New Year! New Government!New Hope?

James Castle
President, Castleasia

As 2014 draws to a close, Indonesia faces the year ahead with a new government but some very familiar problems on the economic frontdeclining growth, slowing investment, rising inflation, high interest rates and a weakening currency.

While the country can breathe a deep sigh of relief that the confrontation and acrimonious stalemate promised by the opposition majority following its candidate's narrow defeat has not materialized, the road ahead is far from smooth.

Although the country's five percent gross domestic product (GDP) growth rate would be the envy of most countries today, it has been in slow, steady decline since it peaked at 6.8 percent in 2010. It has risen only once in the last 13 quarters.

December 23, 2014