Indonesia

 Indonesia is a country located in Southeastern Asia between the Indian Ocean and the Pacific Ocean. It has a strategic location astride major sea lanes and is an archipelago of 17,508 islands, some of which border Timor-Leste, Malaysia, and Papua New Guinea. The government system is a republic; the chief of state and the head of government is the president. Indonesia has a mixed economic system which includes a variety of private freedom, combined with centralized economic planning and government regulation. Indonesia is a member of the Asia-Pacific Economic Cooperation (APEC) and the Association of Southeast Asian Nations (ASEAN).

Population Population Growth Rate Age Dependency Ratio Urban Population Infant Mortality Rate Life Expectancy at Birth
273,523,621 (2020)
1.065 annual % (2020)
47.489 % of working-age population (2020)
56.641 % of total (2020)
20.2 per 1,000 live births (2019)
71.716 years (2019)

Business partners

Exporters

Select your indicators

Value imported in 2021 (USD thousand)

Trade balance 2021 (USD thousand)

Share in Indonesia’s imports (%)

World

195,712,409

32,518,755

100

China

56,225,920

-2,512,359

28.7

Singapore

15,413,410

-4,237,410

7.9

Japan

14,256,962

3,479,811

7.3

United States of America

11,305,846

14,360,087

5.8

Malaysia

9,450,874

2,458,500

4.8

Korea, Republic of

9,427,194

-1,018,266

4.8

Australia

9,415,081

-6,391,545

4.8

Thailand

9,118,600

-2,181,105

4.7

India

7,658,539

5,605,074

3.9

Taipei, Chinese

4,349,963

2,506,910

2.2

Importers

Select your indicators

Value exported in 2021 (USD thousand)

Trade balance 2021 (USD thousand)

Share in Indonesia’s exports (%)

World

228,231,164

32,518,755

100

China

53,713,561

-2,512,359

23.5

United States of America

25,665,933

14,360,087

11.2

Japan

17,736,773

3,479,811

7.8

India

13,263,613

5,605,074

5.8

Malaysia

11,909,374

2,458,500

5.2

Singapore

11,176,000

-4,237,410

4.9

Philippines

8,555,012

7,281,747

3.7

Korea, Republic of

8,408,928

-1,018,266

3.7

Thailand

6,937,495

-2,181,105

3

Taipei, Chinese

6,856,873

2,506,910

3

Most important cities

Indonesia’s most important cities are:
–  Jakarta
–  Surabaya
–  Bandung
–  Medan

Indonesian culture: Customs and traditions

 Indonesia is the largest Muslim-majority country in the world. It is also the biggest archipelago, consisting of over 17,500 islands. The dispersion of the islands means that distinct microcultures have developed to be regionally specific. Furthermore, over 300 ethnic groups are spread across Indonesia. The largest is the Javanese population (41%) that mostly occupies the island of Java. Others include, but are not limited to, the Sundanese, Malay, Batak, Madurese and Betawi people. Most ethnicities have languages, histories and cultures that pertain specifically to them. Hence, Indonesians tend to identify themselves locally foremost (according to their ethnicity, family or birthplace) before defining themselves nationally.

 An Indonesian’s regional, linguistic and ethnic background must be considered in order to fully understand that individual’s cultural influences. For instance, one can observe dominant Indonesian culture to largely reflect characteristics of Javanese and Islamic society. Yet, the Balinese population, occupying the Island of Bali, are mostly Hindu. They follow different customs and traditions, have an alternate religious calendar and are divergent from other ethnic populations in many other ways.

 Indonesia is also more collectivistic than Western societies. Individuals often perceive themselves to be members of ‘groups’ rather than autonomous actors. These groups reflect or come to define who its members are and often expect a high degree of loyalty. For example, the group’s interests usually supersede those of the individual, even if they conflict. Furthermore, group members expect to receive preferential treatment over anyone who is not part of the group. In return for this loyalty, an individual gains a sense of belonging, protection and unity. This is important as unity is considered essential to maintaining harmony among all the diverse populaces.

 Indonesian society is hierarchical, organized predominantly by age. One’s status, education and perceived power will demand degrees of deference, but age usually becomes the overriding factor determining the level of respect. Elders are presumed to have the most wisdom and are therefore considered the most deserving of authority. Indonesians may use honorific speech and bow slightly when talking to someone older than them. Women have full civil rights; the Islamic code that professes a separation between genders is not followed as stringently as it is in other Islamic countries. However, there is a distinct attitude in society that sees females as secondary to males.

Weather and Climate

 Indonesia’s climate is largely hot and humid, with rainfall occurring mostly in low-lying areas and mountainous regions experiencing cooler temperatures. The cities of Jakarta, Ujung Padang, Medan, Padang, and Balikpapan have an average minimum temperature of 22.8°C and a high of 30.2°C. Humidity in Jakarta varies between 61% to 95% and average rainfall amounts to 218.4 millimeters (mm) per month. The “wet” season occurs between November and April, leaving May through October typically dry. Indonesia experiences drier conditions during El Nino events and wetter conditions during La Nina events. Indonesia lies across the range of the Inter-Tropical Convergence Zone (ITCZ) where the northeast and southeast trade winds penetrate the doldrums. Strong ascending motion, overcast skies, strong squalls, heavy rainfall and severe local thunderstorms with variable intensities are characteristics of this zone. 

Natural resources

Indonesia is a bountiful country full of natural resources, such as coal, copper, gold, oil and natural gas.

Indonesia is endowed with rich natural resources. The nation also has fertile soils that support a variety of cash crops. Indonesia is a major supplier of commodities such as coffee, rubber, timber, palm oil, and cocoa to the world market and to a lesser extent tea, sugar, copra, spices, and tobacco.

Economic Index

–  GDP (current US$) – Indonesia
1,058,423.84      

–  GDP, PPP (current international $) – Indonesia
3,302,178.32

–  GDP per capita, PPP (current international $) – Indonesia
12,072.7

–  GDP per capita (current US$) – Indonesia
3,869.6

–  Gini index – Indonesia
37.3

–  Inflation, consumer prices (annual %) – Indonesia
1.6

Internet use in Indonesia in 2022

– There were 204.7 million internet users in Indonesia in January 2022.
– Indonesia’s internet penetration rate stood at 73.7 percent of the total population at the start of 2022

Social Media Stats In Indonesia

Facebook = 68.65%

YouTube = 24.66%

Instagram = 3.85%

Twitter = 2.01%

Pinterest = 0.62%

VKontakte = 0.12%

Standards for Trade

 The Indonesian government and related industrial players have been active in formulating standards for products and services. The National Standardization Agency of Indonesia (Badan Standarisasi Nasional “BSN”), is an Indonesian government agency responsible for standardization, conformity assessment, and metrology activities in Indonesia. BSN was established in 1997 under Presidential Decree 13/1997 and enhanced by Presidential Decree No 166/2000. 

 According to government regulation, the only national standards permitted are Indonesian National Standards (SNIs) and BSN is responsible for their formulation. SNIs are formulated in accordance with the nationally agreed mechanism of standard formulation and aligned with similar regional or international standards whenever possible. Various Indonesian government ministries cite these standards in their technical regulations.

Import Tariffs

 Most Indonesian tariffs on non-agricultural goods are bound at 35.5 percent, although tariff rates exceed 35.5 percent or remain unbound on automobiles, iron, steel, and some chemical products. In the agricultural sector, tariffs on more than 1,300 products have bindings at or above 35.5 percent. Under Minister of Finance (MOF) Regulation 112/2018, Indonesia levies an import duty of 7.5 percent on certain goods (known as “consignment goods”) imported by businesses regardless of the tariff rate in Indonesia’s WTO and free trade agreement schedules, if the Free On Board customs value of the good is more than USD 75 but less than USD 1,500. Indonesia maintains tariff rates as a high as 10 percent on certain information and communication technologies, including certain types of telecommunications equipment as well as servers.

Trade Agreements

 Indonesia is a party to the region-wide Association of Southeast Asian Nations (ASEAN) Free Trade Area. ASEAN, and by extension Indonesia, also has preferential trade agreements with Australia, China, Hong Kong India, Japan, Korea, and New Zealand and concluded text-based negotiations of the Regional Comprehensive Economic Partnership in November 2019. Indonesia has signed bilateral free trade agreements (FTAs) with Australia, Chile, Mozambique, as well as with Iceland, Liechtenstein, Norway, and Switzerland under the European Free Trade Association, but as of the end of 2019, none of these FTAs are yet in force except with Chile. Indonesia recently concluded negotiations with Korea on a Comprehensive Economic Partnership Agreement. Indonesia is negotiating other FTAs with the European Union (EU), India, Tunisia, and Turkey as well as reviewing its trade agreements with Japan and Pakistan.

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