# data[].attributes.body
High corruption in politics, even in police forces. Long lasted dictatorship. For a long time (during dictatorship) only family and friend's enterprises were financially favoured, leading to a drawback of other companies. There are high FDI rates in natural resource companies (i.e. foresting) and low ones in all other industries, causing low development in high end industries, which would actually help the country grow. The political and economical factors are closely tied one to another, because the situation started getting better after the dictatorship ended, but yet the corruption still keeps up high rates, making it hard to create new businesses (which takes about 151 days to develop).

# data[].attributes.body
Large amounts of debt,
inflation declined
increase in labour
unemployment 7%
enterprises left Indonesia.

# data[].attributes.body
-151 days to complete paperwork in Indonesia
-salaries are low
-high level of corruption (110 out 178 countries)

# data[].attributes.body
Economic factors that = investors leaving, factories shutting down and the fall of stock of foreign direct investment.

# data[].attributes.body
due to population and labour productivity
investment in Indonesia natural resources like mining, oil and gas production which increased the FDI stock to $80 billion
the oil prices went down which means more cheaper trade

Answer 1
due to debt which Indonesia accumulated during the 1990s.
90%of the population lacks access to modern sewerage facilities which means 90% of the population is low income category which means they lack skills which can be used to help the Indonesian economy.
-

Answer 4
high level of corruption
bribes
entire legal system including police in involved in corruption
this is due to people in Indonesia don't earn that much therefore, they involve in corruption.

answer 3
the government employees get paid less so they involve in corruption in order to earn more money

# data[].attributes.body
- Dictatorship
- Crony capitalism
- Massive debts accumulated during the 1990s
- Lack of public investement
- Lack of private investment (particulary oil industry)
- Excessive amount of paperwork to start a business (151 days)
- Endemic high level of corruption (Indonesia ranks 110 out of 178)
- Poor living conditions of the indonesian people

Politcal and economic factors are related between them

# data[].attributes.body
https://www.ig.com/uk/trading-strategies/emerging-market-economies--brazil-181010

# data[].attributes.body
-          Geographical: vast country

-          Population: different languages, wide ethnical diversity

-          High level of unemployment

-          Poor infrastructure

-          Slow bureaucracy

# data[].attributes.headline
- Suharto who was famous for this crony capitalism, was the major factor why Indonesia has a poor economic performance. He was not elected the traditional way, by the public which is showing corruption and lowers the potential of the country to increase its FDI. 

# data[].attributes.subject
- Suharto who was famous for this crony capitalism, was the major factor why Indonesia has a poor economic performance. He was not elected the traditional way, by the public which is showing corruption and lowers the potential of the country to increase its FDI. 

# data[].attributes.body
The answer to this questions is indeed complex in it's simplicity. At the time Indonesia had so many internal problems already, that the investors didn't want to take the risk of conducting a business within the country. On top of that, running a business in Indonesia was very expensive, having to pay bribes for basically everything.

What is required to reverse this trend?

In order to make things economically good again Indonesia would have to take a huge step backwards and repair all the fundamental problems it has e.g. corruption, working conditions, market stability etc...

# data[].attributes.body
-High levels of corruption
-IMF 48Billion rescue package
- High levels of debt in the 1990s.
-High unemployment
- Low growth in labour productivity
-Excessive bureaucratic regulation
- Poor infrastructure

# data[].attributes.body
https://tradingeconomics.com/brazil/corruption-index

# data[].attributes.body
Due to economic and political issues.
Low economy levels
Population and labour productivity
Low investment in the overall infrastructures.
Tsunami in 2004

Implications:
High levels of unemployment
Low investments in overall economy
Impact negatively on the economy
No increase in development
Foreign capital left the country

They should invest more in public infrastructure, better overall quality of life, increase investment in the overall development of the country.Better quality for companies to invest. Increase employment opportunities.
Invest into their natural resources, eg. mining , oil and gas production.

# data[].attributes.body
Economic growth is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP, usually in per capita terms. Growth is usually calculated in real terms – i.e., inflation-adjusted terms – to eliminate the distorting effect of inflation on the price of goods produced. Measurement of economic growth uses national income accounting. Since economic growth is measured as the annual percent change of gross domestic product (GDP), it has all the advantages and drawbacks of that measure. The "rate of economic growth" refers to the geometric annual rate of growth in GDP between the first and the last year over a period of time. Implicitly, this growth rate is the trend in the average level of GDP over the period, which implicitly ignores the fluctuations in the GDP around this trend. An increase in economic growth caused by more efficient use of inputs (such as labor productivity, physical capital, energy or materials) is referred to as intensive growth. GDP growth caused only by increases in the amount of inputs available for use (increased population, new territory) is called extensive growth.

# data[].attributes.body
- Bad labour productivity
- Economical and political problems
-  Tsunami Sumatra 2004
- Period of uncertainty in the political system ( from dictatorship to democracy)
- Lack of public investments and private.

Implications for the country:
- Economy will decline
- Unemployment rates will grow
- Worse living conditions
- Increase of corruption

To reverse this trends the country should do more public investments and private investments.
Provide a better life qaulity for indonesian people.
Non corrupt goverment.
Invest on national resources (oil)

# data[].attributes.body
Why is corruption so endemic in Indonesia? What are its consequences?

-          “ Government bureaucrats, whose salary are very low, inevitably demand bribes from any company that crosses their paths- and Indonesia’s penchant for bureaucratic red tape means a long line of officials might require bribes. Abdul Rahman Saleh, a former attorney general in Indonesia, has stated that the entire legal system, including the police and prosecutors, is mired in corruption. The police have been known to throw the executives of foreign enterprises into jail on the flimsiest of pretexts, although some well-placed bribes can secure their release. Even though Indonesia has launched an anti-corruption drive, critics claim it lacks teeth. The political elite are reportedly so corrupt that it is not in their interest to do anything meaningful to fix the system. “

-          What are its consequences?

Foreign companies will not extend themselves in Indonesia because of the high level of corruption can cause difficulties, the country shows instability.

# data[].attributes.body
There are no public investments- no employment  in order to enable the living conditions and road works.
-Oil investments and production are significantly low.
-tsunamis destroying land

# data[].attributes.body
Poor political choices
Consequences:
Poor infrastructure
50% of population has no electricity
Low investment in public infrastructure
Over 90% of population lack of access to modern sewerage facilities

# data[].attributes.body
Corruption level is high. It takes up to 151 days to compete paperwork in Indonesia. Also salary income is low.

# data[].attributes.body
In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.When the price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index, usually the consumer price index, over time. The opposite of inflation is deflation. Inflation affects economies in various positive and negative ways. The negative effects of inflation include an increase in the opportunity cost of holding money, uncertainty over future inflation which may discourage investment and savings, and if inflation were rapid enough, shortages of goods as consumers begin hoarding out of concern that prices will increase in the future. Positive effects include reducing the real burden of public and private debt, keeping nominal interest rates above zero so that central banks can adjust interest rates to stabilize the economy, and reducing unemployment due to nominal wage rigidity. Economists generally believe that high rates of inflation and hyperinflation are caused by an excessive growth of the money supply. However, money supply growth does not necessarily cause inflation. Some economists maintain that under the conditions of a liquidity trap, large monetary injections are like "pushing on a string". Views on which factors determine low to moderate rates of inflation are more varied. Low or moderate inflation may be attributed to fluctuations in real demand for goods and services, or changes in available supplies such as during scarcities. However, the consensus view is that a long sustained period of inflation is caused by money supply growing faster than the rate of economic growth. Today, most economists favor a low and steady rate of inflation. Low (as opposed to zero or negative) inflation reduces the severity of economic recessions by enabling the labor market to adjust more quickly in a downturn, and reduces the risk that a liquidity trap prevents monetary policy from stabilizing the economy. The task of keeping the rate of inflation low and stable is usually given to monetary authorities. Generally, these monetary authorities are the central banks that control monetary policy through the setting of interest rates, through open market operations, and through the setting of banking reserve requirements.

# data[].attributes.body
Low public infrastructure investments from the government, to access electricity facilities like expensive oil prices.
High levels of corruption are all at risks factors facing firms that do businesses in Indonesia.
Any foreign firm doing business in any country should have knowledge of the current economic and political status and ability to import its own resources in order to reduce risks.

a firm has to feel confortable and safe when entering a new country. Furthermore, it has to see that moving to a new country is a good opportunity, not a threat. For these reasons, good changes in the political and economical environment needs to be made, like improving the living conditions and the investments made in both the private and public sector.

# data[].attributes.body
Low level of economy
Political and Economic Issues
Land destroyed by tsunami

# data[].attributes.body
Because the economy in   Indonesia was confronted with   massive issues, large   corporations determined that it was highly risky to conduct business within the county. Furthermore it was extremely

expensive, due to having to pay bribes in-order to maintain the businesses

# data[].attributes.body
Q4

Looking at the World Bank study, Indonesia takes longer time to complete the paper work needed to start a business, 151 days to be exact. This is a risk for the start up businesses who intend to invest in the country.

After a tsunami in 2004 the country’s infrastructure was damaged and now 90% of the population lacks access to modern sewerage facilities.

To reduce those risks, the public would need to stand up as a nation and express their wants for a better infrastructure, equal rights, anti-corruption and smoother bureaucracy.

A risk factor is the other competitive countries that tend to develop at the moment, e.g.China, Malaysia, Thailand.

Many businesses would rather move their premises to those faster developing countries, which will lead Indonesia to a lower economic growth and poor infrastructure.  The decline in public investments such as in oil industries is another risk for the country, theres a lower rate in private investments too.

# data[].attributes.body
- Government salaries are too low - The police and prosecutors are involved in issues
- Turns many people away from trying to start their own

business as it takes on average 151 days to do so

- Negative effect on the economy and the people who live in Indonesia.

# data[].attributes.body
- Low public investments from the government.
- Limited access to needs like electricity
- High oil prices
- Long amount of time it takes to complete paper work to start up a business
- High level of corruption
- High risks
- Foreign firm needs to have extensive knowledge of the current economic and political ongoing + ability to import its own resources to reduce these risks

# data[].attributes.body
The level of corruption in Indonesia is very high as the government buroceatics’ salaries is very low. For this reason they ask new companies a sum of money to pass the the red-tape pathway. The problem is that the bureaucracy corruption plus the excessive red-tape pathway is excluding other businesses to enter in the Indonesian market.