• Indonesi

Notes

• Indonesia is currently the largest economy in the South-East Asian region, 16th largest in the world • GDP of over US$1.5 trillion • After opening its country to the forces of globalisation in the mid 1980s, Indonesia has seen high levels of economic growth of around 5% annually and is considered an emerging economy.  • This was the result of strong FDI, infrastructure development, and strategic government policies. However, the level of economic development and quality of life in Indonesia is considerably lower than surrounding countries. Despite this, the effect of government policies has contributed to significant increase in quality of life in the country. Economic Growth Trade • Shifted towards trade liberalisation in the mid 1980’s → GDP grew at a significantly higher rate than most economies in the world. • Prior to this, highly protected economy → 1970s oil boom resulted in strict trade barriers ◦ After liberalisation, tariff in manufacturing sector fell from 86% to 24% • After Asian financial crisis in 1998, increasingly integrated through participation in FTA’s such as ASEAN • However, contribution of trade to Indonesian economy has fallen from 72% in 2000 to 41...