The Republic of Indonesia is an island state located in Southeast Asia with the capital in Jakarta. Indonesia borders with: Malaysia and Papua New Guinea. Indonesia’s largest cities are: Jakarta, Surabaya, Bandung, Semarang, Medan, Palembang, and Ujung Pandang. Banjarmasin, Bandar Lampung, Mandao. The currency in Indonesia is Indonesian Rupiah (Rp, IDR). 1 Indonesian Rupiah = 100 dreams. 10,000 IDR = approx. PLN 4.45 In administrative terms, Indonesia is divided into provinces, 2 special regions and 1 urban district.
Indonesia is a member of the UN and its affiliated organizations such as WHO, UNESCO, FAO as well as the Economic and Social Council for Asia and the Pacific (ESCAP). It also belongs to the World Trade Organization (WTO), the World Bank (IBRD), the International Monetary Fund (IMF), Asian Development Bank (ADB) and Islamic Development Bank (IDB).
Economy
Indonesia is the largest economy among Southeast Asian countries. GDP of around USD 1 trillion places it in sixteenth place in terms of the size of the economy, seventh in terms of purchasing power parity. The GDP growth in recent years has remained at a high level (around 5%). It is also the fourth largest country in the world in terms of the number of inhabitants. Indonesia is beginning to play an increasingly important role in global political debate, including as a member of the Association of Southeast Asian Nations (ASEAN) and the G20. However, this country is facing many problems. The largest of them include: poverty, unemployment, inadequate infrastructure, corruption, complex regulatory environment and uneven development within the country.
In international rankings examining the competitiveness of the economy, Indonesia ranks as follows: „Doing Business 2019” – 73 place (decrease by 1 position compared to 2018), „Corruption Perceptions Index 2018” – 89 place (rise from 96 positions in 2017 r.), „World Competitive Yearbook 2019” – 32 place (promotion from position 43 in 2018), „Global Competitiveness Report 2018” – 45 place (promotion by 2 positions in comparison to 2017)
Most popular industries
One of the most important industries in Indonesia is the car industry (the second largest car production center in Southeast Asia). In response to the stagnation of the domestic automotive industry in recent years, President Joko Widodo proposed changes to the regulations regarding electric cars. The new policy will be based primarily on the introduction of fiscal incentives. The Minister of Finance Sri Mulyani Indrawati has presented proposals for discounts on the import of electric vehicles and auxiliary materials they need, as well as VAT refunds and tax rebates associated with the import of goods from the electric car industry. In order to combat carbon emissions and for the sake of the environment, taxes on electric cars as luxury goods will be reduced. The Indonesian government plans to start producing electric vehicles by 2022 at the latest. The most important Indonesia’s trading partners include China, Japan, Singapore and the US
