Indonesia Economy

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 been declined steadily because of increasingly robust GDP growth and sound fiscal stewardship. The government has introduced significant reforms in the financial sector including tax and customs reforms, the use 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. 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 relieved inflation but also brought a host of new problems: a rout in the stock market, a difficult environment for bond issuance, lower prices for Indonesia's commodities exports, and prospects for lower growth overall.
GDP (purchasing power parity): $932.1 billion (2008 est.)
GDP (official exchange rate): $496.8 billion (2008 est.)
GDP - real growth rate: 5.9% (2008 est.)
GDP - per capita (PPP): $3,900 (2008 est.)
GDP - composition by sector: agriculture: 13.5%
industry: 45.6%
services: 40.8% (2008 est.)
Labor force: 112 million (2008 est.)
Labor force - by occupation: agriculture: 42.1%
industry: 18.6%
services: 39.3% (2006 est.)
Unemployment rate: 8.2% (2008 est.)
Population below poverty line: 17.8% (2006)
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): 10.5% (2008 est.)
Investment (gross fixed): 25.2% of GDP (2008 est.)
Budget: revenues: $90.17 billion
expenditures: $96.87 billion (2008 est.)
Public debt: 30.1% of GDP (2008 est.)
Agriculture - products:
Industries: petroleum and natural gas, textiles, apparel, footwear, mining, cement, chemical fertilizers, plywood, rubber, food, tourism
Industrial production growth rate:
Electricity - production: 125.7 billion kWh (2006 est.)
Electricity - consumption: 110.7 billion kWh (2006 est.)
Electricity - exports: 0 kWh (2007 est.)
Electricity - imports: 0 kWh (2007 est.)
Oil - production: 1.044 million bbl/day (2007 est.)
Oil - consumption: 1.219 million bbl/day (2006 est.)
Oil - exports: 470,000 bbl/day (2006 est.)
Oil - imports: 500,000 bbl/day (2006 est.)
Oil - proved reserves: 4.37 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: $2.485 billion (2008 est.)
Exports: $141 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: $114.3 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)
Reserves of foreign exchange and gold: $51.74 billion (31 December 2008 est.)
Debt - external: $143.5 billion (31 December 2008 est.)
Stock of direct foreign investment - at home: $63.46 billion (2008 est.)
Stock of direct foreign investment - abroad: $4.277 billion (2008 est.)
Market value of publicly traded shares: $211.7 billion (31 December 2007)
Currency (code): Indonesian rupiah (IDR)
Exchange rates: Indonesian rupiah (IDR) per US dollar - 9,558.1 (2008 est.), 9,056 (2007 est.), 9,159.3 (2006), 9,704.7 (2005), 8,938.9 (2004)
Fiscal year: calendar year