The Economy of Indonesia

In 2007, Indonesia’s has the one of the biggest economies in the ASEAN region with a GDP worth $408 billion and a GDP growth of roughly 5.6%. In the 1997-1998 East Asian Financial Crisis, Indonesia is severely hit together with South Korea and Thailand. The Rupiah dropped from Rp. 2,000 to Rp. 18,000 and the Indonesian economy shrunk by almost 14%. The country signed various financial and economic programs provided by the IMF between 1998 and 2000 to restructure its ailing economy.

By the early 2000’s, the country’s economy started to improved. In 2004, The Jakarta Stock Exchange was dubbed as the best performing market up by 42%. The same year the country’s GDP growth was 5.1% and 5.6% the succeeding year. Bu the nation continued to fight back in 2005 due to its very high inflation rate pegged at 17%. The election of reformist Susilo Bambang Yudhoyono in 2004 as president is also seen by various sectors as a good sign of the country’s redevelopment.

Indonesia is a member of APEC, ASEAN, WTO and the only Southeast Asian country in OPEC. Its major exporting partners are Japan, US, China, and Singapore. The country’s main import markets include Japan, China, and Singapore. The major industries in Indonesia comprise of petroleum and natural gas, apparel, textiles, mining, cement, chemical fertilizers, plywood, rubber, food, and tourism. The services sector accounts roughly 45% of the country’s GDP, followed by industry (41%) and agriculture (14%).