Country Reports

Indonesia Country Report

Content provided by
IHS Markit Logo

Risk Level

Very High


Executive Summary

President Joko “Jokowi” Widodo began his second and final five-year term in October 2019 following his victory in the April 2019 presidential election. His appointment of Prabowo Subianto, his sole rival in the presidential election, as defence minister means that the governing coalition now controls 74% of seats in parliament. This large majority should enable the government to pass contentious bills more rapidly. Government plans to attract greater foreign direct investment include the liberalisation and streamlining of permits as well as employment and tax regulations through “omnibus” laws on job creation and taxation. The government and parliament are prioritising the passage of the bill, including provisions on labour market liberalisation, despite opposition from unions. We expect the bill to be passed by the end of 2020. In light of the rapidly spreading coronavirus disease 2019 (COVID-19) virus pandemic, IHS Markit expects the Indonesian economy to contract 2.7% in 2020, the worst since the 1998 Asian financial crisis. The tough logistics of implementing stricter lockdown measures nationwide is expected to prolong the virus spread in Indonesia, hampering economic activity and confidence.The COVID-19 virus outbreak will probably reduce the short-term risk of large-scale protests. However, once the spread of the disease is stabilised, protest risks are likely to increase because of the expected large-scale job losses caused by the pandemic. There is a persistent risk of terrorist attacks by Islamic State-inspired cells and self-radicalised families. Such attacks would typically involve improvised explosive devices, small arms, or knives, targeting security officials, churches, and public spaces.
Last update: September 1, 2020

Operational Outlook

President Jokowi seeks to continue to reduce permits and regulations during his second and final term by giving greater power to the Investment Coordinating Board to issue permits for investors. The government‘s plan to reduce red tape and liberalise the labour market is set out in an “Omnibus” job creation bill that is likely to be passed into law by the end of 2020.

Last update: September 26, 2020



Following suicide attacks by Islamic State-affiliated militants in Surabaya in May 2018, Indonesia has further intensified efforts to counter terrorism and pre-emptively disrupt terrorist cells, including by revising its terrorism law. However, Islamic State-inspired cells are still active across the country; therefore, low-capability attacks continue to remain probable. Separately, a resurgent insurgency movement in the Papua region will probably lead to increased attacks against security forces, government construction projects, and Freeport Indonesia, a mining company.

Last update: September 30, 2020


Street crime remains an issue in major urban centres such as greater Jakarta, Medan, and Surabaya. The most common types of crime are theft from vehicles, residential break-ins, and pickpocketing. Organised criminal networks are pervasive, particularly in major cities, ranging from street gangs that extort money from small businesses to politically connected paramilitary organisations that are sometimes deployed to intimidate residents in land procurement for agri-business or construction projects. Members of these groups are referred to as "preman", a term that embraces anyone from a street gangster to a sophisticated criminal group with ties to the elite.

Last update: September 26, 2020

War Risks

China's territorial claims in the South China Sea overlap with the Exclusive Economic Zone of Indonesia's Natuna Islands: in July 2017, Indonesia renamed waters to the northeast of Natuna Islands as "North Natuna Sea", claiming sovereignty over the area. There has since been a risk of limited confrontation between both sides involving Chinese coastguard and fishing vessels and Indonesian naval and coastguard ships. In the Sulawesi Sea, Indonesia and Malaysia are engaged in a maritime boundary dispute over the Ambalat block. However, strong bilateral relations indicate that a deterioration of the situation involving armed forces is unlikely.

Last update: September 26, 2020

Social Stability


Protests and strikes are common in major Indonesian cities, particularly in Greater Jakarta. Protests can involve tens of thousands of people and are generally peaceful except in cases in which protesters attempt to break police lines and forcibly enter state buildings. These demonstrations are triggered by labour, religious, or environmental issues. Labour unions, Muslim organisations, and student groups are capable of mobilising a large number of people.

Last update: September 30, 2020

Health Risk


Vaccinations required to enter the country

Proof of vaccination against yellow fever is required if traveling from a country with risk of yellow fever transmission and over nine months of age.

Routine Vaccinations

Hepatitis A: A vaccine is available for anyone over one year of age. The vaccine may not be effective for certain people, e.g. those born before 1945 and who lived as a child in a developing country and/or have a past history of jaundice (icterus). These people can instead get a shot of immune globulin (IG) to boost their immunity against the disease.

Hepatitis B: A vaccine is available for children at least two months old.

Diphtheria-Tetanus-Polio: A booster shot should be administered if necessary (once every ten years).

Yellow Fever: A vaccine is available for children over the age of one year.

Other Vaccinations

Typhoid Fever: If your travels take you to regions with poor sanitary conditions (for children two years old and up).

Rabies: For prolonged stays in an isolated region (for children from when they can walk).

Japanese Encephalitis: For stays of longer than one month in a rural zone during the rainy season (for children over the age of one). The vaccine is administered in a local medical facility.

Malaria: Recommended preventive medication (with the exception of a trip to Bali) - mefloquine (sometimes marketed as Lariam) or doxycycline (sometimes marketed as Vibramycin).

For Children: All standard childhood immunizations should be up-to-date. In the case of a long stay, the BCG vaccine is recommended for children over one month and the MMR (measles-mumps-rubella) vaccine for children over nine months.

Last update: April 5, 2019

Natural Risks


As of early June 2015, Mount Sinabung volcano (Karo district, North Sumatra) has shown signs of major volcanic activity (clouds of burning ash, projections of rock, and lava flows), forcing authorities to evacuate those who live up to 13 km (8.1 mi) from the volcano.

Boating enthusiasts should be aware that acts of piracy regularly occur in Indonesian waters.

Last update: April 5, 2019



It should be noted that all means of transportation are affected by generally poor travel conditions. While the entirety of Indonesian airlines was on the EU’s blacklist at one time, in January 2009, the European Commission removed restrictions on Garuda, Mandala, Airfast, and Premiair airlines, citing significant progress in security conditions.

On June 9, 2015, Indonesia waived the entry visa requirement for French tourists.

Last update: April 5, 2019


Last update: April 5, 2019

Practical Information


Indonesia's climate is tropical with high levels of humidity and relatively stable temperatures.

There are two seasons: the wet monsoon season from November to March (abundant rain) and the dry monsoon season from April to October (dry winds). Temperatures are constant throughout the year along the coast and in low elevation zones (between 25°C and 30°C). Temperatures are lower in mountainous regions.

Useful Numbers

Country Code: +62
Police: 110 (or 911 in Bali)
Fire Dept.: 113
Ambulance: 118


Voltage: 127/230 V ~ 50 Hz


Last update: April 5, 2019