With the application of the right policies, Indonesia could return to growth above 6%, and perhaps eventually reach the 7% target set by the new president. The government intends to double expenditure in the key areas of public works, transport and agriculture, and new plans include the construction of 2600 km of roads, 15 airports, 24 ports, 3258 km of railway and the addition of around 35,000 MW to the state electricity company’s current capacity. The investments to be made in infrastructure have the potential to boost the economy in both the short and long term. A shift to more investment and less consumption would help lead to more sustainable growth and insulate the country from external shocks. Already the numbers are starting to head in the right direction.

Although Chinese and global demand, low commodity prices and rising wages will continue to challenge trade growth in 2016, Indonesia remains on a positive trajectory. Rising domestic demand, increasing liberalization measures, improvements to the investment climate and a shift towards value-added production will bolster both exports and investment. At the same time, new trade agreements with the world's largest economies look set to drive long-term trade expansion. Prudent government policy, an ambitious reform agenda and rising recognition of the role of the private sector should help to keep investment and trade stable in 2016, and despite exports and growth have dipped in recent years, the country is well positioned to make the crucible transformation from a consumption- to investment-based economy.

In 2018 the Indonesian economy recorded a growth rate of 5.2%, the highest in five years. This was in spite of a slump in the rupiah and a trade imbalance, and took place against a backdrop of rising US interest rates and deteriorating trade relations between the world’s two biggest economies. The country’s emphasis on industrialisation and infrastructure development is laying the foundations for continued economic growth. Moreover, the archipelago’s growing middle class population, geographical position and human capital development agenda, alongside progress in free-trade agreements, make it a strong contender on the global economic stage. The country holds considerable potential for developing entrepreneurial and creative prowess, already being home to four unicorn startups. Investors have continued to look beyond traditional destinations, with emerging cities like Surabaya and Palembang showing strong possibilities for economic growth. Although the outcome of the April 2019 national election will determine the course of further infrastructure development and tax reforms, the future looks promising, with predictions of continued growth accompanied by stable inflation.

Infrastructure Investment in Indonesia: A Focus on Ports presents an important and original collation of current material investigating the efficient facilitation of major infrastructure projects in Indonesia and Australia, with an emphasis on infrastructure investment and a focus on port planning and development. This interdisciplinary collection—spanning the disciplines of engineering, law and planning—draws helpfully on a range of practical and theoretical perspectives. It is the collaborative effort of leading experts in the fields of infrastructure project initiation and financing, and is based on international research conducted by the University of Melbourne, Universitas Indonesia and Universitas Gadjah Mada. The volume opens with a macroscopic perspective, outlining the broader economic situations confronting Indonesia and Australia, before adopting a more microscopic perspective to closely examine the issues surrounding major infrastructure investment in both countries. Detailed case studies are provided, key challenges are identified, and evidence-based solutions are offered. These solutions respond to such topical issues as how to overcome delays in infrastructure project initiation; how to enhance project decision-making for the selection and evaluation of projects; how to improve overall efficiency in the arrangement of project finance and governance; and how to increase the return provided by investment in infrastructure. Special focus is given to proposed improvements to the portal cities of Indonesia in the areas of major infrastructure project governance, policies, engagement, operation and processes. By rigorously investigating the economic, transport, finance and policy aspects of infrastructure investment, this book will be a valuable resource for policy makers and government officials in Indonesia and Australia, infrastructure investment organisations, and companies involved in exporting services between Indonesia and Australia. This book will also be of interest to researchers and students of infrastructure planning and financing, setting a solid foundation for subsequent investigations of financing options for large-scale infrastructure developments.

This 2014 Article IV Consultation highlights that sound macroeconomic management and exchange rate flexibility have bolstered policy credibility and external resiliency in Indonesia over the past 18 months. In the face of Federal Reserve tapering and headwinds posed by slumping commodity prices, policy and reserve buffers have been strengthened through a clearer policy framework and better policy coordination. Notwithstanding commodity sector developments and global risk factors, the near-term outlook is broadly positive. Looking ahead, the main challenge for Indonesia is to chart a course to higher, more inclusive growth, while preserving macrofinancial stability and further strengthening the external position.

This OECD Economic Survey of Indonesia examines recent economic developments, policies and prospects. Special chapters cover inclusive and sustainable growth; and natural resources.

Indonesia has a growing population of almost 300 million people, it is increasingly involved in world affairs, and has a booming economy. The need to better understand its unique, complex, and often obscure legal system, has become pressing. This is true across a wide range of sectors including, but not limited to, trade and investment, crime and terrorism, and human rights. Indonesia's democratization after the fall of Soeharto in 1998 triggered massive social and political changes that opened up this diverse, and formerly tightly-controlled, society. Law reform was a key driver of Indonesia's transformation and its full effect remains to be seen. This book offers clear and detailed explanations of the foundations of Indonesia's legal system in the context of its legal reform and rapid development. It offers succinct commentaries on a wide range of issues, examining the judicial process, the constitution, corruption and the court system, contract law, administrative law, foreign investment, taxation, Islamic law, and family law. It examines current substantive law and judicial interpretation and presents case studies of how the system operates in practice. Written in an accessible and engaging style, this book is an essential guide for readers seeking quick and clear answers to questions regarding the law and its application in Indonesia.

This is the first Green Growth Policy Review of Indonesia. It examines progress towards sustainable development and green growth, with a special emphasis on the nexus of land use, ecosystems and climate change.

The palm oil sector has been targeted by NGOs for its alleged negative environmental and social impacts. In this regard Indonesia represents a major challenge because it is home to some of the largest tropical forests in the world. A recent wave of corporate sustainability commitments peaked with the New York Declaration on Forests in September 2014, which emerged amidst the development of other standards and initiatives toward sustainable palm oil production. This process has made this field very complex, especially in Indonesia. The present study aims at clarifying the positions taken by the various stakeholders and assesses the level of political support and the functioning of policy networks. Results from our Policy Network Analysis based on the survey of 59 institutions representing all types of stakeholders (e.g. government, corporate, NGO) at all levels (international, Indonesian and local) show that standards and initiatives for sustainability have contrasting visibility and impact among stakeholders. In this context, RSPO stands as a reference, with the efforts by the Government of Indonesia to promote its own standard with ISPO yet to gain traction. While IPOP was a well-appreciated initiative and a symbol of zero-deforestation commitments, opposition to it by the government and conflicting interests have resulted in its disbandment. Overall, the lack of progress for sustainable palm oil practices on the ground, in the view of respondents, seems to be caused by political and legal barriers rather than technical challenges or economic losses at a country level.

This book investigates whether a power shift has taken place in the Asia-Pacific region since the end of the Cold War. By systematically examining the development of power dynamics in Asia-Pacific, it challenges the notion that a wealthier and militarily more powerful China is automatically turning the regional tides in its favour. With a special emphasis on Sino-US competition, the book explores the alleged linkage between the regional distribution of relevant material and immaterial capabilities, national power and the much-cited regional power shift. The book presents a novel concept for measuring power in international relations by outlining a composite index on aggregated power (CIAP) that includes 55 variables for 44 regional countries and covers a period of twenty years. Moreover, it develops a middle power theory that outlines the significance of middle powers in times of major power shifts. By addressing political, military and economic cooperation via a structured-focused comparison and by applying a comparative-historical analysis, the book analyses in depth the bilateral relations of six regional middle powers to Washington and Beijing.