A study on indonesia economy

1. INDONESIA ECONOMY
Presented by :-
1. Yash R. Ayare (P02) 2. Nitesh S. Chawan (P09)
3. Suyog R. Dalvi (P11) 4. Rohit T. Mahadeshwar(P31)
5. Nikhil A. Mouriya (P36) 6. Aditya A. Wadate (P60)
7. Zaid A. Attar (P61)

2. • The economy of Indonesia is one of the emerging
market economies in the world and the largest
in Southeast Asia.
• As an upper-middle income country and member
ofthe G20, Indonesia is classified as a newly
industrialized country.
• Estimated at over 21 quadrillion rupiah in 2023, it is
the 16th largest economy in the world by nominal
GDP.
• Indonesia contributes 1.32 % total world economy.
INTRODUCTION

3. GDP OF INDONESIA
• Indonesia's economy expanded by 4.94% yoy in Q3 of 2023.
• The Gross Domestic Product (GDP) in Indonesia was worth 1319.10 billion US
dollars in 2022, according to official data from the World Bank.
• GDP in Indonesia is estimated to be $1.186 trillion US dollars at the end of 2022.
• The gross domestic product in current prices in Indonesia was forecast
to continuously increase between 2023 and 2028 by in total 676.1 billion U.S.
dollars (+47.7 percent).

4. Gross domestic product (GDP) per capita in current prices
from 1987 to 2028(in U.S. dollars)
Growth rate of the real gross domestic product (GDP)
from 2018 to 2028(compared to the previous year)

5. Share of economic sectors in the gross domestic product (GDP) from 2012 to 2022

6. • According to the PWC report,We expect Indonesia to experience only a mild slowdown. To understand why, we would like to use the basic
GDP formula, which comprises consumption (C), investment (I), government spending (G), exports (X) and imports (M).

7. Population
• The current population of Indonesia in 2023
is 277,534,122, a 0.74% increase from
2022.
• The population of Indonesia in 2022
was 275,501,339, a 0.64% increase from
2021.
• The population of Indonesia in 2021
was 273,753,191, a 0.7% increase from
2020.
• The population of Indonesia in 2020
was 271,857,970, a 0.84% increase from
2019.

8. • Indonesia literacy rate for 2020
was 96.00%, a 0.34% increase from
2018.
• Indonesia literacy rate for 2018
was 95.66%, a 0.28% increase from
2016.
• Indonesia literacy rate for 2016
was 95.38%, a 0.16% increase from
2015.
• Indonesia literacy rate for 2015
was 95.22%, a 0.1% increase from
2014.
LITERACY RATE

9. UNEMPLOYMENT RATE:-
The unemployment rate in Indonesia is forecast to 5.30% in 2023.
% of Population below Poverty line :-
• As of March 2023, about 14.16 million of the people who lived
below the poverty line in Indonesia were living in rural areas,
which was higher compared to urban areas.

10. CPI :-
• Annual inflation of Indonesia continued to ease to the
level of 3.08 percent year-on-year (y/y) in July 2023,
from 3.52 percent (y/y) in June 2023.
• Considering the Indonesian government cut fuel
subsidies back in September 2022 (which then caused
monthly inflation to reach 1.17 percent m/m in
September 2022)
INFLATION RELATED ANALYSIS
WPI :-
• The WPI decreased by 13.5% on year-on-year basis in
2019.
• The WPI has been fluctuating in the last decades, with
the index declining from 107 points in 2011 to 83 points
in 2019.
• As the WPI rises the consumer inflation increases

11. CENTRAL BANK AND IT's ACTION :-
• The Bank decided to stand pat largely to support the currency. The Bank deemed the current monetary policy stance
to be consistent with keeping inflation within its 2.0–4.0% target range for the remainder of 2023 and within its 1.5–
3.5% target range for 2024.
• Bank Indonesia has one single overarching objective, namely to create and maintain rupiah stability in order to
achieve sustainable economic growth and ameliorate public prosperity.
INFLATION RELATED ANALYSIS
• Although Indonesia’s condition is better than the global inflation rate,
inflationary pressures in the future are predicted to increase due to several
factors such as increased demand in general after the pandemic subsides,
volatility of global food conditions, the increase of subsidized and non-
subsidized fuel prices .

12. Treasury yield curve :-
• The Indonesia 10Y Government Bond has a
6.995% yield.
• Central Bank Rate is 6.00% (last
modification in October 2023).
• The Indonesia credit rating is BBB, according
to Standard & Poor’s agency.
INFLATION RELATED ANALYSIS
Forex rate against USD :-
• 1 USD= 15,516 IDR

13. INTERNATIONAL BUSINESS-RELATED ANALYSIS

14. TRADE PARTNERS
• Indonesia imports and exports a multitude of products
and services and it’s an important trading partner for
many countries.
• In terms of the total volume of trade, its top trading
partners are China, Singapore, Japan, United States,
India, South Korea, Malaysia and Thailand.
• Together these countries account for almost 62% of
Indonesian exports as well as over 68% of Indonesian
imports.

15. • Indonesia Foreign Portfolio Investment fell by 1.822 USD bn in Jun 2023, compared with an increase of 4.291 USD bn
in the previous quarter.
• Indonesia Foreign Portfolio Investment: USD mn data is updated quarterly, available from Mar 2004 to Jun 2023.
• The data reached an all-time high of 11.489 USD bn in Dec 2018 and a record low of -6.255 USD bn in Mar 2020.
Indonesia Foreign Portfolio Investment :-

16. GOVERNMENT DEBT:
• Indonesia National Government Debt reached 508.3 USD bn in Sep 2023,
compared with 516.5 USD bn in the previous month.
FISCAL SURPLUS & FISCAL DEFICIT:
• The Indonesian state budget has reported an impressive surplus of Rp 152.3 trillion
($10 billion) in the first half of 2023, largely attributed to the attainment of 57
percent of the full-year tax revenue target.
• Indonesia is forecasting a lower 2023 budget deficit of 2.28% of its gross domestic
product compared to its initial target of 2.84%, as a result of higher than expected
revenues, its finance minister has said.
GOVERNMENT
DEBT
AND
FISCAL SURPLUS
& FISCAL DEFICIT

18. LARGEST COMPANY BY MARKET CAPITALIZATION
Bank Central Asia with a market cap of $71.99 B

19. Ease of doing Business Start up culture

20. TECHNOLOGY DEVELOPMENT