How Big is Indonesia's Economy?

About this Video

• Video Title: How Big is Indonesia's Economy?
• Channel: Behind Asia
• Speakers: Narrator
• Duration: 00:10:59

Introduction

This video explores the size and composition of Indonesia's economy, going beyond nominal GDP to examine GDP purchasing power parity (PPP), key contributing sectors (agriculture, industry, services), the burgeoning tech sector (with GoTo Group as a case study), and foreign direct investment (FDI). The video aims to provide a comprehensive understanding of Indonesia's economic strength and potential.

Key Takeaways

• Indonesia's Nominal GDP: Exceeds $1.3 trillion (2023), placing it above countries like Saudi Arabia, Switzerland, and Turkey, but below major global economies. Projected to surpass $2 trillion by 2029.
• GDP Purchasing Power Parity (PPP): Indonesia's GDP (PPP) is significantly higher than its nominal GDP, exceeding $4.3 trillion (2023), surpassing several economies that outrank it by nominal GDP. This highlights Indonesia's greater purchasing power and economic potential within its borders.
• Key Economic Sectors: Agriculture ($175 billion value added in 2023, fourth largest globally), Industry ($551 billion in 2023), and Services ($587 billion in 2023) are major contributors. The mining industry is a significant part of both the industrial sector and export earnings.
• Tech Sector's Impact: GoTo Group, Indonesia's largest tech company, contributes over 2.2% to Indonesia's GDP, demonstrating the growing influence of the tech sector despite relatively lower market capitalization compared to traditional conglomerates. Significant funding has been raised by Indonesian tech startups.
• Foreign Direct Investment (FDI): Indonesia receives substantial FDI, averaging over $20 billion annually, indicating confidence from global investors and highlighting the country's attractiveness for business opportunities, notably within the mining sector.