However, Indonesia has made strides in addressing poverty thanks to strong economic growth and concentrated poverty alleviation legislation. Poverty in Indonesia is both urban and rural, which makes reduction efforts by the government and international groups a uniquely challenging problem.
Timor Leste Partner Post Political and Economic Environment For background information on the political and economic environment of the country, please click on the link below to the U. Department of State Background Notes: The third most populous democracy in the world and the largest nation in Southeast Asia, Indonesia has pursued cooperative relations with its neighbors, thereby contributing to peace and stability in the region.
Indonesia traditionally has acted with a view more to regional consensus than to consistency with U. On the bilateral economic front, the United States is one of the largest investors in Indonesia, when natural resources and financial services are taken into account, and is a major market for Indonesia's exports.
The United States assumed a leading role in the international community's response to the economic crisis that struck Indonesia in Working with international financial institutions, the United States contributed to Indonesian efforts to implement needed financial reforms and doubled economic assistance in support of social safety net programs designed to cushion the impact of the economic downturn on poorer Indonesians.
Thanks in part to long-standing relationships with Indonesian non-governmental organizations, the United States was well placed to provide substantial technical and financial assistance to support Indonesia's June parliamentary balloting, the country's first free elections in over four decades, and to contribute to the country's democratic transition.
Promoting respect for human rights and strengthening democratic institutions, particularly the justice sector and the rule of law, are prominent features of U. Human rights advocates remain pleased that Indonesia began trying major human rights cases, such as the murder of human rights activist Munir Said Thalib, and established a permanent human rights court.
The Commission on Truth and Friendship CTF report placed institutional responsibility on Indonesian security forces for human rights violations in East Timor and recommended additional human rights training to prevent future abuse.
Recently, a number of senior-level officials have been investigated for corruption. The media now generally report developments freely and routinely publish a wide range of opinions on sensitive issues.
The government has allowed new political and social organizations to form freely, and promulgated labor union laws that have permitted more than 70 new labor union federations and hundreds of new unions to form, replacing the single union federation allowed under the Suharto government.
Human rights concerns, however, remain, particularly the lack of accountability for past security force abuses in Aceh and Papua. The Political Situation in Brief Indonesia held its first pluralistic and competitive parliamentary elections in 44 years in June The election campaign was generally peaceful, the voting process went relatively smoothly, and, although there were some allegations of fraud, the major parties accepted the results.
As innational legislative elections in proceeded in a generally free and fair manner, and were exceedingly peaceful and orderly. Some domestic observers complained of irregularities, and the Constitutional Court, in accordance with its mandate, adjudicated numerous disputes, adjusting the allocation of seats in the national and regional parliaments.
Twenty-four political parties participated in the election. The Golkar party, closely identified with Suharto-era governance, regained a plurality in the DPR, winning approximately 23 percent of the vote and DPR seats.
After the national elections, the DPR consisted solely of elected legislators, another democratic advance. Previously, institutional representatives of the Armed Forces and the Police were allocated seats in the parliament. The elections also brought into existence the DPD, a parliamentary body whose members are elected in an individual capacity not from a party list.
Although originally intended to function as an upper house, like the U. Senate, the DPD currently only has a consultative role. True lawmaking authority rests solely in the DPR.
Indonesians directly elected their President and Vice President for the first time in Corruption, the state of the economy and leadership qualities were principal campaign issues.
Since no candidate received more than 50 percent of the vote, a runoff election between the top two candidates — Megawati and Yudhoyono — was held on September Both domestic and foreign observers described the presidential elections as free and fair.
There were no legal challenges to the final result.Government determined to implement populist economic system by issuing a decree People’s Consultative Assembly of the Republic of Indonesia Number IV/MPR/, on-line Lines of State Policy which states that Indonesia’s economic system is a system of social economy.
Indonesia’s economic growth averaged % over the last decade. However, GDP growth has decelerated gradually since peaking at % in to % in , its slowest since The government aims to achieve sustained higher growth and job . Indonesia's main agriculture commodities include rice, cassava (tapioca), peanuts, natural rubber, cassava, cocoa, coffee, palm oil, copra; poultry, beef, pork, and eggs.
Palm oil production is important to the economy as Indonesia is the world's biggest producer and consumer of the commodity, providing about half of the world's supply.
Indonesia’s economic performance has been shaped by government policy, the country’s endowment of natural resources and its young and growing labour force. Alongside the industrialisation of its economy, Indonesia’s trade openness has increased over.
In , Indonesia will be the fourth largest country in the world with a population of million, an increase of % from While this represents relatively strong population growth, it will continue to decelerate over this period due to falling birth rates, increasing death rates and negative net migration.
THE PEOPLE Unity in Diversity Most authoritative sources put Indonesia at the 16th largest economy in the world. Per Capita Income. The per capita income, was US$ 3, in Mineral Resources. Oil and natural gas, coal, tin, copper, nickel ore, bauxite, copper, coal, silver, and gold.