Economical Overview
Indonesia's economy is based on the principle of market economy, which is influenced by the government in many places. Some big enterprises are in state ownership.
The Gross Domestic Product (GDP) per capita was USD 3.700 in 2005. However, about one fifth of the population lives below the poverty line with almost half of the employees working in farming. The main agricultural products are rice, tea, coffee, spices and rubber.
The country's extensive natural resources include oil, gas, tin, copper and gold. Wood, farming products, textiles and minerals are some of Indonesia's exported goods. The surrounding nations of Singapore, Malaysia and Australia are Indonesia's main trading partners along with Japan and the USA.
Besides also tourism, of course, brings foreign currency to the country. The country's own currency is the Rupiah, its central bank Bank Indonesia.
Indonesia ist member of the OPEC, but has become a netto importer of oil in 2004 because of declining production and lack of new exploration investment. Furthermore it is member of the World Trade Organization (WTO), the International Monetary Fund (IMF) and the ASEAN (Association of South-East Asian Nations).
In the late 1990s Indonesia's economy suffered greatly during the Asian financial crisis sharpened by a severe drought in 1997/1998. Since this time it has somewhat stabilized. As of 2005 economic growth has accelerated to 5.6 percent and the GDP per capita has reached pre-crisis level.
The economy is now undergoing rebuilding after the December 2004 tsunami. By reducing subsidies, the government is aiming to force down the budget deficit.