Much has been made of Indonesia’s breakneck economic growth over the past few years.
Prior to 2020, Indonesia had been ranked among the world’s fastest-growing and most rapidly industrializing economies on Earth several times, with its domestic consumer market also becoming increasingly valued in global trade.
As of 2021, Indonesia is the world’s 15th-largest economy overall or the seventh-largest in terms of PPP. While many people in Indonesia are aware of these figures, comparatively few could explain the actual drivers of this growth. Chiefly, what is it that Indonesia actually produces, and what does it sell to other countries on the global marketplace? If you don’t know the answers to these crucial questions, read on to find out.
Palm oil is a natural resource that is absolutely critical to the Indonesian economy. A form of vegetable oil found in the fruit of oil palms, it is used in foodstuffs, beauty products, fuel, and more. Indonesia is by far the world’s largest producer and exporter of palm oil and is responsible for around half the world’s total supply, amounting to $15.3 billion in sales in 2020.
Petroleum and crude oil
Indonesia is a major exporter of both crude oil and refined petroleum products, a result of its extensive oil fields that have given Indonesia the distinction of being part of OPEC, the cartel of oil-producing nations. Despite its waning importance in global energy markets, crude oil remains one of the most valuable commodities in the world today.
As prices have skyrocketed throughout much of 2021, investors around the world have been speculating on future prices in the hopes of profiting. This is often done by using tools such as CFD stocks and commodities brokers, which allow traders in Indonesia to take a position on the future price of oil. This demonstrates how oil will continue to play a pivotal role in the global economy and, by extension, Indonesia’s
Few people realize that Indonesia is a major global center for gold mining, with the country exporting about $4 billion worth of the shiny stuff every year. Moreover, Indonesia tends to mine between 100 and 150 metric tons of gold every year, comfortably placing it within the ranks of the top 10 gold-producing countries throughout the past decade. Much like crude oil, the value of gold as a global commodity is high and is likely to remain so for the foreseeable future.
Believe it or not, Indonesia is one of the world’s foremost manufacturers and exporters of motor vehicles. About $4.5 billion worth of finished automobiles are exported from Indonesia per year, mostly going straight to neighbouring countries such as China, Singapore, Brunei, and Thailand. Many of the world’s most prestigious car companies have chosen to set up shop in Indonesia in recent years, with major domestic employers including BMW, Mercedes-Benz, Hyundai, Toyota, Suzuki, and Volkswagen.
These are the top industries that are driving Indonesia’s economic growth right now. As the country continues its pivot towards a primary consumer economy, this composition is likely to change in the years to come.