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Indonesia's mistaken economic nationalism

Bareksa26 Mei 2014
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Indonesia's mistaken economic nationalism
Fast growing Indonesia has a chance to prove it's a global player - (Reuters/Andy Mukherjee)

Now Indonesia has a major productivity challenge

Bareksa.com - Lets move away from India and Modi's moment this Monday, for a minute because there is a big election coming up in Indonesia ; very important for foreign investors. But it seems though even Indonesia is such a populous country, it has little connection with the rest of the world. Actually Indonesia's political discourse is becoming more inward looking and it's becoming even insular if you will. And the country is taking a nationalistic tone on economic policies at a time when it really needs to deepen its engagement with the rest of the world. Now Indonesia has a major productivity challenge and that cannot, simply cannot be surmounted without more openness to foreign capital, ideas and technology. Now, China's commodity demand we all know is fading and if Indonesia pursues policies, Indonesia is a big commodity exporter, if Indonesia pursues policies that don't get more juice out of capital and its young labor force then the economy, I'm afraid, will fall behind. (Source : Reuters)

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