Business & Economy of Indonesia - Economy of Indonesia is mainly based on agriculture and oil. Approximately 90% of the population is engaged in agriculture. In the agricultural sector, Indonesia has become self sufficient in rice and does not need to import this staple food as it had for years.
Earlier, oil and gas used to be a major foreign exchange earner but
rising domestic consumption and stagnant oil production has now made
Indonesia, a net importer of oil.
Tourism is steadily gaining ground and is emerging as major foreign
exchange earner for the country. Indonesia is rich in natural resources.
forestry products, rubber, coffee, tea, tin, nickel, copper, palm
products & fish make important contributions to export earnings. In
recent years a number of steps have been taken to promote and stimulate
non-oil exports, which include handicrafts, textiles, precious metals,
tea, tobacco, cement, fertilizers as well as manufactured goods.
Indonesia maintains a liberal foreign exchange system and has few
restrictions on transfers abroad, and in general freely allows
conversions to and from foreign currencies. The Rupiah-Indonesian
Currency-is linked to a basket of currencies of Indonesia's major
trading partners. The unitary exchange rate allows for fluctuation.
With the objective of a more equitable distribution of development
gains, the government gives high priority to expansion in the less
developed regions of the country and the creation of employment
opportunities for the country's growing labour force. To attract foreign
capital, certain incentives are provided and several sectors are open to