General Economic Outline of Indonesia

Indonesia, currently the 18th-largest economy in the world, is experiencing remarkable economic growth. After the Asian Financial Crisis of the late 1990s halted a booming economy fostered by the Suharto government, Indonesian macroeconomic indicators started to come back on track in the mid 2000s.

Although the Asian Financial Crisis had disastrous consequences (especially on the poorer urban segments of society), important lessons have been learned too. The financial system for example, which to a large extent lacked supervision and transparency, was replaced by a system entailing more prudent fiscal policies in line with international economic standards, thus fostering integration with global markets. Moreover, the Asian Financial Crisis has been the catalyst for a process of political democratization and liberalization that continues up to the present.

Prudent financial macroeconomic policy is one reason why Indonesia was resilient to the global financial crisis of 2008-2009. Both public and private debt have fallen sharply (as a percentage of GDP), international reserves have grown fast and inflation has been under control. In combination with relative political stability and certain favorable demographic trends it provides opportunities for strong economic performance over the medium term. Regarding the longer term, the Indonesian government aims to be in the top six of largest global economies by the year 2030.

Another key element that accounts for Indonesia's recent economic growth is domestic consumption. In line with rising per capita GDP and low borrowing costs, Indonesia's private consumption is robust. It accounted for 56 percent of the country's economic activity in 2011 and future projections indicate that it is to grow further.

Despite such positive conditions Indonesia remains a complex country from a business, social and political perspective. We advise those that intend to invest in Indonesia to read our Risks of Investing in Indonesia page as one should be aware of matters that can negatively influence Indonesia's investment climate.

The table below shows recent results and future forecasts of important macroeconomic indicators. For a more detailed account on these indicators please visit the Macroeconomic Indicators page or click on the links in the table.

Sources: World Bank, IMF, Statistics Indonesia and CIA World Factbook

Composition of Indonesia's Economy: the three main sectors
The table below indicates a remarkable development during the last five decades in the percentage shares of the three main economic sectors (to wit agriculture, industry and services) with regard to Indonesia's Gross Domestic Product (GDP). Indonesia changed from being an economy that was highly dependent on agriculture into a more balanced economy in which the percentage share of manufacturing in the country's GDP quickly exceeded that of the agriculture sector.

This also indicates that Indonesia lessened its traditional dependency on primary exports, although it still remains relatively high today. It should also be underlined that all of these sectors underwent rapid expansion, despite the fact that its contribution to Indonesia's GDP fell (agriculture) or remained at a similar level throughout the indicated period (the services sector). For a more detailed account please click on one of the sectors in the table below.

	1965	1980	1996	2010
Agriculture	51	24	16	15
(percent of GDP)
Industry	13	42	43	47
(percent of GDP)
Services	36	34	41	37
(percent of GDP)

Indonesia's Economic Fact Sheet

• Indonesia was an USD $850 billion economy in 2012

• In 2012 private consumption accounted for about 55 percent of economic activity in Indonesia, partly due to low borrowing costs and rising GDP per capita

• Per Capita GDP rose from USD $780 in 2000 to USD $3,540 in 2011

• Exports account for around 20 percent of GDP. China, Japan, USA and India are Indonesia's largest export destinations

• Around half of Indonesia's exports consist of commodities (in particular palm oil, coal and rubber)

• In 2012 Foreign Direct Investment (FDI) in Indonesia jumped around 26 percent (to USD $29.5 billion) compared to 2011

• Mining accounted for around 12 percent of gross domestic product in 2011

indonesia-investments.com

Membangun Pabrik Mie Instan Indonesia di Kazakhstan

Mie instan buatan Indonesia, terutama Indomie, sudah menjelajah ke berbagai belahan dunia. Ada keinginan Indonesia untuk berinvestasi membangun pabrik Indomie di Kazakhstan, yang merupakan salah satu ladang gandum di dunia ini. Terhadap keinginan Indonesia ini, pemerintah Kazakhstan menyambut baik.
Dalam pertemuan bilateral dengan Presiden Kazakhstan Nursultan Nazarbayev, Presiden SBY menyampaikan sejumlah kerjasama yang akan digenjot, yaitu antara lain kerjasama di bidang pangan, kerjasama di bidang energi, dan kerjasama di bidang pariwisata. Dalam bidang pangan, SBY menyampaikan rencana melakukan investasi pembangunan pabrik mie instan Indofood di Kazakhstan.

"Kazakhstan merupakan produsen gandum dalam jumlah besar. Sedangkan Indonesia memiliki perjalanan panjang dalam membangun perusahaan mie instan. Karena itu Indonesia akan berinvestasi di sini (Kazakhstan-Red) untuk membangun pabrik mie instan," kata Presiden SBY saat melakukan jumpa pers bersama Presiden Nazarbayev usai pertemuan bilateral yang digelar di Istana Kepresidenan Ak-Orda, Astana, Senin (2/9/2013).

Tidak disebutkan secara detil berapa nilai investasi pembangunan pabrik mie instan yang akan dilakukan Indonesia di negeri pecahan Uni Soviet ini. Namun beberapa waktu lalu, Menko Perekonomian Hatta Rajasa menyebutkan investasi Indonesia di negara ber-GDP perkapita US$ 15.000 ini akan bernilai total US$ 1 miliar. Namun, nilai ini tidak hanya untuk pembangunan pabrik mie instan saja, tapi termasuk untuk investasi di bidang lain, seperti farmasi, migas, perbankan, infrastruktur, transportasi, hingga manufaktur.

Menurut Hatta, perusahaan Indonesia yang akan masuk ke Kazakhstan antara lain PT Indofood Tbk, PT Pertamina (Persero), PT Indofarma Tbk, dan perusahaan swasta lainnya. Indofood akan mendirikan pabrik mie instan, Pertamina akan melakukan eksplorasi migas, Indofarma akan mendirikan pabrik obat, dan PT Multistrada Arah Sarana yang akan mendirikan pabrik ban dengan bahan baku karet didatangkan dari Indonesia. Investasi di Kazakhstan dianggap strategis untuk memanfaatkan pasar Eropa dan Rusia.

Terhadap keinginan Indonesia berinvestasi mendirikan pabrik mie instan, Presiden Nazarbayev pun menyambut baik. "Untuk rencana membangun pabrik mie instan, kami siap membantu," kata Nazarbayev. Pemerintah Kazakhstan juga akan berencana menambah investasi di Indonesia.

Secara geografis, Kazakhstan merupakan negara terbesar di bekas wilayah Uni Soviet yang memiliki kekayaan sumber daya alam, khususnya cadangan migas dan tambang lainnya, seperti uranium, tembaga, dan seng. Kazakhstan juga terdiri dari daerah pertanian luas yang menghasilkan gandum dan ternak.

Pembicaraan mengenai rencana dibangunnya pabrik mie instan Indonesia di Kazakhstan sebenarnya sudah dibicarakan pada April 2012 saat Presiden Nazarbayev berkunjung ke Indonesia. Ada kesepakatan antara Indonesia dan Kazakhstan untuk memperkuat kerjasama bilateral di bidang pengelolaan minyak bumi, pembangunan pabrik kendaraan, dan pembangunan pabrik mie instan.