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One of the largest and most dynamic economies in the Asia Pacific region, with the fourth‑highest‑population in the world, Indonesia’s is characterised by its large and diverse domestic market, rich natural resources and its strategic location on global shipping lanes, which offer good business and investment opportunities.
Indonesia is currently under the medium‑term development plan (2020 to 2024) focuses on infrastructure development and education and healthcare social assistance programmes etc. In addition, the relocation plan of the capital city from Jakarta to Borneo will provide many new opportunities in the infrastructure, construction, banking and financial services sectors. Indonesia also continues to carry out policy reforms to cut red tape in order to improve the business environment and investment climate of the country.
Like other ASEAN countries, the Indonesian economy was hit hard by the Covid‑19 pandemic but bounced back in 2021 as the economy reopened and economic activities resumed. Looking into 2022, the economy faces new challenges as global economy is expected to slow down, which could potentially affect the economy’s export performance. Besides, inflation pressure also weakens consumption, which accounts for more than half of Indonesia’s GDP. Nonetheless, Indonesian economy is expected to maintain its momentum in recovery, thanks to surging commodity prices. IMF predicts a 5.3% annual growth for the year 2022.
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