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Property Market Overview |
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Language Religion | Currency/Money | Climate | International dialling code Capital | Electricity | History | Government | Economy | Visas Healthcare | Travel For foreigners with a desire to purchase real estate in Indonesia, ownership is the biggest concern. Much like Thailand, foreigners in Indonesia typically receive rolling lease contracts and are not allowed to buy land. They are, however, allowed to purchase condominiums, but not the land on which the building sits. Recovering from the effects of the 1997 Asian Crisis and the subsequent political crisis, Indonesia is slowly getting back on track. But a number of setbacks continue to plague its growth. Terrorism is a continuing threat in Indonesia, with bombing happening sporadically throughout the capital. Other setbacks have occurred to the detriment of the real estate industry, from tsunamis and earthquakes to the 2007 floodings that wreaked havoc in Jakarta. In terms of foreign investment, Bali and Jakarta are the two main areas attracting interest, both for very different reasons. Essential information Location Population Language Religion Currency/Money Climate International dialling code Indonesia, officially the Republic of Indonesia, is made up of 17, 508 islands in the Malay archipelago, making it the world's largest archipelagic state. With a population of over 200 million, it is the world's fourth most populous country and the most populous Muslim-majority nation. It shares land borders with Papua New Guinea, East Timor, and Malaysia. The Indonesian Archipelago, home of the Spice Islands, has been an important trade destination since at least the time of the Srivijaya Kingdom with whom Chinese sailors traded with in the seventh century.Indonesia's history has been influenced by numerous foreign powers that were drawn to the archipelago by its wealth of natural resources; these have included Indians, under whose influence Hindu and Buddhist kingdoms flourished beginning in the early centuries CE, Muslim traders who spread Islam beginning in the thirteenth century, and Europeans who fought for monopolization of the spice trade during the Age of Exploration. Indonesia was colonized by the Dutch in the early 17th century, and later occupied by Japan from 1942 to 1945 in WWII. Indonesia declared its independence following Japan's surrender, beginning a four year process of negotiations until the Netherlands finally agreed to let go of its colony. Indonesia's post-independence history has been anything but smooth, with political instability including separatism and corruption, periods of rapid economic growth and decline, environmental catastrophe, and a recent democratization process. Indonesia is a unitary state consisting of numerous distinct ethnic, linguistic, and religious groups spread across its numerous islands that have not always been united. However, a shared history of colonialism, rebellion against it, a national language, and a Muslim majority population have helped to define Indonesia as a state. Indonesia's national motto, "Bhinneka tunggal ika" ("Unity in diversity", derived from Old Javanese), reflects the amalgamation of a myriad cultures, languages, and ethnic groups that shape every aspect of the country. Sectarian tensions and separatism, however, have threatened political stability in some regions, leading to violent confrontations. Indonesia is the world's third largest democracy after India and the United States with a democractically elected parliament and president.Its chief of state and head of government is President Susilo Bamban Yudhoyono, who was elected in 2004. Vice president of Indonesia is Muhammad Yusuf Kalla. Yukhoyonyo received 60% of 2004 vote, ousting former president Megawati Sukarnoputri from her position. The president and vice president are elected for five year terms and eligible for a second. The next presidential election will be held in 2009. A member of the Association of Southeast Asian Nations (ASEAN) since the group's formation in 1967, Indonesia is the world's fourth most populous country after China, India, and the United States. More than half the population lives on the island of Java, home to capital city Jakarta. Prior to independence, Indonesia's economy was oriented to providing raw materials to The Netherlands. Subsistence agriculture, primarily the production of rice, was the mainstay of most of the population, but the economy also relied on plantation agriculture, including the production of sugar and rubber. Industry was not promoted so as to avoid competing with The Netherlands. The first few decades after independence were plagued with economic mismanagement. The government focused on unifying the country politically, not on rebuilding Indonesia's crumbling infrastructure or improving the economy. President Suharto's 'New Order' government gave much more priority to the economy, instituting a series of five-year plans (Repelita) which began in 1969. The aims of Suharto's economic policy were to expand foreign investment and increase trade. When export revenues from oil declined in the early and mid-1980s, Indonesia was forced to expand other exports. To make these exports more competitive on an international level, the government deregulated parts of the economy such as coastal transportation, finance, and banking. Indonesia's economy grew impressively during the 1980s and much of the 1990s, largely on the strength of its natural resources, which include a large population, solid energy reserves, substantial mineral deposits, and fertile farmland. In mid-1997, when the economic crisis hit, the Indonesian currency plummeted, and the government, banks, and businesses struggled to repay their foreign debts. The government negotiated an aid package with the International Monetary Fund (IMF). In exchange for massive loans, Indonesia agreed to implement austerity measures such as reducing government spending and reforming the financial sector. The crisis deepened in 1998 when the IMF halted funds, claiming that the Suharto regime had failed to abide by IMF terms, and as social unrest began to spread. By late May 1998 the economic and social crisis had caused President Suharto to resign. Of all the countries hit by the Asian crisis, Indonesia was hit the hardest. Its GDP fell 13.2 percent in 1998 and shrank again in 1999. Nearly half of all corporations were insolvent in 1999, and unemployment increased. After the authoritarian Suharto regime ended, the IMF agreed to resume a multimillion-dollar loan program with the Indonesian government. Any foreign national who enters territory of Indonesia is required to possess a valid Travel Document and the Entry Permit or Visa. Some foreign nationals do not need to apply for a visa. All other foreign nationals are required to possess a Visa. Nationals of many European and North American countries can apply for their Transit (7 days maximum stay) and/or Tourist visa upon arrival at the majority of Indonesia's airports/seaports for a maximum visit of 30 days Given Indonesia's vast size and remote jungle terrain, travelers need to take a variety of precautions before heading away from the capital Jakarta or the main tourist resorts of Bali. Health threats include dengue fever, giardiasis, hepatitis, Japanese B encephalitis (low-risk, found only in rural rice-growing areas), malaria, typhoid and rabies. Jakarta and Bali both feature international hospitals. Indonesia's main entry points are Jakarta and Bali, both serviced by international airlines. Land crossings to Indonesia exist at Entikong, between Kalimantan and Sarawak; at Motoain between West and East Timor; and the road from Jayapura or Sentani (Papua) to Vanimo in PNG. Sea connections can be found between Malaysia and Sumatra, and there is a high-speed ferry from Penang to Medan. The other main ferry connection is between Dumai (Sumatra) and Malaka (Malacca). Ferries also run from southern Malaysia (Johor Bahru) to the Riau Islands. There are also speedboats from east-coast Kalimantan to Sabah in Malaysia. |
