The ISET Policy Institute research team conducted a comprehensive study on the trade potential between Georgia and Indonesia. The study comprehensively analyzes Georgia's economic landscape, exploring growth trends, major industries, and fiscal policies. It evaluates dynamic factors influencing economic resilience and adaptability, assesses the business environment, identifies sectors for Indonesian companies, reviews existing cooperation, explores growth opportunities, and conducts a risk assessment.

The so-called “Economic Freedom Act” (EFA), which has been a matter of public discussion in recent weeks, refers to two pieces of legislation: (i) a Constitutional amendment from 2010, which requires a referendum for introducing new taxes or increasing the tax rate, and (ii) the Law on Economic Freedom (2011), in force since 2013, setting a number of additional restrictions to government fiscal policy (Table 1).

Economic reforms announced in the run-up to the parliamentary elections in October 2016 raised concerns about whether Georgia was departing from its path of prudent fiscal policy. A reform of the corporate profit tax and increased infrastructure investment were driving expectations of a 6% of GDP budget deficit in 2017, endangering Georgia’s macroeconomic stability and its reputation with investors.