1. Home
  2. Global Insights
  3. By Country
  4. Indonesia
  5. Government

Indonesia: Government

Key Figures

Chief of State:
President Joko Widodo
Head of Government:
President Joko Widodo

Overview

Government Name:
Republic of Indonesia
Constitution:
Adopted: 1949; Was abrogated by the Federal Constitution of 1949 and the Provisional Constitution of 1950, but restored in 1959. Covers basic topics including the role, function, and structure of government; basic rights of citizens; and nationwide cultural standards.
Government Type:
Presidential Republic
Republic of Indonesia Flag
Coat of Arms of Republic of Indonesia

Index of Economic Freedom

Grades each country on a scale of 0 to 100, based on ten freedoms, with 100 representing the greatest amount of economic autonomy from government intervention. Source: Heritage Foundation (2023)

Country Risk Rating

A4
A somewhat shaky political and economic outlook and a relatively volatile business environment can affect corporate payment behavior. Corporate default probability is still acceptable on average. Source: Coface (2022)

Government Branches

Main Powers Election Process Election Cycle 1
Executive

The president heads the United Indonesia Cabinet and is also head of state, commander-in-chief, and responsible for domestic governance, policy-making and foreign affairs.

The president is elected by absolute majority vote.

5 years
Judicial

The Mahkamah Agung (supreme court) is the highest level of the judicial branch. The constitutional court rules on constitutional and political matters, while the judicial commission oversees the judges.

Supreme court judges are nominated by a judicial commission and appointed by the president with the concurrence of parliament. The constitutional court has nominations from the president, supreme court, and parliament. Its judges are appointed by the president.

Life appointment
Legislative

The Majelis Permusyawaratan Rakyat and the Dewan Perwakilan Rakya serve as the two legislative bodies for Indonesia.

Dewan Perwakilan Daerah are elected by single non-transferable vote. The Dewan Perwakilan Rakya are elected by open-list proportional representation in multi-member constituencies.

5 years

Regional Trade Blocs
APEC
ASEAN

International Organization Participation [2]

Environmental Agreements [3]

Tax Information [2]

Tax Authority:
The Directorate General of Taxes
Tax Name:
VAT

Sources:

  1. ElectionGuide http://www.electionguide.org/
  2. EY, http://www.ey.com
  3. CIA World Factbook, https://www.cia.gov/the-world-factbook/
  4. U.S. Bilateral Relations Fact Sheets http://www.state.gov/r/pa/ei/bgn/