oyment and absorb the 2.3
million workers annually entering the labor force. Agriculture,
including forestry and fishing, is an important sector, accounting for
21% of GDP and over 50% of the labor force. The staple crop is rice.
Once the world's largest rice importer, Indonesia is now nearly
self-sufficient. Plantation crops - rubber and palm oil - and textiles
and plywood are being encouraged for both export and job generation.
Industrial output now accounts for almost 40% of GDP and is based on a
supply of diverse natural resources, including crude oil, natural gas,
timber, metals, and coal. Foreign investment has also boosted
manufacturing output and exports in recent years. Indeed, the
economy's growth is highly dependent on the continuing expansion of
nonoil exports. Japan remains Indonesia's most important customer and
supplier of aid. Rapid growth in the money supply in 1989-90 prompted
Jakarta to implement a tight monetary policy in 1991, forcing the
private sector to go to foreign banks for investment financing. Real
interest rates remained above 10% and off-shore commercial debt grew.
The growth in off-shore debt prompted Jakarta to limit foreign
borrowing beginning in late 1991. Despite the continued problems in
moving toward a more open financial system and the persistence of a
fairly tight credit situation, GDP growth in 1992 and 1993 has matched
the government target of 6%-7% annual growth.
National product:
GDP - purchasing power equivalent - $571 billion (1993 est.)
National product real growth rate:
6.5% (1993 est.)
National product per capita:
$2,900 (1993 est.)
Inflation rate (consumer prices):
10% (1993 est.)
Unemployment rate:
3% official rate; underemployment 45% (1993 est.)
Budget:
revenues:
$32.8 billion
expenditures:
$32.8 billion, including capital expenditures of $12.9 billion (FY95)
Exports:
$38.2 billion (f.o.b., 1993 est.)
commodities:
petroleum and gas 28%, clothing and fabrics 15%, plywood 11%, footwear
4% (1992)
partners:
Japan 32%, US 13%, Singapore 9%, South Korea 6% (1992)
Imports:
$28.3 billion (f.o.b., 1993 est.)
commodities:
machinery 37%, semi-finished goods 16%, chemicals 14%, raw materials
10%, transport equipment 7%, food stuffs 6%, petroleum products 4%,
consumer goods 3% (1992)
partners:
Japan 22%, US 14%, Germany 8%, South Korea 7%, Singapore 6%, Australia
5%, Taiwan 5% (1992)
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