Indonesia Economy and Business

• GDP: US$496.8 billion (2008).
• Main exports: Oil, gas, electrical appliances, textiles and rubber.
• Main imports: Machinery and equipment, chemicals, fuel and food.
• Main trade partners: Japan, Singapore, USA, China (PR) and Korea (Rep).

Following the Asian economic crisis in 1997, the economy stabilised again by 1999 and, since 2000, has resumed steady annual growth, which was at 5.9% in 2008. And in October 2006, Jakarta paid off its outstanding IMF debt, incurred during the crisis, four years ahead of schedule. Unemployment remains relatively high at 8.2% (2008).

Oil and natural gas are the most important raw materials produced by Indonesia. Tourism has become a major industry and vital source of foreign exchange, although it suffered in the wake of the Bali bomb attacks, as well as the tsunami; the government has estimated that the reconstruction of Aceh and North Sumatra will cost Rp58.3 trillion (£3,410 million). In May 2008 the government cut fuel subsidies leading to a 29% rise in the price of fuel.

Business dealings should be conducted through an agent and tend to be slow. Business cards are widely used. It is conventional to shake hands and give a slight bow with the head on meeting and taking leave. Literature should be in English, but prices should be quoted in US Dollars as well as Pounds Sterling.

Private office hours: Mon-Fri 0900-1700 or 0800-1600.

Government office hours: Mon-Fri 0800-1600.

There are hotels and centres to cater for conferences in all the major towns across the islands.

Jakarta Chamber of Commerce and Industry
Jalal Majapahit 18-20, Jakarta 10160, Indonesia
Tel: (21) 380 8091.