Economy of Indonesia

Economy of Indonesia
Jakarta, with its central business district, is Indonesia’s principal fintech, financial and business services center.
CurrencyRupiah (IDR, Rp)
1 January - 31 December
Trade organizations
APEC, WTO, G-20, IOR-ARC, RCEP, AFTA, ASEAN, EAS, ADB, others
Country group
Statistics
PopulationIncrease 282,477,584 (June 2024)[3]
GDP
GDP rank
GDP growth
  • Increase 5.31% (2022)[5]
  • Increase 5.05% (2023)[6]
  • Increase 5.05% (Q2 2024)[7]
GDP per capita
  • Increase $4,980 (nominal; 2024 est.)[4]
  • Increase $16,542 (PPP; 2024 est.)[4]
GDP per capita rank
GDP by sector
Positive decrease 1.71% (Oct 2024)[9]
Population below poverty line
Positive decrease 2.14% in multidimensional poverty (2023)[10]
  • Positive decrease 9.03% in national poverty line (March 2024)[11]
  • Positive decrease 1.82% on less than $2.15/day (2023)[10]
  • Positive decrease 17.52% on less than $3.65/day (2023)[10]
  • Positive decrease 61.77% on less than $6.85/day (2023)[10]
Negative increase 36.1 medium (2023)[10]
Steady 34 out of 100 points (2023, 115th rank)
Labour force
  • Increase 147,800,000 (2023)[13]
  • 75% employment rate (2023)[14]
Labour force by occupation
UnemploymentPositive decrease 4.82% (2024 est.)[16]
Main industries
palm oil, coal, petroleum, petrochemicals, liquified natural gas, vehicle, electronics, transportation, machinery, steel, telecommunications, electric power, food processing, wood industry, textile, footwear, consumer goods, integrated circuits, medical equipment, optical devices, paper, handicrafts, chemicals, rubber, pharmaceuticals, financial services, seafood, smelting, and tourism
External
Exports$298.2 billion (2023)[17]
Export goods
Palm oil, Steel, Metal, Machinery and Industrial equipment, Chemicals products, Liquefied natural gas, Textiles products, Footwear products, Automobiles, Transportation products, Wooden products, Plastics
Main export partners
Imports$268.3 billion (2023)[19]
Import goods
Machinery and Industrial equipment, Steel, Foodstuffs, Petroleum products, Electronics, Raw material, Chemicals products, Transportation products
Main import partners
FDI stock
  • Increase $262.92 billion (Inward, 2023)[20]
  • Increase $103.94 billion (Outward, 2023)[20]
Increase +$3.46 billion (2021 est.)
Positive decrease $396.3 billion (Q2 2023)[21]
Public finances
Positive decrease 37.0% of GDP (Q1 2022)[22]
−0.89% (of GDP) (2024 est.)[23]
Revenues$182.1 billion (2024 est.)[24]
Expenses$216.1 billion (2024 est.)[24]
Increase $151.2 Billion (Oct 2024)[30]
All values, unless otherwise stated, are in US dollars.

The economy of Indonesia is a mixed economy with dirigiste characteristics,[31][32] and it is one of the emerging market economies in the world and the largest in Southeast Asia. As an upper-middle income country and member of the G20, Indonesia is classified as a newly industrialized country.[33] Indonesia nominal GDP reached 20.892 quadrillion rupiah ($1.371 trillion) in 2023, it is the 16th largest economy in the world by nominal GDP and the 7th largest in terms of GDP (PPP). Indonesia's internet economy reached US$77 billion in 2022, and is expected to cross the US$130 billion mark by 2025.[34] Indonesia depends on the domestic market and government budget spending and its ownership of state-owned enterprises (the central government owns 141 enterprises). The administration of prices of a range of basic goods (including rice and electricity) also plays a significant role in Indonesia's market economy. However, micro, medium and small companies contribute around 61.7% of the economy and significant major private owned companies and foreign companies are also present[35][36][37]

In the aftermath of the 1997 Asian financial crisis, the government took custody of a significant portion of private sector assets through the acquisition of nonperforming bank loans and corporate assets through the debt restructuring process, and the companies in custody were sold for privatization several years later. Since 1999, the economy has recovered, and growth accelerated to over 4–6% in the early 2000s.[38] In 2012, Indonesia was the second fastest-growing G-20 economy, behind China, and the annual growth rate fluctuated around 5% in the following years.[39][40] Indonesia faced a recession in 2020 when the economic growth collapsed to −2.07% due to the COVID-19 pandemic, its worst economic performance since the 1997 crisis.[41]

In 2022, gross domestic product expanded by 5.31%, due to the removal of COVID-19 restrictions as well as record-high exports driven by stronger commodity prices.[42]

Indonesia is predicted to be the 4th largest economy in the world by 2045. Joko Widodo (Jokowi) has stated that his cabinet's calculations showed that by 2045, Indonesia will have a population of 309 million people. By Jokowi's estimate, there would be economic growth of 5−6% and GDP of US$9.1 trillion. Indonesia's income per capita is expected to reach US$29,000.[43]

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  16. ^ "Unemployment rate was 4.82 per cent and Average labour wage was 3.04 million rupiahs per month". bps.go.id. Badan Pusat Statistik. Retrieved 24 October 2024.
  17. ^ "Exports of goods and services (current US$) - Indonesia". www.data.worldbank.org/. Retrieved 30 June 2024.
  18. ^ a b "Ekspor Desember 2023 mencapai US$22,41 miliar, naik 1,89 persen dibanding November 2023 dan Impor Desember 2023 senilai US$19,11 miliar, turun 2,45 persen dibanding November 2023". www.bps.go.id/. Retrieved 31 March 2024.
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  29. ^ "Fitch Affirms Indonesia at 'BBB'; Outlook Stable". Retrieved 8 December 2020.
  30. ^ "FOREIGN EXCHANGE RESERVES IN OCTOBER 2024". Retrieved 24 November 2024.
  31. ^ Kim, Kyunghoon (2021). "Indonesia's Restrained State Capitalism: Development and Policy Challenges". Journal of Contemporary Asia. 51 (3): 419–446. doi:10.1080/00472336.2019.1675084. S2CID 211395480.
  32. ^ Kim, Kyunghoon (2023). "Key Features of Indonesia's State Capitalism Under Jokowi". Jas (Journal of Asean Studies). 10 (2). doi:10.21512/jas.v10i2.9075.
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  40. ^ "Why Indonesia's Apparent Stability Under Jokowi Is a Sign of Its Stagnation". worldpoliticsreview.com. 21 October 2016. Retrieved 6 May 2020.
  41. ^ "Pertumbuhan Ekonomi 2020 -2,07% Terburuk Sejak Krismon 98". CNBC Indonesia (in Indonesian). Retrieved 5 February 2021.
  42. ^ "Beating expectations, Indonesia's economy grows 5 percent in Q4". www.aljazeera.com. Retrieved 31 March 2022.
  43. ^ "Indonesia Will be World's 4th Largest Economy by 2045, President Jokowi Says". Sekretariat Kabinet Republik Indonesia. 27 March 2017. Archived from the original on 27 June 2017. Retrieved 25 May 2021.