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What political factors explain Indonesia’s poor economic performance?

What
economic factors? Are these two related?
There was Authoritarianism meaning that all of Indonesia was ruled by a dictator
and he repressed the opinions of people who didn’t agree with his ideas. He also
used his control of the political system to make sure that only the businesses of his
family and supporters flourish. Yes they are related, this is because when you have
control of the political system of a country you have the power to affect the
economic system.

Why do you think foreign firms exited Indonesia in the early 2000s? What are
the implications for the country? What is required to reverse this trend?
Foreign firms exited Indonesia because they were behind their Southeast Asian
neighbors, lack of growth in labor and poor productivity public infrastructure. The
implications are that the country economy went through a massive slump. And this
can be easily solved by the government paying more attention to the public
infrastructure of the country and also focusing on developing the human resource
of the country.
Why is corruption so endemic in Indonesia? What are its consequences?
The remuneration that the government bureaucrats receive is considered low as
such they resort to immoral activities such as collecting bribes in order to earn
more revenue. And the consequences are that it causes the country to look
unattractive to foreigners for them to invest in the country.
What are the risks facing foreign firms that do business in Indonesia? What is
required to reduce these risks?
The risk is that there is a massive red tape that makes it difficult to start a business
in Indonesia and also the possibility to be thrown in jail for any small issue. And
the way that this corruption can be solved is by backing the anticorruption drive by
the people of Indonesia.

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