23 - 29 April 2016

From the CEO OF EMIS

Earlier this month, Indonesian president Joko Widodo embarked on a tour of Europe with the aim of increasing trade links with major western economies. His visit naturally sparked much discussion about Indonesia’s record on human rights and the role it plays as the world’s most populous Muslim-majority state in countering extremism. Less remarked upon was the growing importance of Indonesia as an economic power.

The country is forecast to be the world’s seventh largest economy by 2030 and its short-term growth is accelerating rather than stalling like its neighbours Vietnam and the Philippines. The country also benefits from a young population entering its workforce, in contrast to regional competitors like Malaysia and Thailand.

Indonesia has a chequered history in terms of economic and political governance. The corrupt dictatorship of Suharto is still relatively fresh in the memory and, only last year, a poll showed that 86% of Indonesians regard their political parties and judiciary as corrupt. So there is still some way to go before Indonesia can be regarded as a stable beacon of growth but the tailwinds of foreign trade and investment are pushing the country to fulfil its undoubted potential. Perhaps Homer Simpson says it best, “Indonesia is at a crossroads”.

Best wishes,

Guy Dunn
Chief Executive Officer

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