Indonesia having the largest economy in Southeast Asia is attributable to many aspects that come together to shape it. Since the Asian financial crisis in the late 1990s, the country has shown impressive economic growth. Today, Indonesia is the 10th largest economy in terms of purchasing power parity in the world. And this has resulted in an increase in investments in the country, including a surge in Indonesia company formation.

What makes the country’s economy function to become what it is today? Here is a brief overview of the economy of Indonesia.

Industries: Agriculture, Forestry, and Fishing

With its location on the globe, Indonesia gets a consistent monsoon and an almost even distribution of rainfall. This allows for the same type of crops to grow throughout the country. And this also lets the country grow the produce they export worldwide. Some of the crops they grow include corn, cassava, sweet potatoes, soybean, tobacco and coffee.

Fisheries is also fast becoming more important in the country’s economy. Middle-sized companies have taken to the export of cultivated shrimps from the farms in western Java and southern Sumatra. In addition to the government’s support, the industry is slowly gaining leverage in the country’s economy.

Moreover, Indonesia possesses one of the largest tracts of exploitable forestry in Kalimantan and Papua. The production of both plywood and veneers are now crucial to the country’s exportation and local consumption. Major timber activities can be found in Kalimantan and other large islands.

Resources and Power

Indonesia is home to a large variety of mineral deposits. Mining and extraction of oil and natural gas contribute to about a tenth of the country’s GDP. These resources are mainly found and produced in Sumatra, Kalimantan, and from the offshore sites in Java.

In the past decades, Indonesia has expanded greatly in its production of coal that it has become of the world’s leading exporters. Moreover, the country has also become a top producer of tin deposits. This product is mainly from the islands of Bangka, Singkep, and Belitung.

Trade

Indonesia’s primary imports include machinery, chemicals, metals, and transport equipment. On the other hand, it exports petroleum, rubber, garments, shoes, textiles, and other commodities like electronic products. Its major trading partners are Japan, Singapore, China, South Korea, the United States, Thailand, Malaysia, and Australia.

Invest in Indonesia’s Economy

Indonesia is a very favourable country for business because of its strategic location and rich resources. Do you want to take advantage of Indonesia’s opportunities? Invest in the country’s economy today by starting a booming business. We can assist you in this decision with the help of our competent and professional teams.

Contact 3E Accounting Indonesia today to know more about how to register a business in Indonesia.