Your Tour And Travel
Kamis, 25 Februari 2016

Indonesian Economy

Rahim Tabet | Februari 25, 2016 |
Indonesia's economy is dominated by the geographically uneven distribution of the population and have grown through the production of consumption, with significant economic conflicts between the overcrowded consuming Java and sparsely populated, foreign exchange producing so-called Outer Islands, the outer-Javanese islands.
Indonesian Economy
The difficulties associated with this situation is exacerbated by political tensions, the nationalizations of 1957 and subsequent years, the huge military expenditure, and quite costly administrative costs.
From 1988 to mid-1997, Indonesia made a strong economic recovery with (annual income per capita rose from $ 75 in the sixties to $ 1,000 in the nineties), mainly due to a policy of liberalization, which, among other things aims to reduce dependence on oil revenues and to build a more diversified economy.
The economic policies of the government promotes the export of various (manufacturing) industries, particularly wood products. The favorable results are above all due to the support of major international financial organizations and development aid.
The export-oriented manufacturing sector is currently the engine of the economy, but also foreign investment in the country rose. The Indonesian economy remains vulnerable due to its dependence on foreign countries, the rapid population growth (unemployment), income differences and the authoritarian, anti-democratic character of the country.
With an inflation rate of approximately 10% mid-nineties achieved an economic growth of about 7% per year. From mid-1997 there was a major currency crisis caused by the financial and economic crisis in Southeast Asia, so the government was forced to seek help from the IMF. The exchange rate of the rupiah fell in 1997 by more than 70%, inflation rose sharply (1998 !, 58% 1999 20% 2000 9.35% 2001 12.55%) and hundreds of thousands of Indonesians lost their jobs (1998 15 , 5%). In the course of 1998 restored the value of the rupiah somewhat, but the unstable political situation of structural economic recovery still lacking. That year had still a negative growth of 13.2% due to all the problems. Only the agricultural and utility sector still showed positive growth. The construction sector shrank by more than 40%, making it the absolute leader. From 1999, it went back in the right direction; a growth of 0.22% in 1999, 4.8% in 2000, 3.3% in 2001, 3.66% in 2002 despite the effects of the terrorist attack in Bali in October.
Because of the crisis, an estimated 17 million Indonesians hit below the poverty line. Thus, the total number of people below this level to more than 55 million, or more than a quarter of the population. Now the economy is recovering, although can be expected that some of these 17 million people once again will flow quickly above the poverty line, but for the most part this is true that this process can take a long time.

Any actual figures on Indonesia's economy is that the growth rate of the economy was in recent years at around 6%. In 2013, economic growth was 5.3%. The average income per capita was $ 5,200 in 2013, the last year with an increase of $ 200 per year. 11.7% of the population lives below the poverty line.

Agriculture; livestock; forestry; fishery
Almost 40% of the workforce is engaged in agriculture (2013). Of the estimated 180,000 km2 cultivated land is about 72% for food crops and the rest for commercial crops in use. In 2013 was 14.3% of gross domestic product at the expense of the agricultural sector. A strong agricultural sector is expected to lead to greater prosperity in the country.
Indonesian Economy
The main food crops are rice, maize, cassava and sweet potatoes, peanuts, soybeans, copra and sugar. The rice culture is the oldest and dominant culture, for the most part on rice fields, but also (outside Java) on dry, annually alternating fields (ladangbouw: form of farming in which a crop is planted in a patch of forest that first burned). After the rice harvest are grown often second crops without irrigation. Since the cultivation of rice is very important for food and it is equally important for public finances to be independent of rice imports, attempts have been made to increase food production, which, however, initially did not lead to the expected results.
Meanwhile, the country is largely self-sufficient. Agriculture Reform, use of fertilizers, control of insect pests and disease have led to quality improvement, as well as introducing new varieties. This not only yield per parcel plus, but could also be harvested two to three times per year.
Rice is the main crop in western Indonesia because of the favorable climate. In Eastern Indonesia corn is the staple food, while sago is the most important food crop in the Moluccas and Irian Jaya.

The main cash crops are rubber, palm oil, tobacco, tea, copra, coffee (after Brazil and Colombia, the world's largest producer), cocoa, pepper and other spices. The cultivation takes place mainly in Sumatra and Java, either on large agricultural enterprises or, as in the rubber production by small farmers. Indonesia Malaysia after the world's largest producer of rubber.
The kretek cigarette industry has in recent decades undergone rapid growth, which was again favorable for the cultivation cloves (clove or cengkèk). A krètèksigaret consists of tobacco, mixed with coarsely ground cloves. A large part of the production is still done by hand. The machine-made cigarettes are meant for the foreign market.

Horticulture is the most adept at erfcultures, ie yards around the houses: fruit, vegetables, herbs and spices are consumed locally and only a small proportion to the market.
Special horticultural, for cabbages, beans and leeks in mountain areas and leafy vegetables in the lower areas, only supply to the market.
The horticultural sector is moderately developed, but focuses on seedlings, potted plants and western and tropical plants.

The development of animal husbandry in Indonesia lagged behind the rest of the economy, despite incentives from the government. Livestock is mainly intended for keeping draft animals like cattle, buffaloes and horses; for consumption intended goats, sheep, chickens and cows. These pigs are mainly intended for export, because the vast majority of the population are Muslims.

Nearly two-thirds of the country is covered by tropical forest (60% of Sumatra, Kalimantan and 77% of 80% of Irian Jaya), which is controlled almost entirely by the state. However, there are concessions granted to American, Filipino and Japanese companies. Indonesia possesses thus after Brazil's largest rainforest in the world and is the largest timber exporter in Southeast Asia. Sawn timber, plywood and veneer is mainly exported to Japan, South Korea, Singapore, Taiwan and Australia.
Forests provide other than wood also resins and gums, turpentine, rattan and kajapoetih oil. It extracted from sago pith is the staple food in Irian Jaya. Sometimes breaking as a result of drought and irresponsible logging, particularly in Sumatra, Kalimantan and Irian Jaya, persistent forest fires.

Fishing for food in Indonesia is very important, although only a small part of the potential exploited due to lack of fishing boats and knowledge to fishermen. The fisheries sector is dominated by very small-scale fishing businesses. Fishing is done with zeilprauwen, whether or not motorized, as with sero's huge pots with bamboo stakes.
Particularly along the coasts of Sulawesi and Kalimantan, in the Riau Archipelago and in Maluku some groups live almost exclusively on fishing. In some parts of Java fish released into the paddy fields and further out there, especially along the northern coast of Java, separate fish and shrimp ponds; more than half of the fish caught is provided by these artificial ponds.
Sea fishing, including shrimp exports, by modernizing the fleet and improved fishing techniques in the course of the eighties progressed markedly.
The main products for the fishing industry are groundfish, deep sea fish, skipjack, tuna, squid, shrimp, weever, Indian squid and seaweed. The main customers are Japan and the United States.

Mining and energy
Indonesia after Malaysia's largest tinproducent world, the riches are barely studied or mapped. The main problem is the (in) accessibility of the locations where the minerals and metals in the soil, often densely forested or mountainous areas.
Oil is found in eastern and southern Sumatra, East Kalimantan and East Java, but also offshore. The operation is partly owned by private companies, partly owned by the state-owned Pertamina.
Indonesia is the largest oil producer in Southeast Asia and is therefore still the main source of income of hard currency and taxes.
Natural gas is found mainly in the Natuna islands in the South China Sea and South Sumatra and East Kalimantan.
While other mineral resources belong mainly tin (in 2001, 62,000 tons in Bangka, Billiton and Singkep in the Riau Archipelago), bauxite (Riau Islands), nickel (South Sulawesi, almost all operated), coal (South and Central -Sumatra) and iron ore (Irian Jaya). Furthermore, gold, silver and copper recovered. Almost all exploration and exploitation activities are carried out by foreign mining companies, sometimes in the form of joint ventures with Indonesian companies.

More than half of the total energy is derived from petroleum or gas-fired power plants. Furthermore, hydropower, geothermal and coal especially important sources of energy.

Industry
The development of the industrial sector is actually only flourished from the mid sixties. The government put out from time less money in industrial development, and there was simultaneously created a liberal investment climate for domestic and foreign private investors.
The industry has for the most part concentrated in Java. More than half of them are small and medium-sized businesses which are mechanized to about half. Of the larger companies is about 85% mechanized; in this sector are found shipbuilding, petroleum refining, chemical industry, textile, cement, paper and fertilizer manufacture. There are companies in the manufacture of electronic equipment, cars and airplanes.
The share of manufacturing in industrial production in GDP increased from 8.5% in 1970 to 46.6% in 2013.
An increasingly important share of the domestic industry is claimed by manufacturers of shoes, electronics and textiles. This mainly concerns global companies from countries such as Japan and South Korea, benefiting from the low wages in Indonesia. This gives the textile and clothing industry has worked over the past decade to the second most important sector in terms of foreign currency earnings.

Trade
Indonesian Economy

The trade balance has been positive since 1980 (in 2013 dropped to $ 3 billion).
From the mid-seventies of the last century the Indonesian exports were dominated by the export of oil and natural gas. Mid-eighties increased exports of these products to more than three quarters of the total Indonesian export earnings. Then came a policy to reduce dependence on oil and gas, and to focus more on the development of the industry. Already in 1987 the share of exports of oil and gas rose quite sharply.
The main export products other than oil and gas are traditional materials: rubber, coal, tin, tobacco, coffee, tea, palm oil and copra, as well as plywood, garments and textiles, footwear, wood, fish and shrimp.
The input consists mainly of transport and food, chemicals and capital goods.

Indonesia handles most of China, Japan, the United States and Singapore. Traditionally Netherlands also play a role, which, incidentally, is rapidly shrinking


  • Blogger Comments
  • Facebook Comments

0 komentar:

Posting Komentar

Item Reviewed: Indonesian Economy Rating: 5 Reviewed By: Rahim Tabet