Indonesia 

Indonesia country policy

Policy established 23 June 2011

• ILC, bank guarantee or central public guarantee (conditional)
• The country ceiling is 1500 mln euro
• - of which was used as at 2011-08-31 896 mln euro

Country class: 4

Dekkingsadviessituatie

Advice of cover situation

Indonesia country facts

Atradius Dutch State Business Economic Research
Country Report last updated :  28 April 2011

Country :  INDONESIA 

Political Situation
Elections

Head of state
President Susilo Bambang Yudhoyono (SBY, since October 2004, Democrat Party, re-elected for a 5-year term in 2009).
Yudhoyono is both chief of state and head of government.

Form of government
Coalition government consisting of 6 political parties (also elected in 2004 for a 5-year term), including PD and Golkar
 
Member of
UN, ASEAN, APEC, OPEC, IMF, IBRD, ADB, WTO.

Internal Economic Situation
Strong Economy

General situation
Indonesia’s relatively closed economy has proven to be very resilient to the global downturn. Domestic demand kept up markedly and after a temporarily slowdown during 2009 the economy has recovered rapidly.   Real GDP growth is forecasted at 6.1% in 2010, thus back at it pre-crisis growth path.  The red tape, rampant corruption (CPI 2.3), low administrative capacities and a weak legal system continue to limit the growth rate. Banking sector is shallow and small (40% GDP) but has improved significantly over the last decade. SOB’s account only for a third of total banking sector and NPL ratio has improved rapidly to 6%. SOB’s have high exposure to SOE’s. The rupiah has been very volatile over the last five years but has appreciated YTD. The BI frequently intervenes to prevent shocks.

External Economic Situation
Strong Bop

Main sources of foreign exchange
Oil & LNG (18% of total export), textiles (8%), minerals (17%), base metal goods (5%), electrical appliance (5%), palm oil (5%), tourism.

Main foreign markets
Japan (17%), USA (11%), Singapore (11%), EU [13%; Netherlands (5%)], South Korea (9%), China (7%), Australia (3%), Taiwan (4%), Malaysia (4%).

Main expenses of foreign exchange
Intermediate goods (78%), machines & transport equipment (14%), debt service.

Balance of payments 
Capital inflows dominated by FDI