Indonesia/Economy

Economy - overview: The Indonesian economy stabilized in 1999, following the sharp contraction and high inflation of 1998. By following tight monetary policy, the government reduced inflation from over 70% in 1998 to 2% in 1999. Although interest rates spiked as high as 70% in response to the monetary contraction, they fell rapidly to the 10% to 15% range. The economy stopped its free-fall as GDP showed some growth in the second half of 1999, although GDP for the year as a whole showed no growth. The government managed to recapitalize a handful of private banks and has begun recapitalizing the state-owned banking sector. New lending, however, remains almost unavailable as banks continue to be wary of issuing new debt in an environment where little progress has been made in restructuring the huge burden of outstanding debts. IMF payments were suspended late in 1999 as the result of evidence that a private bank had illegally funneled payments it received from the government to one of the political parties. The government has forecast growth of 3.8% for FY00/01. The spread of sectarian violence and continuing dissatisfaction with the pace of bank and debt restructuring will make it difficult for Indonesia to attract the private investment necessary to achieve this goal.

GDP: purchasing power parity - $610 billion (1999 est.)

GDP - real growth rate: 0% (1999 est.)

GDP - per capita: purchasing power parity - $2,800 (1999 est.)

GDP - composition by sector:
agriculture: 21%
industry: 35%
services: 44% (1999 est.)

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: 3.6%
highest 10%: 30.3% (1996)

Inflation rate (consumer prices): 2% (1999 est.)

Labor force: 88 million (1998)

Labor force - by occupation: agriculture 45%, trade, restaurant, and hotel 19%, manufacturing 11%, transport and communications 5%, construction 4% (1998)

Unemployment rate: 15%-20% (1998 est.)

Budget:
revenues: $25.4 billion (of which $6 billion is from international financial institutions)
expenditures: $25.4 billion, including capital expenditures of $NA (FY99/00 est.)

Industries: petroleum and natural gas; textiles?, apparel, and footwear; mining, cement, chemical fertilizer?s, plywood?; rubber?; food; tourism

Industrial production growth rate: 1.5% (1999 est.)

Electricity - production: 73.13 billion kWh (1998)

Electricity - production by source:
fossil fuel: 88.19%
hydro: 8.39%
nuclear: 0%
other: 3.42% (1998)

Electricity - consumption: 68.011 billion kWh (1998)

Electricity - exports: 0 kWh (1998)

Electricity - imports: 0 kWh (1998)

Agriculture - products: rice?, cassava? (tapioca?), peanut?s, rubber?, cocoa?, coffee, [palm oil]?, copra?; poultry, beef?, pork?, egg?s

Exports: $48 billion (f.o.b., 1999 est.)

Exports - commodities: oil and gas, plywood, textiles, rubber

Exports - partners: Japan 18%, EU 15%, US 14%, Singapore 13%, South Korea 5%, Hong Kong 4%, China 4%, Taiwan 3% (1999 est.)

Imports: $24 billion (c.i.f., 1999 est.)

Imports - commodities: machinery and equipment; chemicals, fuels, foodstuffs

Imports - partners: Japan 17%, US 13%, Singapore 10%, Germany 9%, Australia 6%, South Korea 5%, Taiwan 3%, China 3% (1999 est.)

Debt - external: $140 billion (1998 est.)

Economic aid - recipient: $43 billion from IMF program and other official external financing (1997-2000)

Currency: Indonesian rupiah (Rp) = 100 sen

Exchange rates: Indonesian rupiah?s (Rp) per US$1 - 7,278.8 (January 2000), 7,855.2 (1999), 10,013.6 (1998), 2,909.4 (1997), 2,342.3 (1996), 2,248.6 (1995)

Fiscal year: 1 April - 31 March