Indonesia Economy

Economy - overview:

Indonesia, a vast polyglot nation, has struggled to overcome the Asian financial crisis, and still grapples with high unemployment, a fragile banking sector, endemic corruption, inadequate infrastructure, a poor investment climate, and unequal resource distribution among regions. Indonesia became a net oil importer in 2004 because of declining production and lack of new exploration investment. 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 will dampen growth prospects in 2006. Keys to future growth remain internal reform, building up the confidence of international and domestic investors, and strong global economic growth. In late December 2004, the Indian

Ocean tsunami took 131,000 lives with another 37,000 missing, left some 570,000 displaced persons, and caused an estimated $4.5 billion in damages and losses. Terrorist incidents in 2005 have slowed tourist arrivals. Indonesia experienced several human cases of avian influenza in late 2005, sparking concerns of a pandemic.

GDP (purchasing power parity):

$865.6 billion (2005 est.)

GDP - real growth rate:

5.6% (2005 est.)

GDP - per capita:

$3,600 (2005 est.)

GDP (official exchange rate):

$270 billion (2005 est.)

GDP - composition by sector:

agriculture: 14.7%
industry: 30.6%
services: 4.6% (2005 est.)

Labor force - by occupation:

agriculture: 46.5%
industry: 11.8%
services: 41.7% (1999 est.)

Labor force:

94.2 million (2005 est.)

Unemployment rate:

10.9% (2005 est.)

Population below poverty line:

16.7% (2004)

Household income or consumption by percentage share:

lowest 10%: 3.6%
highest 10%: 28.5% (2002)

Distribution of family income - Gini index:

34.3 (2002)

Inflation rate (consumer prices):

10.4% (2005 est.)

Investment (gross fixed):

21.5% of GDP (2005 est.)

Budget:

revenues: $54.3 billion
expenditures: $57.7 billion; including capital expenditures of $NA (2005 est.)

Public debt:

52.6% of GDP (2005 est.)

Agriculture - products:

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

Industries:

petroleum and natural gas, textiles, apparel, footwear, mining, cement, chemical fertilizers, plywood, rubber, food, tourism
Industrial production growth rate:
2.1% (2005 est.)

Electricity - production:

120.2 billion kWh (2004)

Electricity - consumption:

3105.4 billion kWh (2004)

Electricity - exports:

0 kWh (2004)

Electricity - imports:

0 kWh (2004)

Oil - production:

1.061 million bbl/day (2005 est.)

Oil - consumption:

1.084 million bbl/day (2005 est.)

Oil - exports:

431,500 bbl/day (2004 est.)

Oil - imports:

345,700 bbl/day (2005 est.)

Oil - proved reserves:

4.6 billion bbl (2005 est.)

Natural gas - production:

83.4 billion cu m (2005 est.)

Natural gas - consumption:

22.5 billion cu m (2005 est.)

Natural gas - exports:

37.5 billion cu m (2005 est.)

Natural gas - imports:

0 cu m (2005 est.)

Natural gas - proved reserves:

62.557 trillion cu m (2005)

Current account balance:

$2.3 billion (2005 est.)

Exports:

$83.64 billion f.o.b. (2005 est.)

Exports - commodities:

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

Exports - partners:

Japan 22.3%, US 12.3%, Singapore 8.4%, South Korea 6.8%, China 6.4%, Malaysia 4.2% (2004)

Imports:

$62.02 billion f.o.b. (2005 est.)

Imports - commodities:

mmachinery and equipment, chemicals, fuels, foodstuffs

Imports - partners:

Singapore 13.1%, Japan 13.1%, China 8.8%, US 7%, Thailand 6%, Australia 4.8%, Saudi Arabia 4.2%, South Korea 4.2% (2004)

Reserves of foreign exchange and gold:

$34.7 billion (2005 est.)

Debt - external:

$131 billion (2005 est.)

Economic aid - donor:

$43 billion

note: Indonesia finished its IMF program in December 2003 but still receives bilateral aid through the Consultative Group on Indonesia (CGI), which pledged $2.8 billion in grants and loans for 2004 and again in 2005; nearly $5 billion in aid money pledged by a variety bilateral, multilateral, and non-governmental organization (NGO) donors following the 2004 tsunami; money is slated for use in relief and rebuilding efforts in Aceh (2005 est.)

Currency (code):

Indonesian rupiah (IDR)

Exchange rates:

Indonesian rupiahs per US dollar - 9,704.7 (2005), 8,938.9 (2004), 8,577.1 (2003), 9,311.2 (2002), 10,260.9 (2001)

Fiscal year:

calendar year; note - previously was 1 April - 31 March, but starting with 2001, has been changed to calendar year