Strategic Location and Expanding Global Influence
Indonesia lies at the intersection of the Pacific Ocean, along the Malacca Straits and the Indian Ocean. Over half of all international shipping goes through Indonesian waters. Increasingly, Indonesia is playing a more dominant role in global affairs. It is Southeast Asia’s only member of the G-20 and an active voice for developing world’s concerns. Standard Chartered sees Indonesia’s inclusion in the G-7 by 2030, projecting that Indonesia’s economy could be the 10th largest in 2020 and the 5th largest in 2030.
Indonesia has also become part of a new grouping called “Growth Markets” by Goldman Sachs’ Jim O’Neill, the man who coined the term BRIC. The Growth Markets grouping includes four countries (Indonesia, South Korea, Mexico and Turkey) each representing 1% of the total world’s GDP.
Being the current chair and a leading member of ASEAN, Indonesia shapes integrative approaches in the region for security, trade and commerce, and will be the integral part of the ASEAN Economic Community in 2015.
Finally, Indonesia is emerging as a key player on cross-cutting international policy issues as climate change and the global financial architecture, which will have direct and indirect impacts on business and investment decisions.
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