Mining, manufacturing, and utilities activities contributed 31.6% to Indonesia’s gross value added (GVA) in 2024, followed by wholesale, retail, and hotel activities (16.1%), and agricultural activities (13.0%). In nominal terms, the three sectors are forecast to grow by 7.2%, 7.1%, and 7.2%, respectively, in 2025.
Five major cities in Indonesia generated around 24.2% of the country’s GDP and housed 7.3% of the country’s population in 2024, according to the analyst’s cities database estimates.
On August 16, 2024, President Joko Widodo proposed an IDR400.3 trillion ($25.5 billion) infrastructure budget for 2025, focusing on the new capital Nusantara and projects in the education, health, energy, connectivity, and food sectors.
Five major cities in Indonesia generated around 24.2% of the country’s GDP and housed 7.3% of the country’s population in 2024, according to the analyst’s cities database estimates.
On August 16, 2024, President Joko Widodo proposed an IDR400.3 trillion ($25.5 billion) infrastructure budget for 2025, focusing on the new capital Nusantara and projects in the education, health, energy, connectivity, and food sectors.
Scope
- Macroeconomic Country Outlook Reports evaluate a country's investment potential through its political, economic, social, technological, legal, and environmental (PESTLE) framework.
- This comprehensive analysis offers a holistic view of the economy, serving as a strategic tool to understand market dynamics, business potential, and operational direction. Each PESTLE factor is examined based on four parameters: current strengths, current challenges, future prospects, and future risks.
- These insights support strategic planning by highlighting opportunities and risks within the economy, helping businesses and investors make informed decisions.
- The report aims to provide a detailed understanding of the country's macroeconomic environment to facilitate effective decision-making and strategy development.
Reasons to Buy
- Macroeconomic Outlook Report identifies the potentials of the country as an investment destination by analyzing the political, economic, social, technological, legal and environmental (PESTLE) structure.
- PESTLE Insights provides 360 degree view of the economy which can be used as a strategic tool to understand the market dynamics, business potentials and direction of operations
- Along with providing the country’s snapshot, the report captures the risk factors pertaining to the macroeconomic risks, political environment, legal environment, demographic and social structure effectiveness, technology & infrastructure and natural and geographic aspects that might impact business.
- This report also highlights key clusters/cities which contribute significantly to the country GDP and population along with major companies’ presence in these areas.
Table of Contents
- Did You Know?
- Country Highlights
- Key Economic Updates
- Country Snapshot
- Political Landscape
- Economic Landscape
- Social Landscape
- Technological Landscape
- Legal Landscape
- Environmental Landscape
- Outlook
- Exhibit 1: Indonesia’s Performance in Terms of its Country Risk Analysis in Comparison to Asia-pacific and the World Average
- Exhibit 2: Performance Overview (Score: 0-100)
- Exhibit 3: Broad Categories and Weights behind the Index
- Exhibit 4: JCI Index, (February 2024-February 2025)
- Exhibit 5: Key Sectors Contribution to the Economy (2020-27f)
- Exhibit 6: FDI Inflows By Sector (2022-23) and FDI by Region (2023)
- Exhibit 7: Greenfield FDI Projects and Net Cross Border M&As Sales (2019-23)
- Exhibit 8: Key Infrastructure Indicators
- Exhibit 9: Real GDP and Household Consumption Growth Rate (2020-27f)
- Exhibit 10: Real GDP Growth Rate Comparison (2024e)
- Exhibit 11: Volume of Exports and Imports Growth (2020-27f)
- Exhibit 12: Current Account Balance (2020-27f)
- Exhibit 13: Top Three Commodity Exports, % of Total Exports (2019-23f)
- Exhibit 14: Mineral Fuels, Mineral Oils and Products of their Distillation Exports, % of World Total (2023)
- Exhibit 15: Interest Rates (January 2020 - January 2025)
- Exhibit 16: Exchange Rate and Inflation (2020-27f)
- Exhibit 17: Public Finance (2020-27f)
- Exhibit 18: General Government Debt (2020-27f)
- Exhibit 19: Unemployment Rate (2020-27f)
- Exhibit 20: Average Annual Wages (2020-27f)
- Exhibit 21: Labor Cost Index (2020-27f)
- Exhibit 22: Rural/Urban Share of Total Population (2015, 2020, 2025f, 2030f)
- Exhibit 23: Age-group Share of Total Population (2015, 2020, 2025f, 2030f)
- Exhibit 24: Gender Split (2015, 2020, 2025f, 2030f)
- Exhibit 25: Internet Users as a Percentage of Total Population, Mobile Penetration Rate and Broadband Penetration Rate (2024e)
- Exhibit 26: Number of Patents Granted per Million Population (2023)
- Exhibit 27: High-technology Exports, % of Manufactured Exports (2023 or latest)
- Exhibit 28: Rule of Law (Rankings), 2024
- Exhibit 29: Corruption Perceptions Index (Rankings) (2023)
- Exhibit 30: Renewable Electricity, Installed Capacity (2020-24e)
- Exhibit 31: CO2e Emissions (2019-23)
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Bank BRI
- Alumindo
- Keramik Daimond
