Economic trends
After the recession which followed the 1998 Asian crisis, Indonesia re-capitalized its banking sector, improved the monitoring of its capital markets and took steps to stimulate growth and investments. The GDP growth rate in 2006 and 2007 was relatively high because of these mesures. Due to an unfavourable international economic speculation incident, Indonesian growth markedly slowed down in 2009. Nevertheless, it has shown itself to be more resistant than the neighboring countries because of the low burden, on the economy, of exports and the importance of private consumption.
The level of unemployment remains high and a certain amount of workers are in an unstable situation. A part of the population lives under the poverty threshold and the gap between the rich and poor is not narrowing.
Due to the economic crisis, a relaunch plan to lower taxes, increase subsidies and spending commitments has been passed at the beginning of the year.
Main branches of industry
The agricultural sector contributes nearly 14% to the country’s GDP and employs nearly 40% of the active population. Indonesia is one of the largest rubber producers in the world. Other major crops are rice, sugarcane, coffee, tea, tobacco, palm oil, coconuts and spices. Indonesia is the only Asian country to be an OPEC member and supplies 5% of OPEC's production. However it is still a net oil importer. The country has great timberlands and is a major exporter of timber.
Industries contribute around half of the GDP. The industrial sector includes manufacturing of textiles, cement, chemical fertilizers, electronics, rubber tyres, clothes and shoes (most of these are for the U.S. market). Wood processing is also a major activity.
The tertiary sector (financial institutions, transport and communication) contributes around 40% of the GDP. The banking sector is well developed. The Islamic bank, Siaryah (link in Bahasa Indonesia), has grown rapidly during recent years. Tourism is a major source of revenue, however, the sector has suffered because of the Bali & Jakarta attacks as well as the 2004 tsunami.
International trade
Indonesia is a member of the WTO and ASEAN (Association of South-East Asian nations). The share of foreign trade in the country’s GDP was more than 70% in 2006. Indonesia’s top three export partners are: Japan, the United States and Southeast Asia. The commodities that are mainly exported are mineral fuels and hydrocarbons, electrical equipment, animal and vegetable fats & oils, nuclear reactors & boilers, and rubber. Its top three import partners are Southeast Asia, Japan, and China. The commodities that are mainly imported are mineral fuels & oils, nuclear reactors & boilers, iron & steel, electric & electronic equipment, and organic chemicals. In 2007 and 2008, Indonesia showed a trade surplus. Despite of the crisis, exports have done well in 2009, but the trade surplus has had a downward trend because of the rapid increase of imports.
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