Diplomatic representation in the US:
chief of mission: Ambassador DORODJATUN Kuntoro-Jakti
chancery: 2020 Massachusetts Avenue NW, Washington, DC 20036
consulate(s) general: Chicago, Houston, Los Angeles, New York, and
San Francisco
Diplomatic representation from the US:
chief of mission: Ambassador J. Stapleton ROY
embassy: Medan Merdeka Selatan 5, Jakarta
mailing address: Unit 8129, Box 1, APO AP 96520
consulate(s) general: Surabaya
Flag description: two equal horizontal bands of red (top) and white; similar to the flag of Monaco, which is shorter; also similar to the flag of Poland, which is white (top) and red
Economy
Economy—overview: The collapse of the rupiah in late 1997 and early 1998 caused GDP to contract by an estimated 13.7% in 1998 because of Indonesian firms' reliance on short-term dollar-denominated debt and high levels of nonperforming loans in the banking sector. The Indonesian Government initially wavered on meeting the conditions it agreed to in exchange for a $42 billion IMF assistance package, contributing to further loss in investor confidence and outflows of capital. Riots that in many cases targeted ethnic Chinese business owners also set back chances that Indonesia would quickly stabilize its financial crisis and contributed to President SOEHARTO's resignation on 21 May 1998. His successor, B.J. HABIBIE, improved cooperation with the IMF. The money supply—which expanded rapidly early in the year to prop up banks hit by deposit runs—was tightened within a few months, and by October, inflation—which reached a 77% annual rate—was significantly dampened. The government also announced a bank recapitalization program in late 1998, but by early 1999 the plan faced growing challenges over its reliance on public funds. Doubts about whether the program is adequate underlie forecasts of continued—although much less severe—GDP contraction for 1999. Signs of spreading unrest and sectarian violence and concern that social instability will increase as the 7 June 1999 national election approaches also contribute to pessimism about the economy, particularly because foreign investors remain reluctant to begin to increase capital inflows again. The next government will face the challenge of establishing a macroeconomic policy framework that addresses longstanding grievances and inequities underlying much of the current unrest without hampering an economic recovery.
GDP: purchasing power parity—$602 billion (1998 est.)
GDP—real growth rate: -13.7% (1998 est.)
GDP—per capita: purchasing power parity?$2,830 (1998 est.)
GDP—composition by sector: agriculture: 18.8% industry: 40.3% services: 40.9% (1998 est.)
Population below poverty line: NA%