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INDONESIA ECONOMY PROFILE, CONSTRUCTION AND MARBLE

Indonesia economy profile

INDONESIA IN BRIEF

Indonesia it is the largest island country of the world, having the world’s fourth bigger population estimated over 260 millions of people according to the latest United Nations estimates, being at the same time the country with the most populous Muslim majority.

The Indonesian GDP is $861.9 billion, with a grow rate 4.8% and inflation 6.4% (2015).

INDONESIAN ECONOMY

Indonesia is a member of the G-20 major economies and a founding member of ASEAN. The country’s economy is mixed with the private and public sectors having equivalent importance (the central government owns 141 enterprises). The Indonesian economy is the world’s 16th largest by nominal GDP and the 8th largest by GDP at PPP.

The government of Indonesia has approved a development plan for the next twenty years, starting from 2005.The plan is subdivided in five years intermediate plans, with each one of then targeting in different goals.

Infrastructure is one of the main targets under development. With a population of 250 million people the government is focus on the country’s growth. The progress of the construction and building materials sector includes the completion of a number of megaprojects, such as bridges, railways and power stations.

Indonesia is one the most important exporting countries the world in 2010. The main destinations of the Indonesian exports are Japan (17.28%), Singapore (11.29%), the USA (10.81%), and China (7.62%), while imports to Indonesia are mainly coming from Singapore (24.96%), China (12.52%), and Japan (8.92%). In 2014 the export revenues were US$176 billion and imports expenditure US$178.2 billion. Since 1999 the economy has recovered and growth has accelerated to over 4–6% in recent years.

Focus Economics panelists (July 19, 2016) state: “Government spending on infrastructure and supportive conditions for household spending should fuel an acceleration in growth this year. However, the more uncertain global environment following the United Kingdom’s Brexit vote could impact Indonesia’s exports or investment flows. The GDP growth will accelerate to a 5.0% expansion in 2016, which is down 0.1 percentage points from last month’s forecast, before speeding up slightly to 5.3% in 2017”.

Indonesia - Jakarta_bank and economy

INDONESIA, THE WORLD BANK OVERVIEW

Indonesia’s economic planning follows a 20-year development plan, spanning from 2005 to 2025. It is segmented into 5-year medium-term plans, called the RPJMN, each with different development priorities. The current medium-term development plan – the third phase of the long-term plan — runs from 2015 to 2020, focusing, among others, on infrastructure development and improving social assistance programs in education and healthcare. Such shifts in public spending has been enabled by a reform of long-standing energy subsidies, allowing for more investments in programs that directly impact the poor and near-poor, as well as vast improvements in infrastructure investment. Considerable challenges remain in achieving Indonesia’s goals.

Due to weaker demand for commodities – the fuel for Indonesia’s economic boom in the past decade – Indonesia’s GDP growth has been slowing since 2012. The pace of growth in fixed investment, exports, and consumption, has slowed – and these developments have impacted the rate of poverty reduction.

Although the poverty rate declined by 1% annually from 2007 to 2011 and has fallen by an average of only 0.3 percentage per year since 2012, 28.6 million Indonesians still live below the poverty line and approximately 40% of all people remain clustered around the national poverty line set at 330,776 rupiah per person per month ($22.60).

The investment climate, though generally positive, faces continued regulatory uncertainties and high logistics costs. However, a series of reform packages shows that the government wants to convince investors that Indonesia is open for business. The packages include a reduction of the Negative Investment List, a list of some 600 sectors that represent about 70% of the economy. The government has pledged further reforms.
www.worldbank.org

MARBLE IN INDONESIA

The island of Java is concerned as the Indonesia’s Marble Production Center. Also in the center for all Indonesia natural stone products. In Java buyers, stone manufacturers, exporters, wholesalers or other stone traders, involved in the natural stone business can deal on marble, granite, limestone, onyx, java slate, pebble stone, sand stone, mosaics, garden stone, ornament stone, pumice, etc.

Located in West Java, the district of Bandung, due its natural resources, is home to most of the marble producers in Indonesia. Other important marble production areas are the East Java districts of Tulungagung and of Pasuruan.

Indonesian marble quarry

DATA RECEIVED FROM:
www.worldbank.org
www.worldometers.info
en.wikipedia.org
www.thefreelibrary.com
www.indonesiannaturalstone.com/
www.focus-economics.com

Kallirroi Pavlakou
International News and Markets

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