Indonesia

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Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

After the recession which followed the 1998 Asian crisis, Indonesia re-capitalized its banking sector, improved the monitoring of its capital markets and took steps to stimulate growth and investments. The GDP growth rate in 2006 and 2007 was relatively high because of these mesures. Due to an unfavourable international economic speculation incident, Indonesian growth markedly slowed down in 2009. Nevertheless, it has shown itself to be more resistant than the neighboring countries because of the low burden, on the economy, of exports and the importance of private consumption.
The level of unemployment remains high and a certain amount of workers are in an unstable situation. A part of the population lives under the poverty threshold and the gap between the rich and poor is not narrowing.
Due to the economic crisis, a relaunch plan to lower taxes, increase subsidies and spending commitments has been passed at the beginning of the year.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	364.35	432.06	511.77e	468.39	503.82e
GDP (constant prices, annual % change)	5.5	6.3	6.1	2.5	3.5e
GDP per capita (USD)	1,641	1,921e	2,246	2,030e	2,155e
Inflation rate (%)	13.1	6.0	9.8e	6.1	5.9e
Unemployment rate (% of the labor force)	-	-	8.2	-	-
Current Account (billions USD)	10.86	10.49	0.52	-1.89e	-3.69e
Current Account (in % of GDP)	3.0	2.4	0.1	-0.4	-0.7

Source: IMF - World Economic Outlook Database ; CIA - The world factbook

Note: (e) Estimated data

Main sectors of industry

The agricultural sector contributes nearly 14% to 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, sugarcane, coffee, tea, tobacco, palm oil, coconuts and spices. Indonesia is the only Asian country to be an OPEC member and supplies 5% of OPEC's production. However it is still a net oil importer. The country has great timberlands and is a major exporter of timber.

Industries contribute around half of the GDP. The industrial sector includes manufacturing of textiles, cement, chemical fertilizers, electronics, rubber tyres, clothes and shoes (most of these are for the U.S. market). Wood processing is also a major activity.

The tertiary sector (financial institutions, transport and communication) contributes around 40% of the GDP. The banking sector is well developed. The Islamic bank, Siaryah (link in Bahasa Indonesia), has grown rapidly during recent years. Tourism is a major source of revenue, however, the sector has suffered because of the Bali & Jakarta attacks as well as the 2004 tsunami.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	41.2	18.8	40.0
Value added (in % of GDP)	13.8	46.7	39.4
Value added (annual % change)	3.5	4.7	8.9

- last available data.

Monetary indicators	2003	2004	2005	2006	2007
Indonesian Rupiah (IDR) - Average annual exchange rate for 1 USD	8,577.13	8,938.85	9,704.74	9,159.32	9,141.00

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 53.4/100
Position:: mostly unfree
World Rank:: 131 out of 179
Regional Rank:: 27 out of 42

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

Indonesia is a member of the WTO and ASEAN (Association of South-East Asian nations). The share of foreign trade in the country’s GDP was more than 70% in 2006. Indonesia’s top three export partners 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 top three import 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. In 2007 and 2008, Indonesia showed a trade surplus. Despite of the crisis, exports have done well in 2009, but the trade surplus has had a downward trend because of the rapid increase of imports.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	39,546	50,615	69,462	73,868	85,296
Exports of goods (millions USD)	64,109	70,767	86,995	103,528	118,014
Imports of services (millions USD)	17,400	20,856	22,049	21,406	24,276
Exports of services (millions USD)	5,293	12,045	12,926	11,518	12,478
Imports of goods and services (annual % change)	1.6	26.7	17.8	8.6	8.9
Exports of goods and services (annual % change)	5.9	13.5	16.6	9.4	8.0
Imports of goods and services (in % of GDP)	23.1	27.5	29.9	25.6	25.3
Exports of goods and services (in % of GDP)	30.5	32.2	34.1	31.0	29.4
Trade Balance (millions USD)	24,563	20,152	17,534	29,660	32,718
Trade Balance (including service) (millions USD)	12,456	11,341	8,411	19,772	20,921
Foreign trade (in % of GDP)	53.6	59.8	64.0	56.7	54.7

Source: World Bank

Main products

Main exports (% of exports)	2003
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	25.7%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	10.0%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	5.2%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	4.9%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	4.6%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	4.3%
Rubber and articles thereofRubber and articles thereof	3.5%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	3.2%
Ores, slag and ashOres, slag and ash	3.2%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	2.6%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	2.4%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	2.2%
Organic chemicalsOrganic chemicals	2.0%
Plastics and articles thereofPlastics and articles thereof	1.9%
Man-made filamentsMan-made filaments	1.6%
Man-made staple fibresMan-made staple fibres	1.4%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	1.3%
CottonCotton	1.2%
Copper and articles thereofCopper and articles thereof	1.1%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	1.0%
Cocoa and cocoa preparationsCocoa and cocoa preparations	1.0%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.9%
Articles of iron or steelArticles of iron or steel	0.7%
Iron and steelIron and steel	0.7%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.6%
Aluminium and articles thereofAluminium and articles thereof	0.6%
Miscellaneous chemical productsMiscellaneous chemical products	0.6%
Glass and glasswareGlass and glassware	0.6%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	0.4%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.4%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.4%
Ceramic productsCeramic products	0.4%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.3%
Nickel and articles thereofNickel and articles thereof	0.3%
FertilizersFertilizers	0.3%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.3%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.3%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.3%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.2%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.2%
Ships, boats and floating structuresShips, boats and floating structures	0.2%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.2%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.2%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.2%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.2%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.2%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.2%
Pharmaceutical productsPharmaceutical products	0.2%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.2%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.1%
Manufactures of straw, of esparto or of other...Manufactures of straw, of esparto or of other plaiting materials; basketware and wickerwork	0.1%
Sugars and sugar confectionerySugars and sugar confectionery	0.1%
See more products	49.6%

Main imports (% of imports)	2003
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	23.6%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	13.2%
Organic chemicalsOrganic chemicals	6.6%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	5.8%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	5.4%
Iron and steelIron and steel	4.0%
Plastics and articles thereofPlastics and articles thereof	3.5%
CerealsCereals	3.2%
CottonCotton	2.5%
Articles of iron or steelArticles of iron or steel	2.1%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	2.0%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	1.9%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	1.4%
Ships, boats and floating structuresShips, boats and floating structures	1.4%
Miscellaneous chemical productsMiscellaneous chemical products	1.3%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	1.2%
Sugars and sugar confectionerySugars and sugar confectionery	1.1%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	1.1%
Rubber and articles thereofRubber and articles thereof	1.1%
Aluminium and articles thereofAluminium and articles thereof	1.0%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.0%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	0.9%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.9%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.7%
FertilizersFertilizers	0.7%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.7%
Man-made staple fibresMan-made staple fibres	0.7%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.6%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.6%
Man-made filamentsMan-made filaments	0.6%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.5%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.4%
Pharmaceutical productsPharmaceutical products	0.4%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.4%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.4%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.3%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.3%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.3%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.3%
Ceramic productsCeramic products	0.3%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.3%
Copper and articles thereofCopper and articles thereof	0.3%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.3%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.3%
Live animalsLive animals	0.3%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.2%
Zinc and articles thereofZinc and articles thereof	0.2%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.2%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
Ores, slag and ashOres, slag and ash	0.2%
Glass and glasswareGlass and glassware	0.2%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.2%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.2%
Knitted or crocheted fabricsKnitted or crocheted fabrics	0.2%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.1%
Meat and edible meat offalMeat and edible meat offal	0.1%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.1%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.1%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.1%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.1%
See more products	45.4%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of general economic information

Ministries: Ministry of Finance
Ministry of Industry
Ministry of Commerce
Statistical Office: Statistical Office
Central Bank: Central Bank of Indonesia
Stock Exchange: Jakarta Stock Exchange
Search Engines: Indo
Google
Economic portals: Economic, commercial and sectoral information about Indonesia and Asia in general

Political outline

Executive Power: The President is both the head of the State and the head of the government. The President enjoys the executive powers and appoints the cabinet. Both the President and the Vice-President are elected through direct universal suffrage for five-year terms. The President is the commander-in-chief of the armed forces and responsible for domestic governance and policy-making and foreign affairs.
Legislative Power: The legislature in Indonesia is bicameral. The parliament called People's Consultative Assembly (MPR) consists of: DPR (House of People’s Representatives – lower house) having 550 seats with its members elected directly to serve five-year terms, and DPD (House of Regional Representatives- upper house) having 128 seats with each province electing 4 members on a non-party basis. The President cannot dissolve the parliament but the President has the power to veto bills, and in turn a supermajority of legislators may act to override the veto.The people of Indonesia have limited political rights.
Main political parties: Indonesia has a multi-party system where a single party does not often have a chance of gaining power alone. Thus parties need to work together to form coalition governments. The major political parties in Indonesia are:
- PD (Democratic Party) - advocates ‘Pancasila’ – the 5 principles the Constitution is based on;
- Golkar (Functional Groups Party) – initially an alliance of NGOs opposing communism, now advocates democratic and liberal values;
- PBB (Crescent Moon and Star Party) – a moderate Islamist party;
- PDI-P (Indonesian Party for the Democratic Fight) – based on ‘Pancasila’ ideology, a split-away group from the PD led by ex-President Megawati Sukarnoputri.
Current political leaders: President: Susilo Bambang YUDHOYONO (since October 2004) - PD
Vice-President: Muhammad Yusuf KALLA (since October 2004) - Golkar
Next election dates: Presidential: July 2009

Indicator of freedom of the press

World Rank:: 111/173
Evolution:: 11 places down compared to 2007

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

Indicator of political freedom

Ranking:: Free
Political freedom:: 2/7
Civil liberties:: 3/7

Map of freedom 2007
Source: Freedom House

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