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Introduction - Indonesia:
Location - Indonesia:
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Economy - Indonesia:

Economy overview

Indonesia, a vast polyglot nation, has struggled to overcome the Asian financial crisis, and still grapples with persistent poverty and unemployment, inadequate infrastructure, endemic corruption, a fragile banking sector, a poor investment climate, and unequal resource distribution among regions. The country continues the slow work of rebuilding from the devastating December 2004 tsunami and from an earthquake in central Java in May 2006 that caused over $3 billion in damage and losses. Declining oil production and lack of new exploration investment turned Indonesia into a net oil importer in 2004. The cost of subsidizing domestic fuel placed increasing strain on the budget in 2005, and combined with indecisive monetary policy, contributed to a run on the currency in August, prompting the government to enact a 126% average fuel price hike in October. The resulting inflation and interest rate hikes dampened growth through mid-2006, while large increases in rice prices pushed millions more people under the national poverty line. Economic reformers introduced three policy packages in 2006 to improve the investment climate, infrastructure, and the financial sector, but translating them into reality has not been easy. Keys to future growth remain internal reform, building up the confidence of international and domestic investors, and strong global economic growth. 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

$948.3 billion (2006 est.)

Gdp official exchange rate

$264.7 billion (2006 est.)

Gdp real growth rate

5.5% (2006 est.)

Gdp per capita ppp

$3,900 (2006 est.)

Gdp composition by sector

agriculture: 13.1%
industry: 46%
services: 41% (2006 est.)

Labor force

108.2 million (2006 est.)

Labor force by occupation

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

Unemployment rate

12.5% (2006 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

34.8 (2004)

Inflation rate consumer prices

13.2% (2006 est.)

Investment gross fixed

20.3% of GDP (2006 est.)


revenues: $75.58 billion
expenditures: $79.45 billion; including capital expenditures of $NA (2006 est.)

Public debt

43.8% of GDP (2006 est.)

Agriculture products

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


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

Industrial production growth rate

2.6% (2006 est.)

Electricity production

123.4 billion kWh (2005 est.)

Electricity consumption

107.7 billion kWh (2005 est.)

Electricity exports

0 kWh (2005 est.)

Electricity imports

0 kWh (2005 est.)

Oil production

1.136 million bbl/day (2005 est.)

Oil consumption

1.168 million bbl/day (2005 est.)

Oil exports

474,000 bbl/day (2005 est.)

Oil imports

424,000 bbl/day (2005 est.)

Oil proved reserves

4.85 billion bbl (2006 est.)

Natural gas production

76 billion cu m (2005 est.)

Natural gas consumption

39.4 billion cu m (2005 est.)

Natural gas exports

36.29 billion cu m (2005 est.)

Natural gas imports

0 cu m (2005 est.)

Natural gas proved reserves

2.76 trillion cu m (31 December 2005 est.)

Current account balance

$1.636 billion (2006 est.)


$102.3 billion f.o.b. (2006 est.)

Exports commodities

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

Exports partners

Japan 19.3%, Singapore 11.8%, US 11.5%, South Korea 7.8%, China 7.7% (2006)


$77.73 billion f.o.b. (2006 est.)

Imports commodities

machinery and equipment, chemicals, fuels, foodstuffs

Imports partners

Singapore 30.3%, China 11.5%, Japan 9%, Malaysia 5%, Thailand 4.1%, Australia 4% (2006)

Reserves of foreign exchange and gold

$43.04 billion (2006 est.)

Debt external

$130.4 billion (2006 est.)

Economic aid recipient

ODA, $67 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 YUDHYONO ended the Consultative Group on Indonesia forum in January 2007

Currency code

Indonesian rupiah (IDR)

Exchange rates

Indonesian rupiah per US dollar - 9,159.3 (2006), 9,704.7 (2005), 8,938.9 (2004), 8,577.1 (2003), 9,311.2 (2002)

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This page was last updated on 16 September, 2007
Source: CIA >>>

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