Economy of Indonesia - Facts and Views

July 2011

Indonesia to become one trillion dollar economy.The per capital income crossed $3000 in Indonesia. It crossed $3000 in China also.

In 2010, the GDP of Indonesia was $870 million (15% increase over 2010)  Jakarta Post 9.5.2011

http://www.economywatch.com/world_economy/indonesia/

Fast facts
http://www.economywatch.com/world-country/indonesia.html

Economic Forecast

http://www.economywatch.com/world_economy/indonesia/economic-forecast.html

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November 2008 Update

Reshared Knol Content

Source Knol  Economy of Indonesia  by Vladimir

Indonesia Economy

The economy in Indonesia is based mostly on natural resources extraction and agricultural production. The government tried to encourage the progress of industrialization by sponsoring it financially. Bank Indonesia (NI) stated that the country’s economy grew slower in the first part of 2008 than it did at the end of 2007. The economy grew 6.1% from January to March 2008. This growth was under the government’s estimation of 6.2 or 6.3 per cent.

In 1997 there was an economical and political crisis which caused the fall of Suharto the Indonesian president at the time. The cities and towns recovered faster from this crisis than the rural areas did. In the rural regions, millions of small farmers and fishers are deeply affected by poverty. Statistics Indonesia reports the fact that poverty in Indonesia is declining, as the number of poor went down from 17.75 per cent to 16.58 per cent. But poverty is still a big problem in Indonesia, as most of the poor fight to survive on less than $2 per day.

It is estimated that 18 per cent of the population lives with less than $1. The eastern islands are the poorest regions in Indonesia. Most of the people living in rural communities struggle with poverty. Many people live in villages on the coast or on dry land, where farming is difficult because the environment is not suitable for agricultural activities. Transport and communication between one area to another is difficult, as roads are in very poor condition.

 Agricultural activity accounts for 14 per cent of Indonesia’s Gross Domestic Product. The most important crops cultivated in Indonesia are: rubber, sugarcane, tea and coffee, rice, spices, palm oil and coconuts. It is one of the most important exporters of rubber and timber on the globe. Mining is also an important sector, as Indonesia has a variety of mineral resources which have been exploited in the last thirty years: gold, nickel, steel, coal. Some of the most important mine sites are Grasberg Mine, Batu Hijau Mine and Cempaka Mine. Oil is the most important energy source.

Indonesia is the only country in Asia to be a member of the Organization of the Petroleum Exporting Countries (OPEC). It supplies five per cent of the organization’s production. Indonesia is also a member of other international associations such as the World Trading Organization ( WTO ) and the Association of Southeast Asian Nations ( ASEAN ).

 Further reading on the economy of Indonesia in EconomyWatch.com:
Overview of Indonesia's Economy
Forbes Companies in Indonesia
Economic Structure of Indonesia

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