Overview Indonesia

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In the review period, Indonesia has experienced a significant decline in the quality of democracy. After years of state harassment against activists and journalists, the parliament has now enacted a controversial new criminal code that is viewed by critics as a clampdown on civil liberties and political freedoms. Additionally, the separation of powers has been further eroded and elections for key local positions were postponed.

Economically, Indonesia managed to recover from the worst impacts of the pandemic, with predicted robust growth rates in the following years. The decision to avoid stringent, prolonged, and strictly enforced lockdowns proved effective in preventing more severe economic repercussions for both companies and the informal sector.

Despite these positive economic trends, Indonesia grapples with several structural weaknesses. These include an underperforming education system, inadequate environmental protection policies, and widespread corruption.

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