Date: Wed, 31 Dec 1997 21:19:14 GMT Server: NCSA/1.5.2 Last-modified: Sat, 30 Aug 1997 20:20:21 GMT Content-type: text/html Content-length: 7231 Indonesia Country Background





Indonesia Background



Population
200 million, expected to be 235 million in 2010. 4th most populous nation after China, India, USA.
Independence
17 August 1945
Currency
Rupiah (US$1 = Rp 2,380 March 1997)
GDP (1994 prices)
Rp 357 trillion (US$165 billion - largest among ASEAN). US$855 per capita.
Major Exports
Oil and oil products, liquefied natural gas, timber, rubber, textiles, garments, footwear, electrical appliances and handicrafts.
Major Imports
Capital equipment, oil and oil products, chemical products base metals, food, beverages and tobacco.
Major Trading Partners
Japan, USA, Singapore, South Korea, Australia
Background
During the first two decades since its independence in 1945, Indonesia did not experience rapid progress in its economic development. In contrast, during President Soeharto's New Order (Orde Baru), the country has made significant strides in raising agricultural and industrial output and developing its economic infrastructure. President Soeharto came to power in 1966 and has been subsequently re-elected five times. He was last re-elected in 1993 and his current term expires in 1998.
Government
Indonesia is a unitary state in the form of a republic with its executive power vested in the President. Under the 1945 Constitution, the President and Vice-President are elected by the People's Consultative Assembly (MPR). The MPR is the highest, governing body in the nation and meets at least once every five years. The Constitution also provides for the establishment of the House of People's Representatives (DPR), which meets annually and serves as Indonesia's parliament, The Constitution also Provides for the establishment of a Supreme Court based in Jakarta. Indonesia is divided into 27 provinces, including the special districts of Jakarta, Surabaya, and Yogyakarta. Provincial governors are appointed by the President from among candidates recommended by the provincial House of People's Representatives.
Economy
During the past five years, real economic growth has been averaging at about 7%. Under the 1994-99 Five Year Plan, the target growth rate per annum is 6.2%. However, at the independence day speech on 16 August 1995 marking Indonesia's independence day - its 50th - President Soeharto raised the growth target to 7.1%. The aim is to raise per capita income to US$1,280 in 1999. Most analysts agree that annual growth rates of between 5%-6% are feasible up to 2000. The Economist Intelligence Unit has forecasted chat Indonesia's 1995 & 1996 economic growth will be 7.3 and 7.1 respectively. On a sectorial basis, the Indonesian manufacturing sector has increased in prominence compared with the other sectors. This is a result of the government's continuing re-structuring of the economy towards greater diversity with an emphasis on industrialization, while maintaining agriculture - which absorbs a large portion of the labor force - as a significant sector. During the current Five Year Plan (Repeltia VI), the biggest growth areas each year are expected to be in the manufacturing (9.40/b), services (6.0~o), and agricultural (3.4%) sectors. By 1999, the manufacturing sector is expected to account for 24% of GDP.



Return to Top Page