Indonesia - A country profile

Indonesia - A country profile

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This article provides an overview of Indonesia for those keen on exploring the possibility of living and working there. The information presented is gathered from open sources and is not exhaustive or meant to supplement or substitute legal and professional advice.

Key facts

  • Official name: Republic of Indonesia (Republik Indonesia)
  • Capital: Jakarta1
  • Geography: 34 provinces
  • Land area: 1,916,906.77 sq km2
  • Population (2019): 268.1 million3
  • Head of state: President Joko Widodo (since October 2014)4
  • National language: Bahasa Indonesia
  • Currency: Rupiah (IDR)5
  • GDP (2019): IDR 15,833.9 trillion6
  • GDP per capita (2019): IDR 59.1 million7

Introduction

The Republic of Indonesia is located between the continents of Asia and Australia. It comprises 16,056 islands, with 34 provinces spreading over five main islands and four archipelagos. The five main islands include Sumatra, Java, Kalimantan, Sulawesi and Papua. The four archipelagos are Riau, Bangka Belitung, Nusa Tenggara, and Maluku. Papua (319,036.05 sq km) is the largest of the 34 provinces and the smallest is Daerah Khusus Ibukota (DKI) Jakarta (664.01 sq km).8

Apart from its vast territory, Indonesia has a dense population and is rich in natural resources. It is also rich in cultural diversity, with each region having its own unique cultural characteristics, local language, dance, custom and costume.9 On 2 October 2009, UNESCO inscribed Indonesian batik on its Representative List of the Intangible Cultural Heritage of Humanity.10

Demographic profile

Indonesia’s population reached 268.1 million in 2019, up from 238.5 million in 2010. The population growth rate was 1.31 percent.11 The most populous province in 2019 was West Java (49.317 million), while the least populous province was West Papua (959,600), which is located in the far eastern region of Indonesia.12

Economic profile

Indonesia is ASEAN’s largest economy.13 Its GDP in 2019 was IDR 15,833.9 trillion, a growth of more than six percent from the IDR 14,838.3 trillion achieved in 2017.14 Since 2014, the Indonesian government has been pushing ahead with its plans to make Indonesia a manufacturing hub for Southeast Asia. In 2018, it launched the Making Indonesia 4.0 Roadmap, which aims to boost the industry’s competitiveness by incorporating major innovations such as artificial intelligence, robotics and sensor technology. The roadmap focuses on the capability upgrading of five manufacturing sectors, namely F&B, automotive, electronics, chemicals, and textile and garment.15

Consumer market

Indonesia is the fourth-largest consumer market in the world, in terms of population size, behind China, India and the United States. Indonesia’s mushrooming middle class is also becoming a dominant force within its consumer market. By 2020, urban consumers are expected to account for an estimated 57 percent of the country’s total population. These consumers are likely to spend more on necessities as well as discretionary items, such as travel, welfare, and leisure items on a per capita basis, and prioritise convenience, with a greater reliance on modern trade outlets and e-commerce deliveries.16

Tourism

Due to its location, Indonesia has a diverse landscape from “from the vibrant tourists’ paradises of Bali and Lombok to the mysteriously shrouded cultures of the Asmat in Papua and those who dwell the highlands of Toraja in South Sulawesi.” Apart from the natural landscapes, culturally it also offers a rich diversity of ancient temples and historical remnants, such as Borobudur Temple in Magelang, Central Java and the Prambanan Temple Compounds, which is located in Yogyakarta and is one of the biggest in Southeast Asia. The island of Bali is also a popular beach holiday destination among tourists.17

International tourist arrivals in Indonesia reached 16.11 million in 2019, up from 15.81 million recorded in 2018.18 The country is eager to grow its tourism sector to boost revenue and help it diversify its sources of economic growth, which is currently largely dependent on commodities.19 It has invested in infrastructure development to enhance connectivity, including the development of new airports and harbours and upgrading existing airports and air navigation facilities. Additionally, the government has also allowed visa-free access to 169 countries to attract foreign visitors.20

Indonesia also promotes itself as a key halal destination in the region by developing areas such as Banda Aceh, Aceh Besar, Sabang, and Lake Laut Tawar.21 Apart from luring Muslim tourists, it is also seeking to develop international medical tourism.22

References

  1. ASEAN member states. (n.d.). Association of Southeast Asian Nations. Retrieved October 15, 2020 from http://asean.org ↩

  2. Statistik Indonesia 2020. (2020). Badan Pusat Statistik, p. 3. Retrieved October 15, 2020, from https://www.bps.go.id ↩

  3. Statistik Indonesia 2020. (2020). Badan Pusat Statistik, p. 3. Retrieved October 15, 2020, from https://www.bps.go.id ↩

  4. Presiden dan Wakil Presiden. (2020). Portal Informasi Indonesia. Retrieved October 15, 2020, from http://indonesia.go.id ↩

  5. ASEAN member states. (n.d.). Association of Southeast Asian Nations. Retrieved October 15, 2020 from http://asean.org ↩ ↩

  6. Statistik Indonesia 2020. (2020). Badan Pusat Statistik, p. 3. Retrieved October 15, 2020, from https://www.bps.go.id ↩

  7. Statistik Indonesia 2020. (2020). Badan Pusat Statistik, p. 3. Retrieved October 15, 2020, from https://www.bps.go.id ↩

  8. Statistik Indonesia 2020. (2020). Badan Pusat Statistik, p. 3. Retrieved October 15, 2020, from https://www.bps.go.id ↩

  9. About Indonesia and Jakarta. (2017). Bank Indonesia. Retrieved October 15, 2020, from http://www.bi.go.id ↩

  10. Indonesian Batik. (2009). UNESCO Intangible Cultural Heritage. Retrieved April 4, 2024, from http://ich.unesco.org ↩

  11. Statistik Indonesia 2020. (2020). Badan Pusat Statistik, p. 3. Retrieved October 15, 2020, from https://www.bps.go.id ↩

  12. Statistik Indonesia 2020. (2020). Badan Pusat Statistik, p. 3. Retrieved October 15, 2020, from https://www.bps.go.id ↩

  13. Indonesia. (2020). The World Bank. Retrieved October 15, 2020, from https://www.worldbank.org ↩

  14. Statistik Indonesia 2020. (2020). Badan Pusat Statistik, p. 3. Retrieved October 15, 2020, from https://www.bps.go.id ↩ ↩

  15. Khairul Anwar. (2019, June 7). Opportunities in Indonesia’s industry 4.0. The Business Times. Retrieved October 15, 2020, from https://www.businesstimes.com.sg ↩

  16. ASEAN in focus: The Indonesian consumer market. (2017, February 15). HKTDC Business. Retrieved October 17, 2017, from http://hkmb.hktdc.com; Dawn of the digital age in Indonesia. (2020, January). Deloitte. Retrieved October 15, 2020, from https://www2.deloitte.com ↩

  17. Explore Indonesia. (2025). Ministry of Tourism, Republic of Indonesia. Retrieved March 5, 2025, from https://www.indonesia.travel; Bali. (2025). Ministry of Tourism, Republic of Indonesia. Retrieved March 5, 2025, from https://www.indonesia.travel ↩

  18. Statistik Indonesia 2020. (2020). Badan Pusat Statistik, p. 3. Retrieved October 15, 2020, from https://www.bps.go.id ↩ ↩

  19. Soeriaatmadja, W. (2017, April 12). Indonesia targets tourism growth to boost revenue. The Straits Times. Retrieved October 15, 2020, from http://www.straitstimes.com ↩

  20. Tourism sector Indonesia: Rising foreign exchange earnings. (2017, January 22). Indonesia Investments. Retrieved October 15, 2020, from https://www.indonesia-investments.com ↩

  21. Indonesia targets Chinese visitors with halal tourism promotion. (2017, August 26). Jakarta Globe. Retrieved October 15, 2020 from https://jakartaglobe.id ↩

  22. Tourism and health ministries to develop medical tourism in Indonesia. (2017, September 27). The Jakarta Post. Retrieved October 15, 2020, from https://www.thejakartapost.com ↩

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