Vita A.D. Busyra, Jakarta – Despite being one of Asia's most active economies, drawing investors from around the world into a developing consumer market, Indonesia continues to struggle with political and social tensions that threaten the country's social and economic stability, a report says.

Indonesia is experiencing a few bumps in the road, according to Political Monitor, a political risk research and advisory firm. Although the country has demonstrated strong economic growth in recent years, its youth unemployment, government corruption, increasing ethnic and religious tensions, along with the emergence of a political power vacuum have put the nation in a challenging situation.

Indonesia's economy rose by 5.3 percent last year, but the upturn was considered the nation's slowest in the past four years.

Based on Asia Political Risk Index's political monitor, Indonesia's risk measurement relating to political and social turmoil scored 55 – a figure considered to be on the high side when compared to its neighbors Malaysia, Singapore, Australia, Taiwan, Thailand and China. The relative risk score chart is divided into five levels: low to moderate, high, very high and extreme. Political Monitor partner Damian Karmelich determined the impact of these tensions was not merely seen in the macro environment, but the underlying political and social matters that posed damaging risks in the upcoming decade.

"For many countries the macro environment looks very positive. Growing economies with emerging middle classes present exciting new opportunities for investors," he said. "However, the best opportunities have significant risks. For some high levels of youth unemployment, entrenched government corruption, growing inequality, exposure to volatile food prices or rising levels of external debt threaten political and social stability over coming years. Many Asian countries share these underlying social and political characteristics."