Economy Indonesia

Economy Indonesia, a vast polyglot nation, has weathered the global financial crisis relatively smoothly because of its heavy reliance on domestic consumption as the driver of economic growth. Although the economy slowed significantly from the 6%-plus growth rate recorded in 2007 and 2008, expanding at 4% in the first half of 2009, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth during the crisis. The government used fiscal stimulus measures and monetary policy to counter the effects of the crisis and offered cash transfers to poor families; in addition, campaign spending in advance of legislative and presidential elections in April and July helped buoy consumption. The government made economic advances under the first administration of President YUDHOYONO, introducing significant reforms in the financial sector, including tax and customs reforms, the use of Treasury bills, and capital market development and supervision. Indonesia's debt-to-GDP ratio in recent years has declined steadily because of increasingly robust GDP growth and sound fiscal stewardship. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. YUDHOYONO's reelection, with respected economist BOEDIONO as his vice president, suggests broad continuity of economic policy, although the start of their term has been marred by corruption scandals. The government in 2010 faces the ongoing challenge of improving Indonesia's insufficient infrastructure to remove impediments to economic growth, while addressing climate change mitigation and adaptation needs, particularly with regard to conserving Indonesia's forests and peatlands. GDP (purchasing power parity): GDP (purchasing power parity): $968.5 billion (2009 est.) $927.7 billion (2008 est.) $874.4 billion (2007 est.) note: data are in 2009 US dollars GDP (official exchange rate): GDP (official exchange rate): $514.9 billion (2009 est.) GDP - real growth rate: 4.4% (2009 est.) 6.1% (2008 est.) 6.3% (2007 est.) GDP - per capita (PPP): GDP - per capita (PPP): $4,000 (2009 est.) $3,900 (2008 est.) $3,700 (2007 est.) note: data are in 2009 US dollars GDP - composition by sector: agriculture: 14.4% industry: 47.1% services: 38.5% (2009 est.) Labor force: 113.3 million (2009 est.) Labor force - by occupation: agriculture: 42.1% industry: 18.6% services: 39.3% (2006 est.) Unemployment rate: 7.7% (2009 est.) 8.4% (2008 est.) Population below poverty line: 17.8% (2006) Household income or consumption by percentage share: lowest 10%: 3% highest 10%: 32.3% (2005) Distribution of family income - Gini index: 39.4 (2005) 37 (2001) Inflation rate (consumer prices): Inflation rate (consumer prices): 5% (2009 est.) 9.9% (2008 est.) Investment (gross fixed): Investment (gross fixed): 27.1% of GDP (2009 est.) Budget: revenues: $83.77 billion expenditures: $97.24 billion (2009 est.) Public debt: 29.8% of GDP (2009 est.) 29.3% of GDP (2008 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% (2009 est.) Electricity - production: 134.4 billion kWh (2007 est.) Electricity - consumption: 119.3 billion kWh (2007 est.) Electricity - exports: 0 kWh (2008 est.) Electricity - imports: 0 kWh (2008 est.) Oil - production: 1.051 million bbl/day (2008 est.) Oil - consumption: 1.564 million bbl/day (2008 est.) Oil - exports: 85,000 bbl/day (2008 est.) Oil - imports: 671,000 bbl/day (2007 est.) Oil - proved reserves: 3.99 billion bbl (1 January 2009 est.) Natural gas - production: 70 billion cu m (2008 est.) Natural gas - consumption: 36.5 billion cu m (2008 est.) Natural gas - exports: 33.5 billion cu m (2008 est.) Natural gas - imports: 0 cu m (2008 est.) Natural gas - proved reserves: 3.001 trillion cu m (1 January 2009 est.) Current account balance: $10.7 billion (2009 est.) $604 million (2008 est.) Exports: $115.6 billion (2009 est.) $139.3 billion (2008 est.) Exports - commodities: oil and gas, electrical appliances, plywood, textiles, rubber Exports - partners: Japan 20.2%, US 9.5%, Singapore 9.4%, China 8.5%, South Korea 6.7%, India 5.2%, Malaysia 4.7% (2008) Imports: $86.6 billion (2009 est.) $116 billion (2008 est.) Imports - commodities: machinery and equipment, chemicals, fuels, foodstuffs Imports - partners: Singapore 16.9%, China 11.8%, Japan 11.7%, Malaysia 6.9%, US 6.1%, South Korea 5.4%, Thailand 4.9% (2008) Reserves of foreign exchange and gold: $62.59 billion (31 December 2009 est.) $51.64 billion (31 December 2008 est.) Debt - external: $150.7 billion (31 December 2009 est.) $155.1 billion (31 December 2008 est.) Stock of direct foreign investment - at home: $73.02 billion (31 December 2009 est.) $67.3 billion (31 December 2008 est.) Stock of direct foreign investment - abroad: $10.51 billion (31 December 2009 est.) $6.656 billion (31 December 2008 est.) Market value of publicly traded shares: $98.76 billion (31 December 2008) $211.7 billion (31 December 2007) $138.9 billion (31 December 2006) Exchange rates: Indonesian rupiah (IDR) per US dollar - 10,399.2 (2009), 9,698.9 (2008), 9,143 (2007), 9,159.3 (2006), 9,704.7 (2005)