Capital City: Jakarta
	It is %T:%M %A in Jakarta

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Economic trends

Indonesia has a market-based economy in which the government plays a significant role. Indonesia, after recovering from 1998 Asian crises (when it experienced negative GDP growth of 13.7% and unemployment rose to around 20%) has recapitalized its banking sector, improved oversight of capital markets, and taken steps to stimulate growth and investment particularly in infrastructure. The GDP growth rate was 5.5% in 2006, 6.2% in 2007. It is estimated at 6.1% in 2008. However, there is growing disillusionment with the slow pace of economic reform (e.g. labour reforms have been abandoned due to strong opposition from trade unions) and a failure to create jobs (unemployment rate is still around 10%). The economy faces two major challenges: huge external debt (nearly 45% of the GDP) and high rate of inflation. But is has been reduiced to 6% in 2007.

Main branches of industry

The agriculture sector contributes 14% to the country’s GDP and employs nearly 40% of the active population. Indonesia is one of the largest rubber producers in the world. Other major crops being rice, sugarcane, coffee, tea, tobacco, palm oil, coconuts and spices. Indonesia is the only Asian country to be an OPEC member and supplies 5% of OPEC's production, however it is still a net oil importer. It has great timberlands and is a major exporter of timber. Industries contribute around 40% to GDP. The industrial sector includes manufacturing of textiles, cement, chemical fertilizers, electronics, rubber tyres, and clothes & shoes (most of these for the U.S. market). Wood processing is also a major activity. Banking sector is well developed. The Islamic ‘Sharia’ banking has grown rapidly during recent years. Tourism is a major source of revenue generation, but it has suffered due to Bali & Jakarta attacks as well as the 2004 tsunami. The services sector contributes around 45% to GDP.

International trade

Indonesia is a member of WTO and ASEAN (Association of Southeast Asian nations). Share of foreign trade in country’s GDP was more than 70% in 2006. Indonesia’s top three export partners are: Japan, the USA and Singapore. The commodities mainly exported are mineral fuels & oils, electrical equipment, animal and vegetable fats & oils, nuclear reactors & boilers, and rubber. Its top three import partners are: Singapore, Japan, and China. The commodities mainly imported are mineral fuels & oils, nuclear reactors & boilers, iron & steel, electric & electronic equipment, and organic chemicals.