Economy of Indonesia

The economy of Indonesia is the largest in Southeast Asia and is one of the emerging market economies. As a middle-income country and member of the G20, Indonesia is classified as a newly industrialized country.[32] It is the 17th largest economy in the world by nominal GDP and the 7th largest in terms of GDP (PPP). Estimated at US$40 billion in 2019, Indonesia's Internet economy is expected to cross the US$130 billion mark by 2025.[33] Indonesia depends on the domestic market and government budget spending and its ownership of state-owned enterprises (the central government owns 141 enterprises). The administration of prices of a range of basic goods (including rice and electricity) also plays a significant role in Indonesia's market economy. However, since the 1990s, the majority of the economy has been controlled by individual Indonesians and foreign companies.[34][35][36]

Quick facts: Currency, Fiscal year, Trade organizations, C... ▼

Economy of Indonesia

Jakarta, the financial centre of Indonesia
Currency	Rupiah (IDR, Rp)
Fiscal year	Calendar year
Trade organizations	APEC, WTO, G-20, IOR-ARC, RCEP, AFTA, ASEAN, EAS, ADB, others
Country group	Developing/Emerging[1] Lower-middle income economy[2][3] Newly industrialized country
Statistics
Population	277,329,163 (2022)[4]
GDP	$1.38 trillion (nominal; 2023 est.)[5] $4.37 trillion (PPP; 2023 est.)[5]
GDP rank	17th (nominal; 2023 est.) 7th (PPP; 2023 est.)
GDP growth	3.7% (2021)[6] 5.31% (2022f)[7] 5.0% (2023f)[6]
GDP per capita	$5,005 (nominal; 2023 est.)[5] $15,765 (PPP; 2023 est.)[5]
GDP per capita rank	113th (nominal; 2023 est.) 97th (PPP; 2023 est.)
GDP by sector	Agriculture: 13.7% Industry: 41% Services: 45.4% (2017 est.)[8]
Inflation (CPI)	5.47% (February 2023)[9]
Population below poverty line	2.5% in extreme poverty (2021 est.)[10] 2.78% in multidimensional poverty (2021)[11] 9.54% in national poverty line (2022)[12] 3.55% on less than $2.15/day (2021)[11] 22.39% on less than $3.65/day (2021)[11] 60.20% on less than $6.85/day (2021)[11]
Gini coefficient	37.3 medium (2021)[13]
Human Development Index	0.705 high (2021)[14] (114th) 0.585 medium IHDI (2021)[15]
Labour force	134,616,083 (2020)[16] 64.5% employment rate (2020)[17]
Labour force by occupation	Agriculture: 27.7% Industry: 22.6% Services: 49.6% (2020 est.)[18]
Unemployment	6.0% (2022 est.)[19]
Main industries	palm oil, coal, petroleum, petrochemicals, liquified natural gas, vehicle, electronics, transportation, machinery, steel, telecommunication, electric power, food processing, wood industry, textile, footwear, consumer goods, integrated circuits, medical equipment, optical devices, paper, handicrafts, chemicals, rubber, pharmaceuticals, financial services, seafood, smelting, and tourism
Ease-of-doing-business rank	73rd (easy, 2020)[20]
External
Exports	$291.60 billion (2022)[21]
Export goods	Palm oil, Steel, Metal, Machinery and Industrial equipment, Chemicals products, Liquefied natural gas, Textiles products, Footwear products, Automobiles, Transportation products, Wooden products, Plastics
Main export partners	China 23.31%  ASEAN 19.07%  United States 11.75%  European Union 8.16%  Japan 7.70%  India 5.96%  South Korea 3.63%  Hong Kong 3.01% (2021)[21]
Imports	$237.52 billion (2022)[21]
Import goods	Machinery and Industrial equipment, Steel, Foodstuffs, Petroleum products, Electronics, Raw material, Chemicals products, Transportation products
Main import partners	China 32.66%  ASEAN 17.17%  Japan 8.56%  European Union 6.43%  South Korea 5.23%  United States 5.09%  Australia 4.96%  India 3.97% (2021)[21]
FDI stock	$251.5 billion (31 December 2017 est.)[8] Abroad: $20.5 billion (31 December 2017 est.)[8]
Current account	+$3.46 billion (2021 est.)
Gross external debt	397.4 billion (Aug 2022)[22]
Public finances
Public debt	37.0% of GDP (Q1 2022)[23]
Budget balance	−3.29% (of GDP) (2021 est.)[24]
Revenues	$176.6 billion (2022 est.)[25]
Expenses	$207.8 billion (2022 est.)[8]
Credit rating	Japan Credit Rating Agency:[26][27][28] A− (Domestic Currency) BBB+ (Foreign Currency) BBB+ (Bond) Outlook: Stable Standard & Poor's:[29] BBB (Domestic) BBB (Foreign) BBB (T&C Assessment) Outlook: Stable Moody's:[29] Baa2 Outlook: Stable Fitch:[30] BBB (Local Currency) BBB (Foreign Currency) BBB (Country Ceiling) Outlook: Stable
Foreign reserves	$134.0 billion (November 2022)[31]
Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars.

In the aftermath of the 1997 Asian financial crisis, the government took custody of a significant portion of private sector assets through the acquisition of nonperforming bank loans and corporate assets through the debt restructuring process, and the companies in custody were sold for privatization several years later. Since 1999, the economy has recovered. Growth has accelerated to over 4–6% in recent years.[37]

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%.[38][39] Soon after, however, in 2016, India overtook both of them. Later, Indonesia faced a recession in 2020, when the economic growth collapsed to −2.07% due to the COVID-19 pandemic. This was the worst growth since the 1997 crisis.[40]

In 2022, gross domestic product expanded by 5.31%,due to the removal of COVID-19 restrictions as well as record-high exports driven by stronger commodity prices.[41]

Indonesia is predicted to be the 4th largest economy in the world by 2045. Joko Widodo has stated that his cabinet's calculations showed that by 2045, Indonesia will have a population of 309 million people. By Widodo's estimate, there would be economic growth of 5−6% and GDP of US$9.1 trillion. Indonesia's income per capita is expected to reach US$29,000.[42]