Indonesia Economic Situation
Indonesia Economic Situation The Indonesian economy grew less dependent on oil and agriculture during the Soeharto New Order. The severe contraction of Indonesia's economy at the time of the 1997 Asian financial crisis, however, highlighted the shortcomings of the New Order economic model (increasingly wasteful use of foreign investment, declining international competitiveness). Indonesia's GDP contracted by 13% in 1998. GDP per capita in 2000 was US$671, well down on the 1996 level of US$1,150. The economy has shown signs of recovery more recently, and GDP per capita (PPP) was estimated at US$3,600 in 2007. Economic growth has gradually increased from 3.3% in 2001 (led by the export sector) to 6.3% in 2007; the figure for 2008 is estimated to be about 6.1%. Services (which represent 42% of GDP), manufacturing (28%), agriculture (15%) and mining (9%) account for most of the origins of Indonesia's GDP. The Indonesian Government initiated a wide-ranging economic reform progra...