What kind of economy does indonesia have

The economy has been slowly recovering since mid thanks to policy support, gradual reopening and favourable global conditions. The second wave of the virus and the slow pace of inoculation are preventing a faster normalisation of activity. Lingering concerns about the pandemic weigh on consumer and business confidence and prevent domestic demand to return to trend levels. The additional spending is to improve patient treatment and expand food assistance, cash transfers, and wage subsidies.

In Indonesia, climate change is likely to impact water availability, health and nutrition, disaster risk management, and urban development — particularly in coastal zones, with implications to poverty and inequality. The partnership between Indonesia and the World Bank has evolved over six decades.

The CPF is supporting the government of Indonesia to promote inclusive and sustainable economic recovery from the COVID pandemic and achieve long-term economic growth.

It is built around four engagement areas:. Three cross-cutting themes: digitalization, gender, and climate change will run across the four engagement areas and are mainstreamed across all activities under the CPF. Some of the important achievements supported through this financing include the rollout of a national free vaccination program for adults, the securing of multiple sources of vaccine supplies in December , and expanding the PCR network from 49 to testing labs between March to September On August 31, , Indonesia crossed a major milestone by administering the millionth COVID vaccine dose and is further accelerating the vaccination program to reach its remote parts.

Promoting human capital is an important priority for Indonesia. This achievement involved a range of ministries and government institutions working together to bring nutrition services to millions of pregnant women and children under two across the country. The PKH provides cash benefits to encourage beneficiary families to use maternal and child-related health and nutrition services and to send their children to school.

In addition, the program also provides family development sessions and learning materials to beneficiary mothers so that they can gain better understanding of health and nutrition, good parenting practices, child protection, and financial management. A recent study shows that the cumulative impacts of PKH can reduce stunting by around 9 percentage points.

This was followed by the agriculture sector which employs 34 per cent of local workers down from 56 per cent in and the industry sector including manufacturing which accounts for 21 per cent of local workers having become more prominent in recent years.

The economy contracted in , but resumed growing in on the back of increased government and consumer spending. Subsequent years of economic growth have elevated Indonesia into the top world economies, earning it membership of the G20 group of nations.

This section provides an outline of the current state of the Indonesian economy and discusses a number of important chapters in the economic history of Indonesia:. This section offers a detailed account regarding Indonesia's current economic structure and composition based on recent macroeconomic indicators, developments and achievements. It also presents an introduction to the three main economic sectors of Indonesia agriculture, industry and services and expounds on the contribution of these three sectors to Indonesia's national economy.

Read more about Indonesia's General Economic Outline. President Suharto's New Order government was characterized by rapid economic growth and a remarkable reduction in absolute poverty. Both these achievements were reason that Indonesia became known to the West as an 'Asian Miracle' in the s and s. This section puts the spotlight on the New Order's economic development, while not losing sight of some negative aspects of Suharto's prolonged authoritarian rule.

Read more about the New Order Miracle. The Asian Financial crisis in the late s was one of the biggest watersheds in Indonesian history. Starting out as a financial crisis it quickly expanded to become a social and political one which marked the end of Suharto's rule that was legitimized by economic development.

Indonesia would become the country that was hit hardest by this crisis and it reversed much of the economic progress made under the New Order regime.