Sabtu, 01 Oktober 2011

Economic growth in Indonesia

ndonesia EconomyIndonesian From Wikipedia, the free encyclopediaPending changes displayed on the page iniBelum ExaminedIndonesia EconomyRupiahFiscal year calendar yearTrade organizations APEC, ASEAN, WTOStatistics [1]GDP ranking 15thGDP $ 863.6 billion (2005)GDP growth of 4.8% (2004)GDP per capita $ 3200 (2004)GDP by sector agriculture (16.6%), industry (43.6%), services (39.9%) (2004)Inflation 6.6% (2004)Pop below poverty line 8.% (1998)Labor 105.7 million (2004)Labor based on production work 46%, agriculture 16%, services 39% (1999)Unemployment 8.7% (2004)Major industries of petroleum and natural gas; textiles, equipment, and footwear, mining, cement, chemical fertilizers, plywood; rubber; food; tourismInternational Trade [2]Exports $ 113.99 billion (2007)The main commodities of oil and gas, plywood, textiles, rubber22.3% Japan's trading partners, the United States 12.1%, Singapore 8.9%, South Korea 7.1%, China 6.2% (2003)Imports $ 74.40 billion (2007)The main commodities machinery and equipment; chemicals, fuel, foodJapan's trading partners 13%, Singapore 12.8%, China 9.1%, U.S. 8.3%, Thailand 5.2%, Australia 5.1%, South Korea 4.7%, Saudi Arabia 4.6% (2003)Public finance [3]Government debt is $ 454.3 billion (56.2% of GDP)Revenues $ 40.91 billion (2004)Spending $ 44.95 billion (2004)$ 43 billion economic aid from the IMF (1997-2000)Edit
Indonesia has a market-based economy where the government plays an important role. The Government has more than 164 state-owned enterprises and set prices for some essential goods, including fuel, rice, and electricity. After the Asian financial crisis that began in mid-1997, the government is keeping many servings of private sector assets through acquisition of bank loans and corporate assets do not go through the process of debt restructuring.Table of contents[Hide]

    
1 Background
    
2 Post-Suharto
        
2.1 Public Expenditure Review
    
3 See also
[Edit] Background
For over 30 years of the New Order government of President Suharto, Indonesia's economic growth of GDP per capita $ 70 to more than $ 1,000 in 1996. Through monetary and financial policy of strict, inflation was arrested about 5% -10%, the rupiah is stable and predictable, and the government implemented a system of balanced budgets. Much of the development budget is financed through foreign aid.
In the mid 1980s the government began to remove barriers to economic activity. This step is aimed primarily at the external and financial sectors and is designed to increase employment and growth in non-oil exports. Annual real GDP growth averaged nearly 7% from 1987-1997, and a lot of analysis recognizes Indonesia as a major industrial economy and growing markets.
High economic growth rate from 1987-1997 cover several structural weaknesses in the economy of Indonesia. Legal system is very weak, and there is no effective way to execute contracts, collecting debts, or sue for bankruptcy. Bank activity is very simple, with lending based on-"collateral" causing the expansion and regulatory violations, including borrowing limits. Non-tariff barriers, rental by state-owned enterprises, domestic subsidies, barriers to domestic trade and export barriers create economic disruptions entirely.
Southeast Asian financial crisis that hit Indonesia in late 1997 quickly turned into an economic and political crisis. Indonesia's first response to this problem is to raise domestic interest rates to control rising inflation and weakening of the rupiah, and tighten fiscal policy. In October 1997, Indonesia and the International Monetary Fund (IMF) reached agreement on an economic reform program aimed at stabilizing the macro economy and the elimination of some economic policies that assessed damage, among other National automotive program and monopolies, which involved members of the family of President Suharto. Ringgit is still not stable in the time period long enough, and eventually forced President Suharto resigned in May 1998.[Edit] Post-Suharto
In August 1998, Indonesia and the IMF approved a loan program under President BJ Habibie. President Gus Dur was elected president in October 1999 and then extend the program.
In 2010 Indonesia's economy is very stable and growing rapidly. GDP can be sure melebihin Rp 6300 trillion [1] increased by more than 100 times higher than GDP in 1980. After India and China, Indonesia is a country with the fastest growing economy among 20 countries members of the G20 world's largest industrial economies.
This is a table of GDP (Gross Domestic Product) Indonesia from year to year [2] by the IMF in a million dollars.Year GDP1980 60,143.1911985 112,969.7921990 233,013.2901995 502,249.5582000 1,389,769.7002005 2,678,664.0962010 6,422,918.230

[Edit] Public Expenditure Review
Since the Asian financial crisis in the late 1990s, which has a share of the fall of the Suharto regime in May 1998, Indonesia's public finances have undergone a major transformation. The financial crisis is causing enormous economic contraction and decline in public spending in line. Not surprisingly, debt and subsidies increased dramatically, while development spending was sharply reduced.
Today, a decade later, Indonesia has been out of the crisis and are in a situation where once again the country has sufficient financial resources to meet development needs. These changes occur because of macroeconomic policies to be careful, and most importantly a very low budget deficit. Also the way the government spends the funds have been transformed through "major changes" decentralization in 2001 that left more than a third of the overall government budget switched to the local government in 2006. Equally important, in 2005, international oil prices continue to rise causing Indonesia's domestic oil subsidies can not be controlled, threaten the macroeconomic stability that has been painstakingly achieved. Despite political risks that high oil prices will push the inflation rate becomes larger, the government took a bold decision to cut oil subsidies.
The decision was to give U.S. $ 10 billion [4] for the additional expenditures for development programs. Meanwhile, in 2006 an additional U.S. $ 5 billion [5] have been available thanks to a combination of increased revenues driven by steady economic growth and reduction in overall debt payments, the remainder of the economic crisis. This means that in 2006 the government has a U.S. $ 15 billion [6] extra to spend on development programs. This country has not experienced 'fiscal space' since such a large increase in revenues experienced during a spike in oil in the mid-1970s. However, the main difference is that a large increase in revenue from oil in the 1970s merely an unexpected financial fortune. In contrast, the current fiscal space achieved as a direct result of government policy decisions to be careful and precise.
However, while Indonesia has gained remarkable progress in providing financial resources in meeting development needs, and this situation is prepared to continue in the coming years, subsidies remain a major burden on government budgets. Although there is a reduction in subsidies in 2005, total subsidies still around U.S. $ 10 billion [7] of government spending in 2006 or 15 percent of the total budget.
Thanks to the Habibie government's decision (May 1998 - August 2001) to decentralize authority to local governments in 2001, a large part of the increased government spending channeled through local governments. The result of provincial and district governments in Indonesia now spend 37 percent [8] of the total public funds, which reflects the level of fiscal decentralization that is even higher than the OECD average.
With the level of decentralization in Indonesia at this time and fiscal space is now available, the Indonesian government has a unique opportunity to improve the neglected public services. If managed carefully, it allows the lagging regions in eastern Indonesia to pursue other areas in Indonesia are more advanced in terms of social indicators. It also allows the people of Indonesia for the focus to the next generation in making changes, such as improving the quality of public services and infrastructure provision as it targeted. Therefore, the proper allocation of public funds and the careful management of the funds allocated by the time they have become a major issue for future public spending in Indonesia.
For example, while the budget for education has reached 17.2 percent [9] of the total public expenditure, are allocated the highest compared to other sectors and take approximately 3.9 percent [10] of GDP in 2006, compared with only 2.0 percent of GDP in 2001 [11 ] - the opposite of total public health spending is still below 1.0 percent of GDP [12]. Meanwhile, public infrastructure investment is still not fully recovered from post-crisis lows, and still at 3.4 percent of GDP [13]. One other area of ​​concern today is the level of expenditure for the administration of unusually high. Reach 15 percent in 2006 [14], showed a significant waste of public resources.

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