This report argues that the frequency of terrorist incidents in Indonesia has reached a plateau, but the growing influence of extremism will prove to be difficult to manage. However, separatism, especially in West Papua, could prove to be a major security hurdle in the longer term, especially if backed by international support.

This paper argues that there has been some progress in introducing economic reforms, but the effect has been stifled by the implementation of protectionist measures. More reforms will be needed if Indonesia is to boost economic growth and attract much-needed investment, especially in infrastructure.

This report argues that while the Indonesian government is taking a number of steps to address the issue of terrorism, there remain significant challenges in the fight against radicalism.

As Indonesia’s economy continues to grow and its population swells, the relationship with Australia is becoming more and more asymmetric.

To facilitate further tourism industry growth, the Indonesian government is hoping to replicate the success of Bali as a tourist destination in a number of other locations spread across Indonesia.