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The Economy of Indonesia

Indonesian Economy

Indonesia's map

Economy - overview: Indonesia, a vast polyglot nation, has made significant economic advances under the administration of President YUDHOYONO, but faces challenges stemming from the global financial crisis and world economic downturn. Indonesia's debt-to-GDP ratio in recent years has declined steadily because of increasingly robust GDP growth and sound fiscal stewardship. The government has introduced significant reforms in the financial sector, including in the areas of tax and customs, the use of Treasury bills, and capital market supervision. Indonesia's investment law, passed in March 2007, seeks to address some of the concerns of foreign and domestic investors. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. The non-bank financial sector, including pension funds and insurance, remains weak, and despite efforts to broaden and deepen capital markets, they remain underdeveloped. Economic difficulties in early 2008 centered on high global food and oil prices and their impact on Indonesia's poor and on the budget. The onset of the global financial crisis dampened inflationary pressures, but increased risk aversion for emerging market assets resulted in large losses in the stock market, significant depreciation of the rupiah, and a difficult environment for bond issuance. As global demand has slowed and prices for Indonesia's commodity exports have fallen, Indonesia faces the prospect of growth significantly below the 6-plus percent recorded in 2007 and 2008.

GDP:

GDP - real growth rate: 6.1% (2008 est.) 6.4% (2007 est.) 5.5% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 13.5% industry: 45.6% services: 40.8% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 3.6% highest 10%: 28.5% (2002)

Distribution of family income - Gini index: 39.4 (2005)

Inflation rate (consumer prices):

Labor force: 112 million (2008 est.)

Labor force - by occupation: agriculture: 42.1% industry: 18.6% services: 39.3% (2005 est.)

Unemployment rate: 8.4% (2008 est.)

Budget: revenues: $101.1 billion expenditures: $101.6 billion (2008 est.)

Industries: petroleum and natural gas, textiles, apparel, footwear, mining, cement, chemical fertilizers, plywood, rubber, food, tourism

Industrial production growth rate: 2.8% (2008 est.)

Electricity - production: 142.4 billion kWh (2007 est.)

Electricity - production by source:

Electricity - consumption: 121.2 billion kWh (2007 est.)

Electricity - exports: 0 kWh (2007 est.)

Electricity - imports: 0 kWh (2007 est.)

Oil - production: 977,000 bbl/day (2008 est.)

Oil - consumption: 1.564 million bbl/day (2008 est.)

Oil - exports: 85,000 bbl/day (2008 est.)

Oil - imports: 672,000 bbl/day (2008 est.)

Oil - proved reserves: 3.99 billion bbl (1 January 2007 est.)

Natural gas - production: 56 billion cu m (2007 est.)

Natural gas - consumption: 23.4 billion cu m (2007 est.)

Natural gas - exports: 32.6 billion cu m (2007 est.)

Natural gas - imports: 0 cu m (2007 est.)

Natural gas - proved reserves: 2.659 trillion cu m (1 January 2008 est.)

Agriculture - products: rice, cassava (tapioca), peanuts, rubber, cocoa, coffee, palm oil, copra; poultry, beef, pork, eggs

Exports: $136.8 billion f.o.b. (2008 est.)

Exports - commodities: oil and gas, electrical appliances, plywood, textiles, rubber

Exports - partners: Japan 20.7%, US 10.2%, Singapore 9.2%, China 8.5%, South Korea 6.6%, Malaysia 4.5%, India 4.3% (2007)

Imports: $128.8 billion f.o.b. (2008 est.)

Imports - commodities: machinery and equipment, chemicals, fuels, foodstuffs

Imports - partners: Singapore 13.2%, China 11.5%, Japan 8.8%, Malaysia 8.6%, US 6.4%, Thailand 5.8%, Saudi Arabia 4.5%, South Korea 4.3%, Australia 4% (2007)

Debt - external: $151.7 billion (30 September 2008)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: Indonesian rupiah (IDR) per US dollar - 9,698.9 (2008), 9,143 (2007), 9,159.3 (2006), 9,704.7 (2005), 8,938.9 (2004)

Fiscal year: