Inflation and Indonesia - 3630 Words

PESTEL analysis of Indonesia | October 3 2009 | SUBMITTED TO: MR. SUNDERASAN SUBMITTED BY: Hitesh GoyalNirupan ChakravarthiSainath.V MBA 12 and PGPRM-9 | | Introduction: Indonesia is one of the largest countries in South-east Asia, between the Indian Ocean and the Pacific Ocean which contain mainly mountainous and covered with rain forests, swamps and consists over 13000 islands. Jakarta is the capital of Indonesia. Indonesia declared its independence on 17th August 1945 from Japan but Netherlands agreed to transfer sovereignty in 1949. Susilo Bambang is the President and Muhammad Yusuf Kalla is the Vice-President of Indonesia. Bahasa is the official language in Indonesia which modified form of Malay but the most widely spoken†¦show more content†¦They have hub of natural resources such as in Oil production, it has 23rd rank, in natural gas production and in export it is on 8th position. GDP: Indonesia has made significant economic advances through last years. Indonesias debt-to-GDP ratio in recent years has declined because of increasingly robust GDP growth which was 6.1% ($915.9 billion) in 2008 compare to 5.5% ($811.1 billion) in 2006 and compression to the world they are on 54th position in GDP growth. 14.4% of GDP earning from agriculture, 37.5% from service sector and the major part 48.1% comes from industry. (The World Bank, 2009) Per capita income: If we talk about per capita income, it was $3,500 in 2006 which was increase up to $3900 in 2008 and comparison to the world it is on the 157th rank in per capita income. A. Average Family Income – 33 (Gina index) B. Distribution of Wealth 1. Income Class Bottom 10% of population represents 4% of wealth Top 10% of population represents 27% of wealth Exchange rate: Indonesian rupiah (IDR) per US dollar - 9,698.9 (2008) compare to 9,159.3 (2006) Indonesian rupiah (IDR) per Indian rupee- 205.97 FDI: FDI is one of the most important factors for every country. It plays a vital role in Indonesia growth rate. It is a developing country so they have good inflow of FDI. It was $67.3 billion in 2008 compare to $58.96 billion in 2007 and they are on 45th position in FDI stock. Inflation rates: Inflation rate is still highShow MoreRelatedInflation and Indonesia3624 Words   |  15 PagesPESTEL analysis of Indonesia | October 3 2009 | SUBMITTED TO: MR. SUNDERASAN SUBMITTED BY: Hitesh GoyalNirupan ChakravarthiSainath.V MBA 12 and PGPRM-9 | | Introduction: Indonesia is one of the largest countries in South-east Asia, between the Indian Ocean and the Pacific Ocean which contain mainly mountainous and covered with rain forests, swamps and consists over 13000 islands. Jakarta is the capital of Indonesia. Indonesia declared its independence on 17th August 1945 from Japan but NetherlandsRead MoreImpact of Budget Deficit Policy1328 Words   |  6 Pagesbudget deficit, a policy which the state revenues are less than the state expenditure. To overcome the lack of revenues, effected by way of debt owed, whether sourced from domestic and abroad, issued a bond, or by printing money (Seignior age). Indonesia there has been a change in the policy of state revenues and state expenditures (the state budget) on the â€Å"New Orde† era and the â€Å"Reformation† era. In the â€Å"New Orde† era applied a policy of budget and state expenditures balanced and dynamic. The stateRead MoreEconomics Assignment Indonesia1331 Words   |  6 Pagesï » ¿INTRODUCTION Indonesia plays major role in today’s economic as Indonesia is one of the countries with the biggest GDP with the 4th largest population in the world. Joining the member of G-20 major economies, Indonesia has successfully emerges as the largest economy in Southeast Asia, moreover, Indonesia also classified as a new industrialized country. Government plays substantial role through ownership of 141 state industries and enterprises, and administration of prices of basic goods such as riceRead MoreThe Determinant Factors Of Equity Return1513 Words   |  7 PagesThe determinant factors of equity return in Indonesia Background Studies about determinant factors of equity return in each country is useful for global portfolio managers and global economic policy makers. Investors, in making profit, need to consider some risky aspects, to make speculation easier to be known, before investing in financial instruments in any country (Chandran et al. 2011, p.1). On the other hand, the government needs to attract capital inflow to support some development investmentsRead MoreThe Macroeconomic Conditions of Indonesia975 Words   |  4 PagesThe macroeconomic conditions of Indonesia are moderately challenging. The World Bank (2012) categories Indonesia as a lower middle income country. The CIA World Factbook (2012) notes that the country still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment and unequal resource distribution among regions. Indonesias GDP is $1.125 trillion per year (PPP), which places it as the 15th-largest economy among nations, behind Canada andRead MoreMalaysia s Income Inequality Trend Essay863 Words   |  4 Pagesmost volatile GDP per capita and GDP per capita growth rate whereas Indonesia has most stable GDP per capita and GDP per capita growth rate which are unaffected by global economic recession and other global economic factors. Figure 5. GDP per capita from 2007 to 2015 Figure 6. GDP per capita growth rate from 2007 to 2015 4. Income Inequality Figure 7. Income inequality trend From the figure 7, we can infer that Indonesia has lowest Income inequality, but in the recent few years, the seemsRead MoreWhatà ­s an Emerging Market Economy? Essay876 Words   |  4 Pagesemerging economy’s production levels rise thus increasing their GDP. The four largest emerging economies are Brazil, Russia, India and China, often abbreviated to the BRICs and the next four largest are Mexico, Indonesia, South Korea and Turkey. More recently, focus has fallen on Mexico, Indonesia, Nigeria and Turkey, now known as the MINT economies as the four emerging economies with the most promise. Emerging market economies experienced a challenging end to 2013 as the interest rates of developed economiesRead MoreExport And Import Markets And Trade Balance Essay1534 Words   |  7 PagesMajor Export/Import Markets and Trade Balance Figure 10. Exports of Indonesia Figure 11. Exports trend of Indonesia Figure 12. Imports of Indonesia Figure 13. Imports trend of Indonesia Figure 14. Trade balance trend of Indonesia As per Economic Complexity Index (ECI) Indonesia is the 79th most complex economy in the world. The country ranks 25th in terms of export in the world. As per 2014 export data, Indonesia imported $178B and exported $178B. This resulted in positive trade balanceRead MoreThe Reform And Implementation Of A New Defined Benefit Public Pension System1657 Words   |  7 PagesINTRODUCTION With the reform and implementation of a new defined benefit public pension system, Indonesia seeks to achieve international standards when it comes to public pensions. A new 1st pillar earnings-related defined benefit scheme named Jaminan Pensiun (JPN) was officially put into place on July 1st. With the exception of the non-contributory zero-pillar program, the implementation of JPN completes the Five Pillar Conceptual Framework suggested by the World Bank (World Bank, 2008). In thisRead MoreCentral Bank Of Indonesi Indonesia1436 Words   |  6 Pages Part 2: Indonesia Transition Indonesia in the fall of 2014 is in a recessionary phase. The GDP dropped from 6.48 in 2011 to a 5.78 in 2013. In addition to that, unemployment has increased from a 5.31 percent in 2011 to a 6.41 percent in 2013. This recession could be caused in part by the high rate of poverty in Indonesia. Currently about 24% of Indonesia’s population lives under the poverty line. The severity of this issue is reflected in the widening gap between the rich and the poor in Indonesia