Indonesia economic analysis
Executive Summary
The following report details our research and results regarding the economic climate of the Republic of Indonesia. Following our recent cultural analysis, we followed the similar practice of finding several sources, extracting the most vital information, and summarizing our findings into a coherent analysis. Ultimately, we feel that this analysis will provide a comprehensive look into Indonesia’s current economic condition, as well as provide insight in the future and direction of the country’s economy. This report will contain an abundance of information regarding the Indonesian economy. More specifically, this report will detail topics such as population, GDP, distribution of wealth, natural resources, principal industries, and several others. Indonesia is a growing global economy. Home to the fourth largest population in the world, Indonesia is a densely populated country. With a large labor force, (42.2 percent of people are 25-54 years old) Indonesia has a plentiful amount of human resources to be able to capitalize on future opportunities. In addition to the abundant labor pool, a moderately high birth rate and lower death rate are attributing to a continuously growing population. In 2012, Indonesia reported GDP of $1.237 trillion USD, and anticipates that that number will grow on average 5.8 - 6.2 percent until 2018. In addition, Indonesia is pursuing fiscally conservative practices which are decreasing the debt-to-GDP ratio, down from 60.5 in 2004 percent to just over 23 percent in 2012. About half of Indonesia’s debt is held externally. Indonesia’s distribution of wealth estimates that 98.7 percent of the population possesses a net wealth of below $100,000 USD; comparable to India, where 99 percent of the population is under the $100,000 USD mark. The average household income in Indonesia falls between $2,100 to $3,000 USD annually. Indonesia’s natural resources have been a catalyst to recent economic growth.
The following report details our research and results regarding the economic climate of the Republic of Indonesia. Following our recent cultural analysis, we followed the similar practice of finding several sources, extracting the most vital information, and summarizing our findings into a coherent analysis. Ultimately, we feel that this analysis will provide a comprehensive look into Indonesia’s current economic condition, as well as provide insight in the future and direction of the country’s economy. This report will contain an abundance of information regarding the Indonesian economy. More specifically, this report will detail topics such as population, GDP, distribution of wealth, natural resources, principal industries, and several others. Indonesia is a growing global economy. Home to the fourth largest population in the world, Indonesia is a densely populated country. With a large labor force, (42.2 percent of people are 25-54 years old) Indonesia has a plentiful amount of human resources to be able to capitalize on future opportunities. In addition to the abundant labor pool, a moderately high birth rate and lower death rate are attributing to a continuously growing population. In 2012, Indonesia reported GDP of $1.237 trillion USD, and anticipates that that number will grow on average 5.8 - 6.2 percent until 2018. In addition, Indonesia is pursuing fiscally conservative practices which are decreasing the debt-to-GDP ratio, down from 60.5 in 2004 percent to just over 23 percent in 2012. About half of Indonesia’s debt is held externally. Indonesia’s distribution of wealth estimates that 98.7 percent of the population possesses a net wealth of below $100,000 USD; comparable to India, where 99 percent of the population is under the $100,000 USD mark. The average household income in Indonesia falls between $2,100 to $3,000 USD annually. Indonesia’s natural resources have been a catalyst to recent economic growth.