Doing Business in Indonesia
With the GDP expected to reach US$ 1trillion this year, Indonesia is the largest economy in Southeast Asia. Much less affected by the global financial crisis compared to its neighboring countries, Indonesia’s economy grew by 6.3% in the first semester of 2012, making it the fastest growing G20 economy after China. Indonesia grew by 6.5% in 2011and is expected to grow by 6.3% this year, providing a case for the country’s inclusion in the so-called BRIC economies.
Future economic expansion is expected to include more inclusive growth as nominal per-capita GDP is expected to quadruple by 2020, according to a Standard Chartered report.
A large part of our economic success is a result of prudent fiscal stewardship that focused on reducing the debt burden. Indonesia’s debt to GDP ratio has steadily declined from 83% in 2001 to less than 25% by the end of 2011, the lowest among ASEAN countries, aside from Singapore which has no government debt.
As a result, by early this year, Moody’s and Fitch had uplifted Indonesia’s credit rating to investment grade status. The rating reflects Indonesia’s resilience to the global financial crisis, improving government and external credit-metrics, and an ability to manage domestic political challenges to the reform agenda.
Economically strong, politically stable and reform minded, Indonesia is an emerging global powerhouse in Asia.
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