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Indonesia’s economy in the past few years has grown and represents a promising future for foreign investment. The key to future growth for Indonesia remains internal reform, increased investment from outside investors, political stability and a strong presence in the global economy. First off, it is important to look at the current economic situation in Indonesia. Economic situation Indonesia’s macroeconomic situation is in a promising phase. Based on the last five years, there seems to be steady growth, which may indicate that Indonesia is slowly but unquestionably coming out of tough times. The Gross Domestic Product in 1999 was at $663 billion (2002 est.) (See Exhibit A) The political, social and security climate of Indonesia is risky by many people’s standards, but the situations are improving. These conditions have yet to be resolved resulting in high degree of economic and financial risk. There are different reforms encompassing broad-based areas such as “political reform, regional autonomy, fiscal transparency and financial monitoring, legal reform as well as financial sector reforms.” These changes provide optimism for investors. Indonesia is very risky. For decades, Indonesia has been trying to combat co