Having a GDP size of nearly US$ 707 billion in 2010, Indonesia is the largest economy in Southeast Asia.  Much less affected by the global financial crisis than its neighboring countries, Indonesia’s economy grew by 4.5% in 2009, 6.1% in 2010 and is expected to reach 6.4% this year, providing a case for Indonesia’s inclusion in the so-called BRIC economies.  Future economic expansion is expected to include more inclusive growth as nominal per-capita GDP is expected to quadruple by 2020, according to a Standard Chartered report.

 

A large part of our economic success is a result of prudent fiscal stewardship that focused on reducing the debt burden.  Indonesia’s debt to GDP ratio has steadily declined from 83% in 2001 to 26% by the end of 2010; the lowest among ASEAN countries, aside from Singapore which has no government debt. 

 

As a result, in April 2011, Standard & Poor’s had improved Indonesia’s credit rating to BB+, the last of the three major credit rating agencies to upgrade sovereign debt to one notch below investment grade. The rating reflected Indonesia’s resilience to the global financial crisis, improving government and external credit-metrics, and an ability to manage domestic political challenges to the reform agenda.

 

These achievements have increased the frequency with which Indonesia is being compared to middle-income developing nations like Brazil, India and Mexico.  Economically strong, politically stable, reform minded, Indonesia is an emerging global powerhouse in Asia.