6 Indonesia is a country of approximately 200 million citizens. This is a land where Islam, Christianity,

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6 Indonesia is a country of approximately 200 million citizens. This is a land where Islam, Christianity, and Hinduism coexist. It is a land where there is a huge income gap between the wealthy ethnic Chinese and the remaining 190 million Indonesians. It is also the land which had been ruled for decades with an iron hand by President Suharto who was then in his seventies. Suharto, while calling for more political openness, had ruled like a military strongman. His 1994 crackdown included closures of publications, beatings of demonstrators, and arrests of labor activists.The country, at the time appeared to be relatively stable.

How should Indonesia’s type of government be classified: two-party, multi-party, single-party, or dominated one-party? In addition, assess Indonesia in terms of market potential and risks.

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