Economy of Indonesia in the context of "Climate change in Indonesia"

⭐ In the context of climate change in Indonesia, the national economy is considered…

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⭐ Core Definition: Economy of Indonesia

Indonesia has a mixed economy with dirigiste characteristics. It is one of the emerging market economies in the world and the largest in Southeast Asia. As an upper-middle income country and member of the G20, Indonesia is classified as a newly industrialized country. Indonesia is 17th largest economy in the world by nominal GDP and the 7th largest in terms of GDP (PPP). Indonesia's internet economy reached US$77 billion in 2022, and is expected to cross the US$130 billion mark by 2025.

Indonesia depends on the domestic market and government budget spending and its ownership of state-owned enterprises (the central government owns 844 companies). Indonesian state-owned companies have assets valued at more than 1 trillion USD as of 2024.

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πŸ‘‰ Economy of Indonesia in the context of Climate change in Indonesia

Due to its geographical and natural diversity, Indonesia is one of the countries most susceptible to the impacts of climate change. This is supported by the fact that Jakarta has been listed as the world's most vulnerable city, regarding climate change. It is also a major contributor as of the countries that has contributed most to greenhouse gas emissions due to its high rate of deforestation and reliance on coal power.

Made up of more than 17,000 islands and with a long coastline, Indonesia stands particularly vulnerable to the effects of rising sea levels and extreme weather events such as floods, droughts, and storms. Its vast areas of tropical forests are vital in balancing out climate change by taking in carbon dioxide from the atmosphere. Projected impacts on Indonesia's agricultural sector, national economy and health are also significant issues.

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In this Dossier

Economy of Indonesia in the context of Agriculture in Indonesia

Agriculture in Indonesia is one of the key sectors within the Indonesian economy. In the last 50 years, the sector's share in national gross domestic product has decreased considerably, due to the rise of industrialisation and service sector. Nevertheless, for the majority of Indonesian households, farming and plantation remains as a vital income generator. In 2013, the agricultural sector contributed 14.43% to national GDP, a slight decline from 2003's contribution which was 15.19%. In 2012, the agricultural sector provides jobs to approximately 49 million Indonesians, representing 41% of the country's total labor force.

Currently, approximately 30% of Indonesia's land area is used for agriculture. Indonesian agriculture sector is supervised and regulated by the Indonesian Ministry of Agriculture.

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Economy of Indonesia in the context of Tiger Cub Economies

The Tiger Cub Economies collectively refer to the economies of the developing countries of Indonesia, Malaysia, the Philippines, Thailand and Vietnam, the five dominant countries in Southeast Asia.

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Economy of Indonesia in the context of Tourism in Bali

Tourism in Indonesia is an important component of the Indonesian economy as well as a significant source of its foreign exchange revenues. Indonesia was ranked at 20th in the world tourist industry in 2017, also ranked as the ninth-fastest growing tourist sector in the world, the third-fastest growing in Asia and fastest-growing in Southeast Asia. In 2018, Denpasar, Jakarta and Batam are among of 10 cities in the world with fastest growth in tourism, 32.7, 29.2 and 23.3 percent respectively. The tourism sector ranked as the 4th largest among goods and services export sectors.

In 2019, Indonesia recorded 16.10 million foreign tourist arrivals, seeing a 1.9% per cent increase than that of 2018. In 2015, 9.73 million international visitors entered Indonesia, staying in hotels for an average of 7.5 nights and spending an average of US$1,142 per person during their visit, or US$152.22 per person per day. Singapore, Malaysia, China, Australia, and Japan are the top five sources of visitors to Indonesia.

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Economy of Indonesia in the context of Rice production in Indonesia

Rice production in Indonesia is an important part of the national economy. Indonesia is the third-largest producer of rice in the world.

Rice is the staple food in the Indonesian diet, accounting for more than half of the calories in the average diet, and the source of livelihood for about 20 million households, or about 100 million people, in the late 1980s. Rice cultivation covered a total of around 10 million hectares throughout the archipelago, primarily on sawah. The supply and control of water is crucial to the productivity of rice land, especially when planted with high-yield seed varieties. In 1987 irrigated sawah covered 58 percent of the total cultivated area, rainfed sawah accounted for 20 percent, and ladang, or dryland cultivation, together with swamp or tidal cultivation covered the remaining 22 percent of rice cropland.

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Economy of Indonesia in the context of State-owned enterprises of Indonesia

In Indonesia, state-owned enterprises (Indonesian: Badan Usaha Milik Negara, BUMN) play an important role in the national economy. Their roles includes contributor for national economy growth, providing goods or services which are not covered by private company, employment provider, providing support guidance to small and medium businesses, and source of government revenue. The State-Owned Enterprise Regulatory AgencyΒ (id) (previously the Ministry of State Owned Enterprises) represents the government's function as a shareholder of most of those companies, while some are represented by the Ministry of Finance.

Aside from SOEs, there are also provincially- or municipally-owned corporations, locally known as Badan Usaha Milik Daerah (BUMD). The primary difference between BUMNs and BUMDs is the ownership of the enterprise, whereas BUMNs are controlled by the Ministry of State Owned Enterprise while BUMDs are directly controlled by the local government. BUMDs roles are similar with BUMNs, with heavy emphasis on providing goods or services to the local community. In addition, there are also village-owned enterprises which are run by village governments.

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