Economic Policy in Indonesia and Prospects of Russian-Indonesian Trade and Economic Cooperation

Abstract

The article is devoted to the analysis of the current economic situation in Indonesia and the prospects for RussianIndonesian economic cooperation. The author covers the economic development of Indonesia since 1998 Asian economic crisis, the domestic economic agenda and the policy of new President D. Widodo, as well as the history and potential for the further development of trade and economic relations between Russia and Indonesia. The relevance of the research is determined by the increasing role of Indonesia in international politics in the 21st century. Indonesia is the fourth largest country in terms of population, after China, India and the United States. Its economy is 16th in the world and first in ASEAN. It is a member of G20. It is expected that Indonesia will enter the top five largest world economies by 2030. For Russia, the development of relations with the rapidly developing Asian countries is an important element in of its foreign policy strategy of diversifying trading partners and entering the promising markets of developing countries. The main purpose of the article is to analyze current challenges faced by the Indonesian government in implementing new economic policy, to identify promising areas of bilateral cooperation of Russia and Indonesia in the context of anti-Russian sanctions. The article points out the potential of these relations and the mutual benefits for the Russian and Indonesian economy. The author used mainly the historical method, which allows tracing the history of the development of the economic situation in Indonesia and the evolution of Russian-Indonesian relations. While analyzing Indonesia’s domestic economic policy, the key research method has been a comparative analysis, which contributed to summarizing the achievements of Indonesian politics. In conclusion, the author identifies promising areas for further development of Russian-Indonesian trade and economic relations taken into account modern Indonesian economic policy’s need agenda.