Economic Condition of Indonesia

ECONOMIC CONDITION OF INDONESIA

Indonesia is a country where many things are highlighted and noticed by people around the world. One of the topics is its economic condition. Many experts, domestic or international, have been taking notes on Indonesia’s economic trends and are making forecasts on how Indonesia’s economy will be in the following year, including this year’s economic condition. This essay will describe the status of Indonesia’s current economic condition. Indonesia is actually doing well in terms of economics. Indonesia was not highly affected by the global economy crisis that happened in 2008.

However, with all these great improvements in the current Indonesia’s economic, it seems that there are not many visible changes in the eyes of the Indonesian citizens. Many people have trouble with poverty and unemployment. Not to mention other problems that can be a roadblock to Indonesia’s economic growth such as corruption and uneven development throughout the country. There are three variables that we can use to see the condition of Indonesia’s current economic:

a. GDP (Gross Domestic Product) or Output

b. The Unemployment Rate

c. The Inflation Rate

Figure 1. The Percentage of GDP growth, infltation rate, and unemployment rate in indonesia

Percentage of (%) | Years | AVG |

| 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | |

GDP rate | 3,3 | 3,7 | 4,1 | 5,1 | 5,6 | 5,5 | 6,3 | 6,1 | 4,5 | 6,1 | 4,42 |

Unemployment rate | 8,10 | 9,06 | 9,67 | 9,86 | 11,24 | 10,28 | 9,11 | 8,39 | 7,87 | 7,14 | 9,07 |

Inflation Rate | 12,55 | 10,03 | 5,06 | 6,4 | 17,11 | 6,6 | 6,59 | 11,06 | 2,78 | 6,96 | 8,51 |

Source : GDP data from http://www.setneg.go.id

Unemployment rate and inflation rate data from http://www.bps.go.id

We can see data that occurred from 2001 until 2010 that Indonesia’s economic condition was fluctuating. We can also analyze this condition which is started from GDP, unemployment, and...