This report systematically analyzes Indonesia’s development achievements and challenges from 2017 to the first half of 2018，from the aspects of macro-economy，business and industry，social humanities and international relations. Overall，Indonesia’s economy has made achievement in continued growth，improved infrastructure，stable employment and income growth，and enhanced government economic functions. However，it also faces major challenges such as weakening currencies，widening current account deficits，increasing difficulties in attracting investments and downward pressure on the economy. In the industrial and commercial sector，the “Making Indonesia 4.0” plan，the revitalization of oil and gas industry，and vigorously improve logistics efficiency have come into the spotlight. In the field of social humanities，the major achievements are the deepening of anti-corruption，the increase of education investment，and the alleviation of poverty. But there are still some main challenges，such as low education quality，the lack of long-term mechanism for poverty alleviation，increasing resistance to anti-corruption and increasingly politicizing tendency of Islamic power. In the international economic and trade relations，trade frictions with Europe and the United States have increased，and its economic and trade relations with China have become closer，as is seen when Indonesian government’s commitment to ease the crisis of palm oil export was helped by China. The mainland China and Hong Kong together have become the second largest source of FDI，and Indonesia is also actively expanding its markets in South and Central Asia and Africa. In the international political area，Indonesia’s efforts to be elected as non-permanent members of the Security Council for the fourth time，to maintain close military cooperation with the United States and maritime cooperation with India，could be seen as the strategic actions of Joko’s pursuit of becoming a regional and marine power. The Sino-Indonesian relations on the contrary，continue to strengthen driven by pragmatism.
