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An Overview of Indonesia
Indonesia is the world’s largest archipelago and home to over some 17,500 islands. About 6,000 islands are inhabited with Java accounting for over half the regions population. Nearly 60% of Indonesia is forested and a large proportion of the land mass is mountainous. Indonesia has a coastline of 108,000kms and 20,000 km2 of reefs - it is little wonder that tourists flock to the region for some of the best diving in the world.
Tourism during the first quarter of 2008 increased by 15.68% year on year and Bali continues to be the king pin with the island welcoming some 197,700 tourists in February 2008 alone, an increase of almost 30%
Bali is probably the best known of Indonesia's islands and unlike the rest of the country it is predominantly Hindu. It is almost like a principality within Indonesia, with its own buoyant economy, relaxed culture and thriving mix of international residents. There has been substantial foreign investment into Bali already, and acceptance of the $USD as the currency of business between many establishments, anchors and protects the local economy from adverse fluctuations. In any case the Indonesian Rupiah has been stable for several years.
Aside from tourism being a major source of revenue, Bali also has a robust export industry - volumes of furniture, clothing, artwork and jewelry are shipped worldwide every day. In general, despite previous problems, growth on the island has been steady, and the trend upwards is set to continue.
Indonesia’s vibrant capital city is Jakarta, increasingly sophisticated with a rising middle class. By the first semester 2008, domestic car sales increased by about half to almost 300,000 and new motor cycle sales increased also by 44%. New shopping malls in Jakarta have opened to supply the demand for high end goods – the rise of the Indonesian middle class shouldn’t be underestimated, it is the largest consumer market in east Asia outside of China and it is still growing.
Indonesia was colonized by the Dutch until 1945 when independence was declared after the World War. The country is an independent republic now under the watch of President Yudhoyono who has been in power since 2004, and performed well in terms maintaining the political stability and economic growth of the country.
Indonesia is a country rich in natural resources including oil, natural gas, copper, tin, silver and gold. Agriculture and manufacturing see exports including rice, palm oil, tea, coffee, shoes, textiles, plywood, electronics and liquefied natural gas. Indonesia's exports grew to a record $100.7 billion in 2006, an increase of 17.5% from 2005.
Surprisingly to many, in 2007 Indonesia was home to the world's 3rd best performing stock market. GDP in 2007 was a very respectable 6.2%
This, of course, is all good news for prospective investors.
For further information about investing in Indonesia, please email info@clairebrownrealty.com
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