Structure of the Indonesian Economy


 Structure of the Indonesian Economy

   The economy in Indonesia depends on agriculture, manufacturing and service sectors for its continued development. Agriculture is split into two distinct sections. One of them is the state owned as well as the private plantations in the region; the other includes the small farm holders. The most important products there are palm oil, rubber, cocoa, coffee, tea, and tropical spices, and the small farmers are mostly focused on the essential goods like rice, corn, fruits, and vegetables. About 35% of the citizens work in this industry.

   Mining and manufacturing have both been major contributors to a good economy in Indonesia since the 1970’s. The main products there are oil, gold, automobiles, electronics, footwear, textile, paper, and furniture. The country still remains a top exporter of thermal coal, and the mining sector increases the employment rate greatly in the country. The service sector has long been questioned as to whether or not is could be an unusual route to higher economic growth. There are signs of this over the years. The Jakarta Post reported that this was especially true within the areas of transport, finance, and communication, parts of the economy that have steadily grown about 8% over the last five years. The amount of the population that was employed by the service sector in 2013 was at 40%.

   Even with the issues over the years that concerned inequality amongst citizens of Indonesia, when it comes to the amount of the labor force that has received a primary education in Indonesia the numbers seem to be split almost down the middle as they relate to sex. Females reached their lowest point in this category back 1999 when the percentage of working women who were educated was at a plummeting low of 22%. Right now it sits at around 50%. The total of the labor force that have at least a secondary education is 22% of the population (according to Trading Economics), and those who have received tertiary schooling make up between 6% and 7% of the country’s workers.

   The Anatara News reports that in order for Indonesia to compete in the labor market, they will need more skilled workers in the years to come. With the booming industries that have kept the islands okay economically, there are surely educational opportunities (such as job training for specific trades like coal and mining) available for the citizens that reside there. Natural wealth (the use of a region’s resources as a tool for prosperity amongst its inhabiting peoples) as well as human resources will be key elements in the continued economic growth of Indonesia. These coupled with a good amount of manpower should keep the region competitive at least within the realm of the exported products they are popular for, whether they be from the agriculture sector or from manufacturing.


About Author

Leave A Reply