Economics Explained Indonesia: The Fastest Growing Major Economy In The World
Aug 8, 2023
Indonesia's rapid economic growth and potential as a major player in global manufacturing. The challenges in managing resources, such as Jakarta sinking and corruption. The impact of oil facilities on employment and the economy. Challenges of becoming an advanced economy, including low English proficiency and geographical difficulties. Examination of Indonesia's economy, GDP ranking, stability, vulnerability to shocks, and projected growth.
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Demographic Edge For Growth
- Indonesia's massive population (277M) and youth give it a long-term workforce advantage over aging Asian powers.
- These factors position Indonesia to be a major manufacturing and economic player if harnessed correctly.
A Window To Replace China
- Indonesia has lower-cost labor and prime access to busy shipping lanes, creating a window to replace parts of China's manufacturing role.
- Its rich natural resources and arable land further strengthen its potential industrial base.
Resources Need Good Management
- Rapid growth coexists with low per-capita income, so resource wealth alone won't raise living standards without strong institutions.
- Indonesia must manage resources well or risk the resource curse undermining progress.