Monday 24 June 2013

Economics and Natural Resources Indonesia


Economy
Indonesia's economic system was initially supported by the launch Oeang Repoeblik Indonesia (ORI), which became the first currency of the Republic of Indonesia, which then turned into Rupiah.
In the reign of the Old Order, Indonesia does not fully adapt to the capitalist economic system, but also combine them with economic nationalism. Inexperienced government, is to intervene in some production activities that affect many people. This, coupled political turmoil, resulting in economic instability in the country.

New Order governance immediate economic discipline that aims to curb inflation, stabilize the currency, debt rescheduling, and trying to attract foreign aid and investment. In the 1970s the era of rising petroleum prices led to surging exports, economic growth and trigger levels are higher on average by 7% between 1968 and 1981. Further reform by the end of the 1980s, which include deregulation of the financial sector and the weakening of the rupiah is controlled, then the foreign investment flowing into Indonesia, particularly in export-oriented industries in the years 1989 to 1997, Indonesia's economy suffered a setback at the end of the year 1990s due to the economic crisis that hit most parts of Asia at that time, who accompanied the end of the New Order of President Suharto's resignation on May 21, 1998.
Currently Indonesian economy has been fairly stable. Indonesia's GDP growth in 2004 and 2005 exceeded 5%, and is expected to continue. Nevertheless, the impact of that growth has not been large enough to affect the unemployment rate, which was 9.75%. Estimates of 2006, as many as 17.8% of the people live below the poverty line, and there are 49.0% of people living on less than U.S. $ 2 per day.
Indonesia has vast natural resources outside Java, including crude oil, natural gas, tin, copper, and gold. Indonesia's second largest natural gas exporter in the world, although lately he has become a net importer of crude oil. Major agricultural products include rice, tea, coffee, spices, and rubber. Services sector is the largest contributor to GDP, which reached 45.3% of GDP in 2005. While the industrial sector accounted for 40.7%, and the agricultural sector accounted for 14.0%. Nevertheless, the agricultural sector employs more people than other sectors, ie 44.3% of the 95 million workers. The service sector employs 36.9%, and the rest of the industrial sector at 18.8%.
Indonesia's largest trading partners are Japan, United States, and its neighbors countries namely Malaysia, Singapore and Australia.
Although rich in natural and human resources, Indonesia is still facing major problems in the field of poverty is largely due to the rampant corruption in the government. Agency Transparency International ranks Indonesia as ranked 143 of 180 countries in the Corruption Perception Index, which was issued in 2007.
Natural resources
Indonesia's natural resources such as petroleum, tin, natural gas, nickel, timber, bauxite, fertile soils, coal, gold, and silver with land division consists of 10% agricultural land, plantation of 7%, 7% pasture , forests and wooded areas by 62%, and another 14% with an area of 45 970 km of irrigated land.

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