Finally. Indonesia Economy Hits Trillion-dollar Milestone
Indonesia’s economy, the largest in Southeast Asia, hit a milestone in 2017 by reaching US$1 trillion.
Gross domestic product (GDP) was an estimated US$1.004 trillion in 2017, eventhough economic growth was probably lower than the 5.2% initially projected.
The liberalisation of foreign investment regulations boosted FDI inflows. By tackling bottlenecks in transportation, agriculture and fisheries, and energy diversification, Indonesia could unlock a further $1.8 trillion in business opportunities by 2030. To achieve its full potential, MicKinsey advises labour productivity will need to grow at an annual rate of 4.6% (a 60% increase over the average growth rate this past decade).
The Indonesian economy is the largest economy in Southeast Asia and is one of the world’s largest emerging markets. Indonesian GDP is projected to exceed $3.7 trillion in 2030. “This will significantly increase Indonesia’s global geopolitical influence as a leading emerging market, shaping international policymaking in global forums such as the G-20 and United Nations,” according to IHS.
Indonesia has a large and fast-growing population (250 million), fast-growing household spending by middle class households and rapid growth projected in a wide range of industries. Currently the world´s 16th largest economy, McKinsey estimates Indonesia could leap into 7th place (overtaking Germany and the UK) if it can increase productivity. A rapidly growing population, set to add 90 million more people over the next two decades, is spurring domestic consumption.
Four Southeast Asian economies will soon pass the trillion-dollar GDP mark by 2030. Following Indonesia, three members of ASEAN were projected to achieve this prestigious milestone: Malaysia, Thailand, and the Philippines.
(For various sources)