Indonesia’s
economy was marked by overall macro stability. Growth was driven primarily
by rapidly expanding exports
and
also by domestic consumption. Indonesia has
steadily become the country where its debt to GDP ratio is among the lowest
in the world (33% in 2007). Its foreign reserve was at an all time high
reaching more than US$ 50 billion. Last year inflation rate could also be
maintained at 6.5%.
As
the Indonesian export of products and commodities are increasingly
competitive in the world market,
Indonesia’s export to various markets in
the world has steadily grown. Indonesia’s
non-oil and gas exports showed impressive growth on the strength of world
demand and high international commodity prices. Those are, among others,
CPO, coffee, cacao, rubber, furniture, apparel, footwear, mining,
electronics and electrical appliances, textiles, cement, chemical
fertilizer, food products, spices, leather and leather products, pulp and
paper, stationery, animal fats, medical equipment and medicine plants.
In making
investment in Indonesia
more attractive, the Indonesian Government has been working hard to further
improve business and investment climate through regulations and
institutional reform. In addressing some of the concerns of foreign and
domestic investors, in March 2007 the new investment law was adopted
(download the Investment Law in pdf format). The new law establishes general
principles, among others: equal treatment for domestic and foreign
investors, strengthening government ability to offer incentives to investors
and contributing to further coordination within government, converting red
tape into
red carpet for investors, opening up several sectors previously in the
negative list and cutting procedures and time to start business in Indonesia.
Through upholding legal certainty of
laws and regulations, and more importantly consistently implementing
transparency and accountability, the Government is confident that Indonesia will be able to provide a
conducive and better climate for investment. Potential areas for investment
in Indonesia are
among others: infrastructure projects including in transportation and
telecommunication, services, industries, agribusiness, fisheries as well as
tourism-related investment (hotels, spas, and resorts).
Indonesian Basic Economic Fact
|
|
2007
|
2008
|
2009
(Prediction) |
GDP Growth
GDP
in nominal value
GDP
in nominal value per capita
GDP at Purchasing Power Parity per capita |
6.3%
USD 432.81 billion **
USD 1,942 ****
USD 3,726 * |
6.1%
USD 511,76 billion *
USD 2,217 ****
USD 3,986 * |
4% ***** |
|
Reserves*****
|
USD 56.9 billion
|
USD 51.6 billion
|
|
|
Exhange rate of Rupiah (for USD 1)
|
Rp. 9,125
|
Rp. 9,100
|
|
|
Inflation *****
|
6.6%
|
11.06%
|
5-7% |
|
Bank Indonesia’s benchmark rate *****
|
8.25%
|
7.5%
|
|
|
Budget deficit
|
1.3%
|
1.7%
|
|
Export ****
Import **** |
USD 114.1 billion
USD 74.47 billion |
USD 137.02 billion
USD 129.19 billion |
|
Investment realization
***
Domestic investment
Foreign investment |
USD 14.21 billion
(up 72% from 2006)
USD 3.84 billion
USD 10.34 billion |
USD 14.87 billion
|
|
*
International Monetary Fund
** World Bank
***Investment Coordinating Board
**** Central Bureau of Statistics
***** Bank Indonesia
Download
2008 Economic Report on Indonesia (published by Bank Indonesia)
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