Indonesia’s economy, the most important in Southeast Asia, reached a milestone in 2017, reaching $1 trillion.
Gross domestic product (GDP) in 2017 is estimated at $1.004 trillion, although economic growth was likely lower than the originally forecast 5.2%.
Liberalization of foreign investment regulations has increased FDI inflows. By addressing bottlenecks in transportation, agriculture and fisheries, and diversifying energy, Indonesia could unlock one other $1.8 trillion in business opportunities by 2030. To reach its full potential, MicKinsey advises that labor productivity should grow at an annual rate of 4.6% (a 60% increase compared with the common rate of growth over the past decade).
Indonesia’s economy is the most important in Southeast Asia and one in all the most important emerging markets on the planet. Indonesia’s GDP is predicted to exceed $3.7 trillion in 2030. “This will significantly increase Indonesia’s global geopolitical influence as a leading emerging market, shaping international policy in global forums such as the G-20 and the United Nations,” IHS said.
Indonesia has a big and rapidly growing population (250 million), rapidly growing middle-class household spending, and rapid growth is forecast across a wide selection of industries. Currently the world’s sixteenth largest economy, McKinsey estimates that Indonesia could jump to seventh place (overtaking Germany and the UK) if it might improve productivity. A rapidly growing population, expected so as to add 90 million people over the following 20 years, is boosting domestic consumption.
Four Southeast Asian economies will soon cross the $1 trillion GDP mark by 2030. After Indonesia, three ASEAN members were set to attain this prestigious milestone: Malaysia, Thailand and the Philippines.
(For various sources)
