Obstacles to Economic Growth: The Case of Indonesia Research Proposal

1.0  Title The working title of this research initially drafted as Obstacles to Economic Growth: The Case of Indonesia 2.0  Background of the Research Encyclopedia Britannica defines economic growth as the increase in the value of the goods and services produced by an economy which is conventionally measured by the real gross domestic product (real GDP). Growth is calculated in real terms for the purpose of netting out the effect of inflation on the price of the goods and services produced. Economic growth concerns long run as the increase in GDP is generally taken as an increase in the standard of living of the inhabitants. One of the several Asian nations that has seen positive economic growth is Indonesia. Indonesia has a market-based economy wherein the government plays a vital role. The Indonesian government controls more than 164 state-owned enterprises and administers basic goods prices such as fuel, rice and electricity. Indonesian economy is consists of agriculture, livestock forestry and fishery; mining and quarrying; manufacturing; electricity, gas and water supply; construction; trade, hotel and restaurant; transportation and communication; finance, real estate and business services; and others. On the other hand, the Indonesian economic growth remains modest from 2003 though the economy is performing better than expected. From the period of 2003 onwards, Indonesia experienced internal and external threat such as terrorism, separatism, the changing government and natural disasters. One of the factors that contribute to this condition is the dependence of the economy to private consumption and government expenditure as well as the slowness of non-oil manufacturing    3.0  Statement of the Problem The problem that will be investigated is the impediments to further economic growth of Indonesia and how to overcome such obstructions. How the recent waves of slow economic growth come about will be also addressed. In lieu with this, the study will answer the following research questions. 1)     How the Indonesian economy is performing recently? What are the major indicators of the positive economic growth for Indonesia? 2)     How the financial crisis in late 1990s, the tsunami and other crisis affect the current economic performance of Indonesia? 3)     What are the other factors that affect the economic growth of the country politically, socially and legally? 4)      How does the Indonesian government respond to the economic impediments? What strategies are implemented? 4.0  Objectives of the Study The main purpose of the study is to determine the obstacles to economic growth in Indonesia and to draw conclusions on strategies implemented in overcoming such blockages. The following specific objectives will be addressed: §         To evaluate the economic performance of Indonesia and identify the indicators of positive economic growth §         To analyse how the most recent past of economic crisis affect the present economic performance §         To distinguish the political, social and legal factors which serve as obstruction to further economic growth §         To explore how the Indonesian government is doing as a response to economic growth hindrances 5.0  Research Methodology The study will explore the problem in an interpretivist view, using exploratory research strategy because it aims to know more about the phenomenon of economic growth in Indonesia and the obstacles to acquiring higher growth. Exploratory research will enable the study to look at the problem in both descriptive and exploratory manner. It will look into the problem by exploring the views of different sets of respondents, as well as by exploring different literatures related with the study. In this study, primary and secondary research will be both incorporated. The reason for this is to be able to provide adequate discussion for the readers that will help them understand more about the issue and the different variables that involve with it. The primary data for the study will be represented by the survey results that will be acquired from the respondents. On the other hand, the literature reviews to be presented in the second chapter of the study will represent the secondary data of the study. Secondary sources of data will come from published articles from economic and commerce journals, theses and related studies. Case study method will be also employed in the study. A case study is a "strategy for doing research which involves an empirical investigation of a particular contemporary phenomenon within its real life context using multiple sources of evidence."