Indonesia

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Chapter | Trade & Investment from The Report: Indonesia 2015

With full-year realised foreign direct investment (FDI) hitting a new record in 2014, Indonesia’s trade and investment flows have improved considerably over the last 10 years. The capital account deficit was brought back under 3% that year, and at the end of 2014 and in early 2015 the country reported a trade surplus after years in the red. Due to stronger economic growth and new policy...

Chapter | Country Profile from The Report: Indonesia 2015

With the July 2014 election of a new president, Joko Widodo, a new mood of confidence and optimism is palpable in Indonesia, the world’s third-largest democracy and most populous Muslim-majority nation. Hopes are high that a new dynamism in Jakarta will see many long-standing challenges addressed. At the same time, the country’s economic expansion is continuing apace, with a large, young...

Indonesia is transforming from a resources- and consumption-based economy to a more manufacturing- and investment-oriented one, working to build an industrial base that will allow it to reduce its dependence on imports and keep more value within the economy. Following his inauguration in October 2014, President Joko Widodo quickly took a number of vital and positive steps that so far are increasing opportunities for foreign direct investment.

A string of innovative financial products from Indonesian start-ups are circumventing the traditional payment and investment system, helping to broaden financial inclusion and challenging the established banks.

A visit by President Joko Widodo in April threw a spotlight on the Indonesia Stock Exchange (IDX), with the exchange’s benchmark hitting an all-time peak of 5523.29 in the days before the visit. 

Investment in education is high on the agenda in Indonesia, but the high number of difficult to access rural areas across the archipelago is hampering the reform process. 

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