Indonesia's Economy
 Web Page by Amanda Glantz, Dawn Belden, and 
Justin Dowlatshahi
 
 
 

See our Bibliography here
 

This web page highlights the economy of Indonesia.  The information based on this web page includes types of employment available, the gross domestic product (GDP) and the GDP per capita of Indonesia, which is also compared to the GDP and GDP per capita of the United States.  Indonesia’s major resources, major imports and exports, types of transportation, and Indonesia’s level of technology, which will also be compared to that of the United States’.  Indonesia has extensive natural wealth, yet, with a large and rapidly increasing population, it remains a poor country.
 
 
 
 
 
 
 
 

This is the beautiful capital city of Indonesia, Jakarta. Indonesia is one of the most populated countries in the world. 
 
 
 
 
 
Economy

Gross Domestic Product (GDP) - 610 billion dollars
Gross Domestic Product per capita (GDP/capita) - 2,800 dollars
Compared to the United States, Indonesia is kind of small.  The United States’ GDP is 8.511 trillion dollars, compared to Indonesia’s GDP of 610 billion dollars.  The United States’ GDP per capita is 31,500 dollars, where as Indonesia’s GDP per capita is only 2,800 dollars.  As you can see the United States is a much more wealthier country than Indonesia.  Government figures indicate 130 million people were at poverty levels by 1999, compared with 80 million people in 1997.  The economy lessened by fifteen percent before experiencing good growth in 1999.  A forty-one billion dollar International Monetary Fund rescue package is helping to keep the economy going, along with a new Social Security Net Program.  As you can see the average people of Indonesia are more poor than rich, especially when compared to the people living in the United States.
 
 
 
 
Resources

Natural resources - oil, natural gas, timber, rubber, coffee, tea, tobacco, tin, nickel, copper, and fish
Primary Crops - rice, rubber, soybeans, copra, tea, cassava, palm oil, coffee, cloves, coconut, corn, fruit, spices, sweet potatoes, and peanuts
Major Imports - machinery and equipment, chemicals, fuels, and foodstuffs
Major Exports - petroleum, liquid natural gas, oil, plywood, textiles, rubber, coffee, palm oil, pepper, tea, cocoa, spices, sugar cane, and coconut.
These are very important to Indonesia because they help it contribute to the world economy which then allows them to be apart of it, as well as receive some help from other countries.
 
 
 
 
 
 
 
 
Due to the presence of valuable minerals, especially tin and petroleum, mining is an important industry in Indonesia. Some Indonesians are involved in small-scale forms of mineral extraction, such as traditional diamond mining. Here on the island of Borneo, miners wash gravel excavated from nearby pits and then examine the sifted soil with large, conical containers to locate raw diamonds and gemstones. 
 
 
 
 
 
 
 
 
 
 
 Transportation
 

Transportation is difficult in much of Indonesia because of the thick forests and rugged mountains, and the wide stretches of sea that separates the islands.  Less than one percent of all Indonesians own an automobile.  Buses and six- to eight-seat vehicles called bemos pick up and let off passengers along most roads.  Government-owned bus companies and privately owned taxis and minibuses provide transit services in the larger cities.  On some of the islands, traffic must travel along jungle tracks or by riverboat.  Railroads, which are owned by the government, operate in some cities throughout Indonesia.  Boats also carry passengers along the coasts and between islands.  There are two government-owned airlines that provide international and domestic air service.  So public transportation include trains, taxis, buses, and pedicabs.  Ojeks are motorbikes that transport passengers on a rear seat, and becaks are three-wheeled pedicabs.  However, middle class Indonesians have private cars.
 
 
 
 
 
 
 
 
Indonesia's hot, humid climate and rich volcanic soil support many agricultural products. Here, farmers on Bali, an island in the republic, have terraced hillsides to cultivate rice.
 
 
 
 
 
 
 
 
 Technology
 
 

The general level of technology of Indonesia as compared to the United States is fairly low.  Medical facilities, for example, are best in urban areas, although rural clinics have been improving.  Even though most infants are immunized, malnutrition, lack of extensive prenatal care, and poor sanitation continue to affect Indonesia’s people.  Also, their technology in transportation and communication areas still fall below those of the United States.  Only the middle-class have cars, and the roads outside urban areas are in poor condition making traffic jams accidents commonplace.  Phones are uncommon in rural areas, and the country has only five television stations of which four are privately owned.
 
 
 
 
 
 
 
 
 
 
 
More than half of all Indonesians hold jobs associated with agriculture. Rice, the principal food in the country, once was imported but now is raised in sufficient quantities to meet domestic needs. Here, villagers on the island of Bali thresh rice grain by hand during harvest season.
 
 
 
 
 
 Occupations
 
         
Jobs in Indonesia # of workers % of all workers 
Agriculture, forestry, & fishing 37,720,000 44%
Trade, restaurants, & hotels 16,103,000 19%
Community, government, &                
 personal services
11,729,000 13%
Manufacturing 10,773,000 13% 
Transportation &            
Communication 
3,943,000 5% 
Construction 3,796,000 4% 
Mining  774,000 1%
Finance, insurance, & real estate  690,000  1%
Utilities 164,000 less than 1% 
 

          
 
 
 
 
 
 
 
 
 
 

Three Links

1. http://www.encarta.msn.com
2. http://cia.gov
3. http://school.discovery.com/homeworkhelp/worldbook/atozgeography/i/275460.html
 
 
 
 

Bibliography

1. The World Encyclopedia of People and Places. Chicago: World Book, Inc., 1998.

2. "Indonesia." National Geographic. March, 2001:

3. "Economy of Indonesia" {Online} Available http://motherearthtravel.com/indonesia/economy.htm May 26, 2001.

4. "Indonesia." Encarta Encyclopedia. CD-ROM, 2000 edition.

5. "Economy" {Online} Available http://school.discovery.com/homeworkhelp/worldbook/atozgeography/i/275460.html May 27, 2001.

6. "Economy of Indonesia" {Online} Available http://home.talkcity.com/MinivanAve/agustine/indonesia/economy.html May 26, 2001.

7. "Indonesia" {Online} Available http://www.encarta.msn.com May 26, 2001.