Indonesia is looking forward to growth this year, but this depends on whether the government can reduce corruption and achieve political and economic stability, writes Peter Janssen in Jakarta.

Since the Asian crisis, Indonesia’s banking system has been shaken up and streamlined. Despite this, scandals still occur. Tim Johnston assesses progress so far, and discusses what the priorities must be for the recovering industry.

Some companies are already reaping the rewards of a bold decision to invest in Indonesia’s banking sector, but one investor is asking how long they will be able to operate before the big banks decide to move in.

When Indonesia graduated from the IMF programme at the end of last year, it brought to an end a traumatic six-year relationship, but since then the country has emerged stronger and more fiscally disciplined.

Criticism is mounting of the IBRA’s restructuring efforts. But any
assessment must factor in the volatile environment in which the agency
had to operate, says Brian Caplen.