Indonesia comprises over 17,000 islands and with an estimated population of around 237 million people, it is the world's fourth most populous nation. Its exports, which totaled $136.8 billion in 2008, are commodity driven and largely comprise oil, natural gas, crude palm oil, coal, appliances, textiles, and rubber.

This administration had emphasised the need to boost economic growth and investment, create a more pro business environment, create jobs and stamp out corruption, which historically raised producers' costs and deterred investment. The administration has been largely successful in achieving many of these objectives which have resulted in a more stable currency, stronger current account surpluses and strong GDP growth, reaching 6.3% in 2007, (close to the fastest pace in 10 years) and 6.1% in 2008. Much of the growth was largely driven by record commodity exports.

Similiar to the rest of the world, the country has experienced a slowing economy in 2009 due to lower global demand for its exports and lower domestic business activity. However, the country is now better placed to cope with economic turmoil than it was in the past. The nation's foreign exchange reserves tripled in the past decade, national debt levels have been cut dramatically from as high as 88% of GDP in 2000, lower oil prices have lowered fuel subsidy costs and lower domestic demand has resulted in falling inflation. These factors have allowed the government more flexability in responding to the economic slowdown and have allowed it to cut the policy lending rate to 7.75%, down from as high as 12.75% in December 2005.

The country held parlimentary elections in early April 2009 and the presidential election will be held in July 2009. The ruling Democratic Party increased its seats in parliment almost threefold and its leader, President Yudhoyono, is widely expected to be re-elected in July. This increase in support allows the government greater ability to push through stronger structural reforms than were previously possible.