|
Indonesia
|
Country Profile
|
|
|
|
With a population of 230 million and composed of a remarkable archipelago of 17,000 islands stretching across the equator, Indonesia is one of the most diverse countries in the world with over 200 ethnic groups and some 250 languages.
Political reform has created the world’s third largest democracy, with the election of President Susilo Bambang Yudhoyono in November 2004 in the country’s first direct vote for its leadership. At the same time devolution of authority to the regions has brought far greater control of economic decision-making to leaders on the ground, also directly elected on platforms of direct relevance to their electorates.
The Indonesian economy is back on track, heading for 6.3% growth this year and higher in 2008, with investment back at pre-economic crisis levels. The recovery represents the results of nearly a decade of hard work by successive governments to reduce debt and implement reforms across the range of economic activities.
Tough decisions have been made, reducing fuel subsidies to reduce budgetary pressures, and with inflation stabilized as a result of sound macroeconomic policies, while reforms to tax, customs and other areas of administration have created better conditions for business. An anti-corruption campaign has stemmed what had become an endemic problem, while political and social stability has returned.
In some areas of Indonesia, growth is far higher than the national average, fueled by high commodity prices in both the agriculture, mining and oil and gas sectors.
 A number of international surveys predict that Indonesia over the next 40 years will develop into one of the world’s strongest economies. Based partly on demographic trends in which current developed nations will decline as their populations age, and developing nations including Indonesia will take their place on the economic ladder, the surveys also recognize Indonesia’s strong natural resource endowment.
Indonesia has a particularly strong position in global energy supplies. Until recently the world’s largest exporter of liquefied natural gas (LNG), the country has also become the world’s largest producer and exporter of thermal coal. Reserves of oil are reducing, but new fields promise to boost resources, while currently known LNG resources are adequate for at least 60 years and coal reserves for more than 100.
The government is currently reshaping national energy policy to use more of its resources at home to boost the growth of industry, with a system of pipelines being constructed to feed gas to major industrial areas. The emerging picture suggests a strong future for Indonesia. |
|
|
|
|
 |
|
|
