 |
President Susilo Bambang Yudhoyono
President of the Republic of Indonesia |
Peace and
prosperity now within reach
Indonesia
is determined to develop; catching up with neighbours
is essential to secure its place in the blazing ASEAN
sun
A few points are generally
accepted in political and business circles in Indonesia
these days. Foreign direct investment has to pick
up if the island-chain nation is to see sustained
growth. Peace between separatists in the Aceh province
and the central government in Jakarta is essential
to nationwide stability. And deep reforms are needed
to improve education, ensure job training and boost
laggard productivity.
Despite its economic and political
troubles, prospects are encouraging for this nation
of nearly 240 million people, occupying a key shipping
channel between the Indian and Pacific Oceans. Its
17,508 islands are home to the world’s largest
Muslim population and the fourth largest total population
after China, India and the United States.
Terrorism, separatist conflicts
and the devastating 2004 tsunami have cast global
attention on Indonesia in recent years. But the country
is intent on selling a more upbeat message to drive
growth.
There’s a lot of news
to celebrate, leaders say. The Indonesian government
and rebels from the Free Aceh Movement signed a peace
pact in 2005, ending three decades of armed conflict.
Separatists seeking independence for the region on
the island of Sumatra surrendered as part of the deal.
Democratic elections in Aceh followed in 2006, widely
heralded as a victory for President Susilo Bambang
Yudhoyono, who was nominated for the Nobel peace prize
for his work in bringing peace to the region.
Similarly good news can be
reported from economic quarters. Indonesia’s
economy grew by six per cent last year, according
to the International Monetary Fund. The organisation
praised Indonesia for improving tax collection capabilities
and adopting labour laws to help lure investors and
spur job creation. And debt as a percentage of gross
domestic product is on track to be reduced to 26 per
cent by 2012, down from nearly 36 per cent this year.
Additionally, changes making
it easier to do business as a foreigner are creeping
in. For instance, work visas for non-Indonesians and
property leases now have extended terms, reforms that
were approved earlier this year in the new Investment
Law, the first revision of Indonesia’s foreign
investment procedures since 1967. Laying a strong
foundation for continuous development is one of the
key goals of President Susilo’s government, and
a comprehensive economic reform programme (a three-pillared
approach targeting an improved investment climate,
infrastructure development and banking sector reform)
is underway.
Recovering from the impact
of the Asian financial crisis at the end of the 1990s
has not been easy for Indonesia, but the country is
finally emerging. As President Susilo said in his
2008 State of the Nation Address this past August,
“Ten years ago, at the beginning of our devastating
crisis, disbelief and distrust were common. When our
nation was battered by economic crisis, which then
turned into multidimensional crises, we came across
grave challenges. With our determination as a nation,
we successfully overcame every crisis that has come
our way. Today, Indonesia is still standing tall;
let us prove now that in ten years, or fifty years
and beyond, our country will not merely be standing
tall but also developed and prosperous.”
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INDONESIA PROJECT TEAM
Project director: Lucas Heine
Project coordinator: Helena Alvarez-Vietez
Production assistant: Benjamin Williamson
