Country Profile
From The Report: Indonesia 2013
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While the modern state of Indonesia only came into being after the Second World War, the islands’ history dates back much earlier: evidence of humanoid activity from 1.5m-1.6m years ago has been found on Java. Following the arrival of the Portuguese in the 16th century, the islands experienced European colonial rule until the Second World War. The country was occupied by the Japanese during the war, with the Dutch recognising an independent Indonesia afterwards, in late 1949. Indonesia was one of the five founding members of ASEAN in 1967. Indonesia is the world’s 16th-largest economy, the third-most-populous democracy, the largest archipelagic state and home to the largest Muslim population. Indonesia’s natural resources include petroleum, gas, tin, nickel, timber, copper, coal, gold and silver. As ASEAN moves towards the launch of the Economic Community in 2015, tariffs have been gradually lowered, with impressive results.
This chapter contains interviews with President Susilo Bambang Yudhoyono and Sukwoo Hong, Korean Minister of Knowledge Economy, and viewpoints from Lord Green of Hurstpierpoint, UK Minister of State for Trade and Investment; Ed Fast, Canadian Minister of International Trade; and Robert Hormats, US Under-Secretary of State for Economic Growth, Energy and the Environment

Articles from this Chapter

Overview

Moving forward: While challenges do remain, the country has achieved much over the past decade and a half
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One of the largest and most vibrant democracies, as well as the biggest majority-Muslim country, Indonesia today is also among the world’s most dynamic economies. Indeed, with GDP growth at over 6% every year since 2009 – and with per capita income levels doubling in the past five years – Indonesia is fast becoming a magnet for international investment. This is having positive effects on the country’s political stability as well as on its international stature and influence, while…

Interview

President Susilo Bambang Yudhoyono: Interview
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Interview: President Susilo Bambang Yudhoyono How can Indonesia strengthen its role globally? PRESIDENT SUSILO BAMBANG YUDHOYONO: To play regional and international roles, any country needs a certain capacity. In Indonesia’s case, this capacity is derived from our domestic consolidation. Our economy has shown resilience and consistent growth since 2001 – with the exception of 2009, which saw growth fall to 4.6% during the first wave of the global financial crisis. Some pundits believe Indonesia’s…

Interview

President Susilo Bambang Yudhoyono: Interview
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Interview: President Susilo Bambang Yudhoyono How can Indonesia strengthen its role globally? PRESIDENT SUSILO BAMBANG YUDHOYONO: To play regional and international roles, any country needs a certain capacity. In Indonesia’s case, this capacity is derived from our domestic consolidation. Our economy has shown resilience and consistent growth since 2001 – with the exception of 2009, which saw growth fall to 4.6% during the first wave of the global financial crisis. Some pundits believe Indonesia’s…

Viewpoint

Lord Green of Hurstpierpoint, UK Minister of State for Trade and Investment, on the UK’s partnership with Indonesia
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The year 2012 has been a landmark year for the UK’s relationship with Indonesia, which both President Susilo Bambang Yudhoyono and the UK government are committed to strengthening. My visit to Jakarta in April, together with Prime Minister David Cameron and a large business delegation, was the opportunity to launch the Partnership Forum, which will oversee the development of a number of areas key to our relationship, such as foreign policy and defence, trade and investment, education, climate…

Analysis

Heavyweight: The nation’s growing role as an international mediator
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With the largest population and largest land area of any nation in ASEAN, Indonesia is also responsible for around one-third of the 10-nation bloc’s GDP. It also has a key location within the ASEAN geography, straddling the east-west extent of the association’s boundaries, sharing land borders with Malaysia, Papua New Guinea and East Timor, and sea borders with the Philippines and Singapore, as well as with ASEAN’s key southern neighbour, Australia. Given these fundamentals, Indonesia’s…

Analysis

Building a community: Trade liberalisation is progressing with an increasing number of FTAs
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The year 2015 is set to mark a watershed in regional affairs, as Indonesia, along with its neighbours in ASEAN, form the ASEAN Economic Community (AEC). This historic occasion will mean the final removal of many trade barriers between the ASEAN member states, and with the bloc also the signatory to a host of free trade agreements with other economic powers – deals which may even be replaced by an umbrella free trade agreement (FTA) – an unprecedented degree of openness in international…

Interview

Sukwoo Hong, Korean Minister of Knowledge Economy: Interview
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Interview: Sukwoo Hong What is your assessment of Indonesia’s current investment climate, especially regarding technology and manufacturing? SUKWOO HONG: With a population of some 240m, Indonesia is an enormous market, and the country has abundant natural resources and a capable workforce. With an annual average growth rate of 5.9% over the past five years, the Indonesian economy is performing well. Furthermore, the government has expressed a strong willingness to nurture the manufacturing sector,…

Viewpoint

Ed Fast, Canadian Minister of International Trade, on building up existing ties
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With impressive and consistent economic growth, a rapidly expanding domestic market, a growing middle class and abundant natural resources, Indonesia is becoming a political and economic powerhouse in South-east Asia, and around the world. Opportunities abound for Canada to play a part in Indonesia’s incredible success story. Sixty years ago, our two countries established official diplomatic relations, setting in motion a vibrant partnership. Today, we work together on a number of important issues,…

Overview

Islands of diversity: A rich blend of cultures and peoples make up this archipelagic state
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The name Indonesia dates back to the 18th century, and it derives from the Latin and Greek Indus, and the Greek nèsos, meaning “island”. Early settlers arrived in the country around 2000 BCE, when the Austronesian peoples started to migrate to this region from Taiwan. They already showed well-honed maritime skills, as the archipelago’s strategic location promoted inter-island trading. A fertile soil, the proliferation of commerce and mastery of rice cultivation allowed for villages,…

Viewpoint

Robert Hormats, US Under-Secretary of State for Economic Growth, Energy and the Environment, on Indonesia’s emerging leadership role
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As the world’s third-largest democracy, an important member of the G20 and a country highly respected for its many accomplishments, Indonesia plays a significant role in regional and global affairs. Over the past three years, US-Indonesian bilateral relations have flourished under the framework of the US-Indonesia Comprehensive Partnership. This commitment has strengthened our cooperation in a number of key areas. In 2013 Indonesia will continue to reinforce its emergence as an international leader…