Indonesia is the largest economy in ASEAN and Southeast Asia's most populous, with 250 million people. However, with a GDP of $1 trillion (out of a global GDP of about $80 trillion), it is considered a small country on international markets. Currently per capita income is at about $4,000; hence, it is considered a middle-income economy but it has an income distribution problem and poverty continues to be significant in some areas, though the number of Indonesians living in absolute poverty has fallen from 39 million in 2006 (18 percent of the population) to 29 million in 2012 (12 percent of the population). Indonesia's exports-to-GDP ratio comes to about 22 percent, which makes it relatively closed compared to other ASEAN economies (average for the region is 53 percent) or even China (25 percent). In terms of Indonesian industrial policy, prior to the Asian Financial Crisis of 1997-98, Indonesia embraced an import-substitution strategy to economic development, though it started to liberalize in the late 1980s and has embarked on a more export-promotion-oriented strategy in recent years. Its (simple) average tariff is 6.9 percent, which puts it in the middle of the pack in ASEAN, but it is estimated to have the second-highest restrictions on services in the Asia-Pacific region and, while non-tariff barriers have decreased in importance, they continue to be relatively high. Compared to its neighbors, Indonesia has few free-trade areas (FTAs) in place, with eight in total: the ASEAN Free-trade Area (AFTA), the five "ASEAN+1" agreements with six Asia-Pacific economies (including Japan, with which it has a special bilateral FTA), and a (shallow) FTA with Pakistan. It is currently a negotiating partner in the "mega-regional" Regional Comprehensive Economic Partnership (RCEP) agreement. Indonesia is a democracy and has a relatively-new President, Joko Widodo (often referred to as "Jokowi"), elected in October 2014, but he has just put in a new economics team, one that is ostensibly open to an outward-oriented approach to trade policy. Jokowi is not an economist and would welcome insights from external advisors to corroborate recommendations that he is getting from his economic team. You have been asked to be part of this team of external advisors. Since he is new to economics in general and international economics in particular, Jokowi has asked us to submit to the team the following questions.