The excessive red tape has driven foreign firms away. It takes 151 days for the paperwork to go through to open a business. The country will suffer because the economy is not being stimulated by would be businesses. The strict policies will have to change in order for Indonesia to thrive. 3.Why is corruption so endemic in Indonesia? What are its consequences?
One reason is that government bureaucrats’ income is extremely low. They result to bribes to make more money. Also the police are throwing foreign business owners in jail for the littlest things to make a profit off of bribes. This is driving businesses away. 4.What are the risks facing foreign firms that do business in Indonesia? What is required to reduce these risks?
Jail time, loss of income to bribes, and long waits to establish a business are the risks that foreign firms are facing. A radical change is required to reduce these risks. Indonesia has an anticorruption drive which may or may not work. 5.What is happening today? Is Indonesia different or the same?
Indonesia has recovered somewhat from President Suharto’s reign of terror, yet the economy is still in shambles.