This central location, in combination with other factors such as its rich resources and demographic composition, make Indonesia an attractive location for foreign trade, investment and political and business affairs. Also of note is its proximity to China and India, the two largest and fastest growing economies in the world, and its position along major sea lanes which link the Indian Ocean to the South China Sea and the Pacific Ocean. Indonesia shares land borders with Malaysia, East Timor and Papua New Guinea and is closely neighboured by Australia, Singapore and the Philippines. For example, in early August 2018 a series of earthquakes and aftershocks hit the island of Lombok displacing an estimated 20,000 people.
It is also prone to natural disasters and home to the most volcanoes of any country in the world, with more than 75% of the population living within 100 km of a Holocene volcano (active within the last 11,700 years) (Smithsonian Institution 2015). The country is rich in natural resources including coal, minerals, gold, copper, nickel, oil, gas and fertile land (giving rise to agricultural products). Its 17,000 equatorial islands, of which only 6,000 are inhabited, experience a tropical climate characterised by high rainfall, humidity and temperatures.
Located in South-East Asia between the Indian and Pacific Oceans, Indonesia represents the worldâs largest archipelagic country.
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