IndonesiaChapters
The Dutch began to colonize Indonesia in the early 17th century; Japan occupied the islands from 1942 to 1945. Indonesia declared its independence shortly before Japan's surrender, but it required four years of sometimes brutal fighting, intermittent negotiations, and UN mediation before the Netherlands agreed to transfer sovereignty in 1949. A period of sometimes unruly parliamentary democracy ended in 1957 when President SOEKARNO declared martial law and instituted "Guided Democracy." After an abortive coup in 1965 by alleged communist sympathizers, SOEKARNO was gradually eased from power. From 1967 until 1998, President SUHARTO ruled Indonesia with his "New Order" government. After street protests toppled SUHARTO in 1998, free and fair legislative elections took place in 1999. Indonesia is now the world's third most populous democracy, the world's largest archipelagic state, and the world's largest Muslim-majority nation. Current issues include: alleviating poverty, improving education, preventing terrorism, consolidating democracy after four decades of authoritarianism, implementing economic and financial reforms, stemming corruption, reforming the criminal justice system, addressing climate change, and controlling infectious diseases, particularly those of global and regional importance. In 2005, Indonesia reached a historic peace agreement with armed separatists in Aceh, which led to democratic elections in Aceh in December 2006. Indonesia continues to face low intensity armed resistance in Papua by the separatist Free Papua Movement.
Key indicators
- Area
- 1,904,569 km2
- Population
- 275,122,131 (July 2021 est.)
- Government type
- presidential republic
- Languages
- Bahasa Indonesia (official, modified form of Malay), English, Dutch, local dialects (of which the most widely spoken is Javanese)
- GDP
- $1.058 trillion (2020 est.)
- Growth rate
- -2% (2020 est.)
- HDI
- 107
- Capital
- Jakarta
Macroeconomic indicators
Economic growth remains robust and is projected to edge higher in 2018 and 2019. Stronger consumer confidence and real income growth will lift private consumption. Infrastructure investment will remain high. Improvements in licensing and transport connectivity will support private investment and export performance. Inflation has been subdued, but the effects of higher commodity prices and currency depreciation will generate some upward pressure.
Bank Indonesia raised interest rates in May to contain exchange rate pressure. Some further tightening is assumed over the projection horizon as US interest rates rise. A steeper path may be needed if capital outflows persist. The budget deficit is projected to narrow slightly, which is prudent given rising uncertainty. Continued reforms to the tax administration and strengthened compliance will provide the means for higher infrastructure and social spending that promote inclusive growth. Reducing structural and administrative bottlenecks and fighting corruption remain crucial to strengthen growth.
Source: OECD - Economic Forecast
IMF Statistics:
| Subject descriptor | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
|
Gross domestic product, constant prices Percent change (Units) |
3.703 |
5.307 |
5.048 |
4.964 |
5.055 |
|
Gross domestic product, current prices Percent change (Billions) |
1,186.510 |
1,319.076 |
1,371.171 |
1,475.690 |
1,613.904 |
|
Gross domestic product per capita, current prices Percent change (Units) |
4,358.187 |
4,799.100 |
4,942.361 |
5,270.975 |
5,713.854 |
|
Inflation, average consumer prices Percent change (Units) |
1.561 |
4.139 |
3.713 |
2.557 |
2.587 |
|
Volume of imports of goods and services Percent change (Units) |
15.164 |
8.885 |
-2.150 |
16.199 |
12.806 |
|
Volume of exports of goods and services Percent change (Units) |
21.693 |
-0.659 |
6.054 |
8.916 |
8.121 |
|
Unemployment rate Percent change (Units) |
6.490 |
5.860 |
5.320 |
5.200 |
5.100 |
|
Current account balance Percent change (Billions) |
3.511 |
13.215 |
-1.567 |
-13.161 |
-20.520 |
|
Current account balance Percent change (Units) |
0.296 |
1.002 |
-0.114 |
-0.892 |
-1.271 |
Estimates
Source: IMF Statistics - Indonesia
Relationships with Luxembourg
Existing conventions and agreements
Non double taxation agreement
In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.
- Convention from 14.01.1993 (Memorial 1993, A No.103, p.2166)
- Effective as of 01.01.1995 (Memorial 1993, A No.103, p.2166)
Air Services agreement
None
Further information
Foreign Trade
The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.
You can see the statistics on the website of the Statec.
Contact points in Indonesia
Embassy of the Grand Duchy of Luxembourg in Thailand
Ambassador with residence in Bangkok: H.E. Mr Jean-Paul SENNINGER
Q House Lumpini 17th Floor
1 South Sathorn Road
Tungmahamek Sathorn
Bangkok 10120
Thailand
Tel.: (+66) 2 677 7360
Fax: (+66) 2 677 7364
E-Mail: bangkok.amb@mae.etat.lu
Honorary Consul
Honorary Consul with jurisdiction in the territory of Indonesia: Mr Teguh Putro SULISTO
Satmarindo Building
Jalan Ampera Raya 5
Jakarta 12560
Indonesia
Tel: (+62) 21 7883 6682
E-Mail: tedpsulisto@yahoo.com / tsd101@cbn.net.id
Source: Ministry of Foreign Affairs of Luxembourg
Country risk as defined by Office du Ducroire for Indonesia
Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.
Link: Ducroire Office - Country Risk for Indonesia