What Are the Economic Differences Between Indonesia and Thailand?

What Are the Economic Differences Between Indonesia and Thailand?

Indonesia and Thailand are two of the largest economies in Southeast Asia, with diverse natural resources and strategic geographic locations. While both countries have experienced economic growth and development over the past few decades, there are significant differences between the two economies.

Economic Structure and Diversification

One of the key differences between the two economies is the structure of their economies. Indonesia has a more diversified economy, with a mix of agriculture, manufacturing, and services sectors. The agriculture sector accounts for around 13% of the country's GDP, while the manufacturing and services sectors account for around 20% and 60% of GDP, respectively.

In contrast, Thailand's economy is more focused on exports and manufacturing, with the manufacturing sector accounting for around 30% of the country's GDP. The country is a major exporter of electronic goods, automobiles, and machinery, with exports accounting for around 70% of Thailand's GDP. The services sector, which includes tourism, accounts for around 60% of Thailand's GDP.

Foreign Investment and Trade

Both countries have attracted significant foreign investment over the past few decades, but Indonesia has been slower to open up its economy to foreign investment compared to Thailand. However, Indonesia has made efforts to improve its business climate and attract more foreign investment in recent years.

In terms of trade, both countries are members of the Association of Southeast Asian Nations (ASEAN) and have been working to increase trade and economic cooperation within the region. Thailand is also a member of several other regional trade agreements, including the ASEAN-China Free Trade Area (ACFTA) and the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA). Indonesia is a member of the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) and the ASEAN-India Free Trade Area (AIFTA).

Natural Resources

Both countries have significant natural resources, but Indonesia has a much larger resource base. Indonesia is the world's largest producer of palm oil and a major exporter of coal, while Thailand is a major exporter of rice and other agricultural products. Indonesia also has significant reserves of natural gas, oil, and minerals, which have contributed to the country's economic growth.


Both countries have made significant investments in infrastructure in recent years, with Thailand is still slightly ahead of Indonesia. Thailand has a more developed transportation system, including a modern highway network, a well-developed railway system, and several international airports. Indonesia has made significant efforts to improve its infrastructure in recent years to support economic growth and development. The government has implemented various infrastructure projects across the country, focusing on transportation, energy, water supply, and telecommunications. 


Akhyari Hananto

I began my career in the banking industry in 1997, and stayed approx 6 years in it. This industry boost his knowledge about the economic condition in Indonesia, both macro and micro, and how to More understand it. My banking career continued in Yogyakarta when I joined in a program funded by the Asian Development Bank (ADB),as the coordinator for a program aimed to help improve the quality of learning and teaching process in private universities in Yogyakarta. When the earthquake stroke Yogyakarta, I chose to join an international NGO working in the area of ?disaster response and management, which allows me to help rebuild the city, as well as other disaster-stricken area in Indonesia. I went on to become the coordinator for emergency response in the Asia Pacific region. Then I was assigned for 1 year in Cambodia, as a country coordinator mostly to deliver developmental programs (water and sanitation, education, livelihood). In 2009, he continued his career as a protocol and HR officer at the U.S. Consulate General in Surabaya, and two years later I joined the Political and Economic Section until now, where i have to deal with extensive range of people and government officials, as well as private and government institution troughout eastern Indonesia. I am the founder and Editor-in-Chief in Good News From Indonesia (GNFI), a growing and influential social media movement, and was selected as one of The Most Influential Netizen 2011 by The Marketeers magazine. I also wrote a book on "Fundamentals of Disaster Management in 2007"?, "Good News From Indonesia : Beragam Prestasi Anak Bangsa di dunia"? which was luanched in August 2013, and "Indonesia Bersyukur"? which is launched in Sept 2013. In 2014, 3 books were released in which i was one of the writer; "Indonesia Pelangi Dunia"?, "Indonesia The Untold Stories"? and "Growing! Meretas Jalan Kejayaan" I give lectures to students in lectures nationwide, sharing on full range of issues, from economy, to diplomacy Less
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