Indonesia skyline

Indonesia Economy

Indonesia economic overview

Steady growth:

Indonesia, an archipelago nation straddling Southeast Asia, boasts the fifth largest economy in Asia, with a GDP of over USD 1 trillion and a population of over 270 million. Growth has been robust at around 5% for the last decade, lower than the rates recorded in other major emerging Asian economies such as China, India, Vietnam or the Philippines.

Resource wealth:

Indonesia's economy is characterized by its rich natural resources. In particular, Indonesia is a major producer of nickel, palm oil, copper, coal, tin and bauxite. In recent years, the government has clamped down on exports of several key commodities to encourage investment in locally based processing facilities and thus move up the value chain.

Diverse economic make-up:

In addition to mining, Indonesia's agricultural sector is also large, accounting for about 12% of GDP in 2022 and a much larger share of the workforce. Indonesia also has a growing industrial base, which, in addition to commodity processing, includes textiles and chemicals. The services sector is a large contributor to Indonesia's economy but is still a notably smaller share of GDP than in developed nations, reflecting Indonesia's status as an emerging economy.


The Indonesian economy faces several challenges, including poverty and inequality, poor educational attainment, infrastructure bottlenecks, and corruption, which will likely continue to keep a lid on the economy's economic potential in the coming years. Climate change and extreme weather events are also risks, given that the economy is located in a region that experiences tropical storms and tsunamis.

Indonesia's economic outlook:

The economy should expand notably above the Asia ex-Japan average over our forecast horizon to 2028, notwithstanding the aforementioned challenges. Rising tourist arrivals, raw material processing activity, electronics and automobile output will provide support against a backdrop of business-friendly government policy.

Indonesia's economy in numbers:

Nominal GDP of USD 1,319 billion in 2022.

GDP per capita of USD 4,798 compared to the global average of USD 10,589.

Average real GDP growth of 4.4% over the last decade.

Share of the region's population
Share of the region's GDP

Economic structure:

In 2021, services accounted for 47% of overall GDP, manufacturing 19%, other industrial activity 21%, and agriculture 13%. Looking at GDP by expenditure, private consumption accounted for 56% of GDP in 2021, government consumption 9%, fixed investment 31%, and net exports 4%.

GDP by economic sector
GDP by type of expenditure

International trade:

In 2021, manufactured products made up 45% of total merchandise exports, mineral fuels 19%, food 23%, ores and metals 7% and agricultural raw materials 5%, with other categories accounting for 1% of the total. In the same period, manufactured products made up 65% of total merchandise imports, mineral fuels 15%, food 12%, ores and metals 4% and agricultural raw materials 3%, with other goods accounting for 1% of the total. Total exports were worth USD 293 billion in 2022, while total imports were USD 230 billion.

Key exports
Key imports
Key export partners
Key import partners

Economic growth:

The economy recorded average annual growth of 4.4% in the decade to 2022. To read more about GDP growth in Indonesia, go to our dedicated page.

Fiscal policy:

Indonesia's fiscal deficit averaged 2.8% of GDP in the decade to 2022. Find out more on our dedicated page.


The unemployment rate averaged 5.8% in the decade to 2022. For more information on Indonesia's unemployment click here.


Inflation averaged 4.1% in the decade to 2022. Go to our Indonesia inflation page for extra insight.

Monetary Policy:

Indonesia's monetary policy rate ended 2022 at 5.50%, down from 5.75% a decade earlier. See our Indonesia monetary policy page for additional details.

Exchange Rate:

From end-2012 to end-2022 the rupiah weakened by 38.1% vs the U.S. dollar. For more info on the rupiah, click here.
After slowing year on year in Q3, economic growth was likely resilient in Q4. Increased government spending due to the El Niño weather event and in the run-up to general elections should have buttressed demand. Moreover, retail sales grew at a slightly brisker pace through December versus Q3, as consumer confidence remained upbeat. Conditions in the manufacturing sector also improved in the quarter, supported by buoyant overseas demand and quicker output growth. Moreover, the downturn in goods exports softened in October–November from Q3. In politics, Minister of Defense Prabowo Subianto—running with President Widodo’s eldest son as his vice-presidential candidate—continues to lead in the polls ahead of the 14 February elections. Prabowo’s populist agenda could dent investor sentiment ahead.
Projections out to 2033.

49 indicators covered including both annual and quarterly frequencies.

Consensus Forecasts based on a panel of 41 expert analysts.

Want to get insight on the economic outlook for Indonesia in the coming years? FocusEconomics collects projections out to 2033 on 49 economic indicators for Indonesia from a panel of 41 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Indonesia economy. To download a sample report on the Indonesia's economy, click here . To get in touch with our team for more information, fill in the form at the bottom of this page .

Indonesia Economic Data

2018 2019 2020 2021 2022
Population (million) 264 267 270 272 275
GDP (USD bn) 1,043 1,120 1,062 1,188 1,319
GDP per capita (USD) 3,946 4,195 3,930 4,362 4,798
GDP (IDR tn) 14,839 15,833 15,443 16,977 19,588
Economic Growth (Nominal GDP, ann. var. %) 9.2 6.7 -2.5 9.9 15.4
Economic Growth (GDP, ann. var. %) 5.2 5.0 -2.1 3.7 5.3
Domestic Demand (ann. var. %) 6.3 3.9 -3.8 2.9 3.8
Private Consumption (ann. var. %) 5.1 5.0 -2.6 2.0 4.9
Government Consumption (ann. var. %) 4.8 3.3 2.1 4.3 -4.5
Fixed Investment (ann. var. %) 6.7 4.5 -5.0 3.8 3.9
Exports (G&S, ann. var. %) 6.5 -0.5 -8.4 18.0 16.2
Imports (G&S, ann. var. %) 12.1 -7.1 -17.6 24.9 15.0
Manufacturing Production (ann. var. %) 4.3 3.8 -2.9 3.4 4.9
Retail Sales (ann. var. %) 3.7 3.8 -11.9 0.0 6.0
Unemployment (% of active population, eop) 5.3 5.2 7.1 6.5 5.9
Fiscal Balance (% of GDP) -1.8 -2.2 -6.1 -4.6 -2.4
Public Debt (% of GDP) 30.4 30.6 39.7 41.1 40.1
Money (ann. var. of M2 %) 6.3 6.5 12.5 14.0 8.4
Inflation (CPI, ann. var. %, eop) 3.1 2.6 1.7 1.9 5.5
Inflation (CPI, ann. var. %, aop) 3.2 2.8 2.0 1.6 4.2
Inflation (Core, ann. var. %, aop) 2.8 3.2 2.3 1.4 2.7
Inflation (WPI, ann. var. %, aop) 5.5 1.1 2.4 2.6 4.7
BI-Rate (%, eop) 6.00 5.00 3.75 3.50 5.50
3-Month JIBOR (%, eop) 7.70 5.51 4.06 3.75 6.62
10-Year Bond Yield (%, eop) 8.11 7.28 6.17 6.55 7.01
Stock Market (ann. var. of IDX %) -2.5 1.7 -5.1 10.1 4.1
Exchange Rate (IDR per USD, eop) 14,380 13,883 14,050 14,253 15,568
Exchange Rate (IDR per USD, aop) 14,234 14,141 14,543 14,295 14,853
Current Account Balance (USD bn) -30.6 -30.3 -4.4 3.5 13.2
Current Account Balance (% of GDP) -2.9 -2.7 -0.4 0.3 1.0
Merchandise Trade Balance (USD bn) -0.2 3.5 28.3 43.8 62.7
Merchandise Exports (USD bn) 180.7 168.5 163.4 232.8 292.5
Merchandise Imports (USD bn) 181.0 164.9 135.1 189.0 229.9
Merchandise Exports (ann. var. %) 7.0 -6.8 -3.0 42.5 25.6
Merchandise Imports (ann. var. %) 20.6 -8.8 -18.1 39.9 21.6
Foreign Direct Investment (USD bn) 20.6 23.9 18.6 21.1 22.0
International Reserves (USD bn) 121 129 136 145 137
International Reserves (months of imports) 8.0 9.4 12.1 9.2 7.2
External Debt (USD bn) 375 404 417 414 397
External Debt (% of GDP) 36.0 36.0 39.3 34.9 30.1


  1. What is Indonesia's main economic sector?

  2. The largest economic sector in Indonesia is the services sector, which accounts for nearly 50% of the country's GDP, followed by industry and agriculture.

  3. What are the major economic issues in Indonesia?

  4. Indonesia's economy grapples with challenges like dependence on natural resource exports, infrastructure gaps, regional disparities, and a need for skilled labor. Corruption, complex regulations, environmental issues, and income inequality also impede growth.

  5. What is the economic situation of Indonesia?

  6. Indonesia's economy is growing robustly. Key strengths include abundant natural resources, a large and growing population, strategic location, and government reforms aimed at infrastructure development and improving the ease of doing business. These factors position Indonesia for continued economic growth and regional influence in the coming years.

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