Economy - overviewIndonesia, a vast polyglot nation, has been undergoing significant economic reforms under President YUDHOYONO. Indonesia's debt-to-GDP ratio has been declining steadily, its foreign exchange reserves are at an all-time high of over $50 billion, and its stock market has been one of the three best performers in the world in 2006 and 2007, as global investors sought out higher returns in emerging markets. The government has introduced significant reforms in the financial sector, including tax and customs reforms, the introduction of Treasury bills, and improved capital market supervision. Indonesia's new 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. Indonesia has been slow to privatize over 100 state-owned enterprises, several of which have monopolies in key sectors. The non-bank financial sector, including pension funds and insurance, remains weak. Capital markets are underdeveloped. The high global price of oil in 2007 increased the cost of domestic fuel and electricity subsidies, and are contributing to concerns about higher food prices. Located on the Pacific "Ring of Fire" Indonesia remains vulnerable to volcanic and tectonic disasters. Significant progress has been made in rebuilding Aceh after the devastating December 2004 tsunami, and the province now shows more economic activity than before the disaster. Unfortunately, Indonesia suffered new disasters in 2006 and early 2007 including: a major earthquake near Yogyakarta, an industrial accident in Sidoarjo, East Java that created a "mud volcano," a tsunami in South Java, and major flooding in Jakarta, all of which caused additional damages in the billions of dollars. Donors are assisting Indonesia with its disaster mitigation and early warning efforts. GDP (purchasing power parity)$845.6 billion (2007 est.) GDP (official exchange rate)$410.3 billion (2007 est.) GDP - real growth rate6.1% (2007 est.) GDP - per capita (PPP)$3,400 (2007 est.) GDP - composition by sectoragriculture: 12.4% Population below poverty line17.8% (2006) Household income or consumption by percentage sharelowest 10%: 3.6% Inflation rate (consumer prices)6.3% (2007 est.) Investment (gross fixed)23.6% of GDP (2007 est.) Labor force108 million (2007 est.) Labor force - by occupationagriculture: 43.3% Unemployment rate9.7% (2007 est.) Distribution of family income - Gini index36.3 (2005) Budgetrevenues: $88.21 billion Public debt35.4% of GDP (2007 est.) Industriespetroleum and natural gas, textiles, apparel, footwear, mining, cement, chemical fertilizers, plywood, rubber, food, tourism Industrial production growth rate6.1% (2007 est.) Electricity - production125.9 billion kWh (2006 est.) Electricity - consumption108 billion kWh (2006 est.) Electricity - exports0 kWh (2006 est.) Electricity - imports0 kWh (2006 est.) Oil - production1.07 million bbl/day (2006 est.) Oil - consumption1.1 million bbl/day (2006 est.) Oil - imports500,000 bbl/day (2006 est.) Oil - exports470,000 bbl/day (2006 est.) Oil - proved reserves4.301 billion bbl (1 January 2006 est.) Natural gas - production74 billion cu m (2006 est.) Natural gas - consumption37.5 billion cu m (2006 est.) Natural gas - exports29.6 billion cu m (2006 est.) Natural gas - imports0 cu m (2006) Natural gas - proved reserves2.63 trillion cu m (1 January 2007 est.) Current Account Balance$10.21 billion (2007 est.) Agriculture - productsrice, cassava (tapioca), peanuts, rubber, cocoa, coffee, palm oil, copra; poultry, beef, pork, eggs Exports$118.4 billion f.o.b. (2007 est.) Exports - commoditiesoil and gas, electrical appliances, plywood, textiles, rubber Exports - partnersJapan 19.4%, Singapore 11.8%, US 11.5%, China 7.7%, South Korea 6.4%, Taiwan 4.2% (2006) Imports$86.24 billion f.o.b. (2007 est.) Imports - commoditiesmachinery and equipment, chemicals, fuels, foodstuffs Imports - partnersSingapore 29.6%, China 11.2%, Japan 8.8%, South Korea 5.3%, Malaysia 4.8% (2006) Reserves of foreign exchange and gold$53.27 billion (31 December 2007 est.) Debt - external$137.2 billion (30 June 2007) Stock of direct foreign investment - at home$21.91 billion (2006 est.) Stock of direct foreign investment - abroad$9.225 billion (2006 est.) Market value of publicly traded shares$138.9 billion (2006) Economic aid - recipientODA, $2.524 billion (2006 est.) Currency (code)Indonesian rupiah (IDR) Exchange ratesIndonesian rupiah per US dollar - 9,056 (2007 est.), 9,159.3 (2006), 9,704.7 (2005), 8,938.9 (2004), 8,577.1 (2003) Fiscal yearcalendar year |
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Source: CIA World Factbook | |