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Salient Features: Economy transformed from
industry in 1965 to production of steel, aluminum, and
late 1970s. Indonesia exporter of oil; responsible for
percent of total Organization of the Petroleum Exporting
production in 1991. Emphasis in early
less government interference in private business and
technology inputs. Agriculture predominates and benefits
infusion of modern technology by government. Indonesia
recipient. Major trade partners Japan and United States;
ASEAN fellow members increasing.
Gross Domestic Product (GDP): Rp166.3 trillion
(estimated; for value of the
GDP (see Glossary)
annual average growth rate 6 percent in 1985-91.
Agriculture: Declining share (20.6 percent) of
employed majority of workers (55 percent of total labor
1989. Only 10 percent of total land cultivated, another 20
potentially cultivable. Farming by smallholders and on
plantations (estates); cropland watered by flooding, and
burn farming used. Rice dominates production but cassava,
sweet potatoes, vegetables, and fruits important; estate
sugar, coffee, peanuts, soybeans, rubber, oil palm, and
also important. Green Revolution technological advances
increased irrigation improved production in 1970s and
Poverty in rural areas of Java, Bali, and Madura partially
ameliorated with government-sponsored
Transmigration Program (see Glossary)
that moved people to more plentiful farmland in
Outer Islands. Animal husbandry, fishing, and forestry smaller
but valuable parts of agricultural sector.
Industry: Increasing share (37 percent in 1989)
but employed only about 9 percent of the work force in
industries: oil and natural gas processing, cigarette
forestry products, food processing, metal manufactures,
automotive and transportation manufactures, and various
industries. Nearly 50 percent of production in Java, 32
Minerals: Crude petroleum and natural gas
About 70 percent (about 500 million barrels valued at US$6
in 1989) of petroleum exported. World's largest exporter
liquefied natural gas (20.6 million tons valued at US$3.7
in 1990). Also significant reserves of coal, tin, nickel,
gold, and bauxite.
Services: Some 29 percent of GDP projected for
employing about 35 percent of work force in 1989.
service one of fastest growing sources of employment and
educated personnel. Mix of modern government-operated
stable private services, and numerous self-employed
informal, personal services sector. Interisland maritime
transportation crucial; supported by large fleet of
modern boats and ships.
Foreign Trade: Principal export trade with
United States, Republic of Korea (South Korea), and
important commodities crude petroleum and petroleum
natural gas (mostly to Japan), natural rubber, clothing,
plywood also important. About 25 percent of GDP exported
Major imports (37 percent of total) from Japan and the
States, primarily manufactured products. Growth in trade
ASEAN members in 1980s and early 1990s.
Balance of Payments: Positive trade balance
1980s despite oil market collapse. 1990 exports US$26.8
versus US$20.7 billion imports. Foreign debt increasing
(US$1.1 billion in 1989; US$2.4 billion one year later) in
1980s and early 1990s.
Foreign Aid: Traditionally important part of
government budget. From 1967 to 1991, most coordinated
Inter-Governmental Group on Indonesia
and chaired by the Netherlands; since 1992 without
through Consultative Group on Indonesia
(CGI--see Glossary). Major
CGI aid donors (80 percent) Japan,
World Bank (see Glossary), and
Asian Development Bank (see Glossary).
Exchange Rate: Rupiah (Rp). US$1 = Rp2,060
1993), Rp1,998 (January 1992), Rp1,907 (January 1991).
Fiscal Year: April 1-March 31.
Data as of November 1992