Recently, as the Korean government and business community exhibited increasing interest concerning Southeast Asia, a dramatic increase in trade and investment has been observed with the region's largest economic power: Indonesia.
However, understanding Indonesia’s present circumstances must be predicated on an understandingof the country's past history; especially the part concerning the impact of political and economic changes wrought by the Asian Financial Crisis of the late 90s that directly influenced the shaping of the country's present political and economic system.
This study begins with a general description of the Indonesian economy in Chapter 2, followed by an outline of political changes in Chapter 3 that will serve as background information for understanding economic changes that occurred in the country.
The politics during this timeframe can be divided into a period of chaos consisting of Habibi, Wahid, and Megawati presidencies; followed by a time of stability after the inauguration of Susilo Bambang Yudhoyono as president in 2004 and his reelection in 2009. This section contains details on constitutional revision, local autonomy, various separatist movements, and terrorist activities.