Indonesia

  1. When was the country established?

The Indonesian islands were formed during the Miocene period about 15 million years ago. Indonesia got independence on August 17, 1945.

 

  1. Where is the country situated?

Indonesia is the largest archipelago in the world, lies along the equator at the crossroads of Asia and Australia: north of Indonesia are Malaysia, Brunei Darussalam and Philippine; south of Indonesia is Australia; east of Indonesia is Papua Guinea; west of Indonesia are Singapore and Malaysia

 

  1. What is the population? (Estimated in July 2004).

Population:  238,452,952

Age structure:  0-14 years: 29.4% (male 35,635,790; female 34,416,854)

15-64 years: 65.5% (male 78,097,767; female 78,147,909)

65 years and over: 5.1% (male 5,308,986; female 6,845,646)

Median age:      total: 26.1 years

male: 25.7 years

female: 26.6 years (2004 est.)

Population growth rate:  1.49% (2004 est.)

Birth rate:  21.11 births/1,000 

Death rate:  6.26 deaths/1,000 

Net migration rate:  0 migrant(s)/1,000 

Infant mortality rate:      total: 36.82 deaths/1,000 live births

female: 31.29 deaths/1,000 live births (2004 est.)         

male: 42.09 deaths/1,000 live births

Life expectancy at birth:            total population: 69.26 years

male: 66.84 years

female: 71.8 years (2004 est.)

Total fertility rate:  2.47 children born/woman (2004 est.)

HIV/AIDS - adult prevalence rate:  0.1% (2001 est.)

HIV/AIDS - people living with HIV/AIDS:  120,000 (2001 est.)

HIV/AIDS - deaths:  4,600 (2001 est.)

Ethnic groups:  Javanese 45%, Sundanese 14%, Madurese 7.5%, coastal Malays 7.5%, other 26%

Religions:  Muslim 88%, Protestant 5%, Roman Catholic 3%, Hindu 2%, Buddhist 1%, other 1% (1998)

Languages:  Bahasa Indonesia (official, modified form of Malay), English, Dutch, local dialects, the most widely spoken of which is Javanese

 

  1. What is/are the official language(s)?

There are about 500 languages and dialects spoken in the archipelago. There normally belong to the different ethnic groups of the population. Some of the distinctly different local languages are: Acehnese, Batak, Sundanese, Javanese, Sasak, Dayak, Minahasa, Toraja, Buginese, Halmahera, Ambonese, Ceramese, and several Irianese languages. To make the picture even more colorful, these languages are also spoken in different dialects. 

The national language of Indonesia is "Bahasa Indonesia". Originally it was the Malay language mainly spoken in the Riau Islands. In its spread throughout the country, its vocabulary and idioms have been enriched by a great number of local languages. 

To keep pace with religious, social and cultural progress, many words and terms have been derived from foreign languages, including Dutch, Chinese, Sanskrit, Arabic and, later, Portuguese.

Although Bahasa Indonesia has become the lingua franca, local languages and dialects continue to be spoken and will not be abolished. 

  1. What is the currency called?

Indonesian Rupiah (IDR)

 

  1. What was the exchange rate between the domestic currency and other major currencies in the past year?

Rates as of 2005.01.25 17:00:38 GMT. Base currency is IDR Indonesia Rupiahs.

 

Currency Unit

IDR per Unit

Units per IDR

DZD

Algeria Dinars

126.785

0.00788738

USD

United States Dollars

9,148.79

0.000109304

ARS

Argentina Pesos

3,086.12

0.000324032

AUD

Australia Dollars

6,990.89

0.000143043

ATS

Austria Schillings **

861.211

0.00116116

BSD

Bahamas Dollars

9,148.79

0.000109304

BBD

Barbados Dollars

4,489.10

0.000222762

BEF

Belgium Francs **

293.767

0.00340406

BMD

Bermuda Dollars

9,148.79

0.000109304

BRL

Brazil Reais

3,414.60

0.000292860

GBP

United Kingdom Pounds

17,053.20

0.0000586400

BGN

Bulgaria Leva

6,105.10

0.000163798

CAD

Canada Dollars

7,388.08

0.000135353

CLP

Chile Pesos

15.6604

0.0638554

CNY

China Yuan Renminbi

1,105.39

0.000904655

CYP

Cyprus Pounds

20,326.14

0.0000491977

CZK

Czech Republic Koruny

393.777

0.00253951

DKK

Denmark Kroner

1,592.33

0.000628011

XCD

East Caribbean Dollars

3,394.73

0.000294574

EGP

Egypt Pounds

1,563.91

0.000639422

EUR

Euro

11,850.53

0.0000843844

FJD

Fiji Dollars

5,503.00

0.000181719

FIM

Finland Markkaa **

1,993.12

0.000501727

FRF

France Francs **

1,806.60

0.000553526

DEM

Germany Deutsche Marks **

6,059.08

0.000165042

XAU

Gold Ounces

3,859,558.85

0.000000259097

GRD

Greece Drachmae **

34.7778

0.0287540

HKD

Hong Kong Dollars

1,173.05

0.000852481

HUF

Hungary Forint

48.1700

0.0207598

ISK

Iceland Kronur

145.705

0.00686317

INR

India Rupees

209.211

0.00477986

IDR

Indonesia Rupiahs

1.00000

1.00000

IEP

Ireland Pounds **

15,047.07

0.0000664581

ILS

Israel New Shekels

2,073.01

0.000482391

ITL

Italy Lire **

6.12029

0.163391

JMD

Jamaica Dollars

148.540

0.00673218

JPY

Japan Yen

87.7956

0.0113901

JOD

Jordan Dinars

12,903.80

0.0000774966

LBP

Lebanon Pounds

6.03303

0.165754

LUF

Luxembourg Francs **

293.767

0.00340406

MYR

Malaysia Ringgits

2,407.71

0.000415333

MXN

Mexico Pesos

809.070

0.00123599

NZD

New Zealand Dollars

6,483.96

0.000154227

NOK

Norway Kroner

1,443.45

0.000692783

NLG

Netherlands Guilders **

5,377.53

0.000185959

PKR

Pakistan Rupees

154.384

0.00647736

PHP

Philippines Pesos

165.051

0.00605872

XPT

Platinum Ounces

7,889,810.69

0.000000126746

PLN

Poland Zlotych

2,908.77

0.000343788

PTE

Portugal Escudos **

59.1102

0.0169176

ROL

Romania Lei

0.316562

3.15894

RUB

Russia Rubles

326.451

0.00306325

SAR

Saudi Arabia Riyals

2,439.54

0.000409914

XAG

Silver Ounces

61,118.84

0.0000163616

SGD

Singapore Dollars

5,574.86

0.000179377

SKK

Slovakia Koruny

307.275

0.00325441

ZAR

South Africa Rand

1,531.68

0.000652879

KRW

South Korea Won

8.87405

0.112688

ESP

Spain Pesetas **

71.2231

0.0140404

XDR

IMF Special Drawing Rights

13,910.10

0.0000718902

SDD

Sudan Dinars

35.7382

0.0279813

SEK

Sweden Kronor

1,305.21

0.000766162

CHF

Switzerland Francs

7,647.30

0.000130765

TWD

Taiwan New Dollars

287.021

0.00348407

THB

Thailand Baht

237.903

0.00420339

TTD

Trinidad and Tobago Dollars

1,479.15

0.000676062

TRL

Turkey Liras **

0.00686074

145.757

VEB

Venezuela Bolivares

4.77096

0.209601

ZMK

Zambia Kwacha

1.93572

0.516604

 

 

 

 
       

Source: http://www.xe.com/ict/table.cgi

 

  1. What is the exchange rate now?

1 US dollar = 9,150.00 IDR (yahoo finance: January 25, 2005).

 

  1. What is the GDP?

GDP:  purchasing power parity - $758.1 billion (2003 est.)

GDP - real growth rate:  4% (2003 est.)

GDP - per capita:  purchasing power parity - $3,200 (2003 est.)

GDP - composition by sector:   agriculture: 15.9%

industry: 42.1%

services: 42% (2002 est.)

 

  1. What is the average income per capita?

Household income or consumption by percentage share: 

lowest 10%: 4%

highest 10%: 26.7% (1999)

Distribution of family income - Gini index:  37 (2001 est.)

Inflation rate (consumer prices):  6.9% (2003 est.)

 

  1. What is the political regime in the country?

Republic

 

  1. Which are the major political parties and which is in power now?

Crescent Moon and Star Party or PBB

Democratic Party or PD

Functional Groups or Golkar

Indonesia Democratic Party-Struggle or PDI-P

National Awakening Party or PKB

National Mandate Party or PAN

Prosperous Justice Party or PKS

United Development Party or PPP

 

  1. What is the business climate in general?

 

The World Bank says Indonesia's current business climate is one of the worst in the world. An unflinching column in the nation's largest newspaper lays out the bad news. The Jakarta Post says the World Bank ranks Indonesia along with Laos, Cambodia and Vietnam in the bottom quartile of 145 nations surveyed.

 

"Entrepreneurs in those countries found it more difficult to start, operate, or close a business than in most other East Asian nations," the newspaper said. "Seven economies in the East Asia-Pacific region ranked in the top quartile... New Zealand, Australia, Singapore, Hong Kong, Thailand, Taiwan and Malaysia."

 

In East Asia, on average, it takes an entrepreneur nine prosecures, 60 percent of income per capita and 61 days to found a business. In Indonesia it takes an average 151 days to get started. The World Bank has often noted that Indonesia has a messy legal system that makes it difficult for companies to know for sure where they stand. Even if they are meticulous about having all the necessary approvals, they face corruption. With so many friendlier nations nearby, investors usually decide to skip Indonesia and invest someplace else, though Indonesia is the world's fourth most populous nation.

 

Interestingly, what the World Bank suggests is something akin to what the City and County of Honolulu is currently setting up for development permits: one-stop shopping where a single office facilitates all the necessary approvals.

 

Source: American City Business Journals Inc (October 24, 2004).

 

  1. What is the investment climate?

The tables below provide a snapshot of the business climate in Indonesia by identifying specific regulations and policies that encourage or discourage investment, productivity, and growth. Key indicators are used to help measure the ease or difficulty of operating a business: starting a business, hiring and firing workers, registering property, getting credit, protecting investors, enforcing contracts, and closing a business. To compare the business climate of Indonesia with that of other economies, click on the topic name. Regional and high-income OECD averages are provided in each topic for comparison.


 


 

Symbols

.. means "not available"
— means "not applicable"



 

 

Economy Characteristics (2004)

Compare all economies | Methodology

 

Variable

Indonesia

Regional
Average

OECD
Average

Region

East Asia & Pacific

 

 

Income category

Lower middle income

 

 

GNI per capita (US$)

810

5,464

25,773

Informal economy (% GNI, 2003)

19.4

24.3

16.8

Population (millions)

214.5

139.5

41.5

 

Starting a Business (2004)

The challenges of launching a business in Indonesia are shown below through four measures: procedures required to establish a business, the associated time and cost, and the minimum capital requirement. Entrepreneurs can expect to go through 12 steps to launch a business over 151 days on average, at a cost equal to 130.7% of gross national income (GNI) per capita. They must deposit at least 125.6% of GNI per capita in a bank to obtain a business registration number, compared with the regional average of 100.5% of GNI and OECD average of 44.1% of GNI.
Compare all economies | Detailed data on Indonesia | Methodology

 

Indicator

Indonesia

Regional
Average

OECD
Average

Number of procedures

12

8

6

Time (days)

151

52

25

Cost (% of income per capita)

130.7

47.1

8.0

Min. capital (% of income per capita)

125.6

100.5

44.1

 

Hiring and Firing Workers (2004)

The difficulties that employers in Indonesia face in hiring and firing workers are shown below. Three indices measure how difficult it is to hire a new worker, how rigid the regulations are on working hours, and how difficult it is to dismiss a redundant worker. Conditions covered by the indices include: availability of part-time and fixed-term contracts, working time requirements, minimum wage laws, and minimum conditions of employment. Each index assigns values between 0 and 100, with higher values representing more rigid regulations. The overall Rigidity of Employment Index is an average of the three indices. For Indonesia, the overall index is 57, compared with the regional average of 24.4 and OECD average of 34.4. Firing costs are calculated on the basis of the number of weeks worth of salary in severance, notification and penalties that must be paid to dismiss a worker.
Compare all economies | Detailed data on Indonesia | Methodology

 

Indicator

Indonesia

Regional
Average

OECD
Average

Difficulty of Hiring Index

61

20.6

26.2

Rigidity of Hours Index

40

30.0

50.0

Difficulty of Firing Index

70

22.7

26.8

Rigidity of Employment Index

57

24.4

34.4

Firing costs (weeks of wages)

157

53.0

40.4

 

Registering Property (2004)

The ease with which businesses can secure rights to property is measured below using the following indicators: the number of procedures necessary to transfer a property title from the seller to the buyer, and the time and the costs as a percentage of the property value. In Indonesia, it takes 33 days to register property, compared with the regional average of 51.0 and OECD average of 34.
Compare all economies | Detailed data on Indonesia | Methodology

 

Indicator

Indonesia

Regional
Average

OECD
Average

Number of procedures

6

4

4

Time (days)

33

51

34

Cost (% of property per capita)

11.0

4.3

4.9

 

Getting Credit (2004)

Measures on credit information sharing and the legal rights of borrowers and lenders in Indonesia are shown below. One set of indicators measures the coverage, scope, quality and accessibility of credit information available through public and private registries. A second set measures how well collateral and bankruptcy laws facilitate lending. It ranges from 0-10, with higher scores indicating that those laws are better designed to expand access to credit. Indonesia has a score of 5, compared with the regional average of 5.4 and OECD average of 6.3. The Credit Information Index measures the scope, access and quality of credit information available through public registries or private bureaus. The index ranges from 0-6, with higher values indicating that more credit information is available from a public registry or private bureau. Indonesia has a score of 3, compared with the regional average of 2.0 and OECD average of 5.0.
Compare all economies | Detailed data on Indonesia | Methodology

 

Indicator

Indonesia

Regional
Average

OECD
Average

Cost to create collateral (% of income per capita)

2.5

1.9

5.2

Legal Rights Index

5

5.4

6.3

Credit Information Index

3

2.0

5.0

Public credit registry coverage
(borrowers per 1000 adults)

4

33.9

76.2

Private bureau coverage
(borrowers per 1000 adults)

0

67.3

577.2

 

Protecting Investors (2004)

The degree to which investors are protected through disclosure of ownership and financial information is measured below. The Disclosure Index captures seven ways of enhancing disclosure: information on family; indirect ownership; beneficial ownership; voting agreements between shareholders; audit committees reporting to the reporting to the board of directors; use of external auditors; and public a