Under the Yudhoyono regime, Indonesia showed stable economic growth and its economy expanded steadily. Since 2007 their economic growth has accelerated to over 6% annually.
Looking at future directions for the Indonesian Economy, it is the nation’s most pressing and crucial problems involve infrastructure and industrial development in all areas, such as ports, airports, roads, railways, electricity and water supply.
According to the Indonesian government, the official poverty rate shows a declining trend, but by World Bank standards its rate of is still high. Regional income inequality in Indonesia is huge as many economies centralize in Java.
For the future, it is the critical issue that the economy of eastern Indonesian, including the Sulawesi (Celebes) and Maluku islands should develop.
The Joko regime decided to cut energy subsidies and raise retail gasoline price by more than 30 percent on 17th November 2014, as the government faced an existing need past to strengthen national financial resources to undertake its social security and infrastructural development plans. However there has been a big backlash from public.
When the Indonesian economy achieves financial improvement in future, it is considered that development of marine infrastructure, such as marine traffic, and power infrastructure on each island and between islands will promote economic and social stability.
In recent years, Indonesia has strengthened its democratic system and Mr. Yudhoyono, who was the President of Indonesia from 2004 to 2014, was the first to be elected by direct election. Former President Yudhoyono restored security in throughout Indonesia, resolved the independence dispute problem, strengthened involvement in ASEAN and exerted a leadership role in Asia. At the same time, the Indonesian economy became stable and their democracy has been strengthened.
The Joko Widodo regime was established on 20th October 2014 and public expectations are high, as he is the first president not to have come from the military or political elite, having a so called “man of the people” image.
However the country’s economic growth has been slow since 2013. There are also many outstanding issues, such as the provision of infrastructure and the resolution of regional differences. The new Indonesian parliament opened on 1st October 2014, but the ruling coalition (in which the Indonesian Democratic Party – Struggle (PDI-P) whose chairman is Joko Widodo is the largest party) has secured a total of only 246 House seats, which is less than half of the 560 House seats. Mr Widodo’s defeated rival in the presidential election (9th July), Mr. Prabowo (The Great Indonesia Movement Party (Gerindra)) launched a challenge shortly after the election, claiming he lost due to “massive” electoral fraud. His bid was rejected by Indonesia’s top court in August.
To sustain political stability, it is essential for the ruling coalition to hold a large number of seats. The Golongan Karya party (Golkar) was claimed political attention as it won 91 seats, but Golkar is now on the brink of major unrest, with conflicting factions, with Aburizal Bakrie insisting he is the only legitimate Golkar chairman but an anti-Bakrie group opposes him. The situation of ruling coalition is too uncertain. However the new president Joko Widodo is immensely popular and the nation has great expectations of him.
Indonesia is friendly toward Japan, whose relationship with Indonesia is long-standing. The acceptance of foreign students and trainees and exchanges through various training programmes are both thriving.
In recent years, not only national governments but local ones are keen to promote product exhibitions, tourist attractions, human resource exchanges and educational exchanges.
According to a BBC international poll, Indonesian people are favourably disposed toward Japanese people. Indonesia is second in the world for Japanese language learners and in future a significant further increase in people-to-people exchange is expected.
Indonesia is an island country consisting of about 13,500 islands. Its population is approximately 240 million and there exist more than 300 ethnic groups. Generally, their national character is modest and tolerant. They have closely united society, motivated by such feelings as kindness and caring for others.
Indonesia’s national principle is to unite and integrate the nation:
Pancasila (originally from Sanskrit) comprises five principles.
1. Belief in the one and only God.
2. Just and civilized humanity.
3. The unity of Indonesia.
5. Social justice.
About 90% of Indonesian people believe in Islam, but Islam is not the state religion and freedom of religion such as Christianity or Buddhism is guaranteed to.
Bhinneka Tunggal Ika (originally from Old Javanese) is the official national motto of Indonesia translated as “Unity in Diversity”.
Bahasa Indonesia is the official language of Indonesia and has played an important role in uniting the country