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 Indonesia (2008)Indonesia (2007)
 IndonesiaIndonesia
Administrative divisions 30 provinces (propinsi-propinsi, singular - propinsi), 2 special regions* (daerah-daerah istimewa, singular - daerah istimewa), and 1 special capital city district** (daerah khusus ibukota); Aceh*, Bali, Banten, Bengkulu, Gorontalo, Jakarta Raya**, Jambi, Jawa Barat, Jawa Tengah, Jawa Timur, Kalimantan Barat, Kalimantan Selatan, Kalimantan Tengah, Kalimantan Timur, Kepulauan Bangka Belitung, Kepulauan Riau, Lampung, Maluku, Maluku Utara, Nusa Tenggara Barat, Nusa Tenggara Timur, Papua, Papua Barat (Irian Jaya Barat), Riau, Sulawesi Barat, Sulawesi Selatan, Sulawesi Tengah, Sulawesi Tenggara, Sulawesi Utara, Sumatera Barat, Sumatera Selatan, Sumatera Utara, Yogyakarta*


note: following the implementation of decentralization beginning on 1 January 2001, the 440 districts or regencies have become the key administrative units responsible for providing most government services
30 provinces (propinsi-propinsi, singular - propinsi), 2 special regions* (daerah-daerah istimewa, singular - daerah istimewa), and 1 special capital city district** (daerah khusus ibukota); Aceh*, Bali, Banten, Bengkulu, Gorontalo, Irian Jaya Barat, Jakarta Raya**, Jambi, Jawa Barat, Jawa Tengah, Jawa Timur, Kalimantan Barat, Kalimantan Selatan, Kalimantan Tengah, Kalimantan Timur, Kepulauan Bangka Belitung, Kepulauan Riau, Lampung, Maluku, Maluku Utara, Nusa Tenggara Barat, Nusa Tenggara Timur, Papua, Riau, Sulawesi Barat, Sulawesi Selatan, Sulawesi Tengah, Sulawesi Tenggara, Sulawesi Utara, Sumatera Barat, Sumatera Selatan, Sumatera Utara, Yogyakarta*


note: following the implementation of decentralization beginning on 1 January 2001, the 440 districts or regencies have become the key administrative units responsible for providing most government services
Background The Dutch began to colonize Indonesia in the early 17th century; the islands were occupied by Japan from 1942 to 1945. Indonesia declared its independence after Japan's surrender, but it required four years of intermittent negotiations, recurring hostilities, and UN mediation before the Netherlands agreed to relinquish its colony. Indonesia is the world's largest archipelagic state and home to the world's largest Muslim population. Current issues include: alleviating poverty, preventing terrorism, consolidating democracy after four decades of authoritarianism, implementing financial sector reforms, stemming corruption, holding the military and police accountable for human rights violations, and controlling avian influenza. In 2005, Indonesia reached a historic peace agreement with armed separatists in Aceh, which led to democratic elections in December 2006. Indonesia continues to face a low intensity separatist movement in Papua. The Dutch began to colonize Indonesia in the early 17th century; the islands were occupied by Japan from 1942 to 1945. Indonesia declared its independence after Japan's surrender, but it required four years of intermittent negotiations, recurring hostilities, and UN mediation before the Netherlands agreed to relinquish its colony. Indonesia is the world's largest archipelagic state and home to the world's largest Muslim population. Current issues include: alleviating poverty, preventing terrorism, consolidating democracy after four decades of authoritarianism, implementing financial sector reforms, stemming corruption, holding the military and police accountable for human rights violations, and controlling avian influenza. In 2005, Indonesia reached a historic peace agreement with armed separatists in Aceh, which led to democratic elections in December 2006. Indonesia continues to face a low intensity separatist guerilla movement in Papua.
Budget revenues: $88.21 billion


expenditures: $95.41 billion (2007 est.)
revenues: $74.18 billion


expenditures: $77.39 billion (2006 est.)
Country name conventional long form: Republic of Indonesia


conventional short form: Indonesia


local long form: Republik Indonesia


local short form: Indonesia


former: Netherlands East Indies, Dutch East Indies
conventional long form: Republic of Indonesia


conventional short form: Indonesia


local long form: Republik Indonesia


local short form: Indonesia


former: Netherlands East Indies; Dutch East Indies
Debt - external $137.2 billion (30 June 2007) $130.2 billion (2006 est.)
Economic aid - recipient ODA, $2.524 billion (2006 est.)


note: Indonesia ended 2006 with $67 billion in official foreign debt (about 25% of GDP), with Japan ($25 billion), the World Bank ($8.5 billion) and the Asian Development Bank ($8.4 billion) as the largest creditors; about $6 billion in grant assistance was pledged to rebuild Aceh after the December 2004 tsunami; President YUDHOYONO disbanded the Consultative Group on Indonesia (CGI) donor forum in January 2007 (2005)
ODA, $2.524 billion (2006 est.)


note: Indonesia ended 2006 with $67 billion in official foreign debt (about 25% of GDP), with Japan ($25 billion), the World Bank ($8.5 billion) and the Asian Development Bank ($8.4 billion) as the largest creditors; about $6 billion in grant assistance was pledged to rebuild Aceh after the December 2004 tsunami; President YUDHYONO ended the Consultative Group on Indonesia forum in January 2007 (2005)
Economy - overview Indonesia, a vast polyglot nation, has been undergoing significant economic reforms under President YUDHOYONO. Indonesia's debt-to-GDP ratio has been declining steadily, its foreign exchange reserves are at an all-time high of over $50 billion, and its stock market has been one of the 3 best performers in the world in 2006 and 2007, as global investors sought out higher returns in emerging markets. The government has introduced significant reforms in the financial sector, including tax and customs reforms, the introduction of Treasury bills, and improved capital market supervision. Indonesia's new investment law, passed in March 2007, seeks to address some of the concerns of foreign and domestic investors. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. Indonesia has been slow to privatize over 100 state-owned enterprises, several of which have monopolies in key sectors. The non-bank financial sector, including pension funds and insurance, remains weak. Capital markets are underdeveloped. The high global price of oil in 2007 increased the cost of domestic fuel and electricity subsidies, and are contributing to concerns about higher food prices. Located on the Pacific "Ring of Fire" Indonesia remains vulnerable to volcanic and tectonic disasters. Significant progress has been made in rebuilding Aceh after the devastating December 2004 tsunami, and the province now shows more economic activity than before the disaster. Unfortunately, Indonesia suffered new disasters in 2006 and early 2007 including: a major earthquake near Yogyakarta, an industrial accident in Sidoarjo, East Java that created a "mud volcano," a tsunami in South Java, and major flooding in Jakarta, all of which caused additional damages in the billions of dollars. Donors are assisting Indonesia with its disaster mitigation and early warning efforts. Indonesia, a vast polyglot nation, has struggled to overcome the Asian financial crisis, and still grapples with persistent poverty and unemployment, inadequate infrastructure, endemic corruption, a fragile banking sector, a poor investment climate, and unequal resource distribution among regions. The country continues the slow work of rebuilding from the devastating December 2004 tsunami and from an earthquake in central Java in May 2006 that caused over $3 billion in damage and losses. Declining oil production and lack of new exploration investment turned Indonesia into a net oil importer in 2004. The cost of subsidizing domestic fuel placed increasing strain on the budget in 2005, and combined with indecisive monetary policy, contributed to a run on the currency in August, prompting the government to enact a 126% average fuel price hike in October. The resulting inflation and interest rate hikes dampened growth through mid-2006, while large increases in rice prices pushed millions more people under the national poverty line. Economic reformers introduced three policy packages in 2006 to improve the investment climate, infrastructure, and the financial sector, but translating them into reality has not been easy. Keys to future growth remain internal reform, building up the confidence of international and domestic investors, and strong global economic growth. Significant progress has been made in rebuilding Aceh after the devastating December 2004 tsunami, and the province now shows more economic activity than before the disaster. Unfortunately, Indonesia suffered new disasters in 2006 and early 2007 including: a major earthquake near Yogyakarta, an industrial accident in Sidoarjo, East Java that created a "mud volcano," a tsunami in South Java, and major flooding in Jakarta, all of which caused additional damages in the billions of dollars. Donors are assisting Indonesia with its disaster mitigation and early warning efforts.
Electricity - consumption 108 billion kWh (2006 est.) 105.3 billion kWh (2005 est.)
Electricity - exports 0 kWh (2006 est.) 0 kWh (2005 est.)
Electricity - imports 0 kWh (2006 est.) 0 kWh (2005 est.)
Electricity - production 125.9 billion kWh (2006 est.) 120.3 billion kWh (2005 est.)
Exchange rates Indonesian rupiah per US dollar - 9,056 (2007 est.), 9,159.3 (2006), 9,704.7 (2005), 8,938.9 (2004), 8,577.1 (2003) Indonesian rupiah per US dollar - 9,159.3 (2006), 9,704.7 (2005), 8,938.9 (2004), 8,577.1 (2003), 9,311.2 (2002)
Exports 470,000 bbl/day (2006 est.) 474,000 bbl/day (2005 est.)
GDP - composition by sector agriculture: 12.4%


industry: 47.7%


services: 39.9% (2007 est.)
agriculture: 12.9%


industry: 47%


services: 40.1% (2006 est.)
GDP - real growth rate 6.1% (2007 est.) 5.5% (2006 est.)
Imports 500,000 bbl/day (2006 est.) 424,000 bbl/day (2005 est.)
Industrial production growth rate 6.1% (2007 est.) 2.6% (2006 est.)
Inflation rate (consumer prices) 6.3% (2007 est.) 13.1% (2006 est.)
International organization participation ADB, APEC, APT, ARF, ASEAN, BIS, CP, EAS, FAO, G-15, G-77, IAEA, IBRD, ICAO, ICC, ICRM, IDA, IDB, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM (observer), IPU, ISO, ITSO, ITU, ITUC, MIGA, MONUC, NAM, OIC, OPCW, OPEC, PIF (partner), UN, UN Security Council (temporary), UNCTAD, UNESCO, UNIDO, UNIFIL, UNMIL, UNOMIG, UNWTO, UPU, WCL, WCO, WFTU, WHO, WIPO, WMO, WTO APEC, APT, ARF, AsDB, ASEAN, BIS, CP, EAS, FAO, G-15, G-77, IAEA, IBRD, ICAO, ICC, ICRM, IDA, IDB, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM (observer), IPU, ISO, ITSO, ITU, ITUC, MIGA, MONUC, NAM, OIC, OPCW, OPEC, PIF (partner), UN, UNCTAD, UNESCO, UNIDO, UNMIL, UNOMIG, UNWTO, UPU, WCL, WCO, WFTU, WHO, WIPO, WMO, WTO
Labor force 108 million (2007 est.) 106.4 million (2006 est.)
Military branches Indonesian Armed Forces (Tentara Nasional Indonesia, TNI): Army (TNI-Angkatan Darat (TNI-AD)), Navy (TNI-Angkatan Laut (TNI-AL); includes marines, naval air arm), Air Force (TNI-Angkatan Udara (TNI-AU)), National Air Defense Command (Kommando Pertahanan Udara Nasional (Kohanudnas)) (2008) Indonesian Armed Forces (Tentara Nasional Indonesia, TNI): Army (TNI-AD), Navy (TNI-AL, includes marines, naval air arm), Air Force (TNI-Angkatan Udara (TNI-AU)), National Air Defense Command (Kommando Pertahanan Udara Nasional, Kohanudnas)


note: the TNI is directly subordinate to the president but the government is making efforts to incorporate it into the Department of Defense (2007)
Pipelines condensate 963 km; condensate/gas 81 km; gas 9,003 km; oil 7,471 km; oil/gas/water 77 km; refined products 1,365 km (2007) condensate 944 km; condensate/gas 135 km; gas 9,175 km; oil 7,684 km; oil/gas/water 89 km; refined products 1,367 km (2006)
Unemployment rate 9.7% (2007 est.) 12.5% (2006 est.)
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