Policy & Regulation

Political risks rising across Southeast Asia

Increasing political volatility in countries such as Indonesia and Thailand will raise the risk profile for investors, analysts say Increasing political volatility in countries such as Indonesia and Thailand will raise the risk profile for investors, analysts say.
By Damon Evans 9 March 2017 0 24754
A tanker off the Indonesian coast. The country’s upstream sector needs better cooperation, analysts say. (SKKMigas)

Political risk for foreign investors is set to increase across Southeast Asia this year, particularly in Indonesia.

A rising sense of economic nationalism is the main risk for investors in the country – the region’s biggest hydrocarbons producer – Adam Schwarz of strategic and investment advisory firm Asia Group Advisors told Interfax Natural Gas Daily.

"Parts of the government have an exaggerated view of Indonesia’s ability to exploit and monetise its underground mineral resources without foreign capital and technology," he added.

The growth of identity-based politics...