ECONOMY

General Information

The main currency of Indonesia is IDR – Indonesian rupiah (Rp).

Among the key priorities of the country's socio-economic development are reducing the poverty level, improving the quality of education and healthcare, developing infrastructure, stimulating the digital economy, and increasing the share of renewable energy sources.

According to World Bank estimates, Indonesia's GDP in 2023 reached 1,39 trillion US dollars. The country's share in the world economy is approximately 1,3%.

The structure of the economy is distributed as follows: approximately 44% of GDP is formed by the service sector, 43% – by industry, and 13% – by agriculture.

The main sources of foreign currency earnings remain the export of natural resources, including coal (46,2 bil. dollars in 2022), palm oil (29,3 bil.), and natural gas, as well as tourism (revenue of approximately 14 bil. dollars in 2023).

In the service sector, financial activities, trade, and tourism focused on natural attractions such as Bali play a significant role. Industry is concentrated on the extractive sector, agricultural processing, textile production, and electronics.

Special attention is paid to the development of energy, including expansion of the use of geothermal resources and solar energy, as well as modernization of the oil and gas complex.

Share of Economic Sectors

Indonesia's economy is based on three key sectors: services, industry, and agriculture.

The service sector forms approximately 44% of GDP, including tourism (up to 4,5% of GDP), financial services, and trade. Tourism, focused on natural attractions such as Bali Island, brought in approximately 14 billion dollars in revenue in 2023. Remittances from citizens working abroad added 9,2 billion dollars in 2022.

The industrial sector accounts for 43% of GDP. The extractive industry, including coal (46,2 bil. dollars of exports in 2022) and natural gas, provides a significant portion of revenue. Manufacturing, with a share of 20% of GDP, is represented by agricultural processing (palm oil – 29,3 bil. dollars in 2022), textiles, and electronics. The energy sector is actively developing geothermal and solar projects while maintaining dependence on coal.

Agriculture, despite a reduction in its share of GDP to 13%, remains important for the employment of 28% of the population. Indonesia is the world's largest producer of palm oil and also exports rubber, cocoa, and coffee.

Foreign trade in 2023 reached an export volume of 291,2 billion dollars with imports of 223,1 billion dollars. Main export items are mineral fuels, vegetable oils, and electrical equipment. Imports include machinery, chemical products, and petroleum products. Key trading partners are China, USA, Japan, and India (exports), as well as China, Singapore, and South Korea (imports).

Export and Import

Exports form approximately 21% of Indonesia's GDP. Key export items are:

Mineral fuels, including coal and LNG (35%);
Vegetable oils, predominantly palm oil (15%);
Electrical equipment and machinery (10%);
Rubber and rubber products (5%);
Textiles and clothing (4%).

Among other exported goods are: metals and ores (6%), food industry products, including coffee and cocoa (3%), as well as wood and paper (2%).

Main export partners: China, USA, Japan, India, Singapore.

The largest share of imported products consists of machinery and equipment (25%), chemical goods (18%), and mineral fuels, including oil (15%).

A significant part of imports is formed by:

Ferrous and non-ferrous metals (12%);
Vehicles and spare parts (8%);
Plastics and plastic products (7%);
Electronic components (6%);
Pharmaceutical products (4%).

Main import partners: China, Singapore, Japan, South Korea, USA.

Labor Force

Indonesia's labor force as of 2023 is approximately 144 mil. people, which corresponds to 52% of the country's total population. The unemployment rate for 2023 decreased to 5.45%.

The distribution of employment by economic sectors demonstrates a balanced structure:

Agriculture provides employment for 28% of the working population, maintaining an important social role despite its share of GDP at 13%.
The industrial sector, including dynamically developing extractive and manufacturing industries, accounts for 22% of the labor force, while forming 43% of GDP due to high productivity.
The service sector is the largest employer with a share of 50%, reflecting the development of modern economic sectors.

The average monthly wage in the formal sector reached 4.3 mil. Indonesian rupiah (approximately 280 US dollars), demonstrating steady growth.

Indonesia's labor market is characterized by:

Dynamic labor force structure with a predominance of youth;
Wide opportunities for professional development in various economic sectors.