to both slash
underemployment and absorb the 2.3 million workers annually entering the
labor force. Agriculture, including forestry and fishing, is an important
sector, accounting for almost 20% of GDP and over 50% of the labor force.
The staple crop is rice. Once the world's largest rice importer, Indonesia
is now nearly self-sufficient. Plantation crops - rubber and palm oil - and
textiles and plywood are being encouraged for both export and job
generation. Industrial output now accounts for almost 40% of GDP and is
based on a supply of diverse natural resources, including crude oil, natural
gas, timber, metals, and coal. Of these, the oil sector dominates the
external economy, generating more than 20% of the government's revenues and
40% of export earnings in 1989. However, the economy's growth is highly
dependent on the continuing expansion of nonoil exports. Japan remains
Indonesia's most important customer and supplier of aid. Rapid growth in the
money supply in 1989-90 prompted Jakarta to implement a tight monetary
policy in 1991, forcing the private sector to go to foreign banks for
investment financing. Real interest rates remained above 10% and off-shore
commercial debt grew. The growth in off-shore debt prompted Jakarta to limit
foreign borrowing beginning in late 1991. Despite the continued problems in
moving toward a more open financial system and the persistence of a fairly
tight credit situation, GDP growth in 1992 is estimated to have stayed at
6%.
National product: GDP - exchange rate conversion - $133 billion (1992 est.)
National product real growth rate:
6% (1992 est.)
National product per capita:
$680 (1992 est.)
Inflation rate (consumer prices):
8% (1992 est.)
Unemployment rate:
3% ; underemployment 45% (1991 est.)
Budget:
revenues $17.2 billion; expenditures $23.4 billion, including capital
expenditures of $8.9 billion (FY91)
Exports:
$29.4 billion (f.o.b., 1991)
commodities:
petroleum and liquefied natural gas 40%, timber 15%, textiles 7%, rubber 5%,
coffee 3%
partners:
Japan 37%, Europe 13%, US 12%, Singapore 8% (1991)
Imports:
$24.6 billion (f.o.b., 1991)
commodities:
machinery 39%, chemical products 19%, manufactured goods 16%
partners:
Japan 25%, Europe 23%, US 13%, Singapore 5% (1991)
External debt:
$50.5 billion (1992 est.)
Industrial production:
growth rate 11.6% (1989 est.); accounts for almost 40%