INDONESIA THE LARGEST ECONOMY IN SOUTHEAST ASIA - G20 MEMBER
With a population of over 242.3 million, Indonesia is the fourth most populous country in the world and represents a sizable consumer market. In 2012, Indonesia had a gross domestic product (GDP) of $894.9 billion, making it the 16th largest economy in the world. (International Monetary Fund)
The Indonesian government plays a significant role in Indonesia's market economy in which it owns over 160 enterprises and sets prices for several goods such as electricity, rice and fuel. Indonesia has the largest economy in Southeast Asia and is a member of both the G20 and APEC (Asia-Pacific Economic Cooperation).
According to the IMF, Indonesia is the third fastest growing economy in the G20 after India and China. The country's main economic industries include petroleum and natural gas, apparel, textiles, apparel, mining, tourism and rubber. Indonesia has endured the recent global financial crisis through its reliance on domestic consumption to drive continual economic growth.
In addition, investment from both foreign and domestic sources has supported the Indonesian economy. Due to its recent economic growth and sound fiscal policies, Indonesia's debt to GDP ratio has steadily declined.
Trade was been expanding swiftly between the United States and Indonesia in the last several years. Since 2005, U.S. exports to Indonesia have more than doubled from $3.1 million to $8 million in 2012. The main export categories are transportation equipment, agricultural products, chemicals, and machinery.
Indonesia is actively involved with Asia-Pacific Economic Cooperation (APEC). APEC was formed in 1989. It serves as a multilateral forum in which Asian and Pacific economies can solve economic problems and cooperate in developing key economic sectors.
Collectively, the 21 economies of APEC, which touch the Pacific Ocean, represent a large consumer market— nearly half the world's population, nearly half of all world trade and more than $31 trillion in economic output.
The APEC economies are: Australia, Brunei Darussalam, Canada, Chile, People's Republic of China, Hong Kong, Indonesia, Japan, Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Republic of the Philippines, Russia, Singapore, Chinese Taipei, Thailand, United States and Vietnam.
Association of SouthEast Asian Nations (ASEAN)
On October 7, 2003, 10 Southeast Asian nations signed an agreement to become an economic union by 2020. The agreement sets deadlines for lowering travel restrictions and tariffs in the region of 500 million people. Trade in this ASEAN Economic Community totals more than $720 billion a year. ASEAN includes Thailand, the Philippines, Indonesia, Cambodia, Malaysia, Singapore, Laos, Vietnam, Brunei and Myanmar.
Indonesia will host the 25th Annual APEC meetings in 2013