The Armed Forces of Indonesia

The Armed Forces of Indonesia

The Armed Forces of Indonesia

The Armed Forces of Indonesia

Excerpt

Indonesia is the largest country in Southeast Asia in terms of both area and population.Including its exclusive economic zone (EEZ), it is the seventh-largest country in the world in area, with a total land area of 1.92 million sq km—about one-quarter that of continental Australia and five times that of Japan—and a land-to-sea ratio of 1:3. It is also the world's fourth most populous country, with a heterogeneous population of more than 190 million which is expected to reach 300 million by the second half of next century.

Moreover, Indonesia straddles the strategically important sea lanes between the Indian and Pacific oceans which link East Asia to the Indian subcontinent, Africa, Europe, and the oil-rich Middle East.It is located in a region where burgeoning economic growth, political transformation and realignments of power place security and security structures in potentially dangerous flux.

Since the suppression of an attempted coup d'état against President Sukarno in 1965 brought the 'New Order' President Suharto to power, the government has implemented a limited free-market economic development program.Strong economic‐ nationalist sentiment, still evident in the number and scale of public enterprises, the depth of economic regulation and patronage, and a determination to cling to an inefficient network of cooperatives, has hampered economic progress. But the increasing power of the global economy—and the resulting intense competition for international capital and markets—has compelled the government to institute (albeit grudgingly) a series of progressively more liberal economic reforms.

These have offered more and more incentives to potential investors and have deregulated sections of the economy to improve their competitiveness. The liberalising trend is also evident in President Suharto's strong in-principle support for the Asia Pacific Economic Cooperation forum . . .

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