Indonesia is made up of 17,508 islands and has a population of around 237 million people and is the fourth most populated country in the world. Around 86 per cent of the population is Muslim making it the world’s most populous Muslim-majority nation.
Indonesia managed a successful transition to democracy in 2004. In addition, the 2009 parliamentary and presidential elections passed peacefully, signalling the consolidation of the democratic process. Since 2009, the government has shown further signs of improvement in both efficacy and engagement. This provides a stable political outlook for potential foreign investors.
Indonesia’s strategic location between the Indian and Pacific Oceans and its adjacency to major east-west trade routes make it an important economy in the region. As a member of the Association of South East Asian Nation’s Free Trade Area, Indonesia is committed to lowering tariff and non-tariff barriers to trade. Indonesia has a low cost and large supply of available labour resources which is highly attractive for foreign investment.
The economic growth of Indonesia was 6.5% in 2011, which is the strongest pace of growth in 15 years, as a result of robust domestic consumption driven by a growing middle class and record foreign investments. Economically and globally, Indonesia is recognised as a rising global player and a leader in South East Asia.