Economy
Economy - overview: Indonesia's sound macroeconomic management, combined with an emphasis on rapid deregulation and encouragement of private investment resulted in real GDP growth in 1991-96 averaging about 7%. This was impressive, but not sufficient to cut underemployment while absorbing the 2.3 million workers annually entering the labor force. Foreign investment has boosted manufacturing output and exports in recent years. The economy's growth is driven by continuing expansion of nonoil exports. Plantation crops - rubber and palm oil - and textiles and plywood are being encouraged for both export and job generation. Industrial output is based on diverse natural resources, including crude oil, natural gas, timber, metals, and coal. Japan remains Indonesia's most important customer and supplier of aid. Growth in 1996 was led by industry, transport, and tourism. Strong growth should continue in 1997 assuming no sharp rise in political uncertainty.
GDP: purchasing power parity - $779.7 billion (1996 est.)
GDP - real growth rate: 7% (1996 est.)
GDP - per capita: purchasing power parity - $3,770 (1996 est.)
GDP - composition by sector: agriculture : 17% industry: 42% services: 41% (1995 est.)
Inflation rate - consumer price index: 7% (1996 est.)
Labor force: total: 67 million by occupation: agriculture 55%, manufacturing 10%, construction 4%, transport and communications 3%, other 28% (1985 est.)
Unemployment rate: 3% official rate; underemployment 40% (1994 est.)
Budget: revenues: $41.5 billion expenditures: $41.5 billion, including capital expenditures of $16 billion (FY97/98 est.)