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Overview by Globlatrade.net:Due to the unfavorable international economic situation, the Indonesian growth rate has evidently slowed down in 2009 (4.5%). However, it has shown more resistance than its neighboring countries due to the low amount of exports on its economy and the importance of private consumption since the country has a significant domestic market. The country adopted a stimulus plan which lowered taxes, increased subsidies and commitments for supplemental expenditures, which have allowed to soften the effects of the crisis. The growth, estimated at 6% of the GDP, has accelerated in 2010, under the effects of the revival of investments and the continuous growth of private consumption.
Despite the good results from the main economic indicators, structural reforms are required. A large program of development of infrastructures has been issued. The country suffers from sub-investment, the authorities are strongly promoting public-private partnerships. The government has also re-confirmed its priority to the fight against corruption. In addition, the protection of the environment is a major challenge in Indonesia.
The unemployment level remains high and many workers are in a precarious condition. A large part of the population lives below the poverty line and the gap between the very rich and the very poor does not diminish.
| Main Indicators | 2009 | 2010 | 2011 | 2012 | 2013 |
| GDP (billions USD) | 538.46 | 706.74 | 822.63 | 908.13 | 997.94e |
| GDP (Constant Prices, Annual % Change) | 4.6 | 6.1 | 6.2 | 6.5 | 6.7 |
| GDP per Capita (USD) | 2,327e | 3,015e | 3,465 | 3,776e | 4,096 |
| General Government Balance (in % of GDP) | -1.7 | -0.5 | -1.5e | -1.4e | -1.3e |
| Inflation Rate (%) | 4.8 | 5.1e | 7.1e | 5.9e | 5.3e |
| Unemployment Rate (% of the Labor Force) | 7.9 | 7.1e | 6.7 | 6.5 | 6.4 |
| Current Account (billions USD) | 10.58 | 9.48e | 2.84 | -2.27 | - |
| Current Account (in % of GDP) | 2.0e | 1.4e | 0.4 | -0.3 | - |
Source: IMF - World Economic Outlook Database
Note: (e) Estimated Data
The agricultural sector contributes to nearly 14% of the country’s GDP and employs nearly 40% of the active population. Indonesia is one of the largest rubber producers in the world. Other major crops are rice, sugar cane, coffee, tea, tobacco, palm oil, coconuts and spices. Indonesia is the only Asian country to be an member of the OPEC to which it assures 5% of its production. However, it is still a net importer of oil. The country has great exploitable timber lands and mainly exports timber.
Industries contribute to around half of the GDP. The industrial sector includes manufacturing of textiles, cement, chemical fertilizers, electronic products, rubber tires, clothing and shoes (most of these are for the American market). Wood processing is also a major activity.
The tertiary sector (financial institutions, transportation and communications) contributes to around 40% of the GDP. The banking sector is well-developed. The Islamic bank Syariah has expanded rapidly during these recent years. Tourism is a major source of revenue, however, the sector has suffered from terrorist threats and natural catastrophes.
| Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
| Employment By Sector (in % of Total Employment) | 41.2 | 18.8 | 39.9 |
| Value Added (in % of GDP) | 15.8 | 49.1 | 35.2 |
| Value Added (Annual % Change) | 4.1 | 3.5 | 2.1 |
Source: World Bank - Last Available Data.
| Monetary Indicators | 2005 | 2006 | 2007 | 2008 | 2009 |
| Indonesian Rupiah (IDR) - Average Annual Exchange Rate For 1 USD | 9,704.74 | 9,159.32 | 9,141.00 | 9,698.96 | 10,389.94 |
Source: World Bank
Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation
See the Country Risk Analysis Provided By Ducroire.
Indonesia is a member of the WTO and ASEAN (Association of South-East Asian nations). Indonesia is open to foreign trade, which represented more than 40% of the GDP in 2009.
The trade balance of the country is structurally positive. However, this balance was degraded under the effect of the global recession and the fall of the price in raw materials; but, it still remained on a surplus due to a small contraction of exports in relation to imports. The revival of exports as well as imports in 2010 did not change this positive trend.
The three main export partners of Indonesia are Japan, the United States and Southeast Asia. The commodities that are mainly exported are mineral fuels and hydrocarbons, electrical equipment, animal and vegetable fats & oils, nuclear reactors & boilers, and rubber. Its main export partners are Southeast Asia, Japan and China. The commodities that are mainly imported are mineral fuels & oils, nuclear reactors & boilers, iron & steel, electric & electronic equipment, and organic chemicals.
| Foreign Trade Indicators | 2005 | 2006 | 2007 | 2008 | 2009 |
| Imports of Goods (million USD) | 75,533 | 80,346 | 92,777 | 126,950 | 91,749 |
| Exports of Goods (million USD) | 86,996 | 103,527 | 118,013 | 139,606 | 119,481 |
| Imports of Services (million USD) | 21,836 | 21,175 | 24,075 | 27,994 | 27,626 |
| Exports of Services (million USD) | 12,571 | 11,093 | 12,074 | 14,731 | 13,242 |
| Imports of Goods and Services (Annual % Change) | 17.8 | 8.6 | 9.1 | 10.0 | -15.0 |
| Exports of Goods and Services (Annual % Change) | 16.6 | 9.4 | 8.5 | 9.5 | -9.7 |
| Imports of Goods and Services (in % of GDP) | 29.9 | 25.6 | 25.4 | 28.7 | 21.3 |
| Exports of Goods and Services (in % of GDP) | 34.1 | 31.0 | 29.4 | 29.8 | 24.1 |
| Trade Balance (million USD) | 17,534 | 29,660 | 32,754 | 22,916 | 35,133 |
| Trade Balance (Including Service) (million USD) | 8,411 | 19,786 | 20,913 | 9,917 | - |
| Foreign Trade (in % of GDP) | 64.0 | 56.7 | 54.8 | 58.5 | 45.5 |
Source: WTO - World Trade Organization ; World Bank
| Main Customers (% of Exports) |
2009 |
| Japan | 15.9% |
| China | 9.9% |
| United States | 9.3% |
| Singapore | 8.8% |
| South Korea | 7.0% |
| India | 6.4% |
| Malaysia | 5.8% |
| Australia | 2.8% |
| Thailand | 2.8% |
| Netherlands | 2.5% |
| Philippines | 2.1% |
| Germany | 2.0% |
| Hong Kong | 1.8% |
| Spain | 1.6% |
| Italy | 1.4% |
| United Kingdom | 1.3% |
| Vietnam | 1.2% |
| United Arab Emirates | 1.1% |
| Belgium | 0.9% |
| Saudi Arabia | 0.8% |
| Other partnersClose extended list | 49.0% |
| Main Suppliers (% of Imports) |
2009 |
| Singapore | 16.1% |
| China | 14.5% |
| Japan | 10.2% |
| United States | 7.3% |
| Malaysia | 5.9% |
| South Korea | 4.9% |
| Thailand | 4.8% |
| Australia | 3.5% |
| Saudi Arabia | 3.2% |
| Germany | 2.5% |
| India | 2.3% |
| Hong Kong | 1.8% |
| France | 1.7% |
| Kuwait | 1.5% |
| Brazil | 1.1% |
| Canada | 1.0% |
| United Kingdom | 0.9% |
| Azerbaijan | 0.8% |
| Italy | 0.7% |
| Sweden | 0.7% |
| Other partnersClose extended list | 46.1% |
Source: Comtrade
Source: Comtrade
Jakarta Stock Exchange
Source: Worldwide Press Freedom Index 2009, Reporters Without Borders
Map of freedom 2010
Source: Freedom House
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