Table of Contents
Is Indonesia a planned economy?
Indonesia’s economic planning follows a 20-year development plan, spanning from 2005 to 2025. It is segmented into 5-year medium-term development plans called the RPJMN (Rencana Pembangunan Jangka Menengah Nasional), each with different development priorities.
What type of economic system is used in Indonesia?
Indonesia has a mixed economic system which includes a variety of private freedom, combined with centralized economic planning and government regulation. Indonesia is a member of the Asia-Pacific Economic Cooperation (APEC) and the Association of Southeast Asian Nations (ASEAN).
How is Indonesia economy doing?
However, Indonesia faced a recession in 2020, when the economic growth collapsed to −2.07\% due to the COVID-19 pandemic….Economy of Indonesia.
| Statistics | |
|---|---|
| GDP per capita rank | 104th (nominal; 2021 est.) 96th (PPP; 2021 est.) |
| GDP by sector | Agriculture: 13.7\% Industry: 41\% Services: 45.4\% (2017 est.) |
| Inflation (CPI) | 1.56\% (2021 est.) |
What contributes to Indonesia’s GDP?
In 2020, preliminary figures showed that the manufacturing sector contributed to approximately 20 percent of Indonesia’s GDP….Contribution to gross domestic product of Indonesia in 2020, by industry.
| Characteristic | Share of gross domestic product |
|---|---|
| Construction | 10.71\% |
| Mining and quarrying | 6.44\% |
What is the unemployment rate in Indonesia?
In 2020, the unemployment rate in Indonesia was at approximately 4.11 percent….Indonesia: Unemployment rate from 1999 to 2020.
| Characteristic | Unemployment rate |
|---|---|
| 2019 | 3.62\% |
| 2018 | 4.4\% |
| 2017 | 3.88\% |
| 2016 | 4.3\% |
Why is Indonesia unemployment so low?
During the course of Suharto’s New Order, economic development added many new jobs to the Indonesian economy, thus pushing down the nation’s unemployment rate. Today, around 80 percent of this informal employment is concentrated in the nation’s rural areas, particularly in the construction and agriculture sectors.
What is the poverty rate in Indonesia?
In 2020, about 9.78 percent of the Indonesian population lived below the poverty line, an increase from the previous year. This percentage slowly decreased from approximately 17.4 percent in 2003. The poverty line is the minimum amount of income needed for day to day necessities.
What is the current economic condition of Indonesia?
In 2012, Indonesia replaced India as the second-fastest-growing G-20 economy, behind China. Since then, the annual growth rate has fluctuated around 5\%. However, Indonesia faced a recession in 2020 when the economic growth collapsed to −2.07\% due to the COVID-19 pandemic, the worst growth since 1997 crisis.
Why invest in indindonesia’s manufacturing sector?
Indonesia’s manufacturing sector has historically played a key role in the country’s economic development and now contributes to 20 percent of GDP. The government has ambitious plans to propel the country into the top ten biggest economies in the world by 2030, with manufacturing at the heart of this goal.
How did Indonesia’s economy grow during the 1980s?
Foreign investment flowed into Indonesia, particularly into the rapidly developing export-oriented manufacturing sector, and from 1989 to 1997, the Indonesian economy grew by an average of over 7\%. GDP per capita grew 545\% from 1970 to 1980 as a result of the sudden increase in oil export revenues from 1973 to 1979.
What is the 1997 economic reform program in Indonesia?
In October 1997, Indonesia and the International Monetary Fund (IMF) reached agreement on an economic reform program aimed at macroeconomic stabilization and elimination of some of the country’s most damaging economic policies, such as the National Car Program and the clove monopoly, both involving family members of Suharto.