Indonesia

Indonesia

Indonesia's agricultural sector accounted for 12.4% of GDP and 29.0% of the employed population in 2022. The favorable climate, as well as extensive fertile lands allow the country to maintain the status of a net exporter of agricultural products.
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The Indonesian government pursued a fairly flexible macroeconomic policy in 2021-2022. Therefore, despite the challenging global economic environment, Indonesia experienced accelerated real GDP growth in 2022, which was 5.3% at the end of the year
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The economy of Indonesia belongs to the agrarian-industrial type. Indonesia belongs to the category of the most economically promising developing countries — the so-called group of eleven.

The economy, with its market nature, is characterized by an active role of the state: It owns about 140 large enterprises in various sectors of the national economy, and also controls the prices of a number of goods, including basic foodstuffs and fuels and lubricants.

Agriculture — historically the main branch of the local economy — giving a little more than 14% of national GDP, provides employment for a very significant part of the population — more than 38%. At the same time, its share in the structure of GDP and in terms of employment is gradually decreasing.

Main crops: rice, cassava, coconuts, corn, bananas, sweet potatoes. Oil palm and sago palm, sugar cane, cocoa beans, coffee, tobacco, tea, cloves, pepper are grown in large volumes. Of the technical crops, rubber trees are of the greatest importance. Animal husbandry is less developed.

Fishing has historically been of great importance: Indonesia ranks third in the world in terms of fish and seafood catch; the main commercial species are tuna, mackerel, sardine, sea bass, grouper, shrimp.

At the same time, the intensively developing fish farming has almost equaled it in terms of production volumes. The main bred species are tilapia, carp, gourami, shrimp. Pearl breeding is widely practiced.

The most important industry is forestry and timber industry.

Indonesia has rich deposits of various minerals: high-quality oil, tin, bauxite, nickel, manganese, lead, copper, zinc, chromium. In the mining industry, there are mainly large national companies, a significant part of which is owned by the state.

Mining of iron ore, tin, bauxite, nickel, manganese, copper and coal is of industrial importance.

The most significant industries in the manufacturing sector are: food industry, chemical industry, textile industry, tobacco industry, production of machinery and equipment, automotive industry, pulp and paper industry, production of ready-made clothing. Also furniture industry, production of construction materials and ceramics.

Chemical industry: production of fertilizers, packaging film, paint, adhesive materials, plastic pipes and containers, pesticides, biodiesel, etc. chemical products.

The companies also produce cosmetics, perfumes and hair care products. Manufacture of automobile and motorcycle tires (as well as other rubber products), cord.

The production of textiles, fabrics and ready-made clothing is developed.

Most of the electricity — 87.2% — is generated at thermal power plants, including 44.9% using coal, 26.5% — oil and 15.8% — natural gas. 7.9% of production is accounted for by hydroelectric power plants, 4.9% — by stations using alternative energy sources (primarily geothermal, there are also biofuel stations, the share of others is insignificant). According to the program adopted by the government, it is planned to build four nuclear power plants with a total electric capacity of at least 4 GW by 2025.

The Indonesian authorities have traditionally made active efforts to develop the tourism industry in the country. At the same time, the emphasis is primarily on maximizing the influx of foreign visitors who are more promising from an economic point of view. A positive role in this regard is played by the presence of a significant number of both historical and cultural and natural attractions, including those of world significance.

The main export items are coal, gas, oil, electrical equipment, textiles, wood, plywood, rubber. Mainly machinery and equipment, oil, chemical industry and oil refining products, and certain types of food are imported.