ECONOMIC

ISSUES IN
INDONESIA

By. Mohammad
Addi Fanhas
Overview
INDONESIA :
Official Name : Republic of Indonesia
Population : 265,015,300 people (4th largest populous country in the world)
Government system : Presidential Constitutional Republic
President : Joko Widodo
Island amount : + 13.000 island (world largest island country)
Big Island : Java, Sumatra, Borneo, Papua, Sulawesi and Bali
Area : 1.904.569 km2
Location : South East Asia
Neighbouring Country : Malaysia, Singapore, Phillippines, Thailand, Vietnam,
Timor Leste, India (Andaman Island) and Australia
Capital : Jakarta
Language : Indonesian (with more than 300 Local language)
Religion : Islam (87%), Christians (10%), Hindu (1,6%), Budha (1%) (largest
moslem country in the world)
Life expectancy : 71 y’o (2016)
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Geographic Earthquake and Tsunami
2004 (Aceh) : 227.898 fatalities
2005 (Sumatera) : 1.314 ftl
2006 (Java&Sumatera) : 6428 ftl
2007 (Java&Sumatera) : 102 ftl
2009 (Java&Papua) : 1.201 ftl
2010 (Sumatera&Papua) : 408 ftl
….
2016 (Sumatera) : 100 ftl
Last Month : 555 ftl
Last Week : 2000+ fatalities

Indonesia is highly unstable, making it a site of numerous volcanoes and

frequent earthquakes and tsunami. It lies on the Pacific Ring of Fire where the
Indo-Australian Plate and the Pacific Plate are pushed under the Eurasian
plate where they melt at about 100 kilometres (62 miles) deep.
Indonesia = Country of 1000 earthquakes
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Economics Indicator
Curency : Rupiah
Exchange Rate to USD : 1 USD = 15.050 Rupiah
Total GDP (Nominal) : 1,075 Trillion USD (16 th in the world)
GDP per capita : 4.052 USD (114 th in the world)
GDP Annual Growth Rate : 5,4 %
Unemployment Rate : 5,13 %
Minimum Wages : 250 USD / month
Total Export : 15,2 Billion USD
Total Import : 16,8 Billion USD
Balance of Trade : -1,02 Billion USD
Inflation Rate : 2,88 %
Ease of Doing Bussiness : Rank 72 (190)
Corruption Perception Index : 91
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GDP Growth

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Source : World Bank 2017
Export Comodity In Million USD

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Source : Ministry of Trade 2018
Import Comodity In Million USD

Source : Ministry of Trade 2018

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Balance of Trade

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Ease of doing bussiness

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Poverty Rate

Percentage of poverty in 2018 : 9,82 % (lowest since 20 years)

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Unemployment Rate G20 – Unemployement Rate

Unemployment rate : 5.13%

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External Debt

Annually, Indonesia's foreign debt increase by 6.8% at the end of May 2018.
This has been the highest for 20 years. Based on the lending country,
Singapore became the biggest creditor followed by Japan, China, the
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United States and Hong Kong.
 Government says about high external debt :
￮ If measured by the debt to GDP ratio (28%), Debt-to-GDP ratio (%)
Indonesia’s foreign debt is still within safe
limits compared to other countries.
￮ Regulatively, the debt to GDP ratio must not
exceed 60% of GDP
￮ Foreign debt is prioritized for the use of
productive activities and is an investment in
supporting economic growth, such as
infrastructure spending, education, health
and social protection

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Conclussion
￮ Indonesia has better fiscal, inflation and current-account indicators even
compared than India, with a lower growth profile admittedly, but yet a fifth the
population size.
￮ Indonesia is now the seventh-largest economy worldwide measured in
purchasing power parity, and it will likely move into the top 10 based on market
exchange rates by 2030.
￮ Indonesia still needs to reduce poverty, increase employment, fight against
corruption and be careful in managing foreign debt.

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😉 Thank You

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