Indonesia Economy Profile 2008

Economy - overview

Indonesia, 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 rate

6.1% (2007 est.)

GDP - per capita (PPP)

$3,400 (2007 est.)

GDP - composition by sector

agriculture: 12.4%
industry: 47.7%
services: 39.9% (2007 est.)

Population below poverty line

17.8% (2006)

Household income or consumption by percentage share

lowest 10%: 3.6%
highest 10%: 28.5% (2002)

Inflation rate (consumer prices)

6.3% (2007 est.)

Investment (gross fixed)

23.6% of GDP (2007 est.)

Labor force

108 million (2007 est.)

Labor force - by occupation

agriculture: 43.3%
industry: 18%
services: 38.7% (2004 est.)

Unemployment rate

9.7% (2007 est.)

Distribution of family income - Gini index

36.3 (2005)

Budget

revenues: $88.21 billion
expenditures: $95.41 billion (2007 est.)

Public debt

35.4% of GDP (2007 est.)

Industries

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

Industrial production growth rate

6.1% (2007 est.)

Electricity - production

125.9 billion kWh (2006 est.)

Electricity - consumption

108 billion kWh (2006 est.)

Electricity - exports

0 kWh (2006 est.)

Electricity - imports

0 kWh (2006 est.)

Oil - production

1.07 million bbl/day (2006 est.)

Oil - consumption

1.1 million bbl/day (2006 est.)

Oil - imports

500,000 bbl/day (2006 est.)

Oil - exports

470,000 bbl/day (2006 est.)

Oil - proved reserves

4.301 billion bbl (1 January 2006 est.)

Natural gas - production

74 billion cu m (2006 est.)

Natural gas - consumption

37.5 billion cu m (2006 est.)

Natural gas - exports

29.6 billion cu m (2006 est.)

Natural gas - imports

0 cu m (2006)

Natural gas - proved reserves

2.63 trillion cu m (1 January 2007 est.)

Current Account Balance

$10.21 billion (2007 est.)

Agriculture - products

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

Exports

$118.4 billion f.o.b. (2007 est.)

Exports - commodities

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

Exports - partners

Japan 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 - commodities

machinery and equipment, chemicals, fuels, foodstuffs

Imports - partners

Singapore 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 - 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)

Indonesian rupiah (IDR)

Exchange rates

Indonesian 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 year

calendar year