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Indonesia Econ Analysis

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Submitted By rylan78
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Population: 247mm (US is 314mm).
Growth Rate: 1.9%
Distribution by age, sex, geographic areas: 58% of population lives in Java, the largest island in the archipelago. There are 300 distinct ethnic groups in Indonesia, yielding an eclectic mix of over 500 languages. Javanese is the largest ethnic group, representing 42% of all ethnic groups on the islands. Hundreds of other groups make up the remaining 60% of the cultural demographic. Eastern Indonesia is inhabited by Melanesians, but regional identities are largely overcome by a sense of strong nationalism.
Economic statistics and activity: GNP, GDP, rate of growth: The economy of Indonesia is the largest economy in Southeast Asia with a GDP of US$928.3B (nearly one Trillion), and the world’s 16th largest in terms on nominal GDP. The debt ratio to GDP is 26%. The industry sector is the largest, accounting for more than 46% of GDP. The country’s growth rate is roughly 6%
In 2010, Indonesia was the 27th ranked exporting country, shipping products in decreasing order to Japan, Singapore, the United States, and China. Indonesia‘s export commodities are derivative of the country’s vast natural resources - oil and gas, electrical appliances, plywood, rubber, and textiles.
Personal income per capita: In 2010, the per capita national income was 8,412,617 Rupiah. The current exchange rate is .000087 Rupiah to 1 US Dollar. This exchange puts the Indonesian national income at less than USD $1,000.00. The exchange rate was different in 2010, but the country was still in abject poverty.
Average family income: The average wealth per adult in Indonesia in mid-2011 was USD $12,000.00. The poorest fifth account for just 8 percent of consumption, while the richest fifth account for 45 percent. Average income today is about US$650 a year.
Minerals and resources:
Indonesia has a plethora of natural resources; including oil and natural gas, as well as precious metals such as tin, copper and gold. The country also has exports in oil and gas, electrical appliances, rubber, and textiles.
Transportation:
Indonesia’s’ chief mode of transportation method is roadways, with nearly 450,000 km utilized as of 2008. The country also integrates rail for large commodity transport and minimal passenger transport. Since the country is an archipelago, ocean transport is fundamental; it truly enables domestic and international trade. Each of the major islands has developed at least one major port. Air traffic is also significant; the country has a well-developed airline network – all major cities are accessible by plane.

Communications systems:
Communications in Indonesia are unique because of the distinct nature of the location and accessibility of the country, which consists of over 17,500 islands. The country first interconnectivity to Australia was an undersea telegraph cable that was completed in 1871. The country still utilizes submarine telecommunications cable to connect to Europe, Japan, and Australia. The country relies on land lines for telephone usage and by the end of 2010 had a cellular penetration rate of 67%. The country also has history of radio and television use; there are over 800 radio stations with over 31.5mm radios nationwide. Televisions are used by nearly 39mm people, who have access to 11 national channels and around 60 local channels.
Working conditions:
Indonesia has a disproportionately young workforce, with over 2/3 between the ages of 15-34. There is a high incidence of unemployment and underemployment in Indonesia. The current unemployment rate is hovering around 6%, but recent memory (2006) has seen it twice that. Close to half of the population is underemployed, which is described as working less than full time. The manufacturing workforce lacks education; they are skilled laborers. Export factories have been documented forcing overtime, inadequate pay and unsafe workplaces. Minimum wage in Indonesia varies by province, with the low currently $65.00/week and the high being $131/week (more than double).
Employee-employer relations are tenuous, with a large manufacturing sector with limited education. There is constant pressure to lower cost, sometime resulting in adverse working conditions. According to the International Labor Organization, "women are likely to be more adversely affected by the [economic] crisis than men. They are concentrated in the most precarious forms of wage employment and are thus more vulnerable to lay-offs."

Principle industries:
According to the CIA World Factbook, Indonesia’s chief industries are petroleum and natural gas, textiles, apparel, footwear, mining, cement, chemical fertilizers, plywood, rubber, food, tourism

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