- Highly prospective for resource exploration - which can serve as a basis for mineral & agricultural export industries
- New popular leader able to drive policy direction
- Peace agreement in Aceh which will facilitate investment
- Tax reform being adopted by the President
- Petroleum revenues helping the country to preserve its energy self-reliance
The Indonesian Archipelago is however not without its problems, the most important being:
- High levels of corruption & business
- Lack of public accountability in goverment and corporates
- Ethnic and religious tensions which divide the country and remain a basis for tension. Prior resettlement policies could incite such problems. Regional autonomy will be critical.
The Indonesian government and Acehnese rebels have reached a landmark peace agreement after 30 years of fighting. The Free Aceh Movement (GAM) has surrendered 25% of their weapons, and will surrender the balance on 31st Dec’05. The Indonesian government is responding by gradually withdrawing its troops from the province. This peace agreement will be a big boon for Indonesia.