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Indonesia Indonesia

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Indonesia – Quick View
ECR score58.27 (Mar 2011)
ECR rank53 (Mar 2011)
Economic
GDP (2009)USD 541.78 billion
GNI per capita PPP (2010)USD 3,957
FDI inflow (Q3 2010)USD 3,368 million
Inflation (January 2011)7.02%
Central bank assets (2009)USD 88,394.90 million
Unemployment rate (August 2010)7.14%
Government surplus (2010)USD 22.91 billion
Tax revenue (2010)USD 81.50 billion
Political
Government typeRepublic
Recent political crisisNA
Economic freedom score (2011)116th
Freedom of information score (2010)117th
Corruption perception index (2010)110th
Structural
Birth rate (2008)19 per '000
Population balance (2009)Under 14 years - 27%
Population balance (2009)Above 60 males - 7.9%
Population balance (2009)Above 60 females - 9.7%
Life expectancy years (2008)Male - 69 years
Life expectancy years (2008)Female - 73 years
Mortality rate (2008)206 per '000
Literacy rate (2006)92%
Internet access (2009)12.3%

[Top] Economic Overview

Gross Domestic Product (GDP)

 

The GDP in the third quarter of 2010 amounted to IDR 1,654,480 billion, as compared to IDR 1,459,802 in the corresponding quarter of 2009. In 2009, Indonesia reported a GDP of IDR 5,613,441 billion, growing 13.37% compared to 2008. While per capita GDP was IDR 24,261,805 for the same year. Manufacturing sector contributed 26.38% to the overall GDP of the country.

 

(Source: Central Bank, Statistics Indonesia)

 

Indonesia GDP and GDP growth rate

 (Source: Central Bank )

Gross National Income (GNI) at Purchasing Power Parity (PPP)

 

In 2010, GNI per capita at PPP of the country was USD 3,957.

 

Indonesia GNI per capita at PPP

 (Source: UNDP)

Income tax rate

 

In Indonesia, income tax on individuals is levied from 5% to 30%, amongst four income slabs. A minimum tax of 5% has to be paid by individuals generating income.

(Source: BKPM)

Income tax rates for individuals

Income slabs (IDR million)

Tax rate (%)

0-50

5

51-250

15

251-500

25

501 and above

30

 

(Source: BKPM)

Corporate tax rate

 

From the year 2010, Indonesia levies corporate tax at the rate of 25%. Any company having a gross turnover not more than IDR 50,000 million gets a deduction of 50% from the  normal tax rate charged.

(Source: BKPM)

Inflation rate

 

In January 2011, the inflation rate reached 7.02%, increasing 3.3% over January 2010.

Indonesia Inflation rate

 

(Source: Central Bank)

Foreign Direct Investment (FDI)

 

In the third quarter of 2010, total FDI inflow for Indonesia amounted to USD 3,368 million, of which the manufacturing sector attracted an investment of USD 1,089 million.

(Source: Central Bank)

Indonesia FDI inflow

(Source: Central Bank)

Central bank assets


As of December 2009, assets of Bank Indonesia (Central Bank) stood at IDR 915,875,376 million, of which 58.78% were marketable securities.

(Source: Central Bank)

[Top] Financial Indicators & Government Financial

Consumer Price Index (CPI)


In December 2010, the composite CPI was 125.17 points, increasing 6.96% from December 2009.

 

Indonesia Consumer Price Index

(Source: Central Bank )

 

Base year: 2007=100

 

Wholesale Price Index (WPI)

 

 

In November 2010, the composite WPI was 174 points, increasing 5.45% from November 2009.

(Source: Central Bank)

Indonesia WPI

(Source: Central Bank )

Interest rates

 

As of December 2010, the interest rate on time deposits was at an average of 7.55% for a 6 month period, while on saving deposits it was 3.92%.

 

Interest Rates - December 2010 (% per annum)

Type of Banks

Time Deposits

Saving Deposits

1 month

3 months

6 months

12 months

24 months

State Banks

6.48

6.73

6.55

6.93

7.66

2.65

Regional Government Banks

8.07

8.59

9.99

12.07

7.73

2.65

Private National Banks

6.94

7.06

7.06

6.83

9.19

3.13

Foreign Banks and Joint Banks

7.69

7.16

6.97

6.81

4.04

3.84

Commercial Banks

6.83

7.06

7.20

7.88

8.11

3.92

 

(Source: Central Bank)

Money supply


Money supply in Indonesia is classified into broad money (M1) and narrow money (M2).


M1 includes:

  • Currency in circulation

  • Demand deposits

M2 includes M1 and:

  • Quasi money (time and saving deposits)

  • Securities (other than shares)

 

(Source: Central Bank)


Money Supply (IDR billion)

Month

M1

M2

2010 (Till November)

571,352

2,346,801

2009

515,824

2,141,384

2008

456,787

1,895,839

2007

450,055

1,649,662

2006

347,013

1,382,493

2005

271,140

1,202,762

2004

245,946

1,033,877

2003

213,784

944,366

 (Source: CBS)

Government expenditure

 

During 2010, total government expenditures amounted to IDR 781,534 billion.

 (Source: CBS)

Indonesia Government expenditure

(Source: Central Bank)

 

Official exchange rate

 

As of December 31, 2010, exchange rate of IDR against US Dollar (USD) is IDR 8,946 and against Great Britain Pound (GBP) is IDR 13,823.36.

 (Source: Central Bank)

Official Exchange Rates

 

Year

USD

GBP

 

Sell

Buy

Sell

Buy

2010

9,036

8,946

13,964.23

13,823.36

2009

9,447

9,353

15,191.72

15,036.82

2008

11,005

10,895

15,884.62

15,720.40

2007

9,466

9,372

18,899.82

18,708.39

2006

9,065

8,975

17,787.34

17,606.26

2005

9,879

9,781

17,033.37

16,860.49

2004

9,336

9,244

17,982.07

17,794.70

2003

8,507

8,423

15,154.37

14,997.99

           

(Source: Central Bank)

Government finances

 

Sovereign debt dynamics

 

 

Government revenue

 

In 2010, Indonesia reported a total Government revenue of IDR 990,502 billion. Compared to 2009, total Government revenue grew by 16.93% in 2010, whereas total Government expenditure increased by 24.29%. 

 

(Source: CBS)

 

Revenue (IDR billion)

 

2010

2009

2008

2007

Tax Revenues

743,326

619,922

658,701

490,988

Non-Tax Revenue

247,176

227,174

320,604

215,120

Total Revenue

990,502

847,096

979,305

706,108

 

(Source: CBS)

 

Fiscal balance

 

In 2010, the government account showed a fiscal surplus of IDR 208,968 billion, decreasing by 4.27% from 2009.

 

(Source: CBS, CBS)

 

Tax revenue

 

In 2010, the government reported a total tax revenue of IDR 743,326 billion, of this income tax accounted for 48.73%. 

(Source: CBS)

Tax Revenue (IDR billion)

 

2010

2009

2008

2007

Tax Revenues

743,326

619,922

658,701

490,988

Domestic Tax

720,765

601,252

622,359

470,052

Income Tax

362,219

317,615

327,498

238,431

Value Added Tax

262,963

193,067

209,647

154,527

Land and Building Tax

25,319

24,270

25,354

23,724

Customs Acquisition Rights to Land and Building

7,156

6,465

5,573

5,953

Excise

59,266

56,719

51,252

44,679

Other Taxes

3,842

3,116

3,035

2,738

Taxes on International Trade

22,561

18,670

36,342

20,936

Import Duties

17,107

18,105

22,764

16,699

Export Tax

5,454

565

13,578

4,237

 (Source: CBS)

Current account balance

 

In Q3 2010, the current account was a surplus of USD 1,308 million.

Indonesia Current account balance

 (Source: Central Bank)

Balance of payments

 

The overall balance of payments in the third quarter of 2010 amounted to USD 6,955 million, compared to USD 3,546 million in the corresponding quarter of 2009.

 

Balance of Payments (USD million)

Particulars

2010 Q3

2010 Q2

2010 Q1

2009 Q4

2009 Q3

Current Account (Net)

1,308

1,804

2,007

3,610

2,146

Capital and Financial Account

6,477

4,370

4,829

1,270

2,507

Total

7,785

6,174

6,836

4,879

4,654

Net Errors and Omissions

-830

-753

-215

-926

-1,108

Overall Balance

6,955

5,421

6,621

3,954

3,546

(Source: Central Bank)

[Top] Labour Force and Employment Overview

Labour force

 

As of August 2010, Indonesia had a total labour force of 116.53 million. During the same period, the labour force participation rate (LFPR) was 67.72%.

(Source: CBS)

Labour statistics (age over 15 years)

Status

2010

2009

2008

Labour force

116,527,546

113,833,280

111,947,265

Working

108,207,767

104,870,663

102,552,750

Unemployed

8,319,779

8,962,617

9,394,515

Not in labour force

55,542,793

55,494,928

54,693,785

(Source: CBS)

Unemployment rate

 

As of August 2010, the country’s unemployment rate was 7.14%, as compared to 7.87% in August 2009. The unemployment rate was highest in November 2005 at 11.24%, but since then the rate has been on the decline.

(Source: CBS)

Indonesia Unemployment rate

(Source: CBS)

Minimum wage

 

As of September 2009, average monthly wage of industry workers below supervisory level was IDR 248,897. The wage rate is highest in the metal industry.

(Source: CBS)

Average monthly wage in industries (below supervisory level)

Month

Average Wage (IDR)

2009

September

248,897*

June

244,329*

March

242,487*

2008

December

238,708*

September

241,047*

June

248,383*

March

259,286

2007

December

257,583

September

254,268

June

257,015

March

258,081

 

*preliminary figures

(Source: CBS)

Level of unionisation

 

In Indonesia, about 40% of the total labour force are members of trade unions. All Indonesia Workers Union, officially known as Serikat Perburuhan Seluruh Indonesia (SPSI), is a recognised workers’ union in the country.

(Source: PBI)

[Top] Political Stability

Indonesia is a democratic republic form of government. The President heads the country and also has executive powers.

 

(Source: MFA)

 

The legislative powers of the country are exercised by the People's Consultative Assembly or the Majelis Permusyawaratan Rakyat. The People's Consultative Assembly comprises of two lower houses - the People's Representative Council (PRC) and the Regional Representatives Council (RRC). There are 550 members in the PRC and 168 members in the RRC, elected for a term of five years.

(Source: MFA)

As of 2009, there are 34 national political parties and six other local parties in Indonesia. Partai Demokrasi Indonesia Perjuangan (PDIP), Partai Demokrat (PD), Partai Golkar and Partai Keadilan Sejahtera (PKS) are a few of the major political parties in Indonesia.

(Source: aceproject.org)

Regulatory environment

 

Indonesiais ranked 116th in the 2011 Index of Economic Freedom, with an economic freedom score of the country is 56.0 (out of 100), indicating a rise of 0.5 points from previous year.

Indonesia Economic freedom score (Source: heritage.org)

 

Corruption Perception

 

Indonesia is ranked 110th on the world’s Corruption Perceptions Index 2010, sharing this rank with Bolivia, Benin, Gabon, Kosovo and Solomon Islands. The country scores 2.8 (out of 10), indicating that it is amongst the most corrupt nations in the world.

(Source: transperancy.org)

Freedom of information

 

The country is ranked 117th on the Press Freedom Index 2010.

 

(Source: rsf.org)

 

According to the Press Act 1999, the country safeguards the freedom of press. The freedom of information to citizens is protected by the Indonesian Freedom of Information Law 2008.

(Source: IFEX, thejakartapost.com)

There are more than 35 newspapers in Indonesia. The majority of the newspapers are in Indonesian, some in English and one in Chinese. Some of the major national newspapers are Bola, Jawa Pos, Kompas, Pos Kota, Republika, Suara Karya and Suara Pembaruan.

(Source: mondonewspapers.com, newspapers24.com)

Judicial system


The judicial system operates as an independent division of the government. There are many types of courts in the country for different subject matters:

  • Supreme Court: the highest authority of jurisdiction

  • High Court: resolves civil disputes if not solved by the state courts

  • State Court: handles civil disputes

  • Commercial Court: makes decision on bankruptcy and insolvency matters

  • State Administrative Court: decide over administrative law cases filed against the government

  • Constitutional Court: handles disputes related to the constitution

  • Religious Court: solves certain religion-related matters

(Source: MFA)

[Top] Demographic Overview

Indonesia has a population of 237,556,363 (2010), of which 50.31% are males. DKI Jakarta is the most densely populated province of the country with 14,440 people residing per square kilometre.

(Source: CBS)

In 2010, the population of the country recorded a growth of 15.17%, as compared to the year 2000. The following graph shows the growth of population over the past decades:

(Source: CBS)

In 2009, about 27% of the total population were between the age group of 0 to 14 years. During the same year, the proportion of males and females above 60 years of age were 7.9% and 9.7% respectively.

(Source: UN)

Birth and death rate

 In 2008, birth rate in Indonesia was recorded at 19 births per 1,000 persons. Furthermore, the death rate during the same period was 206 deaths per 1,000 persons.

(Source: World Bank, WHO)

Infant mortality rate

Infant mortality rate in 2008 was recorded at 31 deaths per 1,000 live births.

(Source: WHO)

Life expectancy

In 2008, life expectancy at the time of birth was 69 years in case of males and 73 years in case of females.

(Source: World Bank)

Migration and urbanisation

In mid-2010, the country’s international migrant stock was 122,900 or 0.1% of the total population.

(Source: UN)

In 2007, about 50.4% of the total population resided in urban areas.

(Source: UN)

Ethnic environment

Indonesia comprises of two major ethnic groups – Malay and Papuan. Apart from these, other ethnicities include, Javanese, Sundanese, Batak.  Additonally, a small population of Chinese, Indian and Arabian people are also found in the country.

(Source: MFA)

Religion-wise, about 85.2% of the population in Indonesia follow Islam.

(Source: MFA)

Human Development Index (HDI)

Indonesia is ranked 108th on HDI based on factors like health, education, income, inequality, poverty, gender, etc. These indices are prepared by United Nations Development Programme.

(Source: UNDP)

[Top] Soft Infrastructure

Literacy rate

 

As of 2006, Indonesia’s adult literacy rate (for people above 15 years of age) was estimated at 92%.

(Source: UNDP)

Education

 

The country has a multi-level system of education.

 

(Source: MONE)

 

Early childhood comprises of playgroups and kindergarten schools.

Basic education generally starts from the age of 6 and includes primary and junior secondary schools.

Secondary education includes general secondary and vocational secondary education.

Higher education is comprised of bachelor, masters and diploma courses. Specialised post-graduation and doctorate programmes are also carried under higher education.

 

(Source: MONE)


As of 2008, the country had 312,057 schools and institutions, of which 165,755 were primary schools. 

(Source: MONE)

Indonesia School and institutions

(Source: MONE )

Healthcare

 

In 2007, Indonesia had 1,319 general and special hospitals, of which 652 were privately owned. The number of hospital beds was 142,707 during the same year, at a ratio of 63.25 per 100,000 persons.

(Source: Ministry of Health)

The following table shows growth in number of hospitals in the country during 2005-2007:

 

Managed / Owned by

2007

2006

2005

Health department

31

31

31

Province / District / City Government

446

433

421

Military / Police

112

112

112

SOE / other departments

78

78

78

Private

652

638

626

Total

1,319

1,292

1,268

(Source: Ministry of Health)

In 2007, total health expenditure (public and private) accounted to 2.2% of GDP.

(Source: World Bank)

[Top] Hard Infrastructure

Mass public Ttansit

 

 

In Indonesia, road provides the primary mode of transportation, with about 82% of the people preferring road transport over all other modes.

(Source: World Bank)

Roads

 

As of 2008, the total length of roads in Indonesia was 437,759 kilometres, of this, 258,744 kilometres were asphalted roads.

(Source: CBS)

Railways

 

In Indonesia, railways are mainly operated in the provinces of Java and Sumatra by PT Kereta Api Indonesia, a government-owned company. There are four rail networks in the country – a large rail network in Java and three small and unconnected networks in Sumatra. In 2008, total railway length together in both provinces was 4,780.59 kilometres.

(Source: kereta-api.co.id)

Ports

 

The country has about 300 sea ports, of which, Jakarta, Surabaya, Belawan and Tanjung Pandan are the largest ports. Some other important ports in the country are Semarang, Cirebon, Panjang, Balikpapan, Banjarmasin, Samarinda, Bitung, Ambon and Sorong.

(Source: World Bank)

The port of Jakarta has 16,800 square meters of wharves, 76 berths and a cargo storage area of 401,200 tonnes capacity.

(Source: worldportsource.com)

Airports

 

Indonesia has more than 190 airports. Soekarno-Hatta International Airport is the biggest airport in the country and is located in Jakarta, the capital city. Other major airports include Juanda, Hang Nadim, Frans Kaisiepo, Bali International, and El Tari.

(Source: Ministry of Transportation, aircraft-charter-world.com)

Telecommunications

 

Total internet penetration rate in 2010 was 12.3%, as compared to 12.5% in 2009.

(Source: internetworldstats.com)

In 2009, there were 33.96 million fixed telephone line subscribers, and 159.25 million mobile subscribers. During the same period, the country had 1.7 million fixed broadband subscribers.

(Source: itu.int,)

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