Indonesia will elect a new president in February 2024.
It is an exciting time as current President Jokowi’s term comes to an end and discussions about his legacy and potential successors are gaining momentum. President Jokowi has been credited with driving economic growth in Indonesia : the country has been among the world’s fastest-growing economies during his tenure (2014 – 2024).
The IMF projects that Indonesia will become the 13th-largest economy by 2028. Key to this growth has been Jokowi’s focus on infrastructure development, which has attracted significant foreign investment or FDI, particularly from China.
In 2022, FDI reached USD 45 billion, with Chinese investment accounting for USD 8 billion, four times more than that from America. While Jokowi has strengthened ties with China through investment, he has also worked to balance this reliance by enhancing security links with America and its allies.
On security, Jokowi has avoided Sino-dependence: South Korea, America, and France are the main suppliers of military equipment to Indonesia.
Looking ahead to the next presidential elections, there are three major candidates:
Prabowo Subianto, the defense minister and former military officer;
Ganjar Pranowo, the governor of Central Java and a member of Jokowi’s party;
and Anies Baswedan, the former governor of Jakarta.
While an endorsement from Jokowi would carry weight, it does not guarantee the preservation of his legacy. Politics is the first component of the PESTEL business framework. It is important to consider when venturing or investing in a foreign country.
For any question, reach out to us at CINTASIA ???????? ???????? , your expert advisor to doing business successfully in Indonesia.
Source : The Economist.