International Market Development

International market development | Comprehensive analysis of Indonesia's economy and market conditions

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Author : Bozhou Marine
Update time : 2020-12-25 15:02:59


In this article, we mainly introduce the basic situation of the Indonesian market. Including: geographic location, major cities, population conditions, ethnic groups, major festivals, natural resources, major industries, GDP, foreign exchange reserves, employment conditions, prices, corporate income tax, personal tax rates, etc.
 

  Introduction
 
 
The Republic of Indonesia (English: Republic of Indonesia), referred to as Indonesia (Indonesia). It is a Southeast Asian country and its capital is Jakarta. It is connected with countries such as Papua New Guinea, East Timor and Malaysia. Composed of about 17,508 islands, it is the world's largest archipelago country, with a territory spanning Asia and Oceania, and a country with many volcanoes and earthquakes. The larger islands are Kalimantan, Sumatra, Irian, Sulawesi and Java.
 
Indonesia is one of the founding countries of the Association of Southeast Asian Nations. It is also the largest economy in Southeast Asia and a member of the Group of 20 countries. It has strong aerospace technology.
 
 

  Capital
 
Jakarta is the capital and largest city of Indonesia. In terms of population, Jakarta is also the most populous city in Southeast Asia. It is located on the northwest coast of Java Island, with an area of ​​740 square kilometers and a population of 10.277 million. The Greater Jakarta area surrounds surrounding towns With over 30 million people, it is the second largest metropolitan area in the world. Jakarta is the economic center of Indonesia and gathers most of the wealth and elites of the country. Jakarta enjoys a provincial status. The residents are mainly Javanese, Batavians and Among the Sundanese, a few are Chinese, and the official language is Indonesian.
 
As the economic center of Indonesia, Jakarta is dominated by finance, accounting for 28.7% of the country's GDP. It also has the largest financial and major industrial and commercial institutions in the country. Jakarta was an important commercial port as early as the 15th century. It was once the Dutch east during the colonial era The headquarter of the Indian company is located, and the trade covers the three continents of Asia, Europe and Africa.
 
 

  Main City
 
Jakarta
 
Jakarta, also known as Coconut City, is the capital and largest city of Indonesia. It is located on the northwest coast of Java Island, the largest city in Southeast Asia, and a world-famous seaport. Jakarta is designated as the capital special zone, under the direct jurisdiction of the Indonesian government, and enjoys provincial status. The majority of residents are Javanese, and a few are Chinese, overseas Chinese, and Dutch. The official languages ​​are English and Indonesian.
 
Jakarta is the economic center of Indonesia. The economy is dominated by finance, accounting for 28.7% of the country's GDP, and it has the largest financial and major industrial and commercial institutions in the country.



Jakarta - Photo | Google

Surabaya
 
Si means swimming. Surabaya swims across the ocean. It means that the Chinese leave their homes to make a living in Southeast Asia and must travel across the ocean. Surabaya is the gateway to Mount Bromo, the capital of East Java Province of Indonesia and the second largest city in Indonesia. It covers an area of ​​326 square kilometers and has a permanent population of 2.7 million. To the north of the city is the famous port Tanjung Perak near the Ujung Naval Base, which is the second largest port in Java after Jakarta. Surabaya has complete transportation facilities, and tram tracks spread throughout the city. It faces Madura Island across the Surabaya Strait.
 

Bandung
 
When it comes to Bandung, the first thing that comes to mind is the Bandung Conference. Bandung is the third largest city in Indonesia and the capital of West Java Province. Located in a plateau basin surrounded by volcanic peaks in the west of Java Island, the city is 719 meters above sea level. The urban area is more than 80 square kilometers, the population is 1.5 million, and the suburbs are about 2.5 million (1981). It is located in the Bandung Basin at an altitude of 715 meters in the west of Java Island, Indonesia. It is surrounded by peaks on all sides, with lush vegetation and a beautiful environment. Although it is close to the equator, it has a cool climate and fresh air due to its higher terrain. The annual average temperature is 23. Bandung is known as the most beautiful city in Indonesia, known as the "Paris of Java", with beautiful scenery, quietness and elegance, and spring in all seasons.
 

Bekasi
 
Bekasi is an Indonesian city under the jurisdiction of West Java. It is located in the west of Java Island in the southeast of the country. It covers an area of ​​210.49 square kilometers. In 2010, it had a population of 2,378,211 and a population density of 11,298 people per square kilometer.
 

Medan
 
The largest city in Sumatra, Indonesia, and the capital of North Sumatra Province. Located on the banks of the Riri River in the northeastern part of Sumatra Island, Medan City is made up of Kuwa, Malay, Chinese and other ethnic groups, among which Chinese account for more than 19%, and most of them are engaged in business and trade. Medan City has 21 districts and 151 districts, with a population of approximately 2.11 million.
 
It is an emerging city with neat layout of urban streets and buildings. An important commercial city is the economic center of northern Sumatra. Industries include oil refining, chemicals, textiles, machinery manufacturing, coconut oil, rubber products, cigarettes, soap, and beverages. With plantations, oil fields and railway administrations, warehouses, and domestic and foreign banking institutions closely linked to them, it is the financial and commercial center second only to Jakarta. Be Lao Bay, the outer port, is a modern port, an oil shipment port, and the largest export port of domestic rubber, tobacco, sisal and palm oil. The tonnage of import and export ships ranks fourth in Indonesia, second only to Jakarta, Palembang and Surabaya. Nearby is the country’s largest plantation park. It is a railway and highway hub in North Sumatra. There are international airports connecting Malaysia and Thailand.



Medan - Photo | Google

Tangerang
 
Tangerang (Indonesian: Tangerang) is a city in Banten Province, Indonesia, located 25 kilometers west of Jakarta. Tangerang is the third largest city center in the Jabotabek area after Jakarta and Bekasi. The total area is 164.54 square kilometers, and the population in 2010 was 1,797,715 people. Tangerang is a center of industry and manufacturing in Java, with more than 1,000 factories located here, and many international companies have factories in the city.
 

Semarang
 
Semarang (Indonesian: Kota Semarang) is a city on the north coast of Java Island, Indonesia, and the capital of Central Java Province. With an area of ​​373.67 square kilometers and a population of about 1.5 million, it is the fifth largest city in Indonesia. Semarang is one of the Indonesian cities inhabited by many Chinese. It was the main port during the Dutch rule until today.
 
The origin of Semarang's place name comes from Zheng He's real name. Zheng He's original name was "Ma Sanbao". Later, because of his merits in the "Jingnan Campaign", he was given the surname "Zheng" by the emperor.
 

Palembang
 
An Indonesian city, the capital of South Sumatra Province, and the largest port and trade center in southern Sumatra. In the southeast of the island, across the lower banks of the Musi River. Palembang is located in the southeast of the island, on the inner side of the marshland, only 2 meters above sea level, across the lower banks of the Musi River. The city's waterways are vertical and horizontal, and it is known as the "water city".
 
There are large oil refineries connected by oil pipes to various oil fields and Jambi in the Musi River Basin; there are also industries such as fertilizer, rubber, shipbuilding, ceramics, textiles, machinery and coffee processing. Export crude oil and oil products, rubber, pepper, tea, coffee, rattan, rosin and coal.
 

Makassar
 
Makassar (Indonesian: Kota Makassar) is the capital of South Sulawesi Province in Indonesia and the largest city on Sulawesi. Makassar is located in the southwestern part of Sulawesi Island, bordering the Makassar Strait. Between 1971 and 1999, the city was called Ujung Pandang (Indonesian: Ujung Pandang). The city has an area of ​​175.77 square kilometers and a population of about 1.25 million.



Makassar - Photo | Google

 
  Jet Lag
 
China is one hour faster than Indonesia.
 
 

  Population and Ethnicity
 
With a total population of 258 million, Indonesia is the fourth most populous country in the world. There are hundreds of ethnic groups, of which the Javanese population accounts for 45%, the Sundanese 14%, the Maduras 7.5%, the Malays 7.5%, and the others 26%.
 
 

  Language
 
There are more than 200 ethnic languages, and the official language is Indonesian.
 
 

  Main Holiday
 
New Year's Day: January 1st. International public holidays;
Spring Festival: the first day of the first month of the lunar calendar. In traditional Chinese festivals, there are many ethnic Chinese in Indonesia, but being able to take a holiday during the Spring Festival is the result of long-term struggle. There was a wave of anti-Chinese and anti-Chinese in Indonesia. It was not until 2003 when relations with Chinese people improved that the Spring Festival was listed as a public holiday;
Nyepi: January 1st in the Saka calendar. It is a festival celebrated by the indigenous people of Bali, and the Saka calendar is also a traditional calendar used by the indigenous people of Bali;
Holy Friday: The Friday before Easter. Also known as "Good Friday", a Christian holiday, commemorating Jesus' death on the cross;
Nocturnal Dawn Day: July 27th in the Islamic calendar. Islamic holiday to commemorate a miracle performed by the Prophet Muhammad;
Labor Day: May 1st. International public holidays;
Vesak Day: The first full moon day in May. Also known as "Buddha's Birthday", a Buddhist festival to commemorate the birth of Buddha;
Ascension Day: The Thursday 40 days after Easter. Christian holidays, to commemorate Jesus' acceptance in heaven;
Anniversary of the Five Principles of the Founding of Country: June 1. To commemorate the five principles for the founding of Indonesia proposed by President Sukarno in 1945;
Eid al-Fitr: October 1st in the Islamic calendar. Islamic holidays, Muslim worship and celebrations of peace and fun;
Independence Day: August 17th. Commemorate Indonesia's declaration of independence in 1945;
Gurban Festival: December 10th in the Islamic calendar. Islamic holidays to commemorate the Prophet Ibrahim’s faithful execution of Allah’s orders;
Islamic New Year: January 1st in the Islamic calendar. Islamic holidays;
Sacramental Day: March 12th in the Islamic calendar. Islamic holiday. Commemorate the birth of the Prophet Muhammad;
Christmas: December 25th. Christian holiday commemorates the birth of Jesus.



 Bali Arts Festival - Photo | Google
 
  Natural Resources
 
It is rich in oil, natural gas, coal, tin, bauxite, nickel, copper, gold, silver and other mineral resources. Mining industry occupies an important position in the Indonesian economy, with an output value accounting for about 10% of GDP. According to Indonesian official statistics, Indonesia has approximately 9.7 billion barrels (1.31 billion tons) of oil reserves, 4.8 trillion to 5.1 trillion cubic meters of natural gas reserves, and proved reserves of 19.3 billion tons of coal, with potential reserves of more than 90 billion tons.
 
 

  Major Industries
 
Oil & Gas Extraction
 
Indonesia is rich in oil and gas resources. There are 66 oil and gas basins, 15 of which produce oil and gas. The government announced oil reserves of 9.7 billion barrels, equivalent to 1.31 billion tons, of which 4.74 billion barrels of verified reserves, equivalent to 640 million tons. Indonesia’s natural gas reserves are 176.6 trillion standard cubic feet (TCF), equivalent to 4.8-5.1 trillion cubic meters. Petroleum exploration and development basically rely on foreign oil companies.
 

Mining Industry
 
Indonesia’s mining industry has created considerable economic benefits for the development of Indonesia’s national economy. It is an important source of foreign exchange earnings from exports and an increase in central and local fiscal revenue. It has also made positive contributions to maintaining economic vitality, creating employment, and developing regional economies. It has an indirect role that radiates other social and economic fields and promotes the development of remote areas. The main mineral products in Indonesia are tin, aluminum, nickel, iron, copper, tin, gold, silver, coal, etc. The largest state-owned mining company in Indonesia is Anta, and there is also the Indonesian state-owned tin industry group company.
 

Manufacturing
 
The manufacturing industry has more than 30 different types of departments, mainly textiles, electronics, wood processing, steel, machinery, automobiles, pulp, paper, chemicals, rubber processing, leather, shoemaking, food, beverages, etc. Among them, textiles, electronics, wood processing, steel, machinery, and automobiles are important categories for foreign exchange earnings.
 

Agriculture
 
In 2013, agriculture, forestry, animal husbandry and fishery accounted for 15.04%. Indonesia is a large agricultural country with approximately 80 million hectares of arable land and an agricultural population of approximately 42 million. The climate in Indonesia is humid and rainy, with plenty of sunshine and short growth cycle of crops. The main cash crops are palm oil, rubber, coffee and cocoa. In 2012, Indonesia's palm oil production reached 28.5 million tons, making it the world's largest palm oil producer.
 
Indonesia's forest coverage rate is 54.25%, reaching 100 million hectares (1 million square kilometers). It is the third largest tropical forest country in the world. 30 million people in the country rely on forestry for their livelihoods; exports of plywood, pulp, and paper in Indonesia Products account for a large share, of which rattan exports account for 80% to 90% of the world's share.
 
As the world's largest archipelago country, Indonesia has a coastline of 81,000 kilometers and a water area of ​​5.8 million square kilometers, including 2.7 million square kilometers of territorial sea fishery zone and 3.1 million square kilometers of exclusive economic zone. The fishery resources are rich, with as many as 7,000 species of marine fish. The government estimates that the potential catch is more than 8 million tons per year. The developed marine fishery output accounts for 77.7% of the total fishery output. The fishery resources in the exclusive economic zone have not been fully developed.
 

Tourism
 
Tourism is the second largest foreign exchange earning industry in Indonesia's non-oil and gas industry after the export of electronic products. The government has long attached importance to developing tourist attractions, building hotels, training personnel and simplifying entry procedures. Since 1997, due to the adverse effects of financial crisis, political turmoil, terrorist explosions, natural disasters, and bird flu, the tourism industry has developed slowly. The growth rate has accelerated since 2007, and the number of foreign tourists to Indonesia in 2012 reached 8.04 million.



Bali Island - Photo | Google


  Steady economic growth, ASEAN’s only trillion GDP
 
In 2019, Indonesia’s economy continued to grow steadily, with a real growth of 5.02% year-on-year, with a nominal GDP of IDR 1,583.39 trillion, which is approximately US$1.12 trillion at an average exchange rate. It ranks 16th globally-the only economic aggregate among ASEAN countries. Countries with more than 1 trillion U.S. dollars.



Indonesia's GDP growth rate trend graph over the years | TRADING ECONOMICS
 
An official from the Indonesian Ministry of Finance: Indonesia’s GDP is expected to be flat or slightly below 0% in 2020.
 
 

  Foreign exchange reserves fluctuate greatly and grow slowly
 
 


Indonesia's foreign exchange reserves trends over the years | TRADING ECONOMICS
 
Indonesia's foreign exchange reserves have been volatile in recent years, with a sharp drop in 2015 and slow growth in recent years. In June 2020, Indonesia's foreign exchange reserves increased to 131.7 billion US dollars.
 
 

  The employment population has grown slowly, and the unemployment rate has skyrocketed
 
 


Employed population trend chart in Indonesia over the years | TRADING ECONOMICS
 
 


Indonesia's unemployment rate trend graph over the years | TRADING ECONOMICS
 
Affected by the epidemic in 2020, Indonesia’s unemployment rate has skyrocketed. The World Economic Outlook Report released by the International Monetary Fund the day before yesterday believes that Indonesia’s unemployment rate will reach 7.5% this year and last year’s unemployment rate was 5.3%.
 
 

  Prices have continued to rise in recent years, and inflation has continued to fall
 
 


Indonesia Consumer Price Index CPI Trends over the Years | TRADING ECONOMICS
 
From 2011 to 2020, the growth of Indonesia's consumer price index CPI accelerated, and prices continued to rise.
 


Indonesia's inflation rate trend chart over the years | TRADING ECONOMICS
 
From 2016 to 2020, Indonesia's inflation rate continued to fall, and the economic growth rate dropped significantly.
 
 

  Corporate income tax 22%
 
 


Indonesia's corporate income tax trends over the years | TRADING ECONOMICS
 
In 2020, the Indonesian corporate income tax rate is 22%.
 
 

  Personal income tax 30%
 
 


Individual income tax trends in Indonesia over the years | TRADING ECONOMICS
 
In 2020, Indonesia's personal income tax rate is 30%.



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