The crises in Europe and the US loom large over nations around the globe and Indonesia is no exception. With no end in sight to the global crises, what are the challenges facing Indonesia in 2012, also known as the Year of the Dragon? Although we have dealt with a number of catastrophes in the past, we should not let our guard down. Attention should be on establishing a favorable investment climate, because no matter how attractive Indonesia can be, prospective investors are unlikely to invest in the face of legal uncertainty, problems with land acquisition and lack of guarantees. What are the obstacles to sustainable economic growth?