Tourism / Transport
Government expenditure on healthcare in Indonesia is about 3.1 percent of its total gross domestic product. Every citizen is protected under Jaminan Kesehatan Nasional (JKN), a scheme to implement universal health care in the country which launched by Ministry of Health of Indonesia. It is expected that spending on healthcare will increase by 12% a year and reach US$46 billion a year by 2019. Under JKN, all Indonesians will receive coverage for a range of treatments via health services from public providers as well as those private organisations that have opted to join the scheme. The 2010 maternal mortality rate per 100,000 births for Indonesia is 240. The main health problems are air quality, disease, child malnutrition, alcohol and smoking. Health outcomes have significantly improved in Indonesia since the 1960s. Life expectancy at birth is 70.8 years. The child mortality rate has declined from 220 per 1,000 live births in 1960 to 45 per 1,000 live births in 2007. It has been suggested that over a third of the children under 5 have stunted growth. More than 28 million live below the poverty line of US$17 a month and about half the population have incomes not much above it. The malnutrition status has shown steady progress from 38 percent in 1990 to 25 percent in 2000. The rate of smoking is very high and about 400,000 die each year from smoking related illnesses.
Science and technology
Living in an agrarian and maritime culture the people in Indonesian archipelago have been famous in some traditional technologies, particularly in agriculture and marine. In agriculture, for instance, the people in Indonesia, and also in many other Southeast Asian countries, are famous in paddy cultivation technique namely terasering. Bugis and Makassar people in Indonesia are also well-known with their technology in making wooden sailing vessel called pinisi boats.
In aerospace technology, Indonesia has a long history in developing military and small commuter aircraft as the only country in Southeast Asia to produce and develop its own aircraft, also producing aircraft components for Boeing and Airbus, with its state-owned aircraft company (founded in 1976), the Indonesian Aerospace (Indonesian: PT. Dirgantara Indonesia), which, with EADS CASA of Spain developed the CN-235 aircraft, which has been exported to multiple countries. B. J. Habibie, a former Indonesian president played an important role in this achievement. While active as a professor in Germany, Habibie conducted many research assignments, producing theories on thermodynamics, construction, and aerodynamics, known as the Habibie Factor, Habibie Theorem, and Habibie Method respectively. Indonesia also hopes to manufacture the South Korean KAI KF-X fighter.
Indonesia has its own space agency and space program, and is also the first developing country to operate its own satellite system, known as Palapa. Palapa is a series of communication satellites owned by Qatari-controlled company Indosat Ooredoo. The first satellite, PALAPA A1 was first launched on 8 July 1976 Florida time, or on 9 July 1976 Western Indonesian Time on a US rocket, Delta 2914, from the Kennedy Space Center. As of 2016, Indonesia has launched 11 satellites to connect alongside the archipelago. The space agency has expressed a desire to put Indonesian satellites in orbit with native launch vehicles by 2040.
Indonesia has a well established railway industry, with its state-owned train manufacturer company, the Indonesian Railway Industry (Indonesian: PT. Industri Kereta Api), located in Madiun, East Java. Since 1982 the company has been producing passenger train wagons, freight wagons and other railway technologies and exported to many countries, such as Malaysia and Bangladesh. In the 1980s an Indonesian engineer, Tjokorda Raka Sukawati invented a road construction technique named Sosrobahu which becomes famous afterwards and widely used by many countries. The technology has been applied in Malaysia, the Philippines, Singapore, Thailand and the United States.
With an estimated userbase of 132,700,000, Indonesia is one of the top five largest countries by number of Internet users, and its Facebook and Twitter user populations are fourth and third largest, respectively, of any country. The majority of Internet users in Indonesia are between the ages of 18 and 25, with an average Internet usage of 4.7 hours daily. Approximately 85% of Internet users depend primarily on their mobile phones for access, while the number of laptop users is greater than that of personal computer and tablet users combined. The Internet remains a relatively new communication medium in Indonesia. Like other developing countries, Indonesia began Internet development in the early 1990s. Unusually, Indonesia's Internet participation began with a small private group, known as the "Paguyuban Network", or "Network Group". Its first Internet service provider, IndoNet, began operation in Jakarta in mid-1994.
Both nature and culture are major components of Indonesian tourism. The natural heritage can boast a unique combination of a tropical climate, vast archipelago and long stretch of beaches. These natural attractions are complemented by a rich cultural heritage that reflects Indonesia's dynamic history and ethnic diversity. The ancient Prambanan and Borobudur temples, Toraja and Bali, with its Hindu festivities, are some of the popular destinations for cultural tourism.
Indonesia has a well-preserved natural ecosystem with rainforests that stretch over about 57% of Indonesia's land (225 million acres). Forests on Sumatra and Kalimantan are examples of popular tourist destinations, such as Orang Utan wildlife reserve. Moreover, Indonesia has one of longest coastlines in the world, measuring 54,716 kilometres (33,999 mi).
With 20% of the world's coral reefs, over 3,000 different species of fish and 600 coral species, deep water trenches, volcanic sea mounts, World War II wrecks, and an endless variety of macro life, scuba diving in Indonesia is both excellent and inexpensive. Bunaken National Marine Park, at the northern tip of Sulawesi has more than 70% of all the known fish species of the Indo-Western Pacific Ocean. According to Conservation International, marine surveys suggest that the marine life diversity in the Raja Ampat Islands is the highest recorded on Earth. Moreover, there are over 3,500 species living in Indonesian waters, including sharks, dolphins, manta rays, turtles, morays, cuttlefish, octopus and scorpaenidae, compared to 1,500 on the Great Barrier Reef.
Indonesia has 8 UNESCO World Heritage Sites, such as the Komodo National Park, Cultural Landscape of Bali, Ujung Kulon National Park, Lorentz National Park, Tropical Rainforest Heritage of Sumatra, comprises three national parks on the island of Sumatra: Gunung Leuser National Park, Kerinci Seblat National Park and the Bukit Barisan Selatan National Park; and 18 World Heritage Sites in tentative list, such as the historic urban centres of Jakarta Old Town, Sawahlunto Old Coal Mining Town, Semarang Old Town, as well as Muara Takus Compound Site.
The heritage tourism is focussed on specific interest on Indonesian history, such as colonial architectural heritage of Dutch East Indies era. The activities among others are visiting museums, churches, forts and historical colonial buildings, as well as spending some nights in colonial heritage hotels. The popular heritage tourism attractions are Jakarta Old Town and the royal Javanese courts of Yogyakarta, Surakarta and the Mangkunegaran.
Bali island received the Best Island award from Travel and Leisure in 2010. The island of Bali won because of its attractive surroundings (both mountain and coastal areas), diverse tourist attractions, excellent international and local restaurants, and the friendliness of the local people. According to BBC Travel in 2011, Bali is one of the World's best islands, ranking second after Santorini, Greece. Bali is a major world surfing destination, with popular breaks dotted across the southern coastline and around the offshore island of Nusa Lembongan. As part of the Coral Triangle, Bali, including Nusa Penida, offers a wide range of dive sites with varying types of reefs.
Urban tourism activities includes shopping, sightseeing in big cities, and enjoying modern amusement parks, resorts, spas, nightlife and entertainment. Beautiful Indonesia Miniature Park as well as Ancol Dreamland with Dunia Fantasi (Fantasy World) theme park and Atlantis Water Adventure are Jakarta's answer to Disneyland-style amusement park and water park. The capital city, Jakarta, is a shopping hub in Southeast Asia. The city has numerous shopping malls and traditional markets. With a total of 550 hectares, Jakarta has the world's largest shopping mall floor area within a single city. The annual "Jakarta Great Sale" is held every year in June and July to celebrate Jakarta's anniversary. Bandung is a popular shopping destination for fashion products among Malaysians and Singaporeans.
Since January 2011, Wonderful Indonesia has been the slogan of an international marketing campaign directed by the Indonesian Ministry of Culture and Tourism to promote tourism. In 2015, 10.4 million international visitors entered Indonesia, staying in hotels for an average of 8.5 nights and spending an average of US$1,190 per person during their visit, or US$140 per person per day.
Indonesia's Armed Forces (TNI) include the Army (TNI–AD), Navy (TNI–AL, which includes Marine Corps), and Air Force (TNI–AU). The army has about 400,000 active-duty personnel. Defense spending in the national budget was 0.9% of GDP in 2015, and is controversially supplemented by revenue from military commercial interests and foundations.
The Indonesian Armed Forces was formed during the Indonesian National Revolution, when it undertook a guerrilla warfare along with informal militia. As a result of this, and the need to maintain internal security, the Armed forces including the Army, Navy, and Air Force has been organised along territorial lines, aimed at defeating internal enemies of the state and potential external invaders. From the 1950s to 1960s, the country struggled to maintain its unity against local insurgencies and separatist movements in some of its provinces. Separatist movements in the provinces of Aceh and Papua have led to armed conflict, and subsequent allegations of human rights abuses and brutality from all sides. Following a sporadic thirty-year guerrilla war between the Free Aceh Movement (GAM) and the Indonesian military, a ceasefire agreement was reached in 2005. From 1961 to 1963, the TNI was involved in the military campaign to incorporate Western New Guinea into Indonesia, which pitted the TNI against the Netherlands New Guinea. From 1962 to 1965, the TNI fought in a confrontation against Malaysia. The armed forces under Suharto was directly involved in the mass killings fighting against the Communist Party of Indonesia in 1965. One of the reforms following the 1998 resignation of Suharto was the removal of formal TNI representation in parliament; nevertheless, its political influence remains extensive. There has been a significant, albeit imperfect, implementation of regional autonomy laws, and a reported decline in the levels of violence and human rights abuses, since the presidency of Susilo Bambang Yudhoyono in Papua.
The Global Competitiveness Report 2017-2018, ranks Indonesia 36th by World Economic Forum.Indonesia has a mixed economy in which both the private sector and government play significant roles. The country is the largest economy in Southeast Asia and a member of the G20 major economies. Indonesia's estimated gross domestic product (nominal), as of 2017, is US$1.020 trillion while GDP in PPP terms is US$$3.257 trillion. It is the sixteenth largest economy in the world by nominal GDP and is the seventh largest in terms of GDP (PPP). As of 2017, per capita GDP in PPP is US$12,432 (international dollars) while nominal per capita GDP is US$3,895.
The debt ratio to GDP is 26%. The services is the economy's largest and accounts for 43.3% of GDP (2016), this is followed by manufacturing sector (42.9%) and agriculture (13.7%). Since 2012, the service sector has employed more people than other sectors. In 2014 accounting for 44.8% of the total labour force was employed on service sector, this has been followed by agriculture (34.3%) and industry (20.9%). Agriculture, however, had been the country's largest employer for centuries.
Over time, the structure of the Indonesian economy has changed considerably. Historically, the economy has been heavily weighted towards the agricultural sector, reflecting both its stage of economic development and government policies in the 1950s and 1960s to promote agricultural self-sufficiency. A gradual process of industrialisation and urbanisation began in the late 1960s, and accelerated in the 1980s as falling oil prices saw the government focus on diversifying away from oil exports and towards manufactured exports. This development continued throughout the 1980s and into the 1990s despite the oil counter-shocks. During these periods, gross domestic product ("GDP") rose at an average rate of 7.1%. Indonesia saw consistent growth, with the official poverty rate falling from 60% to 15%. From the mid 1980s, trade barriers were reduced and the Indonesian economy became more globally integrated. The 1997 Asian financial crisis affected Indonesia both economically and politically. The government's initial response was to float the rupiah, raise key domestic interest rates, and tighten fiscal policy. The effects of the crisis were severe. By November 1997, rapid currency depreciation had caused public debt to reach US$60 bn, imposing severe strains on the government's budget. In 1998, real GDP contracted by 13.1%. The economy reached its low point in mid-1999 and real GDP growth for the year was 0.8%. Inflation reached 72% in 1998 but slowed to 2% in 1999.
Indonesia's recent strong economic growth has also been accompanied by relatively steady inflation. Since an inflation target was introduced in Indonesia in 2000, the GDP deflator and the CPI have grown at an average annual pace of 10¾ per cent and 9 per cent, respectively, similar to the pace recorded in the two decades prior to the Asian crisis, but well below the pace in the 1960s and 1970s. Inflation has also generally trended lower through the 2000s, with some of the fluctuations in inflation reflecting government policy initiatives such as the changes in fiscal subsidies in 2005 and 2008 which caused large temporary spikes in CPI growth. Since 2007, however, with the improvement in banking sector and domestic consumption, national economic growth has accelerated to over 6% annually and this helped Indonesia weather the 2008–2009 Great Recession. The Indonesian economy performed strongly during the financial crisis of 2007–2008 and in 2012, its GDP grew by over 6%. Indonesia regained its investment grade rating in late 2011 after losing it in 1997. As of 2014, 11% of the population lived below the poverty line and the official open unemployment rate was 5.9%.
Indonesia has extensive natural resources, including crude oil, natural gas, coal, tin, copper, and gold. Indonesia's major imports include machinery and equipment, chemicals, fuels, and foodstuffs, and the country's major export commodities include oil and gas, electrical appliances, plywood, rubber, and textiles. In an attempt to boost the domestic mineral processing industry and encourage exports of higher value-added mineral products, the Indonesian government implemented a ban on exports of unprocessed mineral ores in 2014.
Palm oil production is important to the economy of Indonesia as the country is the world's biggest producer and consumer of the commodity, providing about half of the world's supply. Oil palm plantations stretch across 6 million hectares (roughly twice the size of Belgium). Indonesia has set a replanting plan for 4.7 million hectares of palm oil plantation to boost productivity. As of 2012, Indonesia produces 35 percent of the world's certified sustainable palm oil (CSPO).
The tourism sector contributes to around US$10.1 billion of foreign exchange in 2013, and ranked as the 4th largest among goods and services export sectors. In 2016, Indonesia have reached the target of 12 million visitors, being a phenomenal growth of 15.3% in one year, up from 10.4 million in 2015. China, Singapore, Australia, Malaysia, and Japan are the top five source of visitors to Indonesia.
Indonesia has a sizeable automotive industry, which produced almost 1.18 million motor vehicles in 2016, ranking as the 17th largest producer in the world. Nowadays, Indonesian automotive companies are able to produce cars with high ratio of local content (80% – 90%). With production of 13 billion packs in 2016, Indonesia is the second largest producer of instant noodle after China which produces 38.5 billion packs a year. Indofood is the largest instant noodle producer in the world. Indomie brand by Indofood is one of the Indonesia's best known global brand.
Of the world's 500 largest companies measured by revenue in 2016, the Fortune Global 500, one is headquartered in Indonesia: Pertamina.
Indonesia was the 26th biggest exporting country in the world in 2015, down one place compared to 2014. In the 2009–2014 period, the exports of Indonesia have increased at an annualised rate of 7.3%, from US$138 billion in 2009 to US$197 billion in 2014. The most recent exports are led by coal briquettes which represent 8.71% of the total exports, followed by palm oil (7.63%), petroleum gas (5.9%), crude petroleum (3.7%) and rubber (2.6%). Indonesia's main export markets (2015) are the United States (12%), China (11%), Japan (11%), Singapore (8.4%) and India (7.8%). The major suppliers of imports to Indonesia are China (25%), Singapore (20%), Japan (8.1%), South Korea (5.6%) and Thailand (5.5%). In 2015, Indonesia ran a trade surplus with export revenues of US$161 billion and import expenditure of US$139 billion.
In 2015, Indonesia imported $139 billion, making it the 31st largest importer in the world. During the last five years the imports of Indonesia have increased at an annualised rate of 12.5%, from $98.7 billion in 2009 to $178 billion in 2014. The most recent imports are led by refined petroleum which represented 9.3% of the total imports of Indonesia. The top import origins of Indonesia are China, Singapore, Japan, South Korea and Thailand.
The road transport system is predominant, with a total length of 523,974 kilometres (325,582 miles) as of 2015. Many cities and towns have some form of transportation for hire available as well such as taxis. There are usually bus services such as the Kopaja buses and the more sophisticated TransJakarta bus rapid transit system in Jakarta. TransJakarta is the largest and longest bus rapid transit system in the world, boasting some 230.9 kilometres (143.5 miles) in 13 corridors and 10 cross-corridor routes and carrying 430,000 passengers daily in 2016. In addition, BRT systems exist in Yogyakarta, Palembang, Bandung, Denpasar, Pekanbaru, Semarang, Makassar, and Padang without segregated lanes. Many cities have motorised auto rickshaws (bajaj), and share taxis known locally as Angkot are a common sight in even medium-sized towns. Cycle rickshaws, called becak in Indonesia, are a regular sight on city roads and provide inexpensive transportation.
The rail transport system has four unconnected networks in Java and Sumatra primarily dedicated to transport bulk commodities and long-distance passenger traffic. The inter-city rail network on Java is complemented by local commuter rail services in the Jakarta metropolitan area (KA Commuter Jabodetabek), Surabaya, Medan, and Bandung. In Jakarta, suburban rail services carry 885,000 passengers a day. In addition, mass rapid transit and light rail transit systems are under construction in Jakarta and Palembang. The government's plan to build a high-speed rail (HSR) was announced in 2015, the first in Indonesia and Southeast Asia. It is expected to connect the capital Jakarta with Bandung in neighbouring West Java province, covering a distance of around 140 kilometres (87 miles). Plans were mentioned for a possible extension of the HSR to Indonesia's second largest city, Surabaya in East Java; construction will begin in early 2018.
Sea transport is extremely important for economic integration and for domestic and foreign trade. It is well developed, with each of the major islands having at least one significant port city. Because Indonesia encompasses a sprawling archipelago, maritime shipping provides essential links between parts of the country. Boats in common use include large container ships, a variety of ferries, passenger ships, sailing ships, and smaller motorised vessels. Traditional wooden vessel pinisi are widely used as the inter-island freight service in Indonesian archipelago.
Port of Tanjung Priok is Indonesia's busiest port, and the 26th busiest port in the world in 2015, handling over 5.15 million TEUs. To boost port capacity, a two-phase "New Tanjung Priok" extension project is ongoing. When fully operational in 2023, it will triple the existing annual capacity. In 2015, ground breaking of North Sumatra's Kuala Tanjung Port has been completed. The port is an extremely strategic development that can accommodate 400,000 TEUs (twenty-foot equivalent units) per year, overtaking Johor's Tanjung Pelepas Port and could even compete with Singapore's port.
Frequent ferry services cross the straits between nearby islands, especially in the chain of islands stretching from Sumatra through Java to the Lesser Sunda Islands. On the busy crossings between Sumatra, Java, and Bali, car ferries run frequently 24 hours per day. There are international ferry services between across the Strait of Malacca between Sumatra and Malaysia, and between Singapore and nearby Indonesian islands, such as Batam. A network of passenger ships makes longer connections to more remote islands, especially in the eastern part of the archipelago. The national shipping line, Pelni, provides passenger service to ports throughout the country on a two- to four-week schedule. These ships generally provide the least expensive way to cover long distances between islands. Smaller privately run boats provide service between islands.
As of 2014, there were 237 airports in Indonesia, including 17 international airports. Soekarno–Hatta International Airport is the 22nd busiest airport in the world, serving 54,969,536 passengers, according to Airports Council International. Today the airport is running over capacity. After an expansion with a third terminal was completed in 2016, the total capacity of the three terminals increased to 43 million passengers a year. The first and second terminals will be revitalized in order to accommodate 67 million passengers a year. Ngurah Rai International Airport in Bali and Juanda International Airport in Surabaya are the country's second and third busiest airport.
Garuda Indonesia, the flag carrier of Indonesia since 1949, is one of the world's leading airlines and the 20th member of the global airline alliance SkyTeam. The airline's modernisation plan in 2009 has resulted in numerous awards, including Skytrax's "The World's Best Economy Class" in 2013, a "5-Star Airline" rating and "The World's Best Cabin Crew."
Energy and water supply
According to IEA Indonesia was the 10th top natural gas producer in 2009: 76 billion cubics (bcm) 2.5% of world production of which 36 bcm was exported. In 2009 Indonesia was the 5th top coal producer: 263 million tonnes hard coal and 38 million tonnes brown. The majority of this, 230 Mt of hard coal, was exported. Indonesia has significant energy resources, starting with oil – it has 22 billion barrels of conventional oil and gas reserves, of which about 4 billion are recoverable. That's the equivalent of about10 years of oil production and 50 years of gas. It has about 8 billion barrels of oil-equivalent of coal-based methane (CBM) resources. It has 28 billion tonnes of recoverable coal. It has 28 gigawatts (GW) of geothermal potential. 1 Includes recoverable resources of oil and gas yet to be discovered. It has even more in the form of solar, wind, biomass and biofuel potential. Indonesia's domestic oil consumption has grown from 1.2 million barrels per day in 2003 to 1.6 million barrels per day in 2013. As of 2015, Indonesia's total national installed power generation capacity stands at 55,528.51 MW.
Jatiluhur Dam, the country's largest dam which serves several purposes including the provision of hydroelectric power generation, water supply, flood control, irrigation and aquaculture. The power station has an installed capacity of 186.5 MW which feeds into the Java grid managed by the state-owned electricity company Perusahaan Listrik Negara. The Jatiluhur reservoir helps irrigate 240,000 ha (593,053 acres) of rice fields. The earth-fill dam is 105 m (344 ft) high and withholds a reservoir of 3,000,000,000 m3 (2,432,140 acre·ft).