With the GDP expected to reach US$ 1trillion this year, Indonesia is the largest economy in Southeast Asia. Much less affected by the global financial crisis compared to its neighboring countries, Indonesia’s economy grew by 6.3% in the first semester of 2012, making it the fastest growing G20 economy after China. Indonesia grew by 6.5% in 2011and is expected to grow by 6.3% this year, providing a case for the country’s inclusion in the so-called BRIC economies. Future economic expansion is expected to include more inclusive growth as nominal per-capita GDP is expected to quadruple by 2020, according to a Standard Chartered report.
A large part of our economic success is a result of prudent fiscal stewardship that focused on reducing the debt burden. Indonesia’s debt to GDP ratio has steadily declined from 83% in 2001 to less than 25% by the end of 2011, the lowest among ASEAN countries, aside from Singapore which has no government debt.
As a result, by early this year, Moody’s and Fitch had uplifted Indonesia’s credit rating to investment grade status. The rating reflects Indonesia’s resilience to the global financial crisis, improving government and external credit-metrics, and an ability to manage domestic political challenges to the reform agenda.
Economically strong, politically stable and reform minded, Indonesia is an emerging global powerhouse in Asia.
Real GDP Growth
source : CEIC
Total Debt / GDP
source : IMF
Realized Foreign Direct Investment (FDI)
source : BKPM
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