Business and Market Overview on Indonesia

OVERALL ECONOMY. Indonesia is a market-based economy but the federal government plays a significant role in the country’s economic climate with 160 government-owned businesses. Indonesia’s GDP per household ranks fifth after Singapore, Brunei, Malaysia and Asia. The Asian economical problems of 1997 adversely afflicted the country economy and businesses and caused spiralling prices of necessities causing in social unrest. Foreseeable future prospects of Indonesia’s overall economy are bright with economical structural reforms in put since the Asian monetary crisis. establishing company in Indonesia

Indonesia’s GDP was US$258. 3 billion with a GDP per household of US$1, 193 in 2004. Indonesia’s real GROSS DOMESTIC PRODUCT grew at an average of 4. 6% each year from 2000 to 2005 driven by domestic intake accounting for practically three-quarters of Indonesia’s GDP. Pumpiing rose from 3. 8% in 2000 to 14. 9% in 2002 but eventually declined to six. 1% by 2004. GROSS DOMESTIC PRODUCT per capita increased from US$801 in 2000 to US$1, 193 in 2005 but unemployment also increased from 6. 1% to 9. 9% throughout the period. 

The manufacturing sector led towards 43. 7% of Indonesia’s GDP in 2005 while the service sector contributed 40. 9%. Although practically 45. 0% of the country’s workforce is involved in agriculture, this sector contributed only 12-15. 4% of the country’s GDP during the period. Major industries include petroleum and gas, textiles, attire, footwear, mining, cement, substance fertilisers, plywood, rubber, food and tourism. Major farming products include rice, side oil, rubber, cacao, nuts, copra and cloves.

POPULATION ANALYSIS. Indonesia comprises practically 18, 000 islands and has the most significant population among the list of Southeast Asian countries with 217 million people in 2005. Main islands are Java accounting for 55% of the population followed by Sumatra (18%), Kalimatan (5%) and Sulawesi (6%). Various other less populated islands include Irian Jaya, Bali and Nusa Tenggara.

Indonesia is a country of diverse ethnic and sub-ethnic areas with different languages and dialects, cultures and foods. The Javanese accounts for 45% of the populace followed by Sundanese (14%) and Madurese (8%) and coastal Malays (8%). Oriental who migrated to Dalam negri during the Dutch colonial time period account for practically 5% of the inhabitants. Islam is the main religion accompanied by Christianity and minority religions include Yoga and Hinduism. The countrywide language is Bahasa Philippines (similar to Malay used in Malaysia, Singapore and Brunei). English is not widely used but many businesses and government representatives dealing with foreign companies and foreigners are progressive in the language.

Extra than half of the citizenry are in the rural areas however the proportion of the downtown population is increasing from 36. 0% in 95 to 45. 0% by 2004. Major cities include Jakarta with a human population of 10 million and then Surabaya, Bandung, Semarang, Yogyakarta, Surakarta, Medan and Padang.
Nearly 25% of the citizenry live below the low income level while another 60 per cent are from the lower income group. The left over 10% belong to the center income and five per cent in the higher income group. Though Indonesia has a relatively small amount of middle to high-income consumers, this means practically 33 million consumers. This kind of is more than Singapore’s 4. 3 million human population with a GDP every capita on par numerous advanced economies of european countries.

INFRASTRUCTURE. Indonesia’s domestic telecommunication system is generally reasonable while the international services can be categorised as good. Internet broadband services are mainly concentrated in the major cities. Highway systems are more developed on Indonesia’s populated island of Java, fairly developed in Sumatra and Sulawesi but poorly developed on the island of Kalimantan. Besides sea ports offering the international shipping lines, Indonesia are also offered by smaller sea slots serving coastal shipping. All of the cities and major cities are linked by flight services.