GDP growth in 2007 reached 6,3%, while the figure in 2006 was 5,48%. Export during January-October 2007 has gone up to 19.75% from USD 100.7 billion in the same period in 2006 to USD 114.1 billion in 2007. Foreign Direct Investment up to December 2007 reached USD 10,34 billion while domestic investment reached USD 3.84, an increase of 72% over 2006’s figure. Inflation has been kept to 6.4 %, below the Government’s target of 6.5%. Foreign exchange reserves are at an all-time high of over $50 billion, and its stock market has been one of the 3 best performers in the world in 2006 and 2007, as global investors sought out higher returns in emerging markets. The government has introduced significant reforms in the financial sector, including tax and customs reforms, the introduction of Treasury bills, and improved capital market supervision, introduced a new investment law, passed in March 2007.

Indonesia’s economy was marked by overall macro stability. Growth was driven primarily by rapidly expanding exports and also by domestic consumption.  Indonesian economy is has a market-based economy. In the aftermath of the Asian Financial and Economic Crisis that began in mid-1997, the government took custody of a significant portion of private sector assets through acquisition of nonperforming bank loans and corporate assets through the debt restructuring process. Indonesia once enjoyed a period of robust economic growth of 7 -10% throughout the end of the 1970s and the 1980s, that it was dubbed as one of the Asian Tiger economies in Asia. The Asian Financial and Economic Crisis altered the situation when Indonesia’s economy plunged to serious low since the 1960s. Since then, Indonesia has been recuperating from the Crisis.