Indonesia Political Environment
Published on: January 27th, 2021 Author: Karolis
Indonesia Political Environment has changed in recent years drastically. On April 2019, the President on Indonesia Joko Widodo was re-elected for a second term with 56% of the votes to secure him a second term presidency till 2024. His agenda for his second term is a continuation to tackle economic reforms by improving countries infrastructure, supporting the manufacturing sector, make reforms in the foreign investment rules for foreigners and to digitalise the economy.
As a result of economic improvements towards foreign investments 2020-2024 Medium-Term National Development (RPJMM) plan was drafted to provide all foreign investors to be able to participate in development of countries sustainable infrastructure. Despite the governments initiatives to encourage foreign investment, several protections for local businesses also minimum local ownership are still in place.
Ease of Doing Business
Indonesia currently ranks 73rd out of 190 countries in the EODB 2020 rankings. Some of the indicators that Joko Widodo set up to improve is construction permit, property registration, contracts and starting business for foreigners. There are still a lot of room for improvements to reach Joko Widodo’s goal of 40th place by 2024.
Prosperity Index
Indonesia takes 57th position in the worlds prosperity ranking. It has moved by 18 places since 2010 by mostly improving in Social Capital, Enterprise Conditions and Living Conditions. But the biggest improvement came from Investment Environment.
Political Stability
Indonesia is the third largest democracy in the world and the largest economy in all Southeast Asia. Furthermore Indonesia is the only member of the ASEAN in the G20. It is example to the world countries how a successful political transition should be achieved. The country has a stable political system of democracy with its president Joko Widodo.
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