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Indonesia Highlight
Facts and Problems
Where is Indonesia?
Source: www.map-of-asia.us/
Area (sq km)
Indonesia
Japan
Comparison
Total
1,919,440
377,835
5.1
Land
1,826,440
374,744
4.9
93,000
3,091
30.1
Water
Population (2008 estimation)
Indonesia
Japan
Comparison
Number of People
Total
% to total
Number of People
% to total
237,512,355
100
127,288,419
100
1.9
0-14 years
67,453,508.82
28.4
17,438,513.40
13.7
3.9
15-64 years
156,045,617.24
65.7
82,355,607.09
64.7
1.9
13,775,716.59
5.8
27,494,298.50
21.6
0.5
65 years and over
Source: CIA Fact Book, Author’s calculation
Quarterly and Yearly GDP Growth, Indonesia 2001-2007 (y.o.y, %)
%
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
Q407
Q307
Q207
Q107
Q406
Q306
Q206
Q106
Q405
Q305
Q205
Q105
Yearly
Q404
Q304
Q204
Source: Central Statistic Indonesia, Author’s calculation
Q104
Q403
Q303
Q203
Q103
Q402
Q302
Q202
Q102
Q401
Q301
Q201
Q101
Quarterly
Structural Change in the Indonesia Economy
GDP at Market Price, by Industrial Origin, Indonesia 1970
Services
11%
9%
Finance, Real
Estate & Business
Services
4%
Finance, Real
Estate & Business
Services
3%
Electricity, Gas &
Manufacturing
Water Supply
Industry
0%
9%
Agriculture
47%
Trade, Hotel &
Restaurant
14%
Construction
6%
Mining & Quarrying
5%
GDP at Market Price, by Industrial Origin, Indonesia 2007
Electricity, Gas &
Water Supply
0%
Transport &
Communication
7%
Manufacturing
Industry
12%
Services
10%
Agriculture
14%
Mining & Quarrying
11%
Finance, Real
Estate & Business
Services
7%
Manufacturing
Industry
26%
Electricity, Gas &
Water Supply
1%
Source: Central Statistic and MOF Indonesia and , Author’s calculation
Agriculture
21%
Transport &
Communication
6%
Trade, Hotel &
Restaurant
17%
Trade, Hotel &
Restaurant
15%
Construction
8%
Mining & Quarrying
26%
GDP at Market Price, by Industrial Origin, Indonesia 1990
Services
10%
Finance, Real
Estate & Business
Services
8%
Agriculture
25%
Transport &
Communication
4%
Transport &
Communication
3%
Trade, Hotel &
Restaurant
19%
Construction
3%
GDP at Market Price,
by Industrial Origin, Indonesia 1980
Services
Construction
5%
Electricity, Gas &
Water Supply
1%
Mining & Quarrying
13%
Manufacturing
Industry
20%
Problems….
School Enrollment, Indonesia (% )
100
90
80
70
60
50
40
30
20
10
0
1994
1996
1998
Population aged 7-12 years
2000
Population aged 13-15 years
Source: Central Statistic Indonesia, Author’s calculation
2002
2004
Population aged 16-18 years
2006
Problems….
Number of People Living Below The Poverty-Line and Its
Percentage of Population, Indonesia, 1996-2005
60
30%
24.2%
50
23.4%
25%
19.1%
17.5%
18.2%
17.4%
16.7%
20%
16.0%
35.1
36.1
37.3
38.4
37.9
38.7
48.0
34.0
20
18.4%
15%
30
49.5
Millions
40
10%
10
5%
0
0%
1996
1998
1999
2000
2001
Number of People
Source: Central Statistic Indonesia, Author’s calculation
2002
2003
% to population
2004
2005
Problems….
External Debt Outstanding, Indonesia (Billions USD)
90
80
70
60
50
40
30
20
10
0
2007
2006
2005
Private
2004
2003
Source: Central bank, Indonesia, Author’s calculation
2002
2001
2000
1999
1998
1997
1996
Public
Problems….
Government Budget Highlight, Indonesia
2007
Government Revenue and Grant
Domestic Revenue
Grant
Government Expenditure
Central Government Expenditure
others
Interest Payment
Subsidies
Regional Expenditure
Primary Balance
Surplus/Deficit
Financing
Domestic Financing
Foreign Financing (net)
Gross Drawing
Amortization
Source: MOF, Indonesia, Author’s calculation
637,799
635,927
1,873
669,881
443,510
257,137
78,910
107,463
226,371
46,828
-32,082
32,082
32,714
-19,530
33,192
-52,722
2008
781,354
779,214
2,140
854,660
573,431
384,191
91,366
97,875
281,229
18,060
-73,306
73,306
89,975
-16,669
42,989
-59,659
Highlight the
Japanese Official
Development
Assistance (ODA)
in Indonesia
Muhammad Cholifihani
Outstanding Japanese
ODA to Indonesia
World Bank, Japan and ADB assist
the development of Indonesia under
ODA scheme.
Contribution of Japanese ODA to
Indonesia is the biggest bilaterally
(72,7% in 2004 and 72.9% in 2006)
OUTSTANDING OF ODA GOVERNMENT EXTERNAL DEBT BY
CREDITOR
(Millions of USD)
Creditor
Bilateral
2002
2003
2004
2005
2006
2007
26,074.0
29,884.0
30,339.0
27,795,.0
28,107.0
28,540.0
1,584.0
1,604.0
1,521.0
1,573.0
1,470.0
1,345.0
Austria
864.0
1,013.0
1,049.0
871.0
914.0
946.0
Netherland
791.0
957.0
969.0
873.0
890.0
888.0
United Kingdom
356.0
368.0
370.0
236.0
239.0
217.0
18,902.0
21,646.0
22,061.0
20,138.0
20,348.0
20,833.0
Germany
1,083.0
1,384.0
1,425.0
1,351.0
1,433.0
1,493.0
France
1,377.0
1,657.0
1,698.0
1,495.0
1,558.0
1,586.0
Spain
382.0
417.0
415.0
457.0
440.0
421.0
Other Countries
735.0
838.0
831.0
803.0
814.0
811.0
29,112.0
29,977.0
28,905.0
26,566.0
18,837.0
19,055.0
8,310.0
8,582.0
8,869.0
9,140.0
9,409.0
10,177.0
788.0
884.0
949.0
1,003.0
1,322.0
1,552.0
10,802.0
9,776.0
8,943.0
8,107.0
7,421.0
6,822.0
IDB
138.0
151.0
163.0
203.0
397.0
233.0
NIB
170.0
155.0
139.0
121.0
105.0
91.0
65.0
79.0
79.0
71.0
74.0
79.0
IMF
8,829.0
10,239.0
9,654.0
7,806.0
0
0
EIB
7.0
111.0
109.0
116.0
109.0
102.0
MIGA
3.0
USA
Japan
Multilateral
ADB
IDA
IBRD
IFAD
Priority sector of Japanese
Assistance
• In 2003, the Government of Japan initiated to strengthen its Official
Development Assistance (ODA) policy with the new objectives are
“to contribute to the peace and development of the international
community, and thereby to help ensure Japan’s own security and
prosperity” in order to response new world development challenges
such as peace building and taking into account the views of
Japanese people .
• In 2004, the Government of Japan formulated the country
assistance strategy for Indonesia that should be prioritized on the
achievement of these three main areas of
(i) Sustainable growth driven by private sectors
(ii) Creating a democratic and equitable society
(iii) Peace and stability, and the provision of maximum assistance to
the Indonesian Government’s self-reliant efforts.
Some crucial issues to be considered
in the near future
1.
2.
3.
Improvement of human resource
development.
Absorption of job opportunity is quite
low. Low productivity and fiscal
capacity for education.
Promotion of economic growth.
Slow movement of economic growth
after Asian crisis.
Expansion the job opportunity.
The unemployment rate was quite
high after Asian crisis. In 1998,
unemployment rate was 5.5%,
increase significantly by 9.6% in
2003. In 2007, unemployment rate
was 10.4%
(Continue..)
4.
5.
6.
Improvement of environment
quality
Reducing poverty.
Population below the poverty
line is 38,4 million people or
15,6% of total population in
Indonesia in 2002. In 2004 the
people below the poverty line
was 36,1 million
people( 18,16 % of total
population) . In 2006 was 39,1%
or 17,6% of population .
Declining the regional gap. The
regional gap between East
Indonesia and west Indonesia
will be serious issue on
development in the future.
Conclusion
• The outstanding of Japanese ODA has a
smaller tendency. However, bilaterally, the
contribution among bilateral donor
countries is the biggest.
• The priority areas of Japanese ODA may
match with some crucial issues on
development in the near future.
ありがとうございました。
(Terima kasih)
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