Your partner for success

Indonesia
Chamber of Commerce Country Factsheet Last update: 20.06.2018

Your advisors at the Chamber of Commerce

  • Sabrina Aksil
    +352423939374
  • Na Shi
    +352423939364
Contact us: asia@cc.lu

Key Indicators

Area
1,904,569 km2
Population
260,580,739 (July 2017 est.)
Government type
republic
Languages
Bahasa Indonesia (official, modified form of Malay), English, Dutch, local dialects (of which the most widely spoken is Javanese)
GDP
$3.243 trillion (2017 est.)
Growth rate
5.2% (2017 est.)
HDI
113
Capital
Jakarta

 

Introduction

The Dutch began to colonize Indonesia in the early 17th century; Japan occupied the islands from 1942 to 1945. Indonesia declared its independence shortly before Japan's surrender, but it required four years of sometimes brutal fighting, intermittent negotiations, and UN mediation before the Netherlands agreed to transfer sovereignty in 1949. A period of sometimes unruly parliamentary democracy ended in 1957 when President SOEKARNO declared martial law and instituted "Guided Democracy." After an abortive coup in 1965 by alleged communist sympathizers, SOEKARNO was gradually eased from power. From 1967 until 1998, President SUHARTO ruled Indonesia with his "New Order" government. After street protests toppled SUHARTO in 1998, free and fair legislative elections took place in 1999. Indonesia is now the world's third most populous democracy, the world's largest archipelagic state, and the world's largest Muslim-majority nation. Current issues include: alleviating poverty, improving education, preventing terrorism, consolidating democracy after four decades of authoritarianism, implementing economic and financial reforms, stemming corruption, reforming the criminal justice system, 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 in Papua by the separatist Free Papua Movement.

Source: The CIA World Factbook - Indonesia

 

Macroeconomic indicators

Economic growth remains robust and is projected to edge higher in 2018 and 2019. Stronger consumer confidence and real income growth will lift private consumption. Infrastructure investment will remain high. Improvements in licensing and transport connectivity will support private investment and export performance. Inflation has been subdued, but the effects of higher commodity prices and currency depreciation will generate some upward pressure.

Bank Indonesia raised interest rates in May to contain exchange rate pressure. Some further tightening is assumed over the projection horizon as US interest rates rise. A steeper path may be needed if capital outflows persist. The budget deficit is projected to narrow slightly, which is prudent given rising uncertainty. Continued reforms to the tax administration and strengthened compliance will provide the means for higher infrastructure and social spending that promote inclusive growth. Reducing structural and administrative bottlenecks and fighting corruption remain crucial to strengthen growth.

Source: OECD - Economic Forecast

 IMF Statistics:

 

Subject descriptor20142015201620172018
Gross domestic product, constant prices
Percent change
5.0244.7944.9355.3005.500
Gross domestic product, current prices
U.S. dollars (Billions)
890.597858.953940.9531,014.8671,096.902
Gross domestic product per capita, current prices
U.S. dollars (Units)
3,531.8043,362.3573,635.8053,870.7984,129.696
Inflation, average consumer prices
Percent change
6.3956.3633.6584.1524.399
Volume of imports of goods and services
Percent change
-0.940-5.3826.5297.6737.858
Volume of exports of goods and services
Percent change
0.850-1.5843.7998.1107.838
Unemployment rate
Percent of total labor force
5.9406.1805.6005.6505.550
Current account balance
U.S. dollars (Billions)
-27.510-17.654-21.281-23.686-26.744
Current account balance
Percent of GDP
-3.089-2.055-2.262-2.334-2.438
Colored cells are estimates

Source: IMF Statistics - Indonesia

 

Luxembourg and the country

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 No.103, p.2166)
  • Effective as of 01.01.1995 (Memorial 1993, A No.103, p.2166)

Source: Administration des Contributions Directes

Air Services agreement

None

 

Further information

Foreign Trade

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
Tungmahamek Sathorn
Bangkok 10120 Thailand
Tel.: +66 2 677 7360
Fax: +66 2 677 7364
Email: bangkok.amb(at)mae.etat.lu 

Honorary Consul

Honorary Consul with jurisdiction in the territory of IndonesiaMr Teguh Putro SULISTO

Satmarindo Building
Jalan Ampera Raya 5
Jakarta 12560 Indonesia

Tel: +62 21 7883 6682
Fax: +62 21 7883 7304
E-Mail: tedpsulisto@yahoo.com / tsd101(at)cbn.net.id

Source: Ministry of Foreign Affairs of Luxembourg

Economic and Commercial Attaché (FIT): 

Mrs Nathalie Surmont

Deutsche Bank Building, 16th floor
80, Jalan Iman Bonjol
ID - 10310 Jakarta

Tel: +62 21 316 2036
Fax: +62 21 316 2038
E-mail: jakarta(at)fitagency.com

Source: AWEX

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.

Link: Ducroire Office - Country Risk for Indonesia

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