Case questions

Indonesia: Attracting Foreign Investment

1. What were the main mistakes made by governments of this country during the period from 1949 till 2005? Please pay special attention to the following periods:

The Early Years of Independence: 1949-1965;

The Suharto Regime: 1965-1997;

The Asian Financial Crisis: 1997-1998;

1998-2004: "Reformasi".

2. What was the economic situation in Indonesia in 2006? Please address the business environment, main clusters and companies.

3. Please analyze attracting FDIs to the economy of this country during the period after 2004. What had to be done to improve this process?

4. Please address the competitiveness of Indonesia using the case text and the exhibits given at the end of it. What should be done to improve it?

5. What lessons can other countries learn from this case?