Why is the Indonesian economy growing? How long it will last?
.png)
Since emerging from the Asian financial crisis of the late 1990s, Indonesia's economy has experienced significant growth.
Today, Indonesia is the world’s fourth most populous nation and 10th largest economy in terms of purchasing power parity. Furthermore, Indonesia has made enormous gains in poverty reduction, cutting the poverty rate by more than half since 1999, to under 10 percent in 2019.
The Gross Domestic Product (GDP) in Indonesia was worth 1186.09 billion US dollars in 2021, according to official data from the World Bank.
Indonesia's economy advanced by 5.44% yoy in Q2 of 2022. The latest reading marked the fifth straight quarter of annual expansion, and the strongest growth since Q2 of 2021.
The Asian Development Outlook (ADO) 2022 says Indonesia's consumer spending and manufacturing activity have been consistently rising due to the pickup in incomes, jobs, and consumer confidence.
Investment is benefiting from expanding demand, improvements in the investment and business climate, and a recovery in credit.
Tourism has boomed in Indonesia in recent years and is one of the main sources of foreign currency earnings. In 2017, contribution of tourism to GDP amounted to IDR 536.8 trillion, 4.1% of Indonesia’s total GDP. In the same year, tourism provided 12.7 million jobs, representing 10.5% of total employment. Tourism receipts totalled IDR 200 billion and the sector out-performed the general growth of the Indonesian economy.
In 2018, international arrivals reached 15.8 million, an increase of 12.6% compared to the previous year. China was the country’s main international source market (16% of tourists), followed by Singapore (13.2%), Malaysia (10.6%) and Australia (9.7%). The average length of stay was 8.6 days.
In 2017, domestic tourism reached 270.8 million trips growing 2.4% over the previous year.
In 2018, these numbers increased to 303.4 million trips, growing a significant 12%.
As a result of further relaxation of COVID-19 limitations and active planning for the G20 summit later this year in Bali, the number of foreign tourists arriving in Indonesia increased dramatically by 28,767 % over the previous year to 510.2 thousand arrivals in August 2022 (350k to Bali alone).
The government of Is currently working on multiple solution that facilitate immigration and capital influx in Indonesia such as:
Increasing the number of nations from which travelers from 43 countries and the ASEAN can visit without a visa.
The government sarted considering a visa for foreign individuals, precisely for the remote workforce and the digital nomads.
This permit will allow them to stay up to five years within Indonesian borders.
The Directorate General of Immigration, Ministry of Law and Human Rights, has officially launched a second home visa policy. With this visa, foreigners can stay for 5 (five) or 10 (ten) years and carry out various activities, such as investment and other activities.
Housing Index in Indonesia increased to 220 points in the third quarter of 2022 from 219 points in the second quarter of 2022.
Indonesia has been experiencing a constant and stable growth of housing prices for a while now and is expected to keep growing as the population's average income is on the rise and unemployment is decreasing.
All the informations and data in this article have been extracted from tradingeconomics.com
.jpg)