This Update will examine Indonesia's business environment since reformasi began in 1998-what stayed the same, what changed and what could change. Economic recovery has been hesitant. Regime change and political reform have created uncertainties that have deepened reluctance to invest. A raft of government-instigated changes have left their imprint: decentralisation, privatisation, new company legislation, anti-corruption efforts, nationalisation of debt-ridden banks, and firms being forced into receivership.  More cautious lending practices by remaining financial institutions have imposed a credit crunch. Increased worker militancy and minimum wage rises have led some international firms to reconsider their presence in Indonesia. Changes in the business environment have caused a redefinition of private enterprise-government relations, inducing firms to re-examine their organisation and management.

It became very fashionable in developing economies for engineers to be cast in the role of managers with a particular expertise in administration – ask any MBA student at Harvard, Melbourne or Oxford this past decade. The reality is that in developing economies engineers have an even more important role to play in the development of infrastructure projects that impact directly on economic growth, employment and national security. Engineers are in Australia parlance ‘doers’ they are the people who roll up their sleeves and get on with the business of building the infrastructure that is critical to a developing economy. Without engineers and their allied professions development will remain a far off goal. Engineers are the architects of the future and nations such as Malaysia, Indonesia and the Philippines need to nurture and grow this profession as a matter of national priority. Australia has a clear and unequivocal responsibility to partner the growth of this skills base, as they have done since the inception of the Colombo Plan.

Study tour to include Beijing, Shanghai, Shenzen and Guangzhou Province over 9 days. Hosted by the International Department, Communist Party of China.