Indonesia's Economy

Indonesia is Australia's nearest neighbour and the world's fourth largest population of 237 million according to its 2011 Census. 28 million live within the Jakarta metro area. According to McKinsey & Co there are 45 million members of the ‘consuming class’ in Indonesia, and 55 million skilled workers. The IMF rates Indonesia as the largest economy in South East Asia, and 15th largest in the world, larger than Australia.

Indonesia’s recent growth has been stable and vastly exceeded most other nations. GDP growth averaged 5.9% between 2007 and 2011 and will exceed 6% in 2012. Indonesia’s real GDP growth was the third highest in the world between 2000 and 2010, beaten only by China and India. Inflation is under control, currently at 4.4% and forecast by the IMF to average 4.6% between 2013 and 2017.

Indonesia will soon become one of the world’s powerhouse economies. GDP growth is estimated to continue at an average of 6.6% between 2013 and 2017. Population is forecast to reach 280 million by 2030 according to McKinsey & Co and by 2030 Indonesia will be the 7th largest economy in the world (larger than developed countries like Germany and the United Kingdom). It is predicted that there will be 135 million members of the consuming class, and will have 113 million skilled workers.