Chambre de Commerce - Fiche d'information pays Dernière mise à jour: 09.02.2017
The Dutch began to colonize Indonesia in the early 17th century; Japan occupied the islands from 1942 to 1945. Indonesia declared its independence after Japan's surrender, but it required four years of intermittent negotiations, recurring hostilities, and UN mediation before the Netherlands agreed to transfer sovereignty in 1949. Free and fair legislative elections took place in 1999 after decades of repressive rule. Indonesia is now the world's third most populous democracy, the world's largest archipelagic state, and home to the world's largest Muslim population. Current issues include: alleviating poverty, improving education, preventing terrorism, consolidating democracy after four decades of authoritarianism, implementing economic and financial reforms, stemming corruption, holding the military and police accountable for human rights violations, addressing climate change, and controlling infectious diseases, particularly those of global and regional importance. In 2005, Indonesia reached a historic peace agreement with armed separatists in Aceh, which led to democratic elections in Aceh in December 2006. Indonesia continues to face low intensity armed resistance by the separatist Free Papua Movement.
GDP growth has been high and is set to edge up in 2017 and 2018. Government infrastructure spending continues to underpin economic activity, and both private consumption and private investment are showing signs of firming. The current account deficit is projected to be stable.
The central bank has eased rates six times since the beginning of the year. The government has released a string of reform packages over the past year to improve the business environment, streamline investment and liberalise inward investment. There should be scope for a few more interest rate cuts in the medium term, as inflation is projected to remain subdued. However, the fiscal balance is deteriorating owing to slower growth and low commodity prices. Public expenditure is being reined in to avoid breaching the legal deficit limit of 3% of GDP.
The government’s priority has been to lift spending on infrastructure and social services, notably health and education. This policy is welcome as it will raise growth and make it more inclusive. However, the deficit's proximity to its legal ceiling has led to cuts in planned expenditure. While an ongoing tax amnesty may help ease this constraint in the short term, in the longer term tax revenues, which are very low, will have to be boosted. Policies are needed to address the narrow tax base, the low number of taxpayers and weak compliance
Source: OECD - Economic Forecast
Subject descriptor 2014 2015 2016 2017 2018 Gross domestic product, constant prices 5.024 4.794 4.935 5.300 5.500 Gross domestic product, current prices 890.597 858.953 940.953 1,014.867 1,096.902 Gross domestic product per capita, current prices 3,531.804 3,362.357 3,635.805 3,870.798 4,129.696 Inflation, average consumer prices 6.395 6.363 3.658 4.152 4.399 Volume of imports of goods and services -0.940 -5.382 6.529 7.673 7.858 Volume of exports of goods and services 0.850 -1.584 3.799 8.110 7.838 Unemployment rate 5.940 6.180 5.600 5.650 5.550 Current account balance -27.510 -17.654 -21.281 -23.686 -26.744 Current account balance -3.089 -2.055 -2.262 -2.334 -2.438
Source: IMF Statistics - Indonesia
Le Luxembourg et le pays
Existing conventions and agreements
Non double taxation agreement
In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.
- Convention from 14.01.1993 (Memorial 1993, A, p. 2165 )
- Effective as of 1.01.1995 (Memorial 1994, A, p. 516)
Air Services agreement
The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.
You can see the statistics on the website of the Statec.
Contact points in Indonesia
Embassy of the Grand Duchy of Luxembourg in Thailand
Ambassador with residence in Bangkok: Mr. Robert Lauer
Q House Lumpini 17th Floor
1 South Sathorn Road
Bangkok 10120 Thailand
Tel.: +66 2 677 7360
Fax: +66 2 677 7364
Economic and Commercial Attaché (FIT):
Deutsche Bank Building, 16th floor
80, Jalan Iman Bonjol
ID - 10310 Jakarta
Tel: +62 21 316 2036
Fax: +62 21 316 2038
Conseiller du Commerce extérieur à Jakarta
Monsieur Joseph SPARTZ
5 Jalan Raya
Tél.: (+62) 21 780 66 82
Fax: (+62) 21 780 74 71
Honorary Consul with jurisdiction in the territory of Indonesia:
Country risk as defined by Office du Ducroire for Indonesia
Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.
Other Useful Links:
- Luxembourg for Business market entry guide to Indonesia: Market entry guides are brochure series published by the Ministry of the Economy and Foreign. The series focuses on worldwide markets, industries and business environments, providing comprehensive and in-depth analysis and guidelines. The brochures cover all aspects relating to a market entry including the economic, financial and legal frameworks. The brochures are a vast knowledge pool, compiled into a practice oriented document with many tips and important addresses.
- Indonesian-Benelux Chamber of Commerce
La Chambre de Commerce et le pays
Evénements à venir