Country Profile
From The Report: Indonesia 2024
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Indonesia, a South-east Asian nation of over 17,000 islands, has a rich history stretching back millions of years, with early human ancestors living on the archipelago as far back as 1.9m years ago. The term “Indonesia” was first coined in 1850 by British anthropologist James Richardson Logan, referring to what was then known as the Indian or Malay Archipelago. By 2000 BCE, the islands were inhabited by the Austronesians, who exhibited impressive maritime skills and were active in inter-island trade, which helped advance agricultural techniques such as rice cultivation. Islam arrived in the 8th century, gaining significant traction by the 14th century, becoming the dominant religion by the 17th century.

Looking ahead, Indonesia’s new President-elect Prabowo Subianto is expected to follow the infrastructure and economic transformation policies initiated by outgoing President Joko Widodo, better known as President Jokowi. The incoming administration has an ambitious goal of achieving 8% annual growth, aiming to elevate Indonesia into the world’s top-five economies by 2045. The government is focusing on developing downstream industries, promoting renewable energy and improving self-sufficiency, all while managing challenges in the oil, gas and coal sectors. Investment in renewable energy infrastructure and reforms aimed at attracting foreign capital are key strategies moving forward. Despite challenges, Indonesia’s growing population and middle class remain critical drivers of economic growth. If key regulatory and policy challenges are addressed, the country’s socio-economic future looks promising.

Articles from this Chapter

Overview

Planned expansion: Ambitious growth targets underline the country’s long-term goals
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While the Republic of Indonesia is nearly eight decades old in its current form, the South-east Asian nation of more than 17,000 islands has a history that dates back much longer. The name Indonesia was first used in 1850 by the British anthropologist James Richardson Logan in reference to the extensive group of islands that was known at the time as the Indian or Malay Archipelago. Archaeological evidence indicates that the ancestors of modern humans lived on the archipelago as far back as 1.9m years ago, while evidence of modern humans goes back 40,000 years. By 2000 BCE the islands were inhabited by a diverse group known as the Austronesians.…

Analysis

Bilateral opportunity: Inaugural inter-regional summit signals closer collaboration between Gulf countries and ASEAN in the years to come
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Trade between the ASEAN and the Gulf Cooperation Council (GCC) has grown considerably in recent years, as economies in both regions seek to capitalise on mutually beneficial opportunities, and diversify their trade and investment partners. Indeed, trade between the GCC and Asian countries classified as emerging and developing by the IMF increased 34.7% from $383bn in 2021 to $516bn in 2022, according to data from UK-based think tank Asia House. The GCC’s combined trade with the US, the UK and the Euro area – comprising countries whose official currency is the Euro – grew by some 32% that same year. Trade between the GCC and emerging and…