lowing the sharp contraction and high inflation of 1998. By
following tight monetary policy, the government reduced inflation from
over 70% in 1998 to 2% in 1999. Although interest rates spiked as high
as 70% in response to the monetary contraction, they fell rapidly to
the 10% to 15% range. The economy stopped its free-fall as GDP showed
some growth in the second half of 1999, although GDP for the year as a
whole showed no growth. The government managed to recapitalize a
handful of private banks and has begun recapitalizing the state-owned
banking sector. New lending, however, remains almost unavailable as
banks continue to be wary of issuing new debt in an environment where
little progress has been made in restructuring the huge burden of
outstanding debts. IMF payments were suspended late in 1999 as the
result of evidence that a private bank had illegally funneled payments
it received from the government to one of the political parties. The
government has forecast growth of 3.8% for FY00/01. The spread of
sectarian violence and continuing dissatisfaction with the pace of
bank and debt restructuring will make it difficult for Indonesia to
attract the private investment necessary to achieve this goal.

GDP: purchasing power parity - $610 billion (1999 est.)

GDP - real growth rate: 0% (1999 est.)

GDP - per capita: purchasing power parity - $2,800 (1999 est.)

GDP - composition by sector:
agriculture: 21%
industry: 35%
services: 44% (1999 est.)

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: 3.6%
highest 10%: 30.3% (1996)

Inflation rate (consumer prices): 2% (1999 est.)

Labor force: 88 million (1998)

Labor force - by occupation: agriculture 45%, trade, restaurant, and
hotel 19%, manufacturing 11%, transport and communications 5%,
construction 4% (1998)

Unemployment rate: 15%-20% (1998 est.)

Budget:
revenues: $25.4 billion (of which $6 billion is from international
financial institutions)
expenditures: $25.4 billion, including capital expenditures of $NA
(FY99/00 est.)

Industries: petroleum and natural gas; textiles, apparel, and
footwear; mining, cement, chemical fertilizers, plywood; rubber; food;
tourism

Industrial production growth rate: 1.5% (1999 est.)

Electricity - production: 73.13 billion kWh (1998)

Electricity - production by source:
fossil fuel: 88.19%
hydro: 8.39%
nuclear: 0%
other: 3.42% (1998)

Electricity - consump