CFI Data on Indonesia

Indonesia was the 16th largest economy by nominal GDP in 2018 and the largest in South-East Asia. It is the fourth most populous country in the world. GDP per capita is $3,894 USD. Indonesia is a member of the G20 and is a founding member of ASEAN. Indonesia is rich in natural resources and has a strong domestic economy. Services accounted for 43 percent of GDP in 2018, followed by manufacturing (19.9 percent), and Agriculture (12.8 percent). The largest export sectors in 2017 were Agriculture (25 percent), minerals (20 percent), services (12 percent), textiles (11 percent), and chemicals (9 percent). The largest export products were palm oil (8.9 percent), coal (8.89 percent), travel and tourism (6 percent), petroleum gasses (4.1 percent), and ICT services (3.9 percent). Its largest export partners are China (13.8 percent), the USA (10.8 percent), Japan (9.98 percent), India (8.11 percent), and Singapore (6.8 percent). The largest import goods are oil (14.7 percent), industrial machinery (13.96 percent), electric machinery and equipment (11.9 percent), and iron and steel (5 percent). Indonesia began to transform under the Suharto government in the late 1960s with growth rates over 8 percent and a rapid reduction in poverty. Suharto ended the international isolation of the Sukarno era, which led to large inflows of international aid and investment. He also embarked on a policy of import substitution. Indonesia also began to benefit from an increasing oil price, particularly after the oil shocks in the 1970s. When the oil price began to fall in 1981, Indonesia was left exposed with high levels of debt and an uncompetitive economy. In response, Suharto Administration introduced a comprehensive national diversification program and deregulated the economy. Growth recovered but the 1997-1998 Asian crisis hit the country hard; GDP decreased by almost 14 % in 1998. It also exposed the structural problems and the level of corruption under Suharto. With IMF help, growth recovered in the 2000s and was maintained through the global financial crisis due in part to the resource boom and strong domestic demand. After the resource boom cooled in 2012, the government has turned to infrastructure spending to spur development. Indonesia has also benefitted from the establishment of the ASEAN economic community in 2015.