Economy

Already the world’s 17th-largest economy with a nominal GDP of $768bn in 2010, Indonesia is one of the three fastest-growing economies in Asia. Authorities are working to use the country’s key competitive advantages to attract the long-term investment needed to realise their goal of becoming one of the top 10 economies by 2025. Growth was forecast to reach 6.3-6.5% for 2011. However, addressing infrastructure will be a major challenge for the government, which has struggled for several years to come up with a clear plan for public-private partnership (PPP) projects for transport. The administration of Susilo Bambang Yudhoyono has pledged increased spending, but projects have been delayed due to issues such as land acquisition, and are just now moving towards tenders. Overall, growth is expected for both the short and long term, but more investments will be necessary to keep up with the booming ASEAN region. This chapter features interviews with Hatta Rajasa, Coordinating Minister of Economy; Agus Martowardojo, Minister of Finance; Prijono Sugiarto, President Director, Astra International; Gita Wirjawan, Minister of Trade and Chairman, Investment Coordinating Board; Bobby Umar, President Director, Bakrie & Brothers; and a viewpoint from Maxime Verhagen, Deputy Prime Minister and Minister of Economic Affairs of the Netherlands.