Economy

Indonesia’s GDP growth rate has been slowing for a number of years, falling from 6.5% in 2011 to 5% in 2014 and 4.7% in first-quarter 2015 – the lowest rate since 2009. From third-quarter 2014 to fourth-quarter 2014 the economy contracted 2%, and then in January 2015 the country experienced deflation of 0.2%, according to Bank Indonesia (BI). Foreign direct investment (...

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...

Indonesia’s trade ties with Japan have shown tremendous growth in recent years, with Japan now its second-largest source of investment and second-largest trade partner, despite a decline in investment in 2014. Bilateral ties are expected to grow on the back of new opportunities in manufacturing, defence and energy, although a persistent trade imbalance between the two has led...

In 2014 Indonesia elected a new president, Joko Widodo – a development of significant interest to both national and regional stakeholders, as well as global investors and economists. A self-made businessman whose background and policies have resonated with Indonesians, Widodo ran on a platform that included cracking down on corruption, improving the quality of life outside the...

A key goal of Indonesia’s new president, Joko Widodo, is to boost GDP growth to 7% during his tenure, after it fell to a five-year low of 5.02% in 2014. He will face several challenges in this endeavour. Oil and gas revenues have declined on the back of a drop in prices, while falling global prices for other commodities have translated into weaker demand for Indonesian exports...