Indonesia's economy is the largest economy in South-East Asia, a market-dominated economy. The government plays a major role in managing and managing it by owning more than 164 enterprises and companies, and by setting prices for some commodities such as fuel, rice and electricity. The gross domestic product (GDP) is US $ 1,285 trillion in 2013, the agricultural sector accounts for 14.3% of GDP, industry contributes 46.6% and the services sector 39.1%.

Economic growth

• The Indonesian economy has witnessed remarkable growth and achieved positive growth in recent years compared with the rest of East Asia, despite the economic challenges in the world economy. Indonesia's economic growth rate has ranged between 5.5 and 6.5% over the past three years.
• The Indonesian economy's resilience to the current financial and economic crisis is attributed to several factors, including the strength of the main economic indicators, the lack of direct dependence on export revenues to the euro zone and the United States, and the growth of domestic consumption, which has become one of the most important engines of the economy. Indonesian GDP up to the first quarter of 2014, followed by the investment sector by 32%, exports by 23% and government spending by 10%.

The most important current economic indicators

• The Indonesian government expects Indonesia's economic growth rate for 2017 to be between 5.1 and 5.5 percent, lower than the previous year's forecast of 5.2 percent to 5.6 percent, due to internal and external factors, The World Economic Outlook, according to the International Monetary Fund and the World Bank, which has set growth of 3.1% this year and 3.4% in 2017, but the growth of the global economy does not significantly affect the economic recovery in Indonesia as a result of a series of proactive policies launched by The government, including a prudent monetary policy and increased government investment in infrastructure, And policy reform to enhance the business and investment climate.
• Indonesia's economic growth is also expected to be higher than the global economic growth, based on subsidized domestic factors such as domestic demand conditions, continued internal consumer power and high investment value. Community consumption will remain strong in parallel with continued purchasing power, improved social protection and the strengthening of class society. However, it is expected that a decline in previous expectations will occur by about 0.1%.
• In such a situation, the Indonesian economy will rank third in the list of the most developed countries, as the economic growth of the
• developed countries will be strong in the first quarter of 2017, but is expected to decline after three months.
• In its budget for 2017, the government set the economic growth forecast at 5.3% and inflation of 4%. The exchange rate is 13,300 rupees per dollar
• Economic indicators show that the consumption of society will be stronger next year, and economic growth depends on domestic investment, even after the government launched a series of new economic policies. However, both exports and imports declined in volume and value in the first quarter of 2016. However, imports declined faster than exports, reducing the budget deficit to 2.1% of GDP.
• On the other hand, government spending increased despite weak government revenues. In the revised draft budget for 2016, the proposal for a tax amnesty program was mentioned where the proportion of people receiving less than expected for this program and expenditures is subject to change again.
• Inflation in May was 3.3% year-on-year, with slight rise in food prices. One of the reasons for rising domestic food inflation is trade protection.
• Trade reforms introduced at the beginning of 2016 have significantly changed the direction of trade policy, which can help reduce inflation in food prices. This is due to the relatively low inflation rate.
• Other Indonesian economic indicators include the rise in banking benefits in Indonesia and fiscal policy aimed at reducing class disparities in society, such as the decision to raise fuel subsidies taken in 2015 to raise funds to support poor people.
• The Indonesian economy continues to face the challenges of enhancing competitiveness in Indonesia's manufacturing sector. 

 

Foreign Trade with the Republic of Indonesia

The volume of trade between the State of Qatar and Indonesia jumped from US $ 649.3 million in 2010 to more than US $ 1.68 billion by the end of 2014. The balance of trade is in favor of the State of Qatar, whose oil exports to Indonesia amounted to US $ 1.2 billion. Qatar imports wood, clothing, footwear, household equipment, machinery and equipment from Indonesia, while Indonesia imports gas, oil and petrochemicals from Qatar.