Recent Market Policies of Indonesian Government

Question: Describe recent market policies of Indonesian government. Answer: Economic: It can be seen that Indonesia is one of the leading developing country and the government has taken several effective steps to increase the GDP growth for the past few years. It has been observed that the Indonesian Government spends only 23.5% on their GDP and they have earned the revenue of $92.62 billion and their expenses are about $98.88 billion. Moreover, the country has gained special attention on FDI and has good FDI inflow with $67.3 billion. This statistics show the fact that Indonesia is consistently strengthening their economic sector and this is one of the major reasons for any of the foreign countries to invest in. Apart from that, it can be mentioned that the Indonesian Government has changed its import and export policies recently that is favorable enough for the foreign countries to export (Rosser, 2013). Political: It can be found that the political system of Indonesia is purely democratic and the president and the vice president of the country are elected through parliament. Therefore, the trade system of this country is fare enough and thus many foreign countries can easily export products in Indonesia maintaining proper governmental rules and regulations. However, it can be stated that the country is struggling hard to get the financial stability and thus has successfully introduced numerous reforms. These features attract the attention of the foreign companies and thus the country has been receiving enough FDI (Guesmi Teulon, 2014). Figure 1: PEST analysis Social: Population of Indonesia has been increasing steadily with 1.13% and thus the demands of several products are high enough in this country. However, market analysis says that the demands of the food products are high and thus it can be stated that the export condition of Australian mangoes in the Indonesian market is favorable (Hermes Lensink, 2013). It can be stated that Indonesia is the largest of the ASEAN economies with the impressive political and economic track over the last one decade and reports say that the economy of Indonesia is expected to grow 6% to 7% in 2015. The Department of Foreign Affairs and Trade regulates the entire export and import activities in Indonesia and the rules and the regulations are favorable enough for Australia (Rifin, 2013). The agriculture minister of Indonesia has stated that he is encouraging new market of foods and beverages to deal with the excess supply after Indonesia slashed the import quota of Indonesia (Hermes Lensink, 2013). References Rosser, A. (2013).The politics of economic liberalization in Indonesia: state, market and power. Routledge. Guesmi, K., Teulon, F. (2014).Equity Market integration and Currency Risk: Empirical Evidence for Indonesia(No. 2014-096). Rifin, A. (2013). Competitiveness of Indonesia's Cocoa Beans Export in the World Market.International Journal of Trade, Economics and Finance,4(5), 279. Hermes, N., Lensink, R. (2013).Financial development and economic growth: theory and experiences from developing countries. Routledge.