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Business Finance

The Economist article “Indonesia’s economic growth is being held back by populism” highlights a number of features of Indonesia’s economic growth potential (as of January 2019). After reading the article, evaluate the quality of Indonesia’s policy environment. Specifically, consider which aspects of Indonesia’s policy and demographic setting are conducive to economic growth and which are inhibiting economic growth. Begin with a brief summary of the requirements for economic growth that are explained in Modules 20 and 22. When you identify a policy or a demographic trait that affects economic growth, explain why growth is expected to respond in the way you claim. As you read the article, you will notice that there are some facets of Indonesia’s policy environment that are not addressed in Modules 20 and 22. In particular, explain how Indonesia’s trade policy and minimum wage laws are affecting Indonesia’s growth rate.

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