Categorized | EcoBiz

Indonesia: One Trillion Dollar Economy

By Akhyari Hananto

I was really amazed by the article in The Economist magazine titled “Brazil Takes Off”. My uncle went to Sao Paulo sometimes in the 90′s and he said that apart from its carnivals, women in bikinis, and football, Brazil was all about poverty, political instabilities, prey to any economic crisis, and corruption.

Now… Brazil is the superpower of Latin America, and 8th world’s largest economy in the world with GDP balloons to $1.6 trillion in 2009 (one trillion milestone was reached in 2006). It possesses some of world’s biggest and most respected companies such as Petrobras, Embraer, Vale, etc, and contributes 10 of its largest companies in world’s 1000 largest companies.

In addition to that, to attach to its current national pride, Brazil will host World Cup 2014, and Olympic Games 2016. Brazil really really really takes off.

Let’s turn to the next page, it’s about Indonesia now.

Indonesian economy is in a good shape now, indicated by growing amount of foreign direct investment (FDI), exports, cash-in flow, and government expenditure. It is expected that in 2010, Indonesia attracts 30% more FDI than last year. I was informed that in the 1st half of 2010, it already attracted 49% bigger Y-on-Y.

To furnish its aging infrastructure, government plans to spend $200 billion in the next 5 years to build roads, ports, airports, and other facilities to make it more competitive to investors eyes.

Indonesia’s stock market index, the Jakarta Composite Index, broke its record high earlier this week as it reached 3013.40 points bringing its total gains this year to 19 %, the most among Asia’s 10 largest markets. The Indonesian rupiah has risen 3.6 percent this year, the second-best-performing currency in Asia, according to data compiled by Bloomberg. A strong rupiah and low inflation have helped the central bank keep its key interest rate at a record low of 6.5 percent to support Southeast Asia’s biggest economy.

Indonesia has managed to avoid recession during the global downturn, unlike some of its more export-reliant neighbors.

Giant companies such as Telkom Indonesia, Pertamina, BCA, BRI, are 4 companies in World’s 1000 largest companies, while many others are merging or acquiring other companies and ready to join the club.

Indonesia’s current GDP is $670 billion, and most analysts said that its economy will grow at the pace of 6-6.5% this year, which means that Indonesia will reach the one-trillion-economy club in 2014, making it the 13th country joining the elite club. In 2015, Indonesia’s GDP percapita will be $ 5,000.

Well, it’s only a few years to go. Assuming that political stability can be safely maintained, growth can be accelerated into a faster pace of 8% a year, Indonesia will take over Brazil somewhere before 2020, as Brazil economic growth is now declining.

I can’t wait, Indonesia.

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17 Responses to “Indonesia: One Trillion Dollar Economy”

  1. Ibnu says:

    Please check at: en.wikipedia.org/…/List_of_countries_by_future_GDP_(PPP)_estimates
    Indonesia has joined the club!

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  2. ivan says:

    In 2015, Indonesia’s GDP per capita could be $ 5,000. not will but could..
    and this might pick your interest:
    http://www.thejakartapost.com/news/2010/03/26/2016-a-catastrophic-year-indonesia.html
    in 2016, our country (all of us.. not just the gov) could be faced with a heavy test that might define what we truly are ^___^

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  3. akhyari hananto says:

    ivan,thanks for the comment. I havent read the link u gave, however , im pretty sure that indonesia econ will reach 1.2 trillion usd in 2015. Nothing will stop this from happening unless there,s a war happens, or massive nationwar disaster.god forbid.

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    • saifulmuhajir says:

      I can wait too. And I am wishing that something good is coming not nationwar disaster or something like that. I love my Indonesia.

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  4. pharmacy tech says:

    What a great resource!

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  5. Tawhid1982 says:

    Congratulations our Indonesian brothers.

    It is great news that Indonesian economy is growing steadily.

    One question: Is Indonesia’s GDP going to reach 1 trillion USD in exchange rate terms or Purchasing Power Parity terms?

    I believe some time in 2007 Indonesia’s GDP based on Purchasing Power Parity was already over $1.4 trillion (surpassing South Korea).

    As Indonesia is the most populous out of all Muslim majority countries and regions, I hope Indonesia takes a place amongst the leading nations of the world to represent the Muslim world as a whole.

    I also hope Indonesians realize that your country is the largest in your neighbouring region and must have the largest economy, largest military entreprise, defense outlay, scientific output, technological innovation, political influence and neither Australia, nor Singapore, nor any other non-regional nonmuslim countries should be paid much heed to when you decide your own country’s future.

    Hopefully, with Malaysia and Brunei, the ASEAN region’s Muslim countries can increase beneficial cooperation and also alleviate the difficulties of Muslims in Souther Thailand and Philippines.

    I would hope Indonesians and the gov’t think globally: that is think how Indonesia could project its interests, and interests of Muslims worldwide by increasing cooperation with all Muslims around the world (many other Muslim majority countries and regions also have booming economies).

    At the same time, maybe Indonesians, Malaysians, Bruneians (is that the right spelling?) can help spread the message of the true religion across East Asia/Far East.

    Best wishes.

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  6. diego says:

    Btw, to tawhid, just so you know, indonesia is not an islamic country.

    We’re composed of diverse ethnicities and religions. Beside, we practice different flavor of islam (unlike in arab countries).

    The interest of the development of our country is not necesarily “to spread the message of ‘true’ religion”. Instead, it’s for the development of our people, so that they have a better living and education, opening up their mind, and be friends to all (not limiting ourselves to befriend only “islamic countries”).

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    • Tawhid1982 says:

      To diego, it’s sad that you turn a wonderful congratulatory message into something not so welcoming.

      Any true Muslim will be sad, disheartened that Indonesia or any other country is not truly Islamic. That someone should state it openly they are not Islamic (maybe with pride) is shameful. It’s like saying that you are not morally upright, openly.

      Any Muslim would be glad that Indonesia with the most number of Muslims (at least Muslims by name) are growing steadily. Also Muslims would be elated if Indonesia plays its due role around the world as a strong, responsible country representing the most populous among Muslim majority countries.

      Not only is it morally wrong to abandon the true religion, it seems all countries and societies who abandon the true Message tend to become weak, pawns of other countries.

      We are veering away from the original topic.

      Back to the topic, I say congratulations to Indonesia.

      I think Indonesia already passed the trillion dollar mark in 2007.
      Some jealous, ignorant westerners may have reduced Indonesia’s GDP figures in their own publications.

      In reality, I believe Indonesia already overtook South Korea’s GDP and as it marches ahead, it should try to overtake Russia, Mexico and Brazil.

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      • diego says:

        Ok. I’m giving up. You just said being non-muslim equals to being “not morally upright”. Really, I don’t think it worth my time to talk to people like you. Btw, you just displayed the kind of world-view and mentality that brought arab world to their knees. Of course, as a proud indonesian, I don’t want my country to make that kind of silly mistake.

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      • diego says:

        Quote:
        —-
        Not only is it morally wrong to abandon the true religion, it seems all countries and societies who abandon the true Message tend to become weak, pawns of other countries.
        —-

        Such as china, japan, south korea, taiwan, singapore, hong kong, australia, canada, brazil, etc.

        yeah, right.

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  7. Akhyari Hananto says:

    Dear Brother Tawhid, and Bro Diego
    Thanks for your comments.
    For your information, as per PPP, Indonesia reaches $1 trillion by the end of 2010, i am sure. Or perhaps, it is already reached.
    And yeah, let’s draw a common line that this region will develop and be prosperous trough collective work, mutual understanding, tolerance, justice, and common thoughts on developments and prosperity, not necessarily on particular religion, it’s the people.
    I understand that Islam SEA is gaining momentum to prosper where Brunei, Msia and Indonesia are getting closer to prosperity, and this also be a momentum to open our view wider to understand that we are not alone in this world. In fact, prosperity was brought from our collective work with all sides.

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    • Tawhid1982 says:

      Dear brother Akhyari,

      Thanks for your nice comments.

      I think if you look at IMF’s 2007 publications, Indonesia already surpassed $1 trillion GDP by PPP.

      By 2010, the GDP should be close to $1.4 trillion as per PPP method.

      Take a look at IMF’s 2007 “outlook”:
      http://www.imf.org/external/pubs/ft/weo/2007/02/weodata/weorept.aspx?sy=2007&ey=2008&scsm=1&ssd=1&sort=country&ds=.&br=1&c=536&s=PPPGDP&grp=0&a=&pr.x=123&pr.y=18

      Indonesia GDP (in billion international dollars) 1,053.696 for 2007
      1,137.372 for 2008

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      • diego says:

        Btw, do you realize, the so called “not-morally-uprights” (e.g.: chinese indonesians, christian bataks, balinese hindus, etc) contributed to that achievement? Probably you don’t, because of your limited understanding of indonesian society (which is bhinneka. Look it up if you don’t know. Learn to appreciate that, probably it’s an alien concept in your land).

        I object that you (seem to) try to hijack that result just for your “benefit” (advancing the spread of the “true” religion). Sad. Indonesians, in general, are religious (we believe in higher power, which we call god), moral (in the sense that we tend to be reserved, respect elders, etc), but not bigoted and conflictuous (unlike in another place. yours, maybe?).

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  8. Mans says:

    Bro diego, please don’t pollute this forum with “selfishness”, our country is secular, but we can not close our eyes, that if our country is the country with the largest Muslim population in the world. Naturally, if Muslim brothers in other parts of the world hoped more from us…just be a little wiser…

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  9. Nusantara says:

    What makes Indonesia as one of the greatest civilizations in the history of humanity is: “UNITY IN DIVERSITY”. A TRUE Indonesian should never forget this.

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