Its labor laws are more complicated than labor laws in other Asian countries and hurt competitiveness. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used. Meanwhile, government expenditure fell 6.9 percent in the second quarter, lower than the 8.23 percent growth recorded in the same period last year, as it cut spending on business trips and canceled events. If you use our chart images on your site or blog, we ask that you provide attribution via a link back to this page. Southeast Asia’s largest economy is grappling with infections that have recently climbed to about 4,000 cases a day. Your browser is out of date, and may not be compatible with our website. Indonesia’s economy suffered its sharpest downturn since the 1998 Asian financial crisis in the second quarter, as the COVID-19 pandemic shut down large parts of the country, ravaging businesses and leaving millions out of work. See more from the 2020 Index. The government can take long strides toward achieving that goal by reducing corruption, modernizing and simplifying investment regulations, and ensuring that labor market controls (such as minimum wages) do not arbitrarily stifle employment growth. Indonesia is Southeast Asia’s largest economy. Furthermore, Indonesia has made enormous gains in poverty reduction, cutting the poverty rate by … Indonesia gdp for 2018 was $3,516.07B, a 1.67% increase from 2018. Joko Widodo, former businessman and governor of Jakarta, won a five-year presidential term in 2014 and was reelected in 2019. The top individual income tax rate is 30 percent, and the top corporate tax rate is 25 percent. GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. “Going forward, we should try to improve spending and investment to post positive growth in the third quarter.”. This is a list of cities in Indonesia by gross domestic product (GDP) according to the Statistics Indonesia. The total value of exports and imports of goods and services equals 43.0 percent of GDP. GDP growth has moved up sharply as well during the past five years. © 2020 by The Heritage Foundation. The Indonesian economy has been climbing steadily higher in the ranks of the moderately free since 2017. They account for about 60 percent of Indonesia’s gross domestic product (GDP) and create employment to nearly 108 million Indonesians. Indonesia is the world’s most populous Muslim-majority country. Property Rights 59.8 Create a Graph using this measurement, Judicial Effectiveness 56.2 Create a Graph using this measurement, Government Integrity 37.2 Create a Graph using this measurement. Private ownership of land is recognized, although property registration, as a result of decentralization, is sometimes complicated by local government requirements and claims. Indonesia’s economy suffered its sharpest downturn since the 1998 Asian financial crisis in the second quarter, as the COVID-19 pandemic shut … Indonesia’s economy could enter a recession in the third quarter as the government moves to accelerate stimulus spending to cushion the economic fallout of the coronavirus pandemic. A list of the most popular web browsers can be found below. The figure is deeper than the government's estimate of 4.3 percent contraction and economists' consensus of 4.6 percent contraction according to a Reuters survey. These figures were estimated in the year 2018. Today, Indonesia is the world’s fourth most populous nation, the world’s 10th largest economy in terms of purchasing power parity, and a member of the G-20. Indonesia’s economic freedom score is 67.2, making its economy the 54th freest in the 2020 Index. Government spending has amounted to 16.7 percent of the country’s output (GDP) over the past three years, and budget deficits have averaged 2.2 percent of GDP. The government has allocated Rp 695.2 trillion (US$47.5 billion) to stimulate the economy and strengthen the country’s pandemic response, but slow disbursement due to red tape and the rise in COVID-19 cases could constrain economic recovery. Indonesia gdp for 2018 was $3,576.20B, a 1.71% increase from 2018. Indonesia is ranked 12th among 42 countries in the Asia–Pacific region, and its overall score is well above the regional and world averages. The government has tightened energy subsidies, replacing the indirect liquefied petroleum gas subsidy with a targeted direct payment scheme. Health care and educational spending, however, grew 2.02 percent. Indonesia gdp for 2018 was $3,386.89B, a 1.74% increase from 2017. This year, the worsening coronavirus outbreak in the country will inhibit domestic demand, although fiscal and monetary stimulus should support activity somewhat. See how Indonesia compares to another country using any of the measures in the Index. The total number of unemployed people will hit around 10 million by the end of the year. The statistic shows gross domestic product (GDP) in Indonesia from 1984 to 2019, with projections up until 2021. Household spending, which makes up more than 50 percent of GDP, fell 5.51 percent – far lower than the 5.18 percent growth booked in the same period last year - led by a near-total collapse in spending on restaurant meals, recreational services and transportation, among others. The judiciary has demonstrated some independence, but the court system remains plagued by corruption and other weaknesses. Indonesia’s micro, small and medium sized enterprises, which together account for 99 percent of the total amount of enterprises that are active in Indonesia, are important too. As many as 3.7 million individuals have lost their jobs this year, according to data from the National Development Planning Agency (Bappenas). Backlinks from other websites and blogs are the lifeblood of our site and are our primary source of new traffic. The GDP report reflected the impact of widespread disruptions to the economy as the government ordered the imposition of large-scale social restrictions (PSBB) to contain the virus spread, forcing businesses and factories to shut down and consumers to stay home for much of April and May. Home | Country Rankings | Graph The Data | Heat MapExplore the Data | Downloads | FAQs| About The Index. Guide to omnibus bill on job creation: 1,028 pages in 10 minutes, Omnibus law: Biggest ‘big bang’ reform ever, Indonesia passes jobs bill as recession looms, K-Festival 2020 showcases K-pop culture, halal tourism, International labor union federations write to Jokowi to protest omnibus law, Indonesia's latest official COVID-19 figures, Challenges of home learning during a pandemic through the eyes of a student, Rallies against job creation law turn violent as police clash with protesters, COVID-19 clusters emerge at Islamic boarding schools in Jakarta, Java, Omnibus bill on job creation passed into law despite opposition. Just click on the icons to get to the download page. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. The export of non-oil and gas, as well as foreign tourist arrivals fell sharply in the second quarter. 2019 data List Indonesian Metropolitan City by GDP 2019. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. We have provided a few examples below that you can copy and paste to your site: Your image export is now complete. Tax Burden 83.4 Create a Graph using this measurement, Government Spending 91.7 Create a Graph using this measurement, Fiscal Health 90.2 Create a Graph using this measurement. Although Indonesia publicly welcomes foreign investment, investors face hurdles because of lingering inconsistencies in the investment codes. The government expects full-year growth of 1 percent at best, or full-year contraction of 0.4 percent at worst this year, depending on the severity of damage and how long the country takes to recover. The average applied tariff rate is 2.1 percent, and 112 nontariff measures are in force. Exports and imports also plunged 11.66 percent and 16.96 percent, respectively, reflecting the slowdown in global economic activity as the pandemic hit. Data are in current U.S. dollars. Corruption remains endemic at all levels, including in national and local legislatures, the civil service, the judiciary, and the police. Continued improvements in infrastructure should help to reduce high transport and logistical costs. “The coronavirus pandemic has had a very negative effect on health care, social and economic conditions, as it delivered a crushing blow for households and businesses,” BPS head Suhariyanto told reporters during a press briefing on Wednesday. Please check your download folder. Capital markets are not fully developed. Its overall score has increased by 1.4 points, primarily because of a higher property rights score. All Rights Reserved. GDP contracted 5.32 percent in the second quarter, the lowest since the first quarter of 1999, Statistics Indonesia (BPS) announced Wednesday. Indonesia Economic Growth The economy is set to shrink in 2020 before rebounding strongly in 2021. Investment, meanwhile, fell 8.61 percent, a far cry from 4.55 percent growth recorded over the same period last year, as businesses pulled back sharply on their investment in vehicles and other products. Please check your download folder. Since 1998, when long-serving authoritarian ruler General Suharto stepped down, Indonesia’s 262 million people have enjoyed a wide range of political freedoms, and participation in the political process is high. Indonesia gdp for 2018 was $3,458.42B, a 2.11% increase from 2018. Other taxes include value-added and property taxes. Public debt is equivalent to 29.2 percent of GDP. Read more about Indonesia Economy. The financial sector is dominated by commercial banks that include state-owned banks. Trade Freedom 80.8 Create a Graph using this measurement, Investment Freedom 50.0 Create a Graph using this measurement, Financial Freedom 60.0 Create a Graph using this measurement. Indonesia’s significant untapped maritime resources could spur future development, but barriers to international trade and investment undermine prospects for growth. The government’s decision to lift containment measures in early June has stirred economic activity back to life gradually – just not to the levels seen before the pandemic, Suhariyanto said. Its overall score has increased by 1.4 points, primarily because of a higher property rights score. We have provided a few examples below that you can copy and paste to your site: Your data export is now complete. Indonesia has made it easier to start a business, register property, and obtain credit, but businesses complain that the government changes rules affecting them without notice and without consultation.