Despite the global economic downturn of recent years, Indonesia's
economy continues to grow steadily, and it has now achieved the status
of a middle-income country. The process of democratization and
decentralization continues, and this has helped contribute to the
peaceful resolution of long-simmering regional conflicts, for example in
Aceh, Maluku, North Maluku and Papua. Indonesia is now the largest
economy in Southeast Asia.
Steady economic growth has led to a
gradual reduction in overall poverty in the country, which has fallen
from 17 per cent in 2004 to 12.5 per cent in 2011. But despite these
achievements, those who are poor are now worse off than they were before
the devastating 1997 financial crisis that swept the region, and the
gap between rich and poor is widening.
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