Overview: Indonesia has extensive natural wealth but, with a large and rapidly increasing population, it remains a relatively poor country. GNP growth rates during the period 1985-87 were in the 2-3% range. Estimates show that the economy must grow at a 4-5% annual rate to absorb the nearly 2 million workers annually entering the labor force. Agriculture, including forestry and fishing, is the most important sector, accounting for 25% of GDP and over 50% of the labor force. The staple crop is rice. Once the world's largest rice importer, Indonesia is now nearly self-sufficient. Plantation crops--rubber and palm oil--are being encouraged for both export and job generation. The diverse natural resources include crude oil, natural gas, timber, metals, and coal. Of these, the oil sector dominates the external economy, generating more than 60% of the government's revenues and over 50% of export earnings in 1987.

GNP: $69.0 billion, per capita $880; real growth rate 3.8% (1987)

Inflation rate (consumer prices): 9.3% (1987)

Unemployment rate: 2.95% (1988)

Budget: revenues $10.5 billion; expenditures $13.9 billion, including capital expenditures of $4.7 billion (FY88)

Exports: $16.5 billion (f.o.b., FY88); @m5commodities--petroleum and liquefied natural gas 55%, timber 10%, coffee 6%, rubber 5% (1986); @m5partners--Japan 45%, US 20%, Singapore 8%, EC 3% (1986)

Imports: $11.2 billion (f.o.b., FY88); @m5commodities--machinery 25%, chemical products 23%, base metals 12%, transport equipment 12%, food, beverages, and tobacco 9%, textiles 5%, paper and printed matter 3% (1986); @m5partners--Japan 29%, US 14%, EC 13%, Singapore 9%, Saudi Arabia 6%, (1986)

External debt: $51.5 billion, medium and long-term debt (1988)

Industrial production: growth rate 6.8% (1986)

Electricity: 11,000,000 kW capacity; 36,500 million kWh produced, 200 kWh per capita (1988)

Industries: petroleum, textiles, mining, cement, chemical fertilizer production, timber, food, rubber

Agriculture: subsistence food production; small-holder and plantation production for export; rice, cassava, peanuts, rubber, cocoa, coffee, copra, other tropical products; an illegal producer of cannabis for the international drug trade

Aid: NA

Currency: Indonesian rupiah (plural--rupiahs); 1 Indonesian rupiah (Rp) = 100 sen (sen no longer used)

Exchange rates: Indonesian rupiahs (Rp) per US$1--1,735.7 (January 1989), 1,685.7 (1988), 1,643.8 (1987), 1,282.6 (1986), 1,110.6 (1985)

Fiscal year: 1 April-31 March

NOTE: The information regarding Indonesia on this page is re-published from the 1989 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Indonesia Economy 1989 information contained here. All suggestions for corrections of any errors about Indonesia Economy 1989 should be addressed to the CIA.