INDONESIA

FROM THE REDACTION

The Republic of Indonesia is the world’s largest archipelago. Out of 17 000 Indonesian islands only 6000 are populated.

Economy – In 1990s Indonesian economy was is deep financial crisis. The country has a lot of natural resources, including oil, natural gas, copper, tin, and gold. Indonesia is the second largest oil exporter in the world.Indonesia has close trade relations with the following countries: Japan, the US, Singapore, Malaysia, Australia. According to the Central Bank’s data, the 2005 economic growth indicators are good again, in spite of the existing problems. The bank’s representative says that in spite of the low percentage indicator of economic growth, according to different indicators, the capability of investments is still high and the export index is improving.
The country reached the peak of inflation in October 2005. The Central Bank says that the rates have been raised in order to control the growth of inflation. The inflation indicator in October made up 8,0%, this month the inflation indicator has increased considerably since fuel transportation costs are rising.
Japan is going to increase investments in Indonesia and says that new investments will largely contribute to Indonesia’s development. One of the oldest Japanese companies Shumitomo , invested about 1 billion USD in Indonesia. The firm is planning to invest in gold and copper fields on Sumbawa island. It has a possibility to employ 35 000 people and implement 2 billion USD worth of exports annually.

Rudy Pesik – the Vice President of CACCI, a representative of Indonesia. The country has free trade agreements with 16 countries of the world. He hopes that CACCI countries will closely cooperate with Georgia, implement considerable investments, and contribute to the development of infrastructure. He points out that tourism development in Georgia is very important, since the more tourists will come to Georgia and get to know your country, the larger amount of investments will be attracted. The development of transport infrastructure and logistics should also take place.