VIVAnews - Despite its huge sources of energy and commodities, Indonesia was not yet considered a promising market by foreign investors in the last decade. Massive corruption practices and small domestic market were deemed choking the investment.
Today, Indonesia is heading toward a better direction. Investors believe that corruption is no longer the main problem that the nation deals with.
"The Indonesian economy has a very remarkable scale," a special report that Standard Charteredd Bank (SCB) prepared stated as quoted by VIVAnews on Thursday, Oct 15.
The report was mapped out by SCB Group Head of Global Research in England Gerard Lyons, SCB Indonesia Senior Economist Fauzi Ichsan, economist Eric Sugandi, SCB Singapore Regional Head of Rates Strategy Lee Wee Kok, SCB Singapore Senior FX Strategist Thomas Harr.
Indonesia is among countries with the largest population in the world after China, India and the United States. In addition, the number of the middle-class rises significantly, now amounting to 26 million. The nation also has high ratio of domestic demand against the GDP. "The country may have a economic growth rate by between four and five percent in 2009 and 2010, which will soar to six percent in 2011," the report claimed.
Given the sustainable growth, the scale of the Indonesian economy has reached out to US$510 billion - six times higher than Vietnam and twice as much as Thailand.
Nonetheless, the nation is still categorized a developing country with a large population of the poor. According to the Asian Development Bank (ADB), the nation's GDP in 2007 stroke US$1,250 while India was at US$1,650 and China with US$2,360.
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Translated by: Bonardo Maulana Wahono
