Best Countries for Business 2018

Indonesia

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Indonesia

gdp
$1,015B
gdp growth
5.1%
gdp per capita
$3,800
trade balance/gdp
-1.7%
population
262.8M
unemployment
5.4%
public debt/GDP
29%
inflation
3.8%
As of December 2018
Indonesia, the largest economy in Southeast Asia, has seen a slowdown in growth since 2012, mostly due to the end of the commodities export boom. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth. Indonesia’s annual budget deficit is capped at 3% of GDP, and the Government of Indonesia lowered its debt-to-GDP ratio from a peak of 100% shortly after the Asian financial crisis in 1999 to 34% today. In May 2017 Standard & Poor’s
became the last major ratings agency to upgrade Indonesia’s sovereign credit rating to investment grade. Poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among its regions are still part of Indonesia’s economic landscape. President Joko WIDODO - elected in July 2014 – seeks to develop Indonesia’s maritime resources and pursue other infrastructure development, including significantly increasing its electrical power generation capacity. Fuel subsidies were significantly reduced in early 2015, a move which has helped the government redirect its spending to development priorities. Indonesia, with the nine other ASEAN members, will continue to move towards participation in the ASEAN Economic Community, though full implementation of economic integration has not yet materialized.
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Rankings
Worst
Best
Trade freedom
74
Monetary freedom
58
Property rights
64
Innovation
68
Technology
50
Red tape
116
Investor protection
50
Corruption
86
Personal freedom
66
Tax burden
93
substantial improvement
substantial deterioration
All economic data for 2017.Sources: Heritage Foundation; World Economic Forum; Transparency International; Freedom House; World Bank; Central Intelligence Agency; Property Rights Alliance.
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