Economy of Indonesia

• 1960: It was one of the poorest countries in the world in these years after a long struggle for independence.
• 1966: Its economy improved with the 5-year economic development programs during the period of President Suharto. At this date, an annual income of $ 1,150 per person was achieved.
• 1977: It was the country that was most negatively affected by the financial crisis in the region.
• 1998: Its economy shrank by 13%.
• 2002: The year when the economy started to recover.
• 2007: Indonesia became the world’s 20th largest economy, with a gross domestic product (GDP) of $ 439 billion.
• 2012: It reached a per capita income of $ 3,537 with a GDP of $ 878 billion.
• 2014: GDP was 892 billion in dollars.
• 2017: DP exceeded 1 trillion dollars.
• 2020: It became the 1st economy of South-East Asia and the 16th economy of the world.
• 2045: According to forecasts, it will be one of the four largest economies in the world if it maintains its growth rate.

Distribution of Gross National Product by Sector
Agriculture: %14.3 Industry: %46.9 Services: %38,8

• The Indonesian administration has announced a total of 16 “Economic Revitalization Packages” since September 2015 In order to improve the economic outlook of Indonesia, with the aim to eliminate legal uncertainties and attract foreign direct investment, primarily for infrastructure.
• Its economy is largely based on exports of oil, natural gas and raw materials. That being said, the livelihood of the vast majority of the people of Indonesia is agriculture, livestock and fisheries and service sectors.
• Indonesia is the world’s largest coconut producer, second largest palm oil producer, third largest cocoa, fourth largest coffee, and fifth largest tobacco and tea producer. Rubber and spice production is also significantly high in the country.
• Forestry is an important source of foreign currency for Indonesia. It is the richest country of South-East Asia in terms of forest. Indonesia’s mineral resources are also very rich. It is one of the biggest tin producers of the world.
• Bauxite, copper, nickel, gold and silver are other important minerals extracted. There has also been a growth in the operation of coal mines in recent years. It is the biggest coal exporter of the world.
• Textile and garment industry has an important place in exports of the country.
• 32% of its workforce is employed within the agricultural sector. It has more than 7.7 million hectares of unprocessed soil available. However, there is low efficiency. 13% of its workforce is employed in the manufacturing sector. Foreign investors have built several billion dollar oil refineries and a large steel mill in recent years. Mining production is expected to develop in the long run. 20% of world nickel production and 10% of aluminum production are being carried out in Indonesia.