Indonesia Economic Structure

tructure of the Indonesian economy, 2006 data

Source: Indonesian Statistics Bureau (Biro Pusat Statistik), annual production data.

Agriculture, livestock, forestry and fishery

Main statistics on output in 2006 are provided in the table above.

Hydrocarbons

Indonesia was the only Asian member of the Organization of Petroleum Exporting Countries (OPEC) outside of the Middle East until 2008 and is currently a net oil importer. In 1999, Crude and condensate output averaged 1.5 million barrels (240,000 m3) per day, and in the 1998 calendar year the oil and gas sector, including refining, contributed approximately 9% to GDP. As of 2005, Indonesian crude oil and condensate output was 1.07 million barrels (170,000 m3) per day. This is a substantial decline from the 1990s, due primarily to aging oil fields and a lack of investment in oil production equipment. This decline in production has been accompanied by a substantial increase in domestic consumption, about 5.4% per year, leading to an estimated US$1.2 billion cost for importing oil in 2005.

The state owns all petroleum and mineral rights. Foreign firms participate through production-sharing and work contracts. Oil and gas contractors are required to finance all exploration, production, and development costs in their contract areas; they are entitled to recover operating, exploration, and development costs out of the oil and gas produced.

Indonesia's fuel production has declined significantly over the years, owing to aging oil fields and lack of investment in new equipment. As a result, despite being an exporter of crude oil, Indonesia is now a net importer of oil products. It had previously subsidized fuel prices to keep prices low, costing US$ 7 billion in 2004 . The current president has mandated a significant reduction of government subsidy of fuel prices in several stages . The government has stated the cuts in subsidies are aimed at reducing the budget deficit to 1% of gross domestic product (GDP) this year, down from around 1.6% last year. At the same time, in order to alleviate economic hardships, the government has offered one-time subsidies to qualified citizens.

Non-oil and gas mining

Indonesia is the world's largest tin market. Although mineral production traditionally centered on bauxite, silver, and tin, Indonesia is expanding its copper, nickel, gold, and coal output for export markets.

In mid-1993, the Department of Mines and Energy reopened the coal sector to foreign investment, with the result that the leading Indonesian coal producer now is a joint venture between UK firms - BP and Rio Tinto. Total coal production reached 74 million metric tons in 1999, including exports of 55 million tons. From January to August 2011, the coal production was 235 million tons and targeted 2011 coal production between 340 to 370 million tons. Not all of the productions can be exported due to there are Domestic Market Obligation (DMO) regulation which should fullfil the domestic market. In 2012, the DMO is 24.72%. And starting 2014, there are no low-grade coal exports allowed, so the upgraded brown coal process which crank up the calorie value of coal from 4,500 kcal/kg to 6,100 kcal/kg will be built in South Kalimantan and South Sumatra.

Two US firms operate three copper/gold mines in Indonesia, with a Canadian and British firm holding significant other investments in nickel and gold, respectively. In 1998, the value of Indonesian gold production was $1 billion and copper, $843 million. Receipts from gold, copper, and coal comprised 84% of the $3 billion. Earned in 1998 by the mineral mining sector. India fortune groups like Vedanta Resources and Tata Group have significant mining operations in Indonesia.

April 2011: With additional of Tayan, West Kalimantan Alumina project which produce 5% of the world's alumina production, Indonesia will be the world's second largest Alumina producer. The project will not make the ores to become Aluminium due to there are 100 types of Alumina derivatives which can be developed further by other companies in Indonesia.

Quarrying

Main statistics on output in 2006 are provided in the table above.

Manufacturing

Oil and gas manufacturing

Main statistics on output in 2006 are provided in the table above.

Non-oil and gas manufacturing

Main statistics on output in 2006 are provided in the table above.

In 2010, Indonesia sales 7.6 million motorcycles, which mainly produce in Indonesia with almost 100% local components. Honda led the market with a 50.95% market share, followed by Yamaha with 41.37% market share.

In 2011, the retail car sales total was 888,335 units, a 19.26% increase from last year. Toyota dominated the domestic car market by 35.34%, followed by Daihatsu and Mitsubishi with 15.44% and 14.56%, respectively. Since 2011, some origin local car makers have introduced some Indonesian national cars which can be categorized as Low Cost Green Car (LCGC). In 2012, significant increased by 24.8 percent made automobile sales broke 1 million units with 1.116 million units.

Electricity, gas and water supply

See also: Perusahaan Listrik Negara, Geothermal power in Indonesia, Energy in Indonesia, and Nuclear power in Indonesia

Main statistics on output in 2006 are provided in the table above.

Indonesia has expressed interest recently in possible use of nuclear plants.

Construction

Trade, hotel and restaurant

Wholesale and retail trade

Main statistics on output in 2006 are provided in the table above.

Hotels, Restaurants

Main statistics on output in 2006 are provided in the table above.

Transportation and communication

Main statistics on output in 2006 are provided in the table above.

According to Deloitte, in 2011 Internet-related activities in Indonesia have generated 1.6% of the nation's gross domestic product (GDP). This is bigger than electronic and electrical equipment exports and liquified natural gas at 1.51% and 1.45% respectively.

Finance, real estate and business services

Debt Service Ratio

At end of June 2011, Indonesia's debt service ratio was 21.6%, well below the dangerous threshold of 30%.

Banking, Non-bank finance institutions, Financial services

Main statistics on output in 2006 are provided in the table above.

Real estate, Business services

Main statistics on output in 2006 are provided in the table above.

Small businesses

There are 50 million small businesses in Indonesia with online usage growth of 48% in 2010, so Google will open a local office in Indonesia before 2012.

Other services

General government, Private services

Main statistics on output in 2006 are provided in the table above.

Up to end of June 2011, the fixed state assets was Rp 1,265 trillion ($128 billion), while the value of state stocks was Rp 50 trillion ($5.0 billion) and other state assets was Rp 24 trillion ($2.4 billion). .

country comparison to the world: 22