. Agriculture has been the country's largest employer
Gross Domestic Product (GDP)
for 2007 is US$408 billion (US$1,038 bn
In 2007, estimated nominal
per capita GDP
is US$1,812, and per capita GDP PPP was US$4,616
is the economy's largest and accounts for 45.3% of
GDP (2005). This is followed by
agriculture employs more people than other sectors, accounting for 44.3% of the 95 million-strong
workforce. This is followed by the services sector (36.9%) and industry (18.8%).
include petroleum and natural gas, textiles, apparel, and mining. Major agricultural products include
palm oil, rice, tea, coffee, spices, and rubber.
Indonesia's main export markets are Japan (22.3% of Indonesian exports in 2005), the United States
(13.9%), China (9.1%), and Singapore (8.9%). The major suppliers of imports to Indonesia are Japan
(18.0%), China (16.1%), and Singapore (12.8%). In 2005, Indonesia ran a
revenues of US$83.64 billion and
expenditure of US$62.02 billion. The country has extensive
natural resources, including crude oil, natural gas, tin, copper, and gold. Indonesia's major imports include
machinery and equipment, chemicals, fuels, and foodstuffs.
, the capital of Indonesia and its largest commercial center
In the 1960s, the economy deteriorated drastically as a result of political instability, a young and
inexperienced government, and ill-disciplined economic nationalism, which resulted in severe poverty and
Following President Sukarno's downfall in the mid-1960s, the New Order administration brought
a degree of discipline
to economic policy that quickly brought inflation down, stabilized the currency,
, and attracted foreign aid and investment.
Indonesia is Southeast Asia's only
, and the 1970s oil price raises provided an export revenue windfall that contributed to
sustained high economic growth rates.
Following further reforms in the late 1980s,
flowed into Indonesia, particularly into the rapidly developing export-orientated
from 1989 to 1997, the Indonesian economy grew by an average of over 7%.
Indonesia was the country hardest hit by the
East Asian financial crisis
of 1997–98. Against the US dollar,
the currency dropped from about Rp. 2,000 to Rp. 18,000, and the economy shrunk by 13.7%.
has since stabilized at around Rp. 10,000, and there has been a slow but significant economic
recovery. Political instability since 1998, slow economic reform, and corruption at all levels of government
and business, have contributed to the patchy nature of the recovery.