Economic

Rebuilding Indonesia’s Industrial Estates

The industrial estate business in Indonesia has been rapidly growing since its inception in the 1970s, but poor planning and weak implementation of past policies have led to policy problems in four key aspects: administration inefficiency, poor infrastructure, antagonistic labor relations, and limited incentives. These problems were further compounded by issues such as rising labor costs and soaring land prices in or around Greater Jakarta, where most of the country’s prominent industrial .....

Unraveling Business Licensing Competitiveness in Indonesia

Despite streamlining efforts, business licensing remains a complex and time-consuming process in Indonesia. Domestic and foreign companies alike cite vague and overlapping licensing regulations, high costs of licensing and demands for illegal payments as key challenges when doing business in the archipelago. The World Bank’s 2015 Doing Business survey ranks Indonesia 114th out of 189 countries in terms of ease of business, below Southeast Asian neighbors such as Vietnam (ranked 78) and T.....

Economic Nationalism and Globalization: Old Political Ideologies and New Patterns of World Trade

Economic nationalism emerged as a central theme of Indonesia’s 2014 parliamentary and presidential campaigns. A wide consensus exists among the political parties in support of new restrictions on foreign investment in mining, oil and gas and other key industries. Campaign rhetoric plays on public fears that cheap imported goods are flooding into Indonesian markets and that multinational companies drive down wages and exploit Indonesian workers. Politicians from all parties stress the impor.....