Reflections

The Indonesian Conundrum

Oct 27, 2015 | 01:37 GMT
(Stratfor)

Indonesian President Joko "Jokowi" Widodo, who finished the first year of his presidency on Oct. 20, campaigned on the promise of significant fiscal, regulatory and economic reform designed to help facilitate Indonesia’s transition from an economy based on raw commodity exports toward one more dependent on manufacturing and industry. However, Jokowi is contending with the challenge of balancing long-term economic plans with short-term domestic economic needs. This means that his reforms are often contradictory -- sometimes offering incentives for foreign investors and other times closing doors to investment in certain sectors....

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