Economic overview Indonesia, in 36 editions.

Indonesia is a mixed economy with many socialist institutions and central planning but with a recent emphasis on deregulation and private enterprise. Indonesia has extensive natural wealth but, yet, with a large and rapidly increasing population, it remains a poor country. GNP GDP growth in 1985-89 averaged about 4%, somewhat short of the more than 5% rate needed to absorb the 2.3 million workers annually entering the labor force. Agriculture, including forestry and fishing, is the most an important sector, accounting for 21% of GDP and over 50% of the labor force. The staple crop is rice. Once the world's largest rice importer, Indonesia is now nearly self-sufficient. Plantation crops--rubber and palm oil--are oil--and textiles and plywood are being encouraged for both export and job generation. The Industrial output now accounts for 30% of GDP based on a supply of diverse natural resources include resources, including crude oil, natural gas, timber, metals, and coal. Of these, the oil sector dominates the external economy, generating more than 20% of the government's revenues and 40% of export earnings in 1989. However, the economy's growth is very dependent on the continuing expansion of nonoil exports. Japan is Indonesia's most important customer and supplier of aid.

Indonesia is a mixed economy with many socialist institutions and central
planning but with a recent emphasis on deregulation and private enterprise.
Indonesia has extensive natural wealth wealth, yet, with a large and rapidly
increasing population, it remains a poor country. GDP growth in 1985-89 1985-91
averaged about 4%, somewhat short of the more than 5% rate needed 6%, quite impressive, but not sufficient to both slash
underemployment and absorb the 2.3 million workers annually entering the
labor force. Agriculture, including forestry and fishing, is an important
sector, accounting for 21% 23% of GDP and over 50% of the labor force. The
staple crop is rice. Once the world's largest rice importer, Indonesia is
now nearly self-sufficient. Plantation crops--rubber crops - rubber and palm oil--and oil - and
textiles and plywood are being encouraged for both export and job
generation. Industrial output now accounts for 30% of GDP and is based on a
supply of diverse natural resources, including crude oil, natural gas,
timber, metals, and coal. Of these, the oil sector dominates the external
economy, generating more than 20% of the government's revenues and 40% of
export earnings in 1989. However, the economy's growth is very highly dependent
on the continuing expansion of nonoil exports. Japan is Indonesia's most
important customer and supplier of aid. In 1991, rapid growth in the money
supply prompted Jakarta to implement a tight monetary policy, forcing the
private sector to go to foreign banks for investment financing. Real
interest rates remained above 10%, off-shore commercial debt grew, and real
GDP growth dropped slightly from the 7% of 1990.

Indonesia is a mixed economy with many socialist institutions and central
planning but with a recent emphasis on deregulation and private enterprise.
Indonesia has extensive natural wealth, yet, with a large and rapidly
increasing population, it remains a poor country. Real GDP growth in 1985-91 1985-92
averaged about 6%, quite impressive, but not sufficient to both slash
underemployment and absorb the 2.3 million workers annually entering the
labor force. Agriculture, including forestry and fishing, is an important
sector, accounting for 23% almost 20% of GDP and over 50% of the labor force. The
The staple crop is rice. Once the world's largest rice importer, Indonesia is
is now nearly self-sufficient. Plantation crops - rubber and palm oil - and
textiles and plywood are being encouraged for both export and job
generation. Industrial output now accounts for 30% almost 40% of GDP and is
based on a
supply of diverse natural resources, including crude oil, natural gas,
gas, timber, metals, and coal. Of these, the oil sector dominates the external
external economy, generating more than 20% of the government's revenues and
40% of
export earnings in 1989. However, the economy's growth is highly dependent
dependent on the continuing expansion of nonoil exports. Japan is remains
Indonesia's most
important customer and supplier of aid. In 1991, rapid Rapid growth in the money
money supply in 1989-90 prompted Jakarta to implement a tight monetary policy,
policy in 1991, forcing the
private sector to go to foreign banks for
investment financing. Real
interest rates remained above 10%, 10% and off-shore
commercial debt grew, grew. The growth in off-shore debt prompted Jakarta to limit
foreign borrowing beginning in late 1991. Despite the continued problems in
moving toward a more open financial system and real the persistence of a fairly
tight credit situation, GDP growth dropped slightly from the 7% of 1990. in 1992 is estimated to have stayed at
6%.

Indonesia is a mixed economy with many some socialist institutions and central
central planning but with a recent emphasis on deregulation and
private enterprise.
Indonesia has extensive natural wealth, yet, with
a large and rapidly
increasing population, it remains a poor country.
Real GDP growth in 1985-92
1985-93 averaged about 6%, quite impressive, but
not sufficient to both slash
underemployment and absorb the 2.3
million workers annually entering the
labor force. Agriculture,
including forestry and fishing, is an important
sector, accounting for almost 20%
21% of GDP and over 50% of the labor force.
The staple crop is rice.
Once the world's largest rice importer, Indonesia
is now nearly
self-sufficient. Plantation crops - rubber and palm oil - and
textiles
and plywood are being encouraged for both export and job
generation.
Industrial output now accounts for almost 40% of GDP and is
based on a
supply of diverse natural resources, including crude oil, natural
gas,
timber, metals, and coal. Of these, the oil sector dominates the Foreign investment has also boosted
external economy, generating more than 20% of the government's revenues manufacturing output and
40% of export earnings exports in 1989. However, recent years. Indeed, the
economy's growth is highly
dependent on the continuing expansion of
nonoil exports. Japan remains
Indonesia's most important customer and
supplier of aid. Rapid growth in the
money supply in 1989-90 prompted
Jakarta to implement a tight monetary
policy in 1991, forcing the
private sector to go to foreign banks for
investment financing. Real
interest rates remained above 10% and off-shore
commercial debt grew.
The growth in off-shore debt prompted Jakarta to limit
foreign
borrowing beginning in late 1991. Despite the continued problems in
moving toward a more open financial system and the persistence of a fairly
fairly tight credit situation, GDP growth in 1992 is estimated to have stayed at and 1993 has matched
6%. the government target of 6%-7% annual growth.

Indonesia is a mixed economy with some socialist
institutions and
central planning but with a recent emphasis on
deregulation and
private enterprise. Indonesia has extensive natural
wealth, yet, with
a large and rapidly increasing population, it
remains a rather poor country.
Real GDP growth in 1985-93 1985-94 averaged
about 6%, quite impressive, but
not sufficient to both slash
underemployment and absorb the 2.3
million workers annually entering
the labor force. Agriculture,
including forestry and fishing, is an
important sector, accounting for
21% of GDP and over 50% of the labor
force. The staple crop is rice.
Once the world's largest rice
importer, Indonesia is now nearly
self-sufficient. Plantation crops -
rubber and palm oil - and textiles
and plywood are being encouraged
for both export and job generation.
Industrial output now accounts for
almost 40% of GDP and is based on a
supply of diverse natural
resources, including crude oil, natural gas,
timber, metals, and coal.
Foreign investment has also boosted
manufacturing output and exports
in recent years. Indeed, the
economy's growth is highly dependent on
the continuing expansion of
nonoil exports. Japan remains Indonesia's
most important customer and
supplier of aid. Rapid growth in the money
supply in 1989-90 prompted
Jakarta to implement a tight monetary
policy in 1991, forcing the
private sector to go to foreign banks for
investment financing. Real
interest rates remained above 10% and
off-shore commercial debt grew.
The growth in off-shore debt prompted
Jakarta to limit foreign
borrowing beginning in late 1991. Despite the
continued problems in
moving toward a more open financial system and
the persistence of a
fairly tight credit situation, GDP growth in 1992 and 1993
1992-94 has matched
the government target of 6%-7% annual growth.

Indonesia is a mixed economy with some socialist
institutions and central
planning but with a recent an emphasis on
rapid deregulation and private enterprise. Indonesia has extensive natural
wealth, yet, with a large and rapidly increasing population, it
remains a rather poor country. enterprise. Real GDP growth in 1985-94 1985-95 averaged
about 6%, 7%, quite
impressive, but not sufficient to both slash
underemployment and
absorb the 2.3 million workers annually entering
the labor force. Agriculture, including forestry and fishing, is an
important sector, accounting for 21% of GDP and over 50% of the labor
force. The staple crop is rice. Once the world's largest rice
importer, Indonesia is now nearly self-sufficient. Plantation crops -
rubber and palm oil - and textiles and plywood
are being encouraged
for both export and job generation. Industrial output now accounts for
almost 40% of GDP and output is based on a supply of diverse natural
resources, including
crude oil, natural gas, timber, metals, and coal.
Foreign investment
has also boosted manufacturing output and exports
in recent years.
Indeed, the economy's growth is highly dependent on
the continuing
expansion of nonoil exports. Japan remains Indonesia's
most
important customer and supplier of aid. Rapid growth in the money
supply in 1989-90 prompted Jakarta to implement a tight monetary
policy in 1991, forcing the private sector to go to foreign banks for
investment financing. Real interest rates remained above 10% and Like some other rapidly
off-shore commercial debt grew. The growth developing countries in off-shore debt prompted
Jakarta Southeast Asia, Indonesia is struggling to limit foreign borrowing beginning in late 1991. Despite the
continued problems in moving toward a more open financial system and
the persistence of a fairly tight credit situation, GDP growth in
1992-94 has matched keep the government target of 6%-7% annual growth. economy from overheating.

Indonesia is a mixed economy with some central Indonesia's sound macroeconomic management,
planning but combined with an emphasis on rapid deregulation and private encouragement of
enterprise. Real private investment resulted in real GDP growth in 1985-95 averaged about 7%, quite 1991-96 averaging
about 7%. This was impressive, but not sufficient to both slash underemployment and cut
absorb underemployment while absorbing the 2.3 million workers annually
entering the labor force. Foreign investment has boosted manufacturing
output and exports in recent years. The economy's growth is driven by
continuing expansion of nonoil exports. Plantation crops - rubber and
palm oil - and textiles and plywood
are being encouraged for both
export and job generation. Industrial
output is based on a supply of diverse
natural resources, including
crude oil, natural gas, timber, metals, and coal. Foreign investment
has also boosted manufacturing output and exports in recent years.
Indeed, the economy's growth is highly dependent on the continuing
expansion of nonoil exports. coal. Japan remains Indonesia's most
important customer and
supplier of aid. Like some other rapidly Growth in 1996 was led by industry, transport, and
developing countries tourism. Strong growth should continue in Southeast Asia, Indonesia is struggling to 1997 assuming no sharp rise
keep the economy from overheating. in political uncertainty.

Indonesia, a vast polyglot nation, faces severe economic development problems, stemming from secessionist movements and the low level of security in the regions, the lack of reliable legal recourse in contract disputes, corruption, weaknesses in the banking system, and strained relations with the IMF. Investor confidence will remain low and few new jobs will be created under these circumstances. Growth In November 2001, Indonesia agreed with the IMF on a series of 4.8% economic reforms in 2000 is not sustainable, being attributable 2002, thus enabling further IMF disbursements. Keys to favorable short-term factors, including high world oil prices, future growth remain internal reform, the build-up of the confidence of international donors and investors, and a surge strong comeback in nonoil exports, and increased domestic demand for consumer durables. the global economy.

Indonesia, a vast polyglot nation, faces severe economic development problems, problems stemming from secessionist movements and the low level of security in the regions, regions; the lack of reliable legal recourse in contract disputes, corruption, disputes; corruption; weaknesses in the banking system, system; and strained relations with the IMF. Investor confidence will remain low and few new jobs will be created under these circumstances. In November 2001, Indonesia agreed with the IMF on a series of economic reforms in 2002, thus enabling further IMF disbursements. Negotiations with the IMF and bilateral donors continued in 2002. Keys to future growth remain internal reform, the build-up of the confidence of international donors and investors, and a strong comeback in the global economy.

Indonesia, a vast polyglot nation, faces severe economic development problems stemming from secessionist movements and the low level recent acts of security in the regions; terrorism, unequal resource distribution among regions, endemic corruption, the lack of reliable legal recourse in contract disputes; corruption; disputes, weaknesses in the banking system; and strained relations with the IMF. Investor confidence will remain low system, and few new jobs will be created under these circumstances. In November 2001, a generally poor climate for foreign investment. Indonesia agreed with the withdrew from its IMF on a series program at the end of economic reforms in 2002, thus enabling further IMF disbursements. Negotiations with 2003, but issued a "White Paper" that commits the government to maintaining fundamentally sound macroeconomic policies previously established under IMF and bilateral donors guidelines. Investors, however, continued in 2002. to face a host of on-the-ground microeconomic problems and an inadequate judicial system. Keys to future growth remain internal reform, the build-up of building up the confidence of international donors and domestic investors, and a strong comeback in the global economy. economic growth.

Indonesia, a vast polyglot nation, has restored financial stability and pursued sober fiscal policies since struggled to overcome the Asian financial crisis, but many economic development problems remain, including 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 due to because of declining production and lack of new exploration investment. As a result, Jakarta is not reaping In late December 2004, the benefits of high world oil prices, Indian Ocean tsunami took 131,000 lives with another 37,000 missing, left some 570,000 displaced persons, and the caused an estimated $4.5 billion in damages and losses. The cost of subsidizing domestic fuel prices has placed an increasing strain on the budget. budget in 2005, and combined with indecisive monetary policy, contributed to a run on the currency in August 2005, prompting the government to enact a 126% average fuel price hike in October. The resulting inflation and interest rate hikes dampened growth prospects in 2006. However, in October 2006, Jakarta paid off its outstanding IMF debt, incurred during the 1997-98 Asian financial crisis, four years ahead of schedule. 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, a major tsunami took nearly 127,000 lives, left more than 93,000 missing and nearly 441,000 displaced, and destroyed $4.5 to $5.0 billion worth of property.

Indonesia, a vast polyglot nation, has struggled to overcome the Asian financial crisis, and still grapples with high persistent poverty and unemployment, inadequate infrastructure, endemic corruption, 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 The country continues the slow work of new exploration investment. In late December 2004, rebuilding from the Indian Ocean devastating December 2004 tsunami took 131,000 lives with another 37,000 missing, left some 570,000 displaced persons, and caused from an estimated $4.5 earthquake in central Java in May 2006 that caused over $3 billion in damages damage and losses. Declining oil production and lack of new exploration investment turned Indonesia into a net oil importer in 2004. 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 2005, August, prompting the government to enact a 126% average fuel price hike in October. The resulting inflation and interest rate hikes dampened growth prospects through mid-2006, while large increases in 2006. However, rice prices pushed millions more people under the national poverty line. Economic reformers introduced three policy packages in October 2006, Jakarta paid off its outstanding IMF debt, incurred during 2006 to improve the 1997-98 Asian investment climate, infrastructure, and the financial crisis, four years ahead of schedule. sector, but translating them into reality has not been easy. Keys to future growth remain internal reform, building up the confidence of international and domestic investors, and strong global economic growth. 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.

Indonesia, a vast polyglot nation, has struggled to overcome been undergoing significant economic reforms under President YUDHOYONO. Indonesia's debt-to-GDP ratio has been declining steadily, its foreign exchange reserves are at an all-time high of over $50 billion, and its stock market has been one of the Asian three best performers in the world in 2006 and 2007, as global investors sought out higher returns in emerging markets. The government has introduced significant reforms in the financial crisis, sector, including tax and customs reforms, the introduction of Treasury bills, and improved capital market supervision. Indonesia's new investment law, passed in March 2007, seeks to address some of the concerns of foreign and domestic investors. Indonesia still grapples struggles with persistent poverty and unemployment, inadequate infrastructure, endemic corruption, a fragile banking sector, a poor investment climate, complex regulatory environment, and unequal resource distribution among regions. The country continues the Indonesia has been slow work of rebuilding from the devastating December 2004 tsunami and from an earthquake in central Java in May 2006 that caused to privatize over $3 billion 100 state-owned enterprises, several of which have monopolies in damage and losses. Declining oil production key sectors. The non-bank financial sector, including pension funds and lack insurance, remains weak. Capital markets are underdeveloped. The high global price of new exploration investment turned Indonesia into a net oil importer in 2004. The 2007 increased 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 dampened growth through mid-2006, while large increases in rice prices pushed millions more people under the national poverty line. Economic reformers introduced three policy packages in 2006 to improve the investment climate, infrastructure, electricity subsidies, and the financial sector, but translating them into reality has not been easy. Keys are contributing to future growth remain internal reform, building up concerns about higher food prices. Located on the confidence Pacific "Ring of international and domestic investors, Fire" Indonesia remains vulnerable to volcanic and strong global economic growth. tectonic disasters. 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.

Indonesia, a vast polyglot nation, has been undergoing made significant economic reforms advances under the administration of President YUDHOYONO. YUDHOYONO but faces challenges stemming from the global financial crisis and world economic downturn. Indonesia's debt-to-GDP ratio has been declining steadily, its foreign exchange reserves are at an all-time high of over $50 billion, and its stock market in recent years has been one declined steadily because of the three best performers in the world in 2006 increasingly robust GDP growth and 2007, as global investors sought out higher returns in emerging markets. sound fiscal stewardship. The government has introduced significant reforms in the financial sector, including in the areas of tax and customs reforms, customs, the introduction use of Treasury bills, and improved capital market supervision. Indonesia's new investment law, passed in March 2007, seeks to address some of the concerns of foreign and domestic investors. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. Indonesia has been slow to privatize over 100 state-owned enterprises, several of which have monopolies in key sectors. The non-bank financial sector, including pension funds and insurance, remains weak. Capital markets are Despite efforts to broaden and deepen capital markets, they remain underdeveloped. The Economic difficulties in early 2008 centered on high global price of food and oil in 2007 increased the cost of domestic fuel prices and electricity subsidies, their impact on Indonesia's poor and are contributing to concerns about higher food prices. Located on the Pacific "Ring budget. The onset of Fire" Indonesia remains vulnerable to volcanic and tectonic disasters. Significant progress has been made in rebuilding Aceh after the devastating December 2004 tsunami, and global financial crisis dampened inflationary pressures, but increased risk aversion for emerging market assets resulted in large losses in the province now shows more economic activity than before stock market, significant depreciation of the disaster. Unfortunately, Indonesia suffered new disasters in 2006 rupiah, 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, difficult environment for bond issuance. As global demand has slowed and major flooding in Jakarta, all of which caused additional damages in prices for Indonesia's commodity exports have fallen, Indonesia faces the billions prospect of dollars. Donors are assisting Indonesia with its disaster mitigation growth significantly below the 6-plus percent recorded in 2007 and early warning efforts. 2008.

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. Increasing investment by both local and foreign investors is also supporting solid growth. Although the economy slowed significantly to 4.5% growth in 2009 from the 6%-plus growth rate recorded in 2007 and 2008, by 2010 growth returned to a 6% rate. During the recession, Indonesia outperformed most of its regional neighbors and joined China and India as the only G20 members posting growth. neighbors. 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. stewardship, leading two of the three leading credit agencies to upgrade credit ratings for Indonesia's sovereign debt to one notch below investment grade. 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 YUDHOYONO and his vice president, suggests respected economist BOEDIONO, have maintained broad continuity of economic policy, although the start economic reform agenda has been slowed during the first year of their term has been marred by corruption scandals and the departure of an internationally respected finance minister. In late 2010, increasing inflation, driven by higher and volatile food prices, posed an increasing challenge to economic policymakers and threatened to push millions of the near-poor below the poverty line. The government in 2010 2011 faces the ongoing challenge of improving Indonesia's insufficient infrastructure to remove impediments to economic growth, while addressing climate change mitigation and adaptation needs, concerns, particularly with regard to conserving Indonesia's forests and peatlands, the focus of a potentially trailblazing $1 billion REDD+ pilot project.

Indonesia, a vast polyglot nation, grew an estimated 6.1% and 6.4% more than 6% annually in 2010 and 2011, respectively. 2010-12. The government made economic advances under the first administration of President YUDHOYONO (2004-09), introducing significant reforms in the financial sector, including tax and customs reforms, the use of Treasury bills, and capital market development and supervision. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth in 2009. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25%, a fiscal deficit below 3%, and historically low rates of inflation. Fitch and Moody's upgraded Indonesia's credit rating to investment grade in December 2011. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. The government in 2013 faces the ongoing challenge of improving Indonesia's Indonesia''s insufficient infrastructure to remove impediments to economic growth, labor unrest over wages, and reducing its fuel subsidy program in the face of high oil prices.

Indonesia, a vast polyglot nation, grew more than 6% annually in 2010-12. The government made economic advances under the first administration of President YUDHOYONO (2004-09), introducing significant reforms in the financial sector, including tax and customs reforms, the use of Treasury bills, and capital market development and supervision. has grown strongly since 2010. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth in 2009. growth. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25%, a fiscal deficit below 3%, 25% and historically low rates of inflation. Fitch and Moody's upgraded Indonesia's credit rating to investment grade in December 2011. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. The government in 2013 also faces the ongoing challenge challenges of improving Indonesia''s insufficient infrastructure to remove impediments to economic growth, quelling labor unrest over wages, and reducing its fuel subsidy program subsidies in the face of high oil prices.

Indonesia, a vast polyglot nation, Indonesia has grown strongly seen a slowdown in growth since 2010. 2012, mostly due to the end of the commodities export boom. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25% and historically low rates of inflation. Fitch and Moody's upgraded Indonesia's credit rating to investment grade in December 2011. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, a current account deficit, and unequal resource distribution among regions. The government also faces the challenges of quelling labor unrest President Joko WIDODO - elected in July 2014 - has emphasized maritime and reducing fuel other infrastructure development, and especially increased electric power capacity, since taking office. Fuel subsidies were almost completely removed in early 2015, a move which could help the face government increase spending on its development priorities. Indonesia, with the nine other ASEAN members, will continue to move towards participation in the ASEAN Economic Community, though full implementation of high oil prices. economic integration will not be completed by the previously-set deadline of year-end 2015.

Indonesia Indonesia, the largest economy in Southeast Asia, has seen a slowdown in growth since 2012, mostly due to the end of the commodities export boom. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth. The government has promoted fiscally conservative policies, resulting in a Indonesia’s annual budget deficit is capped at 3% of GDP, and the Government of Indonesia lowered its debt-to-GDP ratio from a peak of 100% shortly after the Asian financial crisis in 1999 to less than 25% and historically low rates of inflation. today. Fitch and Moody's upgraded Indonesia's credit rating to investment grade in December 2011.
Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, a current account deficit, and unequal resource distribution among its regions. President Joko WIDODO - elected in July 2014 - has emphasized – seeks to develop Indonesia’s maritime resources and pursue other infrastructure development, and especially increased electric including significantly increasing its electrical power capacity, since taking office. generation capacity. Fuel subsidies were almost completely removed significantly reduced in early 2015, a move which could help has helped the government increase spending on redirect its spending to development priorities. Indonesia, with the nine other ASEAN members, will continue to move towards participation in the ASEAN Economic Community, though full implementation of economic integration will has not be completed by the previously-set deadline of year-end 2015. yet materialized.

Indonesia, the largest economy in Southeast Asia, has seen a slowdown in growth since 2012, mostly due to the end of the commodities export boom. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth. Indonesia’s annual budget deficit is capped at 3% of GDP, and the Government of Indonesia lowered its debt-to-GDP ratio from a peak of 100% shortly after the Asian financial crisis in 1999 to less than 25% 27 percent today. While Fitch and Moody's Investors upgraded Indonesia's credit rating to investment grade in December 2011. 2011, Standard & Poor’s has yet to raise Indonesia’s rating to this status amid several constraints to foreign direct investment in the country, such as a high level of protectionism.
Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among its regions. President Joko WIDODO - elected in July 2014 – seeks to develop Indonesia’s maritime resources and pursue other infrastructure development, including significantly increasing its electrical power generation capacity. Fuel subsidies were significantly reduced in early 2015, a move which has helped the government redirect its spending to development priorities. Indonesia, with the nine other ASEAN members, will continue to move towards participation in the ASEAN Economic Community, though full implementation of economic integration has not yet materialized.

Indonesia, the largest economy in Southeast Asia, has seen a slowdown in growth since 2012, mostly due to the end of the commodities export boom. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth. Indonesia’s annual budget deficit is capped at 3% of GDP, and the Government of Indonesia lowered its debt-to-GDP ratio from a peak of 100% shortly after the Asian financial crisis in 1999 to less than 27 percent 34% today. While Fitch and Moody's Investors upgraded Indonesia's credit rating to investment grade in December 2011, In May 2017 Standard & Poor’s has yet became the last major ratings agency to raise upgrade Indonesia’s sovereign credit rating to this status amid several constraints to foreign direct investment in the country, such as a high level of protectionism.
Indonesia still struggles with poverty grade. Poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among its regions. regions are still part of Indonesia’s economic landscape. President Joko WIDODO - elected in July 2014 – seeks to develop Indonesia’s maritime resources and pursue other infrastructure development, including significantly increasing its electrical power generation capacity. Fuel subsidies were significantly reduced in early 2015, a move which has helped the government redirect its spending to development priorities. Indonesia, with the nine other ASEAN members, will continue to move towards participation in the ASEAN Economic Community, though full implementation of economic integration has not yet materialized.

Indonesia, the largest economy in Southeast Asia, has seen a slowdown in growth since 2012, mostly due to the end of the commodities export boom. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth. Indonesia’s annual budget deficit is capped at 3% of GDP, and the Government of Indonesia lowered its debt-to-GDP ratio from a peak of 100% shortly after the Asian financial crisis in 1999 to 34% today. In May 2017 Standard & Poor’s became the last major ratings agency to upgrade Indonesia’s sovereign credit rating to investment grade.
Poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among its regions are still part of Indonesia’s economic landscape. President Joko WIDODO - elected in July 2014 – seeks to develop Indonesia’s maritime resources and pursue other infrastructure development, including significantly increasing its electrical power generation capacity. Fuel subsidies were significantly reduced in early 2015, a move which has helped the government redirect its spending to development priorities. Indonesia, with the nine other ASEAN members, will continue to move towards participation in the ASEAN Economic Community, though full implementation of economic integration has not yet materialized.