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(Republic of Indonesia)

The Indonesian economy is the world’s sixteenth largest by nominal GDP and fifteenth largest by purchasing power parity, yet it is often overlooked by foreign businesses.

As the World’s most populous Muslim country, with substantial Christian, Buddhist and animist communities. it has a history of ethnic tensions and armed insurgency, but these appear to have largely died down, especially following the political resolution of the Aceh crisis in 2005. Despite on-going problems in Irian Jaya, the country is now more politically stable than it has been for many years.

Since the election of President Yudhoyono in 2004, the country has also made good progress in economic reforms, including the finance sector and capital markets, and it has made some headway in unravelling the country’s overly complex regulatory system, particularly in the improving the tax and customs regimes.

The main obstacle for economic development is the country’s weak transport Infrastructure and its fragmented distribution system, which also present a huge challenge to retailers seeking to enter this market. However, the government is now seriously addressing this issue, and opening up opportunities for foreign participation in infrastructure finance and development.

Indonesia is a founding member of ASEAN and a member of the G-20 major economies.


Population: c. 245,613,000  
Capital City: Jakarta
Government: : Republic, Multi-party Democracy
State Languages: Bahasa Indonesia, Javanese, others
GDP per capita (PPP): $4,700
Growth Rate: 4%-7% per annum

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