Although Indonesia has returned to relative orderliness since the chaos of the late ----s and early ----s, the country faces multiple challeng- es and threats to its stability that could flare up again if President Susilo Bambang Yudhoyono s successor proves incompetent or if improved governance fails to take hold. As such, investors will continue to view Indonesia as one of Asia s riskier destinations. ...However, more recent increases in fuel prices by the Yudhoyono administration in -------, as well as ----, have met more subdued resistance. Young Population: Although Indonesia s total fertility rate � the average number of children a woman will have in her lifetime � has fallen to an estimated -.-, just above replacement level (-.-), the country s population is very young as a whole. Suharto seized power from Indonesia s first president, Sukarno, in ---- and ruled through a military-dominated authoritarian regime whose political vehicle was the still-influential Golkar party. ...The economy continues -- Business Monitor International Ltd www political outlook reaping the Demographic Dividend Demographic Profile e/f = BMI estimate/forecast.
...Budget balance, of GDP -- --.- --.- --.- --.- --.- --.- --.- --.- --.- --.- --.- Goods and services exports, USDbn - ---.- ---.- ---.- ---.- ---.- ---.- ---.- ---.- ---.- ---.- ---.- Goods and services imports, USDbn - ---.- ---.- ---.- ---.- ---.- ---.- ---.- ---.- ---.- ---.- ---.- Balance of trade in goods and services, USDbn - --.- -.- -.- --.- --.- --.- --.- --.- --.- --.- --.- Balance of trade in goods and services, of GDP - --.- -.- -.- -.- -.- -.- -.- -.- -.- -.- -.- Current account balance, USDbn - ---.- ---.- ---.- ---.- --.- --.- --.- -.- --.- --.- --.- Current account balance, of GDP - --.- --.- --.- --.- --.- --.- --.- -.- -.- -.- -.- Foreign reserves ex gold, USDbn - --.- ---.- ---.- ---.- ---.- ---.- ---.- ---.- ---.- ---.- ---.- Import cover, months - -.- -.- -.- -.- -.- -.- -.- -.- -.- -.- -.- Notes: e BMI estimates. ...Its citizens have become increasingly disgruntled following current president Susilo Bambang Yudhoyono s administration s failure to keep to his campaign pledges, while investors, both local and foreign alike, have been holding back on investment amid hints of surfacing protectionism. taBle: Political overview - Long-term political outlook -- outlook improved, But uncertainty Lingers Although Indonesia has returned to relative orderliness since the chaos of the late ----s and early ----s, the country faces multiple challenges and threats to its stability that could flare up again if President Susilo Bambang Yudhoyono s successor proves incompetent or if improved governance fails to take hold. As such, investors will continue to view Indonesia as one of Asia s riskier destinations. ...Further support may also stem from an improvement in the government s finances, which would in turn allow for greater infrastructure spending, and ultimately stronger loan growth.
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