Indonesia at a Glance

Rising from the devastation of the 1997/98 financial crisis, Indonesia has successfully established democracy and a robust foundation of economic development over the past decade. Economic growth rate is projected to increase gradually from 6.5 percent in 2011 (6.23 percent in 2012), rising to 7.0-7.7 percent by 2030, when this country is projected to become one of the world's top seven economies.

Indonesia's steady economic growth thus far has been propped up by the country's robust domestic demand, which accounts for more than 60 percent of the economy. Over the next decade or so, the Indonesian economy will also benefit greatly from the government's massive infrastructure projects, many of which will be pursued under public private partnership scheme.

Investment, particularly foreign direct investment, has been booming in Indonesia. Data from the Investment Coordinating Board (BKPM) show that realised foreign (PMA) and domestic (PMDN) investments in 2013 amounted to Rp 398.6 trillion (US$ 33 billion), up 27 percent from 2012's Rp 251.3 trillion. Of the 2012 figure, foreign investments accounted for 67.8 percent.

  • World’s fourth most populous country, with young demography and rapidly growing middle class – large open market potential and improving competitiveness of its manpower;
  • World’s largest archipelago, 13,500+ islands – huge development potential of infrastructure, transportation and logistics;
  • World’s third largest democracy – the prevailing balance of power between the state and civil society nourishes dynamic stability;
  • Indonesia's 2013 GDP is valued at Rp 9.084 trillion (US$ 870.27 billion) in 2013, proclaiming the country to be the largest economy in Southeast Asia, with large pockets of high net-worth consumers;
  • The World Economic Forum has ranked Indonesia 25th out of 139 countries for macroeconomic stability in 2012, up sharply from 89th in 2007. For comparison, Brazil is ranked 62nd and India is at 99th.
  • Long tradition of open capital account (since 1970) and full currency convertibility;
  • Large natural resources endowments – offering long-term business potential and raw material self sufficiency. Indonesia today is the world's largest producer of CPO and largest exporter of thermal coal; and
  • Geo-political importance – bestowing comparative advantage in terms of connectivity with other parts of the world.
  • Strong economic management creating a stable macroeconomic environment and increasingly a pro-investment regime.
  • The government's Master Plan for the Acceleration and Expansion of Indonesian Economic Development (MP3EI) 2011-2025, envisages massive investments totalling Rp 4,000 trillion (US$ 420 billion), with US$ 186.7 billion to be for infrastructure projects.