indonessia emerging economy
Post on 25-May-2015
112 Views
Preview:
DESCRIPTION
TRANSCRIPT
Indonesia (An Emerging Economy)
Indonesia Export Commodi1es • Oil and gas • Electrical appliances • Plywood • Tex;les • Rubber
Indonesia Import Commodi1es • Machinery and equipment • Chemicals • Fuels • Foodstuffs
Indonesia:
Macro economic view of Indonesia
Introduc;on
It is an archipelago with over 238 million people, and is world’s 4th most populous na;on. Ø Indonesia currently targets a 2012 budget deficit of 190.1 trillion rupiah, on capital spending of 168.8 trillion rupiah Ø As exports have fallen in the current slowdown of world economy, the main thrust of Indonesian government is to boost domes;c consump;on and investment. Ø Southeast Asia's largest economy may expand at the lower range of Bank of Indonesia's forecast of about 6.3 per cent to 6.7 per cent in 2012 Ø Investment and domes;c consump;on in Indonesia contributed 87% to the country’s growth in the 1st quarter of 2012. Ø Standard & Poor's kept Indonesia's ra;ng unchanged at BB+
Period of 1961 - 1970
Ø initiation of Indonesian independence Ø huge chaos of social and politics Ø economic only grew on average 3,94%, even in 1963 touched minus 2,24% Ø inflation rate on average touched the highest point (194,02 %)
Period of 1971 - 1997
Ø government concentrated to improve people welfare through economic development by recovering economy, social, and poli;c situa;on Ø increase economy rate of growth to 7, 44 % in 1971-‐1981, 5, 51 % in 1981-‐1990; and 6, 88 % in 1990-‐1997 respec;vely Ø great revenues from oil export when oil boom/ oil crises occurred
Period of 1998 - 2007
Ø faced a big economic turbulence that trigger economic crisis Ø Indonesian currency was pushed down with exchange value above 10.000 per US$. Ø The GDP growth in 1998 went down to minus 13, 31%, substan;ally lower than the average growth rate in 1960-‐1971
Period of2008 - 2010
Ø GDP growth rate in 2008 increased to 6,01 Ø GDP growth rate recovered significantly to 6, 10 % in 2010 Ø infla;on rate was not too high
In this period Indonesia established reformation and economic stabilization program strictly to raise the GDP growth rate.
The biggest contribution was from manufacturing industry with average contribution around 27,4 %
Ø GDP growth in Indonesia continued to grow significantly, although a few years ago, suffering from shock (negative growth of GDP). This is evidenced by increasing the real value of Indonesia's GDP from year to year Ø Inflation rate in Indonesia despite fluctuating but it is still maintained and quite well controlled by government to support good economic performance. This can be seen from the exchange rate and prices of goods remained stable in recent years
Ø Corrup;on. Though figure of Indonesia in the corrup;on percep;on index has improved from 2.8 in 2010 to 3.0 in 2011, much s;ll need to be done. Ø Unemployment rate is still quite high, although there is a tendency to decline in the last 5 years. Work participation rate is still pretty good (above 60%), and the employment rate has reached above 90% of the total labor force. Ø Domestic consumption and exports remains the largest contributor to Indonesia's GDP and this needs to be improved, particularly for domestic consumption. As we know, high domestic consumption is quite good in warding off the economic crisis because national economy is not too dependent on the influence of foreign markets
Challenges:
Ø GDP growth in Indonesia continued to grow significantly, although a few years ago, suffering from shock (negative growth of GDP). This is evidenced by increasing the real value of Indonesia's GDP from year to year Ø Inflation rate in Indonesia despite fluctuating but it is still maintained and quite well controlled by government to support good economic performance. This can be seen from the exchange rate and prices of goods remained stable in recent years
Conclusion
top related