Indonesia

Indonesia is the largest economy in Southeast Asia and one of the most influential emerging markets globally. In 2023, Indonesia recorded a nominal GDP of approximately USD 1.39 trillion, with a population of over 277 million, making it the fourth most populous country in the world. The country has a GDP per capita of around USD 5,000, and its official currency is the Indonesian Rupiah (IDR). Indonesia has demonstrated strong macroeconomic resilience, maintaining GDP growth of around 5%, controlled inflation, and stable fiscal management despite global economic uncertainties.

Indonesia’s economy is broadly diversified across manufacturing, agriculture, mining, energy, and services. The services sector contributes over 45% of GDP, driven by trade, transport, finance, tourism, telecommunications, and the digital economy. Manufacturing accounts for nearly 20% of GDP, making Indonesia one of the few emerging economies with a strong industrial base, particularly in automobiles, electronics, textiles, food processing, and chemicals. Agriculture remains an important employer and contributor, with Indonesia being a leading global producer of palm oil, rubber, cocoa, coffee, rice, and fisheries products.

Indonesia is exceptionally rich in natural resources and plays a strategic role in global commodity supply chains. The country is the world’s largest producer of palm oil and a major exporter of coal, nickel, copper, tin, and bauxite. Notably, Indonesia holds the largest nickel reserves globally, positioning it as a critical player in the electric vehicle (EV) and battery supply chain. The government has implemented export bans and downstream processing policies to encourage value addition, industrialization, and domestic manufacturing, particularly in minerals and energy-related industries.

In terms of trade, Indonesia’s exports exceeded USD 290 billion in 2023, driven by coal, palm oil, metals, machinery, chemicals, and manufactured goods, while imports were valued at approximately USD 240 billion, including capital goods, machinery, refined fuels, and raw materials. Indonesia’s major trading partners include China, the United States, Japan, India, ASEAN countries, and the European Union. The country also benefits from its membership in multiple trade frameworks, including ASEAN, RCEP, G20, and now BRICS Plus, enhancing its global economic integration.

Indonesia has made significant progress in infrastructure development and investment reforms, focusing on ports, roads, railways, airports, and digital connectivity across its vast archipelago of over 17,000 islands. Policy reforms such as the Omnibus Law on Job Creation aim to improve the ease of doing business, attract foreign direct investment, and streamline regulations. The country has emerged as a key destination for FDI in manufacturing, renewable energy, EV supply chains, digital services, and infrastructure, supported by a growing middle class and expanding consumer market.

From a strategic perspective, Indonesia is positioning itself as a leader in sustainable development and energy transition. The country is investing in renewable energy, geothermal power (among the world’s largest reserves), electric mobility, and carbon markets, while also balancing its role as a major fossil fuel exporter. Indonesia’s long-term development vision emphasizes inclusive growth, industrial upgrading, digital transformation, and regional connectivity.