Abstract

Indonesia looks poised for a new era as a new government takes charge. The country has completed a remarkable transformation from near-dictatorship to democracy, with the coming to power in October 2004 of Susilo Bambang Yudhoyono, the country’s first directly elected president. The economy has not been doing well for the past six years. During Suharto’s tenure, rapid economic growth had lifted millions of Indonesians out of poverty. But in recent years, growth has slowed down. Unemployment has risen sharply. Regaining the confidence of foreign investors, boosting investment spending, attacking corruption and resolving the tension between the centre and the regions will take more than a single presidential term to resolve. Moving decisively on all these fronts will also need plenty of political courage. Will Yudhoyono’s government be able to rise to the occasion?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Indonesia, Susilo Bambang Yudhoyono, Suharto, Indonesia's rapid economic growth, Corruption, Indonesia's Investment Spending and Yudhoyono's government