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.

2. 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

3. 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

4. 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. 

5. What is the currency called?

Indonesian Rupiah (IDR)

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

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

7. What is the exchange rate now?

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

8. 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.)

9. 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.)

10. What is the political regime in the country?

Republic

11. 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

12. 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).

13. What is the investment climate?

Source: World Bank, 2005 (http://rru.worldbank.org/DoingBusiness/ExploreEconomies/BusinessClimateSnapshot.aspx?economyid=90)

14. What is the state of the economy?

Indonesia, a vast polyglot nation, faces economic development problems stemming from recent acts of terrorism, unequal resource distribution among regions, endemic corruption, the lack of reliable legal recourse in contract disputes, weaknesses in the banking system, and a generally poor climate for foreign investment. Indonesia withdrew from its IMF program at the end of 2003, but issued a "White Paper" that commits the government to maintaining fundamentally sound macroeconomic policies previously established under IMF guidelines. Investors, however, continued to face a host of on-the-ground microeconomic problems and an inadequate judicial system. Keys to future growth remain internal reform, building up the confidence of international and domestic investors, and strong global economic growth.

Debt - external:  $132.9 billion (2003 est.)

Economic aid - recipient:  $43 billion Indonesia finished its IMF program in

      December 2003 but still receives bilateral aid through

      the Consultative Group on Indonesia (CGI), which

      pledged $2.8 billion in grants and loans for 2004. (2003

      est.)

Oil - production:  1.451 million bbl/day (2001 est.)

Oil - consumption:  1.045 million bbl/day (2001 est.)

Oil - proved reserves:  7.083 billion bbl (1 January 2002)

Natural gas - production:  69 billion cu m (2001 est.)

Natural gas - consumption:  36.2 billion cu m (2001 est.)

Natural gas - exports:  32.8 billion cu m (2001 est.)

Natural gas - imports:  0 cu m (2001 est.)

Natural gas - proved reserves:  2.549 trillion cu m (1 January 2002)

Agriculture - products: rice, cassava (tapioca), peanuts, rubber, cocoa, coffee,

 palm oil, copra, poultry, beef, pork, eggs

Exports:  $63.89 billion f.o.b. (2003 est.)

Exports - commodities:  oil and gas, electrical appliances, plywood, textiles,

   rubber

Exports - partners:  Japan 21.1%, US 13.2%, Singapore 9.4%, South Korea 7.2%,

       China 5.1% (2002)

Imports:  $40.22 billion f.o.b. (2003 est.)

Imports - commodities:  machinery and equipment, chemicals, fuels, foodstuffs

Imports - partners:  Japan 14.1%, Singapore 13.1%, US 8.5%, China 7.8%, South

        Korea 5.3%, Australia 5.1% (2002 est.))

15. What are the major industries with which the country is famous for?

Petroleum and natural gas, textiles, apparel, footwear, mining, cement, chemical fertilizers, plywood, rubber, food, tourism.

16. Are there any laws forbidding foreigners from investing or buying property in the country?

17. Are there other laws restricting foreigners in any other way?

18. Is there corruption in the country and how it is dealt with it?

19. What is a must when doing business in the country?

20. What should be avoided when doing business in the country?

21. Is the country a part of any trade blocks or country unions?

22. What are some major things to know about the culture?

23. Useful links with country specific information.

US- ASEAN Business Council, INC.

http://www.us-asean.org

Department of Foreign Affairs of Republic Indonesia

http://www.deplu.go.id

World Bank

BPS Statistic Indonesia

http://www.bps.go.id/index.shtml