GDP Growth Rate
According to data released by the World Bank, in 2023, Indonesia’s GDP was approximately $1.37 trillion, with a GDP growth rate of 5.05%. The per capita GDP was about $4,940.55, returning Indonesia to the category of upper-middle-income countries as defined by the World Bank.
Source: World Bank
GDP Industrial Structure
Based on data from the World Bank, in 2023, the shares of agriculture, industry, and services in Indonesia’s GDP were 12.53%, 40.22%, and 42.88%, respectively.
Source: World Bank
Inflation Rate
According to data from the World Bank, Indonesia’s inflation rate in 2023 was 3.67%, a decrease compared to 2022 (4.21%), but still relatively high compared to 2021 (1.56%).
Foreign Exchange Reserves
As of the end of July 2024, Indonesia’s foreign exchange reserves stood at $145.4 billion, according to data from the Central Bank of Indonesia.
Unemployment Rate
According to data from the World Bank, Indonesia’s unemployment rate in 2023 was 3.31%, a decline of 0.15 percentage points compared to the previous year.
External Debt
As of the end of 2023, Indonesia’s external debt was $408.9 billion, maintaining a relatively low level at 29.8% of GDP, according to data from the Central Bank of Indonesia
Investment Inflows
According to data from the Investment Ministry of Indonesia, in 2023, the total investment inflows into Indonesia amounted to 1,418.9 trillion rupiah, an increase of 17.5% compared to the previous year. Among these, investments in downstream industries reached 375.4 trillion rupiah, accounting for 26.5% of the total investment. Within the downstream industries, investments in the mining sector were 216.8 trillion rupiah, including 136.6 trillion rupiah in nickel smelting plants, 9.7 trillion rupiah in bauxite smelting plants, and 70.5 trillion rupiah in copper smelting plants. Additionally, investments in the agricultural sector were 50.8 trillion rupiah, forestry 51.8 trillion rupiah, oil and gas 46.3 trillion rupiah, and electric vehicles 9.7 trillion rupiah.
Fiscal Revenue and Expenditure
According to data from the Ministry of Finance of Indonesia, in 2023, the government’s budget balance was 459.5 trillion rupiah, a slight decrease compared to the previous year’s 478.95 trillion rupiah. As of December 31, 2023, the government’s assets were 1.3072 trillion rupiah, while liabilities were 953.6 trillion rupiah.
Credit Rating
The three major international credit rating agencies—S&P, Moody’s, and Fitch—have all assigned investment-grade sovereign credit ratings to Indonesia.
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On April 22, 2021, S&P maintained Indonesia’s sovereign credit rating at “BBB” with a “negative” outlook for long-term debt.
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In May 2022, S&P maintained Indonesia’s sovereign credit rating at “BBB” (investment grade) and revised the outlook from “negative” to “stable.”
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In July 2024, S&P confirmed Indonesia’s sovereign credit rating at BBB with a stable outlook.
We hope this article is helpful to you. If you are interested in exploring business opportunities in Indonesia, feel free to leave a comment or contact us.
privatelyIn the next issue, we will introduce the “Economic Overview of Indonesia in 2025 (Part II): Key Industries.”
