Assessing Health of Indonesia

Introduction

This report focus on the thorough analysis of the Indonesia. This report will mainly focus on economy, politics, geagraphy, and it also considers the steps taken for recovery of the economy to attract international investment.

Basic Characteristics

The Government of Indonesia has managed to maintain high growth rates of 7% over the past five years, the expansion of industrial and agricultural base of the economy and increase in imports and exports, while retaining the positive balance of trade.

Liberalizing investment rules in 1994 led to a sharp increase in foreign-financed development projects in various sectors. Some of them, as in the Natuna Sea D-alpha, reserves 40 billion contract with Indonesia Esso develop 200 trillion cubic feet of gas will help the nation's future use of its natural resources and promote sustainable development in the long run.

Internal rebound well entrenched and more external demand, GDP growth is expected to continue in 2010 and 2011, growing at 5.2 5.8% respectively. The confidence of investors and the appetite for Indonesia remains strong, as indicated by the stock market performance, rebound in FDI and reduction of sovereign bonds. However, Bank lending remained subdued, the Central Bank is looking for an address.

Increased investment by the Government will address some of the shortcomings of the country's infrastructure and support economic growth, but the overall deficit remain managed subsidiary of solvency, despite delays in addressing energy subsidies.

Inflation still contains, but is expected to pick up after basic effects.

Investment Environment

President Yudhoyono originally was elected in 2004 in the fight against corruption and economic reform. On the economic and investment reform, although some progress has been made far-reaching reforms was limited to the make-up of the ruling coalition between 2004-2009. This situation has changed with DP, strengthen its position and there are expectations that can now more easily.

Indonesia has a number of legislative instruments relating to investments in recent years, including the Investment Act 2007 establishing common investment principles, as well as the latest version of the negative list of investments held in 2007. This negative list outlines the sectors where foreign investment restrictions concern among investors as a somewhat contradictory greeted the Investment Act (Denny, 72).

However, major corruption combat unit within Indonesian anti-corruption Commission (CPC) is in the midst of political struggle, partly because of his political enemies, thanks to his success in the implant. The operational objectives will vary for the province ...