BizCLIR

This information comes from the assessment conducted in country for the Indonesia report, which was published in November 2007.

The 1997 economic crisis in Southeast Asia affected the entire region, but devastated Indonesia in particular. The crisis culminated in political upheaval. In the spring of 1998, a new president replaced the 32-year dictatorship of General Suharto. In the aftermath, as the corruption and poor governance of the recent past became more fully exposed, a new commitment to democracy and strengthened institutions emerged.

Ten years later, an array of legal and institutional reforms has revealed Indonesia’s promise. Among other developments, Indonesia has begun to address its reputation for “crony capitalism” through more rigorous corporate governance and improved transparency in banking transactions. The state’s entrenchment in the economy has diminished – the number of state-owned banks has decreased from 13 to 4, for example. The government has also increased the number of opportunities afforded smaller entrepreneurs, and plans to adopt additional regulatory measures that will support this important group. In the area of competition law and policy, Indonesia has exhibited influential leadership in the region. Top officials in the economic ministries have shown a genuine commitment to international rules of trade and investment, and the process of moving goods across borders has improved significantly. There is also a major political commitment to combating the country’s notorious reputation for official corruption.

Source: World Bank Group 2009, CIA World Factbook 2009 

For additional economic indicators, please visit the World Bank's "Private Sector at a Glance."