Foreign direct investment (FDI) flows to Indonesia have consistently set new records since 2010 both in terms of value but also in the economic sectors and the geographic areas targeted. As Indonesia moves from a natural resource investment destination to claim its place as a central cog in the region’s industrial supply chain, despite continuing...
As a net oil importer, Indonesia’s most pressing fiscal challenge remains its large subsidy bill, which at around 20% of the 2013 budget – some $30bn – accounts for as much spending as education. Although there is widespread agreement that the subsidies are wasteful and disproportionately benefit more affluent Indonesians – the World Bank estimated...
Amidst Indonesia’s open capital markets the deterioration of the current account deficit (CAD) in 2012 was at the centre of investors’ concerns, weighing on the currency throughout the year. One of the main transmission mechanisms of the global economic slowdown on the Indonesian economy, the drop in exports was not matched by a slowdown in imports...
One of the largest and most vibrant democracies, as well as the biggest majority-Muslim country, Indonesia today is also among the world’s most dynamic economies. Indeed, with GDP growth at over 6% every year since 2009 – and with per capita income levels doubling in the past five years – Indonesia is fast becoming a magnet for international...
The name Indonesia dates back to the 18th century, and it derives from the Latin and Greek Indus, and the Greek nèsos, meaning “island”. Early settlers arrived in the country around 2000 BCE, when the Austronesian peoples started to migrate to this region from Taiwan. They already showed well-honed maritime skills, as the...
With the largest population and largest land area of any nation in ASEAN, Indonesia is also responsible for around one-third of the 10-nation bloc’s GDP. It also has a key location within the ASEAN geography, straddling the east-west extent of the association’s boundaries, sharing land borders with Malaysia, Papua New Guinea and East Timor, and...
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