Indonesia Economy 2008

Economy - overview:
Indonesia, a vast polyglot nation, struggles with persistent poverty and unemployment, inadequate infrastructure, pervasive corruption, a fragile banking sector, a poor investment climate, and unequal resource distribution among regions. Declining oil production and lack of new exploration investment turned Indonesia into a net oil importer in 2004. The cost of subsidizing domestic fuel strained the budget in 2005, ultimately prompting the government to enact a 126% average fuel price hike in October. The resulting inflation and interest rate hikes dampened growth through mid-2006, while large increases in rice prices pushed millions more people under the national poverty line. The economy accelerated throughout 2007, but keys to sustained future growth remain internal reform and building up the confidence of international and domestic investors. The high global price of oil in 2007 increased the cost of domesic fuel and electricity subsidies, which consume a significant share of government spending. Significant progress has been made in rebuilding Aceh after the devastating December 2004 tsunami, and the province now shows more economic activity than before the disaster. Unfortunately, Indonesia suffered new disasters in 2006 and early 2007 including: a major earthquake near Yogyakarta, an industrial accident in Sidoarjo, East Java that created a "mud volcano," a tsunami in South Java, and major flooding in Jakarta, all of which caused additional damages in the billions of dollars. Donors are assisting Indonesia with its disaster mitigation and early warning efforts.

GDP (purchasing power parity):
$845.6 billion (2007 est.)

GDP (official exchange rate):
$287.4 billion (2007 est.)

GDP - real growth rate:
6.1% (2007 est.)

GDP - per capita (PPP):
$3,400 (2007 est.)

GDP - composition by sector:
agriculture: 12.4%
industry: 47.7%
services: 39.9% (2007 est.)

Labor force:
108 million (2007 est.)

Labor force - by occupation:
agriculture: 43.3%
industry: 18%
services: 38.7% (2004 est.)

Unemployment rate:
9.7% (2007 est.)

Population below poverty line:
17.8% (2006)

Household income or consumption by percentage share:
lowest 10%: 3.6%
highest 10%: 28.5% (2002)

Distribution of family income - Gini index:
36.3 (2005)

Inflation rate (consumer prices):
6.3% (2007 est.)

Investment (gross fixed):
23.6% of GDP (2007 est.)

Budget:
revenues: $88.21 billion
expenditures: $95.41 billion (2007 est.)

Public debt:
35.4% of GDP (2007 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:
6.1% (2007 est.)

Electricity - production:
125.9 billion kWh (2006 est.)

Electricity - consumption:
108 billion kWh (2006 est.)

Electricity - exports:
0 kWh (2006 est.)

Electricity - imports:
0 kWh (2006 est.)

Oil - production:
1.07 million bbl/day (2006 est.)

Oil - consumption:
1.1 million bbl/day (2006 est.)

Oil - exports:
470,000 bbl/day (2006 est.)

Oil - imports:
500,000 bbl/day (2006 est.)

Oil - proved reserves:
4.301 billion bbl (1 January 2006 est.)

natural gas - production:
74 billion cu m (2006 est.)

natural gas - consumption:
37.5 billion cu m (2006 est.)

natural gas - exports:
29.6 billion cu m (2006 est.)

natural gas - imports:
0 cu m (2006)

natural gas - proved reserves:
2.63 trillion cu m (1 January 2007 est.)

Current account balance:
$10.21 billion (2007 est.)

Exports:
$118.4 billion f.o.b. (2007 est.)

Exports - commodities:
oil and gas, electrical appliances, plywood, textiles, rubber

Exports - partners:
Japan 19.4%, Singapore 11.8%, US 11.5%, China 7.7%, South Korea 6.4%, Taiwan 4.2% (2006)

Imports:
$86.24 billion f.o.b. (2007 est.)

Imports - partners:
Singapore 29.6%, China 11.2%, Japan 8.8%, South Korea 5.3%, Malaysia 4.8% (2006)

Economic aid - recipient:
ODA, $2.524 billion (2006 est.)
note: Indonesia ended 2006 with $67 billion in official foreign debt (about 25% of GDP), with Japan ($25 billion), the World Bank ($8.5 billion) and the Asian Development Bank ($8.4 billion) as the largest creditors; about $6 billion in grant assistance was pledged to rebuild Aceh after the December 2004 tsunami; President YUDHOYONO disbanded the Consultative Group on Indonesia (CGI) donor forum in January 2007 (2005)

Reserves of foreign exchange and gold:
$53.27 billion (31 December 2007 est.)

Debt - external:
$137.2 billion (30 June 2007)

Stock of direct foreign investment - at home:
$21.91 billion (2006 est.)

Stock of direct foreign investment - abroad:
$9.225 billion (2006 est.)

Market value of publicly traded shares:
$138.9 billion (2006)

Currency (code):
Indonesian rupiah (IDR)

Exchange rates:
Indonesian rupiah per US dollar - 9,056 (2007 est.), 9,159.3 (2006), 9,704.7 (2005), 8,938.9 (2004), 8,577.1 (2003)