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Asia and Oceania
Indonesia |
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Last reviewed: 27 October 2009 |
Country information
ECONOMY
GDP: US$ 500 billion; (market exchange rate) 2008GDP per head: US$; 2,240 (market exchange rate 2008) US$; 3,712 (purchasing power parity) (2007 Economist estimates)
Annual Growth: 4.5% (2009: Indonesian government estimate)
Inflation: 5.0% 2009 estimate Major Industries: oil, gas, mining (coal, minerals, metals), forestry, fishery, palm oil, rubber, agriculture (especially cocoa, coffee and rice) (2007, Central Statistical Office)
Major Trading Partners: Japan, Singapore, US, South Korea, China (2007, Central Statistical Office)
Exchange rate: £1 = approximately 15,413 Rupiah (October 2009) US$1=9,678 (2008 average)
Indonesia's economy has stabilised in recent years. Economic growth has been above 5% in the past five years. Real GDP grew by 6.1% in 2008 (6.3% in 2007), the fastest rate since the Asian financial crisis of 1997-98. Structural reforms have led to some progress, but poor infrastructure, a complex regulatory environment and corruption hamper investment and growth. The budget deficit was reduced to 0.5% of GDP in 2008, however due to global economic slowdown that will lead to a lower tax revenue, but also government commitment to infuse fiscal stimulus IDR 73 trillion (USD6.4bn), the budget deficit in 2009 is expected to increase to 2.5% out of 3% ceiling budget deficit allowable under the constitution. In January 2009 the fuel price came down to the April 2008 level, after it was raised by 28% in May 2008.
Compared with other countries in the region, Indonesia is not particularly export focussed. Some 29% of GDP is derived from exports, mainly in the hydrocarbon, mining and agricultural sectors, and imports in manufactured goods. The government has revised down their inflation forecast to 5.0% for this year (down from 11.5% in 2008) due to a decrease in world oil prices. Although most of the economic indicators show positive results, unemployment (8% of working age population) and poverty rates (14%) remain a problem.
