Business in Indonesia: New Challenges, Old Problems

This book examines Indonesia's business environment since reformasi began in 1985 - what stayed the same, what changed, and what could change. Economic recovery has been hesitant. Regime change and political reform have created uncertainties that have deepened reluctance to invest. A raft of government-instigated changes have left their imprint: decentralization, privatization, new company legislation, anti-corruption efforts, nationalization of debt-ridden banks, and firms being forced into receivership. More cautious lending practices by remaining financial institutions have imposed a credit crunch. Increased worker militancy and minimum wage rises have led some international firms to reconsider their presence in Indonesia. Changes in the business environment have caused a redefinition of private enterprise-government relations, inducing firms to re-examine their organization and management. The book includes insights of distinguished and stimulating speakers from business, independent research organizations, and academic institutions in Indonesia, Australia and elsewhere.