Risk Analysis of Indonesia
Contents
1. Background 2. Development challenges present in Indonesia 3. Evidence of the “Dutch disease” 4. Institutions in Indonesia 5. Resource curse in Indonesia? And the risk of becoming an Authoritarian state. 6. Different types of contracts and Recommendation of a suitable contract for the firm.
1. Background * 2.1. Indonesia in brief
Modern day Republic of Indonesia was formerly a Dutch colony since the 17th century. Indonesia was briefly occupied by Japan during the World War II. Although Indonesia declared independence towards the end of WWII it took 4 years of fighting and UN involvement to finally be able to receive their sovereignty from the Netherlands to become an independent country in 1949 (CIA 2013).
What began as a struggling parliamentary democratic system became authoritarian since 1957, when President Sukarno declared “Martial Law” and started his authoritarian regime called the “Guided Democracy”. That again was ended after 12 years by an unsuccessful coup allegedly staged by the communists. After the event the provisional MPR dismissed Sukarno as president and appointed General Suharto as his successor in 1968 as the new leader of Indonesia with a new vision called the “New Order” (CIA 2013).
After suffering the Asian financial crisis of 1997-98, Suharto came under immense scrutiny from the international donor organizations as well as the public rioting on the street which quickly developed into a full-blown “Indonesian 1998 revolution” ultimately leading to his resignation. A free parliamentary election was held in 1999, and Indonesia’s first direct presidential election saw Susilo Bambang Yudhoyono win the election in 2004. He was re-elected to a second term in 2009 and is the incumbent president of Indonesia today. (CIA 2013) * * Indonesia has around 300 distinct ethnicities but the major ethnic groups are Javanese at 40.6% of the population, followed by Sundanese at 15% and
1. Background 2. Development challenges present in Indonesia 3. Evidence of the “Dutch disease” 4. Institutions in Indonesia 5. Resource curse in Indonesia? And the risk of becoming an Authoritarian state. 6. Different types of contracts and Recommendation of a suitable contract for the firm.
1. Background * 2.1. Indonesia in brief
Modern day Republic of Indonesia was formerly a Dutch colony since the 17th century. Indonesia was briefly occupied by Japan during the World War II. Although Indonesia declared independence towards the end of WWII it took 4 years of fighting and UN involvement to finally be able to receive their sovereignty from the Netherlands to become an independent country in 1949 (CIA 2013).
What began as a struggling parliamentary democratic system became authoritarian since 1957, when President Sukarno declared “Martial Law” and started his authoritarian regime called the “Guided Democracy”. That again was ended after 12 years by an unsuccessful coup allegedly staged by the communists. After the event the provisional MPR dismissed Sukarno as president and appointed General Suharto as his successor in 1968 as the new leader of Indonesia with a new vision called the “New Order” (CIA 2013).
After suffering the Asian financial crisis of 1997-98, Suharto came under immense scrutiny from the international donor organizations as well as the public rioting on the street which quickly developed into a full-blown “Indonesian 1998 revolution” ultimately leading to his resignation. A free parliamentary election was held in 1999, and Indonesia’s first direct presidential election saw Susilo Bambang Yudhoyono win the election in 2004. He was re-elected to a second term in 2009 and is the incumbent president of Indonesia today. (CIA 2013) * * Indonesia has around 300 distinct ethnicities but the major ethnic groups are Javanese at 40.6% of the population, followed by Sundanese at 15% and
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