Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 17,508 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an elected legislature and president. The nation's capital city is Jakarta. The country shares land borders with Papua New Guinea, East Timor, and Malaysia. Other neighboring countries include Singapore, Philippines, Australia, and the Indian territory of the Andaman and Nicobar Islands. Indonesia is a founding member of ASEAN and a member of the G-20 major economies. The Indonesian economy is the world's seventeenth largest economy by nominal GDP.

 

Having a GDP size of nearly US$ 707 billion in 2010, Indonesia is the largest economy in Southeast Asia. Much less affected by the global financial crisis than its neighboring countries, Indonesia’s economy grew by 4.5% in 2009, 6.1% in 2010 and is expected to reach 6.4% this year, providing a case for Indonesia’s inclusion in the so-called BRIC economies. Future economic expansion is expected to include more inclusive growth as nominal per-capita GDP is expected to quadruple by 2020, according to a Standard Chartered report. A large part of Indonesia's economic success is a result of prudent fiscal stewardship that focused on reducing the debt burden. Indonesia’s debt to GDP ratio has steadily declined from 83% in 2001 to 26% by the end of 2010; the lowest among ASEAN countries, aside from Singapore which has no government debt. As a result, in April 2011, Standard & Poor’s had improved Indonesia’s credit rating to BB+, the last of the three major credit rating agencies to upgrade sovereign debt to one notch below investment grade. The rating reflected Indonesia’s resilience to the global financial crisis, improving government and external credit-metrics, and an ability to manage domestic political challenges to the reform agenda. These achievements have increased the frequency with which Indonesia is being compared to middle-income developing nations like Brazil, India and Mexico. Economically strong, politically stable, reform minded, Indonesia is an emerging global powerhouse in Asia.

 

Underlying Indonesia’s vibrant economy is political stability. A decade ago, many analysts envisaged that certain break-away provinces would bring about Indonesia’s “balkanization”. In 2001, Indonesia embarked on an ambitious and challenging decentralization effort. While it has been challenging journey, today Indonesia is one of the most decentralized countries in the world with substantial funds and authorities devolved to the regions. Significantly, Indonesia is the only country in Southeast Asia that has bucked the trend of a democracy in trouble. Democracy is blossoming in a country that was once ruled with an iron hand for 30 years. Indonesia has gracefully transformed from an authoritarian state to a regional role model. Recently, and for a third time in a row, Indonesia completed another round of peaceful and successful legislative and presidential elections. The election confirmed the people’s confidence in President Susilo Bambang Yudhoyono’s leadership, who won more than 60% votes from 176 million registered voters. President Yudhoyono’s party, Partai Demokrat, controls over 25% of plenary votes, providing him with a stronger mandate to lead Indonesia in the next five years.

Source: Wikipedia, Indonesia Investment Coordinating Board.


General Information
Official Name Republic of Indonesia
Capital Jakarta
Main Cities Jakarta, Surabaya, Bandung, Medan, Semarang, Yogyakarta
Languages Bahasa Indonesia
Government Presidential Republic
Independence Day From Netherland, 17 August 1945
Area 1,919,440 km2
Population 240 million (2014 census)
Currency Rupiah
Climate Tropical
Measures Metric System
Time Zone Western Zone GMT +7, Central Zone GMT +8, Eastern Zone GMT +9
Main Airports Soekarno-Hatta (Jakarta), Ngurah Rai (Bali), Hang Nadim (Batam), Polonia (Medan), Sultan Iskandar Muda (Banda Aceh), Juanda (Surabaya)
Main Harbors Tanjung Priok (Jakarta), Tanjung Perak (Surabaya), Tanjung Mas (Semarang)
Source: National sources,2014
Economic Indicators
  2009 2010 2011 2012 2013
Key Economic Indicator  
GDP Nominal, Current Prices (US$bn) 538.6 709 846 878 870
Real GDP Growth (%) 4.6 6.2 6.5 6.3 5.8
Current Account Balance (% of GDP) 2 0.72 0.2 -2.78 -3.3
Inflation, Consumer Prices(%) 5.04 5.1 5.35 4 6.4
Foreign Direct Investment (FDI) Inflows (US$, million) 4,877.4 13,770.6 19,241.3 19,852.6 20,105
General Government Balance (% of GDP) -1.76 -1.24 -0.6 -1.65 -2.15
Economic Growth (% real change)
Private Consumption 4.9 4.7 4.7 5.3 5.3
Government Consumption 15.8 -0.2 3.7 2.4 4.4
Gross fixed Investment 3.3 8.5 8.3 9.7 4.7
Export of goods & Services -9.9 15.3 13.7 2.1 5.3
Import of goods & Services -15.1 17.4 13.4 6.7 1.2
Structure of Economy (% of GDP)
Agriculture 15.3 15.34 14.72 13.9 13.34
Industry 47.68 47.05 47.15 47.6 47.65
Services 37.02 37.62 38.13 38.5 39.01
Economic Policy
Budget Balance (% of GDP) -1.6 -0.6 -1.2 -1.5 -2.3
Public Debt (% of GDP) 26 26 23 23 23
Money Market Interest rate (%) 7.2 6.0 5.6 4.0 4.8
M2 growth (% change) 13 15 16 15 13
Exchange Rate LCU to USD 10,390 9,090 8,770 9,387 10,461
Balance of Payments (US$, million)
Current Account Balance -622 -3,306 -7,045 -34,694 -38,674
Trade Balance 19,681 22,176 26,061 -1,659 -4,077
Exports(Goods) 116,510 157,779 203,496 190,032 182,551
Import(Goods) 96,829 135,603 177,435 191,691 186,628
Service Balance -9,741 -9,323 -10,632 -10,330 -11,428
Income Balance -15,140 -20,789 -26,675 -26,799 -27,226
Transfer Balance 4,578 4,630 4,201 4,094 4,057
Net Direct Investment Flows 2,628 11,106 11,528 14,309 14,768
Net Portfolio investment flows 5,224 7,799 -3,993 -3,278 -2,188
Net Debt Flows 14,554 21,358 22,892 30,171 18,971
Other Capital Flows (*negative is flight) -18,557 -15,318 -18,186 -14,145 -16,490
Change in International reserves 14,478 30,092 13,926 2,640 -13,390
External Position (US$, million)
Total Foreign Debt 179,395 200,267 224,838 254,899 266,030
Short term Debt 24,050 33,047 38,173 44,764 43,854
Total Debt Service due, incl. short-term debt 45,386 53,392 64,792 74,778 77,354
Total Foreign exchange reserves 63,563 92,908 106,539 108,837 96,364
International Investment Position -213,724 -291,062 -318,678 -361,678 -375,152
Total Assets 116,249 149,981 166,852 187,076 194,246
Total Liabilities 329,973 441,043 485,126 548,754 576,216
Population and Income
Population (million) 234.3 237.6 241 244.5 248
GDP per capita at PPP (US$) 4,071.5 4,315.8 4,620 4,925 5,214
Unemployment Rate(% of total labor force) 7.87 7.14 6.56 6.14 6.25
Source: IMF, International Financial Statistics 2014
Trade with the World
US$ Million 2009 2010 2011 2012 2013
Export (fob) 116,510 157,779 203,496 190,032 182,551
Import (cif) 96,829 135,603 177,435 191,691 186,628
Trade Volume 213,339 293,382 380,931 381,723 369,179
Trade Balance 19,681 22,176 26,061 -1,659 -4,077
World Trade (US$ Bn) 24,949 28,143 35,397 36,355 36,774
Share 0.85% 1.04% 1.07% 1.05% 1.0%
Source: IMF, International Financial Statistics 2014
Trade with D-8 Countries
US$ million 2009 2010 2011 2012 2013
Export (fob) 7,727.31 13,978 17,376 17,062 16,816
Import (cif) 7,959.89 10,791 14,095 16,637 18,244
Trade Volume 15,687.2 24,769 31,471 33,699 35,060
Trade Balance -232.58 3,187 3,281 425 -1,428
D-8 Intra Trade (US$ Mn) 66,947 101,139 129,493 148,191 133,064
Share 23.43% 24.5% 24.3% 22.7% 26.3%
Source: IMF, International Financial Statistics 2014
Indonesia Trade By 10 Main Commodities
Export by 10 Principal Commodities, (million US$)
No. Commodity 2009 2010 2011 2012 2013
1. Mineral fuels, oils, distillation products, etc. 32,952 46,765 68,921 63,385 57,413
2. Animal/Vegetable fats and oils, cleavage products, etc 12,219 16,312 21,655 21.300 19,225
3. Electrical, electronic equipment 8,148 10,373 11,145 10,765 10.438
4. Rubber and articles thereof 4,912 9,373 14,352 10,475 9,394
5. Ores, slag and ash 5,805 8,148 7,342 5,802 6,544
6. Machinery, nuclear reactors, boilers, etc 4,709 4,986 5,749 6,103 5,968
7. Vehicles other than railway, tramway 1,819 2,900 3,328 4,857 4,567
8. Articles of apparel, accessories, not knit or crochet 3,133 3,611 4,149 3,744 3,902
9. Footwear, Gaiters and the like, parts thereof 1,736 2,502 3,302 3,524 3,860
10. Miscellaneous chemical products 1,215 1,874 3,665 3,846 3,816
Import by 10 Principal commodities, (million US$)
No. Commodity 2009 2010 2011 2012 2013
1. Mineral fuels, oils, distillation products, etc 19,090 27,531 40,840 42,764 45,544
2. Machinery, nuclear reactors, boilers, etc 14,724 20,019 24,729 28,429 27,290
3. Electrical, electronic equipment 11,087 15,633 18,245 18,904 18,201
4. Iron and Steel 4,356 6,371 8,580 10,138 9,553
5. Vehicles other than railway, tramway 3,886 5,737 7,603 9,757 7,915
5. Plastics and articles thereof 3,216 4,817 6,687 6,991 7,642
6. Organic chemicals 3,940 5,326 6,635 6,883 7,011
8. Articles of iron or steel 2,784 3,451 3,573 4,889 4,747
9. Cereals 1,506 2,159 4,753 3,714 3,621
10. Residues, wastes of food industry, animal fodder 1,678 1,871 2,219 2,798 3,042
Source: WTO, International Trade Centre 2014
Export and Import by Main Destination Country
Export by Main Destination Country (% of total)
2009 2010 2011 2012 2013
Japan 15.9 16.3 16.6 15.9 14.8
China 9.9 9.9 11.3 11.4 12.4
United States of America 9.3 9.1 8.1 7.8 8.6
Singapore 8.8 8.7 9.1 9.0 9.1
India 6.4 6.3 6.6 6.6 7.1
Others 49.7 49.7 48.3 49.3 48
Source: WTO, International Trade Centre 2014
Import by Main Destination Country (% of total)
2009 2010 2011 2012 2013
Singapore 16.1 14.9 14.6 13.6 13.7
China 14.5 15.1 14.8 15.3 16
Japan 10.2 12.5 11 11.9 10.3
Malaysia 5.9 6.4 5.9 6.4 7.1
Republic of Korea 14.5 15.1 14.8 15.3 16
Others 38.8 36 38.9 37.5 36.9
Source: WTO, International Trade Centre 2014
Foreign Direct Investment (Overview, selected years)
US$(Mn.) FDI Flows FDI Stocks
2009 2010 2011 2012 2013 2009 2010 2011 2012 2013
Inward 4,877 4,877 4,877 4,877 4,8777 108,796 160,735 184,804 211,900 230,344
Outward 2,249 2,664 7,713 5,422 3,676 3,913 6,672 6,204 12,394 16,070
Source: UNCTAD, 2014
Agriculture: Food Commodities
US$ Mn 2009 2010 2011 2012 2013
Export 13,075 17,410 22,944 22,569 20,616
Import 4,160 6,210 10,101 8,792 9,269
Trade Volume 17,235 23,620 33,045 31,361 29,885
Trade Balance 8,915 11,200 12,843 13,777 11,347
Indonesia's Total Trade 213,339 293,382 380,931 381,723 369,179
Share to Indonesia's Total Trade 8.1% 8.05% 8.7% 8.2% 8.1%
Source: WTO,FAO 2014
Energy
Oil/Petroleum (Thousanad barrels per day)
Petroleum(Thousand Barrels per Day) 2009 2010 2011 2012 2013
Total Oil Production 994 1,003 952 918 882
Consumption 1,334 1,449 1,572 1,597 1,623
Refinery 1,085 1,139 1,116 1,041 1,072
Proved Reserved(Billion barrels) 4.3 4.2 3.7 3.7 3.7
Natural Gas
Natural Gas(Billion Cubic Feet/Day) 2009 2010 2011 2012 2013
Total Production 7.0 7.9 7.3 6.9 6.8
Consumption 3.6 3.9 3.6 3.5 3.7
Proved Reserved(Trillion cubic meters,TCM) 3.1 3.0 2.9 2.9 2.9
Others Energy
Energy Year
2009 2010 2011 2012 2013
Biofuels production (Thousand barrels daily) 9 14 22 28 32
Electricity Generation (Terawatt-hours) 156.8 169.8 183.4 200.3 216.2
Renewable Energy (Installed Capacity) Geothermal (mega-watts) 1,189 1,193 1,209 1,339 1,339
Solar (maga-watts) - - - - -
Wind (mega-watts) - - - - -
Source: BP statistics, EIA, 2014