Indonesia in the 1980's

Decision analysis: What is the best strategy for the Malaysian government moving forward? This decision can only be made after the country’s current strategy and how well it works is analyzed.

Indonesia is a rich country with its resources. Not only oil and gas, but Indonesia also had been a producer of mining and agricultural products such as rubber, tin, tea, coffee, spices and timber. In 2002, timber is one of the key export for “non-migas” (non oil and gas) commodities to provide foreign trades.

Australian-Indonesian relations are the foreign relations between the two countries, whether economically, politically, legally or socially. Australian-Indonesian relations involve an interaction in foreign policies between the two nations (Wolfsohn, 1951, p. 68). As long as Indonesia is Australia 's closest and largest neighbor, they are bound to have great international relations. These relations began as early as the 17th century and had only become enhanced with time (Daly, 2003, p. 397). The relationship has been defined by a conjoint growth trade of up to $14 between the years 2011-2012 which reports an increase from the previous economic year (Mark, 2012, p.402). These countries are members of various trade deals such as the ASEAN Regional Forum in addition to having close ties with education, defense, and leadership. Australia 's relationship with Indonesia is crucial, and lack of such could severely bruise the economy, and hence they need to keep united by ensuring the use of widespread media with beneficial input. Australia interacts with Indonesia in a way such as sporting activity, tourism, education, economic policies, youth exchange programs, cultures and above all their diplomacy (Okamoto, 2010, p.241).

The development in the progress of China, India and Indonesia benefits Australia and contributes significantly to regional stability which extends opportunities for a successful and reciprocating business partnership instead of being aid dependent. Australia’s economical national interest is directly linked to the success, stability and peaceful interactions of its neighbours because these countries are also the first line of defence against many negative issues which could affect Australia (Department of Foreign Affairs and Trade 2016c). If these states remain to be wealthy and stable, they will respond better to efficiently to threats and complications in trade. In order to benefit from the trading relationships with the neighbouring countries, Australia needs to take advantage of the international economic opportunities and ensure we are focused on advancing in global economic, financial, investment and trade institutions. A globally integrated economy is crucial due to the growth which can be gained from an open trading system and foreign direct investment which secures our position in the economically advancing countries of the world and our own financial welfare (Wong 2017).

Indonesia is the sixteenth largest economy, the largest economy in the South-east Asian economic region with the world's fourth largest population (263 million in 2017). It is an emerging economy that has increased its international integration, trade liberalisation and diverted from policies of import substitution towards export-led development. Indonesia is a member of the Group of 20 (G20) major economies and has been an active founding member of the World Trade Organisation (WTO). The impact of globalisation has benefited Indonesia as quality of life indicators and economic developments have improved but it also presents the challenge of improving regulations, building more competitive industries, increasing investment into education and infrastructure to remain competitive. Consequently, Indonesia has introduced numerous strategies to promote economic growth and development.

The world economies depend on one another immensely as they are connected through trade, migration and investment. Presently, global economy has slowed down as a result of the credit market turmoil and tightening of financial conditions in the developed countries especially in US. On the other hand this has not affected the economic growth in Asian countries such as India and China which still has been strong. This has been one of the major factors for Australian economy to be in a strong position, as China and India are one of the biggest consumers of Australian exports.

There are many companies who are still skirting lax laws and regulations in Indonesia and finding the cheapest and easiest way to do business, which often having the activity of deforestation. (Indonesia forests still dwindle despite reforms,

Indonesia's GDP is $1.125 trillion per year (PPP), which places it as the 15th-largest economy among nations, behind Canada and ahead of Turkey (CIA World Factbook, 2012). Indonesia's GDP is growing steadily a strong rate. World Bank figures have the country's GDP growing at 6.46% in 2011, 6.2% in 2010 and only dipping below 5% growth once in the past five years, when GDP grew at 4.63% in 2009. Indonesia outperformed most of its regional peers (save China) in posting growth in 2009. There is a caveat to this growth in that the GDP per capita is growing at a slower pace than the GDP is growing. Indonesia's population is growing rapidly, and the country is becoming younger. In the long run, this will spur further growth, but in the short run the young population is actually constraining growth because so many Indonesians are still below working age. This comparison is relevant because population growth is a key driver of GDP growth, and looking at the GDP per capita growth helps to understand what component of GDP growth is driven by population increases as opposed to organic expansion.

Indonesia has been facing worker strikes due to increasing inflation, because of this; investors are pulling out of the country all together. The country has been facing “social unrest” and protests since the government cut fuel subsidies; prices for petrol and diesel (Monaghan, 2014). This is a problem because the government has put so many stipulations on their currency that it is difficult to sell their money and they are not making a profit as a country (Boyle, 2013). The country has

Indonesia is the world’s largest archipelago and is the fourth most populous island in the world. There are a total of 17,508 islands and nearly 6,000 islands remain uninhabited. It is nearly three times the size of Texas. The U.S. is five times the size of Indonesia. There are five large islands that include: Java, Sumatera, Papau, Kalimantan, and Sulawesi. Although, Bali and Komodo islands are more well known to tourists. The country can be observed in two parts: Western and Eastern. The western side is where over 80 percent of Indonesia’s total GDP is obtained and the western side is located near Malaysia and Singapore. The eastern side is more remote and less densely populated.

Indonesia is the world’s third largest democracy and the world’s largest Muslim country. The country is also the largest economy in Southeast Asia and a member of the G-20 major economies. (G-20, 2015) The bilateral relationship between the United Sates and Indonesia is significant if for no other reason than the first two facts mentioned. The cooperation between the United States and Indonesia (a successful model of a Muslim nation practicing democracy) can have far-reaching effects past Indonesia’s regional Southeast Asian boarders. In this assessment of Indonesia, I will discuss the significance of Indonesia to America and regional effect on its Southeast Asian neighbors more in-depth.

The countries that belong to the developing regions of the world have been confronted with a number of distinctive challenges within such a globalized economy, while their respective financial as well as their trade links have been closely tangled with those of powerful, developed countries in which it governed the international economic institutions. This paper outlined the key elements of the post-World War II development model of Indonesia. At the same time, there will be identification of the major changes as well as to the key theoretical influences.

Located between the Indian and Pacific oceans in the Southeast Asia, Indonesia ranked number four (as in 2014), as the most populous country in the world with 252,812,245 milion people (worldometers, n.d.). 13,194,000 million people alone are living in the capital city of Indonesia, Jakarta (national geographic, n.d). It is a country consists of 17,000 islands; around 6000 islands are inhabited and Indonesia is linked to the equator (Infoplease, n.d). It is used to be colonised and under the influence of the Dutch for 347 years since 1602 (factmonster,n.d). The people of Indonesia pledged to unite and build one country, one language and one nation (Wanandi, 2002). Jusuf Wanandi (2002) stated that this is due to the Dutch colonialism in the form of the Netherlands East Indies that led to the establishment of the Indonesian nation and state. Indonesia is also known as the largest Muslim country in Southeast Asia as there are 90 percent of Indonesians are Muslim, the other would be Prostestants, Catholics, Hindus and Buddhists (Wanandi, 2002). Indonesia also famously known with their culture and customs due to its diverse nation (kwintessential,n.d.). There are more than 490 ethnic groups in the country (Wanandi, 2002). The official language is Bahasa Indonesia; a modified form of Malay language (kwintessential,n.d.). Indonesia is a country that practises a constitutional democracy. After the fall of Suharto 's (the former president of Indonesia) authoritarian New Order Regime

After the 1998 crisis, Indonesia’s economy is known to be quite resilient with a persistent positive economic growth. However, Indonesia is still suffering from an infrastructure gap. Underinvestment in infrastructure, mainly in transportation has left the country with huge burden of logistic cost for the people. Under the current Joko “Jokowi” Widodo administration, Indonesia is now focusing on gaining back fiscal space to provide more funding for its infrastructure. In general, the government needs funds for infrastructure development is 4,796 trillion IDR. With a very tight fiscal space, the state budget leave 15 percent of it for the development that is only able to cover the 2,817 trillion IDR (Morris & Tsjin, 2015).

As per Economic Complexity Index (ECI) Indonesia is the 79th most complex economy in the world. The country ranks 25th in terms of export in the world. As per 2014 export data, Indonesia imported $178B and exported $178B. This resulted in positive trade balance.