Batik, one of Indonesia's tradional clothes Indonesia, a member of G-20, is currently the 16th largest country in the world in terms of gross domestic product (GDP) value and has grown to be Southeast Asia's largest economy, with the largest middle class in ASEAN. Recovering from the impact of 1998 global financial crisis, Indonesia is under significant reform in the financial sector, including tax and customs reforms, with strict implementation of Treasury Bills, capital market development and supervision. The recovery measures began showing the targeted impacts in 2005 when economic growth accelerated to 5.6 percent, compared to the growth percentage of 5.1 percent in 2004. The Government has managed to keep the economic growth above 6 percent since 2007, keeping in line with the targeted growth of 6.3-6.8 percent during 2010-2014. It records economic growth of 6.5 percent in 2011, and 6.7 percent growth in the second quarter of 2012. Indonesian economy relies on oil and gas-mining sector, agriculture, forestry, fishery, livestock and tourism. Investment is now driven by strong business confidence and supported by better policies and measures such as low interest rates. Investment increased to 24 percent during the second quarter of 2012, compared to 2011, reaching about US$ 8.1 billion. Fitch and Moody's upgraded Indonesia's credit rating to investment grade in December 2011. These add up the confidence to set the target for a total investment value of about US$ 53 billion by 2014. To this end, the government has set a national initiative called Master Plan for the Acceleration and Expansion of Indonesian Economic Growth (MP3EI). The development initiative aims to attract greater foreign investment to boost economic growth nationwide and raise Indonesia's GDP to around US$ 4.5 trillion by 2025, which will place it among the world's 10 largest economies. The MP3EI divides the country into six economic corridors, namely Java, Sumatra, Papua-Maluku, Kalimantan, Sulawesi, and Bali-Nusa Tenggara. It prepares projects falling under the new plan, some of which were already under way, including nationwide Internet broadband access, hydropower and solar power plants, a modern steel mill, a palm oil industry zone, access roads, toll roads, airports, dams, reservoirs, as well as nickel, cobalt and aluminum facilities. In March 2012, the government announced it would launch 84 infrastructure projects worth Rp 536.3 trillion this year as part of the MP3EI. The statement detailed that 15 projects valued at Rp 66.2 trillion would be financed by the government, with another 20 projects worth Rp 90.3 billion to be backed by state-owned companies, and 38 projects totaling Rp 301.76 trillion to be funded by the private sector. Public-private partnerships (PPPs) are to develop the remaining 11 projects, worth Rp 78.2 trillion. Furthermore, Indonesia launched a new initiative that combines creative assets with economic development, called Creative Economy. The initiative will intensify the productivity of sectors related to music, theatre, film, performing arts, printing, industrial design, spa and handicrafts. Creative Economy is expected to boost the tourism sector as well. The Government aims at opening new economic opportunities driven by creative, artistic ideas that will employ a lot of work force. In this regard, it improves the protection of intellectual property policy and prepares the banking facilities as support element. All measures are also taken to articulate Indonesia's commitment in alleviating poverty and dealing with unemployment, and have succeeded in reducing them to 6.56 percent for unemployment rate (7.7 million people), and 12.36 percent for poverty rate (29.89 million people). Furthermore, Indonesia has started projects for better infrastructure, and improved law enforcement, particularly those related to business. Another important national agenda is to ensure sustainability aspect of the economy, especially in sectors related to forestry, fishery and agriculture.
