Indonesia Economy Profile 2009

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. 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 (purchasing power parity)

$914.6 billion (2008 est.)
$862 billion (2007 est.)
$810.9 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$511.8 billion (2008 est.)

GDP - real growth rate

6.1% (2008 est.)
6.3% (2007 est.)
5.5% (2006 est.)

GDP - per capita (PPP)

$3,900 (2008 est.)
$3,700 (2007 est.)
$3,500 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 14.4%
industry: 48.1%
services: 37.5% (2008 est.)

Population below poverty line

17.8% (2006)

Labor force

112 million (2008 est.)

Labor force - by occupation

agriculture: 42.1%
industry: 18.6%
services: 39.3% (2006 est.)

Unemployment rate

8.4% (2008 est.)
9.1% (2007 est.)

Household income or consumption by percentage share

lowest 10%: 3%
highest 10%: 32.3% (2006)

Distribution of family income - Gini index

39.4 (2005)
37 (2001)

Investment (gross fixed)

23.6% of GDP (2008)

Budget

revenues: $92.62 billion
expenditures: $98.88 billion (2008 est.)

Public debt

28.6% of GDP (2008 est.)
56.2% of GDP (2004 est.)

Inflation rate (consumer prices)

9.9% (2008 est.)
6.3% (2007 est.)

Central bank discount rate

10.83% (31 December 2008)
8% (31 December 2007)

Commercial bank prime lending rate

6.41% (31 December 2008)
7.21% (31 December 2007)

Stock of money

$41.71 billion (31 December 2008)
$47.78 billion (31 December 2007)

Stock of quasi money

$131.1 billion (31 December 2008)
$127 billion (31 December 2007)

Stock of domestic credit

$166.2 billion (31 December 2008)
$170.2 billion (31 December 2007)

Industries

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

Industrial production growth rate

3.7% (2008 est.)

Electricity - production

142.4 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 86.9%
hydro: 10.5%
nuclear: 0%
other: 2.6% (2001)

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 - imports

672,000 bbl/day (2008 est.)

Oil - exports

85,000 bbl/day (2008 est.)

Oil - proved reserves

3.8 billion bbl (1 January 2008 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.)

Current Account Balance

$604 million (2008 est.)
$10.49 billion (2007 est.)

Agriculture - products

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

Exports

$139.3 billion (2008 est.)
$118 billion (2007 est.)

Exports - commodities

oil and gas, electrical appliances, plywood, textiles, rubber

Exports - partners

Japan 20.2%, US 9.5%, Singapore 9.4%, China 8.5%, South Korea 6.7%, India 5.2%, Malaysia 4.7% (2008)

Imports

$116 billion (2008 est.)
$85.26 billion (2007 est.)

Imports - commodities

machinery and equipment, chemicals, fuels, foodstuffs

Imports - partners

Singapore 16.9%, China 11.8%, Japan 11.7%, Malaysia 6.9%, US 6.1%, South Korea 5.4%, Thailand 4.9% (2008)

Reserves of foreign exchange and gold

$51.64 billion (31 December 2008 est.)
$56.92 billion (31 December 2007 est.)

Debt - external

$155.1 billion (31 December 2008 est.)
$141.2 billion (31 December 2007)

Stock of direct foreign investment - at home

$67.3 billion (31 December 2008 est.)
$58.96 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$6.656 billion (31 December 2008 est.)
$9.225 billion (2006 est.)

Market value of publicly traded shares

$98.76 billion (31 December 2008)
$211.7 billion (31 December 2007)
$138.9 billion (31 December 2006)

Economic aid - recipient

ODA, $2.524 billion (2006 est.)
note: Indonesia ended 2006 with $67 billion in official foreign debt (about 25% of GDP), with Japan ($25 billion), the World Bank ($8.5 billion) and the Asian Development Bank ($8.4 billion) as the largest creditors; about $6 billion in grant assistance was pledged to rebuild Aceh after the December 2004 tsunami; President YUDHOYONO disbanded the Consultative Group on Indonesia (CGI) donor forum in January 2007

Currency (code)

IDR

Currency (code)

Indonesian rupiah (IDR)

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

calendar year