Indonesia has a mixed economy in which both the private sector and government play significant roles. The country is the largest economy in Southeast Asia and a member of the G-20 major economies. Indonesia's estimated gross domestic product (nominal), as of 2010 was US$706.73 billion with estimated nominal per capita GDP was US$3,015, and per capita GDP PPP was US$4,394 (international dollars). June 2011: At World Economic Forum on East Asia, Indonesian president said Indonesia will be in the top ten countries with the strongest economy within the next decade. The Gross domestic product (GDP) is almost Rp.1 trillion ($117.6 million) and the debt ratio to the GDP is 26 percent. The industry sector is the economy's largest and accounts for 46.4% of GDP (2010), this is followed by services (37.1%) and agriculture (16.5%). However, since 2010, service sector has employed more people than other sectors, accounting 48.9% of the total labor force, this has been followed by agriculture (38.3%) and industry (12.8%). Agriculture, however, had been the country's largest employer for centuries.
According to World Trade Organization data, Indonesia was the 27th biggest exporting country in the world in 2010, moving up three places from a year before. Indonesia's main export markets (2009) are Japan (17.28%), Singapore (11.29%), the United States (10.81%), and China (7.62%). The major suppliers of imports to Indonesia are Singapore (24.96%), China (12.52%), and Japan (8.92%). In 2005, Indonesia ran a trade surplus with export revenues of US$83.64 billion and import 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. And the country's major export commodities include oil and gas, electrical appliances, plywood, rubber, and textiles.
In the 1960s, the economy deteriorated drastically as a result of political instability, a young and inexperienced government, and economic nationalism, which resulted in severe poverty and hunger. By the time of Sukarno's downfall in the mid-1960s, the economy was in chaos with 1,000% annual inflation, shrinking export revenues, crumbling infrastructure, factories operating at minimal capacity, and negligible investment. 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, rescheduled foreign debt, and attracted foreign aid and investment. (See Berkeley Mafia). Indonesia was until recently Southeast Asia's only member of OPEC, and the 1970s oil price raises provided an export revenue windfall that contributed to sustained high economic growth rates, averaging over 7% from 1968 to 1981. Following further reforms in the late 1980s, foreign investment flowed into Indonesia, particularly into the rapidly developing export-oriented manufacturing sector, and from 1989 to 1997, the Indonesian economy grew by an average of over 7%.
Indonesia was the country hardest hit by the Asian financial crisis of 1997–98. Against the US dollar, the rupiah dropped from about Rp. 2,600 to a low point of 14,000, and the economy shrank by 13.7%. The Rupiah stabilised in the Rp. 8,000 to 10,000 range, and a slow but significant economic recovery has ensued. However, political instability, slow economic reform, and corruption slowed the recovery. Transparency International, for example, has since ranked Indonesia below 100 in its Corruption Perceptions Index.Nevertheless, GDP growth averaged 5% between 2004 and 2006. The Growth, unfortunately, was not able to make a widely real impact toward unemployment and poverty, particularly due to the stagnant wages and rapid hikes in food, oil and gas price. Since 2007, however, with the improvement in banking sector and domestic consumption, the national economic growth has been 6% annually and this helped the country weather the 2008–2009 global recession. As of 2010, an estimated 13.3% of the population was living below poverty line, and the unemployment rate was 7.1%.
The population of Indonesia according to the 2010 national census is 237.6 million, with population growth still high at 1.9 percent. 58% living on the island of Java, the world's most populous island. Despite a fairly effective family planning program that has been in place since the 1960s, the population is expected to grow to around 254 million by 2020 and 288 million by 2050.
There are around 300 distinct native ethnicities in Indonesia, and 742 different languages and dialects. Most Indonesians are descended from Austronesian-speaking peoples whose languages can be traced to Proto-Austronesian (PAn), which possibly originated in Taiwan. Another major grouping are Melanesians, who inhabit eastern Indonesia. The largest ethnic group is the Javanese, who comprise 42% of the population, and are politically and culturally dominant. The Sundanese, ethnic Malays, and Madurese are the largest non-Javanese groups. A sense of Indonesian nationhood exists alongside strong regional identities.Society is largely harmonious, although social, religious and ethnic tensions have triggered horrendous violence. Chinese Indonesians are an influential ethnic minority comprising 3–4% of the population.Much of the country's privately owned commerce and wealth is Chinese-Indonesian-controlled, which has contributed to considerable resentment, and even anti-Chinese violence.
The official national language, Indonesian, a form of Malay, is universally taught in schools, and consequently is spoken by nearly every Indonesian. It is the language of business, politics, national media, education, and academia. It is based on the prestige dialect of Malay, that of theJohor-Riau Sultanate, which for centuries had been the lingua franca of the archipelago, standards of which are the official languages in Singapore, Malaysia and Brunei. It was promoted by Indonesian nationalists in the 1920s, and declared the official language under the name Bahasa Indonesia on the proclamation of independence in 1945. Most Indonesians speak at least one of the several hundred local languages and dialects, often as their first language. Of these, Javaneseis the most widely spoken as the language of the largest ethnic group. On the other hand, Papua has over 270 indigenous Papuan and Austronesian languages, in a region of about 2.7 million people.
While religious freedom is stipulated in the Indonesian constitution, the government officially recognizes only six religions: Islam, Protestantism, Roman Catholicism, Hinduism, Buddhism, and Confucianism. Although it is not an Islamic state, Indonesia is the world's most populous Muslim-majority nation, with 86.1% of Indonesians were Muslim according to the 2000census. On May 21, 2011 the Indonesian Sunni-Shia Council (MUHSIN) was established. The council aims to hold gatherings, dialogues and social activities. It was the answer of violence committed in the name of religion. The majority of Muslims in Indonesia are Sunni. 9% of the population was Christian, 3% Hindu, and 2% Buddhist or other. Most Indonesian Hindus are Balinese, and most Buddhists in modern-day Indonesia are ethnic Chinese. Though now minority religions, Hinduism and Buddhism remain defining influences inIndonesian culture. Islam was first adopted by Indonesians in northern Sumatra in the 13th century, through the influence of traders, and became the country's dominant religion by the 16th century. Roman Catholicism was brought to Indonesia by early Portuguese colonialists and missionaries, and the Protestant denominations are largely a result of Dutch Calvinist and Lutheran missionary efforts during the country's colonial period. A large proportion of Indonesians—such as the Javanese abangan, Balinese Hindus, and Dayak Christians—practice a less orthodox, syncretic form of their religion, which draws on local customs and beliefs.
Indonesia has about 300 ethnic groups, each with cultural identities developed over centuries, and influenced by Indian, Arabic, Chinese, and European sources. Traditional Javanese and Balinese dances, for example, contain aspects of Hindu culture and mythology, as do wayang kulit (shadow puppet) performances. Textiles such as batik,ikat and songket are created across Indonesia in styles that vary by region. The most dominant influences on Indonesian architecture have traditionally been Indian; however, Chinese, Arab, and European architectural influences have been significant.
Sports in Indonesia are generally male-orientated and spectator sports are often associated with illegal gambling. The most popular sports are badminton andfootball. Indonesian players have won the Thomas Cup (the world team championship of men's badminton) thirteen of the twenty-six times that it has been held since 1949, as well as numerous Olympic medals since the sport gained full Olympic status in 1992. Its women have won the Uber Cup, the female equivalent of the Thomas Cup, twice, in 1994 and 1996. Liga Indonesia is the country's premier football club league. Traditional sports include sepak takraw, and bull racing in Madura. In areas with a history of tribal warfare, mock fighting contests are held, such as, caci in Flores, and pasola in Sumba. Pencak Silat is an Indonesian martial art.
Indonesian cuisine varies by region and is based on Chinese, European, Middle Eastern, and Indian precedents. Rice is the main staple food and is served with side dishes of meat and vegetables. Spices (notably chili), coconut milk, fish and chicken are fundamental ingredients. Indonesian traditional music includes gamelan and keroncong. Dangdut is a popular contemporary genre of pop music that draws influence from Arabic, Indian, and Malay folk music. The Indonesian film industry's popularity peaked in the 1980s and dominated cinemas in Indonesia, although it declined significantly in the early 1990s. Between 2000 and 2005, the number of Indonesian films released each year has steadily increased.
The oldest evidence of writing in Indonesia is a series of Sanskrit inscriptions dated to the 5th century CE. Important figures in modern Indonesian literature include: Dutch author Multatuli, who criticized treatment of the Indonesians under Dutch colonial rule; Sumatrans Muhammad Yamin and Hamka, who were influential pre-independence nationalist writers and politicians; and proletarian writerPramoedya Ananta Toer, Indonesia's most famous novelist. Many of Indonesia's peoples have strongly rooted oral traditions, which help to define and preserve their cultural identities.
Media freedom in Indonesia increased considerably after the end of President Suharto's rule, during which the now-defunct Ministry of Information monitored and controlled domestic media, and restricted foreign media. The TV market includes ten national commercial networks, and provincial networks that compete with public TVRI. Private radio stations carry their own news bulletins and foreign broadcasters supply programs. At a reported 25 million users in 2008, Internet usage was estimated at 12.5% in September 2009.
More than 30 million cell phones are sold in Indonesia each year, and 27 percent of them are local brands.
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