Discover our latest insights into Indonesia including business news, regulatory updates and extensive data on Indonesia free trade, double tax agreements and foreign direct investment laws.
Officially the Republic of Indonesia, Indonesia is a country in Southeast Asia consisting of approximately 17,508 islands. It has 34 provinces with over 238 million people, and is the world's fourth most populous country. The country shares land borders with Papua New Guinea, East Timor, and Malaysia. It neighbors Singapore, the Philippines, Australia, Palau, and the Indian territory of the Andaman and Nicobar Islands.
Indonesia founded ASEAN on 8 August 1967 along with co-founders Malaysia, the Philippines, Singapore and Thailand. It is also a member of the G-20 major economies.Indonesia grew at an estimated rate of 6.1 percent and 6.4 percent in 2010 and 2011, primarily due to the significant economic reforms made under the first administration of President Yudhoyono (2004-09). Significant reforms in the financial sector, including tax and customs reforms, the use of Treasury bills, and capital market development and helped aid this growth.
The government has promoted fiscally conservative policies that has resulted in a debt-to-GDP ratio of less than 25 percent, a small current account surplus, a fiscal deficit below 2 percent, and historically low rates of inflation. However, Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions.
Indonesia's imports include machinery and equipment, chemicals, fuels and foodstuffs. It's exports include oil and gas, electrical appliances, plywood, textiles and rubber. Its major industries are comprised of petroleum and natural gas, textiles, apparel, footwear, mining, cement, chemical fertilizers, plywood, rubber, food and tourism.
Major import partners of Indonesia include China (14.8 percent), Singapore (14.6 percent), Japan (11 percent), South Korea (7.3 percent), United States (6.1 percent), Thailand (5.9 percent) and Malaysia (5.9 percent). Major export partners include Japan (16.6 percent), China (11.3 percent), Singapore (9.1 percent), United States (8.1 percent), South Korea (8.1 percent), India (6.6 percent) and Malaysia (5.4 percent).