Over the last decade, Indonesia’s economy has grown at above 5% every year. This is encouraging news, especially since it is happening at a time when the rest of the world is experiencing an economic slowdown. In addition to the strong domestic consumption and government spending, robust investment — especially foreign direct investment (FDI) — has played an important role behind such economic growth.
On May 27, 2011, the government of Indonesia issued its Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development, which aims to transform the Indonesian economy into an “advanced economy” by 2025. To achieve this goal, Indonesia requires substantial investment, a considerable portion of which is to be supplied by the private sector from both domestic and foreign investors.