including tax and customs reforms, the introduction of
Treasury bills, and improved capital market supervision. Indonesia's
new investment law, passed in March 2007, seeks to address some of
the concerns of foreign and domestic investors. Indonesia still
struggles with poverty and unemployment, inadequate infrastructure,
corruption, a complex regulatory environment, and unequal resource
distribution among regions. Indonesia has been slow to privatize
over 100 state-owned enterprises, several of which have monopolies
in key sectors. The non-bank financial sector, including pension
funds and insurance, remains weak. Capital markets are
underdeveloped. The high global price of oil in 2007 increased the
cost of domestic fuel and electricity subsidies, and are
contributing to concerns about higher food prices. Located on the
Pacific "Ring of Fire" Indonesia remains vulnerable to volcanic and
tectonic disasters. Significant progress has been made in rebuilding
Aceh after the devastating December 2004 tsunami, and the province
now shows more economic activity than before the disaster.
Unfortunately, Indonesia suffered new disasters in 2006 and early
2007 including: a major earthquake near Yogyakarta, an industrial
accident in Sidoarjo, East Java that created a "mud volcano," a
tsunami in South Java, and major flooding in Jakarta, all of which
caused additional damages in the billions of dollars. Donors are
assisting Indonesia with its disaster mitigation and early warning
efforts.

GDP (purchasing power parity):

$843.7 billion (2007 est.)

GDP (official exchange rate):

$432.9 billion (2007 est.)

GDP - real growth rate:

6.3% (2007 est.)

GDP - per capita (PPP):

$3,600 (2007 est.)

GDP - composition by sector:

agriculture: 13.8%
industry: 46.7%
services: 39.4% (2007 est.)

Labor force:

109.9 million (2007 est.)

Labor force - by occupation:

agriculture: 43.3%
industry: 18%
services: 38.7% (2004 est.)

Unemployment rate:

9.1% (2007 est.)

Population below poverty line:

17.8% (2006)

Household income or consumption by percentage share:

lowest 10%: 3.6%
highest 10%: 28.5% (2002)

Distribution of family income - Gini index:

36.3 (2005)

Investment (gross fixed):

24.9% of GDP (2007 est.)

Budget:

revenues: $79.56 billion
expenditures: $84.87 billion (2007 est.)

Fiscal year:

calendar year

Public debt:

34% of GDP (2007 est.)

Inflati