3862259
consulate(s) general: Medan, Surabaya

Flag: 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

@Indonesia:Economy

Overview: Indonesia is a mixed economy with some socialist
institutions and central planning but with a recent emphasis on
deregulation and private enterprise. Indonesia has extensive natural
wealth, yet, with a large and rapidly increasing population, it
remains a rather poor country. Real GDP growth in 1985-94 averaged
about 6%, quite impressive, but not sufficient to both slash
underemployment 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
1992-94 has matched the government target of 6%-7% annual growth.

National product: GDP - purchasing power parity - $619.4 billion (1994
est.)

National product real growth rate: 6.7% (1994 est.)

National product per capita: $3,090 (1994 est.)

Inflation rate (consumer prices): 9.3% (1994 est.)

Unemployment rate: 3% official rate; underemployment 40% (1994 est.)

Budget:
revenues: $32.8 billion
expenditures: $32.8