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ECONOMY
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Economy
- Overview:
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The
collapse of the rupiah in late 1997 and early 1998 caused GDP
to contract by an estimated 13.7% in 1998 because of Indonesian
firms' reliance on short-term dollar-denominated debt and high
levels of nonperforming loans in the banking sector. The Indonesian
Government initially wavered on meeting the conditions it agreed
to in exchange for a $42 billion IMF assistance package, contributing
to further loss in investor confidence and outflows of capital.
Riots that in many cases targeted ethnic Chinese business owners
also set back chances that Indonesia would quickly stabilize its
financial crisis and contributed to President SOEHARTO's resignation
on 21 May 1998. His successor, B.J. HABIBIE, improved cooperation
with the IMF. The money supply?which expanded rapidly early in
the year to prop up banks hit by deposit runs?was tightened within
a few months, and by October, inflation?which reached a 77% annual
rate?was significantly dampened. The government also announced
a bank recapitalization program in late 1998, but by early 1999
the plan faced growing challenges over its reliance on public
funds. Doubts about whether the program is adequate underlie forecasts
of continued?although much less severe?GDP contraction for 1999.
Signs of spreading unrest and sectarian violence and concern that
social instability will increase as the 7 June 1999 national election
approaches also contribute to pessimism about the economy, particularly
because foreign investors remain reluctant to begin to increase
capital inflows again. The next government will face the challenge
of establishing a macroeconomic policy framework that addresses
longstanding grievances and inequities underlying much of the
current unrest without hampering an economic recovery. |
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GDP:
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purchasing
power parity?$602 billion (1998 est.) |
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GDP
- Real Growth Rate:
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-13.7%
(1998 est.) |
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GDP
- Per Capita:
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purchasing
power parity?$2,830 (1998 est.) |
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GDP
- Composition by Sector:
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agriculture:
18.8%
industry: 40.3%
services: 40.9% (1998 est.) |
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Population
Below Poverty Level:
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32%
(1997 est.) |
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Household
Income or Consumption by Percentage Share:
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lowest
10%: 3.6%
highest 10%: 28.3% (1995) |
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Inflation
Rate :
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77%
(1998 est.) |
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Labor
Force :
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87 million (1997 est.) |
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Labor
Force - by Occupation:
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agriculture
41%, trade, restaurant, and hotel 19.8%, manufacturing 14%, construction
4.8%, transport and communications 4.75%, other 15.65% (1997)
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Unemployment
Rate:
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15%-20%
(1998 est.) |
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Budget:
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revenues:
$35 billion (of which $15 billion is from international financial
institutions)
expenditures: $35 billion, including capital expenditures
of $12 billion (FY98/99 est.) |
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Industries:
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petroleum and natural gas; textiles, apparel, and footwear; mining,
cement, chemical fertilizers, plywood; rubber; food; tourism |
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Industrial
Production Growth Rate:
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-13.7%
(1998 est.) |
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Electricity
- Production:
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66.8 billion kWh (1996) |
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Electricity
- Production by Source:
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fossil
fuel: 82.34%
hydro: 14.97%
nuclear: 0%
other: 2.69% (1996) |
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Electricity
- Consumption:
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66.8 billion kWh (1996) |
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Electricity
- Exports:
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0
kWh (1996) |
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Electricity
- Imports:
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0
kWh (1996) |
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Agriculture
- Products:
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rice,
cassava (tapioca), peanuts, rubber, cocoa, coffee, palm oil, copra;
poultry, beef, pork, eggs |
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Exports:
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$49 billion (f.o.b., 1998 est.) |
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Exports
- Commodities:
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garments 7.9%, textiles 7.3%, gas 6.4%, electrical appliances
5.9%, pulp and paper 5.3%, oil 4.7%, plywood 4.7% |
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Exports
- Partners:
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Japan
18%, EU 15%, US 14%, Singapore 13%, South Korea 5%, Hong Kong
4%, China 3.9%, Taiwan 3.4% (1998 est.) |
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Imports:
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$24
billion (f.o.b., 1998 est.) |
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Imports
-Commodities:
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manufactures 75.3%, raw materials 9.0%, foodstuffs 7.8%, fuels
7.7% |
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Imports
- Partners:
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Japan 20%, US 13%, Germany 9%, Singapore 9%, Australia 6.4%, South
Korea 5.4%, Taiwan 3.4%, China 3.1% (1998 est.) |
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Debt
- External:
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$136
billion (yearend 1997 est.) |
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Economic
Aid - Recipient:
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$43
billion from IMF program and other official external financing
(1997-2000) |
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Currency:
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Indonesian
rupiah (Rp) |
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Exchange
Rates :
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Indonesian
rupiahs (Rp) per US$1?8,714.3 (January 1999), 10,013.6 (1998),
2,909.4 (1997), 2,342.3 (1996), 2,248.6 (1995), 2,160.8 (1994)
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Fiscal
Year :
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1 April?31 March |
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