’s greatest potential economic strength, its powerful domestic...

In a bid to support flagging economic growth, the administration of President Joko Widodo has rolled out a host of stimulus packages in recent months, offering support to critical industries, investment incentives and regulatory reforms aimed at greatly improving the ease of doing business.

Indonesia’s central bank, Bank Indonesia (BI), shifted its strategy in 2015, moving away from policies that had defended the floundering rupiah against further depreciation after ongoing devaluation between 2013 and 2015. In January 2016 the bank surprised stakeholders with a decision to cut interest rates, making further cuts in February and...