Overview website for Indonesia


Indonesia is now one of Asia Pacific’s most vibrant democracies that has maintained political stability and emerged as a confident middle-income country.


A brief overview of the land, people, government and economy of Indonesia.

The People – The Land – The Language – The Government


Provides an overview of Indonesia, including key events and facts about the world’s fourth most populous nation.


Indonesia is poised to become one of the world’s top 10 economies by 2025, but poor roads, water supply, and street lighting are holding the nation back.


Indonesia – a nation of progress. Indonesia, a nation made up of some 17,500 islands, is the world’s fourth most populated country. Of the 237 million .

For nearly 60 years, the Foundation has supported Indonesia’s transition to an open society with strong economic growth. But corruption, inequity, and poverty remain significant hurdles. Our current focus is to build the capacity of democratic institutions, empower women’s political participation, strengthen legal and judicial systems, and support reform of the corrections system. We also partner with Indonesia’s vibrant civil society and knowledge institutions to contribute to development policy and good governance across the country.

Indonesia is poised to become one of the world’s top 10 economies by 2025, but poor roads, water supply, and street lighting are holding the nation back. The Foundation’s pioneering Local Economic Governance surveys, which cover 90 percent of all districts, found that entrepreneurs consider infrastructure a main impediment to growth. Thirty eight percent of 12,391 private firms—mostly small and medium enterprises—surveyed in 2011 said poor infrastructure is creating tremendous costs and reducing competition. Those polled said they experienced blackouts three times a week and interruptions to water supply almost twice a week. In less developed regions, conditions are worse. Through budget advocacy, we are helping local governments focus their priorities on investments that will foster economic growth. Of course, infrastructure improvements on their own are not enough. We know unnecessary levies are still imposed on farmers to transport produce across district borders, in addition to illegal charges faced by traders and transporters along the supply chain. We therefore also promote regulatory reforms that will foster business investment and enterprise development. Our position is that national investment in the infrastructure needed for business growth, coupled with a stronger emphasis on improving economic governance, is critical if Indonesia is to continue outperforming its neighbors.

Out of a population of 234 million, more than 32 million Indonesians currently live below the poverty line and approximately half of all households remain clustered around the national poverty line set at 200,262 rupiahs per month ($22).

Employment growth has been slower than population growth. Public services remain inadequate by middle income standards. Indonesia is also doing poorly in a number of health and infrastructure related indicators, and as a result, may fail to reach some Millennium Development Goals (MDG) targets.

Data from 2009 shows that Indonesia still suffers 307 deaths for every 100,000 live births, while the MDG aims to reduce this to 105 deaths by 2015. Maternal mortality remains high, and may be an MDG target that will not be met. Also, despite recent progress, access to improved sanitation facilities currently stands at 68 percent of the population, which remains significantly short of the MDG target of 86 percent.

There was a slight drop in Indonesia’s ranking in the “2011 Doing Business” report from 126th in 2011 to 129th in 2012. Significant challenges remain, however, with Indonesian businesses identifying labor, infrastructure and general regulatory reforms as critical to increased investment.

Despite these conditions, Indonesia continues to post significant economic growth. As of July 2012, the country’s economy baseline outlook for growth is expected to be 6 percent in 2012 and increase to 6.4 percent in 2013. The country’s gross national income per capita has steadily risen from $2,200 in the year 2000 to $3,720 in 2009.

In terms of macroeconomic stability, Indonesia has managed to fulfill many of its fiscal targets, including a significant drop in Debt-to-GDP ratio from 61 percent in 2003 to 27.5 percent in 2009. Meanwhile, the budget deficit is projected to be as little as 0.4 percent of GDP in 2011.

Indonesia has formulated a long-term development plan which spans from 2005 to 2025. It is segmented into 5-year medium-term plans, each with different development priorities. The current medium-term development plan covering 2009-2014 is the second phase and focuses on:

promoting quality of human resources

development of science and technology

strengthening economic competitiveness.

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