Country Report, Indonesia, economic openness, free trade, economic development indicators, global competitiveness report, history of development, world crisis, Covid-19, employment rate, graphs, infrastructure, ICT adoption, macroeconomic stability, product market, labor market, financial system, business dynamism, innovation capability, human capital, population indicators, education indicators, external sector analysis, WTO World Trade Organization, export complexity, import composition
With a population of 273 million and a gross domestic product (GDP) 1 of approximately 1 050 billion, Indonesia is the fifteenth largest economy.
Indonesia is currently relying on economic openness and free trade to catch up economically. It is aware that it has fallen behind its neighbors Malaysia and Singapore, which have a head start in economic development. However, Indonesia's size makes
that it occupies a key geographical position, at the crossroads of several maritime routes. The diversity of its islands 2 and the richness of its subsoil are its competitive advantages that the country seeks to exploit (gas, oil, copper, nickel, spices and natural gasoline). The priority of President Jokowi is to give the country an industrial base. Indeed, Indonesia does not want to be only a supplier of raw materials, as it wishes to acquire an autonomy on the industrial level.
Indonesia's economic growth has been maintained at a steady 5% for the past few years, but it faces other challenges; dependence on exports, which is very high in the mining and palm oil industries, is potentially destabilizing, and poverty remains very visible. The transformations of the Indonesian economy have had positive effects at the macro level, promoting GDP growth, but remain too unbalanced.
[...] Contrary to that, it is equal to 1 in the most unequal situation possible. The higher the index, the greater the inequality. Here the Gini Index is in % in ordinary and the countries in abscissa. The GINI indices presented in the graph above covering the years 2003 and 2017. The Indonesian GINI index was with a score of 0.31 in 2003 compared notably to other Asian countries with even higher index (Sri Lanka, China). As stated earlier, a higher GINI index implies greater inequality. [...]
[...] Destinations of exports (Source: Atlas of Economic Complexity - Harvard University) Excessive concentration in one or two countries represents a major weakness. However, Indonesia exports a lot in China which is its main partners for exports), Japan Singapore India and to a lot of other countries. Indonesia also exports 10% in the USA. (Source: Atlas of Economic Complexity - Harvard University) This graph also illustrates the destination of Indonesian exports, but the evolution dimension is added. That said, we note that depending on the time and the quantity exported, the proportion according to the countries of destination remains the same. [...]
[...] However, the school life expectancy is the worst component with a score of 13,4 years. This value is very low. But this is explained by the fact that parents need their kids to work early to get more money, by preventing them from prolonging their studies. Therefore, most of them do jobs not highly qualified due to the lack of studies. Pillar Product market (Source: World Economic Forum Global Competitiveness Report 2018) The 7th pillar is based on the product market and Indonesia is the 49th country. [...]
[...] That year, the economy grew by (graph in part 1.1 .1). The estimate for 2005 is 5.4 per cent. Indonesia appears to be on a growth streak but has not yet returned to the rates of the 1990s. In 2005, Indonesia's GDP per capita, expressed in purchasing power parity which takes into account local purchasing power per was $3,700, placing Indonesia in the middle-income category. The composition of GDP will be discussed in more detail later. Phase The world crisis: Covid-19 (2019-2020) Such as all the world's countries, Indonesia has been impacted by the Covid-19 economically. [...]
[...] This indicator is "the percentage of the population living on less than $ 3.20 a day at 2011 international prices". (WorldBank). When we look at the graph, we see that both curves are decreasing significantly. However, unlike the world one, the Indonesian ratio fluctuates a lot. In 1984, the poverty headcount ratio was of 90,6% and in 2016, it felt at 24,6% (diminution of 73%). But, as said before, fluctuations have occurred (e.g. in 1997, there was an increase in poverty). [...]
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