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ix FIGURES 1.1 Key Obstacles in Indonesia’s Business Environment, 2003 4 3.1 GDP in Indonesia, South Korea, Malaysia and Thailand, 1997–2002 40 3.2 Private Consumption in Indonesia, South Korea, Malaysia and Thailand, 1997–2002 41 3.3 Investment in Indonesia, South Korea, Malaysia and Thailand, 1997–2002 42 3.4 Growth of GDP by Expenditure, March 2000 – September 2003 44 3.5 Growth of Motorcycle Sales and Inflation, September 2000 – December 2003 46 3.6 Growth of Domestic and Foreign Investment, 2000–03 47 3.7 CPI Inflation and Rp/$ Spot Rate, January 2002 – January 2004 48 5.1 FDI Approvals, Indonesia, 1990–2002 75 6.1 Trends in Aggregate Investment,1997–2003 94 6.2 Trends in FDI Approvals, 1985–2003 95 6.3 Distribution of FDI Approvals by Major Sector, 1990–2003 96 6.4 FDI Approvals by Type, 1996–2003 99 6.5 Trend in Formal and Informal Sector Employment, 1997–2002 101 13.1 Size of Unofficial Payments by Company Size 209 13.2 Extent of Unofficial Payments by Amount of Time Spent by Senior Managers in Dealing with Government Officials 210 13.3 Effect of Unofficial Payments on Import Processing Times 216 16.1 Real Minimum Wages in Major Industrial Centres and All Indonesia, 1992–2002 239 16.2 Minimum Wages in Dollars Converted at the Nominal Average Annual Exchange Rate, Major Industrial Centres and All Indonesia, 1992–2002 240 x FIGURES ...

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